tata aig life insurance marketing
DESCRIPTION
insurance marketing projectTRANSCRIPT
2- COMPANY PROFILE AND SWOT
ANALYSIS OF THE COMPANY
3- OBJECTIVE OF STUDY
4- RESEARCH METHODOLOGY
5- DATA ANALYSIS AND INTERPRETATION
6- FINDING AND ANALYSIS
7- RECOMMENDATIONS AND
SUGGESTION:CONCLUSION
8- LIMITATION
9- QUESTIONNAIRE
10- BIBLOGRAPHY
INSURANCE
INTRODUCTION
The business of insurance is related to the protection of the economic
value of assets. Every asset has a value.
The asset gets lost earlier, being destroyed or made non-functional,
through an accident or other unfortunate event, the owner and those
deriving benefits there from suffer. Insurance is a mechanism the helps
to reduce such adverse consequences.
PURPOSE & NEED OF INSURANCE
Assets are insured, because they are likely to be destroyed or made
non-functional, through an accidental occurrence. Such possible
occurrences are called perils. Fire, floods, breakdowns, lightning,
earthquakes, etc, are perils.
Risk : A possibility of loss or damage. It may or may not happen.
There has to be an uncertainty about the risk. Insurance is done
against the contingency that it may happen.
Insurance : People/Assets must be exposed to the same risks
Insurance : Risk is spread among the community and the likely big
impact on one is reduced to smaller manageable impacts on all.
Insurance companies: collect money in advance and create a fund
from which the losses are paid.
A human life is also an income generating asset. This asset also can
be lost through unexpectedly early death – Accidents may or may not
happen.
Living too long can be as much as problem as dying too young. These
are risks which need to be safeguarded against.
Insurance covers economic or financial loses – tangible and intangible
assets.
HOW INSURANCE WORKS
People facing common risks come together and make their small
contributions to a common fund. The contribution to be made by each
person is determined on the assumption that while it may not be possible
to tell beforehand, which person will suffer, it is possible to tell, on the
basis of past experiences, how many persons, on an average, may suffer
losses.
Insurance is about
Sharing the same risk
Paying out compensation (claims)
Insurer ensures: no body takes undue advantage.
BUSINESS OF INSURANCE
The business of insurance done by insurance companies, called
insurers, is to bring together persons with common insurance interests
collecting the share or contribution from all of them and paying out
compensations to those who suffer.
The business of insurance is nothing but one of sharing. It spreads
losses of an individual over the group of individuals who face
common risk.
It ensures that nobody takes undue advantage of the arrangement.
FUNDAMENTAL PRICIPLES
Life Insurance Contracts
A contract may be defined as an agreement between two or more
parties to do or to abstain from doing an act, with an intention to
create a legally binding relationship. A simple contract to be
enforceable must have following essentials :-
- Offer and acceptance
- Consideration
- Capacity to contract
- Consensus ‘ad idem’
- legality of object
Commercial contracts
Commercial contracts are normally subject to the principle of caveat
emptor i.e. let the buyer beware. In most of these contracts each party
to the contract can examine the item or service. Which is the subject
matter of contract.
Insurance contracts
As for insurance contracts, the product sold is intangible. It cannot be
seen or felt. Moreover, most of the facts relating to health, habits,
personal history, family history are known to one party only, the
proposer.
PRINCIPLE OF UTMOST GOOD FAITH (Uberrimae Fides)
Proposer must disclose every material known to him. This type of
contract is called Uberrimae Fides i.e. contract of utmost good faith.
Facts that would influence the judgement of a prudent insurer in fixing
the premium or determining whether he will take the risk. Therefore,
facts regarding age, height, weight, build, previous medical history,
smoking / drinking habits, operations, non-disclosure of earlier
insurances, ‘hazardous’ occupation must be disclosed.
There are certain circumstances, a facts which need not be disclosed.
For example :
(1) Facts which every one is supposed to know.
(2) Facts of common knowledge.
(3) Facts which lessen the risk.
(4) Facts which could be reasonably discovered, by reference to
previous policies, records of which are available with the insurer.
INSURABLE INTEREST
All risks are not insurable. In order to be insurable, the risk must be
capable to financial measurement, there must be sufficient number of
similar risks, the risk must be capable of statistical (actuarial) estimation.
It must not be against public policy, and there must be insurable interest
in the property to be insured/risk to be covered.
The Insurance Act, 1938 does not define insurable interest. Insurable
interest is said to exist when the person insuring stands to lose if the event
insured against occurs.
Person has insurable interest in his own life to an unlimited extent.
Insures take into account a proposer’s capacity to pay premiums and his
need for insurance, while granting the sum insured.
Instances of Insurable Interest
Common people having insurable interest
- Spouses have insurable interest in each other.
- Partners can insure each other’s lives.
- Creditors have insurable interest in debtors
- Employers have insurable interest in the life of employees.
The legal position about children’s assurances is not quite clear. It is
presumed that parents have insurable interest in the life of a child as a
child i.e. so long as he is a child. Therefore most of the LIC’s
children’s policies incorporate a vesting clause, whereby the policy
vests in the child on attainment of majority.
CAREER OPPORTUNITY
DISCOVER A WORLD OF GREAT OPPORTUNITY WITH THE
LEADING SERVICE INDUSTRY
THE INSURANCE SECTOR
NATIONALISED IN 1956 :
LIC WAS THE ONLY PLAYER TILL 2000
GOVERNMENT HAS DE-REGULATED THE INDUSTRY
THE FASTEST GROWING BUSINESS IN India TODAY
LIFE INSURANE PENETRATION IN India IS 1.4%
PER CAPITA SPEND IN India – Rs. 235.00
LIFE INSURANCE : THE
FASTEST GROWING INDUSTRY
A Rs. 30,000 CRORE BUSINESS
GROWING AT 20% EVERY YEAR
ONLY 1.4 % OF THE India IS INSURED
HUGE INCOME POTENTIAL FOR YOU
OBJECTIVES
THE MAIN OBJECTIVES OF THE STUDY ARE AS FOLLOWS :
To present an overview of Tata AIG Insurance company with its
marketing strategies.
To study the history of Tata AIG.
To assess the nature of Joint Venture, Investment Pattern, Entry
Strategies and product of Prudential Tata AIG Insurance Company.
To collect Data through market survey.
To analyze the comparative marketing strategies of Tata AIG with
other Companies.
To change the profile of Insurance Agents.
To analyze a data collected using factor analysis.
COMPANY PROFILE
VSERV- A PROFILE
As the name suggests VSERV is here to serve its people, promote ease to
its client & insure the best of its service to all.
Established in March 99 by Mr. Herpreet Singh. VSERV was initially
formed distributing mutual funds & bonds. The company slowly
broadened its horizon & in the year 2001 when insurance fell into the
hands of Pvt. sector VSERV entered into life & general Insurance with
TATA AIG. By April 2001 there were two companies founded under the
banner of VSERV namely, VSERV CAPITAL SERVICES PVT LTD.&
VSERV INSURANCE SERVICE PVT LTD, both catering to the
insurance needs of its customers.
VSERV CAPITAL SERVICES PVT LTD.
Incorporated under companies act 1956, VSERV CAPITAL
SERVICES PVT LTD is the sister concern of VSERV that deals in
investment , stock brooking , management consulting & recruiting &
training activities as business associates for TATA AIG.
The company under the administration of its board of directors
comprising of Mr. Harpreet Singh , Harpreet Kaur & Vir Singh Veer
operate through a team of people of which 300 are directly employed &
over 2000 indirect employees . The company has an extensively
networked area of operation which covers states of Delhi , Punjab ,
Haryana , Rajasthan , Uttar Pradesh & the metropolitan city of Chennai .
As the " Annual Convention 2003 ", Dubai, puts it - VSERV is the
number 1 Business Associate with TATA AIG for past 3 years
VSERV INSURANCE SERVICES PRIVATE LTD.
Incorporated in the same year, April 2001, under the companies act 1956,
the company is headed by a directorial panel under Mr. Harpreet Singh
and Mr. Vir Singh Veer.
This company deals in both life and general insurance and is operative in
the capital city, Delhi.
CLIENTS
VSERV proudly assests its cliental to over 10,000 accounts in the past
three years. It has over 20 co-operate clients serving names like HCL
Group & Barista.
STRENGTHS
"When it comes to service we don’t look at the cost"
The company lives by this Motto. It practices a highly customer focus
approach & believes in retaining clients by providing them with
exceptional services.
To achieve this state of professionalism the company has experienced &
qualified professionals at its disposal. Along with this the company also
has a well recruited managing team & staff with trained & knowledgeable
personnel who are well versed in the fields of insurance & financial
services.
Tata-AIG Life Insurance
PROFILE
Tata-AIG Life Insurance company is a joint venture between the Tata
Group and American International Group Inc (AIG), the leading US-
based international insurance and financial services organisation and the
largest underwriter of commercial and industrial insurance in America.
Its member companies write a wide range of commercial, personal and
life insurance products through a variety of distribution channels in
approximately 130 countries and jurisdictions throughout the world.
AIG’s global businesses also include financial services and asset
management, including aircraft leasing, financial products, trading and
market making, consumer finance, institutional, retail and direct
investment fund asset management, real estate investment management,
and retirement savings products.
Areas of business
Tata-AIG Life Insurance products include a broad array of life insurance
coverage to both individuals and groups. For groups, the company has
life products whereas for individuals, it has term products, endowment
products as well as money-back products. For groups and individuals,
various types of add-ons and options are available to give consumers
flexibility and choice.
INTRODUCTION
TATA GROUP
The Tata Group is the most respected industrial business house serving
India for 123 years with reventues of over Rs. 42,000 crores, with 80
companies present in seven business sectors.
The Group had a long association with India’s Insurance sector, having
been the largest Insurance Company in India prior to nationalization of
Insurance.
Specialty Group Companies :
TELCO
TATA INFOTECH
TATA CONSULTANCY SERVICES
TATA STEEL (TISCO)
TATA HOTELS (TAJ)
AND MANY MORE
Deep routed commitment towards Indian society.
AIG: A LEADER IN THE
INSURANCE BUSINESS
American International group Inc. (AIG), the leading US Based
International Insurance and Financial Services Organization with a
presence in over 149 countries and jurisdiction throughout the world.
AIG is the largest Insurance Co., founded in 1919 and it has
successful 84 years of history.
AIG global business also includes financial services and asset
management, financial products, consumer finance etc.
AIG IS AMONGST THE FEW ‘AAA’ RATED COMPANIES IN
THE WORLD
Sales Force of 115,000 World Wide.
Revenue $ 62.4 billion (Rs. 3,12,000 crores)
Net Income $ 7.66 billion (Rs. 38,300 crores)
Assets $ 492.98 billion (Rs. 24,64,900 crores)
Cutting Edge Training
Outstanding Rating
4 in Forbes 500
12 in fortunes 500
“Every cent of Premium we collect must one day be returned to our
Policy Holders”
- C.V. Starr, founder of AIG.
TATA AIG
INTRODUCTION
Tata AIG is a joint venture that is backed by the Tata Group, one of the
India’s most respected Industrial Conglomerates, with revenue of over
Rs. 40,000 crores, and American International Group, Inc. (AIG), the
leading US based international insurance & Financial Services
Organization.
THE TATA GROUP 74%
AIG 26%
Tata AIG offers a gamut of innovative products in the Life Insurance
Sector. Tata AIG is one of the few partnership in the Indian Insurance
Industry that brings you arrange of Insurance Products : from automobile
to life Insurance, from travel to personal accident coverage, and more.
TATA AIG LIFE
A joint venture bringing to household names together, launched in April
2001 in Mumbai, Delhi, Kolkata, Chennai, Banglore, Hyderabad and
expending rapidly.
In the Private Insurance Market Tata AIG life is :
Fastest growing new life insurance co. in India.
Presence in 14 cities and expanding constantly.
The leading Whole of Life provider with 50% of all policyholders
choosing Mahalife
Number One in Providing Term assurance
Our biggest seller is the Money Back Plan with 29% market share
Last year our annual bonus was amongst the largest paid in the
industry @ 5% compounded.
AREA OF BUSINESS
Tata AIG like Insurance products include a broad array of Life Insurance
coverage to both individual and groups.
For groups, the company has life products whereas for individual, it has
term products, endowment products as well as money back products. For
groups and individuals, various types of options are available to give
consumers flexibility and choices.
TATA AIG – VISION
Profitably
Deliver consistently excellent
Service and develop our
People in a constantly
Changing environment.
Bidest range of products to cater to needs of all segments
A unique career progression structure for advisors.
Not offer by all other companies in India.
HISTORY
TATA HISTORY - FAMILY TREE
JAMSETJI TATA
Founder of India’s largest and
internationally best non group of companies.
Began with a textile mill in central
India in the 1870s.
SIR DORABJI TATA SIR RATAN TATA
Sir Dorabji Tata
Trust (1932)
JEHANGIR RANTANJI
DADABHOY TATA
(1904 – 1993)
Pioneered civil aviation
on the subcontinent in
1932
Funding Dr. Homi
Bhabha
RATAN N. TATA
Group Chairman
TATA HISTORY : 1868 – 1960
Operations expand to include Expansion into Commercial
Hotels, Metals and the first of Printing. Airlines, Commercial
3 electric companies. In 1907, vehicles as well as Tata Industries
Tata expands globally with the which was created for the
Formulation to Tata Limited, promotion and development of
London. Hi-tech industries.
1900 – 1910 1930 – 1950
1968 – 1900 1910 – 1920 1950 - 1960
JN Tata starts a The Tatas enter the Tata is asked to
private trading firm consumer goods with the manufactures
laying the Tata oil mills Companies in
foundation for the Company making soaps, India. India’s
Tata empire. First detergents and cooking Major
operation include oils. Manufacturing
textiles, spinning and engineering
and weaving organization,
companies Voltas, is
in 1887, Tata and Sons established.
is established
TATA HISTORY : 1960 – 1990
Tata moves into the fields of Ratan N. Tata appointed
Publishing, Techno - Chairman of Air India long
Economic research & after J.R.D. Tata, founder of
Engineering Product. Tata Air India, Ceased to occupy
Opens the World’s largest that post
Palm Oil processing facility
1970 – 1980 1986
1960 – 1970 1980 – 1990 1980 - 1990
Tata exports and Marked by Tata watches
Tata Switzerland collaborations with launches its
formed to promote Hands Motor Co. Rs. 22 crores.
the export of and Honey well Tata Central
Indian Products. International. Archives
Tata expands into first 500 MW is created.
Tea, Nuclear and Power plant Tatamobile and
Aeronautical commissioned. Tata 406 by
Consulting. Tata Tata Engineering.
consultancy
services is formed
TATA HISTORY : 1990 – 1998
Seven major Tata New Tata Group
Group companies corporate logo and
formality adopt the mark are launched.
Tata Group code of
conduct.
1998 1998
1991 1998 1998
After 50 years at The first Tata electric
The helm, JRD Tata indigenously companies
steps Down as designed, acquire power
Chairman of developed and facilities from
Tata sons. He is manufacture ACC.
replaced by the car is introduced
present chairman, by Tata Indica.
Ratan N. Tata.
TATA HISTORY : 1998 – PRESENT
Tata Tea acquires Tata Steel becomes
the Tetley group, UK. The first Tata Group Co.
this is the first major to win the JRD QV award
acquisition of an Tata.
international brand by
an Indian Group.
2000 2000
2000 2000 2001
The Aditya Birla Significant changes Tata announces
Group, AT&T announced in the a partnership
and Tata Tata Sons board with AIG to offer
industries to improve corporate insurance and
sign an MOU governance. financial
to merge their services products
cellular properties in India
into a joint venture
AIG HISTORY : 1919 – PRESENT
1919 : C.V. Starr founds Americal Asiatic under writers.
1921 : Asia life insurance Co. is formed.
1926 : AAU opens American International under writers.
1930’s : AIU begins a Worldwide expansion.
1939 : Headquarters moved to New York.
1940’s : Latin America penetration begins
1946 : AIU becomes the first foreign insurance operation
allowed back into Japan & Germany after W WII.
1950’s : AIU’s presence includes over 75 offices Worldwide.
1960’s : Acquisition. Basic structure in place for DBG.
1967 : M.R. Greenberg becomes president and CEO. AIG
established as a holding Co.
1969 : AIG goes public.
1970’s : AIG acquires and creates specialty companies.
1984 : AIG lists its shares on the New York Stock Exchange.
1990’s : Expansion in China, Latin America, Israel, and the former
Eastern Bloc.
1990 : Financial Services begins expansion.
1992 : AIG becomes the first foreign the first foreign insurance
organization to receive an operating license from the
Chinese government.
1994 : AIG enters the untapped markets of Russia and Uzbekistan.
1996 : The Asian Infrastructure Fund raises $ 1.1 billion.
1998 : Reopening of the Bund Building.
1999 : Acquisition of Sun America Inc.
2001 : AIG Acquires American General AIG’s net income rises to
a record high of $ 7.66 Bn. Consolidated assets approximate
$ 492B.
SWOT ANALYSIS
STRENGTHS:
1. No. 1 Private Player in the insurance industry in India.
2. Life Insurance linked with Investments
3. Tax benefits
4. Security against loans
5. Helps in future planning and provides financial consultancy.
6. Covers risk.
WEAKNESS:
1. Negativity relating insurance and ‘Agents’.
2. No fixed Salary.
OPPORTUNITIES:
1. High Network Individuals (HNI)
2. A clear career path
3. All round support through exclusive advertising, own in house
consultant, and world-class training.
4. A comprehensive benefit package.
THREATS:
1. Dynamic environment
METHODOLOGY
Data can be classified under the two main categories, depending upon the
sources used for the collection purposes, i.e., ‘Primary data’ and
‘Secondary data’. The validity and accuracy of final judgement is most
crucial and depends heavily upon how well the data is gathered in the
first place. The methodology adopted for data gathering also affects the
conclusions drawn there from.
Primary data: Primary data are those data, which are collected by the
investigator himself for the purpose of a specific enquiry or study. Such
data are original in character and are generated by surveys conducted by
individuals or research institutions. Thus we can say that the data that is
being collected for the first time is called primary data.
Methods that can be used for collection of primary data are as follows:
Direct personal observation: Under this method, the
investigator presents himself personally before the
informant and obtains first hand information. This method
provides greater degree of accuracy.
Telephone survey: Under this method the investigator,
instead of presenting himself before the informants,
contacts them on telephone and collects information from
them.
Indirect personal interview: Under this method, instead
of directly approaching the informants, the investigator
interviews several third persons who are directly or
indirectly concerned with the subject – matter of the
enquiry and who are in possession of the requisite
information. This method is highly suitable where the
direct personal investigation is not practicable either
because the informants are unwilling or reluctant to
supply the information or where the information desired is
complex or the study in hand is extensive.
Questionnaire method: Under this method, the
investigator prepares a questionnaire containing a number
of questions pertaining to the field of enquiry. Under this
method, the investigator directly contact the person and
collect the information through questionnaire related to
the data. The aims and objectives of collecting the
information, and requesting the respondents to cooperate
by furnishing the correct replies and fill the questionnaire
with correct information. The success of this method
depends upon the proper drafting of the questionnaire and
the cooperation of the respondents.
Secondary data: When a person uses data, which has already been
collected by someone else, then such data is known as secondary data.
Secondary data should be used with extra caution since someone else has
collected it for his/her use. Before using such data the investigator must
be satisfied with regard to the reliability, accuracy, adequacy and
suitability of the data to the given problem under investigation.
Methods that can be used for collection of secondary data are as follows:
Published sources: There are a number of national
organisations and international agencies, which collect
and publish statistical data relating to business, trade,
labour, price, consumption, production, etc. These
publications of the various organisations are useful
sources of secondary data.
Unpublished sources: The records maintained by private
firms or business houses who may not like to release their
data to any outside agency are known as unpublished
sources of collection of secondary data.
Both ‘Primary data collection methods’ and ‘Secondary data collection
methods’ have various advantages as well as limitations. Thus it would
be prudent to use both these methods to one’s advantage.
More of the primary data has been used in this project.
INSURANCE ADVISOR
IRDA TRAINING
The Insurance Act, 1938 lays down that an insurance agent will be issued
a license under section 42 of the Act, by the IRDA of an officer
authorized by it in this behalf.
Tata AIG offices and approved by INSURANCE REGULATORY
AND DEVELOPMENT AUTHORITY (IRDA). A licence issued by
the IRDA will be valid for three years. The licence may be to act as an
agent for a life insurer, for a general insurer or as a “Composite Insurance
Agent” working for a life insurer as well as a general insurer.
An Insurance agent have undergone practical training for at least 100
hours in life or general insurance business. He should have also passed
the pre-recruitment examination conducted by the Insurance Institute of
India.
An Insurance Agent have to give a demand draft for Rs. 1000 payable in
favor of Tata AIG Life Insurance Co. Limited.
COMPETITION DISTRIBUTION STRATEGIES
TATA AIG AGENCY
Managing Director
Director - Agency Director – alternate channels
Asst. Director – Agency(Three Zones)
Zone Head
Agency Manager
Management Business Associate
Senior Business Associate
Business Associate
Insurance Advisor
Recruit and manage sales teams
Future to grow Earn – BIG !!!!!
CAREER GROWTH CHART
MANAGEMENT BUSINESS (4% of
SBA)
ASSOCIATES
SENIOR BUSINESS (8% of BA)
ASSOCIATES
(CAN’T GO BUSINESS ASSOCIATES (25% of Total
Advisors)
BEYOND THIS)
AGENTS (Upto 30%) ADVISORS (Upto
40%)
COMPARISION
Comparison between Tata AIG and other Insurance Company
OTHER INSURANCE COMPANIES
TATA AIG INSURANCE COMPANIES
MARKETING STRATEGIES OF
TATA AIG INSURANCE
TATA AIG HEALTH FIRST
Quality healthcare is expensive; you need a policy that covers all
contingencies. HealthFirst provides you with security by guaranteeing a
lump sum irrespective of your medical bills. You can purchase this policy
while your existing medical insurance policy is still in force and renew it
until age 64 without additional medical examinations.
Key features include:
THE BENEFITS SHOWN BELOW ARE FOR A POLICY
PURCHASED FOR 10 UNITS
Daily Hospitalization Benefit (DHB): During hospitalization, we
will pay an allowance of Rs. 2,500 per day.
Surgical Benefit: A lump sum of Rs. 1,25,000 is paid for specified
surgical procedures. We pay the complete amount, even if the
procedures costs less. This benefit is payable only if DHB is
payable.
Post-hospitalization Benefit: After hospitalization, we will pay Rs.
1,250 a day for follow-up treatment (up to a maximum of 3 days).
This benefit is payable only if DHB is payable.
Critical Illness Cover: You get Rs. 12.50 lakhs in the case of first
diagnoses of specified of the 12 critical illnesses.
Death Benefit: In the unfortunate event of your death, coverage of
Rs. 10,000 is provided to protect your family.This benefit is
payable if no other benefit has been claimed for.
Policy can be purchased from 1 to 10 units.
TAX BENEFITS AND AGE ELIGIBILITY
Premiums paid for Health Insurance Benefits are eligible for tax
benefits under section 80D, while premiums for Life Insurance
Benefits are eligible for tax benefits under section 80C of the
Income Tax Act, 1961.*
Policy available for persons between 18 and 60 years of age.
Treatment must occur at a pre-approved hospital.
MAHALIFE GOLD
This unique policy is an ideal planning vehicle to fund your
retirement. It provides a steady income and insurance coverage for
life. Premiums are payable only for the first 15 years, and can be used
to cover the future expenses of your children.
Key features include:
A guaranteed annual coupon of 5% of the sum assured every
year for the rest of the insured’s term from the 10th policy
anniversary.
Yearly cash dividends are available from the 6th policy
anniversary onwards (depending on Company performance).
The entire sum assured is paid tax-free as per current Income
Tax Laws.
INVESTASSURE GOLD
InvestAssure Gold is a non-participating Whole Life Unit Linked
insurance plan, which offers you the unique advantage of
combining the protection and tax advantages of life insurance with
the attractive prospects of investing in different kinds of securities
through multiple fund options. With this plan, you can direct the
investments by creating your own investment fund portfolio from a
range of options to suit your needs and preferences.
Key features include:
Flexibility to choose your premium payment term: 5 years or
for the entire duration of the policy.
Benefit period: For the entire life till 100 years of age.
Facility to increase the premium through Top up Premium.
Provides security to your family in case of your unfortunate
death.
Facility to increase the Sum Assured through Top up
Premium.
Gives you the flexibility to choose your fund based on your
risk profile - Whole Life Mid Cap Equity, Whole Life
Aggressive Growth, Whole Life Stable Growth, Whole Life
Income, and Whole Life Short Term Fixed Income. You
may choose to switch between the funds, anytime subject to
certain conditions.
Enables you to enjoy market-linked returns with a potential
for higher growth.
Opportunity to bring you additional income on funds that
might have otherwise given you minimum returns in your
savings account, subject to market performance.
Loyalty Benefit: Additional 0.25% of units under the
Regular Premium Account every 5 years provided the policy
is in force.
INVESTASSURE PLUS
InvestAssure Plus is a single premium Unit Linked insurance plan
especially designed for the investment-savvy. It gives you the
flexibility of choosing your own investment strategy, besides
providing protection to your loved ones in case of a misfortune.
This plan gives you an opportunity to make the most of good market
returns, albeit with an increased investment volatility. At the same
time, it does not compromise the security that you want to provide to
your loved ones.
Multiple benefits of Invest Assure Plus:·
Provides security to your family in case of your unfortunate
death.
Gives you the flexibility to choose your fund based on your risk
profile.
Enables you to enjoy market-linked returns with a potential for
higher growth.
Key features include:
Policy terms of 15, 20, 25 or 30 years.
No penalty charges for surrendering the policy any time after
the 3rd year.
Flexibility to choose your Sum Assured, depending on your age
profile and your needs.
You have a choice of premium multiples to choose from.
Any premium not deducted for coverage and charges will be
invested in the funds chosen by you viz. Equity Fund, Income
Fund, Aggressive Growth Fund, Stable Growth Fund and a
Short Term Fixed Income Fund.
Flexibility to switch between funds and partial withdrawal.
InvestAssure Plus also offers Top-ups premiums and the facility
to have a Sum assured on the Top-up premium as well.
Tax Benefits
Premiums paid under this plan are eligible for tax benefits under
Section 80C of the Income Tax Act, 1961. Any sum received
under this plan is exempt from tax under section 10(10D) of the
Income Tax Act, 1961.*
Age Eligibility
Term of Policy Minimum Age
Maximum Age
15 years 30 days 60 years
20 years 30 days 55 years
25 years 30 days 50 years
30 years 30 days 45 years
Maturity and Death Benefits
LIFE PLUS
If you outlive the 20-year term of a LifePlus policy, all of your
premium payments will be refunded; if you die by natural causes
while the policy is in force, your beneficiaries will receive the sum
assured; should you die due to accidental causes, your beneficiaries
will receive double the sum assured.
Key features include:
All premiums paid are returned (without interest) in the event
you outlive the policy’s 20-year term.
Premiums are payable only for the first 15 years of the 20-year
term.
ASSURE 21 YEARS MONEY SAVER
This savings plan gives you the cash payments at specified intervals to
fund your family’s needs at critical milestones or support your
financial obligations. You get the dual benefits of life insurance
coverage plus the flexibility of periodic payments.
Key features include:
10% of the sum assured is paid on survival on the 3rd /6th
/9th /12th /15th and 18th policy anniversaries.
40% of the sum assured will be paid on maturity (i.e. on the
21st anniversary of this policy).
The entire sum assured is distributed to your beneficiaries,
irrespective of cash payments already made, in the unfortunate
event of your death before the end of the policy’s term.
A 10% Guaranteed Addition is payable on death or maturity, if
the policy has been inforce for 10 years.
A reversionary and terminal bonus payable on death or
maturity. Terminal bonus is available only if policy is in force
for more than 10 years.
Bonuses are paid depending on performance of the company.
MAHALIFE
This distinctive policy provides a steady income and insurance
coverage for life. Premiums are payable only for the first 12 years.
You can even use this to cover future expenses of your children.
Key features include:
A guaranteed annual coupon of 5% of sum assured, every
year for the rest of the insured’s life from the 12th policy
anniversary onwards.
If Tata AIG Life performs well, you get yearly cash dividend
from the 6th policy anniversary onwards.
On death or at maturity at age 100, the entire sum assured
will be paid tax-free according to current Income Tax Laws.
SHUBHLIFE
Have you been delaying getting life insurance because you cannot
afford to pay high monthly premiums? Then we have the ideal
product for you.
ShubhLife provides you 100% life insurance protection and a range
of bonuses but the premiums you pay are among the lowest of any
similar endowment policy.
Key features include:
Term policies just give you death cover. This policy gives
you bonuses along with death cover.
You can choose a term of 10, 15, 20, 25 or 30 years.
Apart from full premium paying term, you can pay your
premiums over 3, 5, 7 or 10 years.
Guaranteed addition of 3% of sum assured of the Basic
Policy is added on the first (1st) policy anniversary and on
every alternate policy anniversary thereafter up till a
maximum of half the policy term. The GA will be payable if
the insured dies while the policy has been in force or if the
policy matures.
A simple reversionary bonus will be credited from the sixth
policy anniversary until the end of the plan term depending
on the performance of our Company.
TAX BENEFITS, RIDERS AND AGE ELIGIBILITY
Premiums paid under this plan are eligible for tax benefits
under Section 80C of the Income Tax Act, 1961. Any sum
received under this plan is exempt from tax under section
10(10D) of the Income Tax Act, 1961.*
Attach Disability, Accident, Term, Waiver of premium and
Critical Illness riders to this policy for added protection.
Endowment Plan Age Eligibility
10 Years 18 to 65 Years
15 Years 18 to 60 Years
20 Years 18 to 55 Years
25 Years 18 to 50 Years
ASSURE GOLDEN YEARS PLAN
Assure Golden Years is an endowment policy that provides both
safety and steady returns. In the unfortunate event of your death,
your dependants will receive the sum assured; otherwise your
savings will continue to grow. Should you live past the term of the
policy, you will receive both the sum assured as well as a host of
bonuses.
Key features include:
A guaranteed addition of 10% of the sum assured if the
policy has been in force for 10 years or more, is payable on
death or maturity.
A reversionary bonus is payable on death or maturity.
A Terminal bonus paid on maturity or death if the policy has
been in force for a minimum 10 years.
Reversionary and Terminal bonuses are non-guaranteed and
are dependent on Company performance.
TATA AIG LIFE NIRBHAY LIFE
Tata AIG Life has a whole new participating plan which will
surprise you continually with its remarkable benefits. Premiums
are payable only for the first 9 years, after which you will
receive all your money and much more!
You can opt for a policy that lasts 12, 15 or 20 years.
During the term of the policy, you will receive 130% of the sum
assured.
Tax Benefits, Additional Benefits and Age Eligibility
Premiums paid under this plan are eligible for tax
benefits under Section 80C of the Income Tax Act, 1961.
Any sum received under this plan is exempt from tax
under section 10(10D) of the Income Tax Act, 1961.*
For insured age of less than 18 years, the Payor benefit is
inbuilt.
For insured age of 18 years and above, waiver of
premium and accidental death benefit are inbuilt.
FINDINGS
QUESTIONNAIRE ANALYSIS
Q.1. Have you taken life Insurance for you?
Yes No
57% 43%
INFERENCE:
57% of the Respondents had taken the life insurance
However 43% of the Respondents had not taken any policy
Q.2. Who is your Insurer
LIC Private Sector Insurer Both
75% 19% 6%
INFERENCE:
75% of the respondents felt that the lic os best policy
While 19% of respondents thought it was not so good, 6% thought that
both policy are good
Q.3. What made you buy from Private Sector?
Better
Service
Attractive
Plans
Better
Returns
Agent
known
Other
22% 27% 37% 9% 5%
INFERENCE:
22% people said that they buy from private sector because of better
service,27% thought because of attractive plans 37% because of better
returns and 9% because of agent known to them and 5 % of some other
factor
Q.4. Who is your Agent?
Old family agent
for years
Professional Acquaintance/
Someone
referred
Friend/Family
member/relative
Other
17% 27% 12% 42% 2%
INFERENCE:
17% agent are old family agent, 27% are professional,12% are acquaintance,
42% are family and friends while 2% are others
Q.5. How much is the maximum annual income a layman can think of
for an Insurance Agent?
Upto Rs. 5 lacs Rs. 5 to Rs.
10 lacs
Rs. 10 to Rs.
50 lacs
Rs. 50 lacs +
77% 16% 6% 1%
INFERENCE:
77% People think that an insurance agent has 5lacs salary annually, 16%
thinks that it is upto 10 lacs, 6% thinks that it is upto 50 lacs and 1 %
thinks that it is above 5o lacs
Q.6. Given an opportunity, would you like to earn a big and stable
income by being a part of Tata AIG?
Yes No
87% 13%
We
INFERENCE:
87% people said that they will be part of tata aig in future
13% said that they will not be the part of tata aig
RECOMMENDATIONS
RECOMMENDATIONS
More emphasis should be on promotional activities.
Plenty of advertisement should be done through T.V, Newspaper
and Radio as these media’s are having maximum recall value.
Total financial planning and advice should be given to every
customer.
More business opportunity seminars should be conducted to make
people aware of the offer given.
The company should quite frequently send their agent to the
customer so that they should be aware of the latest offer.
The company should attempt to open more and more of its
branches in the country so as to promote their product publicity.
CONCLUSION
After making an in depth study about the Tata AIG Insurance Co., have
come to the conclusion that there has been tremendous changes in the
Insurance History. And with it there has been continuous growth in this
sector both in Indian as well as world context. The opening up of
Insurance Sector has changed the whole look of Insurance Industry.
A joint venture between Tata and AIG has shown a positive progress in
Insurance Industry. Tata AIG has been growing year after year and this
company has made a strong position in India. It has become the number
one company in customer satisfaction.
The game is old but the rules are new and still developing. The same
strategy adopt by Tata AIG. Insurance Agent has a career growth
opportunity in this Insurance Co. as compare to other Insurance Co. An
Insurers advisor of Tata AIG can earn a big and stable income by being a
part of Tata AIG Insurance Company.
LIMITATIONS
Every study has to have limitations in terms of time cost, human error &
so on the best efforts were put in to get information from the company.
During the entire research period witch spanned for 2 months there were
certain constraints faced because of circumstances and capabilities. The
research conducted was under the following constraints :
There are - neck to neck competition between Insurance Companies.
As the project had a time limit of 8 weeks. Getting appointments from
the respondents takes time.
Non participation of the respondents in the research process due to
fear of disclosing the details about the influencers.
Time and distance were another factor that sewed as the limitation
since located in outskirts of Delhi.
The company did not gave any information regarding the finance.
QUESTIONNAIRE
CHANGING PROFILE OF INSURANCE AGENT
A PRACTICAL CASE STUDY
Respondent Details
Name: Date of Birth:
Age:
Address:
Telephone: (Mobile) (off) (Resi)
Marital status: Single / Married Sex: M / F
Education: Undergraduate / Graduate / Post Graduate
Occupation:
TICK IN THE APPROPRIATE ANSWERS GIVEN BELOW.
(1) Have you taken Life Insurance for you?
Yes / No
(IF YES MOVE TO SET 1 ; IF NO MOVE TO SET 2)
SET 1
(2) Who is your Insurer?
(a) LIC
(b) Private Sector Insurer
(C) Both
(if the choice is (b) or (c) for question number 2 then answer 3
otherwise move to 4)
(3) What made you buy from private sector?
a) Better service
b) Attractive plans
c) Better returns
d) Agent known
(4) Who is your agent?
(a) Old family agent for years
b) Professional
c) Acquaintance / someone referred
d) Friend / family member / relative
(5) What do you think is expected of an Insurance Agent?
a) Better service
b) Knowledge of product & competition
c) Analysing needs & suggest right product
d) Must be well-known
(Move to set III)
Set - II
(6) What is the reason of your not being Insured?
a) I am too young to have Life Insurance
b) Cannot afford
c) Do not need Insurance - no Dependents
d) No one ever guided me properly
(7) If you think of buying an Insurance policy, what qualities would you
look for in the Agent?
a) Better service
b) Knowledge of product & competition
c) Analyze need & suggest right product
d) Must be well-known
(move to set III)
Set - III
How much is the maximum annual income you can think of for an
Insurance Agent?
a) Up to Rs. 5 lakhs
b) Rs. 5 to 10 lakhs
c) Rs. 10 - 50 lakhs
d) Rs. 50 lakhs +
Prompt: Are you aware that AIG has a large number of insurance
advisor who are making many times more than Rs. 50 lakhs per annum
and in TATA AIG, in India, there are advisor who have started touching
the 50 lakhs figure and are slated to achieve much more than that within
this year.
(8) Are you aware of a large number of successful insurance advisor of
a company growing up the value change and becoming leaders with
stable earning of much more than Rs. 50 lakhs per annum?
Yes / No
Prompt: AIG offers a growth plan to its advisor worldwide and a large
number of such business partner earn more than one million dollars per
annum. Similar plan in India makes the advisor grow into Business
Associate, who recruit, develop and manage large sales team. Successful
Business Associate are earning up to more than Rs. 25 lakhs per annum,
with the income growing rapidly every year. The day of Indian
Millionaires (In US dollar terms) is not far.
(9)Do you think that future lives in service & knowledge sectors?
Yes / No
(10) Do you believe you have the capability to get fresh knowledge and
use it in betterment of the society by analzing their needs & providing
right solutions?
Yes / No
(11) Do you believe you have the capability of successfully leading a
team?
Yes / No
(13) Given an opportunity, would you like to earn a big and stable
income by being a part of Tata AIG?
Yes / No
Prompt: TATA AIG is a joint venture of the well-known, well respected
and the most trusted TATA Group of India & AIG (American
International Group) the biggest insurer in the world by market value.
Present in over 130 countries, AIG has assets of over $ 600 billion &
annual income of over $ 10 billion. AIG ranks among the top in FORBES
& FORTUNE 500 companies & is the only AAA rated company in the
world.
(14) Do you know someone who could be interested in taking up
insurance selling as a career?
Yes / No
(if answer to question number 14 is Yes please take the details on a
separate sheet)
Trainee Name……………………City………………
Institute………………..
Remarks……Very Interested / Interested / Not Interested Follow
UPdate……………..
BIBLIOGRAPHY
WWW.TATAAIGINSURANCE.COM
WWW.TATA.COM
WWW.AIG.COM
WWW.INSURANCE.COM
WWW.GOOGLE.COM
WWW.YAHOO.COM
COMPANY PROVIDED MATERIAL
TEXT BOOK FOR LIFE INSURANCE PRESCRIBED BY IRDA.
TATA AIG BROSHERS
MAGAZINES AND NEWSPAPERS
COMPANY LITERATURE
MARKETING RESEARCH