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A

PROJECT REPORT

ON

Potential of Life Insurance and motivational techniques in

Chandigarh

At

A Project Report Submitted In

Fulfillment of MBA Degree

Submitted By: -

Submitted To:-

Anoop Ohri

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CONTENTS

PARTICULARS Page No.

AcknowledgementExecutive Summary

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Introduction

Introduction of the Industry

Life Insurance

Function of insurance

Players in Indian insurance industry

Seven ps of insurance industry

Various types of Life Insurance Policies

Introduction of the Company

Company Profile

Vision and mission

Values

Management

partners

Insurance Plans/Products

S.W.O.T analysis

(7-24)

7101316

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25272829303250

Research Methodology

Objective

Scope of study

Sampling Methodology

Limitations

(54-59)55565759

Survey Graph Analysis & Data Interpretation

(60-81)61

Findings & recommendations

Findings & Recommendations

Growth Potential

Conclusion

(82-84)828384

Bibliography (85)

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Annexure

Questionnaire

(86-87)87

LIST OF GRAPHS

Particulars PageNo.

[Fig 1] No of People Having Insurance

[Fig 2] Types of Insurance Policy Respondents Have

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[Fig 3]Preferance of Respondents of Insurance Cos

[Fig 4] Benefits of Insurance Perceived by Respondents

[Fig 5]Features of Insurance Policy That Attracted Respondents

[Fig 6] Peoples Perception About Insurance

[Fig 7] Persons Having Insurance For

[Fig 8] Reasons Behind Taking Insurance Policies

[Fig 9] Satisfaction of Respondents With Respect to Policies

[Fig 10] Satisfaction of Respondents With Respect to Agents

[Fig 11] No of Respondents Paying Tax

[Fig 12] Respondents Perception About Best Form of Investment

[Fig 13] Peoples Perception of Appropriate Age For Buying Insurance

[Fig 14] Peoples Opinion About Insurance Companies in India

[Fig 15] What People Look For in Insurance Companies

[Fig 16] People Interested In Going For Insurance Away From TheirCity

[Fig 17] People Planning For New Investment

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EXECUTIVE SUMMARY

In todays corporate and competitive world, I find that insurance sector has the

maximum growth and potential as compared to the other sectors. Insurance has the

maximum growth rate of 70-80% while as FMCG sector has maximum 12-15% of

growth rate. This growth potential attracts me to enter in this sector and MET LIFE

INDIA INSURANCE CO. LTD. has given me the opportunity to work and get

experience in highly competitive and enhancing sector.

The success story of good market share of different organizations depends

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

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

distribution channel includes only agents or agency holders of the company.

If a company like MET LIFE INDIA INSURANCE CO. LTD, MAX NEW

YORK LIFE, ICICI, TATA AIG, etc has adequate agents in the market they

can capture big market as compared to the other companies.

Agents are the best way for a company of Insurance sector through which

policies and benefits of the company can be explained to the customer.

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5

INTRODUCTION

Introduction of the Industry

Players in Indian insurance industry

7ps of Insurance industry

Introduction of the Company Company Profile

Vision and mission

Core value

Management

Insurance Plans


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THE HISTORY OF INDIAN INSURANCE INDUSTRY

The story of insurance is probably as old as the story of mankind. The same

instinct that prompts modern businessmen today to secure themselves against lossand disaster existed in primitive men also. They too sought to avert the evil

consequences of fire and flood and loss of life and were willing to make some sort

of sacrifice in order to achieve security. Though the concept of insurance is largely

a development of the recent past, particularly after the industrial era past few

centuries yet its beginnings date back almost 6000 years.

Life Insurance

In 1818 the British established the first insurance company in India in Calcutta, the

Oriental Life Insurance Company. First attempts at regulation of the industry were

made with the introduction of the Indian Life Assurance Companies Act in 1912. A

number of amendments to this Act were made until the Insurance Act was drawn

up in 1938. Noteworthy features in the Act were the power given to the

Government to collect statistical information about the insured and the high level

of protection the Act gave to the public through regulation and control. When the

Act was changed in 1950, this meant far reaching changes in the industry. The

extra requirements included a statutory requirement of a certain level of equity

capital, a ceiling on share holdings in such companies to prevent dominant control

(to protect the public from any adversarial policies from one single party), stricter

control on investments and, generally, much tighter control. In 1956, the market

contained 154 Indian and 16 foreign life insurance companies. Business was

heavily concentrated in urban areas and targeted the higher echelons of society.

Unethical practices adopted by some of the players against the interests of the

consumers then led the Indian government to nationalize the industry. InSeptember 1956, nationalization was completed, merging all these companies into

the Life Insurance Corporation (LIC). It was felt that nationalization has lent the

industry fairness, solidity, growth and reach.

Insurance may be described as a social device to ensure protection of

economic value of life and other assets. Under the plan of insurance, a

large number of people associate themselves by sharing risks attached to

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individuals. The risks, which can be insured against, include fire, the perils

of sea, death and accidents and burglary. Any risk contingent upon these,

may be insured against at a premium commensurate with the risk involved.

Thus collective bearing of risk is insurance.

Insurance is a contract whereby, in return for the payment of premium by

the insured, the insurers pay the financial losses suffered by the insured as

a result of the occurrence of unforeseen events. The term "risk" is used to

describe the possibility of adverse results flowing from any occurrence or

the accidental happenings, which produce a monetary loss.

Insurance is a pool in which a large number of people exposed to a similar

risk make contributions to a common fund out of which the losses suffered

by the unfortunate few, due to accidental events, are made good. The

sharing of risk among large groups of people is the basis of insurance. The

losses of an individual are distributed over a group of individuals.

Definitions:

General definition:

In the words of John Magee, Insurance is a plan by themselves which large

number of people associate and transfer to the shoulders of all, risks that attach to

individuals.

Fundamental definition:

In the words of D.S. Hansell, Insurance accumulated contributions of all

parties participating in the scheme.

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Contractual definition: In the words of justice Tindall, Insurance is a

contract in which a sum of money is paid to the assured as consideration of

insurers incurring the risk of paying a large sum upon a given contingency.

Characteristics of insurance

Sharing of risks

Cooperative device

Evaluation of risk

Payment on happening of a special event

The amount of payment depends on the nature of losses incurred.

The success of insurance business depends on the large number of

people insured against similar risk.

Insurance is a plan, which spreads the risk and losses of few people

among a large number of people.

The insurance is a plan in which the insured transfers his risk on the

insurer.

Insurance is a legal contract which is based upon certain principles of

insurance which includes, utmost good faith, insurable interest,

contribution, indemnity, causas proxima, subrogation, etc.

The scope of insurance is much wider and extensive.

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Functions of insurance:

Primary functions:

1. Provide protection:- Insurance cannot check the happening of the risk,

but can provide for the losses of risk.

2. Collective bearing of risk: - Insurance is a device to share the financial

losses of few among many others.

3. Assessment of risk: - Insurance determines the probable volume of risk

by evaluating various factors that give rise to risk.

4. Provide certainty: - Insurance is a device, which helps to change from

uncertainty to certainty.

Secondary functions:

1. Prevention of losses: - Insurance cautions businessman and individuals

to adopt suitable device to prevent unfortunate consequences of risk byobserving safety instructions.

2. Small capital to cover large risks: - Insurance relives the businessman

from security investment, by paying small amount of insurance against

larger risks and uncertainty.

3. Contributes towards development of larger industries.

.

Insurance companies have two sources of income for covering these

costs: Premiums and Investment income. The premiums are collected on

a regular basis and invested in Government Bonds, Gilt, stocks, mutual

funds, real estates and other conservative avenues. However, investment

income depends on market conditions, interest rates, economy etc. and

varies from year to year. Because of the uncertainty associated with the

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investment income, insurance companies must generate enough income

from premiums to cover the bulk of their expenses.

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

1818 : Oriental Life Insurance Company, the first life insurance company onIndian soil started functioning.

1870 : Bombay Mutual Life Assurance Society, the first Indian life 'Insurance

company started 'Its business,

1912 : The Indian Life Assurance Companies Act enacted as the first statute toregulate the life 'Insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government toCollect statistical 'Information about both life and non life insurance businesses.

1938 : Earlier legislation consolidated and amended to by the Insurance Act withthe objective of protecting the 'Interests of the insuring pubic.

1956 : 245 Indian and foreign insurance and provident societies are taken over by

the central government and nationalized. LIC formed by an Act of Parliament, viz.

LIC Act, 1956, with a capital contribution of Rs. 5 chores from the Government of

India.

Liberalization of Indian Insurance

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1994: Insurance sector invited private participation to induce a spirit of

competition amongst the various insurers and. to provide a choice to the

consumers.

1997: Insurance regulator IRDA was set up as there felt the Feed:

To set up an independent regulatory body, that provides greater autonomy toinsurance companies in order to improve their performance, In the first year of

insurance market liberalization (2001) as much as 16 private sector companies

including joint ventures with leading foreign insurance companies have entered the

Indian insurance sector. Of this, 10 were under the life insurance category and six

under general insurance. Thus in all there are 25 players (12-life insurance and l3-

general insurance) in the Indian insurance industry till date.

PLAYERS IN INDIAN INSURANCE INDUSTRY

6.1 LIFE INSURERS

Insurance industry, as on 1.4.2000, comprised mainly two players: the state

insurers:

Life Insurance Corporation of India (LIC)

6.2 GENERAL INSURERS:

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General Insurance Corporation of India (GIC) (with effect from

Dec'2000, a National Reinsure)

GIC had four subsidiary companies, namely ( with effect from Dec'2000,

these subsidaries have been de-linked from the parent company and made

as independent insurance companies.

1. The Oriental Insurance Company Limited

2. The New India Assurance Company Limited,

3. National Insurance Company Limited

4. United India Insurance Company Limited.

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Yr: 2000-2007: Insurance Industry in the year 2000-2001 had 15 new

entrants, namely:

Life Insurers:

S.No. Name of the Company

1 Max New York Life Insurance Co. Ltd.

2 HDFC Standard Life Insurance Company Ltd.

3 ICICI Prudential Life Insurance Company Ltd.

4 Om Kotak Mahindra Life Insurance Co. Ltd.

5 Birla Sun Life Insurance Company Ltd.

6 Tata AIG Life Insurance Company Ltd.

7 SBI Life Insurance Company Limited

8 ING Vysya Life Insurance Company Private Limited

9 Allianz Bajaj Life Insurance Company Ltd.

10 Metlife India Insurance Company Pvt. Ltd.

11 Reliance Life Insurance Company Ltd.

12 Shriram Life Insurance Company Ltd.

13 Sahara India Life Insurance Company Ltd.

14 Bharti AXA Life Insurance Company Ltd.

15 Aviva Life Insurance Company Ltd.

General Insurers:

S.No. Name of the Company

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1 Royal Sundaram Alliance Insurance Company Limited

2 Reliance General Insurance Company Limited.

3 IFFCO Tokio General Insurance Co. Ltd

4 TATA AIG General Insurance Company Ltd.

5 Bajaj Allianz General Insurance Company Limited

6 ICICI Lombard General Insurance Company Limited.

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SEVEN Ps OF INSURANCE SECTOR:

7 Ps Of Insurance Sector

Product PricingPromotions

Place

People Process

PhysicalEvidence

Wherever there is uncertainty there is risk. We do not have any control over

uncertainties which involves financial losses. The risks may be certain events like death,

pension, retirement or uncertain events like theft, fire, accident, etc.

Insurance is a financial service for collecting the savings of the public and providing

them with risk coverage. The main function of Insurance is to provide protection against

the possible chances of generating losses. It eliminates worries and miseries of losses by

destruction of property and death. It also provides capital to the society as the funds

accumulated were invested in productive heads. Insurance comes under the service

sector and while marketing this service, due care is to be taken in quality product andcustomer satisfaction. While marketing the services, it is also pertinent that they think

about the innovative promotional measures. It is not sufficient that you perform well

but it is also important that you let others know about the quality of your positive

contributions. The creativity in the promotional measures is the need of the hour. The

advertisement, public relations, word of mouth communication needs due care and

personal selling requires intensive care.

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INSURANCE MARKETING: The term Insurance Marketing refers to the marketing of

Insurance services with the aim to create customer and generate profit through customer

satisfaction. The Insurance Marketing focuses on the formulation of an ideal mix for

Insurance business so that the Insurance organisation survives and thrives in the right

perspective.

MARKETING --MIX FOR INSURANCE COMPANIES: The marketing mix is the

combination of marketing activities that an organisation engages in so as to best meet

the needs of its targeted market. The Insurance business deals in selling services

and therefore due weight-age in the formation of marketing mix for the Insurance

business is needed. The marketing mix includes sub-mixes of the 7 P's of marketing i.e.

the product, its price, place, promotion, people, process & physical attraction. The above

mentioned 7 P's can be used for marketing of Insurance products, in the following

manner:

1.Product:

A product means what we produce. If we produce goods, it means tangible product and

when we produce or generate services, it means intangible service product. A product is

both what a seller has to sell and a buyer has to buy. Thus, an Insurance company sells

services and therefore services are their product.

In India, the Life Insurance Corporation of India (LIC) and the General Insurance

Corporation (GIC) are the two leading companies offering insurance services to the

users. Apart from offering life insurance policies, they also offer underwriting and

consulting services. When a person or an organisation buys an Insurance policy from theinsurance company, he not only buys a policy, but along with it the assistance and

advice of the agent, the prestige of the insurance company and the facilities of claims

and compensation. It is natural that the users expect a reasonable return for their

investment and the insurance companies want to maximize their profitability. Hence,

while deciding the product portfolio or the product-mix, the services or the schemes

should be motivational. The Group Insurance scheme is required to be promoted, the

Crop Insurance is required to be expanded and the new schemes and policies for the

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villagers or the rural population are to be included. The Life Insurance Corporation has

intensified efforts to promote urban savings, but as far as rural savings are concerned, it

is not that impressive. The introduction of Rural Career Agents Scheme

has been found instrumental in inducing the rural prospects but the process is at infant

stage and requires more professional excellence. The policy makers are required to

activate the efforts. It would be prudent that the LIC is allowed to pursue a policy of

direct investment for rural development. Investment in Government securities should be

stopped and the investment should be channelized in private sector for maximizing

profits. In short, the formulation of product-mix should be in the face of innovative

product strategy. While initiating the innovative process it is necessary to take into

consideration the strategies adopted by private and foreign insurance companies.

2. Pricing:

In the insurance business the pricing decisions are concerned with:

i) The premium charged against the policies,

ii) Interest charged for defaulting the payment of premium and credit facility, and

iii) Commission charged for underwriting and consultancy activities. With a view of

influencing the target market or prospects the formulation of pricing strategy

becomes significant. In a developing country like India where the disposable income in

the hands of prospects is low, the pricing decision also governs the transformation of

potential policyholders into actual policyholders. The strategies may be high or low

pricing keeping in view the level or standard of customers or the policyholders. The

pricing in insurance is in the form of premium rates. The three main factors used fordetermining the premium rates under a life insurance plan are mortality, expense and

interest. The premium rates are revised if there are any significant changes in any of

these factors.

Mortality (deaths in a particular area): When deciding upon the pricing strategy the

average rate of mortality is one of the main considerations. In a country like South

Africa the threat to life is very important as it is played by host of diseases.

Expenses: The cost of processing, commission to agents, reinsurance companies as

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well as registration are all incorporated into the cost of installments and premium sum

and forms the integral part of the pricing strategy

Interest: The rate of interest is one of the major factors which determines people's

willingness to invest in insurance. People would not be willing to put their funds to

invest in insurance business if the interest rates provided by the banks or other financial

instruments are much greater than the perceived returns from the insurance premiums.

3. Place:

This component of the marketing mix is related to two important facets --

i) Managing the insurance personnel, and

ii) Locating a branch. The management of agents and insurance personnel is found

significant with the viewpoint of maintaining the norms for offering the services. This is

also to process the services to the end user in such a way that a gap between the

services- promised and services -- offered is bridged over. In a majority of the service

generating organizations, such a gap is found existent, which has been instrumental in

making worse the image problem. The transformation of potential policyholders to the

actual policyholders is a difficult task that depends upon the professional excellence of

the personnel. The agents and the rural career agents acting as a link, lack

professionalism. The front-line staff and the branch managers also are found not

assigning due weight-age to the degeneration process. The insurance personnel if not

managed properly would make all efforts insensitive. Even if the policy makers make

provision for the quality upgrading the promised services hardly reach to the end users.

It is also essential that they have rural orientation and are well aware of the lifestyles of

the prospects or users. They are required to be given adequate incentives to show their

excellence. While recruiting agents, the branch managers need to prefer local persons

and provide them training and conduct seminars. In addition to the agents, the front-line

staff also needs an intensive training program to focus mainly on behavioral

management. Another important dimension to the Place Mix is related to the location of

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the insurance branches. While locating branches, the branch manager needs to consider a

number of factors, such as smooth accessibility, availability of infrastructural facilities

and the management of branch offices and premises. In addition it is also significant to

provide safety measures and also factors like office furnishing, civic amenities and

facilities, parking facilities and interior office decoration should be given proper

attention. Thus the place management of insurance branch offices needs a new vision,

distinct approach and an innovative style. This is essential to make the work place

conducive, attractive and proactive for the generation of efficiency among employees.

The branch managers need professional excellence

to make place decisions productive.

4. Promotion:

The insurance services depend on effective promotional measures. In a country like

India, the rate of illiteracy is very high and the rural economy has dominance in the

national economy. It is essential to have both personal and impersonal promotion

strategies. In promoting insurance business, the agents and the rural career agents play

an important role. Due attention should be given in selecting the promotional tools for

agents and rural career agents and even for the branch managers and front line staff.

They also have to be given proper training in order to create impulse buying.

Advertising and Publicity, organisation of conferences and seminars, incentive to

policyholders are impersonal communication. Arranging Kirtans, exhibitions,

participation in fairs and festivals, rural wall paintings and publicity drive through the

mobile publicity van units would be effective in creating the impulse buying and the

rural prospects would be easily transformed into actual policyholders.

5. People:

Understanding the customer better allows to design appropriate products. Being a

service industry which involves a high level of people interaction, it is very important to

use this resource efficiently in order to satisfy customers. Training, development and

strong relationships with intermediaries are the key areas to be kept under consideration.

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Training the employees, use of IT for efficiency, both at the staff and agent level, is one

of the important areas to look into.

6. Process:

The process should be customer friendly in insurance industry. The speed and accuracy

of payment is of great importance. The processing method should be easy and

convenient to the customers. Installment schemes should be streamlined to cater to the

ever growing demands of the customers. IT & Data Warehousing will smoothen the

process flow. IT will help in servicing large no. of customers efficiently and bring down

overheads. Technology can either complement or supplement the channels of

distribution cost effectively. It can also help to improve customer service levels. The use

of data warehousing management and mining will help to find out the profitability and

potential of various customers product segments.

7. Physical evidence:

Distribution is a key determinant of success for all insurance companies. Today, the

nationalized insurers have a large reach and presence in India. Building a distributionnetwork is very expensive and time consuming. If the insurers are willing to take advantage

of India's large population and reach a profitable mass of customers, then new distribution

avenues and alliances will be necessary. Initially insurance was looked upon as a complex

product with a high advice and service component.

Buyers prefer a face-to-face interaction and they place a high premium on brand names

and reliability. As the awareness increases, the product becomes simpler and they become

off-the-shelf commodity products. Today, various intermediaries, not necessarily insurance

companies, are selling insurance. For example, in UK, retailer like Marks & Spencer sells

insurance products. The financial services industries have successfully used remote

distribution channels such as telephone or internet so as to reach more customers, avoid

intermediaries, bring down overheads and increase profitability. A good example is UK

insurer Direct Line. It relied on telephone sales and low pricing. Today, it is one of the

largest motor insurance operator.

Technology will not replace a distribution network though it will offer advantages like

better customer service. Finance companies and banks can emerge as an attractive

distribution channel for insurance in India. In Netherlands, financial services firms provide

an entire range of products including bank accounts, motor, home and life insurance and

pensions. In France, half of the life insurance sales are made through banks. In India also,

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banks hope to maximize expensive existing networks by selling a range of products. It is

anticipated that rather than formal ownership arrangements, a loose network of alliance

between insurers and banks will emerge, popularly known as bancassurance.

Another innovative distribution channel that could be used are the non-financial

organizations. For an example, insurance for consumer items like fridge and TV can beoffered at the point of sale. This increases the likelihood of insurance sales. Alliances with

manufacturers or retailers of consumer goods will be possible and insurance can be one of

the various incentives offered

Various types of life insurance policies:-

Endowment policies: This type of policy covers risk for a specified period,

and at the end of the maturity sum assured is paid back to policyholder with

the bonuses during the term of the policy. Money back policies: This type of policy is for periodic payments of partial

survival benefits during the term of the policy as long as the policy holder is

alive.

Group insurance: This type of insurance offers life insurance protection

under group policies to various groups such as employers-employees,

professionals, co-operatives etc it also provides insurance coverage for

people in certain approved occupations at the lowest possible premium cost.

Term life insurance policies: This type of insurance covers risk onlyduring the selected term period. If the policy holder survives the term, risk

cover comes to an end. These types of policies are for those people who are

unable to pay larger premium required for endowment and whole life

policies. No surrender, loan or paid up values are in such policies.

Whole life insurance policies: This type of policy runs as long as the

policyholder is alive and is covered for the entire life of the policyholder. Inthis policy the insured amount and the bonus is payable only to nominee on

the death of policy holder.

Joint life insurance policies: These policies are similar to endowment

policies in maturity benefits and risk cover, but joint life policies cover two

lives simultaneously such as married couples. Sum assured is payable on the

first death and again on the death of survival during the term of the policy.

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Pension plan: a pension plan or annuity is an investment over a certain

number of years but does not provide any life insurance cover. It offers a

guaranteed income either for a life or certain period.

Unit linked insurance plan: ULIP is a kind of insurance plan which

provides life cover as well as return on premium paid over a certain period

of time. The investment is denoted as units and represented by the value

called as net asset value (NAV).

COMPANY PROFILE

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MetLife Begins

Organized by a group of New York City businessmen in 1863, the National Union Life and Limb Insurance

Company began business in July 1864 insuring Civil War sailors and soldiers against wartime-related

disabilities. It was a difficult beginning. By the end of 1864, National Union had written only 17 life and 56accident policies, and was in last place among the 27 life companies operating in New York State and was

running a deficit of $1,400.

After five difficult years in business and several reorganizations and name changes, President James R.

Dow, (a medical doctor) and the board of directors decided to drop the casualty business and focus solely

on life insurance business. And so began Metropolitan Life Insurance Company.

When MetLife opened for business on March 24, 1868 (selling a small number of policies on that date) the

telephone had not yet been invented and electric lights were still uncommon. The population of the United

States was approximately 37 million, and there were 37 states in the country. The companys first home

office consisted of two rooms enough space for its six employees.

This new venture also faced difficulties. A severe business depression that began in the early 1870s rapidly

put half of the 70 life insurance companies operating in New York State out of business. Only very large,

long-established ordinary life insurance companies remained strong. Policy lapses over successive years

forced the company to contract until it reached its lowest point in the late 1870s.

In 1879, MetLife President Joseph F. Knapp turned his attention to England, where "industrial" or

"workingmen's" insurance programs were widely successful. American companies had not bothered to

pursue industrial insurance up to that time because of the expense involved in building and sustaining an

agency force to sell policies door to door and to make the weekly collection of five- or ten-cent premiums.

By importing English agents to train an American agency force, MetLife quickly transferred successful

British methods for use in the United States. By 1880, the company was signing up 700 new industrial

policies a day. Rapidly increasing volume quickly drove down distribution costs, and the new program

proved immediately successful.

The MetLife agent became an important person in the lives of these striving families. Manuals instructed

agents to call at a home at the same time each week to ensure familiarity and contact. In the process of

collecting premiums, insurance agents listened to the problems, concerns, and hopes of their clients. So

successful was this approach that by 1909, MetLife became the nation's largest life insurer in terms of

insurance in force, a leadership position we continue to hold today in North America

Helping and Healing People

In 1909, MetLife Vice President Haley Fiske announced that "insurance, not merely as a business

proposition, but as a social program," would be the future policy of the company. As a first step, Fiske hired

the pioneering industrial social worker Lee Frankel to work at MetLife. Frankel envisioned insurance as a

powerful means toward improving the lot of the underprivileged. To this end, he established MetLife's

Welfare Division.

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Frankel's early work centered on the prevention of tuberculosis, the 'white plague'

responsible for 20 percent of all death claims. Public education was the key. In 1909, 10,000 MetLife agents

delivered Frankel's pamphlet 'A War Upon Consumption' to millions of urban poor, whowere most at risk

for tuberculosis. This document was the first of an ongoing series of MetLife health publications; by 1929,

the company was distributing more than 50 million such brochures and pamphlets a year.

The Welfare Division's most visible and memorable program was the Metropolitan Life Visiting NurseService. Lillian Wald, noted social reformer and director of the Henry Street Settlement on Manhattan's

Lower East Side, had issued a challenge to Frankel to integrate MetLife's business objective - to insure

America's workers - with a larger humanitarian perspective. He responded with a program that mobilized

Henry Street nurses to visit acutely ill industrial policy holders. The service began in 1909 with a three

month experiment on New York City's West Side that was later extended throughout the five boroughs.

Insurance agents, who had day-to-day contact with the insured, urged policyholders to report illnesses at

the earliest possible opportunity and left cards with information identifying the closest visiting nurse. The

New York City program became a model for urban health reform, which MetLife then expanded to 13 other

cities.

The company's vigorous public health campaign, conducted through its agents, was the largest such

endeavor launched by a public or private entity. For nearly a half century, approximately 20 million

policyholders in more than 7,000 cities and towns in the U.S. and Canada received free nursing care. At its

peak of service in 1935, 35 out of 1,000 policyholders were treated for illnesses such as diphtheria,

influenza, smallpox, and tuberculosis.

MetLife Today

MetLifes corporate vision to build financial freedom for everyone guides the companys response to

peoples growing need for first-rate financial products and services through various life stages and economic

cycles. MetLifes trusted brand, capital strength, and existing relationships with millions of individual and

institutional customers around the globe uniquely position MetLife among its competitors.

The "everyone" in MetLifes vision took on added meaning in 2000 as the company welcomed an important

new constituency: shareholders. MetLife transformed itself from mutual to stock ownership in April of that

year through a demutualization and initial public offering that was completed in just 18 months after Board

authorization.

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The year 2001 was a true test of the qualities that define MetLife. The companys core values, brought to life

in what MetLife does every day, were no more evident than in MetLifes response to the tragic events that

shook our nation on September 11. MetLife responded quickly. The company served its customers,

communities and employees during this difficult time. At the same time, MetLife invested $1 billion in a

broad array of publicly-traded common stocks.

In 2001, MetLife was the first insurance company to establish a financial holding company with a nationally

chartered bank. Leveraging its unparalleled distribution channels, MetLife entered the retail-banking arena

with the launch of MetLife Bank, making it an easy and convenient way for MetLifes customers to realize

their financial goals.

MetLife announced in 2002 that it would be continuing its long-standing relationship with Snoopy and the

rest of the PEANUTS characters. The company signed a new contract that would allow the characters to

appear in MetLifes domestic and international advertising for the next 10 years.

The sale of State Street Research & Management Company to BlackRock, Inc. was announced in 2004. In

line with MetLifes strategy to focus on core business growth, the sale benefited many of the companys

Individual and Institutional Business clients who held investments through State Street Research, as it

became part of one of the largest publicly traded investment management firms in the U.S.

The companys stated long-term goal is to become the recognized leader throughout the world for

relationship building, connectedness and caring in financial services in the "giant league" with over 100

million people as MetLife customers by the year 2010.

MetLife took a major step toward realizing this goal in 2005, when it acquired Travelers Life & Annuity and

substantially all of Citigroups international insurance businesses for $12 billion. Completed on July 1, 2005,

the Travelers acquisition made MetLife the largest individual life insurer in North America based on sales,

the second largest provider of retail annuities and the largest provider of institutional annuities.

Working Mothermagazine honored MetLife in 2005 by naming the company one of the "100 Best

Companies for Working Mothers," for the seventh consecutive year. In 2005, the company was named toDiversityInc.s list of the Top 50 Companies for Diversity. In early 2006, MetLife was also named to the

National Association for Female Executives annual list of Top 30 Companies for Executive Women.

In 2006, MetLife appointed C. Robert (Rob) Henrikson chairman of the board of directors, president and

chief executive officer of MetLife, Inc. Henrikson was appointed CEO on March 1, 2006 and chairman of the

board on April 25, 2006.

Henrikson has been the architect of an aggressive growth strategy that included double-digit organic

growth, the divestiture of non-core businesses, and an M&A strategy which resulted in market leadership in

MetLifes core product lines. Before it was commonly talked about, Henrikson recognized the opportunities

presented by the changing demographics in a global marketplace and set the company on a course for

continued success by developing innovative products and services and strengthening the companysdistribution power in the U.S., Japan, Latin America, Asia Pacific, Europe and the Middle East.

Today, a time when consumers are feeling a greater financial burden than ever before, MetLife is helping

millions of customers create their own personal safety net. At no time in the companys history has MetLife

been as well positioned to capitalize on its history, its reputation for security and stability, and its innovative

products and services as it is today.

In the future, MetLife will continue to grow its business with focus, innovation and profitability. This will be

accomplished by drawing on the reservoir of history that has produced an enduring set of corporate values

based on more than 140 years of integrity, social responsibility, strong leadership and financial strength.

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MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife,

Inc. and was incorporated as a joint venture between MetLife International

Holdings, Inc., The Jammu and Kashmir Bank, M. Pallonji and Co. Private

Limited and other private investors. MetLife is one of the fastest growing life

insurance companies in the country. It serves its customers by offering a range of

innovative products to individuals and group customers at more than 600 locations

through its bank partners and company-owned offices. MetLife has more than

50,000 Financial Advisors, who help customers achieve peace of mind across the

length and breadth of the country.

MetLife, Inc., through its affiliates, reaches more than 70 million customers in the

Americas, Asia Pacific and Europe. Affiliated companies, outside of India, include

the number one life insurer in the United States (based on life insurance enforce),

with over 140 years of experience and relationships with more than 90 of the top

one hundred FORTUNE 500 companies. The MetLife companies offer life

insurance, annuities, automobile and home insurance, retail banking and other

financial services to individuals, as well as group insurance, reinsurance and

retirement and savings products and services to corporations and other institutions.

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MetLife Inc.:-

Celebrating 140 years, MetLife, Inc. is a leading provider of insurance and

financial services with operations throughout the United States and the Latin

America, Europe, and Asia Pacific regions. Through its domestic andinternationalsubsidiaries and affiliates, MetLife, Inc. reaches more than 70 million customers

around the world and MetLife is the largest life insurer in the United States (based

on life insurance in-force).

The MetLife companies offer life insurance, annuities, auto and home insurance,

retail banking and other financial services to individuals, as well as group

insurance and retirement & savings products and services to corporations and other

institutions.

FACT SHEET

Founded 2001

Started Operation FY 2001-02

Headquarters Bangalore, India

World Wide Web Address www.metlife.co.in

Managing Director Rajesh Relan

Employees 7688

Financial Advisors 56,072

Bancassurance Tie-Ups 5 (J&K Bank/Axis

Bank/Dhanalakshmi Bank/Karnataka

Bank/Barclays)

Number Of Products Over 20 products

Presence Through MetLife Offices 192 offices in 131 cities

Presence Through Bank Partners 1910 offices in 686 cities

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Vision and Mission

Build financial freedom for all through leadership in providing financial advice and

building long-term relationships through innovative protection, accumulation and

retirement products, robust underwriting processes and creating world-class

customer service experience for our customers

.

We want to provide customers in India with world-class solutions for financial

security, and in the process add significant value to our shareholders, associates

and society.

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Our Core Values

We lead through Innovation to offer world class and competitive products toour customers

We build Long Term Relationships with our customers by creating a worldclass service experience through operational excellence and the innovativeuse of technology

We create a Customer Centered and Result Focused Vision that inspires eachone of our Associates and has their buy-in

We are committed to creating a High Performance Organization by creatingan environment that allows each one of our Associates to perform at their

peak. As a result we will also be recognized as an Employer of Choice

We are committed to Partnering with our internal and external Customers for

mutual success

We work with Integrity, Fairness and Financial Prudence in all our dealingskeeping the interests of our Shareholders, Customers and Associates

paramount

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Rajesh Relan

Managing Director

MSVS Phanesh Murthy

Appointed Actuary

Shilpa Vaid

Deputy Director- Human Resources

Gaurav SharmaDirector - Customer Service and Operations

Girish Malhotra

Director- Agency

KR Anil Kumar

Director - Financial Planning& Controller

KS RaghavanChief Administrative Officer

Preetinder Chadha

Deputy Director - Corporate Sales & Training

P. S. Sankaran

Director Business Support

Sameer Bansal

Director- BA & BP

Vijay Raghavan

Director - Marketing & Strategy

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Partners:-

Corporate Social Responsibility:-

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MetLife has always been committed to making a positive difference in the

lives of the individuals and communities. Today, that commitment drives

volunteer work and philanthropy across the globe. Working with non-profit

organizations, MetLife supports programs that provide young people with the

skills they need to succeed in life and create opportunities for people of all

ages.

MetLifes core values are personal responsibility, people count, partnership,

integrity and honesty, innovation and financial strength. These values also

shape the responsibility to the communities where the organization conducts its

business.

Child Plan:-

Met Bhavishya

MetLife offers 'Met Bhavishya' - a guaranteed money back plan that pays out funds

to help to meet the education and career milestones of children. With this plan, the

Life Insured is that of the parent. The plan also has inbuilt guaranteed additions to

add value to the policy over its term.

There are two options to choose from and fixed term benefits, periodic additions &

terminal additions are payable based on the option that select. The policy is

suitable for parents with children between the ages 0-12 and parents in the age

group of 20-50 years old.

Met Junior Endowment

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MetLife offers 'Met Junior'- a flexible endowment plan that combines savings and

security. Children's well-being is our highest priority. So MetLife offer a plan

which offers both timely and efficient return on investment. All with a guarantee.

Met Junior - Non ParOn attaining maturity, the Person Insured will receive the Sum Assured.

Met Junior - Par

On attaining maturity, the Person Insured will receive the Sum Assured, the

Reversionary Bonus and the Terminal Bonus, if any.

Met Little Star

When child is born, a star is born in family. And, parents would like to provide

their star with all the building blocks that could develop his or her potential to the

fullest. This could mean special instruction sessions for talented children, uniquetraining gear for exceptional athletes or qualified training for born singers to

provide that extra-edge.

To ensure this, parents would need an investment and protection package that is

exclusively designed to help you plan for financial security, no matter what

uncertainties life brings.

'Met Little Star', aUnit-Linked, regular premium, child insurance plan helps parentsdo just that. It secures finances for child's educational needs and ensures that plans

go as planned, no matter what the circumstances.

\Met Junior Money Back

MetLife offers 'Met Junior Money Back' - a money back plan that combines

savings and security. Child's well-being is our highest priority. So MetLife offer a

money back plan which provides guaranteed periodic survival benefits at the end

of 5, 10 & 15 years, along with guaranteed growth of savings.

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

different milestones.

Survival Benefit

At the end of 5 years 20% of Sum Assured


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Upon survival to

maturity

40% of Sum Assured plus total

Guaranteed Additions

Met Magic

MetLife offers 'Met Magic', a Unit-Linked (non-medical, regular premium) life

insurance plan (Non Par).

Parents always want their little angel to have the best, in every sphere of life. You

don't want your child to have to compromise. No matter what the circumstances.

Met Magic, a unique life insurance plan, helps you secure the future of your lovedone!

(IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THEPOLICY HOLDER )

Retirement:-

Met Growth

MetLife offers 'Met Growth' - a Unit-Linked solution to help in golden years. It is

specially designed to provide financial security for future requirements. This plan

allows to start planning immediately by ensuring the safety of first year

premiums. It also helps create retirement fund faster by giving you 100%

allocation from the second year onwards, coupled with attractive loyalty additions

into fund. Guaranteed.

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Entry Age (in completed years) Min 0 years (3 months to be completed)

Max 60 years

Maturity Age Min 18 years

Max 75 years

Coverage Term 15 / 20 / 25 / 30 years

Premium Payment Term Regular

Minimum Annualized Premium Rs. 12,000

Basic Sum Assured Min - 5 times the Annualized Premium ***Other Sum

Assured multiples - 10 times & 20 times the Annualized

Premium.

Premium Paying Modes Monthly, Quarterly, Half-yearly, Yearly

Benefit

Death Benefit

In the unfortunate event of death, the higher of the Sum Assured or the

Fund Value would be payable.

If death of the Person Insured occurs before age 7, the Fund Value plus

the regular premium received by us in the first policy year is payable.

Maturity Benefit

On maturity, you will receive the Fund Value including the Guaranteed

Loyalty Addition or you can opt for the settlement options.

Loyalty Additions

You get the guarantee of enhancing your wealth creation through

guaranteed loyalty additions (up to 120% of the first year annual

premium) at the end of the 10th & 15th year plus Guaranteed Additions

as a % of the Fund Value.

At the end of the 10th year: 50% of the first year annualized premium

At the end of the 15th year:

Met Advantage Plus

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MetLife offers 'Met Advantage Plus' - a Unit-Linked Pension Plan that allows to

effectively and efficiently accumulate retirement needs. As the name suggests, it

comes with many advantages.One can choose from eight annuity options, two life

cover options and get tax benefits under Section 80 C and 10 (10 A). One can buy

the plan without any hassles and invest more as you approach retirement by using

the top-up functionality. All in all, its a plan which works harder when one stop

working. For one, it ensures that you lead a comfortable lifestyle post retirement.

Entry Age (in completed years) Min 20 yearsMax 55 years

Minimum Term 10 years

Minimum Vesting Age 45 years

Maximum Vesting Age 65 years

Minimum Premiums Single Pay: Rs. 1,00,000Regular Premium: Rs. 10,000

Premium Paying Term Single Pay & Regular Pay

Benefits

Death BenefitIn case of death during the accumulation period, the death benefit payable is:Under Option A: A guaranteed amount of 110% of the Fund Value is payable to thenominee.Under Option B: 100% of the Fund Value is payable to the nominee.

Vesting BenefitOn the vesting date, i.e. at the end of the accumulation term,you can take one-thirdof your retirement kitty as a tax-free lump sum and utilize the balance to buy

annuities. Or you can use the entire retirement kitty to buy annuities.

Met Pension-Par

'Met Pension (Par)' serves as a friendly helping hand so one can stay financiallyindependent even after retirement. It helps to build up a fund for golden years.

With this plan,one can ensure his\her enjoy retirement as a happy new chapter.

Entry Age (in completed

years)

Min 18 years

Max 60 years

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Minimum Term 10 years

Minimum Vesting Age 45 years

Maximum Vesting Age 70 years

Minimum Sum Assured Rs. 50,000

Maximum Sum Assured No Limit

Minimum Annual

Premium

Rs. 4000 p.a. for Regular Pay

Premium Payment Term Single Pay, Limited Pay (3 or 5 Pay) & RegularPay

Benefits

Death Benefit

In case of death while one is saving for retirement, the death benefit payable

is:

1. Return of premiums.

2. Accrued reversionary bonus, if any.3. Any insurance on the life of the Insured that may be provided by riders to

this policy.

Vesting BenefitOn the vesting date, you can take one third of your retirement kitty as a tax-

free lump sum and utilize the balance to buy annuities or you can use the

entire retirement kitty to buy annuities. The retirement fund on the date of

vesting is equal to the Sum Assured plus Guaranteed Additions plus thecompounded reversionary bonuses plus the terminal bonus, if any.

Guaranteed Additions

Savings:-

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Met Sukh

MetLife offers 'Met Sukh'- a guaranteed money-back policy which providesguaranteed periodic survival benefits at the end of 5, 10, 15 & 20 years andguaranteed additions of 10% of the Sum Assured for the entire term. It not onlycovers your life, but also guarantees you cash payments at various milestones alongwith guaranteed growth of your savings.

Entry Age Min - 15 yearsMax - 55 years

Coverage Term 20 years




Benefits

Death Benefit

In the unfortunate event of death of the Person Insured, the Sum

Assured along with the Guaranteed Additions are payable.

The policyholder is entitled to Guaranteed Additions of Rs. 100 per Rs.

1,000 of the Sum Assured for each completed year.

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Maturity Benefit

On maturity, the life insured will receive the Survival Benefits plus the

Guaranteed Addition.

Survival Benefits

Met Suvidha

'Met Suvidha' is a flexible Endowment Plan that combines savings and security. In

addition to providing you protection till the maturity of the plan, it helps you save

for your specific long term financial objectives. This long term savings-cum-

protection plan comes to a customer at affordable premiums.

Met Suvidha is available in both participating as well as non-participating versions.

Minimum Entry Age Par: 15 years - 60 years

Non-Par: 15 years - 70 years

Term Par: - 15 years - 30 years

Non-Par: 5 years - 30 years

Premium Paying Terms Single Pay, Limited Pay (5 or 10) &

Regular Pay

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



Upon survival to

maturity

40% of the Sum Assured

plus Total Guaranteed

Additions
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Minimum Annual Premium Amount Rs. 2,500



Met Saral

MetLife presents 'Met Saral' - a non- participating endowment plan. As the name

suggests, its a simple savings plan which gets customer into the savings habit

without any medical tests. All need to do is fill in a simple application form and are

ensured a guaranteed maturity amount of Rs 100,000, even in the case of death

during the term. Take the first step towards a better financial future for customer

and his family. Ensure and insure the first Lakh.

Met 100

'Met 100' - a whole life policy where customer pay premiums for 15, 20 or 25

years.

It helps create a legacy for the children, leaving money for a dependant spouse and,

more importantly, provides insurance cover at affordable rates.

Met 100 is available in participating as well as non- participating versions.

Non-Par Par

Minimum Entry Age 15 yrs 0 yrs

Maximum Entry Age 70 yrs for ppt of 15 yrs

65 yrs for ppt of 20 yrs

60 yrs for ppt of 25 yrs

70 yrs for ppt of 15

yrs

65 yrs for ppt of 20

yrs

60 yrs for ppt of 25yrs

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70 yrs for life ppt

Premium Paying

Terms

15, 20, 25 yrs 15, 20, 25 yrs

Minimum Sum

Assured

Rs. 50,000 Rs. 50,000

Maximum Sum

Assured

No limit (subject to UW) No limit (subject to

UW)

Minimum Annual

Premium

Rs. 1,000 for issue age of < 15

yrs

Rs. 2,500 for issue age of > = 15

yrs

Met 100 Gold: Rs.

2,500

Met 100 Platinum:

Rs. 7,500

Death Benefit

Met 100 - Par

In the event of death, the

Sum Assured plus the

Reversionary Bonus and

Terminal Bonuses, if any,

are payable.

Met 100 - Non-ParIn the event of death, theSum Assured is payable.

Maturity Benefit

Met 100 - Par

On maturity of the policy, theSum Assured plus theReversionary Bonus andTerminal Bonuses, if any, are

payable.

Met 100 - Non-Par

On maturity of the policy, the

Sum Assured is payable

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Protection:-

Met Suraksha

MetLife offers 'Met Suraksha - Term Assurance (TA)', a non

participating term assurance plan which provides life cover at a

nominal cost. To put it simply, it is a life insurance plan that

gives complete protection to enjoy life to the fullest. Customer

can further customize plan with two riders Accidental Death

Benefit and Critical Illness.

Met Suraksha TROP

MetLife offers 'Met Suraksha - Term with Return of Premium

(TROP)', a non participating term assurance plan which provides

life cover at a nominal cost. To put it simply, it is a life insurance

plan that gives complete protection to enjoy life to the fullest.

You can further customize your plan with two riders Accidental

Death Benefit and Critical Illness.

Met Mortgage Protector

This plan which provides life cover for home loans taken for any

period above 5 years. It is a decreasing term insurance with single

and limited premium options. The plan covers an amount equal to

the outstanding amount as per the policy schedule.

It ensures the assets that have created stays with family.

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Rural :-

None of us can be sure what tomorrow will bring. Shield your

families against the unknown. MetLifes rural plans protect your

loved ones against financial liabilities and help you save for

tomorrow. All at affordable premiums

Met Vishwas

'Met Vishwas', - a single premium, micro insurance, non-

participating term assurance plan which provides life cover at a

nominal cost. On survival, customers get 110% or 125% of the

premium.

Minimum Entry Age 18 years

Maximum Entry Age 60 years

Maximum Maturity Age 70 years


Maximum Sum Assured Rs. 50,000

Policy Term 5 or 10 years

Premium Paying Terms Single Pay

Met Suvidha-Rural

Met Suvidha (Rural) is a participating flexible Endowment Plan

that combines savings and security. In addition to providingprotection up to maturity, it helps to save for specific long term

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financial objectives. This long term savings-cum-protection plan

comes at affordable premiums.

Benefits:

Met Suvidha - Par

In the event of death

during the term of the

policy, the beneficiary will

receive the base Sum

Assured, the accrued

reversionary bonus and

terminal bonus if any.

Maturity Benefit

Met Suvidha - Par

On maturity of the policy,

you will receive the base

Sum Assured, the accrued

reversionary bonus and

terminal bonus if any.

It is an Endowment plan that offers both savings and lifeinsurance.

Flexible premium paying options to suit various incomecycles.

A plan which participates in the bonuses declared by thecompany.

Customization possible with Accident Death Benefit,

Critical Illness, Term, Waiver of Premium Riders forcomprehensive protection.

Investment:-

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MetLifes Unit-Linked Insurance Plans ensure systematic

enhancement of wealth. Be it higher returns or the right blend of

protection and wealth optimization, they help to ensure the right

choice and peace of mind.

(IN THESE POLICY, THE INVESTMENT RISK IN

INVESTMENT PORTFOLIO IS BORNE BY THE POLICY

HOLDER )

Met Easy

A simplified unit-linked plan which offers an opportunity to

systematically build wealth and protection for you and yourfamily.

45

10 years 15 years 20 years

Minimum Age

at Entry

8 3 0 (3 months to be

completed)

Maximum Age

at Entry

55 50 50

Minimum

Premium

20,000 15,000 12,000

Maximum

Premium

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

Sum Assured 5 times the

annualized regularpremium

7.5 times the


10 times the


Premium

payment modes

Yearly, Half-yearly,

Quarterly, Monthly


Quarterly, Monthly


Quarterly, Monthly
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(The maximum Sum Assured available in this product is based on age, at thetime of buying the policy.)

Benefits-

Death BenefitIn the event of

death:

In the 1st PolicyYear: Higher of50% of the Sum

Assured or the

Fund Value is

payable.

After the 1stPolicy Year :Higher of 100%

of the Sum

Assured or

Fund Value. If

death of the

Person Insured

occurs beforeage 7, the Fund

Value plus the

Regular

Premium

received by us

in the first

policy year is

payable.

Maturity

Benefit

On maturity, youwill receive theFund Valueincluding theLoyalty Addition

or you can optfor the settlementoptions.

Loyalty

Additions

With Met Easy,you get the

benefit of

potentiallyenhancing yourwealth creationwith loyaltyadditions that areadded to your

policy onmaturity.

Met Smart Gold

MetLife offers 'Met Smart Gold'- a Unit-Linked wealth creationcum protection plan for the well-heeled. It's specially conceivedso that one can get a plan to match his specific financialrequirements.

If you are keen on investing lump sum amounts over a shorter

horizon, this is the ideal plan for you.

Met Smart Plus-Regular Pay

'Met Smart Plus' a Unit-Linked Whole life plan that matures at

age 100. If you want to protect your family from lifes

uncertainties; at the same time, you wish insurance would yield

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higher returns on your investments. You want your insurance

policy to help realize all your dreams. Its a right plan to go with.

Entry Age (in completed

years)

Min 0 years (3 months to be completed)

Max 70 years

Maturity Age 100 years


Minimum Annualized

Premium

Rs. 12,000

Minimum Basic Sum

Assured

Rs. 60,000

Premium Payment Modes Monthly, Quarterly, Half-yearly, Yearly

Met Smart Plus- Single Pay

Same as Met Smart Plus Regular but premium is payable in a

single term or at the time of policy taken.

Met Smart Premier- Regular Pay

MetLife offers 'Met Smart Premier' a Unit-Linked Whole life

plan that matures at age 100. You want to protect your family

from lifes uncertainties; at the same time, you wish insurance

would yield higher returns on your investments. You want your

insurance policy to help realize all your dreams.

Met Smart Premier- Single Pay

Payable lump sum at the time of policy taken.

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Health:-

Met Health Care

UIN no: 117N048V01

Health problems strike unexpectedly. In addition to causing ill

health, it can also scar financial health. One need to protect

himself against such a situation through a health insurance plan.

In order to ensure you are well protected to face any health

condition that could befall you, MetLife presents - Met Health

Care, a simple health insurance policy with unique and smart

advantages for you and your family#.

(# Family means spouse and two children. Every additionalfamily member shall be underwritten as per the underwritingconditions laid by the Company from time to time.)

Met Health Care is a long term health insurance plan fromMetLife. This plan covers

1. Hospitalization expenses by providing a Daily Cash benefit as

chosen by you.2. 10 major Critical Illnesses by providing a lump sum benefit.3. Total & Permanent Disability due to accident by providing alump sum benefit.

All the above benefits can be availed without the hassle ofundergoing any medical examination. Just fill up the simpleapplication form and start enjoying the unmatched benefits ofMet Health Care.

Minimum/Maximum age

of entry

18 years-55 years (At first entry, for thePrincipal insured)3 months-55 years (For Secondary Insured lives)

Cover ceasing age 65 years

Maturity/Death Benefit No Maturity/Death Benefit payable

Benefits Offered (a) Daily Hospitalisation Cash Benefit

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(b) Daily ICU Cash Benefit(c) Recuperation Benefit(d) Critical Illness Benefit(e) Accidental Total & Permanent Disability

Benefit

Premium paying frequency Yearly. Half-Yearly mode is avaiable only ifeach of the persons insured choose a daily cash

benefit of Rs. 3000 or more.

Illustration

Benefit Option 1 Option 2 Option 3 Option 4 Option 5

Daily Hospitalisation

Cash Benefit

Rs. 1000 per day Rs. 2000 per day Rs. 3000 perday

Rs. 4000 perday

Rs. 5000 perday

Daily ICU Cash Benefit Rs. 2000 per day Rs. 4000 per day Rs. 6000 perday

Rs. 6000 perday

Rs. 6000 perday

Recuperation Benefit Rs. 3000 Rs. 6000 Rs. 9000 Rs. 10000 Rs. 10000

Critical Illness Benefit Rs. 1 Lakh Rs. 2 Lakh Rs. 3 Lakh Rs. 3 Lakh Rs. 3 Lakh

Accidental Total &

Permanent Disability

Benefit

Rs. 1 Lakh Rs. 2 Lakh Rs. 3 Lakh Rs. 3 Lakh Rs. 3 Lakh

Benefits

Death/Maturity Benefit

There is no Death/Maturity Benefit under Met Health Care.

Tax Benefits

The premium paid (excluding the service tax) under this plan is

eligible for Tax Benefits under Section 80 D of the Income Tax Act,

1961 as per the provisions and conditions given therein and are

subject to any changes made in the tax laws in future.

Reasons to Buy

1. Coverage for the entire family.

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2. No Claim Discounts.

3. Guaranteed Cover* till age 65.

4. Payouts in addition to other Insurance Plans.

5. Multiple Claims.

S.W.O.T ANALYSIS OF METLIFE INDIA INSURANCE

STRENGTHS

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With over139 years of experience Metlife have

approximately US $ 3.3 trillion of life insurance in

force.

Brand Image , Business Experience and

Innovative products..

Large number of young workforce .The 40K agents

which are very selectively chosen .

Service quality which is the crux of their mission.

Has tie up with banks like Axis , J&K , Barclays ,Karnatka Bank and Dhanalakshmi bank.

Paidup capital ofRS 1500 cr as on 2008 which

shows company dependability.

Very less charges on ULIP plans as compare to

other insurance players .

WEAKNESS

Many competitors in the market ofsame products

by the title and difference in premium and offerings.

Sustainable to riskassociated with investments in

money market.

Very less network branches due to which its

difficult for customer to make payment easily.

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Not focusing on consumer awareness mainly

concentrating on personal selling .

More focusing in urban areas not touching rural

area which has a very good potential market for

insurance sector.

Lacking in advertisement due to which they are

not able to cover a large area or large no of

customer.

OPPORTUNITY

Huge market is literally untapped. Out of

estimated 320 millions insurable markets only 20%

of the population is insured.

Health insurance and pension schemes, an

estimated marketpotential of approximately $ 15

billion.

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Nearly 70% of the Indian population is without

Life , Health , and Non-Life insurance.

Per Capita life insurance premium in India in 2004

was $16 as compared to the world average of $ 292.

Strong economic growth with increase in affluence

and rising risk awareness leading to rapid growth in

the Insurance sector.

THREATS

Players like bajaj and birla sunlife offersame plans

with low premiums.

Entry of many other private companies withequally strongexperience and financial strength

of foreign partners making the competition difficult

and saturating the urban markets (example ; idbi fortis

insurance , bharti axa insurance and more.)

Current govt. policies do not encourage gross

domestic savings. if the tax liability of the sevice

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class rises, the customer will have little money to

invest.

Lic has woken up from sleep and is following

competitive strategies. its huge surplus in life fund

gives a capability to lodge price war.

MAN Concept:

This concept means that before selling, the seller should make sure that the

suspect should have the Money, Authority and Power to buy the product, and then

only the prospect will become a Suspect. Before deciding suspect a person should

identify that they should have enough money to buy that service, prospect should

have authority and power of taking decision, he should also have need of buying

the product. If a person have all these things than only he can become suspect ofthe product.

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RESEARCH METHODOLOGY

Objective

Scope of study

Sampling methodology

Limitations


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RESEARCH METHODOLOGY

TITLE:

To Study Potential of Life Insurance Industry and motivational

technique used by METLIFE in Chandigarh.

TITLE JUSTIFICATION:

The above title is self explanatory. The study deals mainly with

studying the buying pattern and also the motivational technique

used in the insurance industry with a special focus on MetLife

India Insurance Co. Ltd. The various segments of the markets

divided in terms of Insurance Needs, Age groups, Satisfaction

levels etc will also studied.

OBJECTIVE

Main objective of the research is to have an analysis of life

insurance industry . To accomplish this objective it has been

divided into six.

To determine reasons behind opting for an insurance.

To know the most preferred policy.

To determine customers perception towards private

insurance companies and their expectation form private

insurance companies.

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To determine the feedback on services provided by an

insurance agent.

To study the types of benefits provided by insurance

services.

To study the motivational techniques used by metlife

insurance

SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industry in recent

times. A large number of new players have entered the market

and are trying to gain market share in this rapidly improving

market. The study deals with reliance in focus and the varioussegments that it caters to. The study then goes on to evaluate and

analyze the findings so as to present a clear picture of trends in

the Insurance sector.

SIGNIFICANCE TO THE INDUSTRY:

This is a limited study which takes into consideration the

responses of 40people and 10 employees. This data can be

explorated to take in the trends across the industry. The

significance for the industry lies in studying these trends that

emerge from the study. It is a rapidly changing and evolving

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sector. People are only beginning to wake up to its vast

possibilities. A study like this can attempt to guide the future of

the industry based on current trends.

SIGNIFICANE FOR THE RESEARCHER:

To facilitate and provide useful information for the study of thecompany and the insurance industry and also providerecommendations forMetLife India Insurance Co. Ltd

RESEARCH DESIGN

EXPLORATORY & DISCRIPTIVE

EXPERIMENTAL RESEARCH

The research is primarily both exploratory as well as descriptive

in nature. The sources of information are both primary &

secondary.

A well-structured questionnaire was prepared and personal

interviews were conducted to collect the customers perception

and buying behavior, through this questionnaire.

SAMPLING METHODOLOGY

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Sampling Technique:

Initially, a rough draft was prepared keeping in mind the

objective of the research. A pilot study was done in order to know

the accuracy of the Questionnaire. The final Questionnaire was

arrived only after certain important changes were done. Thus my

sampling came out to be judemental and convinent

Sampling Unit:

The respondents who were asked to fill out questionnaires are the

sampling units. These comprise of employees of MNCs, Govt.

Employees, Self Employed etc.

Sample size:

The sample size was restricted to only 40 people and 10

employees, which comprised of mainly peoples from different

regions of Ahmedabad due to time constraints.

Sampling Area:

The area of the research was Chandigarh, India.

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LIMITATIONS OF THE RESEARCH

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

and does not necessarily shows a pattern applicable to all of

Country.

2. Some respondents were reluctant to divulge personal

information which can affect the validity of all responses.

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3. In a rapidly changing industry, analysis on one day or in

one segment can change very quickly. The environmental

changes are vital to be considered in order to assimilate the

findings.

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63

SURVEY

Graph Analysis

Data Interpretation


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DATA ANALYSIS & INTERPRETATION

NUMBER OF PEOPLE HAVING INSURANCE

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

Yes 28 70%

No 12 30%

Total 40 100%

[Fig 1]

12

28

INTERPRETATION

Of the sample size 40 of surveyed respondents 70% of

the respondents are having Insurance policy.

30% of the respondents are either not having any

Insurance policy at present or their policy is already matured.

And at present 100% of the respondents are with the

view that Insurance is a tool to protect your family.

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TYPES OF INSURANCE POLICY RESPONDENTS HAVE

POLICY TYPE NO. OF

RESPONDENTS

SHARE (%)

LIFE POLICY 21 75

NON LIFEPOLICY

7 25

BOTH 12 45

INTERPRETATION

75% of the respondents have only Life Insurance

Policy.

While 45% of the respondents have both.

25% of the respondents have only Non- life Policy.

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

PREFERENCE OF RESPONDENTS OF INSURANCE

COMPANIES

COMPANYS NAMENO.OF

RESPONDENTSHARE (%)

L.I.C. 22 55

Metlife India Ins.Co.Ltd

3 7.5

Bajaj Allianze 2 5

HDFC Insurance 6 15

Others 7 17.5

TOTAL 100 100

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Sales

LIC

MetLife

Bajaj allianceHDFC

Others

INTERPRETATION

55% of the people contacted prefer LIC policy to any other

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

respondents.

BENEFITS OF INSURANCE PERCEIVED BY

RESPONDENTS

BENEFITSNO.OF

RESPONDENTSSHARE (%)

Cover Future Uncertainty 22 55

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Tax Deductions 8 20

Future Investment 10 25

TOTAL 40 100

INTERPRETATION

55% of the respondents believe that covering future

uncertainty is the biggest benefit of an insurance policy.

Whereas, 20% and 25% of them believe that the other

benefits are Tax deduction and future investments

respectively.

FEATURES OF INSURANCE POLICY THAT

ATTRACTED RESPONDENTS

68

Cover Future

Uncertainty55%

TaxDeductions

20%

Future

Investment25%

[Fig 4]


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FEATURE NO.OF

RESPONDENTS

SHARE (%)

Money Back Guarantee 6 15

Larger Risk Coverage 15 37

Easy Access to Agents 3 7

Low Premium 12 30

Companys Reputation 4 11

TOTAL 40 100

MONEYBACK

GUAARENTEE

15%

LARGERRISK

COVERAgE37%

EASYACCESS TO

AGENTS7%

LOWPREMIUM

30%

REPUTATIO

N OFCOMPANY

11%

[Fig 5]

INTERPRETATION

Majority of the respondent (37%) found larger risk

coverage as the most attracted feature of the all.

Minimum respondents (7%) opted for easy access to

agents.

PEOPLE PERCEPTION ABOUT INSURANCE

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RESPONSE NO. OF

RESPONDENTS

SHARE

(%)

A saving tool 22 55

A tax saving device 8 20

A tool to protect your family 10 25

INTERPRETATION

55% of the respondents have perception of Insurance

being a sav

metlife sales

Documents