investor behaiour toward pnb met life ife insurance policies amit singh

8/10/2019 Investor Behaiour Toward PNB MET LIFE Ife Insurance Policies Amit Singh

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OON BUSINESS SCHOOL, EHRA UN

STU ENTS ECLERATION

I hereby declare that project report conducted at MAVEN SOLUTION on

STUDY OF RECRUITMENT AND SELECTION IN CONSULTANCY

FIRM written and submitted by me, under the guidance of Priyam Garg

While preparing the report, I have not copied anything from any source or

other projects submitted for similar purpose.

PLACE NEHA

NEGI

DATE MBA 3 rd

Sem

Study o! Investor &ehavior To$ard PN& MET li!e Insurance Pa%e 2


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CERTIFICATE

I have the pleasure in certifying that is a bonafide student of

I th !emester of the "aster#s $egree in %usiness &dministration '%atch

2(12)2(1*+, of ttaranchal Institute of -echnology, $ehradun under

ttara hand -echnical niversity.

/e has completed his dissertation report entitled 0 &3 !-&- 4 my

guidance.

I certify that this is his5her original effort 6 has not been copied from any

other source. -his project has also not been submitted in any other Institute 5

niversity for the purpose of award of any $egree.

-his project fulfils the re7uirement of the curriculum prescribed by this

Institute for the said course. I recommend this project wor for evaluation 6

consideration for the award of $egree to the student.

!ignature 8 999999999999

:ame of the Guide 8

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$esignation 8 999999999999

$ate 8 999999999999

ACKNOWLEDGEMENT

very study re7uires a guidance of someone who is wor ing in that field.


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PREFACE

-he liberali>ation of the Indian insurance sector has been the subject of much

heated debate for some years. -he policy ma ers where in the catch 22 situation wherein

for one they wanted competition, development and growth of this insurance sector which

is e=tremely essential for channeling the investments in to the infrastructure sector. &t the

other end the policy ma ers had the fears that the insurance premium, which are

substantial, would seep out of the country? and wanted to have a cautious approach of

opening for foreign participation in the sector.

&s one of the rare occurrences the entire debate was put on the bac burner and the I $&

saw the day of the light than s to the maturing polity emerging consensus among factions

of different political parties. -hough some changes and some restrictive clauses as

regards to the foreign participation were included the I $& has opened the doors for the

private entry into insurance.

Whether the insurer is old or new, private or public, e=panding the mar et will present

multitude of challenges and opportunities. %ut the ey issues, possible trends,

opportunities and challenges that insurance sector will have still remains under the realms

of the possibilities and speculation. What is the li ely impact of opening up India#s

insurance sector@

-he large scale of operations, public sector bureaucracies and cumbersome procedures

hampers nationali>ed insurers. -herefore, potential private entrants e=pect to score in the

areas of customer service, speed and fle=ibility. -hey point out that their entry will mean

better products and choice for the consumer. -he critics counter that the benefit will be

slim, because new players will concentrate on affluent, urban customers as foreign ban s

did until recently. -his seems to be a logical strategy. !tart)up costs)such as those of

setting up a conventional distribution networ )are large and high)end niches offer better

returns. /owever, the middle)mar et segment too has great potential. !ince insurance is a

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volumes game. -herefore, private insurers would be best served by a middle)mar et

approach, targeting customer segments that are currently untapped

INSURANCE INDUSTRY IN INDIA

AN OVERVIEW

With the largest number of life insurance policies in force in the world, Insurance

happens to be a mega opportunity in India. It#s a business growing at the rate of 1A)2( per

cent annually and presently is of the order of s 1AB(.*1 billion 'for the financial year

2((B C 2((D+. -ogether with ban ing services, it adds about DE to the country#s Gross

$omestic Product 'G$P+. -he gross premium collection is nearly 2E of G$P and fundsavailable with 3IF for investments are E of the G$P.

ven so nearly BAE of the Indian population is without life insurance cover while health

insurance and non)life insurance continues to be below international standards. & large

part of our population is also subject to wea social security and pension systems with

hardly any old age income security

& well)developed and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development and strengthens the ris ta ing

ability of individuals. It is estimated that over the ne=t ten years India would re7uire

investments of the order of one trillion ! dollars.

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HISTORICAL PERSPECTIVE

-he history of life insurance in India dates bac to 1 1 when it was conceived as a

means to provide for nglish Widows. Interestingly in those days a higher premium was

charged for Indian lives than the non ) Indian lives, as Indian lives were considered more

ris y to cover. -he %ombay "utual 3ife Insurance !ociety started its business in 1 D(. It

was the first company to charge the same premium for both Indian and non)Indian lives.

-he Hriental &ssurance Fompany was established in 1 (. -he General insurance

business in India, on the other hand, can trace its roots to -riton Insurance Fompany

3imited, the first general insurance company established in the year 1 A( in Falcutta by

the %ritish. -ill the end of the nineteenth century insurance business was almost entirely

in the hands of overseas companies.

Insurance regulation formally began in India with the passing of the 3ife Insurance

Fompanies &ct of 1 12 and the Provident ed monopoly corporation and 3ife Insurance

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Forporation '3IF+ was born. :ationali>ation was justified on the grounds that it would

create the much needed funds for rapid industriali>ation. -his was in conformity with the

GovernmentJs chosen path of !tate led planning and development.

-he non)life insurance business continued to thrive with the private sector till 1 D2. -heir

operations were restricted to organi>ed trade and industry in large cities. -he general

insurance industry was nationali>ed in 1 D2. With this, nearly 1(D insurers were

amalgamated and grouped into four companies) :ational Insurance Fompany, :ew India

&ssurance Fompany, Hriental Insurance Fompany and nited India Insurance Fompany.

-hese were subsidiaries of the General Insurance Fompany 'GIF+.

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INDUSTRY REFORMS

eforms in the Insurance sector were initiated with the passage of the I $& %ill in

Parliament in $ecember 1 . -he I $& since its incorporation as a statutory body in

&pril 2((( has fastidiously stuc to its schedule of framing regulations and registering

the private sector insurance companies. !ince being set up as an independent statutory

body the I $& has put in a framewor of globally compatible regulations.

-he other decision ta en simultaneously to provide the supporting systems to the

insurance sector and in particular the life insurance companies was the launch of the

I $& online service for issue and renewal of licenses to agents. -he approval of

institutions for imparting training to agents has also ensured that the insurance companies

would have a trained wor force of insurance agents in place to sell their products.

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PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN INDIA

-he life insurance industry in India grew by an impressive *D.; E, with premium

income at s. 1AB(.*1 billion during the fiscal year 2((B)2((D. -hough the total volume

of 3IFJs business increased in the last fiscal year '2((B)2((D+ compared to the previous

one, its mar et share came down from A.DAE to 1. 1E.

-he 1D private insurers increased their mar et share from about 1AE to about 1 E in a

yearJs time. -he figures for the first two months of the fiscal year 2((D)( also spea of

the growing share of the private insurers. -he share of 3IF for this period has further

come down to DA percent, while the private players have grabbed over 2* percent.

With the opening up of the insurance industry in India many foreign players have entered

the mar et. -he restriction on these companies is that they are not allowed to have more

than a 2BE sta e in a company#s ownership.

!ince the opening up of the insurance sector in 1 , foreign investments of s. .D

billion have poured into the Indian mar et and 1 private life insurance companies have

been granted licenses.

Innovative products, smart mar eting, and aggressive distribution have enabled fledgling

private insurance companies to sign up Indian customers faster than anyone e=pected.

Indians, who had always seen life insurance as a ta= saving device, are now suddenly

turning to the private sector and snapping up the new innovative products on offer. !ome

of these products include investment plans with insurance and good returns 'unit lin ed

plans+, multi C purpose insurance plans, pension plans, child plans and money bac plans.

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INTRODUCTION TO THE COMPANY

COMPANY PROFILE OF PNB MET LIFE

i N!me "# "r$!%i&!'i"% (F)** %!me+ re$i,'ered !ddre,,+ !%d e.,i'e/

N!me0 "etlife He!d O##i1e

"et3ife India Insurance Fompany 3imited. :o.A %rigade !eshmahal ani ilas oad%asavanagudi%angalorePhone 8 ( ( ) BB((B B 5 2B*; B;


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ii Ke8 E:e1)'i4e,

KEY EXECUTIVES - METLIFE INC (MET) :ame %oard elationships -itle &ge!teven &.Landarian M.$. 73 elationships Fhief =ecutive Hfficer, President and $irector A

William M.Wheeler :o elationships

Fhief


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EXECUTIVE COMMITTEES* - METLIFE INC (MET)Fommittee :ame Fhairperson %oard elationships "embers

&udit Fommittee Lenton M. !icchitano 3= elationshipsB

=ecutives

Fompensation Fommittee Mames ". Lilts 7>< elationships B=ecutivesForporate GovernanceFommittee Fheryl W. GrisO


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1 C


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Q A(1.D billion !$ in total assets under

management as of 2(( KQ A1.( million !$ in total revenues as of 2(( K

4 Vi,i"% !%d V!*)e,

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SFoming into your ownS, performing as a 3eader to

be really effective andsuccessful by acting and

ma ing decisionsindependently to get

results.

ItJs all about People,"et3ifeJs ey resource."et3ife will succeed

because we are winningfrom within.


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4i Mi,,i"% S'!'eme%'

We are committed to maintaining the highest standards of integrity and professionalism

in our relationship with you, our client. We endeavour to now and understand your financial situation and provide you with only the information, services, and products to

help you reach your goals.

4ii B),i%e,, P i*","9 8

"The grat ! at o# o! $ea%th s #ot !od # mere 'ossess o# or # %a sh e 'e#d t&re b&t # ts $ se

a''% at o#+" M g&e% ,e Cer a#tes ( ./0)

Today's clients are loo in! "or sec#rity$ no%in! t&at t&ey &a e eno#!& oney$ and t&at t&eir needs are

ta en care o" Freedo to do %&at t&ey %ant$ %&en t&ey %ant *s a Financial +ro"essional %it& o er ,

years o" no%led!e and e./erience in t&e "inancial ser ice ind#stry$ clients %&o !ain t&e ost 0ene"it "ro

y areas o" "oc#s &a e t&e "ollo%in! c&aracteristics1

-hey want a trusting relationship with a financial professional.

-hey are financially motivated and serious about personal financial success. -hey are active professionals, business owners, or retirees that are accustomed to

delegating their financial matters to competent, trustworthy professionals. -hey are not influenced by the daily ups and downs reported by the financial

media. -hey are sharing people, who li e to help others and who are influential.

-hey enjoy the simplicity of having all of their assets in one place.

-hey understand that having a strategy is important, and stic ing to that strategy

is what ma es it wor .

4iii C"r9"r!'e S"1i!* Re,9"%,i.i*i'8

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"et3ife has always been committed to ma ing a positive difference in the lives of

the individuals and communities. -oday, that commitment drives volunteer wor and

philanthropy across the globe. Wor ing with non)profit organi>ations, "et3ife supports

programs that provide young people with the s ills they need to succeed in life and create

opportunities for people of all ages.

"et3ife#s core values are personal responsibility, people count, partnership, integrity and

honesty, innovation and financial strength. -hese values also shape the responsibility to

the communities where the organi>ation conducts its business.

i: Pr"d)1' r!%$e i% Me'Li#e

In %road sense these are the various types5categories of life insurance policies

available8)

Q ndowment policies8 -his type of policy covers ris for a specified period, and at the

end of the maturity sum assured is paid bac to policyholder with the bonuses during

the term of the policy.

Q"oney bac policies8 -his 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.

QGroup insurance8 -his type of insurance offers life insurance protection under group

policies to various groups such as employers)employees, professionals, co)operatives

etc it also provides insurance coverage for people in certain approved occupations at

the lowest possible premium cost.

Q-erm life insurance policies8 -his type of insurance covers ris only during the

selected term period. If the policy holder survives the term, ris cover comes to an

end. -hese types of policies are for those people who are unable to pay larger



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premium re7uired for endowment and whole life policies. :o surrender, loan or paid

up values are in such policies.

QWhole life insurance policies8 -his type of policy runs as long as the policyholder is

alive and is covered for the entire life of the policyholder. In this policy the insured

amount and the bonus is payable only to nominee on the death of policy holder.

QMoint life insurance policies8 -hese policies are similar to endowment policies in

maturity benefits and ris cover, but joint life policies cover two lives simultaneously

such as married couples. !um assured is payable on the first death and again on the

death of survival during the term of the policy.

QPension plan8 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 income

either for a life or certain period.

Q nit lin ed insurance plan8 3IP is a ind of insurance plan which provides life cover

as well as return on premium paid over a certain period of time. -he investment is

denoted as units and represented by the value called as net asset value ':& +.

Me' B !4i, 8!0 "et3ife offers J"et %havishyaJ ) a guaranteed money bac plan

that pays out funds to help you meet the education and career milestones of your

children. With this plan, the 3ife Insured is that of the parent. -he plan also has

inbuilt guaranteed additions to add value to the policy over its term.

-here are two options to choose from and fi=ed term benefits, periodic additions

6 terminal additions are payable based on the option that you select. -he policy issuitable for parents with children between the ages ()12 and parents in the age

group of 2()A( years old.Re!,"%, '" B)80'( Guaranteed ayouts at critical milestones o! the child)s li!e(

*( Guarantee o! olicy continuance in case o! the untimely demise o!



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arent(

+( Guaranteed ayouts o! *,-./ o! the chosen Sum Assured(

0( /Ta1 &ene"ts as a licable(

Met Junior Endowment: MetLi"e o""ers 'Met 2#nior' - a "le.i0le endo% ent /lan t&at co 0ines

sa in!s and sec#rity Yo#r c&ildren's %ell-0ein! is yo#r &i!&est /riority So %e o""er a /lan %&ic&

o""ers 0ot& ti ely and e""icient 34et#rn on In est ent3 *ll %it& a !#arantee Met 2#nior is a aila0le

in 0ot& /artici/atin! (UIN1556N 5 V 5) as %ell as non-/artici/atin! ersions(UIN1556N 7V 5)

8eat& 9ene"it

Reasons to Buy:

5 *n endo% ent /lan t&at o""ers 0ot& sa in!s and li"e ins#rance

, 8i""erent /re i# /ayin! o/tions to s#it ario#s inco e cycles

: * aila0le in 0ot& /ar and non /ar ersions

; * /lan %&ic& /artici/ates in t&e 0on#ses declared 0y t&e co /any (/ar)

7 e on volatile mar et

conditions

;. nhanced protection with &$% rider.

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*. 3i7uidity with Partial Withdrawals 6 Policy 3oans

A. T-a= %enefits as applicable.

Met Monthly Income Plan - 7 Pay 1 MetLi"e o""ers 'Met Mont&ly Inco e +lan-6 +ay' %&ere yo# are

re=#ired to /ay /re i# only "or 6 years and !et 0ac t&e >#aranteed Mont&ly Inco e t&at yo#

c&oose at ince/tion "or ? years *t t&e end o" t&e ter yo# %ill also !et t&e accr#ed 0on#ses as a

l# / s# * Mont&ly Inco e +lan t&at !#arantees inco e to add to yo#r inco e e ery ont&

0eca#se t&ese days !ro%in! needs de and ore t&an one inco e

Reasons to buy:

5 >et c&osen >#aranteed 4e!#lar Mont&ly Inco e "or ? years i e $ @A ont&s

, Yo# %ill !et accr#ed 0on#ses as a l# /s# at at#rity o" t&e /lan$ i" any: In addition to t&e deat& 0ene"it yo#r "a ily %ill contin#e to !et !#aranteed ont&ly inco e as

sc&ed#led

; Ta. 0ene"its< on 0ot& t&e a o#nt in ested and t&e 0ene"its recei ed #nder Section ? C and

Section 5 (5 )8 B

Me' S)? 0 "et3ife offers "et !u h ) a guaranteed "oney)%ac Policy which

provides guaranteed periodic survival benefits at the end of A, 1(, 1A 6 2( yearsand guaranteed additions of 1(E of the !um &ssured for the entire term. It not

only covers your life, but also guarantees you cash payments at various

milestones along with guaranteed growth of your savings.

Re!,"%, '" .)80

1. Guaranteed !urvival %enefit8 Payment of 2(E of the !um &ssured every year

starting from the Ath year till maturity.

2. Guaranteed "aturity %enefit8

Guaranteed payment of *(E of !um &ssured.

Guaranteed &ddition of 1(E of !um &ssured every year up to maturity.

;. Guaranteed $eath %enefit8 Guaranteed payment of !um &ssured along with

Guaranteed &dditions 'accrued till that time+. -his is paid over and above the



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survival benefit payments already made.

*. Fomprehensive protection by way of * riders.


Me' He!*' C!re0 /ealth problems stri e une=pectedly. In addition to causing ill

health, it can also scar financial health. Hne needs to protect himself against such a

situation through a health insurance plan. In order to ensure you are well protected to

face any health condition that could befall you, "et3ife presents ) "et /ealth Fare, a

simple health insurance policy with uni7ue and smart advantages for you and your

familyR.

'R ation e=penses by providing a $aily Fash benefit as chosen by you.

2. 1( major Fritical Illnesses by providing a lump sum benefit.

;. -otal 6 Permanent $isability due to accident by providing a lump sum benefit.

&ll the above benefits can be availed without the hassle of undergoing any medical

e=amination. Must fill up the simple application form and start enjoying the unmatched

benefits of "et /ealth Fare.

"inimum5"a=imum age of entry

1 years)AA years '&t first entry, for the Principal insured+

; months)AA years '


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Be%e#i', O##ered

'a+ $aily /ospitalisation Fash %enefit

'b+ $aily IF Fash %enefit

'c+ ecuperation %enefit

'd+ Fritical Illness %enefit

'e+ &ccidental -otal 6 Permanent $isability %enefit

Met Mortgage Protector Plus 1 MetLi"e /resents 'Met Mort!a!e +rotector +l#s' a /lan %&ic&

/ro ides yo# li"e co er "or &o e loans ta en "or any /eriod a0o e 7 years It is a decreasin! terins#rance %it& sin!le and li ited /re i# o/tions T&e /lan co ers yo# "or an a o#nt e=#al to t&e

o#tstandin! a o#nt as /er t&e /olicy sc&ed#le It ens#res t&e asset t&at yo# &a e created stays

%it& yo#r "a ily

Reasons to buy:

1. It protects the family against the burden of a loan.

2. It is an affordable insurance plan that covers the ris of life.

;. It provides protection for all ind of loans ta en for a period above A

years.*. 3imited and !ingle premium paying terms.


O' er Ser4i1e, !%d Pr"d)1',0

!toc s and %onds

Fharitable Giving !trategies

I & Fonsolidation5 ollovers "ortgage Protection 'through life insurance and disability income insurance+

3ump !um Pension $istribution

"edicare !upplement Foverage

Pension Payout &lternatives

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Pension -ranser5 ollovers

-a= !heltered &nnuities, *(;'b+ Plans

ariable niversal 3ife Insurance

Hver 2( Kears =perience

: S!*e, Pr"1e,, !' Me'*i#e

7 Pr",9e1'i%$

Generally, the first stage of the technical sales cycle is prospecting. Prospecting is a

process of gathering the names of people you would li e to contact. /ere, your objective

should be to decide which sources to use for building sales contact lists. Hften, the best

place to start is with your e=isting clients because chances are they already now your

product and have an established history of purchasing from your company. Kou may also

consider re)establishing contact with past and inactive clients for the same reasons. Kou

can retrieve names of old, inactive and active clients just by loo ing through your own

companyJs sales records. /owever, developing new lists is also important, to maintain

growth and mar et position. -here are a variety of sources you can use to develop new

lists.

$irectories ) Whether they are for general businesses or speciali>ed industries,

directories are an e=cellent source for gathering new contacts.

Fustomi>ed mailing lists ) If directories are too general or not organi>ed in ways

that ma e it easy for you to e=tract prospect names, you can order your own

customi>ed mailing list from a mailing list bro er. "ailing lists can be generated

for different types of information, i.e. by region, industry, position5title, companysi>e, etc.

P3&:! H< P:% " -3Ied Premiumalong with accrued bonus 'including -erminal %onus+ or 1(AE of

Premium paid till the date of death is paid as $eath %enefit.

Kour annual premium multiplied with the "ultiplier factor is the%ase !um &ssured.

easons to buy81. $ecide the Premium and the payout date of your choice2. Invest and earn more on your savings;. njoy double benefit of Investments and Protection*. njoy ta= benefits on investment and returns.

E@ECUTIVE SUMMARY

In today#s corporate and competitive world, I find that insurance sector has the ma=imum

growth and potential as compared to the other sectors. Insurance has the ma=imumgrowth rate of D() (E while as


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-he success story of good mar et share of different mar et organi>ations depends

upon the availability of the product and services near to the customer, which can

be distributed through a distribution channel. In Insurance sector, distribution

channel includes only agents or agency holders of the company. If a company li e

P:% " -3I< etc have ade7uate agents in the mar et they can capture big

mar et as compared to the other companies.

&gents are the only way for a company of Insurance sector through which

policies and benefits of the company can be e=plained to the customer.

MA OR PLAYERS IN THE INSURANCE INDUSTRY IN INDIAMA OR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA

Li#e I%,)r!%1e C"r9"r!'i"% "# I%di! (LIC/

3ife Insurance Forporation of India '3IF+ was established on 1 !eptember 1 AB to spread

the message of life insurance in the country and mobilise people#s savings for nation)

building activities. 3IF with its central office in "umbai and seven >onal offices at

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"umbai, Falcutta, $elhi, Fhennai, /yderabad, Lanpur and %hopal, operates through 1((

divisional offices in important cities and 2,(* branch offices. 3IF has A.A la h active

agents spread over the country.

-he Forporation also transacts business abroad and has offices in


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Indian and foreign insurers which were operating in the country prior to nationali>ation,

were grouped into four operating companies, namely, 'i+ :ational Insurance Fompany

3imited? 'ii+ :ew India &ssurance Fompany 3imited? 'iii+ Hriental Insurance Fompany

3imited? and 'iv+ nited India Insurance Fompany 3imited. '/owever, with effect from

$ecJ2(((, these subsidiaries have been de)lin ed from the parent company and made as

independent insurance companies+. &ll the above four subsidiaries of GIF operate all

over the country competing with one another and underwriting various classes of general

insurance business e=cept for aviation insurance of national airlines and crop insurance

which is handled by the GIF.

%esides the domestic mar et, the industry is presently operating in 1D countries directly

through branches or agencies and in 1* countries through subsidiary and associate

companies.

IN ADDITION TO ABOVE STATE INSURERS THE FOLLOWING HAVE BEEN

PERMITTED TO ENTER INTO INSURANCE BUSINESS0 -

-he introduction of private players in the industry has added to the colors in the dull

industry. -he initiatives ta en by the private players are very competitive and have given

immense competition to the on time monopoly of the mar et 3IF. !ince the advent of the

private players in the mar et the industry has seen new and innovative steps ta en by the

players in this sector. -he new players have improved the service 7uality of the insurance.

&s a result 3IF down the years have seen the declining phase in its career. -he mar et

share was distributed among the private players. -hough 3IF still holds the DAE of the

insurance sector but the upcoming natures of these private players are enough to give

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more competition to 3IF in the near future. 3IF mar et share has decreased from AE

'2((2)(;+ to 2 E' 2((*)(A+.

7 HDFC S'!%d!rd Li#e I%,)r!%1e C"m9!%8 L'd .

/$


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IFIFI Prudential 3ife Insurance Fompany is a joint venture between IFIFI %an , a

premier financial powerhouse and Prudential plc, a leading international financial

services group head7uartered in the nited Lingdom. IFIFI Prudential was amongst the

first private sector insurance companies to begin operations in $ecember 2((( after

receiving approval from Insurance egulatory $evelopment &uthority 'I $&+. -he

company has a networ of about AB,((( advisors? as well as D banc assurance and 1A(

corporate agent tie)ups.

; Om K"'!? M! i%dr! Li#e I%,)r!%1e C" L'd

Lota "ahindra Hld "utual 3ife Insurance 3td. is a joint venture between Lota

"ahindra %an 3td. 'L"%3+, and Hld "utual plc.

> Bir*! S)% Li#e I%,)r!%1e C"m9!%8 L'd

%irla !un 3ife Insurance Fompany is a joint venture between &ditya %irla Group and !un

3ife financial !ervices of Fanada.

-ata &IG 3ife Insurance Fompany 3td.

!%I 3ife Insurance Fompany 3imited

I:G ysya 3ife Insurance Fompany Private 3imited

&llian> %ajaj 3ife Insurance Fompany 3td.

"etlife India Insurance Fompany Pvt. 3td.

&"P !&:"& &ssurance Fompany 3td.

$abur FG 3ife Insurance Fompany Pvt. 3td.

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7 R"8!* S)%d!r!m A**i!%1e I%,)r!%1e C"m9!%8

-he joint venture bringing together oyal 6 !un &lliance Insurance and !undaram


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IFIFI 3ombard General Insurance Fompany 3imited is a joint venture between IFIFI

%an 3imited and the !)based 2B billion


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-ata &IG General Insurance Fompany, which started its operations in India on Manuary

22, 2((1, offers the complete range of insurance for automobile, home, personal accident,

travel, energy, marine, property and casualty, as well as several speciali>ed financial

lines.

OB ECTIVES OF STUDY

-he main of the present study of is accomplish the following objective.

Proper understanding and analysis of life insurance industry.

-o now about brand awareness of P:% " - 3I< Insurance and

customer#s preference about P:% " - 3ife Insurance.

&ccording the mar et survey come now about how much potential of

insurance mar et in our city.



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&nd base on analysis of the result thus obtained ma e a report on that

research.

-raining aims at recruiting ma=imum number of 3ife &dvisors and to !ell

the ma=imum policies for the company and bring the business for the

company which ever is going at the particular point of time.

&s the P:% " - 3ife Insurance well reputed company in India it#s great

chance for me to observed different products launch by other competitor

companies li e IFIFI prudential, %ajaj alliance ,3IF, "a= :ew Kor life

etc. In all, it is to understand the overall wor ing of the 3ife insurance

sector.

-he objective behind the project is as follows8

-o find the right candidate.

-o about their family bac ground, occupation, social relation,

Vualification, &ge.

R!'i"%!* O# Pr" e1'SCOPE OF THE STUDY

& big boom has been witnessed in Insurance Industry in recent times. & large number of

new players have entered the mar et and are vying to gain mar et share in this rapidly



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improving mar et. -he study deals with eliance in focus and the various segments that

it caters to. -he study then goes on to evaluate and analy>e the findings so as to present a

clear picture of trends in the Insurance sector.

SIGNIFICANCE OF THE STUDY

-his is a limited study which ta es into consideration the responses of 1(( people. -his

data can be e=plorated to ta e in the trends across the industry. -he 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 wa e up to it#s vast possibilities. &

study li e this can attempt to guide the future of the industry based on current trends

RESEARCH METHODOLOGY

TITLE0

Study o! Investor &ehavior To$ard PN& MET li!e Insurance Pa%e *(


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-o determine customer)buying behavior with a focus on mar et segmentation for P:%

" - 3I< .

TITLE USTIFICATION 8

-he above title is self e=planatory. -he study deals mainly with studying the buying

pattern in the insurance industry with a special focus on P:% " - 3I< . -he various

segments of the mar ets divided in terms of Insurance :eeds, &ge groups , !atisfaction

levels etc will also studied.

OB ECTIVE

O. e1'i4e O%e

-o determine reasons behind opting for an insurance.

-o provide the company with information of customerJs Insurance policy if they have

any and reasons for opting for that particular policies.

-o now the most preferred policy.

O. e1'i4e T "

-o determine customers perception towards Government insurance companies and

their e=pectation form Government insurance companies.

-o determine the feedbac on services provided by any other insurance agent.

-o study the types of benefits provided by insurance services.

Study o! Investor &ehavior To$ard PN& MET li!e Insurance Pa%e *1


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-o determine the use of Internet for valuable information and decision)ma ing

process.

.SIGNIFICANE FOR THE RESEARCHER 0

-o facilitate and provide all the useful information of the study, the company, the

insurance industry and also provide mar eting ways, methods of P:% " - 3I< .

RESEARCH DESIGN

NON-PROBABILITY

E@PLORATORY DISCRIPTIVE E@PERIMENTAL RESEARCH

-he research is primarily both e=ploratory as well as descriptive in nature. -he sources of

information are both primary 6 secondary.

& well)structured 7uestionnaire was prepared and personal interviews were conducted to

collect the customer#s perception and buying behavior, through this 7uestionnaire.

SAMPLING METHODOLOGY

S!m9*i%$ Te1 %i2)e0

Initially, a rough draft was prepared eeping in mind the objective of the research. & pilot

study was done in order to now the accuracy of the Vuestionnaire. -he final

Vuestionnaire was arrived only after certain important changes were done. -hus my

sampling came out to be judemental and convinent

Study o! Investor &ehavior To$ard PN& MET li!e Insurance Pa%e *2


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S!m9*i%$ U%i'0

-he respondents who were as ed to fill out 7uestionnaires are the sampling units. -hese

comprise of employees of ":Fs, Govt. mployees, !elf mployeds etc.

S!m9*e ,i&e0

-he sample si>e was restricted to only 1((, which comprised of mainly peoples from

different regions of $elhi due to time constraints.

S!m9*i%$ Are! 0

-he area of the research was :ew $elhi, India.

Study o! Investor &ehavior To$ard PN& MET li!e Insurance Pa%e *;


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MARKETING STRATREGIES OF THE COMPANY

SOME OF THE STRATEGIES ADOPTED BY PNB MET LIFE

COMPANY

P:% " - 3I< plans 2.A)crore telephony subscriber base to mar et its products.

-he company is considering a series of options to leverage its relationship with P:%

" - 3ife

/owever, a joint product or a co)branded solution would re7uire approval from the

Insurance egulatory and $evelopment &uthority

Fustomers of World, the information and entertainment portal of eliance

Fommunications, would also be able to pay premiums through a ban account, provided

the ban is listed on the networ .

P:% " - 3I< officials, however, offered no comment when as ed whether there

would be an arrangement for payment of commission.

&s an alternative channel for distribution, insurance companies usually tie up with ban s.

In the case of banc assurance, where there is a corporate agency tie)up, the commission

could range from A per cent to *( per cent of first)year premium depending on the

commission loaded on to the product at the time of registration with I $&.

Study o! Investor &ehavior To$ard PN& MET li!e Insurance Pa%e *A


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DATA ANALYSIS INTERPRETATION

DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCECOMPANIES

COMPANY S NAME NO OFRESPONDENT SHARE ( /

PNB MET LIFE


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DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY ESPONDENTS

BENEFITS NO OFRESPONDENTS SHARE ( /

Fover


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DATA PROVIDES FEATURES OF INSURANCE POLICY THAT

ATTRACTED RESPONDENTS

FEATURE NO OFRESPONDENTS

SHARE ( /

"oney %ac Guarantee 1A 1A

3arger is Foverance ;D ;D

asy &ccess to &gents D D

3ow Premium ;( ;(

Fompany#s eputation 11 11

-H-&3 1(( 1((

FEA !RE" #F I$"!RA$%E P#&I%'

57D

:6D

6D

55D

:-D

M NEY 9*CK

>U**4ENTEE

L*4>E4 4ISK

C VE4*NCE

E*SY *CCESS T

*>ENTS

L G +4EMIUM

4E+UT*TI N F

C M+*NY

INTERPRETATION

"ajority of the respondent ';DE+ found 3arger ris coverage as the most

attracted feature of the all.

Study o! Investor &ehavior To$ard PN& MET li!e Insurance Pa%e *


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DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE

RESPONDENTS

POLICY TYPE NO OFRESPONDENTS

SHARE ( /

P:% " -3I< DA DA

:H: 3I< PH3IFK 2A 2A

%H-/ *A *A

$A !RE #F P#&I%'

67

,7

;7

LIFE+ LICYN N LIFE+ LICY9 TH

INTERPRETATION

DAE of the respondents have P:% " - 3I< Policy while *AE have both '-he E

is calculated out of 2 ( positive response+

Study o! Investor &ehavior To$ard PN& MET li!e Insurance Pa%e *


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DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE

RESPONSE NO OFRESPONDENTS

SHARE ( /

& saving tool 1 1E

& ta= saving device D* D*E

& tool to protect your family 1(( 1((E

INTERPRETATION

1E of the respondents have perception of Insurance being a saving tool.

&nd D*E of the respondents have perception of Insurance being a ta= saving device.

%ut 1((E of the respondents are with the view that Insurance is a tool to protect

your family.

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DATA SHOWS PEOPLES HAVING INSURANCE


SHARE ( /

Kes D( D(E

:o ;( ;(E

-otal 1(( 1((E

INTERPRETATION

Study o! Investor &ehavior To$ard PN& MET li!e Insurance Pa%e A1

6-D

:-D

'es$o


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Hf the sample si>e of *(( surveyed respondents D(E of the respondents are having

Insurance policy.

;(E of the respondents are either not having any Insurance policy at present or their

policy is already matured.

&nd at present 1((E of the respondents are with the view that Insurance is a tool to

protect your family.

DATA SHOWS BUYING PROCESS OF THE PEOPLE

BUYING PROCESS NO OFRESPONDENTS

SHARE ( /

Fustomer approached Insurancecompany5&gent

*A *AE

Fompany5agent approached

customer

AA AAA

-otal 1(( 1((E

Study o! Investor &ehavior To$ard PN& MET li!e Insurance Pa%e A2

77D;7D

%ustomer a((roached Insurance com(any)Agent

%om(any)agent a((roached customer


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INTERPRETATION

**.AE of the respondents approached the P:% " - 3ife Insurance &gent.

Whereas, AA.AE of the respondents were approached by the Fompany 5&gent.

DATA SHOWS REASONS BEHIND FOR INSURANCE


SHARE ( /

-a= saving ( (E

!aving 5 Investment ( (.E


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(.D1E of the espondents opted for saving 5 Investments.

%ut all of them, i.e. 1((E of the respondents have opted for insurance for their

family protection.

DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TOPOLICY


SHARE ( /

!atisfied B( B(E

:ot satisfied *( *(E

:ot esponded ( (.(E

-otal 1(( 1((E

INTERPRETATION

B(E of the respondents are more or less satisfied with their e=isting policy.

Study o! Investor &ehavior To$ard PN& MET li!e Insurance Pa%e A*

-D

;-D

A-D

"atis-ied $ot satis-ied $ot Res(onded


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*(E of the respondents are not satisfied with their e=isting policy.

In this case all of those who have ta en a policy have responded.

Study o! Investor &ehavior To$ard PN& MET li!e Insurance Pa%e AA


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CHAPTER VI

CONCLUSION

Hur e=haustive research in the field of Insurance threw up some interesting trends which

can be seen in the above analysis. & general impression that we gathered during $ata

collection was the immense awareness and nowledge among people about various

companies and their insurance products. People are beginning to loo beyond 3IF for

their insurance needs and are willing to trust private players with their hard earned

money.

People in general have been impression by the mar eting and advertising campaigns of

insurance companies. & high penetration of print , radio and -elevision ad campaigns

over the years is beginning to have it#s impact now.

-he general satisfaction levels among public with regards to policy and agents still

re7uires improvement. %ut therein lays the opportunity for a relative new comer li e

I:G. 3IF has never been nown for prompt service or customer oriented methods and

eliance can build on these factors.

Study o! Investor &ehavior To$ard PN& MET li!e Insurance Pa%e AB


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S)$$e,'i"%

&ccording the survey only *2E people are insured in $ehradun so

reaming other part is potential for insurance sector.

&mong that *2E people who having insurance, they have insurance *(E

for self 2 Efor spouse 21E for children and 1 E for their parents and

11E for all family member, also its very help full for insurance sector so

they should ta e necessary step for capture this potential.

Hnly *2E people having insurance in $ehradun in that *2E there are

2 E people are under insured and other 1 E people are fully insured

according to their income so that is also plus point for insurance sector to

capture the mar et

Study o! Investor &ehavior To$ard PN& MET li!e Insurance Pa%e AD


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BIBLIOGRAPHY

7 BOOKS MAGA INES REFFERED0

!- $K G I$ ) P I:FI3 ! 6 P &F-IF ! H< 3I< 5

G : &3I:! &:F , by &I"&.

%oo s published by I:! &:F I:!-I- - H< I:$I&

3I< )I:! &:F , by "c GI33

Study o! Investor &ehavior To$ard PN& MET li!e Insurance Pa%e A


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I:! &:F W&-F/.

"H: KH -3HHL.

5 WEBSITES REFFERED0

WWW.P:%" -3I< .FH.I:

WWW CIFAINSURANCE COM

WWW MONEYOUTLOOK COM

WWW INSURANCE IND COM

3 REPORTS ARTICLES REFFERED0

PH -8 I!! ! 6 F/&33 :G !


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UESTIONNAIRE

DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCECOMPANIES

COMPANY S NAME NO OFRESPONDENT SHARE ( /

PNB MET LIFE


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3ow Premium ;( ;(Fompany#s eputation 11 11-H-&3 1(( 1((

DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE

RESPONDENTS

POLICY TYPE NO OFRESPONDENTS

SHARE ( /

P:% " -3I< DA DA

:H: 3I< PH3IFK 2A 2A

%H-/ *A *A

DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE

RESPONSE NO OFRESPONDENTS SHARE ( /

& saving tool 1 1E

& ta= saving device D* D*E

& tool to protect your family 1(( 1((E

DATA SHOWS PEOPLES HAVING INSURANCE


SHARE ( /

Kes D( D(E

:o ;( ;(E

Study o! Investor &ehavior To$ard PN& MET li!e Insurance Pa%e B1


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DATA SHOWS BUYING PROCESS OF THE PEOPLE

BUYING PROCESS NO OFRESPONDENTS

SHARE ( /

Fustomer approached Insurancecompany5&gent

*A *AE

Fompany5agent approachedcustomer

AA AAA

-otal 1(( 1((E

DATA SHOWS REASONS BEHIND FOR INSURANCE


SHARE ( /

-a= saving ( (E

!aving 5 Investment ( (.E


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!atisfied B( B(E

:ot satisfied *( *(E

:ot esponded ( (.(E

-otal 1(( 1((E

investor behaiour toward pnb met life ife insurance policies amit singh

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