Embed Size (px)
Citation preview
SUMMER TRAINING PROJECT REPORT
ON
Comparative analysis of insurance Companies with
special reference to products & consumer behavior
AT
ING Vysya Life Insurance Company Ltd
SUBMITTED TO- SUBMITTED BY-
DECLARATION
I hereby declare that the project work entitle “Comparative
analysis of insurance Companies with special reference to
products & consumer behavior AT ING Vysya Life
Insurance Company Ltd” Submitted at the NSB SCHOOL OF
BUSINESS as a summer training project report for the partial
fulfillment of the two years full time Master of Business
Administration (MBA) in marketing as an authentic work
developed by me at ING VYSYA LIFE INSURANSE
COMPNEY LIMITED , Nehru Place New Delhi from 22nd
April 2008 to 21st July 2008. This work has not been submitted
in part or full to this or any other university/ Institute for any
Degree or Diploma and does not form part of any other course
undergone by me.
Akhilesh Tripathi
NSB School of Business
B-II/66, M.C.I.E. Badarpur
New Delhi-110044
2
TABLE OF CONTENTS
ACKNOWLEDGEMENT………………………………………………….4
PREFACE…………………………………………………………………...6
EXECUTIVE SUMMARY………………………………………………….8
ABOUT LIFE INSURANCE……………………………………………….9
ABOUT IRDA………………………………………………………………11
DUTIES AND OBLIGATION OF AN AGENT………………………..….14
HISTORY OF ING VYSYA…………………………………………….….17
INSURANCE IN INDIA……………………………………………….…. 19
EXECUTIVE SUMMARY-ING……………………………………….…..39
PRODUCTS OFFERD BY ING VYSYA LIFE……………………….…..40
COMPARATIVE ANALYSIS OF LIC AND ING LIFE PRODUCTS.…..86
FACT AND FINDINGS …………………………………………………..113
DATA ANALYSIS AND INTERPRETATION…………………………..114
LIMITATION……………………………………………….…………..…121
CONCLUSION……………………………………………..…………..…122
SUGGESTION……………………………................................................124
RECOMMENDATIONS…………………………………………………125
BIBLIOGRAPHY……………………………………………………...…127
3
ACKNOWLEDGMENT
Progress in life of any project comes through taking initiative and
continuing on with new concepts and Ideas, the original momentum
is not enough to keep your moving forward. Your progress will grind
to halt unless you refill your engine of inspiration with fuel of fresh
ideas and enthusiasm and proper guidance. I take this opportunity
of acknowledge those who have a great helping hand to make this
research work successful. I am really grateful to sales manager Mr.
Jayant Manohar & Mr Mayank Mishra for his amazing guidance
& constant support to me throughout my training process. They not
only infused sense of motivation but also proved to me my northern
star in every sense. Without their coordination, I could not have
been able to successfully complete this wonderful & enriching
journey at Ing Vysya Life Insurance. The quality of my training was
greatly enhanced by his gracious guidance and assistance. I would
like to thank my parents for providing me with values and virtues
that has and will help me throughout my career.
I would also like to thanks Mr. Arpan Kothiyal, Branch Manager,
the staff of ING VYSYA Life Insurance, Nehru Place Branch. I am also
deeply indebted to all the faculty members of NSB School of
Business and Prof. Alok Satsangi, Corporate Placement Cell of
NSB School of Business Without their help this project would have
never been completed. Also is would like to extend my gratitude to
Mr. Nikhil Kulsrestha (Associate Dean of NSB School of Business).
I would also like to express my sincere thanks and gratitude to all
the staff member of Ing Vysya Life Insurance Company, without
4
whose constant support and cooperation this training would not
have been a success.
I extend my thanks for all those involved in making this project a
success.
(AKHILESH TRIPATHI)
5
PREFERENCE
“Insurance is a contract between two parties whereby one party
called Insurer undertakes in exchange for a fixed sum called
premiums, to pay the other party called insured a fixed amount
of money on the Happening of a certain event.”
Insurance is a protection against financial loss arising on the
happening of an unexpected event. Insurance companies collect
premiums to provide for this protection. A loss is paid out of the
premiums collected from the insuring public and the insurance
companies act as trustees to amount collected.
A family counts on the bread earner every day for the financial
support: food, shelter, transportation, education, and much more.
Insurance provides a unique sense of security that no other form
of investment provides. It gives insured a sense of financial
support during the time of crisis irrespective of fluctuations in
the stock market. Insurance provides for your career goal from
right from the childhood years.
6
Insurance is desire to safeguard oneself and one’s family against
possible losses on account of risks and perils. It provides
financial compensation for the losses suffered due to the
happening of any unforeseen events. By taking insurance a
person can have a piece of mind and need not worry about the
financial consequences in the case of any untimely death.
Life is all about making sure your family has adequate financial
resources to make those plans and dreams come true. It provides
financial protection to help your family or businesses to manage
after insured’s death.
7
EXECUTIVE SUMMARY
In today’s 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 ING VYSYA
LIFE INSURANCE 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 market
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 RELIANCE LIFE INSURANCE, TATA AIG, MAX etc have
adequate agents in the market they can capture big market as
compared to the other companies. Agents are the only way for a
company of Insurance sector through which policies and benefits of
the company can be explained to the customer .
8
ABOUT LIFE INSURANCE
Life insurance or life assurance is a contract between the
policy owner and the insurer, where the insurer agrees to pay a
sum of money upon the occurrence of the insured individual's or
individuals’ death or other event, such as terminal illness or
critical illness. In return, the policy owner (or policy payer)
agrees to pay a stipulated amount called a premium at regular
intervals or in lump sums. There may be designs in some
countries where bills and death expenses plus catering for after
funeral expenses should be included in Policy Premium. In the
United States, the predominant form simply specifies a lump
sum to be paid on the insured's demise.
As with most insurance policies, life insurance is a contract
between the insurer and the policy owner (policyholder)
whereby a benefit is paid to the designated beneficiary (or
Beneficiaries) if an insured event occurs which is covered by the
9
policy. To be a life policy the insured event must be based upon
life (or lives) of the people named in the policy.
Insured events that may be covered include: Serious illness
Life policies are legal contracts and the terms of the contract
describe the limitations of the insured events. Specific
exclusions are often written into the contract to limit the liability
of the insurer; for example claims relating to suicide, fraud, war,
riot and civil commotion.
Life based contracts tend to fall into two major categories:
Protection policies - designed to provide a benefit in the event of
specified event, typically a lump sum payment. A common form
of this design is termed insurance.
Investment policies: - where the main objective is to facilitate
the growth of capital by regular or single premiums.
10
THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
Duties, Powers and Functions
Section 14 of IRDA act,1999 lays down the duties, powers and functions of IRDA.
Subject to the provisions of this act and any other law for the time being in force, the authority shall have the duty to regulate ,promote and ensure orderly growth of the insurance business and re-insurance business.
Without prejudice to the generality of the provisions contained in sub-section(1),the powers and functions of the authority shall include,
1. Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration;
2. Protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance;
3. Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents;
11
4. Specifying the code of conduct for surveyors and loss assessors;
5. Promoting efficiency in the conduct of insurance business;
6. Promoting and regulating professional organizations connected with the insurance and re-insurance business;
7. Levying fees and other charges for carrying out the purposes of this act;
8. Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with insurance business;
9. Control and regulations of the rates, advantages, terms and conditions that may be offered by insurer in respect of general insurance business not so controlled and regulated by the tariff advisory committee under section 64U of the insurance act,1938(4 of 1938).
10. Specifying the form and manner in which book of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries;
11. Regulating investment of funds by insurance companies;12. Regulating maintenance of margin of solvency;
12
13 Adjudication of disputes between insurers and intermediaries or insurance intermediaries;
14. Supervising the functioning of the tariff advisory committee;
15. Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause(f);
16. Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; and
17. Exercising such other powers as may be prescribed;
Essentials for the license
The IRDA has prescribed both qualifications and disqualification for a person to be given a license.
QUALIFICATIONS
The person must :-
Be at least 18 years of age;
Have passed at least 12th standard or more (if he is appointed in a place with population 5000 or more),10th standard otherwise;
Have undergone training for at least 100 hours in life or general insurance business as the case may be from an institution, approved and notified by the authority;
13
Should have also passed the pre-recruitment examination conducted by the Insurance Institute of India or any other examination body recognized by the authority.
In case of an applicant for the composite insurance agent, he/she should have completed at least 150 hours practical training in life & general insurance business, which may be spread over six to eight weeks.
DISQUALIFICATIONS
The factors that would debar a person from obtaining a license are that he/she
Has been found to be of unsound mind by a court of competent jurisdiction
Has been found guilty of criminal breach of trust, misappropriation, cheating, forgery or abetment or attempt to commit any such offence.
The license once issued can be cancelled whenever the person acquires a disqualification. In the case of companies & firms who want to become agents, the test of qualification & disqualification would be applied to all the directors or partners.
There are two separate forms, one for individuals & another for those other than individuals, in which the applications are to be made. The two forms are numbered by IRDA-Agent VB & are annexed to the regulation. The applications in the
14
respective forms have to be made to the designated person appointed buy the insurer sponsoring the application.
The application for the license should be accomplished by proofs.
Of fee having been remitted to the authority.
Of age
Of having completed the training & passed the prescribed examination.
The fee to be sent to the authority directly is Rs. 250 for new license & for renewals applied for within the prescribed period, viz, at least 30 days before the date of expiry. If the application is made after the date of expiry it would be normally refused. But, if the authority is satisfied that hardship would be caused otherwise, the license may be renewed. Prior to renewal of the license of the license the agent should have completed at least 25 hours practical training in life or general insurance business or at least 50 hours practical training in life & general insurance business in the case of a composite insurance agent.
The Duties & Obligations of the Agent
As per the IRDA guidelines every advisor must be trained & licensed to sell life insurance. The responsibilities & obligations of the advisors have been clearly defined.
15
Every insurance agent should himself & the insurance company that he represents along with the license particulars.
The advisors should take into the actual needs of the clients before recommending a plan.
All requisite information in respect of the products recommended should be provided with a 'Sales Illustration' & the premium to be paid.
The agent is obligated to disclose the scales of commission likely to be earned by him through sale of the recommended product, should the client wish to know it.
The nature of information required in the application form should be adequately explained along with the requirement for supporting documents.
Once the proposal is submitted, the advisor shall inform the status of decision by insurer promptly.
In case of a claim, the advisor is required to render necessary assistance in complying with the requirements for settlement of claims by the insurer.
He/she should not interfere with any proposal introduced by any other any insurance advisor/agent or force the client to terminate an existing policy taken from him/her & take a new proposal within 3 years.
16
An advisor cannot induce the client to omit any material information or submit any wrong information in the proposal form.
Further no rebating or offering any inducements in lieu of taking a policy is allowed.
Code of Conduct for the Agent
The licensing of Insurance Agent Regulations, 2000 lays down a code of conduct for the agents which state that the agent shall
Disclose the license to the prospect on demand.
Explain all available options to the prospect.
Disclose the scales of commission, if asked for by the prospect.
Impress upon the prospect need to disclose all information
Inform the insurer about any adverse habits & materials facts of the person to be insured.
Convey to the proper about the acceptance or rejection of the proposal.
Render necessary assistance to policy holders or claimants or beneficiaries in complying with the requirements, asked for by the insurer. Advise policy holders to affect nomination.
17
Make every attempts to ensure remittance of premiums by the policy holders within the stipulated time by giving notice orally or in written.
Not induce the prospect to submit any wrong information.
Not interfere with the proposal introduced by other insurance agents.
Not demand or receive share of proceeds under an insurance contract.
Not cause the termination of an existing policy with a view to effect a new proposal.
18
HISTORY
Insurance began as a way of reducing the risk of traders, as early
as 5000 BC in China and 4500 BC in Babylon. Life insurance
dates only to ancient Rome; "burial clubs" covered the cost of
members' funeral expenses and helped survivors monetarily.
Modern life insurance started in late 17th century England,
originally as insurance for traders: merchants, ship owners and
underwriters met to discuss deals at Lloyd's Coffee House,
predecessor to the famous Lloyd’s of London.
The first insurance company in the United States was formed in
Charleston, South Carolina in 1732, but it provided only fire
insurance. The sale of life insurance in the U.S. began in the late
1760s. The Presbyterian Synods in Philadelphia and New York
created the Corporation for Relief of Poor and Distressed
Widows and Children of Presbyterian Ministers in 1759;
Episcopalian priests organized a similar fund in 1769. Between
19
1787 and 1837 more than two dozen life insurance companies
were started, but fewer than half a dozen survived.
Prior to the American Civil War, many insurance companies in
the United States insured the lives of slaves for their owners. In
response to bills passed in California in 2001 and in Illinois in
2003, the companies have been required to search their records
for such policies. New York Life for example reported that
Nautilus sold 485 slaveholder life insurance policies during a
two-year period in the 1840s; they added that their trustees
voted to end the sale of such policies 15 years before the
Emancipation Proclamation.
INSURANCE IN INDIA20
Insurance in India started as life insurance back in 1818, when it
was introduced for English Widows. Even till the end of the
nineteenth century, Insurance Companies in India were mainly
the overseas companies investing in the insurance works in
India. An interesting fact here was that higher premiums were
charged for Indian lives, as they were considered riskier for
insurance cover.
The Indian Government took various steps for the regulation of
insurance in India by passing various insurance laws and acts.
These include:
Life Insurance Companies Act, 1912
22
Provident Fund Act 1912
Insurance Act of 1938
Life Insurance Corporation Act, 1956
General Insurance Business (nationalization) Act, 1972
Insurance Regulatory and Development Authority (IRDA) Act,
1999
In 1972, the General Insurance Company was nationalized with
four main subsidiaries National Insurance Company, New India
Insurance Company, Oriental Insurance Company and United
India Insurance Company. Today Insurance Companies in India
have grown manifold. The insurance sector in India has shown
immense growth potential. Even today a giant share of Indian
population nearly 80% is not under life insurance coverage, let
alone health and non-life insurance policies. This clearly
indicates the potential for insurance companies to grow their
market in India.
23
In 1999, various reforms were suggested in the insurance
industry in India. This has changed a lot of things for the
insurance companies in India. These reforms were:
Bringing down of the governments stake holding to 50%
Only the private companies with a minimum capital of Rs.100
crores should be allowed to enter the insurance sector.
No insurance company can deal in both life and non-life
insurance under the same business entity.
Foreign Insurance Companies can enter India only in
collaboration with domestic insurance companies
Interest should be paid on delays of payments by the insurance
companies in case of non settlement of insurance claims.
And many more to bring greater freedom and a well-planned
regulation to the insurance companies in India.
The various fields covered by insurance companies in India
include:
24
Life Insurance: For students, children, family, individual etc.
Health insurance: For self, for family, accidental insurance
premium, medical claim policies etc.
Non-life insurance: Home or House Insurance and other
property insurance, Auto Insurance (for cars, motorcycle and
other two-wheelers, commercial vehicles), Infrastructure
Projects Insurance, Travel Insurance, real estate insurance,
mobile insurance etc.
Another field coming up in insurance is re-insurance. This is
insurance for the insurer. Re-insurance helps the primary
insurers to accept risks that are normally beyond their capacity
and also in maintaining the financial stability in case of losses
due to mass settlement cases in catastrophic events. The general
insurance company (GIC) is the major player in re-insurance in
India. It assumes the role of national reinsurer and all the
insurance companies in India are supposed to pay 20% of their
re-insurance businesses to GIC.
25
The insurance companies employ insurance agents and brokers
to sell their insurance policies and products. A work license
from the insurance regulation department is must to sell any
insurance plans. The insurance premiums offered vary from
company to company and also from the policy to policy. The
premium asked depends on the risk factor involved like
mentioned earlier in the case of riskier life of Indians in the
British rule demanded higher premium.
The insurance jobs include an insurance quote by the insurance
company, usually conveyed by the insurance broker or agent,
filling up of forms for your complete information and contact
details, written documents for the insurance premium offered in
the quote, term of the insurance taken, the prices charged for the
services, and a brief on the details of the claim process and
settlement terms. The insurance claims can be made as direct
claim or third party claims; information regarding this is given
by your insurance providers.
26
You can also contact an insurance agency for info on the types
of insurance available, the estimate prices of the insurance
policies, and a lead on the insurance product best suited for your
requirement. Besides this, many websites also provide this
information and also an online insurance estimator along with
the ratings for the top insurance companies in India that help
you in deciding the insurance compan from where to buy the
insurance product chosen.
List of Life Insurers (as of Sept, 2008)
Apart from Life Insurance Corporation, the public sector life
insurer, there are 17 other private sector life insurers, most of
them joint ventures between Indian groups and global insurance
giants.
Life Insurer in Public Sector
1. Life Insurance Corporation Of India
Life Insurers in Private Sector
1. ICICI Prudential Life Insurance
27
2. Bajaj Allianz Life Insurance
3. MYNL Life Insurance
4. Sahara Life Insurance
5. Tata AIG Life
6. HDFC Standard Life
7. Birla Sun life
8. SBI Life Insurance
9. Kotak Mahindra Old Mutual Life Insurance
10. Aviva Life Insurance
11. Reliance Life Insurance Company Limited
12. Metlife India Life Insurance
13. ING Vysya Life Insurance
14. Max New York Life Insurance
15. Shriram Life Insurance
28
16. Bharti AXA Life Insurance Co Ltd
17. Future General Life Insurance Co Ltd
18. IDBI Fortis Life Insurance Co Ltd
19. AEGON Religare Life Insurance Co Ltd
20. DLF and Pramerica ( will soon Launch the
operations)
Top 10 Insurance Companies of India
S.No. Site
1. Life Insurance Corporation Of India
2. Tata AIG Insurance Solutions
3. AVIVA Life Insurance
4. MetLife
5. ING Vysya Life Insurance
6. Birla Sun Life Financial Services
7. MAX New York Life
8. Aditya Birla Group
9. MAX NEW YORK
29
Major Players in The Insurance Industry
In India
Life Insurance Corporation of India
(LIC)
Life Insurance Corporation of India (LIC) was
established on 1 September 1956 to spread the
message of life insurance in the country and
mobilise people's savings for nation-building
activities. LIC with its central office in Mumbai
and seven zonal offices at Mumbai, Calcutta,
Delhi, Chennai, Hyderabad, Kanpur and Bhopal,
operates through 100 divisional offices in
important cities and 2,048 branch offices. LIC
has 5.59 lakh active agents spread all over the
country.
31
The Corporation also transacts business abroad
and has offices in Fiji, Mauritius and United
Kingdom. LIC is associated with joint ventures
abroad in the field of insurance, namely, Ken-
India Assurance Company Limited, Nairobi;
United Oriental Assurance Company Limited,
Kuala Lumpur; and Life Insurance Corporation
(International), E.C. Bahrain. It has also entered
into an agreement with the Sun Life (UK) for
marketing unit linked life insurance and pension
policies in U.K.
General Insurance Corporation of India
(GIC)
The general insurance industry In 1995-96, LIC
had a total income from premium and
investments of $ 5 Billion while GIC recorded a
net premium of $ 1.3 Billion. During the last 15
32
years, LIC's income grew at a healthy average of
10 per cent as against the industry's 6.7 per cent
growth in the rest of Asia (3.4 per cent in
Europe, 1.4 per cent in the US).
LIC has even provided insurance cover to five
million people living below the poverty line, with
50 per cent subsidy in the premium rates. LIC's
claims settlement ratio at 95 per cent and GIC's
at 74 per cent are higher than that of global
average of 40 per cent. Compounded annual
growth rate for Life insurance business has been
19.22 per cent per annum in India was
nationalized and a government company known
as General Insurance Corporation of India (GIC)
was formed by the Central Government in
November 1972. With effect from 1 January 1973
the erstwhile 107 Indian and foreign insurers
33
which were operating in the country prior to
nationalization, were grouped into four operating
companies, namely, (i) National Insurance
Company Limited; (ii) New India Assurance
Company Limited; (iii) Oriental Insurance
Company Limited; and (iv) United India
Insurance Company Limited. (However, with
effect from Dec'2000, these subsidiaries have
been de-linked from the parent company and
made as independent insurance companies). All
the above four subsidiaries of GIC operate all
over the country competing with one another
and underwriting various classes of general
insurance business except for aviation insurance
of national airlines and crop insurance which is
handled by the GIC.
34
Besides the domestic market, the industry is
presently operating in 17 countries directly
through branches or agencies and in 14
countries through subsidiary and associate
companies.
IN ADDITION TO ABOVE STATE INSURERS THE FOLLOWING HAVE BEEN PERMITTED TO ENTER INTO INSURANCE BUSINESS: -
The introduction of private players in the
industry has added to the colors in the dull
industry. The initiatives taken by the private
players are very competitive and have given
immense competition to the on time monopoly of
the market LIC. Since the advent of the private
players in the market the industry has seen new
and innovative steps taken by the players in this
sector. The new players have improved the
service quality of the insurance. As a result LIC
35
down the years have seen the declining phase in
its career. The market share was distributed
among the private players. Though LIC still holds
the 75% of the insurance sector but the
upcoming natures of these private players are
enough to give more competition to LIC in the
near future. LIC market share has decreased
from 95% (2002-03) to 82 %( 2004-05).
36
1. HDFC Standard Life Insurance Company
Ltd.
HDFC Standard Life Insurance Company Ltd. is
one of India's leading private life insurance
companies, which offers a range of individual
and group insurance solutions. It is a joint
venture between Housing Development Finance
Corporation Limited (HDFC Ltd.), India's leading
housing finance institution and The Standard
Life Assurance Company, a leading provider of
financial services from the United Kingdom.
Their cumulative premium income, including the
first year premiums and renewal premiums is Rs.
672.3 for the financial year, Apr-Nov 2005. They
have managed to cover over 11,00,000
individuals out of which over 3,40,000 lives have
37
been covered through their group business tie-
ups.
38
2. Max New York Life Insurance Co. Ltd.
Max New York Life Insurance Company Limited
is a joint venture that brings together two large
forces - Max India Limited, a multi-business
corporate, together with New York Life
International, a global expert in life insurance.
With their various Products and Riders, there are
more than 400 product combinations to choose
from. The Company have a national presence
with a network of 57 offices in 37 cities across
India.
2.ICICI Prudential Life Insurance Company
Ltd
3. ICICI Prudential Life Insurance Company is a
joint venture between ICICI Bank, a premier
financial powerhouse and Prudential plc, a
leading international financial services group 39
headquartered in the United Kingdom. ICICI
Prudential was amongst the first private
sector insurance companies to begin
operations in December 2000 after receiving
approval from Insurance Regulatory
Development Authority (IRDA). The company
has a network of about 56,000 advisors; as
well as 7 bancassurance and 150 corporate
agent tie-ups.
4. Om Kotak Mahindra Life Insurance Co.
Ltd.
Kotak Mahindra Old Mutual Life Insurance Ltd.
is a joint venture between Kotak Mahindra Bank
Ltd. (KMBL), and Old Mutual plc.
5.Birla Sun Life Insurance Company Ltd.
40
Birla Sun Life Insurance Company is a joint
venture between Aditya Birla Group and Sun Life
financial Services of Canada.
Tata AIG Life Insurance Company Ltd.
SBI Life Insurance Company Limited
ING Vysya Life Insurance Company Private
Limited
Allianz Bajaj Life Insurance Company Ltd.
Metlife India Insurance Company Pvt. Ltd.
AMP SANMAR Assurance Company Ltd.
Dabur CGU Life Insurance Company Pvt. Ltd.
1. Royal Sundaram Alliance Insurance
Company Limited
The joint venture bringing together Royal & Sun
Alliance Insurance and Sundaram Finance 41
Limited started its operations from March 2001.
The company is Head Quartered at Chennai, and
has two Regional Offices, one at Mumbai and
another one at New Delhi.
2. Bajaj Allianz General Insurance Company
Limited
Bajaj Allianz General Insurance Company
Limited is a joint venture between Bajaj Auto
Limited and Allianz AG of Germany. Both enjoy
reputation of expertise, stability and strength.
Bajaj Allianz General Insurance received the
Insurance Regulatory and Development
Authority (IRDA) certificate of Registration (R3)
on May 2nd, 2001 to conduct General Insurance
business (including Health Insurance business)
in India. The Company has an authorized and
paid up capital of Rs 110 crores. Bajaj Auto holds 42
74% and the remaining 26% is held by Allianz,
AG, Germany.
3. ICICI Lombard General Insurance
Company Limited
ICICI Lombard General Insurance Company
Limited is a joint venture between ICICI Bank
Limited and the US-based $ 26 billion Fairfax
Financial Holdings Limited. ICICI Bank is India's
second largest bank, while Fairfax Financial
Holdings is a diversified financial corporate
engaged in general insurance, reinsurance,
insurance claims management and investment
management.
Lombard Canada Ltd, a group company of
Fairfax Financial Holdings Limited, is one of
Canada's oldest property and casualty insurers.
ICICI Lombard General Insurance Company 43
received regulatory approvals to commence
general insurance business in August 2001.
4. Cholamandalam General Insurance
Company Ltd.
Cholamandalam MS General Insurance Company
Limited (Chola-MS) is a joint venture of the
Murugappa Group & Mitsui Sumitomo. Chola-
MS commenced operations in October 2002 and
has issued more than 1.4 lakh policies in its first
calendar year of operations. The company has a
pan-Indian presence with offices in Chennai,
Hyderabad, Bangalore, Kochi, Coimbatore,
Mumbai, Pune, Indore, Ahmedabad, Delhi,
Chandigarh, Kolkata and Vizag.
5. TATA AIG General Insurance Company
Ltd.
44
Tata AIG General Insurance Company Ltd. is a
joint venture company, formed from the Tata
Group and American International Group, Inc.
(AIG). Tata AIG combines the strength and
integrity of the Tata Group with AIG's
international expertise and financial strength.
The Tata Group holds 74 per cent stake in the
two insurance ventures while AIG holds the
balance 26 per cent stake.
Tata AIG General Insurance Company, which
started its operations in India on January 22,
2001, offers the complete range of insurance for
automobile, home, personal accident, travel,
energy, marine, property and casualty, as well as
several specialized financial lines.
6. Reliance General Insurance Company
Limited.
45
7. IFFCO Tokio General Insurance Co. Ltd
8. Export Credit Guarantee Corporation Ltd.
46
EXECUTIVE SUMMARY
At ING Vysya Life Insurance, in a short span of 8 years of operations,
we have established ourselves as a distinctive life insurance brand
in India.
With an innovative, attractive and customer friendly product
portfolio backed by a professional advisor force, we are proudly
serving over 3,00,000 customers today.
Here the main problem is to known the level of awareness about life
insurance among those who can afford to buy insurance especially
now when a no. of private insurer has entered the market.
The researcher would also like to establish the main reasons for
buying a life insurance policy, to know what type of cover is
preferred by most of people. After going through the literature review, the
researcher has found out that people still believe in government insurance policies i.e. LIC
policies, even many of them don’t known about that ING Vysya is in insurance sector, which
is no. 1 insurance company in Netherland also in today’s world when privatization has been
given the green signal the people rely more on Govt. insurance companies than in private
and this would take time when the general awareness would change.
ING VYSYA Life Insurance
FACT SHEET – As of June 30th, 2008
47
Founded 2000
Started Operations Sep 2001
Headquarters Banglore (India)
World Wide Web Address www.Ingvysyalife.com
Chairman Mr.Ranjan Raheja
Managing Director & CEO Mr. Kshitij Jain
Paid-Up Capital Rs. 1232 crore
Employees 7000
Advisor 51,000
Customer 5.5 lakh
ING VYSYA LIFE IN INDIA - AN OVERVIEW
ING VYSYA LIFE INSURANCE COMPANY LIMITED A
PART OF THE ING GROUP THE WORLD’S LARGEST
48
FINANCIAL SERVICES PROVIDER ENTERED THE
PRIVATE LIFE INSURANCE INDUSTRY IN INDIA IN
SEPTEMBER 2001. HEADQUARTERED AT
BANGALORE, ING VYSYA LIFE IS CURRENTLY
PRESENT IN 246 CITIES AND HAS A NETWORK OF
OVER 300 BRANCHES, STAFFED BY 7,000
EMPLOYEES AND OVER 51,000 ADVISORS,
SERVING OVER 5.5 LAKH CUSTOMERS.
PRODUCT PORTFOLIO
ING VYSYA LIFE FOLLOWS A “CUSTOMER
CENTRIC APPROACH” WHILE DESIGNING ITS
PRODUCTS. THE COMPANY’S PRODUCT
PORTFOLIO OFFERS PRODUCTS THAT CATER TO
EVERY FINANCIAL REQUIREMENT, AT ALL LIFE
STAGES.
In fact, the company has developed the LifeMaker TM a simple tool which can be used to choose a plan most suitable to a specific customer based on his needs, requirements and current life stage. This tool helps you build a complete financial plan for life at every lifestage, whether the requirement is Protection, Savings, Investment or Retirement. Suitable products from ING Vysya Life Insurance’s product portfolio for each such requirement,
49
makes selection of your plan an easy exercise.
The Company aims to make customers look at life insurance afresh, not just as a tax saving device but as a means to live life to the fullest. It believes in enhancing the very quality of life, in addition to safeguarding an individual's security.
Distribution Channels
ING Vysya Life has a diversified distribution platform. While Tied Agency remains the strongest channel, the Alternate Channels business within ING Vysya Life is one of the fastest growing distribution channels. ING Vysya Life has strengthened its position as the unparallel leader in the life insurance industry in cooperative banks tie ups. The company currently has tie ups with 130 cooperative banks across the country. The Alternate Channels division has Bancassurance, ING Vysya Bank, Corporate Agents and SMINCE.
The Brand Positioning
In 2007, ING Vysya Life developed its unique brand positioning ‘Mera farz’. This positioning means, ING Vysya Life helps its customers fulfill their responsibilities towards themselves and their families. This powerful positioning has helped ING Vysya Life create a distinct identity for itself. The latest brand campaign with a very catchy jingle dwells on how a little planning and a helping hand from ING Vysya life can help lighten the burden of responsibilities that often come with happy moments and let you enjoy your life without any worries.
ING Vysya Life Insurance Company Private Limited (the Company)
entered the private life insurance industry in India in September 2001,
and in a short span of 7 years has established itself as a distinctive life
50
insurance brand with an innovative, attractive and customer friendly
product portfolio and a professional advisor sales force.
It has a dedicated and committed advisor sales force of over 51,000
people, working from 300 branches located in 70 major cities across the
country and over 7,000 employees. It also distributes products in close
cooperation with the ING Vysya Bank network. The Company has a
customer base of over 5,50,000 & is headquartered at Bangalore. In
2005, ING Vysya Life earned a total income in excess of Rs. 400 crore and
also has a share capital of Rs. 440 crore.The Company aims to make
customers look at life insurance afresh, not just as a tax saving device
but as a means to add protection to life. The one thing we hold in
highest esteem is 'life' itself. We believe in enhancing the very quality of
life, in addition to safeguarding an individual's security. Our core values
are therefore defined as Professional, Entrepreneurial, Trustworthy,
Approachable and Caring.
The Company’s portfolio offers products that cater to every financial
requirement, at any life stage. We believe in continuously developing
customer-driven products and services and value being accessible and
responsive to the needs of our customers.
51
Corporate Objective
At ING Vysya Life, we strongly believe that as life is different at every
stage, life insurance must offer flexibility and choice to go with that
stage. We are fully prepared and committed to guide you on insurance
products and services through our well-trained advisors, backed by
competent marketing and customer services, in the best possible way.
It is our aim to become one of the top private life insurance companies
in India and to become a cornerstone of ING’s integrated financial
services business in India.
Mission
“To set the standard in helping our customers manage their financial
future”.
Partners
A glance at our equity partners:
► ING Group,
► Exide Industries Limited ,
► Gujarat Ambuja Cements Limited ,
52
► Enami Group
ING Group’s Presence in India
ING operates through three businesses in India, ING Vysya Life
Insurance, ING Vysya Bank and ING Investment Management. ING Vysya
Bank is a premier private sector bank with over 76-year heritage and 1.5
million satisfied customers. ING Investment Management comprises of
two operations: ING Fund - a mid sized asset management company
with a retail investor focus and Optimix - a fund of funds business.
ING Group’s Presence in India
ING operates through three businesses in India, ING Vysya Life Insurance, ING Vysya Bank and ING Investment Management. ING Vysya Bank is a premier private sector bank with over 76-year heritage and 1.5 million satisfied customers. ING Investment Management comprises of two operations: ING Fund - a mid sized asset management company with a retail investor focus and Optimix - a fund of funds business.
53
Management Team
Board of Directors (as on January 18, 2008)
Mr. Rajan Raheja : Chairman of the BoardMr. Kshitij Jain : Managing Director & Chief Executive OfficerMr. N.N. Joshi : Director Mr. Satish Raheja : DirectorMr. Rajesh Kapadia : DirectorMr. S.B. Ganguly : DirectorMr. Ron Van Oijen : Director
Senior Management Team
Kshitij Jain : Managing Director & CEOAmit Gupta : Director - Marketing & CommunicationHemamalini Ramakrishnan
: Appointed Actuary & Chief Investment Risk Officer (CIRO)
Marco Fredriks : Financial ControllerPriya Gopalakrishnan : Director – Human Resources Rahul Agarwal : Director - Customer Services & RiskRavishankar Subramanian
: Director – Information Technology & Corporate Services
Rene van der Poel : Director – Alternate ChannelsT K Uthappa : Director – Sales, Tied AgencyY V D V Prasad : Director – Business Development
ING Group is known for its philosophy of ‘keeping it simple’. This
thought is the result of ING Group’s 150 years of understanding of
customers’ needs and fulfilling them.
ING is a global financial institution of Dutch origin. It has 150 years of
experience, and provides a wide array of banking, insurance and asset
management services in over 50 countries and is trusted by over 60
million customers. Its 1,13,000 employees work daily to satisfy a broad
54
customer base – individuals, families, small businesses , large
corporations, institutions and governments. The ING Group has gone
from strength to strength year after year and is the world's 17th largest
company*. The ING Group is the world's fourth largest financial services
group* with over US $ 1 trillion# in assets and profits of US $ 8.5 billion
in 2005#.
Over the last 150 years, ING Group has grown to become one of the
largest life insurance organizations in the world. Today it touches the
lives of millions of people across 50 countries.
ING Group has wide and deep experience in setting up companies in new
markets, which require substantial investments underlining ING's long-
term commitment. In the last 20 years, ING Group has established
successful life insurance companies in 15 countries contributing to the
development of insurance services in these countries successfully.
55
ING VYSYA LIFE INSURANCE PLANS
At ING Vysya Life, there is nothing we hold higher than
life itself. We therefore view our plans not as tax saving
devices but as a means to add protection to life. We
believe in Our products are designed in a way that helps you bear
heavy expenses while building your home or providing for your
children's education and marriage. We make sure your post retirement
years are carefree and secure, ensuring your family and loved ones are
protected against financial difficulties in the event of a premature death.
Depending on your personal needs, priorities and
individual responsibilities, you can go for a Protection,
Saving or Investment plan. If you are not sure of which
plan would suit you best, you could use the LifeMaker, an
application we developed for that very purpose.
Conquering Life
What are these plans ?
56
Saving
Saving plans act as a compulsory savings instrument for families when
the premium is paid regularly. They work as long-term savings,
enhanced by tax benefits, which give you the financial strength to
achieve your life goals.
Investment
Investment plans act as wealth creation instruments helping to create
big estates for the family. It is a long-term investment, free from the risk
of market swings. At the end of the term, you or your family can enjoy
added returns on investment.
Retirement
Retirement plans can ensure that your post-retirement
years are spent in peace and comfort. They make sure
that you have regular income after you retire and also
help you maintain your standard of living. Conquering
Life Critical Illness Plan
What can this plan do for me?
57
The Conquering Life Plan is a comprehensive critical illness cover that
helps bear the financial burden of a critical illness. This is a unique health
insurance benefit that helps you to protect yourself and your family
against health and lifestyle risks.
The Conquering Life Plan is ideal because it provides
protection to you and safeguards your family's lifestyle
through an easily affordable, pure risk life cover. And
more importantly, it covers you against ten life-
threatening critical illnesses- Cancer, Heart Attack,
Coronary Artery Bypass Graft, Stroke, Kidney Failure,
Major Organ Transplant, Brain Tumor, Paralysis, Coma
and Blindness.
Key Features
Complete Protection Against 10 Critical Illnesses And Death,
Money When You Need it Most (Critical Illness Claims Paid on Diagnosis)
Free Life Cover After a Critical Illness Claim.
Benefits
Illness Benefits
58
A critical illness cover of up to 50% of the sum assured is paid to you in
the event of a confirmed diagnosis of any one of the critical illnesses
covered. This sum can be up to a maximum of Rs. 20 lakhs.
The critical illness cover is only valid for the first critical illness suffered
and not any that follow.
In the event of critical illness, the remaining premium payments for the
period of the policy will be waived.
Death Benefit
Your family will get the total sum assured or
Your family will receive the difference between the total sum assured
and the Critical illness claim paid, if any.
Additional Benefits
59
Rider Benefits
Increase your coverage at a nominal extra cost by opting
for any of our riders.
Term Rider, Accidental Death Rider, Accidental Death,
Disability & Dismemberment Rider.
Tax Benefits
Tax benefits under Section 88 and Section 10 (10D) are available on all
our life insurance plans and riders.
Look-in Period
This is a 15-day period for you to go through the terms
and conditions and decide upon taking or canceling the
policy.
Product Features
Eligibility
Minimum age for application: 18 years,
Maximum age for application: 50 years,
Maximum age up to which premium can be paid: 65 years.
Premium Payment Term
Choose premium paying terms of 10-25 years.
60
Coverage Term
Same as the Premium Payment Term.
Premium Payment Options
Annual, half-yearly or quarterly.
Minimum Premium Payable
Annual Rs.2, 500
Half-Yearly Rs.1, 500
Quarterly Rs. 1, 000
Processing Fee Rs. 700 (non-refundable one time fee).
LIFE ENDOWMENT PLAN (REVERSIONARY BONUS)
What can this plan do for me?
Ideally, once your protection needs are met, consider a saving plan. The
Reassuring Life Endowment Plan with reversionary bonus* is one such
offering. Besides being a savings option, it also acts as a highly reliable
safety net for your family in case something happens to you.
The Reassuring Life Plan is ideal because it gives you the incredible
benefit of a reversionary bonus which enhances your life cover, and
61
hence your sum assured, dramatically, every year. So when the policy
matures you can receive almost double the initial sum assured.
Key Features
Lump Sum Benefit at Maturity,
Customised Life Covers,
Enhancing Life Cover (Attractive Reversionary Bonus).
Benefits
Survival Benefits
A sizeable financial asset for you and your family once the policy
matures, so you can meet large expenses - like higher education for your
kids, investment in a house, or organizing your child’s wedding.
A life cover that enhances rapidly, annually, thanks to the
reversionary bonus* feature. This basically means the bonus is earned
not just on the original sum assured but also on the previously
accumulated bonus - an amount which goes on increasing every year.
A final additional bonus**.
62
Bonus are non-guaranteed and are based on the company's
performance.
**Applicable if at least premiums for 15 years have been paid.
Death Benefit
Your family would receive a large sum which would include the sum
assured and the accumulated reversionary bonus and final additional
bonus.
Additional Benefits
Rider Benefits
Increase your coverage at a nominal extra cost by opting for any of our
riders –
Term Rider, Accidental Death Rider, Accidental Death, Disability &
Dismemberment Rider and Waiver of Premiums Rider.
Loan Benefit
After paying a premium for three years, you will be eligible for a loan.
Tax Benefits
63
Tax benefits under Section 88 and Section 10 (10D) are available on all
our life insurance plans and riders.
Look-in Period
This is a 15-day period for you to go through the terms
and conditions and decide upon taking or canceling the
policy.
Product Features
Eligibility
Minimum entry age: 12 years,
Maximum entry age: 55 years,
Maximum maturity age: 65 years.
Premium Payment Term
You can choose paying premium terms from
Payment Term 10-30 years. (i.e. 10,11,12...20...30)
Life Coverage Term
Same as the Premium Payment Term
64
Premium Payment Options
Annual, half-yearly, quarterly or monthly
Minimum Premium Payable
Annual : Rs. 6, 000
Half-Yearly : Rs. 3, 000
Quarterly : Rs. 1, 500
Monthly : Rs. 750
Creating Life Child Protection Plan
This plan is perfect if you have small children. You can provide for their
future by setting aside a small portion of your current income. The
money you set aside will help your children pursue their dream even
when you are not around to take care of them. Death cover will provide
immediate relief and the maturity benefit will come to your child at the
right time when they need it.
The Creating Life Child Protection Plan helps you ensure that your
children’s future is secure and prosperous, so they can pursue their
dreams no matter what the future brings.
65
Key Features
Guaranteed Maturity Benefits (Payment in case of Death and at
Maturity) ,Flexible Maturity Benefit Options,
Built-in Waiver of Premium Benefit.
Benefits
Guaranteed maturity benefits
The sum assured and the accumulated compound reversionary bonus
are paid on maturity.
A final additional bonus based upon the performance of company is paid
on maturity.
Death Benefits
Your child will receive the sum assured in case of your
death.
The policy continues even after the sum assured on
death is paid.
No premiums have to be paid after the death of the
66
parent
whose life is insured (Built-in waiver of premium benefit).
Your child will be eligible for guaranteed maturity
benefits.
Additional Benefits.
Rider Benefits
Increase your coverage at a nominal extra cost by opting for any of our
riders –
Term Rider, Accidental Death Rider, Accidental Death, Disability &
Waiver of Premiums Rider.
Loan Benefit
After paying a premium for three years, you will be eligible for a loan.
67
Maturity Benefit
Your child can either receive a lump sum or receive the amount in 3 or 5
equal installments after the maturity date.
Tax Benefits
Tax benefits under Section 88 and Section 10 (10D) are available on all
our life insurance plans and riders.
Look-in Period This is a 15 day period for you to go through the terms and conditions and decide upon taking or canceling the policy.
Product Features.
Eligibility
Minimum entry age: 18 years,
Maximum entry age: 55 years,
Maximum maturity age: 65 years.
Premium Payment Term
Choose premium paying terms of 10 - 25 years
Premium Payment Options
Annual, half-yearly, quarterly or monthly
68
Minimum Premium Payable
Annual : Rs. 6, 000
Half-Yearly : Rs. 3, 000
Quarterly : Rs. 1, 500
Monthly : Rs. 750
Safal Jeevan Endowment Plan
What can this plan do for me?
A product that offers comprehensive protection and savings in an easy
and hassle free manner. "Safal Jeevan" is the simplest life insurance
plan giving you complete freedom to choose from pre-packaged
solutions, and decide how much and how long you want to pay
premiums. It offers death benefit, maturity benefit and has an in-built
accident cover.
The plan provides for policy coverage terms of 10,15 and 20 years.
Premium is payable annually, half yearly and quarterly.
Key Features
Low Premium ,
69
In-built Accident Premium.
Benefits
Death Benefit
Sum Assured with non-guaranteed bonuses, if any, payable on death of
the Life Assured.
In-built Accident Cover
In case of death due to accident, an additional benefit equal to the basic
Sum Assured is payable.
Additional Benefits
Maturity Benefit
Sum Assured with non-guaranteed bonuses, if any, payable on maturity.
Premium Payment
Premium is payable annually, half-yearly or quarterly during the policy
term. The policy coverage terms are fixed at 10, 15 and 20 years.
70
CREATING LIFE MONEY BACK PLAN
What can this plan do for me?
As a parent, you always want to give all the good things
in life to your child. See your children grow into
successful individuals, fulfill their dreams at every
important stage of their life and help them grab all the
opportunities at the right time.
ING Vysya life helps you to achieve this. Be it for their
computer training classes, dance lessons or anything that
makes them experience the good things in life. No matter
what happens to you, your child's future is always taken
care of.
How does this plan work?
Creating Life Money Back Plan is ideal for parents like you who want a
life cover that pays you 20% of the Sum Assured at regular intervals, that
is, on completion of every 1/5 of the Policy Term. For example, if you
choose a 15 year Policy Term for Rs 5,00,000 Sum Assured, you will get
Rs. 1,00,000 each on completion of the 3 , 6 , 9 , 12 and 15 year. In 71
essence it not only gives financial security but also the flexibility to take
care of your child's important milestones in life.
What's more, the Policy also earns bonuses, which are paid on maturity.
You can pay Premiums either Yearly, Half yearly, Quarterly or even
Monthly as per your convenience during the Policy Term.
SAFAL JEEVAN MONEY BACK PLAN
What can this plan do for me?
A rewarding life comes from intelligent investing right
from the beginning. ING Vysya Life Insurance can help
you take the right decisions so that whatever stages of
life you are in, you are always in control and self-reliant.
In fact, life cover is just one part of an ING Vysya Life
Plan. It also ensures that you lead a financially secure life
without having to worry about the uncertainties of
tomorrow. So whether you want to build a new home, or
plan early for your children's education, realizing your
dreams should never stop.
72
How does this plan work?
Safal Jeevan Money Back plan is ideal if you are planning to take your
first life insurance policy. It offers you protection in an easy, hassle-free
way and helps you secure your goals and dreams despite the odds. All
you have to do is to choose a suitable policy term from 'pre-packaged'
solutions, and allows you to decide how much and how long you want to
pay premiums.
The plan ensures an easy and hassle free process, yet offering you a
comprehensive protection and savings proposition with coverage terms
of 16 and 20 years. Premium is payable annually, half yearly and
quarterly.
FREEDOM PLAN UNIT LINKED POLICY
What can this plan do for me?
The ING Vysya Life Freedom Plan allows you to customize your insurance
cover to suit your requirements. It gives you freedom to plan your
investments to suit your preferences and risk profile. This plan also
offers survival benefits at regular intervals.
73
The premiums and top-up amounts paid by you, less charges are
credited to an account called the Individual Policyholders’ Account (IPA)
and are used to purchase units in one or more investment plans as per
your choice. At any point in time, the balance in the IPA is represented
by the number of Units multiplied by the respective Unit Price of the
Units held from time to time under all the Investment Plans under this
Policy.
Key Features
Flexible premiums ,
Flexible life cover,
Flexible withdrawals,
Flexible investment options,
How is Unit Price calculated?
The Unit Price on any day will be determined as
The resulting Unit Price shall be computed to four decimal points.
How does this plan work?
74
The ING Vysya Life Freedom Plan gives you complete flexibility to plan
your finances. You can decide how long you want to pay, how much to
pay, the extent of insurance cover, the frequency of payments that you
would make each year and so on.
Flexibility in Premium and Frequency
You can choose the amount of premium you wish to pay subject to
certain minimum premium limits. The frequency of payment may be
yearly, half yearly, quarterly or monthly. The minimum amounts of
premium for different frequencies are: Yearly : Rs 15,000, Half-yearly : Rs
8,000, Quarterly : Rs.4,000 and Monthly : Rs 1,500.
Top-up Amount
This plan provides you with an option to pay additional top-up amounts
(subject to a minimum of Rs.5000) over and above your regular
premiums as and when you wish allowing you to increase your
investments and savings at your own pace.
Flexible Premium Payment Term
You can choose the duration you wish to pay the premiums. The
premium payment term can range from 5 to 25 years.
75
Flexibility in Insurance Cover
You can choose a life insurance cover starting from a minimum of
Rs.75,000 and a maximum sum assured equal to one and half times of
the total regular premiums payable under the Policy issued to you.
For e.g. If you choose to pay a premium of Rs.20,000 per annum for term
of 20 years the maximum sum assured that you may be eligible for will
be Rs.6,00,000 and so you can choose any sum assured between
Rs.75,000 to Rs.6,00,000.
Continued Insurance Cover
This plan comes with a unique in-built safeguard against lapse of life
insurance cover. If you are unable to pay your premium in any year, the
life insurance cover under your policy will continue as long as the
balance in your IPA is sufficient to pay the charges. However, if the
premiums are not paid for two years and balance in your IPA is less than
Rs.15,000, then the policy will be cancelled and balance in the IPA if any,
after deducting charges will be refunded.
Flexible Investments
76
You can choose one or more of the following Investment plans for investing your premium
and top-up amount, net of applicable charges.
Investment
Plans
Investment Pattern Objective
Debt Plan
100% of the available funds are invested in
debt instruments .
Provides safety
and growth with
minimum risk.
Secure fund
Up to a maximum of 20% of the available
funds are invested in growth instruments like
equity, property and the rest in debt
instruments.
Provides for
growth with low
risk
Balanced fund
Up to a maximum of 40% of the available
funds are invested in growth instruments like
equity, property and the rest in debt
instruments.
Provides for
higher growth
with reasonable
security.
77
Growth fund
Up to a maximum of 60% of the available
funds are invested in growth instruments like
equity, property and the rest in debt
instruments.
Provides for
opportunity of
high growth.
ONE LIFE
You believe in working hard and playing hard. In spending time with your
family, giving them the best and securing their future. Securing benefits
through regular insurance plans and making small payments on a
regimented basis leave you feeling dissatisfied. You feel you are capable
of investing so much more.
Presenting the ING Vysya Life’s One Life – a plan that is much more
than just insurance. A superlative investment plan that gives you the
unique option of making one single lump sum payment and additional
top ups as per your convenience.
One Life also provides you with a life cover of your choice and also
enhances your investment opportunities to earn returns in line with the
market. So go ahead . Make the choice of a lifetime.
78
Key Features
One time Premium,
Provides you life cover of your choice ,
Provides you investment opportunity to earn market linked returns.
Platinum Life Plan
What can this plan do for me?
For those special persons who have achieved financial
success, ensuring that success is well protected and loved
ones are cared for is an important necessity. It is
important for you to be able to provide financial security
and resources for your family in a flexible way. Platinum
Life plan does just that by allowing you to pay for the
policy in a short period and enjoying the life insurance
coverage and maturity benefits for a long period. ING
Vysya Life Insurance can help you to ensure that your family’s future is
safe and secure.
What are the benefits of this plan?
79
The plan provides an opportunity for building a safe and secure financial
asset for your self and your family and providing for life insurance
protection while giving you freedom to pay the premiums as per the
premium payment term chosen by you .
Simple Guaranteed Additions: Simple Guaranteed Additions of Rs. 50/-
per thousand sum assured per annum are payable during the first 5
policy years and will be attached to the Policy at the end of each policy
year. These Simple Guaranteed Additions are payable under this Policy
to the Life Assured on the Date of Maturity or to the Beneficiaries on
death of Life Assured provided that on death of Life Assured only vested
additions will be paid.
Participation in Profits: The policy is also eligible for simple reversionary
bonus for the full term from the first policy year itself at such rates
declared by the Company. This provides opportunity to earn bonuses
over and above the simple guaranteed additions during the first 5 policy
years.
Maturity or Death benefit: Sum Assured, Simple Guaranteed Additions
and simple reversionary bonuses, if any, are payable on maturity of the
Policy or up on death of Life Assured.
80
When can you opt for Platinum Life?
The minimum entry age is 18 years (last birthday).
The maximum entry age is 65 years (last birthday).
The maximum premium ceasing age is 70 years.
The maximum maturity age is 75 years.
Premium payment: Premiums are payable annually, half-yearly or
quarterly during the chosen premium payment term. You can choose
premium payment term of 5, 6, 7, 8 or 9 years.
81
GROUP TERM LIFE INSURANCE PLAN
Protection. On Your Terms.
ING Vysya Life's Group Term Life Insurance Plan is a special way to
safeguard your employees' interests. It enables you to comprehensively
safeguard your employees in case of the unfortunate death of an
employee due to any reason, by providing timely and hassle free relief. It
provides the essential life cover for all the members you wish to include
in the group.
Death Benefit
This act as a lifeline for the family of an insured member in case
something unfortunate were to happen to him. The beneficiaries will
receive a fixed Sum Assured which will act as their financial protection in
their time of need.
82
Additional Accidental Death Benefit
To further protect your employees against a life full of
uncertainties, the plan allows you to add this extra shield.
So, in case the death of an insured member occurs due to
accident, his beneficiaries receive an additional Sum
Assured as per the contract.
The maximum additional accidental death benefit can go
up to as much as Rs.20,00,000.
Exclusions for Additional Accidental Death Benefit
(i) Where Accidental Death occurs directly or indirectly as
a result of:
Any disease or infection.
Intentional self-inflicted injury, suicide or attempted suicide, while sane
or insane. Life Assured being under the influence of drugs, alcohol,
narcotics or psychotropic substances unless taken in accordance with
the lawful directions and prescription of a qualified and registered
medical practitioner.
83
War (Declared or undeclared), invasion, civil commotion, riots,
revolution or any war-like operations.
Participation by the Life Assured in any flying activity, except as a
bonafide passenger in a commercially licensed aircraft.
Participation by the Life Assured in a criminal or unlawful act.
Any injury incurred before the Risk Commencement Date.
Participation in hazardous sports, hobbies or pastimes including (but not
limited to) racing, parachuting, mountaineering etc no benefits shall
be paid.
The Cover Continues
Leaving a job doesn't mean the end of being protected.
This plan comes with a convenient continuation
option.An employee can choose to maintain the cover
after resignation or retirement. This is done by simply
effecting an individual insurance policy, without further
medical evidence. The facility can be availed by meeting
certain basic conditions.
Share Concern. Share Profit
84
While you have your employee's best interests at heart,
we have yours. This is the reason why we share part of
the mortality experience profits with you, if the scheme
experience is favourable. The extent of such profit
sharing depends on the size of your member group. This
share is adjusted against the next premium.
Lion Advantages:
For you
It provides a comprehensive life insurance cover at a lower cost as
compared to individual life insurance policies.
Just one master policy covers all employees.
It is easier to cover all your employees as there are minimal
requirements for accepting cover.
It is a hassle-free way of securing life cover for all employees at one go.
It enables you to customize the amount of life cover based on
requirements like graded cover or flat cover, or certain multiples of
annual salary etc.
85
It offers the possibility of premium reduction over a period of time, with
profit sharing and/or experience rating arrangement.
It is a yearly renewable scheme. No long-term commitment.
It offers you the flexibility to add new members or exclude existing
members.
It has provision for Accidental death benefit at a very nominal extra
cost.
It allows you to increase scope of benefit by adding optional additional
benefits like Critical Illness and Accidental Death, Disability, at a marginal
cost. It is a tax efficient way of securing benefits to employees.
Premiums paid by you are not treated as taxable perquisites, for your
employee. And for you it is a deductible business expense.
reduces administrative work, as it is backed by an efficient
administrative process.
Premiums can be paid monthly, quarterly, half-yearly or yearly, based on
requirements.
Helps employee retention.
86
Enables you to be a good corporate citizen.
Allows employees to contribute part of the premium.
For your employees
They get a comprehensive life insurance coverage. It provides for
payment of the Sum Assured to an employees' beneficiaries in the event
of an unfortunate death.
They get insurance cover with minimal or no medical examinations.
A hassle-free process of keeping life cover in-force.
In case an employee leaves, he can still choose to continue the life cover
by converting it into a regular individual policy (subject to certain
conditions)
In case employees are paying premiums, they are eligible for tax
exemption under
Section 88 of Income Tax Act.
There is no limit on travel or residence.
A COMPREHENSIVE PROTECTION
87
ING Vysya Life's Group Disability Plus Rider helps you to
comprehensively safeguard your employees' interests in cases of
unfortunate events like an accidental death, permanent disability due to
disease or accident, by providing timely and hassle free relief. Thus you
can safeguard your employees' financial interests. This plan provides a
range of protective covers. These are as follows:
Event Benefit Payable as
% of SA
Time of payment
Accidental death benefit 100% Immediately on
admission of claim
Dismemberment benefit due to
Accident or Disease
- Thumb & index finger on
same hand
25% Immediately on
admission of claim
- Any one limb 50% As above
- Two limbs or more 100% As above
Total and Permanent Loss due
88
to Accident or Disease
- Loss of speech 25% Lump sum after
establishing TPD
- Loss of use of any one limb 50% As above
- Loss of use of any two or
more limb
100% As above
Total and Permanent Disability
due to Accident or Disease (any
occupation)
100% As above
Advantages
You can provide a comprehensive protection package cover at a lower
cost as compared to individual life insurance policies.
One master policy covers all employees for a range of benefits. Your
staff gets maximum protection at minimal underwriting requirements
for accepting the cover.
Save tax while you safeguard the interests of your employees.
89
Reduce your administrative workload. We take care of it all.
Build a positive attitude in your workforce, inspire loyalty and retain
employees for longer.
Achieve your objective of being a conscientious employer and a good
corporate citizen.
For your employees
They get comprehensive life insurance cover. In other words, more
wholesome protection against life's uncertainties.
No lengthy procedures to go through, it is a hassle free process.
They don't need to worry about maintaining the plan by making periodic
premium payments:
Specifications
Minimum age at entry: 18 years age last birthday,
Maximum age at entry: 64 years age last birthday,
90
Maximum risk coverage
age:
65 years age last birthday,
Premium mode: As per base plan.
Can be attached to: Yearly Renewable Term Assurance.
Profit sharing: Not available.
Amount of benefit: Optimal Sum Assured not exceeding the
SA under the basic policy.
Maximum amount of
benefit:
Up to a maximum of Rs. 20,00,000/-
depending upon occupation
Exclusions
While we provide prompt and assured support to your employees in the
event of an accident, there are some exceptions to the rule. If the
accident occurs due to any of the following :
Intentional self-inflicted injury, attempted suicide, while sane or insane.
Insured Member being under the influence of alcohol, narcotics,
psychotropic substances or drugs unless taken in accordance with the
91
lawful directions and prescription of a qualified and registered medical
practitioner.
Participation in any flying activity, except as a bonafide passenger in a
commercially licensed aircraft.
Participation in a criminal or unlawful act.
Any injury sustained before the Date of Risk Commencement under this
Rider.
Any Disease for which care, treatment, or advice was recommended by
or received from any consultant including but not limited to a physician
or a Specialist or which first manifested itself or was contracted before
the start of the Risk Commencement Date, or for which a claim for an
event under this rider has or could have been made under any earlier
policy.
Participation in hazardous sports, hobbies or pastimes including (but not
limited to) racing, parachuting, mountaineering.
Atomic energy explosion or radiation of any kind, biological and
chemical accidents.
92
War (declared or undeclared), invasion, civil commotion, riots, terrorism,
revolution or any war-like operations.
Disease in the presence of HIV infection.
93
A COMPARATIVE STUDY OF LIC AND ING VYSYA POLICIES
LIC and ING Vysya both provide different policies and plans depending
upon the various requirements of people. Different plans are been
categorised under seven major categories of policies. Then a
comparative analysis is done between the plans of both LIC and ING
Vysya. Both the company provide similar types of plan just with the
difference in the features or premium amounts.
Whole life policies:
LIC ING Vysya
WHOLE OF LIFE PLANS
The most cheapest form of LIC
policy
Premiums are payable through out
the life
LIFE TIME PLAN
Policy that meets your changing
need over a lifetime
Premium part is adjusted towards
morality and administrative
charges and rest is invested in plan
94
Sum assured is payable on the
death of the life assured
of your choice.
Bringing the difference in the plan of LIC and ING Vysya we can find out
that LIC plans are very simple to understand whereas the other provide
plans according to your the changing needs of people.
95
ENDOWMENT POLICIES
LIC ING Vysya
ENDOWMENT WITH PROFITS
These are the policies of limited
duration payable on maturity or
death of the life assured.
These plans are available with
different option like with or
without profit or double or special
endowments.
ING Vysya SAVE N PROTECT
An ING Vysya ideal plan for those
who want to accumulate funds on
a regular basis with life cover.
It is a fixed term policy that
combines saving with life cover.
The premium is paid regularly
during the term.
On death up to age: - basic
premium returned without interest
96
On death after age 7: - sum
assured @3.5% compounded
interest for first 4 yrs and then
vested bonus.
We can make out comparing the plans of both the companies that while
ING Vysya are more concerned about saving and are categorised for the
different section of people. LIC is straight and simple plan.
97
MONEY BACKS POLICIES
LIC ING Vysya
JEEVAN MITRA
A high risk low cost plan and with
profit plan.
This plan provide for an additional
insurance cover, equal to the sun
assured in the event of policy
holder death during the term of
policy.
JEEVAN SURBHI
ING Vysya CASH BACK
An ideal plan for every milestone
of life. It combines life
cover+liquidity+savings.
It provides survival benefit after
every 3 or 4 yrs and add-on benefit
for a nominal extra premium.
98
Premium payable for limited
periods available with periods of
12,15 and 18 yrs.
Money back at interval of 4 and 5
yrs as per policy term.
JEEVAN SANCAY
Plan having a provision of
guarantee addition at 70p.a. per
thousand and loyalty addition
payable on date of maturity.
The LIC under money back policies provide various plans each having
different kinds of features. On the other hand ING Vysya, which
combines all the features in just one single plan.
The LIC plans like jeevan surbhi are suitable for high income and tax
categories.
SINGLE PREMIUM POLICIES
LIC ING Vysya
99
BIMA NIVESH
This is a unique, short-term,
multiple benefits insurance
plan which provide safety,
liquidity attractive returns
and tax benefit.
This plan can be assigned as
a collateral security,
It provides loyalty and
guarantee addition too.
ING Vysya REASSURE
A safe and comprehensive plan for those
about to retire or has retired. It combines
best of insurance and investment,
Liquidity with assured and steady annual
returns. Life cover up to 110% of premium
paid.
ING Vysya ASSURE INVEST
An investment with healthy returns and
added benefit of insurance.
This policy has a fixed term of 7 or10 yrs.
ING Vysya LIFE LINK
An ideal market linked insurance plan that
enables you to enjoy the upside of market
100
returns,
It gives you flexibility of choosing your
investment option between growths,
income or balanced plan.
Under the single premium policies heading LIC just provides one policy
as compared to ING Vysya, which gives different policies.
Moreover ING Vysya gives higher assured returns and various other
benefits.
101
TERM INSURANCE PLANS
LIC ING Vysya
BIMA KIRAN
A plan with the provision for return
of premium paid on surviving of the
term.
Free term cover after maturity
provided the policy is in full force.
Having an added attraction of loyalty
addition.
JEEVAN GRIHA
For people desirous of obtaining a
housing loan with policy acting as
collateral security.
It ensure repayment of loan in the
event of premature death of the
ING Vysya LIFE GUARD
An ideal low cost policy that
covers your life with
uncertainties.
It comes with a choice of two
convenient premium payment
modes-one time and regular.
It gives the flexibility of accident
and disability cover for a extra
premium .
Minimum premium payable
2400 per annum. It has no
maturity benefits.
102
borrower.
A high risk low cost plan.
Available as double and triple cover
plans.
Comparison between the plans of both the companies’ shows that while
ING Vysya provide more flexible and stable return plans the LIC are safer
plan taking care of family as a whole.
Again LIC provides different plan under this category of life insurance.
LIC ING Vysya
JEEVAN BALYA
Plan provides for a monthly income
up to age of 21 in case of
SMART KID
Plan designed for critical
educational milestone include
103
unfortunate death of parents,
Premium waiver benefit is
available.
BAL VIDYA
The plan takes care of family
expenses-on school college, health
or just starting a career ,
Money in regular monthly
installments and in lump sum at
specific point of time.
specialized course in the country
and abroad,
The sum assured is paid
immediately from 100,000 to
300,000
All future payments are waived off,
Most importantly the Child’s will
continue to receive the policy
benefits.
104
DATA ANALYSIS
PROFILE OF INSURED PERSON
Age No. of Respondents
25-35 38
105
35-45 44
45-55 8
55-65 10
For 100 people who are opting for life insurance, the average is 39.67
for all age groups .
106
The modal class is 35-45 having frequency 44 which is a highest
frequency that means people between age of 35-45 constitute the
maximum share of life insurance.
INSURED PEOPLE
PROFILE NUMBER OF RESPONDENTS
Service 55
Self Employed 30
Business 8
Retired 7
107
The above graph shows 55% of the insured persons were employees
and 35% are self-employed
108
INCOME
INCOME NUMBER OF RESPONDENTS
5000-10000 38
10001-20001 32
20001-30000 8
30001 & above 22
109
From the total sample of 100, 38 belongs to 5000-10000 Income groupFrom the total sample of 100, 38 belongs to 5000-10000 Income group
and 10001-20000 income group that is 32 respectively .and 10001-20000 income group that is 32 respectively .
PREFERENCE OF RESPONDENTS OF INSURANCE COMPANY
COMPANY’S NAME NO. OF RESPONDENT SHARE (%)
110
LIC. 78 78
SBI Life Insurance 7 7
ICICI Prudential 10 10
OM Kotak Mahendra 3 3
111
Most of (79%) of the people have LIC policy and is ranked number one
by that percent of respondent.
112
Investment objectives
INVESTMENT OBJECTIVES NO.OF RESPONDENTS
To Meet Long-Term Liability 14
Retirement Benefit 40
Child’s Marriage 18
High Returns 5
To Meet Short Term Liability 5
Children Education 18
113
Above Chart shows that the first objective of investment is to get
Retirement Benefit.
114
BENEFITS
BENEFITS NO. OF RESPONDENTS SHARE (%)
Cover Future
Uncertainty
55 55
Tax Deductions 15 15
Future Investment 23 23
Loan Facilities 7 7
115
55% of the respondent believe that covering future uncertainty is the
biggest benefit of insurance policy.
20% & 25% of them believe that other benefit are tax deduction &
future investment.
116
FEATURES OF INSURANCE POLICY
FEATURE NO. OF RESPONDENTS SHARE (%)
Money Back
Guarantee
15 15
Larger Risk Coverage 37 37
Easy Access To Agents 7 7
Low Premium 30 30
Reputation Of
Company
11 11
117
Most of the respondents found larger risk coverage as the most
attracted feature of their policy.
118
INSURANCE POLICY TYPE
POLICY TYPE NO. OF RESPONDENTS SHARE (%)
Life Policy 75 75
Non Life Policy 25 25
Both 45 45
119
The graphs shows that 75% of the respondent have life insurance
policy while 45%have both.
120
FACTS & FINDINGS FACTS/FINDINGS
1.As the people think that insurance is a tool to protect their family & a tax saving device. They are aware of the fact & realizing its, importance. The company should try to expand & build up its infrastructure because there is a large potential for insurance in India.
2.Company should come up with its branch in Delhi. With the objective and goals to meet the demands & expectations of the public. Because the entrance of private players will increase the competition and it would be a tough task to secure a good position in market.
3.Since ING VYSYA Life Insurance is leading with several companies' policies it should be easy for them to penetrate into the market and secure a good position if they pay greater attention to the service part provided to their customer and thereby forming a long and trusted relationship.
4.As seen from the survey that at present 70% of the customer are having insurance policy out of which 87.5% of the customer are planning for new investments. So it can be a good potential for the company and they should make an attempt to trap these customers.
5.43% of the customer is even ready to go for insurance if a service provider away from their
home is providing it. But intend they should
121
provide good products and services. The company should try to convince these customers
and get them in its favor.
DATA ANALYSIS AND INTERPRETATION
DATA ANALYSIS & INTERPRETATION
o DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES
COMPANY'S NAME
NO.OF RESPONDENT
SHARE (%)
L.I.C. 78 78
RELIANCE LIFE INSURANCE
3 3
ICICI PRUDENTIAL
10 10
SBI LIFE 7 7
HDFC 2 2
TOTAL 100 100122
INTERPRETATION
78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by that percent of respondents.
DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS
BENEFITS NO.OF RESPONDENTS
SHARE (%)
Cover Future Uncertainty
55 55
Tax Deductions 20 20
Future Investment
25 25
TOTAL 100 100
INTERPRETATION
55% of the respondents believe that covering future uncertainty is the biggest benefit of an insurance policy.
123
Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and future investments respectively.
DATA PROVIDES FEATURES OF INSURANCE POLICY THAT ATTRACTED RESPONDENTS
FEATURE NO.OF RESPONDENTS
SHARE (%)
Money Back Guarantee
15 15
Larger Risk Coverance
37 37
Easy Access to Agents
7 7
Low Premium 30 30
Company's Reputation
11 11
TOTAL 100 100
INTERPRETATION
o Majority of the respondent (37%) found Larger risk coverance as the most attracted feature of the all.
124
DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE RESPONDENTS
POLICY TYPE NO. OF RESPONDENTS
SHARE (%)
LIFE POLICY 75 75
NON LIFE POLICY
25 25
BOTH 45 45
INTERPRETATION
75% of the respondents have Life Insurance Policy while 45% have both. (The % is calculated out of 280 positive response)
DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE
RESPONSE NO. OF RESPONDENTS
SHARE (%)
A saving tool 81 81%
A tax saving device 74 74%
A tool to protect your family
100 100%
INTERPRETATION125
81% of the respondents have perception of Insurance being a saving tool.
And 74% of the respondents have perception of Insurance being a tax saving device.
But 100% of the respondents are with the view that Insurance is a tool to protect your family.
DATA SHOWS PEOPLES HAVING INSURANCE
RESPONSE NO. OF RESPONDENTS
SHARE (%)
Yes 70 70%
No 30 30%
Total 100 100%
INTERPRETATION
Of the sample size of 400 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.
126
DATA SHOWS BUYING PROCESS OF THE PEOPLE
BUYING PROCESS
NO. OF RESPONDENTS
SHARE (%)
Customer approached Insurance company/Agent
45 45%
Company/agent approached customer
55 555
127
FINDINGSFINDINGS
Based on the quantitative analysis the major findings of the study haveBased on the quantitative analysis the major findings of the study have
been highlighted below….been highlighted below….
► Most of the people are satisfied with the extent of their life insuranceMost of the people are satisfied with the extent of their life insurance
cover. They are not interested in buying more life insurance.cover. They are not interested in buying more life insurance.
►People do not consider life insurance as a good savings because of lowPeople do not consider life insurance as a good savings because of low
returns.returns.
►As life insurance is a long term contract, Maximum people do notAs life insurance is a long term contract, Maximum people do not
have faith on private life insurance companies, they still prefer LIC.have faith on private life insurance companies, they still prefer LIC.
►Because of less advertising not many people are aware about privateBecause of less advertising not many people are aware about private
life insurance companies.life insurance companies.
►Most of the people do not know about broker, corporate agents andMost of the people do not know about broker, corporate agents and
banc assurance, they rely on their agents only.banc assurance, they rely on their agents only.
►The most preferred type of plan is money back. The reason beingThe most preferred type of plan is money back. The reason being
availability of funds after every five years which can be used for payingavailability of funds after every five years which can be used for paying
further premium, thus saving the regular income.further premium, thus saving the regular income.
► Some people have no idea about what type of cover they have.Some people have no idea about what type of cover they have.
128
Most of the people feel that life insurance is essential but they thinkMost of the people feel that life insurance is essential but they think
returns are low.returns are low.
►Some people have their doubts on the credibility and long stay ofSome people have their doubts on the credibility and long stay of
private insurance companies.private insurance companies.
129
LIMITATION OF THE STUDYLIMITATION OF THE STUDY
No study is generally full proof, this report suffers from certain limitationNo study is generally full proof, this report suffers from certain limitation
with respect to information and analysis.with respect to information and analysis.
The reason for the above are related to:The reason for the above are related to:
►It was difficult to get appointment from the person whom I knowIt was difficult to get appointment from the person whom I know
because of their busy schedule .because of their busy schedule .
► Since the project had to be submitted within seven weeks and withinSince the project had to be submitted within seven weeks and within
this time period It’s very difficult to convert .this time period It’s very difficult to convert .
Since the study involved a through analysis of the insurance market and Since the study involved a through analysis of the insurance market and
►relative study of various players offering the similar products and thatrelative study of various players offering the similar products and that
of similar, it was required a dedicated labor in term of both time andof similar, it was required a dedicated labor in term of both time and
effort. Since the curriculum did not permit more time, the study had toeffort. Since the curriculum did not permit more time, the study had to
be very limited.be very limited.
►ING-VYSYA is a newly establish company in Guwahati and it has onlyING-VYSYA is a newly establish company in Guwahati and it has only
one branch in North East . The company is not fully successful to give aone branch in North East . The company is not fully successful to give a
brand awareness through advertisement, banners and hoardings .brand awareness through advertisement, banners and hoardings .
CONCLUSION
130
The various conclusions I had drawn from my project are: -There has
been tremendous change in the insurance history and with it there has
been continuous growth in this sector both in Indian as well as in the
world context.
The opening up of the insurance sector has changed the whole look of
the industry. While the LIC in order to face the competition is coming
with new strategies. New players like ING Vysya are leading the sector
due to their strategic management and tailored made projects.
From my research also I conclude that though the awareness and people
opting for LIC plans are more as compare to ING Vysya but the later are
gaining momentum in the market day by day. The primary reasons for
buying an insurance policy, whether life or non-life is to protect us from
vagaries of life. We do not invest in insurance for returns; rather we
invest in it for regrettable necessities. Though a large proportion of
policies available in the country provide for returns, but nobody is
looking for returns to the inflation rate. So what does insurance offer,
perhaps peace of mind, but even that takes time, due to poor claim
performance .
131
The demand for insurance is likely to increase with rising per-capita
incomes, rising literacy rates and increase of the service sector, as has
been seen from the example of several other developing countries. In
fact, opening up of the insurance sector is an integral part of the
liberalization process being pursued by many developing countries .
Insurance as a concept has not been able to make headway in India.
There has been a strong fall in insurance business in recent years.
Furthermore, it can be observed that non-life business is not increasing
as strongly as life business. Life insurance business by contrast achieved
average growth rates of 6%, although the actual rates ranged from 0% to
13%. This shows on the one hand the increasing significance of life
insurance as an instrument for old age provisions and on the other hand
indicates the sensitivity of life insurance to changes in the institutional
and economic environment.
So lets conduct this business with utmost economy with the spirit of
trusteeship; thereby making insurance widely popular.
SUGGESTIONS
132
Advertising of insurance product should stress on the need of security.
Insurance should be popularized as the means of securing future rather
than saving tax.
New entrants should come out with innovative riders.
Policy should be issued quickly and with less formality.
Other services should also be improved.
Newspaper/Magazines and television are the most effective medium of
advertising the life insurance.
Insurance agent should be well trained.
Insurance companies also give preference to whole family Insurance to
attract the customers.
People are less aware about health insurance, because they think there is
no return so that, this is not beneficial to them, so that there should be
much information give to the people about health insurance.
Insurance products should be more flexible to pay premiums.
RECOMMENDATIONSRECOMMENDATIONS
133
► Advertising of the insurance product should stress on the need ofAdvertising of the insurance product should stress on the need of
security.security.
► Insurance should be popularized as the means of securing futureInsurance should be popularized as the means of securing future
rather than saving tax.rather than saving tax.
► Policies should be issued quickly and with less formalities.Policies should be issued quickly and with less formalities.
► Other service should also be improved.Other service should also be improved.
► Newspaper/Magazines and television are the most effective mediumNewspaper/Magazines and television are the most effective medium
of advertising life insurance.of advertising life insurance.
►Insurance agents should be well trained.
134
SWOT ANALYSIS
Strength:-
► Excellent reputation, ► Loyal Customer,
► Market Leader.
Weaknesses:-
► Small Business, ► Profit Margin too low.
Opportunity:-
► Expand to new large location , ► Local Competition,
► Increase Revenue
Threat:-
► Lack of organize workforce,
► Lack of brand Awareness in India.
BIBLIOGRAPHY135
► Abhishek Agarwal - Distribution of Life Insurance Products in India,
Insurance Chronicle, August, 2005.
► Christopher Lovelock - Services Marketing; A European Perspective.
► D C Srivastava & Shashank Srivastava - Indian Insurance Industry -
Transition & Prospects.
► George E Rejda - Principles of Risk Management and Insurance.
► Ian Watts - New Distribution Channels, Insurance Chronicle,
February, 2003.
► V Sesha Iyer - Insurance - Origin & Development, Insurance Chronicle,
February, 2004.
► Non Banking Financial Companies: SBI Banking Briefs, 2005.
Web-sites:-
www.licindia.com
www.inglife.co.in
www.money.com
www.insure.com
www.bimaguru.com
136
![Ing Vysya Zaheer[2]](https://img.pdfslide.net/doc/110x75/5571ffc649795991699e10cf/ing-vysya-zaheer2.jpg)
