ing vysya project
TRANSCRIPT
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A STUDY ON
SALES PROCESS
With reference to
INGVYSYA LIFE INSURANCEHYDERABAD
Project report submitted to Andhra University, Visakhapatnam in partial
Fulfillment for the Award of the Degree in
MASTER OF BUSINESS ADMINISTRATION
Submitted by
!V!VN!SURESH UMAR
"Re#d!N$! %&'()*&&&('+
U,de- t.e e/teemed #uid0,1e $2
!BALA RISHNA3 MBA!
Faculty Member In M.B.A Department
DEPARTMENT OF MANAGEMENT STUDIES
ADITYA INSTITUTE OF P!G! STUDIES(Affiliated to Andhra University)
SURAMPALEM3 E!G!Dt!
%&&'4%&*&
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ADITYA INSTITUTE OF P!G! STUDIES
DEPARTMENT OF BUSINESS MANAGEMENT"APPROVED BY AICTE3 AFFFILIATED TO AU 5 GOVT!OF
A!P!+
SURAMPALEM4(66)67 E!G!Dt "A!P+
CERTIFICATE
This is to certify that project report entitled A STUDY OF SALESS
PROCESS with reference to ING VYSYA LIFE INSURANCE!
HYDERABAD is a bona fide work done by K.V.V.N.SURESH KU!R
with Re"d. No!%&'()*&&&(' #nder $y "#idance and s#per%ision d#rin" ay
to ne '((). This project is s#b$itted to ANDHRA UNIVERSITY in
partial f#lfill$ent of the award of de"ree of MASTER OF BUSINESS
ADMINISTRATION.
PRO8ECT GUIDE9 HEAD OF THE DEPARTMENT
r. K.*!+! KR,SHN!- M!B!A SR,. &. N!EN/R! KU!R- M!B!A
E0ternal E0a$iner
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CERTIFICATE
This is to certify that project report entitled A STUDY OF
SALESS PROCESS with reference to ING VYSYA LIFE INSURANCE!
HYDERABAD is a bona fide work done by K.V.V.N.SURESH KU!R
with Re"d. No!%&'()*&&&(' #nder $y "#idance and s#per%ision d#rin" ay
to ne '((). This project is s#b$itted to ANDHRA UNIVERSITY in
partial f#lfill$ent of the award of de"ree of MASTER OF BUSINESS
ADMINISTRATION.
P:01e1 SUR!2!+E
D0te9
. 3r. K.*!+! KR,SHN!4-
2roject #ide-
!ditya ,nstit#te of 2. St#dies.
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DECLARATION
, here by declare that this project report entitled A STUDY OF
SALES PROCES with reference to ING VYSYA LIFE INSURANCE3
HYDERABAD has been prepared by $e d#rin" the year '(() in the $onth
of ay and ne is partial f#lfill$ent of the re5#ire$ent for the award of
/e"ree of MASTER OF BUSINESS ADMINISTRATION $2 ANDHRA
UNIVERSITY!
, also declare that this project is a res#lt of $y own effort and that it has
not been s#b$itted to any other #ni%ersity for the award of any /e"ree or
/iplo$a.
P:01e1 SUR!2!+E
D0te9
!V!V!N!SURESH UMAR
Re#d!NO!"%&'()*&&&('+
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ACNO;LEDGEMENT
, wish to thank 8!N0#e,d-0 um0- H6/- !/,T7! ,NST,TUTE 68
2..STU/,ES for his %al#able s#pport in doin" this project.
, feel happy to thank- Head of the /epart$ent- and /epart$ent of
ana"e$ent St#dies for pro%idin" $e her %al#able "#idance and e0pertise in
s#ccessf#l co$pletion of this project.
, thank $y project "#ide- !BALA RISHNA 8ac#lty $e$ber in
ana"e$ent St#dies for pro%idin" $e his %al#able "#idance and e0pertise in
s#ccessf#l co$pletion of this project.
, thank $y project internal "#ide M-! !RA8A 3Sales ana"er4 who
shows infinite patience and perse%erance in teachin"- s#""estin" re$edies forthe proble$s enco#ntered in $y project and in answerin" all $y 5#estions.
, also e0tend $y heartfelt thanks to $y friends for their cooperation
d#rin" $y entire project period.
!V!V!N!SURESH UMAR
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CONTENTS
C.0e1ti?e/ $2 t.e /tudy
Need 2$- t.e /tudy
Met.$d$:$#y
Limit0ti$,/ $2 t.e /tudy
C.0
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CHAPTER4*!"#$DU%"$!, !&&D "$# "'&
("UD), *&"'$D$+$),
+*"A"$!( $F "'& ("UD)
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INTRODUCTION
The c#rrent $eanin" of $arketin" we ha%e to #nderstand different points of %iews. 6penly
there are two di$ensions fro$ which we can disc#ss the $eanin" of $arketin".
2rod#ct oriented %iew H#$an wants are #nli$ited and respecti%e in nat#re. *#siness
acti%ities ai$ at ac5#irin" of wealth and con%ertin" it into desire for$s $akin" the final
prod#ct a%ailable for e0chan"e for the satisfaction of h#$an wants. The acti%ities fall
#nder ind#stry- co$$erce and trade these three batches ha%e one co$$on f#nction the
e0chan"e. This i$portant and powerf#l f#nction is ter$ed as $arketin". arketin"
occ#pies an i$portant position in the or"ani9ation of b#siness #nit. Traditional %iew of$arketin" that the c#sto$er will accept what e%er prod#ct the seller presents. ,n this way
the $ain concern of the prod#cer is to prod#ce with o#t considerin" the choice of the
beha%ior of the c#sto$er. *#t this point of %iew of $arketin" has chan"e. The $odern
concept $ay be centered on the c#sto$er. The $an#fact#rer cannot be prod#cin" whate%er
he likes b#t whate%er c#sto$er wants.
arketin" $ay be e0plained as a b#siness f#nction entr#sted with the creation and
satisfaction of c#sto$er to achie%e the ai$s of b#siness. Th#s the process of $arketin"
incl#des.
:. 2rofit $akin" by sales.
'. The presence of c#sto$er.
;. Satisfaction of c#sto$er by $eetin" his need.
held that cons#$ption is the so#l p#rchase of
all prod#cts and interest of the prod#cer o#"ht to be attendin" to only so far as it $ay be
necessary for pro$otin" that of the c#sto$er. Under the $ercantile syste$- the interest of
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the c#sto$er was %irt#ally sacrificed to that of the prod#cer. They coincided prod#ction
and net cons#$ption as the #lti$ate end and deject of the ind#stry and co$$erce. ,t was
as ta" when the role of $arketin" was i"nored. With down of ind#strial re%ol#tion $ajor
chan"es took place.
There was a shift for$ a"ric#lt#ral to ,nd#stry. The linin" standards of the people
rose with the de%elop$ent of transport and co$$#nications. Howe%er no ser%ice efforts
were $ade to satisfy the wants of the c#sto$ers. The abo%e definitions of the $arketin"
are prod#ct oriented beca#se they lay $ore e$phasis the prod#ct rather than one c#sto$er.
!ccordin" to the$ the $arketin" process co$es to an as soon as the prod#ct reaches the
hands of c#sto$ers. ,n fact the $arketin" is wider than that.
arketin" is related to the needs of the b#yer. 6nly s#ch prod#cts which can satisfy
the wants and tastes of the c#sto$er. To please the c#sto$er at the sales ser%ice are
needed. He we 5#ote so$e of the well knows c#sto$ers oriented definitions of $arketin".
=arketin" is the b#siness process by which prod#ct are $atched with $arkets and
thro#"h which of ownership is effected>
?UN/,88 !N/ ST,++
These definitions s#""est that $arketin" is conca%ed with the $o%e$ent of "oods and
ser%ices fro$ the plant to the c#sto$er. arketin" acti%ities are directly connected with
the de$and sti$#latin" and de$and f#lfillin" of the enterprise. !ll these acti%ities are
interested and inter.
We can distin"#ish between a social and a $ana"erial definition of $arketin". !
social definition shows the role $arketin" plays in society. 6ne $arketer said that
$arketin"@s role is to =deli%er a hi"her standard of li%in".> Here is a social definition that
ser%es o#r p#rpose1 arketin" is a social process by which indi%id#als and "ro#ps obtain
what they need and want thro#"h creatin"- offerin" and freely e0chan"in" prod#cts and
ser%ices of %al#e with others. 8or a $ana"erial definition- $arketin" has often been
described as =t.e 0-t $2 /e::i,# b#t people are s#rprised when they hear that
the $ost i$portant part of $arketin" is not sellin". Sellin" is only tip of the $arketin"
iceber".
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OB8ECTIVES OF THE STUDY
The objecti%es of the st#dy are
:. To st#dy the sales process in ,ns#rance ,nd#stry with reference to ,N V7S7! life
ins#rance.
'. To st#dy the sales process position in Sec#nderabad.
;. To st#dy abo#t how the sales process is "oin" in ,ns#rance ,nd#stry.
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NEED FOR THE STUDY
Now a day ,ns#rance plays a %ery i$portant role in the H#$an +ife. The
ter$inolo"y of the ins#rance is chan"in" accordin" to the chan"e in the world. 2eople in
,ndia are $ostly payin" policies in ins#rance sector. They are s#fferin" to choose the
correct one. There is n#$ber of policies which are of different co$panies. So they are
#nable to choose the best one. So the ,N V7S7! +ife ,ns#rance took se%eral $eas#res
to i$pro%e the $arketin" syste$ for distrib#tin" policies accordin" h#$an race.
This st#dy is to know the sales process and to know the whether the policy holders
are $e$bers in ,N V7S7! +ife ,ns#rance ?o$pany- are satisfied with the ser%ice of the
co$pany.
:. ,ncrease awareness in the $ind of the people.
'. To #nderstand and to know the opinion of the people towards ins#rance co$panies.
;. Helps in identifyin" the co$petitors
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METHODOLOGY
!s the st#dy was based on pri$ary data- 5#estionnaire was fra$edD s#r%ey is confined to
the c#sto$ers and in Sec#ndrabad only.
Sa$plin" proced#re1
Ha%in" fra$ed the 5#estionnaire- the c#sto$ers of Sec#ndrabad ?ontacted
personally. The re5#ired infor$ation present in the 5#estionnaire. The infor$ation is
tab#lated for the analysis.
The st#dy is done by pri$ary and secondary data.
/!T! ?6++E?T,6N
/ata collection is the i$portant aspect of any research. The collection of data "i%es
the researcher the scope to analy9e the sit#ation. The data of the st#dy is collected fro$
%ario#s so#rces. 8or the p#rpose of achie%in" the data effecti%ely the infor$ation consists
of two kinds of data.
:. 2ri$ary data
'. Secondary data
The pri$ary data are those- which are collected freshly and for the first ti$e- fro$
the c#sto$er directly. This is %ery i$portant beca#se this is basis on which analysis and
s#""estions can be drafted.
The secondary data are those which ha%e already been collected by so$e one or else which
ha%e been passed thro#"h statistical process.
This "i%es a base for the researcher to Know the past infor$ation and the kind the chan"e
that has occ#rred fro$ that ti$e till now.
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LIMITATIONS OF THE STUDY
!s it is not a :(( co$prehensi%e st#dy- it s#ffers fro$ few li$itations which are
as follows.
!s the ti$e a%ailable in cond#ctin" the s#r%ey and the analysis is li$ited i.e.- only
a period of ei"ht weeks- it restricts in st#dyin" the aspects of 5#estionnaire in a
detailed $anner.
!s the s#r%ey is $ade only a$on" ::( o#tlets it is diffic#lt to "et co$plete and
acc#rate infor$ation of the prod#ct attrib#tes and the awareness created by the
prod#ct.
The st#dy is s#bjected to li$ited re"ion in Sec#ndrabad.
+ack of awareness of s#r%ey in the $ind of the c#sto$er.
! sincere atte$pt was $ade to collect and draw concl#sions in the best possible
way and $ini$i9e the errors.
/#e to %ast area of $arket- it beco$es %ery diffic#lt to $eet each and e%ery
c#sto$er.
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THE SCENARIO OF INSURANCE INDUSTRY
WH!T ,S ,NSUR!N?EF
The basics of ins#rance are related to the protection of the econo$ics %al#es of
assets. E%ery asset has a %al#e. The asset wo#ld ha%e been created thro#"h the effect of the
owner. The asset is %al#able to the owner- beca#se he e0pect to "et so$e benefits- fro$ it.
The benefit beca#se it $eets so$e of it needs. ,n the case of a factory or a cow- the prod#ct
"enerated by is sold and inco$e "enerated. ,n the case of a $otor car- it profiles co$fort
and con%inces in transportation. There is no direct inco$e.
E%ery asset is e0pected to last for a certain period of ti$e d#rin" which it will
perfor$. !fter that- the benefit $ay not be a%ailable. There is lifeGti$e for a $achine in a
factory or a cow or a $otor car. None of the$ will last for e%er. The owner is aware of this
and he can so $ana"e his affairs that by the end of that period or lifeGti$e- a s#bstit#te is
$ade a%ailable. Th#s- he $akes s#re that the %al#e or inco$es are not lost. Howe%er- the
asset $ay "et lost earlier. !n accident or so$e other #nfort#nate e%ent $ay destroy it or
$ake it nonGf#nctional- wo#ld be depri%ed of the benefit and the planned s#bstit#te wo#ld
not ha%e been ready. There is an ad%erse or #npleasant sit#ation. ,ns#rance is a $echanis$
that helps to red#ce the effect of s#ch ad%erse sit#ation.
THE H,ST6R7 68 ,NSUR!N?E
The b#siness of ins#rance started with $arine b#siness traders- who #sed to
"ather in the +loyd@s coffee ho#se in +ondon a"reed to share the losses to their "oods
while bein" carried by ships. The losses #sed to occ#r beca#se of pirates who robbed on
the hi"h seas or beca#se the ship. The first ins#rance policy was iss#ed in :A; in En"land.
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,n ,ndia- ins#rance be"an in :C( with life ins#rance bein" transacted by an En"lish
co$pany- the E#ropean and the !lbert. The first ,ndian ins#rance co$pany was the
*o$bay $#t#al ass#rance society ltd- for$ed in :C(. This was followed by the oriental
life ass#rance co. in :C
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,ns#rance does not protect the asset. ,t does not pre%ent its loss d#e to the peril
cannot be a%oided thro#"h ins#rance. The peril can so$e ti$es be a%oided- thro#"h better
safety and da$a"e control $ana"e$ent. ,ns#rance only tries to red#ce the i$pact of the
risk on the owner of the asset and those who depend on the asset. ,t only co$pensates the
losses and that too- the f#lly.
6nly econo$ic conse5#ences can be ins#red. ,f the loss is not financial-
ins#rance $ay not be possible- e0a$ple of nonGecono$ic losses are lo%ed and affection of
parents- leadership of $ana"ers- senti$ental attach$ents to fa$ily heir loo$s. ,nno%ati%e
and creati%e abilities etc.
H6W ,NSUR!N?E W6RKS
The $echanis$ of ins#rance is %ery si$ple. 2eople who are e0posed to the sa$e
risks co$e to"ether and a"ree that- if any one of the$ s#ffers a loss- the others will share
the loss and $ake "ood to the person who lost. !ll people who send "oods by ship are
e0posed to the sa$e risks. Which are related to water da$a"es- ship sinkin"- piracy-
etc.those ownin" factories are not e0posed to these risks- b#t they are e0pected to different
kinds of risks like- fire- hailstor$s- earth5#akes- li"htin"- b#r"lary- etc.like fire different
kinds or risks can be identified and separate "ro#ps $ade- incl#din" those e0posed to s#ch
risks- by this $ethod- the hea%y loss that any one of the$ $ay s#ffer is di%ided into
bearable- s$all losses by all. ,n other words- the risk is spread a$on" the co$$#nity and
the likely bi" i$pact on one is red#ced to s$aller $ana"eable i$pacts on all.
E0a$pleG:
,n a %illa"e there are
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THE HU!N !SSET
! h#$an bein" is an inco$e "eneratin" asset. 6ne@s $an#al labo#r- professional skills
and b#siness ac#$en is the asset. This asset also can be lost thro#"h #ne0pectedly early
death ca#sed by accidents. !ccidents $ay or $ay not happen death b#t the ti$in" is
#ncertain. *#t if it happens $#ch earlier when the alternate arran"e$ents not in place-
there can be losses to the person and dependents. ,ns#rance is necessary to help those
dependent on the inco$e.
The person- who $ay ha%e $ade arran"e$ents for his needs after his
retire$ent- also wo#ld need ins#rance. This is beca#se the arran"e$ents wo#ld ha%e been
$ade on the basis of so$e e0pectations.
,NSUR!N?E 68 ,NT!N,*+ES
The concept of ins#rance has been e0tended beyond the co%era"e of tan"ible assets.
E0porters r#n at the risk of losses if the i$porters in the other co#ntry defa#lt in pay$ents
or in collectin" the "oods. They will also s#ffer hea%ily d#e to s#dden chan"es in c#rrency
e0chan"e rates- econo$ics policies or political dist#rbances in the other co#ntry. These
risks are ins#redD doctors r#n the risk of bein" char"ed with ne"li"ence and s#bse5#ent
liability for da$a"es. The a$o#nt in 5#estion can be fairly lar"e- beyond the capacity of
indi%id#als to bear. These are ins#red. Th#s ins#rance is e0tended to intan"ibles.
THE *US,NESS 68 ,NSUR!N?E
,ns#rance co$panies are called ins#res. The b#siness of ins#rance is to brin"
to"ether persons with co$$on ins#rance interests- collect share fro$ all of the$ and pay
o#t co$pensation to those who s#ffer. The pre$i#$ is deter$ined on the sa$e lines as
indicated in e0a$ples abo%e- b#t with so$e f#rther refine$ents.
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,NSUR!N?E !S ! S6?,!+ SE?UR,T7 T66+
The United National /eclaration of h#$an ri"hts :)< pro%ides that e%ery one
has a ri"ht to a standard of li%in" ade5#ate for the health and well bein" of hi$ self and his
fa$ily incl#de food clothin" ho#sin" and $edical care and necessary social ser%ices and
the ri"ht to sec#rity in the e%ent of #ne$ploy$ent.
R6+E 68 ,NSUR!N?E ,N E?6N6,? /EVE+62ENT
8or econo$ic de%elop$ent- in%est$ents are necessary. ,n%est$ents are $ade at
sa%in"s. ! life ins#rance co$pany is a $ajor instr#$ent for the $obili9ation of sa%in" of
people- partic#larly fro$ the $iddle and lower inco$e "ro#ps. These sa%in"s are
channeled into in%est$ents for econo$ic "rowth.
!s on ;:.;.'(('- the total in%est$ents of the +,? e0ceeded Rs.'
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$ake a f#ll disclos#re to the #nderwriter witho#t bein" asked- of all $aterial
circ#$stances. This is e0pressed by sayin" that it is a contract of #t$ost "ood faith>.
The law i$poses a "reater d#ty on the parties to an ins#rance contract than in
the case of other co$$ercial contracts- to disclose rele%ant infor$ation. This d#ty is one of
#t$ost "ood faith or Uberri$ae 8ides. ,t is the d#ty of the proposer to $ake a f#ll
disclos#re to the #nderwriter. The i$plication is that- in how e%ent of fail#re to disclose
$aterial facts- the contract can be held to be %oid abGinitio.
E%ery circ#$stance that wo#ld ha%e a bearin" on the j#d"$ent of a pr#dent
ins#rer in fi0in" the pre$i#$ or deter$inin" the acceptability of the proposal for ins#rance
is a $aterial fact. Therefore- facts re"ardin" a"e- hei"ht- b#ild- nat#re of occ#pation-
s$okin"drinkin" habits- $edical history- s#r"eries- earlier ins#rances- etc.- $#st be
disclosed. The proposer cannot defend nonGdisclos#re by contendin" that he did not think
that the fact was not $aterialL
There are certain circ#$stances- which need not be disclosed.
They are
:. 8acts of co$$on knowled"e- which e%ery one is s#pposed to know.
'. 8acts of law
;. 8acts which a s#r%ey wo#ld ha%e re%ealed.
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:. S#bstantially false and known to the proposer as false not known to the
second party
'. ?oncerned with facts which are $aterial to the acceptance or assess$ent of
the risk or $aterial to the benefits obtained by the proposer.
;. ?alc#lated to ind#ce the other party to enter into a contract on its own
ter$s.
,n a proposal for life ins#rance- the proposer $akes a declaration to the effect that all the
state$ent in the proposal for$ are tr#e in e%ery respect and if any #ntr#e state$ent be
contained therein- the ins#rer wo#ld be entitled to treat as n#ll and %oid and forfeit all the
$oneys paid therefore.
,NSUR!*+E ,NTEREST1
!ll risks are not ins#rable. 6therwise- an ins#rance contract wo#ld be no different
fro$ a wa"erin" contract. Wa"erin" contract is ille"al in ter$s of sec.;( of the ,ndian
contract act and therefore in%alid. What distin"#ishes an ins#rance contract fro$ a
wa"erin" contract is that the ins#red $#st ha%e an ins#rable interest in the s#bject of
ins#rance. ,n si$ple ter$s- it $eans that the proposer $#st ha%e a stake in the contin#ance
of the s#bject ins#red and co#ld s#ffer loss- if the risk is not co%ered thro#"h ins#rance.
The ins#red $#st be in a relationship with the s#bject of ins#rance.
8E!TURES 68 ,NSUR!*+E ,NTEREST
,n the case of life ins#rance policy- ins#rable interest $#st e0ist at the inception of the
policy. There is no- re5#ire$ent for ins#rable interest at the ti$e of a clai$ #nder the
policy. ,n the case of $arine policy- ins#rable interest $#st e0ist at the ti$e of the clai$.
,n other ins#rance- ins#rable interest $#st e0ist at the ti$e of inception as well as at the
ti$e of clai$.
2R,N?,2+E 68 ,N/EN,T7
,ns#rance is $eant to co$pensate losses. *y i$plication- the $echanis$ of
ins#rance cannot be #sed to $ake a profit. This is broadly the principle of inde$nity.
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,ns#rance sho#ld place the ins#red in the sa$e financial position after a loss as he enjoyed
before it not better.
/,88ERENT R,SKS
The +ife ,ns#rance b#siness deals with risks relatin" to life of h#$an bein"s. ,t can
$iti"ate the conse5#ences in those circ#$stances.
!s a r#le- risks are $ana"ed in ; ways
:. 2re%ention
'. Retention
;. Transfer
/eath and old a"e are not pre%entable at all.
NEE/S !N/ ,NSUR!N?E
Risks arise beca#se there are needs to be f#lfilled. The risks attached to early death arise
beca#se of the need to $aintain the fa$ily that is left behind. /ifferent plans are desi"ned
with different benefits. While sellin" life ins#rance- therefore it is necessary to be aware of
the needs of people.
*roadly the needs of indi%id#als $ay be classified as follows.
:. 2rotection of the standards of li%in" of the fa$ily- which is at risk on early death.
'. 8#t#re e0penses on acco#nt of children@s ed#cation- $arria"e- start of so$e
b#siness and so on- which are a$bitions and drea$s.
;. ?ontin#ance of b#siness when financiers ask for life ins#rance policies as collateral
sec#rity.
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!ll the abo%e needs ha%e to be $et- after $eetin" the costs of inflation. 2eople
wo#ld not be conscio#sly aware of these as for$idable proble$s in the f#t#re. E%en if they
do- they $ay not be willin" to sacrifice so$e of the pleas#res of the present in order to
pro%ide for the f#t#re. This is the diffic#lty- which life ins#rance a"ents face.
;HAT IS PREMIUM
2re$i#$ is the consideration the holder has to pay in order to sec#re the benefits
offered by the ins#rance policy. ,t can be looked #pon the price of the ins#rance policy. ,t
$ay be a oneGti$e pay$ent. That is not co$$on. 6ften it has been paid re"#larly o%er a
period of ti$e.
R,SKS- NET !N/ 2URE 2RE,U
The fi"#re of rs '(( $entioned wo#ld be the cost of co%erin" the risk of death of
persons at the a"e of A( for one year. This cost is for ins#rance of Rs '(-((( which can be
e0pressed also as Rs :( per tho#sand.
+6!/,NS
The ad$inistrati%e e0penses of the ins#rer ha%e to be $et o#t of the pre$i#$ paid by
the policy holders. To this e0tent the pre$i#$ to collect will be hi"her. S#ch additions to
the p#re pre$i#$ are called loadin"s
+EVE+ 2RE,US
,f it is e0pected that o#t of :(((( persons at a specified a"e- one is likely to die with in
one year- the $ortality rate at that a"e is said to be (.(:. The risk pre$i#$ char"eable
for persons at that a"e wo#ld be (.(: per Rs :((( s#$ ass#red- if a policy has a ter$ of '(
years- the risk pre$i#$ and therefore the pre$i#$ wo#ld %ary for each of the '( years.
688,?E 2RE,U
The pre$i#$ fi"#re arri%ed at after loadin" the net pre$i#$ is called the office
pre$i#$. They are now ready for #se. The pre$i#$ fi"#res printed in the pro$otional
literat#re and broch#res are the office pre$i#$.
EMTR! 2RE,U
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E0tra pre$i#$ $ay be char"ed are any partic#lar policy. This $ay happen beca#se of
the "rand of so$e benefit in addition to the basic benefit #nder the plan- like accident
benefit- riders pro%ide additional benefits. E0tra pre$i#$ $ay beco$e char"eable beca#se
of #nder writin" decisions. These are #s#ally stated as say- Rs :( per :(((- and will be
added to the pre$i#$ otherwise char"eable.
?!+?U+!T,6N 68 !E1
!"e has to be deter$ined has on the date of co$$ence$ents of the policy. ,f a person is
born '(th!#"#st :)CB- the a"e ne0t birthday on :(thly '((' wo#ld be 'B.
2RE,U ?!+?U+!T,6NS
StepG:1 find o#t tab#lar pre$i#$ for the rele%ant plan and ter$. This pre$i#$ is :(((
s#$ ass#red. !ss#$e that the fi"#re is Rs
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!?TU!R,!+ V!+U!T,6N
2re$i#$ is calc#lated takin" into acco#nt likely f#t#re e0periences in respect of
$ortality- interest and e0penses. These are ass#$ptions. The f#t#re e0perience $ay or $ay
not confor$ to these e0pectations. The ins#rance act in ,ndia re5#ires that act#arial
%al#ations be done e%ery year.
*6NUS1
The distrib#tion of the %al#ation s#rpl#s to policy holders is done thro#"h the
declaration of bon#s. 6nly policy holders who opt for participatin" or with profit policies
wo#ld be entitled to bon#s. 6ther policy holders who ha%e none participatin" or witho#t
profit policies wo#ld be payin" a sli"htly lesser a$o#nt of pre$i#$ for the sa$e kind of
ins#rance co%er.
,f a co$po#nd re%ersionary syste$- the bon#s will be added to e0istin" S.!.incl#din"
bon#ses attached earlier.
! %ariety of practices are followed with re"ard to bon#s. So$e $ake the %estin" of
bon#s conditional on the policy contin#in" to be in force thro#"ho#t.
i%en below details of the bon#s declared by the +,? after the %al#ation on ;:G;G'(('.
TERM ENDO;MENT MONEYBAC
ANTICIPATED
+ess than :: years Rs .
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*on#s is #s#ally declared policies- which are in force on the date of %al#ation. The
bon#s after the %al#ation as on ;:G;G'((; will be declared so$eti$e in Septe$ber '((;
and will benefit holders of policies which are in force on ;:G;G'((;. ,n order to o%erco$e
s#ch ano$alies- act#aries #s#ally declare ,nteri$ bon#s payable on s#ch policies- which
beco$e clai$s between two %al#ations.
LIFE INSURANCE PRODUCTS
*!S,? E+EENTS1
+ife ins#rance prod#cts are #s#ally referred to as Jplans of ins#rance@. These
plans are ha%e two basic ele$ents. 6ne is the J/eath co%er@ pro%idin" for the benefit bein"
paid on the death of the ins#red person within a specified period. The other is the JS#r%i%al
*enefit@ pro%idin" for the benefit bein" paid on s#r%i%al of a specified period.
2lans are ins#rance that pro%ides only death co%er are called JTer$ !ss#rance@ plans.
These that pro%ide only s#r%i%al benefits are called J2#re Endow$ent@ plans. ,f the ins#red
does not die with in the specified period- no pay$ent is $ade #nder a ter$ ass#rance plan.
Si$ilarly- if the ins#red dies with in the specified period- no pay$ent is $ade #nder a p#re
endow$ent plan. *oth these are like fire ins#rance policies. ,f the specified contin"ency
does not happen- the policy holder does not "et anythin" fro$ the ins#rer.
!ll ins#rance plans are co$binations of these two basic plans. ! ter$ ass#rance plan
with an #nspecified period is called a JWhole life policy@ #nder which the s#$ ass#red is
paid on death whene%er it $ay occ#r. ! ter$ ass#rance plan alon" with a p#re endow$ent
plan when offered as a sin"le prod#ct is called an endow$ent ass#rance plan- #nder which
the S.!. is paid on s#r%i%al of the specified period or on earlier death. ! ter$ ass#rance
plan with a p#re endow$ent plan of do#ble the %al#e is called a do#ble endow$ent
ass#rance plan #nder which the a$o#nt payable in s#r%i%al is do#ble the a$o#nt payable
in death.
! plan of ass#rance will ha%e the followin" feat#res. *y $akin" chan"es in these
feat#res or addin" and co$binin" so$e of the$.
:. Who can be ins#redF
The %ario#s possibilities are indi%id#al ad#lts- children- two or $ore persons
jointly #nder one policy.
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'. What can be the S.!F
So$e plans stip#late a $ini$#$ S.!. there are $a0i$#$ li$its also for
certain benefits- like accidents benefits.
;. ,n what contin"ency wo#ld the S.! be payableF
?o#ld be on death or on s#r%i%al.
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Reference has been $ade in an earlier para"raph to the whole life and the
endow$ent plans. ,n a whole life plan- the S! beco$es payable only on death whene%er it
$ay occ#r. *#t #nlike a ter$ ass#rance plan- so$e pay$ent will be $ade at so$e ti$e.
!ltho#"h- in the case of whole life policies- the S! is payable only on death so$e ins#rers
pay the S!- when the life ass#red co$pletes say- :(( years. ,n the endow$ent plan- the S!
is payable on s#r%i%al to the end of the ter$ or on earlier death.
?6NVERT,*+E 2+!NS1
?on%ertible plans of ass#rance are plans- which pro%ide- in its ter$s and conditions-
that it can be chan"ed to another plan after- or within- a certain period after
co$$ence$ent. 8or e0a$ple- a con%ertible ter$ ass#rance plan can be con%erted in to a
whole life policy or an endow$ent policy- within a period specified in the ori"inal plan.
This period $ay be not later than two years before the e0piry of the ori"inal ter$. ,n other
words- if the ori"inal ter$ ins#rance co%er is for B years- the option to con%ert sho#ld be
e0ercise before the end of the fo#rth year. ,n so$e plans- the option can be e0ercised at any
ti$e- b#t before a"e B(- a con%ertible a whole life plan can be con%ertible into an
endow$ent plan
W,TH 2R68,T !N/ W,TH6UT 2R68,T 26+,?,ES1
With o#t profit polices are not entitled to bon#ses declared after %al#ation. With profit
policies pay a sli"htly hi"her pre$i#$ for the ri"ht to participate in the pro"ress of the
ins#rer. With profit polices are pop#lar beca#se the bon#ses are e0pected to be $ore than
e0tra pre$i#$ paid.
&6,NT +,8E 26+,?,ES1
,N THE ?!SE &6,NT +,8E ,NSUR!N?E1
! joint life declaration is necessary to create a joint interest in the policy.
,n case of partner ship ins#rance the partner ship deal will be e0a$ine the nat#re of interest
of each partner.
Each life will be #nder written separately.
*on#ses accr#e on the sin"le basic S! only.
?H,+/ERN@S 2+!NS1
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,ns#rance can be taken on the li%es of children- who are not $ajor@s. The propose
will ha%e to be $ade by a parents.
,n these plans- risk on the life on the ins#red child will be"in only when that
child attains a specified a"e. 2ractices %ary widely the ti$e "ap between date of
co$$ence$ent of the policy and the co$$ence$ent of risks called the defer$ent period.
There is no ins#rance co%er d#rin" the defer$ent period. ,f a child dies d#rin" the
defer$ent period- the pre$i#$s will be ret#rn.
V!R,!*+E ,NSUR!N?E 2+!NS1
The #nit tr#st of ,ndia has #nit linked ins#rance plan. This plan is desi"ned for any
resident in ,ndia between the a"e@s of :' and AA plannin" to sa%e between Rs. B(((G and
Rs. CA-(((G to be contrib#ted in half yearly are ann#al install$ents o%er a period of :( or
:A years. 2ersons o%er AA years can "o in for a :( year plan. No $edical e0a$ination is
necessary.
The $oney back type policies help the policy holders to so$e e0tent. The l#$p
s#$s paid periodically with o#t affectin" the a$o#nt of ins#rance o%er- can be in%ested.
Re"#lar state$ent for the ins#rer wo#ld indicate the "rowth of each of these f#nds and the
policy holder wo#ld ha%e a choice of shiftin" fro$ one to another.
R,/ERS1
! rider is a cla#se that is added on to a basic policy pro%idin" an additional benefit-
at the choice of the proposer .Val#ation s#rpl#s also is offered a rider. *#t that is not so
with re"ard to all riders.
So$e of the riders bein" offered by ins#rers in ,ndia1
,ncreased death benefit.
!ccident benefit allowin" do#ble the S! if death happens
2er$anent disability benefits- co%erin" loss of li$bs- eye site etc.
G#aranteed increases in co%er at specified periods.
?o%er to contin#e beyond $at#rity a"e for sa$e.
!s per re"#lation $ade by the ,R/! in !pril '((' and a$ended in 6ctober '(('.
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2+!NS ?6VER,N H!N/,?!22E/1
2hysically handicapped persons are ins#red. E0tras are char"ed in so$e cases like
loss of both ar$sD deaf in both ears- blind in both eyes- etc. these details will ha%e to be
"athered fro$ the co$panies #nder writin" depart$ents.
+!W !N/ REU+!T,6N1
The ins#rance act :);- which ca$e in to effect fro$ :
st
ly :);)- and was ana$ended in :)A( and later in :)))- is the principal enact$ent relatin" to the b#siness of
ins#rance in ,ndia.
Section '3A!4 defines chief a"ent as a person who- not bein" a salaries e$ployee of an
ins#re- in consideration of co$$ission- e$ployin" to be e$ployed ins#rance a"ent on be
half of the ins#rer.
Section
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!/V!NT!ES 68 +,8E ,NSUR!N?E
E%en so- a co$parison with other for$s of sa%in"s will show that life ins#rance has
the followin"
,n the e%ent of death- the settle$ent is easy. The heirs can collect the $oney@s 5#icker-
beca#se of the facility of no$ination and assi"n$ent. The facility of no$ination is now
a%ailable for so$e bank acco#nts. There is a certain a$o#nt of co$p#lsion to "o tho#"hthe plan of sa%in"s. ,n other for$s- if one chan"es the ori"inal plan of sa%in"s- there is no
loss. ,n ins#rance- there is a loss.
?reditors cannot clai$ the life ins#rance $oneys. They can be protected a"ainst
attach$ents by co#rts.
There are ta0 benefits- both in inco$e ta0 and in capital "ains
arketability and li5#idity are better. ! life ins#rance policy is property and can be
transferred or $ort"a"ed loans can be raised a"ainst the policy.
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CHAPTER46%$*PA!) P#$F+&
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COMPANY PROFILE
,N R6U2 ,NTR6/U?T,6N1
,N is a fort#ne A(( co$pany- acti%e in the field of bankin"- ins#rance- and asset
$ana"e$ent.
Ranked :;thin the "lobal fort#ne A((
:A( years of financial e0pertise.
Tr#st of si0 crores c#sto$ers.
World@s lar"est financial ser%ices co$pany 3in Re%en#es4.
6%er RsB:.Alakh crores in assets.
6%er last :A( years- ,N "ro#p has "rown to beco$e one of the lar"est life
ins#rance or"ani9ations in the world. Today it to#ches the li%es of o%er B crore people
across :A; cities. ,t offers a ran"e of financial ser%ices incl#din" ins#rance- pension-
bankin" and asset $ana"e$ent. ,n the year '((- total asset of the "ro#p stood o%er:;BBB)A.C $illion with e$ployees ::A;(( and profits ac5#ired are )A.) $illion. ,N
is now pro%idin" its ser%ices to A( co#ntries.
HISTORY OF ING9
,N "ro#p ori"inated in:)): to ens#re people felt protected and at peace. To
pro%ide the sa$e- $er"ers- ac5#isitions and or"anic "rowth took place to for$ a stron"er-
lar"er or"ani9ation. The o#tco$e is the ,nternational Netherlander ro#p ,n :)):. Which
is abbre%iated as ,NF
The ,N "ro#p- the world@s lar"est financial ser%ice pro%ider partnered with
,ndia@s pre$ier pri%ate sector financial instit#tion- the V7S7! bank. ,N V7S7! +ife
,ns#rance is an o#tco$e of this partnership.
The +ion was here to address e%ery need it was sy$bol that ,ndian@s e5#ated
to inte"rity- tr#st and wealth.
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,N V7S7!1
The core b#siness operations are
o ,ns#rance
o *ankin"
o !sset $ana"e$ent
,N V7S7! $#t#al f#nds 3started in :)))4 and is now one of
,ndia@s
+eadin" asset $ana"e$ent co$panies.
,N V7S7! +ife started in Septe$ber '((:
,N "ro#p ac5#ired V7S7! bank in '(('.
,N V7S7! bank pro%ides retail- wholesale- pri%ate bankin"
ser%ices.
ING VYSYA
B0,i,# Mutu0: 2u,d/ A//et M0,0#eme,t
I,/u-0,1e
Ret0i: /e-?i1e/
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;.$:e/0:e /e-?i1e/
P-i?0te b0,i,# /e-?i1e/
,N V7S7! +ife ,ns#rance offers fle0ibility and choice to "o with e%ery sta"e of life.
ING VYSYA LIFe4%&&*
?o$$enced operations in Septe$ber '((: with 'Gbranches
,nitial ,n%est$ent Rs::(cr
Head 5#artered in *an "alore
,nitial shareholders were ,N- V7S7! *!NK- R ro#p.
!t ,N V7S7! +ife one thin" that they held in the hi"hest estee$ is h#$an life
itself.
This si$ple philosophy endows the$ with a de"ree of sensiti%ity and dedication
that they feel $akes the$ that $#ch $ore special to their c#sto$ers. Thisphilosophy s#pported well to achie%e best f#lfill$ent of c#sto$er needs in '((B.
ING VYSYA LIFE4%&&' DECEMBER
,n%ested B
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EN! R6U21
,t is one of ,ndia@s leadin" financial ser%ice pro%iders rep#ted for its ability to percei%e the
tr#e potential of b#sinesses and enhance their %al#e. The c#lt#re at EN! "ro#p is deeply
rooted in Ethics- ,nno%ation and 8inancial sobriety
EM,/E ,N/USTR,ES +,,TE/1
,t is the $arket leader in both the a#to$oti%e and ,nd#strial se"$ents JEM,/E@ and
JS8 3standard 8#r#kawa4@- the fla"ship brands of the co$pany are also the leadin" battery
brands in the co#ntry.
U&!R!TH !*U&! ?EENTS +,,TE/1
,t is the third lar"est ce$ent co$pany in ,ndia.
,NV7S7! +,8EG6!+1
o To be in the top fi%e +ife ,ns#rance players in ,ndia.
With the abo%e ,N V7S7! +,8E has a lon" standin" relationship with its c#sto$ers and
deep #nderstandin" of the ,ndian $arket.
2ER86R!N?E ST!N/!R/S- R6+ES I RRES26NS,*,+,T,ES1
To allow internal $obility of e0istin" e$ployees and recr#itin" new
applicants into the co$pany ,N has set so$e perfor$ance standards.
2ER86R!N?E !N/ ?62ENS!T,6N REV,EW 2R6?ESS1
,$ple$ented fro$ &!NG:G '((C
=!nni%ersary Re%iew =replaces the e0istin" =!nn#al Re%iew>.
Re%iews for e%ery si0 $onths be"in fro$ :' $onths of ser%ice 3i.e. :'- :- '
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!UT6!TE/ ?ENTR!+ 2ER86R!N?E !N!EENT S7STE1
,ndi%id#al perfor$ance re%iew is based on ten#re linked tar"et
achie%e$ents
New perfor$ance standards is based on classified ten#res
:stre%iew1 (GB $onths 3confir$ation re%iew4
'ndre%iew1 :' $onths 3co$pletion4
;rdre%iew1 : $onths 3co$pletion4
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Establishin" $ana"in"
!cti%ity standards of the
Tea$ $e$bers
Trainin" need assess$ent and
Sched#le deli%ery
Retention of
prod#cti%e
!d%isors
/#e and ti$ely reco"nition
Ti$ely disb#rse$ent of co$$ission
and incenti%es
aintenance and #pdatin"
perfor$ance records
onthly tea$ $eetin"
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MILESTONES FOR ING IN INDIA
7ear :))< ,N *earin"s NV 6ffers ,n%est$ents bankin"- corporate finance and
other financial 2rod#cts and ser%ices.
7ear :)CC ,N ,ns#ranceGrepresentati%e office.
7ear :))) ,N ,n%est$ent $ana"e$ent 3,ndia4 2%t. +td.1
2ro%ides $#t#al f#nd prod#cts to c#sto$er thro#"h ,N
Tr#st- Established in early :))).
/eli%ers on pro$ises 7ear '((( ,n" Vent#re *erin"s pri%ate
e5#ity
.
7ear '((: ,N V7S7! +ifeGla#nched in the $onth of
Septe$ber
7ear '((' ,N b#ys a
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Treats ?#sto$er fairly
6ffers "ood 5#ality prod#cts I ser%ices
6ffers clarity in prices and conditions
?o$$#nicates openly and with o#t jar"on.
,s easy to deal with
!ccessible when needed
8le0ible sol#tions fittin" with c#sto$er needs
8riendly and carin".
UN/ERWR,T,N1
,t is the process by which applications for ,ns#rance are selected and are classified
accordin" to the le%el of risk that each one represents.
R,SK1
,s the possibility of ad%erse conse5#ences that $i"ht res#lt in loss of life.
NEE/ 86R UN/ERWR,T,N1
We need to $aintain e5#ity a$on" policyholders.
Keep with the $ortality ass#$ptions #sed for calc#latin" pre$i#$ rates.
Re$ain co$petiti%e.
2rotect the co$pany fro$ anti selection.
To offer co%er to a lar"e "ro#p of li%es.
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REOU,REENTS 68 UN/ERWR,T,N1
!E 2R668S1
2re$i#$s are calc#lated on the life to be ass#reds@ a"e. Therefore a"e ad$ission by
the life to be ass#red is a precondition for the acceptance of any proposal of life ins#rance.
!E 2R668S
ST!N/!R/ !E 2R668S
N6N ST!N/!/ !E 2R668S
ST!N/!R/ !E 2R668S1
?ertified e0tract fro$ school or colle"e records.
?ertified ori"inal copies of school colle"e certificates.
?ertified e0tract fro$ the ser%ice re"ister in case of "o%ern$ent e$ployees.
/ate of birth certificate.
2assport
/ri%in" license.
2!N card
N6N ST!N/!R/ !E 2R668S1
Election ,/ card.
/ri%in" license iss#ed less than ' years prior to the date of proposal
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Ration cardG,ss#ed ' years prior to the date of proposal
ES, card.
?+!SS,8,?!T,6N 68 UN/ERWR,T,N1
Non $edical
edical
8e$ale
St#dent life
8inancial.
NONMEDICAL UNDER;RITING1
O#alified 2eople eneral 2#blic
O#alification :(thstandard and abo%e
ini$#$ a"e at entry : years
a0i$#$ a"e at entry A( years
a0i$#$ s#$ #nder consideration for a"e :G;A :((((((.
;BG
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E/,?!+ UN/ERWR,T,N1
S#$ #nder consideration is the total s#$ ass#red of all policies at ,N V7S7! +ife ,ns#rance
?o$pany +i$ited.
R6+ES RES26NS,*,+,T,ES !?T,V,T,ES
aintainin" a
Tea$
aintain $ini$#$ tea$
Si9e
aintain $ini$#$ tea$
?o$position
Recr#it$ent
,nd#ction and
+icensin"
ana"in" tea$
2rod#cti%ity
oal settin" for
Tea$ $e$bers
Establishin" $ana"in"
!cti%ity standards of the
Tea$ $e$bers
!cti%ity $ana"e$ent
Trainin" need assess$ent and
Sched#le deli%ery
Retention of
prod#cti%e
!d%isors
/#e and ti$ely reco"nition
Ti$ely disb#rse$ent of co$$ission
and incenti%es
aintenance and #pdatin"
perfor$ance records
onthly tea$ $eetin"
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8E!+E UN/ERWR,T,N1
?ate"ory SelfGE$ployed8e$ale
Ho#se wife Widow life
S! +i$its Up to '.Alakhs3SU?4With o#t ,nco$eproof8or SU?P'.A+akhs,nco$e proof is
needed
a0i$#$ '.A+akhsWith o#t h#sband,ns#rancea0i$#$ :A+akhsH#sband ,ns#ranceis
needed
a0i$#$ ?o%erA+akhs
2lanRestrictions
2roof of earned,nco$e
T?8- ?ER2lans are notallowed
N,+
RidersRestrictions
Ter$W62N6
Ter$W62!re not "i%en
!ny other N,+ 2re"nant ho#se wifeWill not be offeredany co%er
No$inee can beSonda#"hter who is either a$inor or 8inancially/ependent on the +!
STU/ENT +,8E UN/ERWR,T,N1
/6?UENT1
?#rrent schoolcolle"e proof
inor life O#estionnaire andatory for a"e "ro#p (G:< years
2arent $#st be proposer.
other can be proposer.
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+ife !ss#red can propose on self with parent inco$e details.
8,N!N?,!+ UN/ERWR,T,N1
!E T6T!+ R,SK ?6VER
:G;A
'( ti$es of "ross inco$e- B ti$es for ?,
;BG
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N6NE/,?!+ 6R STR!,HT THR6UH 2R6?ESS1
2roposal acceptance
2olicy bond
*ond will reach c#sto$e
6RS 36THER REOU,REENTS E6S41
edical report s#b$ission
E0tra pre$i#$ will be paid
edical reports can be s#b$itted in $edical center
Report will be prepared
2roposal acceptance
2olicy bond
*ond will be "i%en to c#sto$er
8ree look period will be "i%en
ORGANISATION STRUCTURE
Re"istered office at *an "alore
Re"ional offices Q H7/ER!*!/
3,t will be #nder re"ional "eneral $ana"er I %ise president4
!rea ana"ers
Hyderabad Waran"al Tir#pathi Vijayawada Vi9a" #nt#r
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*ee$a%ara$ #di%ada achilipatna$ Tan#k# El#r#
Vijayawada Tadepalli"#de$
ADVISOR RECRUITMENT AND TRAINING
!/V,S6R
OU!+,8,?!T,6N
A( H6UR TR!,N,N W,++ *E ,VEN Q ,NSUR!N?E ,NST,TUTE 68 ,N/,! !22R6VE/ TR!,N,N ?ENTRES
EM! ?6N/U?T,6N
RESU+T !NN6UN?EENT
/6?UENT SU*,SS,6N
?6/,N
!/V,S6R
?+U* E*ER
8,N!N?,!+ ?6NSU+T!NT
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!/V,S6R 6WN *US,NESS 6THERS,N V7S7! +ife ,ns#rance ai$s at protectin" the predictable and Unpredictable e%ents.
2RE/,?T!*+E EVENTS1
Ho#se hold E0penses
Ed#cation
?hildren $arria"e
*#yin" an asset
Retire$ent
+ea%in" a +e"acy
UN2RE/,?T!*+E EVENTS1
/eath
Sickness
/isability
?ritical illness
,N V7S7! +ife ,ns#rance is pro%idin" the +ife $aker to assists yo# in b#ildin" a
co$plete financial plan for life by o#tlinin" the basic needs for life ,ns#rance.
2R6TE?T
S!VE
RET,RE
,NVEST
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ING VYSYA LIFE INSURANCE PRODUCTS
TER 2+!NS
S!8!+ &EEV!N EN/6WENT 2+!N
?RE!T,N +,8E EN/6WENTG?hild protection plan
S!8!+ &EEV!N 6NE7 *!?K 2+!N
?RE!T,N +,8E ?hild protection $oney back plan.
NEW 8U+8,++,N +,8E !nticipated whole of life plan.
NEW 8REE/6 2+!NG Unit linked policy.
H,H +,8E 2+US G Unit +inked Re"#lar 2re$i#$.
*EST 7E!RS RET,REENT 2+!N.
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ING VYSYA PRODUCTS9
TER 2+!NS
TER +,8E G ! 2R6TE?T,6N S6+UT,6N
ini$#$ a"e at entry :
a0i$#$ a"e at entry BA
2re$i#$ pay$ent Ter$ :( to ;( years.
ini$#$ 2re$i#$
Re"#lar 2re$i#$s
,n case of +i$ited 2re$i#$
3AGyear pay$ent ter$4
,n case of sin"le pre$i#$
RsB'
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?6NOUER,N +,8EG?R,T,?!+ ,++NESS 2+!N
ini$#$ a"e at entry :
a0i$#$ a"e at entry A(
2re$i#$ payin" ter$ :( to 'A years
ini$#$ 2re$i#$
Half yearly
7early
:A((
'A((
/eath *enefit :(( SU !SSURE/
S#r%i%al interi$ A( of S#$ !ss#red on dia"nosis
6f critical illness to a $a0i$#$ of
'(lakhs
at#rity G
Riders !%ailable Ter$- !/*!///*.
EN/6WENT 2+!NS1
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S!8!+ &EEV!N EN/6WENT 2+!N
ini$#$ a"e at entry :
a0i$#$ a"e at entry
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ini$#$ a"e at entry :
a0i$#$ a"e at entry AA
2re$i#$ payin" ter$ :( to 'A years
ini$#$ 2re$i#$Half yearly7early
'(((
/eath *enefit :((SU !SSURE/ W!,VER 68 2RE,US3W624
S#r%i%al interi$ G
at#rity :(( S! ?R* T*.
Riders !%ailable !/*!///* and W62.
RE!SSUR,N +,8E EN/6WENT 2+!N
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ini$#$ a"e at entry (
a0i$#$ a"e at entry B(
2re$i#$ payin" ter$ :( to ;( years
ini$#$ 2re$i#$Half yearly7early
'(((
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ini$#$ a"e at entry :'
a0i$#$ a"e at entry A(
2re$i#$ payin" ter$ :A- '(- 'A years
ini$#$ 2re$i#$Half yearly7early
'(((
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ini$#$ a"e at entry :
a0i$#$ a"e at entry
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a0i$#$ a"e at entry Ais the b#yin"- sellin"- and $arketin" cycle defined as the preG and postGeffects of that #ni5#e
sale.
The transaction itself holds a key position as the h#b of co$$erce. Each sale is identified and
handled separately as a #ni5#e transaction e0perience. Each ti$e a si"nat#re is pro%ided by the
b#yer- and a sale is cons#$$ated by the b#yin" or"ani9ation- a sin"le transaction has
occ#rred- b#t the transaction e0perience $ay only be half way o%er.
,NSUR!N?E S!+ES 2R6?ESS1
This co#rse describes the i$portance of personal sellin" for ins#rance co$panies and the steps
incl#ded in the ins#rance sales process. ,t also describes the beha%iors that c#sto$ers e0hibit
when $akin" p#rchase decisions and the steps in the p#rchase decision process. 6ther
i$portant topics described in this co#rse incl#de $ethods of identifyin"- contactin"- and5#alifyin" prospecti%e c#sto$ers- and the ways in which ins#rance prod#cers "ather
infor$ation- analy9e c#sto$er needs- and prepare proposals to $eet those needs.
Usin" The New ,ns#rance Sales 2rocess 1
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Now with ' years e0perience of the 8S! ,ns#rance re"#lation we ha%e #ndertaken a total
re%iew of the ,ns#rance Sales process in Ho$e *#yer.
Whilst the ori"inal process has ser%ed o#r c#sto$ers well and let@s re$e$ber that Ho$e
*#yer is the only syste$ that pro%ides an ,ns#rance Sales syste$- it was ti$e to re%iew it. !s
sho#ld be apparent to all of o#r c#sto$ers- we are constantly lookin" to add facilities yo# want
or need and spend a lot of ti$e with c#sto$ers findin" o#t what we need to do.
,n re%iewin" the ins#rance sales process we ha%e worked with $any c#sto$ers who ha%e
considerable e0perience in ins#rance sales. There are too $any to $ention b#t we are %ery
"ratef#l to each and e%eryone. This %ery $#ch typifies the spirit that Ho$e *#yer c#sto$ers
ha%e en"endered- of all wantin" to $ake contrib#tions that better the syste$ for the "ood ofthe$sel%es and e%eryone else #sin" it.
We belie%e that the new %ersion that we now present to yo# represents a $ajor i$pro%e$ent
and will $ake this process $#ch 5#icker as well as pro%idin" a better presentation to yo#r
c#sto$ers.
! #ide to Usin" the ,ns#rance Sales 2rocess 1
The ,ns#rance sales process p#lls in all the rele%ant details fro$ the 8act find so that when yo#
arri%e yo# already ha%e the infor$ation yo# will need.
The process is di%ed into < sta"es1
: :. !ffordability
: '. /e$ands
: ;. Needs
:
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:. !ffordability
When yo# arri%e at the ins#rance screen the total =onthly /isposable ,nco$e> the
c#sto$er has will be displayed.
onthly /isposable ,nco$e
preGcalc#lated fro$ 8act find
,np#t the a$o#nt of disposable inco$e that can be #sed
!$o#nt +eft to spend will red#ce when prod#ct sale a"reed the syste$ then re5#ires that yo#
ask the c#sto$er how $#ch of this they can afford to spend on protectin" the$sel%es and their
ho$e. The fi"#re is entered in the field $arked =How #ch can yo# afford to spend on
,ns#rance 2re$i#$s.
'. /e$ands
The de$ands section will ha%e calc#lated fi"#res that show ideally the le%el of co%er
the c#sto$er needs for each of the risks they and there ho$e are potentially liable to.
,f yo# click the li"ht bl#e b#tton on any of the different protection types a window will
open that shows yo# how the fi"#res ha%e been calc#lated. ,t also allows yo# to enter
additional infor$ation.
;. Needs
The Needs section allows yo# to record whether yo#r c#sto$er intends to follow yo#r
reco$$endation or not.
,f they do it $i"ht be that they a"ree with takin" o#t protection for that risk b#t not at the
le%el yo# ha%e ad%ised. The syste$ reco"ni9es this and yo# can record the le%el of co%er
the c#sto$er wants. The c#sto$er $i"ht also decide they do not want or cannot afford the
co%er and this is catered for too.
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6nce it has been decided that the c#sto$er is "oin" to be takin" o#t ins#rance then in
Section < yo# can so#rce it. To do this click on the rele%ant so#rcin" b#tton in the section
titled =,ns#rance O#ote>.
When yo# ha%e selected the prod#ct that yo# are "oin" to be reco$$endin" yo# click the
=!dd 2olicy> b#tton.
When yo# do yo# will "et the followin" screen- which allows yo# to enter the details of
the reco$$ended policy. 6nce yo# ha%e added the$- click on the S#itability Tab and add
yo#r co$$ents to yo#r c#sto$er that e0plain why this prod#ct is s#itable for the$. !"ain
as in the =Needs> section yo# can sa%e yo#r para"raphs. 2lease see that section for
instr#ctions on how to do it.Then yo# do the sa$e for !ffordability- which has been calc#lated in section : for yo# to
check. Then if the policy has any E0cl#sions or conditions on clai$s yo# sho#ld enter
the$ in the =E0cl#sion and ?lai$s> section.
7o# then click the =?ontin#e> b#tton when this section is co$pleted. The policy will then
be record as shown below.
To "o back into the details yo# do#ble click on the co$pany na$e and it will brin" the
window #p for yo#.
7o# now "o on and repeat this for all the prod#cts that the c#sto$er is "oin" to effect.
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CHAPTER4(DA"A !"P#&"A"$!
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:. !nalysis based on those who are #sin" ,ns#rance policy of ,N
TABLE4*
Sl.No Response Respondents 2ercenta"e
:. 7es A
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'. !nalysis based on awareness of ,N Vysya +ife ,ns#rance ?o$pany
TABLE4%
Sl.No Response Respondents 2ercenta"e
:. 7es
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;. !nalysis based on so#rce of awareness abo#t ,N Vysya +ife ,ns#rance?o$pany
TABLE46
Sl.No Response Respondents 2ercenta"e
:. 8riends 'A ''.C;
'. !"ents ;A ;:.:
;. Relati%es 'A ''.C;
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TABLE4)
Sl.No Response Respondents 2ercenta"e
:.Traditional3+on" ter$4
BC B(.):
'.odern
3Short ter$4
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TABLE4(
Sl.No Response Respondents 2ercenta"e
:. :(-((( A'
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Sl.No Response Respondents 2ercenta"e
:. onthly ;( 'C.'C
'. O#arterly '( :.:
;.HalfGyearly
'A ''.C;
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C. !nalysis based on $ethod of pay$ent
TABLE4C
Sl.No Response Respondents 2ercenta"e
:. ?ash
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Each and e%ery person didn@t #se credit cards and che5#e books.
. !nalysis based on the interest of people to takin" children plan of ,N Vysya+ife ,ns#rance
TABLE4'
Sl.No Response Respondents 2ercenta"e
:. 7es C' BA.
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The life ins#rance plan e%en it is %ery #se f#ll to children@s also $a0i$#$ respondents
are #sin" for their children@s.
). !nalysis based on interest of people in takin" retire$ent plans of ,N Vysya+ife ,ns#rance
TABLE4
Sl.No Response Respondents 2ercenta"e
:. 7es
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The retire$ent plan e%en it is %ery #se f#ll to retired peoples also the $a0i$#$
respondents are not #sin" beca#se the $any co$petitors are offerin" so$e $ore
benefits to this plan. So it is necessary to attract the retired people.
:(. !nalysis based on kinds of policies which wo#ld people prefers to take
TABLE4*&
Sl.No Response Respondents 2ercenta"e
:. ?hildren 2lan
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The n#$ber of people prefers the children@s plan beca#se it has $ore ret#rns and
benefits and also it is a lon" ter$ plan.
:: !nalysis based on the s#$ of a$o#nt yo# are ready to in%est for childins#rance
TABLE4**
Sl.No Response Respondents 2ercenta"e
:. :(-(((G'(-((( A;
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To in%est '((((G;(((( for their child- ''.C; of c#sto$ers are interested to in%est ;((((G
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6#t of ::( c#sto$ers- AC.'C of c#sto$ers ha%e taken one policy- '( of
c#sto$ers ha%e taken two policies- :;.B
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!N!+7S,S I ,NTER2RET!T,6N1
6#t of ::( c#sto$ers-
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FINDINGS
The findin"s of the st#dy are
ost of the people are interested to ins#re policies b#t they are not aware of ins#rance
policies.
ost of the people were not yet ins#red any plans.
ost of the clients were not aware of ,N V7S7! +,8E ,NSUR!N?E.
!d%ertisin" re"ardin" ,N V7S7! is not #p to the $ark.
?#sto$ers are not so interested in takin" Short ter$ plans and $any of the$ are
interested in takin" Traditional plans.
?#sto$ers ins#red '((((G and ;((((G plans were less to that of the :((((G plans.
+ar"e no. of c#sto$ers prefer yearly $ode of pay$ent.
ost of the c#sto$ers are not interested in takin" ?hildren plans.
?#sto$ers who ins#red : lakh plan are lar"e in n#$ber to that of the ' lakh and ; lakh
policy holders.
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ost of the c#sto$ers are not interested to prefer Retire$ent plans.
SUGGESTIONS
,N Vysya +ife ,ns#rance ?o$pany has to i$ple$ent children policies. So that in
lon" ter$ it will "i%e $ore benefits which is less of risk.
,N Vysya +ife ,ns#rance ?o$pany sho#ld take the $eas#res of awareness thro#"h
ad%ertise$ents and news papers etc.-
,N Vysya +ife ,ns#rance ?o$pany pro%ides proper trainin" in sellin" pro$otin"
ins#rance b#siness.
,N Vysya +ife ?o$pany $#st ha%e to "i%e the $ore i$portance to the ,ns#rance
plans which are in yearly $ode of pay$ent.
,N Vysya +ife ?o$pany has to brin" awareness in the people re"ardin" ,ns#rance.
,N Vysya +ife ?o$pany has $#st introd#ce $ore +on" ter$ plans.
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CONCLUSION
The co$pany can foc#s on $arketin" on pro$otional acti%ities to brin" in $ore
c#sto$ers. ,t sho#ld keep the consistency and transparency in its $ana"e$ent and it $ay
contin#e to "i%e the best res#lt keepin" in $ind the c#sto$ers objecti%e in $akin" their
in%est$ent.
ost of the c#sto$ers are satisfied with the ret#rn obtained thro#"h life ins#rance.
,N V7S7! +ife ,ns#rance offers fle0ibility and choice to "o with e%ery sta"e of life. ,N
Vysya +ife ,ns#rance ?o$pany has attained "ood awareness thro#"h $edia ad%ertise$ents.
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ANN!U"
#
BIB$I%&"A'
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B. Which $ethod of pay$ent do yo# preferF
a4 ?ash b4 ?redit card c4 ?he5#e
C. How $#ch oney yo# are payin" to yo#r prod#ct in ,N Vysya +ife ,ns#rance?o$panyF
a4 :(-((( b4 '(-((( c4 ;(-((( d4 $ore than
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BIBLIOGRAPHY
B$$/ 0,d 0ut.$-/9
P-i,1i
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*! @@@!#$$#:e!1$m
%! @@@!i,#?y/y0:i2e!1$m
6! @@@!i,/u-0,1e!i,di0!1$m
4. www.irdaindia.com
5. www.wikipedia.com