internship report

A SUMMER INTERNSHIP REPORT

ON

DYNAMIC STUDY OF INSURANCE

CONDUCTED AT

KOTAK OLD MUTUAL LIFE INSURANCE

SURAT.

SUBMITTED BY

KHUSHBOO BHATT

MBA 2009-11 BATCH

ROLL NO: - MFO9004

INDIAN INSTITUTE OF MANAGEMENT TRAINING

EL-34/5, MIDC, BHOSARI, PUNE-400026.

ACKNOWLEDGEMENT

First of all I am profoundly grateful to INDIAN INSTITUTE OF MANAGEMENT TRAINING for giving me such an opportunity to make a report that has helped me understand the applications of what I have learnt, in professional life.

I would especially like to thank and express my cordial gratitude to Mr. KRUNAL CHAUDHARI and Mr. SATYEN NAIK who provided me this opportunity to work in such a prestigious organization, which enhanced my knowledge base and allowed me to understand the practical application of the various aspect of insurance Sector

I am thankful to SATYEN NAIK and KRUNAL CHAUDHARI who guided me at every step and solved my difficulties at the KOTAK OLD LIFE INSURANCE, during my internship time.

Moreover, I am deeply thankful to my faculty Mr. R.K.RAY. for all his help and support in form of resources sharing, guiding, motivating and helping me to complete and compile my project report.

Last but not least I am extremely thankful to my parents, family members and friends for their help and cooperation to overcome my difficulties during my report preparation.

P REFACE:

To be an MBA student is a matter of pride because you are in a field which helps you to develop from a normal human being into a disciplined and dedicated professional. In the management field you cannot create success stories if you are not a good learner. You need to be a good learner to sharpen your knowledge in the particular field to achieve and attain the desired goals and heights.

Mere bookish or theoretical knowledge cannot help you in any field whether it is management, technology, research, or any other field. The only thing that can help you is having a sound practical knowledge of the concerned field. As part of my learning in management field and also a requirement of the MBA programme, I have been very fortunate to receive practical knowledge in KOTAK OLD MUTUAL LIFE INSURANCE COMPANY

I received my training at Kotak as a requirement of the MBA curriculum. This training has made me clear the difference between the theoretical knowledge and the practical scenario, making me aware of the importance of practical working conditions/situations.

The objective of my training was to study the insurance company dealing in general insurance and life insurance. To know the role of IRDA in insurance sector. Formalities and procedures needed in settling claims. To give comparative analysis of claim settlement procedure followed by premium insurance company in India.

DECLARATION

I, MS BHATT KHUSHBOO hereby declare that this project report is

the record of authentic work carried out by me during the period

from 25 th MAY 2010 TO 2 5 TH JULY 2010 and has not been submitted

to any other University or Institute for the award of any degree /

diploma etc.

BHATT KHUSHBOO

TABLE OF CONTENTS:

SR NO. TOPIC PAGE NO.1. INSURANCE 6

HISTORY OF INSURANCE 7INSURANCE IN INDIA 8

2. REGULATORY BODY OF INSURANCE IN INDIA 12MISSION OF IRDA 12EXCEPTION FROM IRDA 13

3. TYPES OF INSURANCE 144. HISTORY OF LIFE INSURANCE 15

LIFE INSURANCE IN INDIA 175. BASIC TERMS USED IN INSURANCE 196. INSURANCE SECTOR REFORMS 297. LIST OF COMPANIES REGISTERED WITH IRDA 308. TYPES OF LIFE INSURANCE POLICY 319. KOTAK MAHINDRA 3410. OLD MUTUAL 3611. KOTAK OLD MUTUAL LIFE INSURANCE 3812. TYPES OF PRODUCT 4113. DIFFERENCE BETWEEN TRADITIONAL AND ULIP 4314. ORGANISATIONAL STRUCTURE AND FLOW 4415. OPERATIONS AT KOTAK 4616. POLICY MAKING AND RECEIVING PROCEDURE 4717. LAPSATION AND REVIVAL PROCEDURE 5018. CLAIM SETTLEMENT 5519. ISSUES IN CLAIM SETTLEMENT 5620. PROCEDURE OF CLAIM SETTLEMENT 5721. COMPARATIVE ANALYSIS OF PREMIUM

INSURANCE COMPANY IN INDIA61

22. RESEARCH METHODOLOGY 6723. ANALYSIS 7124. FINDINGS 9225. RECOMMENDATIONS 9326. CONCLUSIONS 9427. LIMITATIONS 9528 BIBLIOGRAPHY 9629 ANNEXURE 97

CHAPTER 1. INSURANCEInsurance Business is related with securities of monetary value of assets. Every asset has a value for its owner because its owner earns something by using it. This earning may be in monetary terms or may not be. For example a factory owner or a cow owner can earn money by selling their respective production. And a car owner gets facility of easy travelling, the car using cannot return into monetary term. But if a car owner using his car as a taxi then he can earn in monetary term.

Every asset has a fix time period in which only they can be productive. After end of their fixed age they will get expire and they will not be productive. The owners of assets know about that thing and therefore he arranges things by which he can earn after expiry of his current assets. But there are chances that the assets can expire before their respective age. This can be happen by accidents or any natural calamities. If assets expire before their life end time than it can be inversely affect their owner and other persons also who are the beneficial of these assets.

Insurance is such a system by which the bad results of such type of accidents and natural calamities can be reduced. Insurance is not securing the assets and also it cannot stop any kind of natural calamities or accidents. It only can reduce the burden of loss on their owners and other beneficially.

Logically the Insurance procedure is easy. The people who have the same type of risk are get together and decide among themselves that if any one member get loss than all the other member will divide it equally. For example the all persons who transport goods by ship has the risk related to marine like pirates and bad weather etc. But the persons who are the owner of factories they are not having any risk from the marine but they are having different risk like fire earthquake theft etc…

HISTORY OF INSURANCEIn some sense we can say that insurance appears simultaneously with the appearance of human society. We know of two types of economies in human societies: money economies (with markets, money, financial instruments and so on) and non-money or natural economies (without money, markets, financial instruments and so on). The second type is a more ancient form than the first. In such an economy and community, we can see insurance in the form of people helping each other. For example, if a house burns down, the members of the community help build a new one. Should the same thing happen to one's neighbour, the other neighbours must help. Otherwise, neighbours will not receive help in the future. This type of insurance has survived to the present day in some countries where modern money economy with its financial instruments is not widespread.

Turning to insurance in the modern sense (i.e., insurance in a modern money economy, in which insurance is part of the financial sphere), early methods of transferring or distributing risk were practised by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively. Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practised by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen or lost at sea.

Insurance business is started by marine business. All businessmen were gathered at Lloyd’s House of London and decided that if their goods, which were transported by ship, will damage, than all member will equally divide this loss. This loss can be happen by many reasons like by pirates, bad weather etc…

The first insurance policy was issued in the year 1583 in England. In India an English European Company and Albert Company started the insurance business. These companies were doing Life Insurance.

http://en.wikipedia.org/wiki/Merchant

http://en.wikipedia.org/wiki/Mediterranean

http://en.wikipedia.org/wiki/Code_of_Hammurabi

http://en.wikipedia.org/wiki/Code_of_Hammurabi

http://en.wikipedia.org/wiki/Millennium

http://en.wikipedia.org/wiki/2nd_millennium_BC

http://en.wikipedia.org/wiki/3rd_millennium_BC

http://en.wikipedia.org/wiki/Babylonia

http://en.wikipedia.org/wiki/China

INSURANCE IN INDIAThe business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and these companies were not insuring Indian natives. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative

Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January 1956 that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation

Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long-term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organization servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 Crores of New Business in 1957 the corporation crossed 1000.00 Crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with re-organization happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7 zonal offices and the corporate office. LIC’s Wide Area Network covers 100 divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LIC’s ECS and ATM premium payment facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centers have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the

customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future.

From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire us at LIC to take this message in providing security to their families.

REGULATORY BODY OF INSURANCE IN INDIA

The Insurance Regulatory and Development Authority (IRDA) is a national agency of the Government of India, based in Hyderabad. It was formed by an act of Indian Parliament known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements.

In 2010, the Government of India ruled that the Unit Linked Insurance Plans (ULIPs) will be governed by IRDA, and not the market regulator Securities and Exchange Board of India.

MISSION OF IRDA

“To protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.”

EXCEPTION FROM IRDA

http://en.wikipedia.org/wiki/Securities_and_Exchange_Board_of_India

http://en.wikipedia.org/wiki/Unit_Linked_Insurance_Plan

http://en.wikipedia.org/wiki/Unit_Linked_Insurance_Plan

http://en.wikipedia.org/wiki/Hyderabad_(India)

http://en.wikipedia.org/wiki/Government_of_India

The law of India has following expectations from IRDA

1. To protect the interest of and secure fair treatment to policyholders.

2. To bring about speedy and orderly growth of the insurance industry (including annuity and superannuation payments), for the benefit of the common man, and to provide long term funds for accelerating growth of the economy.

3. To set, promote, monitor and enforce high standards of integrity, financial soundness, fair dealing and competence of those it regulates.

4. To ensure that insurance customers receive precise, clear and correct information about products and services and make them aware of their responsibilities and duties in this regard.

5. To ensure speedy settlement of genuine claims, to prevent insurance frauds and other malpractices and put in place effective grievance redressal machinery.

6. To promote fairness, transparency and orderly conduct in financial markets dealing with insurance and build a reliable management information system to enforce high standards of financial soundness amongst market players.

7. To take action where such standards are inadequate or ineffectively enforced.

8. To bring about optimum amount of self-regulation in day to day working of the industry consistent with the requirements of prudential regulation.

TYPES OF INSURANCE

TYPES OF INSURANCE:

Life Insurance Insurance against risk of loss to one's life is covered under Life Insurance. Life insurance is also known as long term insurance or life assurance. It includes Whole Life Assurance, Endowment Assurance, Assurances for Children, Term Assurance, Money Back Policy etc.

General Insurance Insurance against risk of loss to assets like car, house, accident etc. is covered under General or Non-life Insurance. General insurance includes fire insurance, marine insurance, motor insurance, theft insurance, health insurance, personal accident insurance etc.

HISTORY OF LIFE INSURANCE

TYPE OF INSURANCE

LIFE INSURANCE GENERAL INSURANCE

TRADITIONAL ULIPs FIRE MARINE CASULATY

Life insurance reflects one of the best parts of human beings; caring for others. One buys life insurance because he or she loves their spouse and children. There are benefits while living but the real reason is to make sure others are financially taken care of.

One of the first records of life insurance was in Rome. There, groups came together called Fraters (burial clubs). These were set up by the poor to pay for the funerals of the members and to help the surviving family members financially.

The middle ages had guilds for the various types of highly skilled labor. There are accounts that show that these guilds helped their members with various types of insurance including life insurance and disability insurance.

Life insurance came into its own in England in the late1600's and became popular from that time on. During this time period Lloyd's of London was growing. Lloyd's whose name came from Lloyd's Coffee House where insurance was transacted by ship owners with the underwriters (backers) who met to put together insurance contracts and other shipping and merchant related business.

Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the caravan trade by giving loans that had to be later repaid with interest when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice, perhaps, was how insurance made its beginning.

As European civilization progressed, its social institutions and welfare practices also got more and more refined. With the discovery of new lands, sea routes and the consequent growth in trade, Medieval guilds took it upon themselves to protect their member traders from loss on account of fire, shipwrecks and the like.

Since most of the trade took place by sea, there was also the fear of pirates. So these guilds even offered ransom for members held captive by pirates. Burial expenses and support in times of sickness and poverty were other services offered. Essentially, all these revolved around the concept of insurance or risk coverage. That's how old these concepts are, really.

In 1347, in Genoa, European maritime nations entered into the earliest known insurance contract and decided to accept marine insurance as a practice.

The first step…

Insurance as we know it today owes its existence to 17th century England. In fact, it began taking shape in 1688 at a rather interesting place called Lloyd's Coffee House in London, where merchants, ship-owners and underwriters met to discuss and transact business. By the end of the 18th century, Lloyd's had brewed enough business to become one of the first modern insurance companies.

Insurance & myth…

Back in the 17th century. In 1693, astronomer Edmond Halley constructed the first mortality table to provide a link between the life insurance premium and the average life spans based on statistical laws of mortality and compound interest. In 1756, Joseph Dodson reworked the table, linking premium rate to age.

MILESTONES IN THE LIFE INSURANCE BUSINESS IN INDIA ARE:

1850 Non life insurance debuts with triton insurance company.

1870 Bombay Mutual Life Assurance society is the first Indian

owned life insurer

1912 The Indian Life Assurance Companies Act enacted as the

first statute to regulate the life insurance business.

1928 The Indian Insurance Companies Act enacted to enable the

government to collect statistical information about both life and

non-life insurance businesses.

1938 Earlier legislation consolidated and amended to by the

Insurance Act with the objective of protecting the interests of

the insuring public.

1956 -245- Indian and foreign insurers and provident societies

taken over by the central government and nationalized. LIC

formed by an Act of Parliament, viz. LIC Act, 1956,

With a capital contribution of Rs. 5 Crore from the Government

of India.

The General insurance business in India, on the other hand, can

trace its roots to the Triton Insurance Company Ltd., the first

general insurance company established in the year 1850 in

Calcutta by the British. Some of the important milestones in the

general insurance business in India are:

1907 The Indian Mercantile Insurance Ltd. set up, the first

company to transact all classes of general insurance business.

1957 General Insurance Council, a wing of the Insurance

Association of India, frames a code of conduct for ensuring fair

conduct and sound business practices.

1968 The Insurance Act amended to regulate investments and

set minimum solvency margins and the Tariff Advisory

Committee set up.

1972 The General Insurance Business (Nationalization) Act,

1972 nationalized the general insurance business in India with

effect from 1st January 1973. 107 insurers amalgamated and

grouped into four companies’ viz. the National Insurance

Company Ltd., the New India Assurance Company Ltd., the

Oriental Insurance Company Ltd. and the United India

Insurance Company Ltd. GIC incorporated as a company.

BASIC TERMS USED IN INSURANCE

Accident

A sudden and unintentional happening leading to a loss. In the context of life insurance, it is a sudden and unforeseen happening that causes disability or death of the policyholder.

Simple meaning:- “when sudden & unpredictable happen to policy holder, die or causes disability is called as accident”

Accidental Death Benefit

An add-on benefit in which the benefit is payable in the event of death of the life insured as a result of an accident provided he has opted for this benefit.

Simple meaning:- Additional benefit given on accident that called as Accident Death Benefit.

Accumulation Period

The time interval between the commencement of the policy and the time when benefits are paid out. It is established by the insured.

Simple meaning: - Time duration between starting of policy & benefits are paid out is called as Accumulation period.

Actuary

A professional with expertise in technical aspects of insurance. An actuary is a statistician and mathematician by training.

Simple meaning:- A person expert in technical knowledge of insurance.

Actuarial Cost Method

A method that determines contributions that would be made under an insurance plan.

Simple meaning:- contribution determination of insurance plan is done by actuarial cost method. Agent (Life Advisor)

A representative of an insurance company authorized to sell insurance policies.

Age limits

The maximum and minimum ages above or below which an insurance company will not accept applications for insurance from or will not renew a policy with a person.

Annuitant

The person who will receive annuity benefits at stipulated intervals of time like yearly / half yearly/ quarterly / monthly intervals.

Annuity

The amount paid under an annuity scheme at stipulated intervals like yearly/half yearly/quarterly/monthly intervals.

Annuity Certain

An insurance contract that provides an annuity for a certain number of years, irrespective of whether the insured is alive or dead.

Annuity Consideration

The payment that an annuitant makes for an annuity.

Assignee

The person to whom the benefits of the life insurance policy are assigned.

Assignment

A transfer of the rights and benefits of an insurance policy from one person to another.

Authority

The Insurance Regulatory and Development authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999.

Benefit Period

The time for which an insurance company covers the designated insured or dependents for the benefits.

Beneficiary

The person who receives the benefit of a policy in case of death during the term or the policyholder who receives the benefit on maturity.

Benefit Period

The time for which an insurance company covers the designated insured or dependents for the benefits.

Bonus

Bonus is the amount added to the basic sum assured under a with-profit life insurance policy.

Buying price This is the price at which you enter a fund, based on the market value per unit, increased by the relevant trading costs associated with buying the assets.During the term of the plan, your financial requirements could change. And you may want switch between funds. Your units in the fund would be sold at the selling price and other units bought at the buying price as per your instructions.

Claim

A request for payment of the contractual benefits by the insurer that is made by the insured or the beneficiary.

Concealment

When an applicant withholds critical information from the insurance company, it is called concealment. For instance, if the applicant is suffering from a terminal disease and he does not notify the company of this, he is concealing information.

Simple meaning:- when a person hides some critical information from insurance company that called as concealment.

Dating Back

Dating Back or Back Dating is an option that allows the assured to get the benefits of lower age by commencing the policy from a date earlier than the date on which the proposal form was signed. Back Dating is permissible only within the same financial year.

Death Benefit

The benefit received by the beneficiary (ies) on the death of the insured.

Endowment Plan

A plan in which the amount is paid to a policyholder if he outlives the tenure of the contract or to the beneficiary if the insured person dies before the date on which the policy matures.

Simple meaning:- when a policy holder long live then contract or beneficiary gets after death of policy holder that called as endowment plan.

Managing agent

An agreement with the company by which a person, firm or company is entitled to the management of the whole affairs of a company under the control and direction of the directors unless provided for in the agreement, and includes any person, firm or company occupying such position by whatever name called.

Maturity Date

The date on which the policy term expires.

Money Back Plan

A plan in which part of the sum assured is paid back to the policyholder at regular intervals.

Free look period

A free look period gives the client an option to review the terms and conditions of the policy within 15 days from the date of receipt of the policy document. Where he disagrees with the terms and conditions stated in the policy, he has the option to return the policy, stating the reasons for objection. In such a case the Policy would then be cancelled and the premium paid by the client would be refunded to him, after deducting: proportionate risk premium for the period on cover, expenses incurred by the Insurance Company on medical examination of the client and stamp duty charges.

Group Life Insurance

Life insurance of a group of people under a policy. This group should already be in existence and should not have come together only for the purpose of insurance.

Human Life Value

The present value of the family's share of the breadwinner's future earnings is considered as Human Life Value, for purposes of life insurance.

IRDA

The acronym for the Insurance Regulatory and Development Authority of India, it is the apex body overseeing the insurance business in India. It protects the interests of the policyholders, regulates, promotes and ensures orderly growth of the insurance industry and for matters connected therewith or incidental thereto.

Lapse

The termination of an insurance policy due to non-payment of premia.

Last Birth Day

Age at last birthday.

Level Premium Life Insurance

Life insurance for which the premium remains unchanged year after year.

License

Permission granted by IRDA to the applicant for commencement and operation of the insurance business in India.

Life Insurance

A contract provided for the payment of a sum of money to the person assured or failing him, to the person entitled to receive the same, on the happening of certain event for the consideration. Here, sum of money refers to sum assured/benefits; certain event refers to contingent event; consideration refers to premium.Nomination

A provision by which a policyholder can designate any person to receive the policy money in the event of his death.

Nominee

A person selected by the policyholder to receive the benefit in case of death of the life insured.

Non Forfeiture Option

A clause whereby the insurers do not generally forfeit all the premia paid, in case of a lapse of policy. This benefit is accorded to policy holders because of higher premia paid during the early years and the interest earned on these premia by the insurance companies.

Non Participating policies

These are also called "non-par policies" or “policies without participation in profits". These policies are not entitled for any share in surplus (profits) during the term of the policy

Non-Standard Life

An individual who cannot be granted a policy under normal rates of premia.

Participating policies

These are also called "par policies" or "policies with participation in profits". These policies are not non-par policies and are entitled for any share in surplus (profits) during the term of the policy.

Policyholder

The person who owns the policy, in this case, a life insurance policy.

Premium

The amount paid by a policyholder to the insurance company, in order to be covered under a policy.

Prospect

A potential new customer who can be approached for buying an insurance policy.

Reinstatement

To restore the policy after the insurance policy has lapsed.

Reinsurance

The transfer of part or whole of the risk by the original insurance company to one or more reinsures.

Rider

An add-on benefit available at the option of the policyholders that may alter certain features of a policy by increasing or restricting benefits.

Rural sector

In accordance with the Insurance Act, 1938, any place under the latest census, which has1) A population of not more than five thousand2) A density of population of not more than four thousand per square kilometer and 3) At least 75 per cent of the male working population is engaged in agriculture.

Selling price

This is the price at which you can sell units, based on the market value per unit, less the relevant trading costs associated with selling the assets.

Social sector

In accordance with the Insurance Act, 1938, this includes unorganized sector, informal sector, economically vulnerable or backward classes and other categories of persons, both in rural and urban areas.

Surrender Value

A value payable if you want to surrender the plan before a claim arises.

Term

The tenure of the policy.

Term Cover

A type of life insurance where the sum assured is payable only in the event of death of the insurer during the specified term. In the case of survival, the contract expires and the premium is not paid back to the insured.

Whole Life Insurance

A life insurance policy where benefits are payable to a beneficiary on death of the insured, whenever that occurs. The premium payment can happen for a specified number of years or throughout life.

INSURANCE SECTOR REFORMS

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its Future direction.

The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at “creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms…” In 1994, the committee submitted the report and some of the key recommendations included.`

Insurance regulator IRDA set up.

IRDA starts giving licenses to private insurers: Kotak Life

Insurance ICICI prudential and HDFC Standard Life insurance

first private insurers to sell a policy.

Royal Sundaram Alliance first non life insurer to sell a

policy 2002 Banks allowed selling insurance plans.

LIST OF COMPANIES REGISTERED WITH IRDA

Aegon Religare Life Insurance Company Ltd. Aviva Life Insurance Co. India Ltd. Bajaj Allianz Life Insurance Company Limited Bharti AXA Life Insurance Company Ltd. Birla Sun Life Insurance Company Ltd. Canara HSBC Oriental Bank of Commerce Life Insurance

Company Ltd. DLF Pramerica Life Insurance Company Ltd. Future Generali India Life Insurance Company Limited HDFC Standard Life Insurance Company Ltd. ICICI Prudential Life Insurance Company Ltd. IDBI Fortis Life Insurance Company Ltd. ING Vysya Life Insurance Company Private Limited Kotak Mahindra Old Mutual Life Insurance Limited Life Insurance Corporation of India Max New York Life Insurance Co. Ltd. Metlife India Insurance Company Ltd. Reliance Life Insurance Company Limited. Sahara India Life Insurance Co, Ltd. SBI Life Insurance Company Limited . Shriram Life Insurance Company Ltd. Star Union Dai-ichi Life Insurance Co. Ltd., Tata AIG Life Insurance Company Ltd.

TYPES OF LIFE INSURANCE POLICY

Term Insurance Policy

A term insurance policy is a pure risk cover for a specified period of time. What this means is that the sum assured is payable only if the policyholder dies within the policy term. For instance, if a person buys Rs 2 lakh policy for 15-years, his family is entitled to the money if he dies within that 15-year period.

What if he survives the 15-year period? Well, then he is not entitled to any payment; the insurance company keeps the entire premium paid during the 15-year period.

So, there is no element of savings or investment in such a policy. It is a 100 per cent risk cover. It simply means that a person pays a certain premium to protect his family against his sudden death. He forfeits the amount if he outlives the period of the policy. This explains why the Term Insurance Policy comes at the lowest cost.

Whole Life Policy

As the name suggests, a Whole Life Policy is an insurance cover against death, irrespective of when it happens.

Under this plan, the policyholder pays regular premiums until his death, following which the money is handed over to his family.

This policy, however, fails to address the additional needs of the insured during his post-retirement years. It doesn't take into account a person's increasing needs either. While the insured buys the policy at a young age, his requirements increase over time. By the time he dies, the value of the sum assured is too low to meet his family's needs. As a result of these drawbacks, insurance firms now offer either a modified Whole Life Policy or combine in with another type of policy.

Endowment Policy

Combining risk cover with financial savings, endowment policies is the most popular policies in the world of life insurance.

In an Endowment Policy, the sum assured is payable even if the insured survives the policy term.

If the insured dies during the tenure of the policy, the insurance firm has to pay the sum assured just as any other pure risk cover.

A pure endowment policy is also a form of financial saving, whereby if the person covered remains alive beyond the tenure of the policy; he gets back the sum assured with some other investment benefits.

In addition to the basic policy, insurers offer various benefits such as double endowment and marriage/ education endowment plans. The cost of such a policy is slightly higher but worth its value.

Money Back Policy

These policies are structured to provide sums required as anticipated expenses (marriage, education, etc) over a stipulated period of time. With inflation becoming a big issue, companies have realized that sometimes the money value of the policy is eroded. That is why with-profit policies are also being introduced to offset some of the losses incurred on account of inflation.

A portion of the sum assured is payable at regular intervals. On survival the remainder of the sum assured is payable.

In case of death, the full sum assured is payable to the insured. The premium is payable for a particular period of time.

Annuities and Pension

In an annuity, the insurer agrees to pay the insured a stipulated sum of money periodically. The purpose of an annuity is to protect against risk as well as provide money in the form of pension at regular intervals.

Over the years, insurers have added various features to basic insurance policies in order to address specific needs of a cross section of people.

CHAPTER 2. KOTAK MAHINDRA

One of India's leading financial institutions was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Mr.Uday Kotak, Mr. Sidney A. A. Pinto and Kotak & Company. Industrialists Mr. Harish Mahindra and Mr. Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance Limited. It's been a steady and confident journey to growth and success.

In October 2005, Kotak Group acquired the 40% stake in Kotak Prime held by Ford Credit International (FCI) and FCI acquired the stake in Ford Credit Kotak Mahindra (FCKM) held by Kotak Group.

In May 2006, Kotak Group bought 25% stake held by Goldman Sachs in Kotak Capital and Kotak Securities.

Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporates.

The group has a net worth of over Rs. 2,900 crore, employs around 8,800 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 282 cities and towns in India and offices in New York, London, Dubai and Mauritius. The Group services around 2 million customer accounts.

OLD MUTUAL

Old Mutual was established more than 150 years ago and has developed into an International financial services group whose activities are focused on asset gathering and asset management. The Old Mutual Group offers a diverse range of financial services in three principal geographies: South Africa, the United States and the United Kingdom. The company is listed on the London Stock Exchange with a market capitalization of approximately $6 billion and is a member of the elite FTSE 100 index. In the 2003 rankings of the World's 500 largest corporations by Fortune magazine, Old Mutual climbed 87 places to position number 366 and was also listed as the 14th largest insurance company in the world.

Old Mutual is the largest financial services business in South Africa, through its life insurance, asset management, banking and general insurance operations. The company serves 4 million life insurance policyholders and employs over 13 000 South Africans in its local operations.

In the USA, Old Mutual is one of the top ten fixed annuity businesses offering an array of specialist asset management skills through its 23 asset management businesses. The company’s US Life business recorded sales of $4 billion at the end of 2002.

Operations in the United Kingdom are focused on wealth management, through Gerrard as one of the leading private client stock broking businesses in the UK.

The Old Mutual Group has the ability to cater for a variety of consumer segments and offers a comprehensive and innovative range of products for all income groups.

KOTAK OLD MUTUAL LIFE INSURANCE

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc. At Kotak Life Insurance, we aim to help customers take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially independent.

Kotak Mahindra Old Mutual Life Insurance is the 74:26 joint ventures between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Mahindra Old Mutual Life Insurance is one of the fastest growing insurance companies in India and has shown remarkable growth since its inception in 2001.

VISION

Kotak Life Insurance has a deep rooted commitment to improve the quality of life of its customers, employees and stakeholders. We aim at improving the long term value in our relationship by continuous innovation and improvements. We do this by our three-prong effort which strives to make Kotak Life Insurance a corporate with values.

Increase Customer Value

Kotak Life Insurance has gone to the heart of its customer's requirements and developed products which are unique and serve the customer needs perfectly. We built a relationship of mutual trust and benefit to serve the Indian customer. At Kotak Life Insurance the customer always comes first.

Cohesive Work Environment

We form long-term partnership with our employees by offering them an invigorating work experience. We not only demand loyalty, sincerity and values but also give it back in equal measures. Kotak Life Insurance will like to offer its employees space to grow, innovate and build a long-term career.

Work with Honor

Kotak Life Insurance delivers everyday services in the marketplace with the high sense of duty and commitment. Our employees strive to build the long-term value for all those come in contact with Kotak Life Insurance. Our consumers, distributors, employees, shareholders

and the nation have our commitment that we will uphold the values of trust, integrity and a Sense of Honor in every thought, act and deed in order to positively contribute to individual, society and nation growth.

MISSION

We focus on the needs of our customers and create confidence, trust and loyalty by offering a wide range of innovative insurance solutions.

Strengthened by our commitment to professional management, we ensure the continued growth and advancement of our employees.

GROUP COMPANIES

Kotak Mahindra Bank Ltd.

Kotak Mahindra Capital Company Ltd.

Kotak’s International Business

Kotak Mahindra Prime Ltd.

Kotak Securities Ltd.

Kotak Mahindra Asset Management Company

Kotak Mahindra Old Mutual Life Insurance Ltd

Kotak Private Equity Group (KPEG)

Kotak Realty Fund

TYPES OF PRODUCT

There two major categories under which all life insurance plans can be categorized. These categories are as follows:

Traditional plans – Traditional life insurance plans make sure that the investments made by the policy holders are not exposed to equities. They are also called as non-unit linked insurance plans. Such plans are suited for customers looking for pure risk protection. These plans are also suitable for those who are totally risk averse and want complete safety of their investments.

Unit Linked Insurance plans (ULIPs) –ULIPs, as the name suggests, allows for the investments made by the policyholders to get exposed to equities. They may also be called as market linked life insurance plans. ULIPs are suited for customers who aim for wealth creation over a long term. The level of equity exposure can be as per your risk appetite thus making ULIPs highly flexible.

http://www.kotaklifeinsurance.com/ver2/individual/individual-life-insurance-plans.php

TRADITIONAL PLANS IN KOTAK LIFE INSURANCE

Kotak preferred term plan.

Kotak money back plan.

Kotak internal life.

Kotak capital multiplier.

Kotak endowment plan.

UNIT LINKED PLANS OF KOTAK LIFE INSURANCE

Kotak single investment plan.

Kotak super advantage plan.

Kotak head start future protect.

Kotak long life secure plan.

Kotak pension retirement plan.

Kotak platinum advantage.

Kotak second inning plan.

Kotak guaranteed pension builder.

DIFFERENCE BETWEEN TRADITIONAL AND ULIP PRODUCT

ULIPs TRADITIONAL PLANS

The premiums, in excess of risk cover, is invested as desired by the policyholder,

All the premiums go into a common fund and are invested at the insurer’s discretion.

The investment return may vary depending on the market movements and the investment risk is borne entirely by the policyholder.

There are two categories of benefits – guaranteed and non-guaranteed. For guaranteed benefits, the insurer bears the investment risk. However, non- guaranteed benefits, depends on the performance of the insurer.

Withdrawals are allowed. Loss, if any depends on NAV. Loans is not allowed.

Surrender are allowed but at a loss. Loans may be provided.

There are no bonuses, except loyalty bonus in some cases.

For participating policies, bonuses are payable.

The amount of the premium used for insurance coverage, other charges and the purchases of units are unbundled and transparent.

The premium amount used for insurance coverage, other charges and investment are bundled and not known.

Benefits are variable. Benefits are pre-determined.

Loss is likely. Loss in unlikely.

Gains likely depending on market movements.

Gains unlikely except through bonuses.

ORGANISATIONAL STRUCTURE AND FLOW

AREA MANAGER

BRANCH MANAGER

Asst. Br.

MANAGER

SALES MANAGER

AGENCY

MANAGER

CORPORATE

EXECUTIVES

LIFE

ADVISORS

CORPORATE

BANK

ORGANIZATIONAL FLOW:

OPERATIONS AT KOTAK

MD

NATIONAL HEAD

VICE HEAD

AREA MANAGER

BRANCH SALES MANAGER

SALES MANAGER AGENCY MANAGER

LIFE ADVISIORSLIFE ADVISORS

Life advisors meet the prospects and make them understand the

policy plan. When they are ready to take the policy form is filled

up by them.

After that, details are entered in computer and it is send to

verification at branch level.

Branch manager check the required details and if everything

proper, it is forwarded to head office for the verification.

At the head office, actuary checks the required details like

premium to be paid, age of the applicant, his income etc. if

required any more details he asks for such details like medical

certificate, may declare life as sub standard and demand more

premium etc.

After verification, policy is issued in name of applicant and it is

send to the required branch in name of the life advisor.

The advisor collects it from the branch and hand it over to the

prospect.

POLICY MAKING AND RECEIVING PROCEDUREIn Kotak life insurance, they first conduct survey to know preferences of people about policy they would like to take. They make the questionnaire of question related with insurance policy. They ask people about what type of policy they would like to buy. After the survey they do mutual discussion with different marketing mangers, financial managers, actuaries and experts of insurance industry. They all do discussion about how they can make the best policy as people want. After this they send guidelines of making policy product to head office at Bombay to chief marketing manager, chief financial manager, and BOD for their final approval.As they give final approval to this most preferred policy by people. They make policy product to give satisfaction to people. As this the policy making is done.As the policy product has been made the information related with the product will send to different branches by mail. The branches get the name, features and the date when the new product will be launched. Like this, the branches receive information about new product to be launch in future.

DOCUMENTS NECESSARY FOR TAKING POLICY IN KOTAK LIFE INSURANCE

Kotak life insurance take documents for KYC which is short form of “Know Your Customer” to know that whether the person who wants to take policy is eligible to pay premium or not. The documents necessary to take policy for any person are as follows:

Photo of the Person who wants to take policy PAN Card of the Person who wants to take policy Address Proof of the Person who wants to take policy Identity Card of the Person who wants to take policy

FORMAT OF RECEIPT OF POLICY TAKING AND PAYMENT OF

RENEWAL PREMIUM IN KOTAK LIFE INSURANCE

The receipt of policy taking is a confidential document which is dispatch with the documents of policy. As this the Kotak Life Insurance also gives one slip for payment of premium in cash.

[FORMAT OF RECEIPT OF POLICY TAKING

LAPSATION AND REVIVAL PROCEDUREINTRODUCTIONA life insurance policy lapses when the subscriber does not pay the premium within the grace period. When a policy lapses, the holder forfeits the premium paid and the insurance cover. The agent loses the renewal commission. It also impacts the growth of the insurance business and solvency margins of the insurer. Lapsation of a life insurance policy is discontinuation of premium payment by the policyholder during the period of operation of the policy, due to any reason other than the death of the policyholder. The length of life of a lapsed policy can be defined as the period between the month when the last premium installment was paid and the month the policy was issued.

WHEN DOES A POLICY LAPSE?For a unit-linked policy, which is less than three years old, the chance of a lapse begins as soon as you skip a premium. Typically, the insurer sends a reminder and gives a grace period of a month. During this time the life insurance cover would continue, so if the policyholder died during the grace period, the nominee would still be able to get the benefit. However, once the grace period is over, the insurer will send a letter saying the policy has lapsed. But this threat does not hold water for a single-premium policy, since the entire amount is, by definition, paid upfront. For a policy, which is more than three years old, the policy assumes a paid-up value. This would mean that even as further premium flow stops, the policy wouldcontinue to be in force. Once the policy becomes paid up, it will continue to be in force as long as the fund value is sufficient to meet the expenses specified of the policy. Fund value is the total money invested minus charges, the insurer dips into this corpus to meet its expenses if the policyholder does not pay fresh premiums. However, if you have the money, then a good idea would be to continue paying up premiums since the charges would eat into your fund value, pulling the returns down.

PROCEDURE OF LAPSATION:

Suppose if policy is taken on 1st Jan 2009 premium renewal is on 1st Jan 2010 but the person fails to pay premium on that date, then notice is being sent to the policy holder.

After that grace days of 30 days is given to pay the due premium to avoid lapsation.

If premium is not paid within these grace days also than 0 .75% is charged on payment of premium till 6 months.

If premium is not paid till the end of six months than policy will be lapsed.

It’s the role of advisor to inform their clients about premium and save their client’s policy from lapsation.

In kotak as per the data available 80% of clients who have not paid premium on due date have paid their premium within grace days.

DETERMINANTS OF LAPSE RATETo form the lapse rate for a specific life insurer, the value of lapsed policies for ordinary life products is divided by the average total life insurance in force during the time period. This ratio is multiplied by a scaling factor of 100. Ordinary life policies include the following types of insurance plans: level term life; decreasing term; renewable term; traditional whole life; interest sensitive whole or universal life; and graded-premium whole life. One of the major causes for the growing lapsation ratio is forced selling by agents to achieve their targets. Agents also sell policies without taking customers’ needs into account. Interest in lapse rate determinants has become more prominent in recent years as some financial service firms have applied securitization techniques to life insurance policies held by individuals. Under securitization arrangements, the insured person conveys the payment rights of the policy to the firm structuring the securitization product. In return, the insured person receives a onetime cash payment. The securitizing firm pools these policies, using them as the basis for asset-backed securities. Insurance companies, too, may engage in the securitization of their life insurance liabilities by transferring life policies and the assets that back them.

FINDINGS ON LAPSE POLICIES

As per IRDA findings the lapse rates for the non-linked products and linked products over the last three years were as follows:

Lapse rate for seven companies out of sixteen exceeded the industry average (simple arithmetic mean) of 18% (lapse rate by number) and 11.9% (lapse rate by premium amount). However, majority of the companies exceeded the industry average rate (weighted average with weights being premium exposed to risk) by a considerable margin.

Age at entry, mode of premium payment, duration elapsed since policy inception, policy type and type of underwriting are found to be the most significant factors affecting the lapse rates.

Lapse rate with respect to age at entry showed a decreasing trend from age group 18-22 to around 60 years and lapse rate tended to increase from the range below 18 to age group 18-22.

Lapse rate (by number of policies) with respect to mode of premium payment tended to be higher with the frequency of premium payment and lower for monthly and salary deduction modes.

It was observed that the trends in lapse rate with respect to both number and premiums were almost similar to each other.

REVIVAL OF LAPSED POLICIES

For a lapsed policy, the insurer gives up to four years to revive the policy. However, revival becomes difficult because, for the insurer, the policyholder becomes a greater risk with the passage of years. The later you revive, the older you get, which naturally increases the riskfor the insurer. Also, you will have to undergo medical tests. The revival process is easy up to six months from the date of lapsation—all you have to do is pay the premiums. But after six months you will not only have to pay a specified amount as interest, which may be 12-18 per cent of the premium or a charge of up to Rs 500, but may also have to undergo a medical check-up as per the insurer’s specifications. This is paid for by the policyholder. After therevival period is over, the contract shall terminate and the fund value, with the charges subtracted from it, would be paid at the end of the third policy year, or at the expiry of the revival period, whichever is later. It is in your best interests to pay your premiums regularly.In case you forgot to pay your premiums, pay them as soon as possible. And remember: the cover is no longer active when the policy is lapsed.

PROCEDURE OF REVIVAL:

You can revive your lapsed policy, by making an application to Kotak Life Insurance, within a period of five years from the due date of the first unpaid premium and before the maturity of the policy.

Any request for revival after this may be accepted or declined at Kotak Life Insurance’s discretion or subject to such terms and conditions as it deems fit.

The revival of the policy will be effective after Kotak Life Insurance’s approval is communicated in writing to you.

Terms and conditions

The policy may be revived on the following terms:

If the request is made within six months from the due date of the first unpaid premium then evidence of good health will not be required but is subject to a payment of the premiums in arrears and 6% of the premiums in arrears as administration charges.

If the request is made after 6 months but within 5 years from the due date of the first unpaid premium, proof of good health will have to be submitted and evidence of that there is no adverse change in the personal or family history or occupation will also have to be given. In such event, premiums will be re-calculated.

CLAIM SETTLEMENTClaims and loss handling is the materialized utility of insurance; it is the actual "product" paid for, though one hopes it will never need to be used. Claims may be filed by insureds directly with the insurer or through brokers or agents. The insurer may require that the claim be filed on its own proprietary forms, or may accept claims on a standard industry form such as those produced by ACORD.

Insurance company claims departments employ a large number of claims adjusters supported by a staff of records management and data entry clerks. Incoming claims are classified based on severity and are assigned to adjusters whose settlement authority varies with their knowledge and experience. The adjuster undertakes a thorough investigation of each claim, usually in close cooperation with the insured, determines if coverage is available under the terms of the insurance contract, and if so, the reasonable monetary value of the claim, and authorizes payment. Adjusting liability insurance claims is particularly difficult because there is a third party involved, the plaintiff, who is under no contractual obligation to cooperate with the insurer and may in fact regard the insurer as a deep pocket. The adjuster must obtain legal counsel for the insured (either inside "house" counsel or outside "panel" counsel), monitor litigation that may take years to complete, and appear in person or over the telephone with settlement authority at a mandatory settlement conference when requested by the judge.

If a claims adjuster suspects underinsurance, the condition of average may come into play to limit the insurance company's exposure.

In managing the claims handling function, insurers seek to balance the elements of customer satisfaction, administrative handling expenses, and claims overpayment leakages. As part of this balancing act, fraudulent insurance practices are a major business risk that must be managed and overcome. Disputes between insurers and insureds over the validity of claims or claims handling practices occasionally escalate into litigation..

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http://en.wikipedia.org/wiki/Data_entry_clerk

http://en.wikipedia.org/wiki/Records_management

http://en.wikipedia.org/wiki/Claims_adjuster

http://en.wikipedia.org/wiki/ACORD

ISSUES IN CLAIM SETTLEMENT

The claim is the demand that the insurer should redeem the promise made in the contract. The insurer has then to perform his part of the contract i.e. settle the claim after satisfying himself that all the conditions and requirements for settlement of claim have been complied with. In particular he should check

Whether insured event has taken place. What are the obligation assumed under the contract, which are

required to be performed. These may be payment of bonus, payment of sum assured in installments, waiver of future premiums, etc.

Whether the policyholder has performed his part. The policy status with regard to premium position, age admission, outstanding loan and interest, survival benefit, if any legal requirement such as MWP Act ( Married Women’s Property Act), foreign exchange regulations, report of investigations, police reports, etc.

Who are the person entitled to demand performance. Nomination, assignment, income tax notice, prohibitory orders, officials assignee notice – are all relevant.

PROCEDURE OF CLAIM SETTLEMENT

Death Claim

In case of unfortunate event of the death of the Life Insured the following standard documents need to be submitted to the Claims Department :

Duly filled Claim Intimation Form[please ensure all the fields are completely filled up].

Original policy document. Original Death certificate issued by the requisite authority. Last Attending Physician's Certificate in original. Past & Present Hospitalisation / Medical Documents. Cremation / Burial Certificate. From the Beneficiary :

Photo ID with Date of Birth with relationship with the Insured.

Proof of legal title to the claim proceeds (e.g. legal succession paper, assignment deed)

Reason for delay in intimation, if any

If the death has occurred due to any Unnatural cause, in addition to the above, the following documents should also be submitted :

Duly Certified Police Report Duly Certified Police Inquest Report / Panchnama Report Duly Certified Post Mortem Report Duly Certified Chemical Analysis (Viscera) report, if any. Newspaper Cuttings with the photograph of the Accident, if

available.

Critical Illness Claim

In case of a Critical Illness Claim, the rider amount will be paid if the Life Insured is diagnosed to be suffering from any one of the twelve illnesses as specified in the Policy contract and the criteria as laid down for claiming the rider is satisfied. The following documents need to be submitted :

Duly Filled Claim Intimation Form Original Policy Contract Questionnaire to be completed by the Doctor / Hospital treating

the Life Insured. All related Medical Examination Reports in Original*, e.g.

o Laboratory test reports. o X-Ray / CT Scan / MRI Reports & Plates. o Ultrasonography Report. o Histopathology Report. o Clinical / Hospital Reports. o Angiography Reports & Plates. o Others (as may be required for the particular illnesses).

* these can be returned back on request. Note:

1. The Company has a right to require medical examination of the Life Insured and confirmation of the diagnosis of an Insured Critical Condition by a medical practitioner appointed by the Company.

2. The Claim for Critical Illness Rider benefit has to be lodged by the Life Insured within 30 days from the date of diagnosis.

3. The CIB Rider gets terminated automatically on admittance of the CIB claim.

4. The Rider is subject to the conditions and the exclusions as laid down in the "Annexure CIB" to the policy contract.

5. The Rider is subject to the conditions and the exclusions as laid down in the "Annexure CIB" to the policy contract.

6. "Annexure CIB" to the policy contract.

Permanent Disability Claim

In case of Disability Claims, the entire Rider Amount will be paid to the Life Insured where the Life Insured becomes Totally and Permanently Disabled and satisfies the disability criteria as laid down in the Annexure to the Policy Contract. The following documents need to be submitted :

Duly Filled Claim Intimation Form Original Policy Contract Questionnaire to be completed by the Doctor / Hospital treating

the Life Insured. All related Medical Examination Reports in Original*, e.g.

Laboratory test reports. Surgery Reports, if any X-Ray / CT Scan / MRI Reports & Plates. Clinical / Hospital Reports. Others (as may be required for the particular illnesses).

Notes:

1. The Life Insured will have to undergo the required Medical Tests by the Company specified Doctors.

2. The Company should be intimated with the relevant details : o within 30 days of the accident and o within 120 days after the happening of disability with

proof.3. The PDB Rider gets terminated automatically on admittance of

the PDB claim.4. The Rider is subject to the conditions and the exclusions as laid

down in the "Annexure PDB" to the policy contract.

Waiver of Premium Claim

A. Death of the Policy Holder In case of Claims for Waiver of Premiums i.e. where the Policy Holder has availed of the Life Guardian Benefit and the policy holder has passed away the future premiums, as mentioned in the contract, will be waived. The following documents need to be submitted :

As mentioned above in Death Claims

Notes:

1. The Company should be intimated of the death within one year of the occurrence of death.

2. The Accidental Disability Guardian Benefit, if availed, will cease automatically on the admittance of the Claim under the Life Guardian Benefit.

3. The Rider is subject to the conditions and the exclusions as laid down in the "Annexure LG" to the policy contract.

B. Disability of the Policy Holder In case of Claims for Waiver of Premiums i.e. where the Policy Holder has availed of the Accidental Disability Guardian Benefit and the policy holder has become totally and permanently disabled the Basic Premium amount will be waived. The following documents need to be submitted :

As mentioned above in Permanent Disability Claims

Notes:

1. The Life Insured will have to undergo the required Medical Tests by the Company specified Doctors.

2. The Company should be intimated with the relevant details : o within 30 days of the accident and o within 120 days after the happening of disability with

proof. 3. The Life Guardian Benefit, if availed, will cease automatically

on the admittance of the Claim under the Life Guardian Benefit.

CHAPTER 21. COMPARATIVE ANALYSIS OF PREMIUM INSURANCE COMPANY IN INDIA

COMPARATIVE ANALYSIS

Definition

Item by item comparison of two or more comparable alternatives, processes,

products, qualifications, sets of data, systems, etc. In accounting, for example,

changes in a financial statement's items over several accounting periods may be

presented together to detect the emerging trends in the firm's operations and

results.

Purpose

The foremost purpose of comparative analysis is to set a benchmark for a company.

To set a strategy to overcome a gap that is created. To know the loopholes of company function and work on it. To know the status of company.

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http://www.businessdictionary.com/definition/accounting-period.html

http://www.businessdictionary.com/definition/financial-statement.html

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CLAIMS REPUDIATION OF LIFE INSURERS

Source: Annual Report - IRDA Repudiation Ratio % Life insurer 2007-08 2008-09

Aegon ReligareNo Claims 71.43

Aviva 23.96 19.33 Bajaj Allianz 13.02 8.35 Bharti Axa 38.46 44.83 Birla Sunlife 7.47 10.37

Future GeneraliNo Claims 30

ICICIPru 6.57 5.2 ING Vysa 14.01 7.81 Kotak Mahindra 25.32 9.23 Max New York 9.42 7.77 MetLife 21.42 22.77 Reliance Life 8.47 5.67 Sahara Life 4.84 12.3 SBI Life 7.1 15.09 Shriram 19.19 24.27 Tata AIG 24.82 27.78 HDFC SL 4.22 4.8 LIC 1.13 3.4

Aegon Reli

gare

Aviva

Bajaj A

llianz

Bharti Axa

Birla Su

nlife

Future

Genera

li

ICICIPru

ING Vysa

Kotak M

ahindra

Max New

York

MetLife

Relian

ce Lif

e

Sahara

Life

SBI Li

fe

Shrir

am

Tata

AIG

HDFC SL LIC

0

10

20

30

40

50

60

70

80

2007-082008-09

COMPARATIVE ANALYSIS IS CARRIED OUT BETWEEN THREE INSURANCE COMPANIES LIFE INSURANCE CORPORATION OF INDIA, BAJAJ ALLIANCE LIFE INSURANCE AND KOTAK OLD MUTUAL LIFE INSURANCE

OUTSTANDSING CLAIMS

LIC BAJAJ KOTAK13058 7097 200

LIC BAJAJ KOTAK0

2000

4000

6000

8000

10000

12000

14000

INTERPRETATION: Lic is having 13058 claims outstanding. Kotak is having 1.53% less than lic and bajaj is having 11.83% less than lic.

CLAIMS REPUDIATED

BAJAJ KOTAK549 165

BAJAJ KOTAK0

100

200

300

400

500

600

INTERPRETATION: the claim repudiation in terms of percentage bajaj is 332.73% more than kotak life insurance. As lic deals in traditional plans so claims repudiation case in lic will be almost nil.

CLAIMS SETTLED AND PAID

LIC BAJAJ KOTAK664619 11626 3100

LIC BAJAJ KOTAK0

100000

200000

300000

400000

500000

600000

700000

INTERPRETATION: It is clearly indicated that lic has largely settled claims than others.

ADDITIONAL INFORMATION ACQUIRED

Total claims booked with LIC are 661083 in 2009-10 578795 in 2008-09 and 547919 in 2007-08.

Total claims payable with LIC are 674141 in 2009-10 590392 in 2008-09 and 547419 in 2007-08.

Claims intimated with BAJAJ ALLIANCE is 6624. Claim settlement ratio of BAJAJ ALLIANCE is

95.5%. KOTAK paid 93 crores rupees claims in 2008-09 and

191 crores in total. This indicates that 91 crores are paid in this year i.e. 2009-10.

75% of claims are paid in 7 days. 98% of claims are paid in 15 days. And lastly 100% claims are settled in 3 weeks.

CHAPTER 3. RESEARCH METHODOLOGYRESEARCH OBJECTIVES:

1. Primary Objective:

Main objective of the study is to know the perspective of investors towards Investments and Insurance in special Regards with ULIPS.

2. Secondary Objective:

The objective of my training was to study the insurance company dealing in general insurance and life insurance. To know the role of IRDA in insurance sector. Formalities and procedures needed in settling claims. To give comparative analysis of claim settlement procedure followed by premium insurance company in India.

REASEARCH METHOD:

The method includes the data collection method, nature and format of questionnaire. My survey had 21 questions. Research method contains at least five parts. Research design, sample design, data collection, data analysis and limitations of the study.

The research is conducted to collect the needed information and develop a research plan. Generally the following types of research are conducted.

Exploratory research:-An exploratory research focuses on the discovery of ideas and is generally based on secondary data.

Descriptive research:-A descriptive study is undertaken when the researcher wants to know the characteristics of certain group such as age, sex, education level, income, occupation, etc.

Causal research:-A causal research is undertaken when the researcher is interested in knowing the cause and effect relationship between two or more variables. Such studies are base on reasoning along where tested lines.

In my study, I have used exploratory research design.

SAMPLING DESIGN

When the researcher has decided to carry out a field survey, one has to decide whether it is to be a census or sampling survey. In my case, census survey was almost impossible within time span of two months. Hence, I used sample and my sample size is 200 investors of Surat city.

First of all, a broad choice is to be made between probability sampling and non-probability sampling. I have chosen Non-probability sampling. In Non-probability sampling, further I have selected convenient sampling for my survey.

Convenient sampling, as name suggest, is based on the convenience of the researchers who is to select a sample. This type of method is also called “accidental sampling” as the respondents are included merely on account of being available on the spot where the survey was in progress.

Sources of data:

There are basically two types of data used for the project study:

Primary data:

Primary data are those which are collected afresh and for the first time, and thus they are original data. Primary data are collected through questionnaire method, which is filled by respondents.

Secondary data:

Secondary data means data which is readily available from television, newspaper, magazine etc various secondary data which are used for the study, they are following

Websites Magazines

Research instrument:

Questionnaire:

Research instrument is concerned with how sampling units be approached for obtaining the desire information. Here research instrument is questionnaire. Questionnaire is a set of questions with or without blank space for recording the answers. Here close ended questions are used..

BENEFITS OF THE STUDY:

Study helps to know the interest of people towards ULIPS Study helps to know the investor’s portfolio according to their

age group and occupation. Study helps to gain in-depth knowledge about the various

investment avenues available to the investors and the psyche of the investors regarding the investments in the same.

LIMITATIONS OF THE STUDY:

Because of time, constrains all the areas of the city were not covered for carrying out the survey.

As the topic is very vast, I have not covered sub parts of the investment avenues.

An exhaustive analysis could not be done due to unwillingness of the investors to divulge information about their perception and needs due to some reason.

CHAPTER 4. : DATA ANALYSIS1) Gender:

70

30

Male

Female

Interpretation:

As shown in table, I have surveyed 200 people, from which 70 % were male, while the number of female was 30%

GenderFrequenc

y Percentage

Male 160 80

Female 40 20

Total 200 100

2)AGE:

Objective: To Find out the Preferences in different investment avenues on the basis of age group

AGE GroupFrequenc

yPercentag

e

18 - 30 114 57

31 - 45 60 30

46 - 59 16 8

60 and above 10 5

Total 200 100

18 - 3031 - 45

46 - 5960 and above

0

10

20

30

40

50

6057

30

85

Series1

Interpretation:With the view of investment, the age group of 18 – 30 and 31 – 45 are the most actively investing group. While senior citizens are defensive investors in terms of fix returns from their investments..

3) Occupation:

Objective : To Find out the Preferences in different investment avenues on the basis of age occupations

Self Employed Businessman Professional Salaried0

5

10

15

20

25

30

35

40

45

10

2327

40Series1

Interpretation:

The Graph depicts that the respondents are from diversified occupation. Each groups more or les invests their earnings in certain investment avenues.

Particulars Frequency Percentage

Self Employed 20 10

Businessman 46 23

Professional 54 27

Salaried 80 40

Total 200 100

4) Annual Income:

Objective: To Find out the Preferences in different investment avenues on the basis of Investors Income Group.

Less 1,00,000 1,00,000 to 5,00,000

5,00,000 to 7,00,000

more than 7,00,000

0

5

10

15

20

25

30

35

40

7

40

30

23

Series1

Interpretation:

The respondents who were surveyed, from that

7% have annual income of less than 1,00,000,

40% have income of 1,00,000 to 5,00,000,

30% have income of 5,00,000 to 7,00,000,

23% have income of more than 7,00,000.


Less 1,00,000 14 7

1,00,000 to 5,00,000 80 40

5,00,000 to 7,00,000 60 30

more than 7,00,000 46 23

Total 200 100

5) investor education about Investment.

Objective: To find out whether the people have idea about what investment is or they are still unaware for the same?

39

49

12

YesNoCant Say

Interpretation:

It could be known that majority of the people are confused about what investment actually is and how can one do proper investments.


Yes 78 39

No 98 49

Cant Say 24 12

Total 200 100

6) Priority of investment in preferred sector.

Objective: To See Clients perceptive about his/her investing habits.

Particulars Percentage

Insurance 25

Equity 12

Commodity 5

PPF 9

Mutual Funds 35

Fixed Deposits 8

Real Estate 3

Others 3

Total 100

Insurance

Equity

Commodity

PPF

Mutual Funds

Fixed Deposits

Real Estate

Others

0 5 10 15 20 25 30 35 40

25

12

5

9

35

8

3

3

Series1

Interpretation:

As we can see from table, Majority of the people prefer investing in equity based instruments such as Direct Stocks, Mutual Funds and Insurances.

7) Kindly mention proportion of investment that you are investing in different sectors? (In %)

Objective: To check out the proportion of investments of different investors based on their appetite.

14

15

6

1132

8

104

InsuranceEquityCommodityPPFMutual FundsFixed DepositsReal EstateOthers

Interpretation:

Again, a clear trend can be visible whereby clients prefer equity instruments over debt instruments.


Insurance 14

Equity 15

Commodity 6

PPF 11

Mutual Funds 32

Fixed Deposits 8

Real Estate 10

Others 4

Total 100

8) Do you have knowledge about Life Insurance?

Objective: To Check out the awareness amongst people regarding the concept of Life Insurance.

85

15

Yesno

Interpretation: Majority of the People are aware about what the concept of Life Insurance is. As per the survey around 85% people agreed that they had a clear idea about Life Insurance.


Yes 170 85

No 30 15

Total 200 100

9) IF yes, than have you invested in Life Insurance Products?

Objective: To see the gap between the people who know about life insurance and people who have invested in Life Insurance.


Yes 114 57

No 30 43

Total 200 100

57

43

YesNo

Interpretation:

Out of the 85% that has knowledge about Life Insurance product, only 57% has made investment in Life Insurance Product. Hence a huge demand – supply gap is visible easily.

10) Which plan in Insurance do you mostly prefer?

Objective: To study what sort of plan, do the investors still prefer to buy.

Traditional

Safe Invest

Endowment Plan

ULIPS

Others

0 5 10 15 20 25 30 35 40

38

17

22

15

8

Series1

Interpretation:

Even today, majority of the people prefer buying Traditional plans as compared to other insurance products. Hence, it is quite visible that the main focus is on saving instead of investing.


Traditional 76 38

Safe Invest 34 17

Endowment Plan 44 22

ULIPS 30 15

Others 16 8

Total 200 100

11) What amount you pay for premium per year?

Objective: Just to know the willingness to invest in Insurance against their yearly income

5,000 - 10,000 10,000 - 25,000 25,000 - 75,000 75,000 or more0

10

20

30

40

50

60

10

20

52

18

Series1

Interpretation:

10% of the respondents pay premium of 5000 – 10,000, 20 % pay premium of 10,000 to 25,000, 52% pay premium of 25,000 – 75,000, 18% pay premium of 75,000 or more.

Amount of Premium Frequency Percentage

5,000 - 10,000 20 10

10,000 - 25,000 40 20

25,000 - 75,000 104 52

75,000 or more 36 18

Total 200 100

12) Which reference group affects your decision in buying insurance?

Objective: To see the source of the client in buying an insurance product.

Friends Relatives Insurance Agents Office Staff0

5

10

15

20

25

30

35

4039

30

11

20

Series1

Interpretation:

Majority of the people from the survey rely on either friends or relatives while making a decision.

Reference Frequency Percentage

Friends 78 39

Relatives 60 30

Insurance Agents 22 11

Office Staff 40 20

Total 200 100

13)Do you have any idea about Private Life Insurance Companies?

Objective: To see if the people know the difference between Private and Public Life Insurance Company

98

2

yesno

Interpretation:

From the survey I found that 98% have knowledge of private life insurance companies and 2% don’t have idea about private life insurance companies.

14) Which company’s Life Insurance Policy do you have?


Yes 196 98

No 4 2

Total 200 100

Objective: To check the trend going on in the market regarding different companies.

L.I. Companies Frequency Percentage

LIC 84 42

ICICI Pru 18 9

Birla Sunlife 16 8

Max Newyork 14 7

Bajaj allianz 16 8

Kotak 20 10

Tata AIG 10 5

Reliance 6 3

HDFC Standard Life 14 7

Others 2 1

Total 200 100

LIC

ICICI Pru

Birla Sunlife

Max Newyork

Bajaj allianz

Kotak

Tata AIG

Reliance

HDFC Standard Life

Others

0 5 10 15 20 25 30 35 40 45

42

9

8

7

8

10

5

3

7

1

Series1

Interpretation:As per the graph, even today the maximum investment is done through LIC only, followed by Kotak and ICICI Prudential.

15) Do you have any idea about Kotak Life Insurance Company?

Objective: To Know the awareness amongst people regarding Kotak Life Insurance Company.

92

8

yesno

Interpretation: From the above graph, it is seen that 92% of the people surveyed had an idea about Kotak Life Insurance Company and 8% people did not had any idea.


Yes 184 92

No 16 8

Total 200 100

16) Rank the factors which affect your investment from 1 to 3 in respect with 1 as highest and 3 as the lowest?

Objective: To study the factors which influence the client the most while investing.

45

22

33

ReputationAggressive MarketingBehaviour of representative

Interpretation:

It is seen from the graph that the most important factor among the three which affects the investment is Reputation (45%), then it is the behaviour of the representative (33%) and lastly aggressive marketing (22%) plays role.


Reputation 45

Aggressive Marketing 22

Behaviour or representative 33

Total 100

17) What is your objective behind purchasing this Insurance

policy?

Objective: To Study the main purpose behind buying an insurance product.


Tax benefit 50 25

Provision for higher studies 26 13

Investments 56 28

Protection for Marriage expenses 28 14

Repayment of Loan 14 7

Retirement Planning 26 13

Total 200 100

25

13

28

14

7 13 Tax benefit

Provision for higher studies

Investments

Protection for Marriage expenses

Repayment of Loan

Retirement Planning

Interpretation:

From the above graph, it is observed that the main objective behind purchasing insurance policy is investment purpose (28%) and then it moves on to tax benefit contributing 25%. Then the objective of Protection for Marriage expense (14%) comes into the picture. Retirement planning and Provision for higher studies both (13%) being the fourth important objective and lastly repayment of loan contributing just 7%.

18) Which is your preferred mode or time period for paying premium amount?

Objective: To check out the preference of the client as compared to their earnings.

Monthly

Quarterly

Half - Yearly

Yearly

0 5 10 15 20 25 30 35

35

30

20

15

Series1

Interpretation:

Here it is seen that the most preferred time period for paying premium amount is Monthly(35%) then it goes to quarterly(30%), half-yearly(20%) and then finally Yearly(15%).

Mode of Payment Frequency Percentage

Monthly 70 35

Quarterly 60 30

Half - Yearly 40 20

Yearly 30 15

Total 200 100

19) What do you think, is your money secured in Insurance (ULIPS)?

Objective: To see how much does the customer trust the insurance product.

37

47

15 1

Very SecuredSecuredunsecuredVery Unsecured

Interpretation:

From the survey conducted, it is observed that 47% of the people surveyed think that their money is secured in Insurance(47%) and 37% people think that their money is Very secured. 15% of the respondents feel that their money is Unsecured and only 1% respondents feel that it is very unsecured.


Very Secured 74 37

Secured 94 47

unsecured 30 15

Very Unsecured 2 1

Total 200 100

20) Are you getting timely reminder of your premium paying from your agents?

Objective: To check out the services provided by the Life Advisors, once the policy has been issued.

Yes No0

10

20

30

40

50

60

70

80

90

82

18

Series1

Interpretation:

From the survey conducted, 82% respondents agreed that they are getting timely reminder for paying premium by agents and only 18% did not agree to it.


Yes 164 82

No 36 18

Total 200 100

21) What is your overall satisfaction level in respect to investment in ULIPS?

Objective: To see how much is the client satisfied with the investment in ULIPS

8

15

2732

12

6

ExcellentVery GoodGoodSatisfactoryPoorVery Poor

Interpretation:

Overall, it seems that people are quite satisfied with their investment in ULIPS; only a small number of people seem to be dissatisfied with ULIPS.

Level of Satisfaction Frequency Percentage

Excellent 16 8

Very Good 30 15

Good 54 27

Satisfactory 64 32

Poor 24 12

Very Poor 12 6

Total 200 100

CHAPTER 5: FINDINGS & SUMMARY

FINDINGS

The young investors generally prefer putting their investments into Equity and Equity Based Instruments.

The Investors with above the age of 46 prefer a safer investment avenue as compared to the young investors.

Business class people are seems to be more indulged towards Real Estate and Commodities, however the salaried class are more indulged towards Mutual Fund, PPF, Direct Stocks Etc.

Majority of the Income group are between 1 to 5 Lacs or 5 to 7 lacs, however as compared to the annual income, the investment towards Insurance is too less.

It was also observed that majority of investors included bank Deposits in their investments portfolio.

Despite Surat being a developed city, it was observed that people still prefer to invest through govt backed companies like LIC instead of going for the Pvt. Insurance Companies.

Majority of the respondent preferred paying premium on monthly basis, showing a clear indication that the salaried are the one who put their investment into insurance.

The most reliable source of information is Family and Friends. One of the major reasons for buying an insurance policy is to

take the benefit of Income Tax under Sec 80C.

RECOMMENDATIONS

RECOMMENDATIONS:

Women need to be more aware and should actively participate in the investment

process

More transparency should be kept from the side of the Pvt insurance companies so

that people can start trusting them and invest with them.

It is been said that higher the risk, higher the return. So one needs to convince the

people to start investing in different Equity Related Products (Specially ULIPS) so

that they can achieve a higher return in a short time span as compared to traditional

investments.

Proper education regarding ULIPS should be spreaded across so that the common

man can be aware about ULIPS and its benefits

Compared to the annual income, the amount invested in insurance is not adequate, so

the life advisors should explain people the concept of “human life value” (HLV) and

should convince them to take insurance of adequate amount as calculated by HLV.

Still L.I.C dominates the market and people have more faith on it. So the private

companies like Kotak need to create confidence among masses regarding the private

players. They need to felt their presence in the market, so they must go for media

advertisement or any other way of publicity.

During the survey I found that, Muslim community are not so much interested in

insurance sector, so some efforts need to be made to attract those people, provided

their religious sentiments should not be hurt.

Study can be conducted on different topic like ULIPS Vs MUTUAL FUND, impact

of private insurance companies on people views, details study and pros and cons of

ULIPS plan with Traditional plan.

CONCLUSIONS

CONCLUSION:

The money one earns is partly spent and the rest saved for meeting future expenses. Instead of keeping the savings idle one may like to use savings in order to generate returns on it in the future.

Thus we can conclude that the investors of Surat City are very cautious about their future and make their investments very carefully

The various investment avenues available in the market are known to majority of the customers

The investors of Surat city are very far – sighted and so they plan their future uncertainties beforehand only.

The investors are very reliable they pass on all the positive and negative news to friends and relatives as the graph suggested. Hence special care should be taken as this mode can be very useful to develop the business.

Insurance awareness is found in population of surat but not exactly what is insurance.

CHAPTER 27. LIMITATION

The basic limitation was time duration. Two months are not enough to carry out a project on huge topic.

According to IRDA rule no individual can have details of clients dealing with particular company.

Many a times it so happened that guide was busy and proper information was not gathered.

Staff use to quote everything is on website but in actual nothing was there on site.

BIBLIOGRAPHY

WWW.GOOGLE.CO.IN WWW.IRDA.GOV.IN WWW.WIKIPEDIA.COM WWW.KOTAKLIFEINSURANCE.COM A BOOK THAT IS PRINTED FOR ADIVISOR NAMELY IC-

33 LIFE INSURANCE BOOK. WWW.FINWINONLINE.COM WWW.LICINDIA.COM EVEN I AM THANKFUL TO MRS SKRUTI VAIDYA WHO

PROVIDE ME THE INFORMATION OF LIFE INSURANCE CORPORATION AND MR. PARITOSH DESAI WHO PROVIDE ME THE DETAILS OF BAJAJ ALLIANCE PERTANING TO CLAIMS SETTLEMENT PROCEDURE.

http://WWW.LICINDIA.COM/

http://WWW.FINWINONLINE.COM/

http://WWW.KOTAKLIFEINSURANCE.COM/

http://WWW.WIKIPEDIA.COM/

http://WWW.IRDA.GOV.IN/

http://WWW.GOOGLE.CO.IN/

ANNEXURE

Questionnaire

To study the “Awareness regarding Insurance and Investment in people and customers thinking regarding the investment in ULIPS.”.

Name:

Contact No.:

2) Gender:

A) Male [ ] B) Female [ ]

3) Age:

A) 18 – 30 [ ]

B) 31 – 45 [ ]

C) 46 – 59 [ ]

D) 60 & Above [ ]

4) Occupation:

A) Self Employed [ ]

B) Salaried [ ]

C) Professional [ ]

D) Businessman [ ]

5) Annual Income:

A) Less than 1,00,000 [ ]B) 1,00,000 to 5,00,000 [ ]C) 5,00,000 to 7,00,000 [ ]

D) above 7,00,000 [ ]

5) Do you have any idea about Investment?

[ ] Yes [ ] No [ ] Can’t say

6) If yes, then in which sector are you investing, rank them

Chronologically?

[ ] Insurance [ ] Mutual Funds

[ ] Equity [ ] Fixed Deposits

[ ] Commodities [ ] Real Estate

[ ] PPF [ ] Others

7) Kindly mention proportion of investment that you are investing in

different sectors? (In %)

[ ] Insurance [ ] Mutual Funds

[ ] Equity [ ] Fixed Deposits

[ ] Commodities [ ] Real Estate

[ ] PPF [ ] Others

8) Do you have about Life Insurance?

[ ] Yes [ ] No

10) IF yes, than have you invested in Life Insurance Products?

[ ] yes [ ] no

10) Which plan in Insurance do you mostly prefer?

[ ] Traditional [ ] Safe investment plan[ ] Endowment plan [ ] ULIP[ ] Others ___________

11) What amount you pay for premium per year?

[ ] 5,000-10,000 [ ] 10,000-25,000[ ] 25,000-75,000 [ ] 75,000 & above

12) Which reference group affects your decision in buying insurance Policy?

[ ] Friends [ ] Insurance agents[ ] Relatives [ ] office group

13)Do you have any idea about Private Life Insurance Companies?

[ ] Yes [ ] No

14)Which company’s Life Insurance Policy do you have?

[ ] LIC [ ] ICICI Pru [ ] Birla Sun Life[ ] Max Newyork [ ] Bajaj Allianz [ ] Kotak Life Insurance[ ] Tata AIG [ ] Reliance [ ] HDFC Standard Life

Mention others, if any :

15) Do you have any idea about Kotak Life Insurance Company?

[ ] Yes [ ] No

16)Rank the factors which affect your investment from 1 to 3 in respect with 1 as highest and 3 as the lowest?

[ ] Reputation of the company[ ] Knowledge and behavior of the representatives[ ] Aggressive Marketing

17) What is your objective behind purchasing this Insurance policy?

[ ] Tax benefit[ ] Provision for higher studies[ ] Investment[ ] Retirement Planning[ ] Repayment of loan[ ] Protection for marriage expenses

18) Which is your preferred mode or time period for paying premium amount?

[ ] Monthly [ ] Quarterly[ ] Half-yearly [ ] Yearly

19) What do you think, is your money secured in Insurance (ULIPS)?

[ ] Very secured [ ] Secured[ ] Unsecured [ ] Very unsecured

20) Are you getting timely reminder of your premium paying from your agents?

[ ] Yes [ ] No

21) What is your overall satisfaction level in respect to investment in ULIPS?

[ ] Excellent [ ] Very Good [ ] Good [ ] satisfactory [ ] poor

[ ] very poor

Thank You

internship report

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