Market Performance and Awareness Rohit

8/20/2019 Market Performance and Awareness Rohit

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INTRODUCTION

People in all values of life are faces with risk and contingencies an unexpected death, loss

of goods due to theft and natural uncertainties, earthquake floods are some examples of

the rise that every body on earth faces. A time passes life faces more dangers from both

natural and ma made. Insurance is the best plan for surviving from such risky and

contingencies. Insurance does not avoid loss, but it compensates to some extent, the loss

that arise from uncertainties.

Insurance is essentially cooperate effort under any insurance arrangement a large

number of persons in persons in effect a to share a loss which a few of them are like to

insure in future when the sharing is dome amongst a large no. of persons, the individual

share remains fairly steady from year to year. Such association of persons for sharing

anticipated losses may be brought about voluntarily by all participants or may be

organied by a few individuals or by an insurance organiations.

!he function of insurance in various is to protect the few against the heavy

financial impact of anticipated misfortune by spreading the loss among many who are

exposed to the risk of similar nature while it is not possible to predict which individual

amongst too many participants are likely to be the victims of future. It is often possible to

forecast the loss which the groups a whole may suffer.

!he sharing to such loss among the participants ensures that the victims are

compensated for the loss suffered by them. As a consequence for heavy and uncertain

loss to some is neutralied by the definite contribution of moderate amounts which every

participant is required to make.


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COMPANY PROFILE

HISTORY OF LIFE INSURANCE

In the early time men who engaged in trade by sea attempted to minimie losses

which amongst a large number of persons who were similarly engaged. "aturally many

ships were arrived safely in port and it was only a few that survived loss. !he many who

did not sufferer loss contributed to mitigate the sufferings of the few who did. So many

goods followed from this arrangement that the traders adopted the idea in many lands and

gradually they come into existence groups of men who specialied in managing the funds

and studying the rates of loss which occurred in the different types of marine ventures.

!his was the beginning of marine insurance.

!he evidence in available about crude form of marine contracts made by the #abylonians.

$hodesians and the %reeks about the middle of the third millennium #&. 'owever, the

early history of insurance is hidden in the mists of antiquity. !he earliest available

reference to some form of Insurance is found in the codes of 'ammurabi and (anu

)(anav *harma Shastra+. !he team -%AS'/(A is used in $ig01edas suggesting

that some form of community insurance was practiced by the Aryans in India over 2333

years ago.

In India, #urial societies are known to have existed during the #uddhist period,

which were invariably mutual in their character. !he village community came to the help

of the families by building up house, protecting the children and apprenticing the boys in

business.


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4I& remained for a long time, largely in the lands of foreign companies but, with

the intense of "ationalism that permitted Indians to enter the sector through 53 centrureis,

Indian offices began to take their due where of the country6s business. 7rom then

onwards, Indian life insurance #usiness has never looked back and every passing year

has witnessed a slow but a steady rise in the per0capita insurance of the country.

It was in the wake of freedom movement that such companies as the "ew India.

Industrial and prudential, 8upiter, the 4akshmi, etc., came to be established. A further

spurt in the formation of new companies was

9itnessed during Second 9orld 9ar when inflationary pressure tended to

increase the volume of business written in the country. 7rom then onwards, the Indian

Insurance #usiness continuously progressed and every passing year witnessed a slow and

steady rise in per0capita insurance in country. At the close of Second 9orld 9ar, the

proportionate share of the business written by the Indian insurers had increased to over

:3; of the total new business written in India.

!he %overnment began to exercise a closer supervision and control in matters of funds

of expenditure and general management of insurance business in the insurance Act of


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policy, providing the temporary cover for a period of twelve months, was issued as early

as Ad. ?!he Amicable Society@ )+ granted fluctuating sum on death till this society

had accumulated sufficient funds to grant a fixed sum on death )+.

!he development of mortality tables was a landmark in the history of life assurance. 9ith

this development, life assurance acquired a scientific character. !he /quitable society,

founded in


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BACKGROUND OF LIC IN INDIA

In India, 4I& had its beginning in


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NATIONALISATION OF INSURANCE INDUSTRY

!he 4I& Act )Act DDDDI of B+ was passed by the parliament in 8une B

and it came into force of 8uly


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#ranch office is the independent cost center of corporation, which generates

actual revenue. It is headed by the #ranch (anager and assisted by the Assistant #ranch

(anager, Administrative officers and Assistant Administrative -fficers.

4I& has wide network of branches in every hook and corner of the country

spreading the gospel of insurance even in remotest rural areas.

What is life is!"a#e$

4ife Insurance is a contract for payment of a sum of money to the person assured

)or failing himH her, to the person entitled to receive the same+ on the happening of the

event insured against. Csually the contact provinces for the payment of an amount on the

date of maturity or at specified dates at periodic intervals or on unfortunate death, if it

occurs earlier. Among other things, the contract also provides for the payment of

premium periodically to the &orporation by the assured. 4ife insurance is universally

acknowledged to be an institution which eliminates risks6, substituting certainty for

uncertainty and comes to the timely aid of the family in the unfortunate event of the death

or of total permanent disability of the breadwinner. #y and large, life insurance is

civiliation6s partial solution to financial uncertainties caused by untimely death.


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Wh% is s!&e"i'" t' 'the" f'"(s 'f sa)i*s$

+i, P"'te#ti'-

Savings through life insurance guarantee financial protection against risk of death

of the policy holder. In life insurance, on death, the full sum assured is payable )with

bonuses wherever applicable+ whereas in other savings schemes, only the amount saved

)with interest+ is payable

ii, Ai. t' th"ift-

4ife insurance encourages thrift6. 4ong term saving can be made in a relatively

painless6 manner because of the easy installment facility premiums can be paid through

monthly, quarterly, half0yearly or yearly installments+. !he salary savings scheme,

popularly known as SSS, provides a convenient method of paying premium each moth

through deduction from one6s salary. !he employer remits the deducted to the 4I&. !he

salary savings scheme can be introduced in an institution or establishment subJect to

specified terms and conditions.

iii, Li/!i.it%-

4oans can be raised on endowment type K whole life Policies as per policy

conditions on the sole security of a policy which has acquired a paid0up value. #esides,

a life insurance policy is also generally accepted as security for even a commercial loan H

housing loan.


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+i), Ta0 Relief-

!ax relief in Income tax as available for amounts paid by way of premium for life

insurance subJects to the Income !ax rules in force. Assesses can avail themselves of

provisions in the law for tax relief. In such cases the assured in effect pays a lower

premium for his insurance than he would have to pay otherwise.

+1, M'e% 2he %'! ee. it-

A suitable insurance plan or a combination of different plans can be taken to meet

specific needs that are likely to arise in future, such as children6s education, start0 in0 life

or marriage provision or even periodical needs for cash over a predetermined stretch of

time. Alternatively, policy moneys can be so arranged to be made available at the time of

one6s retirement from service to be used for any specific purpose, such as for the

purchase of a house or for other investment. 4I& pension plans also offer regular income

in the form of annuity when you retire from active work or in later part of life at your

choice leaving lump sum purchase price for your heirs. SubJects to certain conditions,

loans are granted to policyholders for house buildings for purchase of flats.


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1ARIOUS PLANS OF INSURANCE

!he maJority of the insurance plans are offered on both with profits6 without profit

basis the important plans of insurance are

KNOW YOUR LIFE INSURANCE

4ife insurance made its debut in India well over


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Wh' #a 3!% a life is!"a#e &'li#%$

Any person who has attained maJority and is eligible to enter into a valid contract can

take out a life insurance policy for himselfHherself and for those in whom heHshe has

insurable interest. policies can also take out, subJect to certain condition on the life of

one6s spouse or children. 9hile underwriting proposal, factors such as the state of health

of the life to be assured the proponent6s income and other relevant factors are considered

by &orporation.

Me.i#al a. N'4(e.i#al S#he(es

4ife insurance is normally offered after a medical examination of the life to be assured.

'owever, to facilitate greater spread of insurance and also as a measure of relaxation,

subJect to certain conditions.

With P"'fits a. With'!t4P"'fits Plas

An insurance policy can be with6 or without6 profit. In a 9ith0Profit Policy, bonuses

declared, if any, after periodical valuations are allotted to the policy and are payable

along with the contracted amount at the time of the final claim payment. In a 9ithout

Profit Policy, only the contracted amounts are paid. 9ithout any addition. Cnder some

new plans guaranteed additions K 4oyalty Addition are paid in lieu of bonuses.


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Ke%(a Is!"a#e

eyman Insurance is taken by a business firm on lives of key employees)s+ to protect the

firm against the financial loss which may occur owing to the premature demise of the

ey employees.

Plans marketed by 4ife Insurance &orporation of India

)Plans in force as at


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paying term. -n dead the premium paying term, the basic sum assured plus accrued

bonus is payable to the nominee and the policy comes to an end.

II5 Te"( Ass!"a#e Plas

6, A('l 9ee)a4I -

!his is a pure !erm assurance plan for terms varying from > to 5> years and

provides for payment of Sum Assured on death of policy holder during the term of the

policy.

7, T2'4Yea" Te(&'"a"% Ass!"a#e Pla-

!erm assurance for period 5 years is available under this plan. the sum assured is

payable only on death of the life assured during the policy term

8, C')e"ti3le te"( Ass!"a#e Pla-

!he plan provides for term assurance from > to years with an option to covert to

a 4imited payment whole life policy or an /ndowment Assurance Policy without having

to undergo fresh medical examination )I+ the option for conversion may be exercised at

anytime during the specified term except during last 5 years provided the policy is in full

force.

:, Ne2 Bi(a Ki"a -

In Additions to return of premium paid, this plan provides for 4oyalty addition if any, in0

built lf accident cover and a !erm cover after maturity, if the Policy is in full force on the

date of maturity.


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III5 S&e#ifi# Plas f'" #hil."e

1arious children6s plans are available, vi. &hildren6s *eferred /ndowment

Assurance 8eevan #alya, omal 8eeven and 8eeval ishore. 8eevan Sukanya is a plan

specifically designed for female children.

I15 Pesi' Plas-

"ew 8eevan Akshay0IL Single Premium immediate annuity. "ew 8eeven *hara0I

K new 8eevan Suraksha MIL deferred annuities. !he annuitant has five options of annuity

payment to choose from including annuity for life with return of purchase price on death.

$isk cover by way of !erm rider option available. Premiums paid under new 8eevan

Suraksha0I up to $s.


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Suitable for borrowers repaying a loan in installments as it ensures that the

outstanding loan is repaid in the event of the borrower6s death.

7, Bha)ish%a 9ee)a-

A special plan ideally suited for professionals 7ilm Actors, Artists etc. with a

limited span of high income.

8, Ne2 9aa Ra;sha-

Ideal for people with no regular income. It provides for option of premium

holidays up to 2 years during witch period death cover will be variable from the firs

unpaid premium, provided at least 5 full years premiums have been paid.

:, Fi0e. Te( +Ma""ia*e, E.!#ati'al A!it%-

An ideal plan for making provision for education, start0in0life or marriage of

children. &laimHAnnuity is after expiry of policy term.


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?, 9ee)a Sa("i..hi-

!his is a money #ack type plan with provision for %uaranteed Addition of $s.B>

per thousand sum Assured and 4oyalty Addition, if any, payable on maturity or death

earlier. !he plan is available for terms years.

@, 9ee)a Saathi-

A double cover Joint 4ife /ndowment Assurance plan for husband and wife.

6, 9ee)a Saathi-

An ideal plan to provide for a child6s higher education even during or after of

policy holder.

66, 9ee)a Mi"a-

A *ouble0or !riple risk cover /ndowment Assurance plan providing for twice or

thrice the sum assured payable on the death of the life assured during the policy.

67, LIC’s 9ee)a Sh"ee46-

A limited payment /ndowment Assurance plan with %uaranteed Additions for

first five years and bonus additions thereafter. A policy designed for short careerists,

professionals and agriculturists.

68, Asha Dee&4II-

!he plan provides, besides death and maturity payments, contingent benefits in

case the life assured suffers from any of the four defined ailments.

6:, 9ee)a Asha4II-

!he plan provides, besides death and maturity benefits, payment towards the cost

of certain surgical procedures and periodical survival benefit payment. !here is also a

provision for %uaranteed Additions N $a.3 per thousand S.A


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6, Bi(a Ni)esh T"i&le C')e"-

A singe premium five and ten years plan with compounding guaranteed additions

of rs.B3 per thousand S.A payable on death or maturity.


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INFORMATION TECHNOLOGY IN LIC

4ife Insurance &orporation of India is of the very first and largest users of I! in

terms of hardware and in0house developed software. it is forefront in deriving optimum

benefits of latest technological advancements for better and efficiency customer

servicing.


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>. 4I& has installed about 3iosks at prominent places across the country given

information about its products, service and customers policy status report. It has provided

I1$S at >: locations for routine queries of the customer.

B. 4I& has set up Info0&enters in (umbai, Pune, #angalore, olkatta, *elhi, 'yderabad,

&hennai, Ahmedabad which are equipped with state of fart technology and manned by

trained persons to give any information regarding life insurance products, suitable plans

for every customers and need, etc.


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S'(e 'f the &"'e#ts 3ei* !.e"ta;e this %ea"s a"e-


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INTRODUCTION TO COMPANY


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OB9ECTI1ES OF THE STUDY

P"i(a"% O3e#ti)e -

65Analysis of Insurance Sector as a whole taking 4I&

Se#'.a"% O3e#ti)es

75 !o know about the fia#ial &'siti' of 4I& .

85 !o know the &urrent market position of the 4I& .

:5 !o know the impact of Advertisement of 4I&.

5 !o invite suggestions from the customers.

?5!o know about the customers awareness regarding the company.


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RESEARCH METHODOLOGY

$esearch (ethodology has many dimensions, it include not only research methods but

also considers the logic behind the methods used in the context of the study and explains

why only a particular method of technique had been used so that research lend

themselves to proper evaluations. !hus in a way it is a written game plan for concluding

research therefore in order to solve research problem it is necessary to design a research

methodology for the problem as the same differ from problem to problem.

857 Resea"#h Desi*-

S#'&e 'f St!.% - $esearch design in the conceptual structure within which the

research is conducted. !heir function is to provide for the collection of relevant

evidence with minimum expenditure of effort, time and money. #ut, how this can be

achieved depends on the research purpose.

!he scope has been limited to smoke sie of


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85: Sa(&li* Pla

!he following factors have to be decided within the scope of sampling plan.

+6, Sa(&li* !it - It defines the target population that will be sampled i.e. it answers

who is to be surveyed.

+7, Sa(&li* sie- It indicates the no of people to be surveyed through large sample

given more reliable results than small samples but due to constraints of time and

money the sample sie was restricted to


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(arketing Performance

!he insurance sector in India has come a full circle from being an open competitive

market to nationaliation and back to a liberalied market again. 7ollowing data

shows the marketing performance of marketing scenario.

Life Is!"a#e C'(&aies P"e(i!(

!&t' A&"il 768 (Fig In Rs. Cr.)

Company Premium Market Share (%)

4I& ::B.:2 B2.:>

#A8A8


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A1I1A 5B.


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F U N D P E R F O R M A N C E


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De3t t' t'tal f!. "ati'

!his ratio is a variation of the debt equity ratio and gives the same indication as the debt

equity ratio. In this ratio debt is expressed in relation to total funds.

*ebt to total fund ratio O debt Hequity debt

/A$ 533:0


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:57< POLICY IMPLICATIONS

#y implementing the above mentioned suggestions the company will able to

perform better in the market by making their good recognition among customers. !he

effect of policy implication would beL

. (ore trust among customers regarding life insurance.

B. 'elpful in long run to build goodwill.. 'elpful in making effective marketing strategy.

!here are many advantages other than these. !he impact will be of long term

and help the company to grow K diversify itself in a different way.


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MARKET POSITION OF COMPANY

LIC 5-

4I& displaces #irla sunlife and take no. 5 slot with the under written premium of $s.F:F3>.3 growth rate and premium market shares

53=B;.

!his market position shows that 4I& still leads the private insurance co. the growth

rate of 4I& )222.>3;+ is more. 4I& out of the most fastest growing co. in insurance

field.

FINANCIAL POSITION OF CO5

LIC -

4I& life Insurance co. ltd made a net profit of $s.


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MARKET SHARE OF DIFFERENT INSURANCE

COMPANIES

NAME OF THE PLAYER MARKET SHARE +,

#A8A8 A44IA"G 2F

4I& 55

#I$4A SC" 4I7/


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STRENGHTS

. Innovative Product training on financial market

WEAKNESS


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DATA ANALYSIS INTERPRETATION OF AWARENESS

D' %'! ;'2 a3'!t the LIC is!"a#e #'5$

Ite"&"etati'

The *"a&h sh'2s that the >: 'f &e"s's a"e ;'2 a3'!t the LIC 5


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Whi#h #'(&a% P'li#ies %'! a"e ha)i* $

Interpretation

This *"a&h sh'2s that the 7 'f &e'&le ha)e Baa allia ? ha)e 'the" &'li#%

a. > ha)e LIC &'li#%5

LIC 7.%

O)*+'

/%

B!"!"

A##$!&

22%


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Whi#h is!"a#e #'(&a%’s a.. %'! see$

Ite"&"etati'

This *"a&h sh'2s that the ?@ 'f &e'&le see a.. 'f LIC &'li#% > ha)e see a..

'f LIC

LIC

/9%

N0 1%

B0)* 3%

B!"!" A#$!& 7%


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Whi#h Is!"a#e C'(&a% %'! &"efe" $

Ite"&"etati'

This *"a&h sh'2s that the 77 'f &e'&le &"efe" Baa allia &'li#% 67 &"efe"

'the" a. LIC &"efe""e. 3% ==5

LIC %

B!"!" A##$!& 12%

O)*+'

22%


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Whi#h t%&e 'f &e'&le e0ists i the #'"&'"ate 2'"l. 2h' &"efe" the life is!"a#e

&'li#% $

Res&'.et #ate*'"% a*e 'f &e"s'

S/$1I&/(A" 5>#CSI"/SS(A" 23

S'-P0//P/$ 5>

'-CS/09I7/

-!'/$ >

TOTAL 6

Ite"&"etati'

The *"a&h sh'2s that the (a0i(!( !(3e" 'f &e"s's a"e se")i#e(a

sh'&;ee&e" 3!siess(a h'!se2ife’s a. 'the" "es&e#ti)el%5

PEOPLE PREFRENCE FOR SA1ING TOOL


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Sa)i* ist"!(et a*e 'f &e"s'

#ank F>;

Post office 5>;

P.P.7. =;

Insurance


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4/SS !'A" 5>$S B

5B$S !- 2>$S 5>

2B$S !- F>$S F3

FB$S !- >>$S


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WHILE IN1ESTMENT

'igh returns


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BRAND RELIABILITY -

BRAND RELIABILITY PERCENTAGE

4I& F3

#aJaJ Alian 5F

'*7& Standard 4ife

(ax "ew ork 4ife


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4I& still lead the Insurance sector.

7inancial Position of 4I& are good because since 53= crore

(ore people known about the 4I& than others maJor players .

(ore people prefer 4I& 4ife Insurance &o.


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SUGGESTIONS

&ompany should emphasis on insurance plan advertisement, because at

present company main focus on conventional product advertisement.

&ompany also segment for small income people. #ecause company

mainly plan for middle and high income people group. If company

enters in this segment then company can capture a large part of rural

market.

&ompany should launch new schemes

7or investment for short term duration

&ompany should introduce a combination of tax saving and insurance with monthly

annually payback schemes

CONCLUSION


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CONCLUSION

4I& . leads the Insurance Sector F; people know about the co. but since 53= crore because of the high expenditure inAdvertisement.

4I& 4ife Insurance &o. 4td. is good in quality services but at present the preference of

people to co. is less only 2B; know about the 4I& life Insurance &o. 4td. !he reason

behind it is not regular add and not the more relationship with the people but now it is

one of the fastest.


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LIMITATIONS OF THE STUDY

!he limitation of the study includes the weak points that are not covered during the study.

A person can6t analye all aspects of the study. Sometimes he forgot some factors or

sometimes he is not able to study the impact of these factors because of time constraints

or limited recourses.

So, the main limitations of my study are as followsL

. insufficient data

B. we have not cover all aspects of insurance


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BIBLIOGRAPHY

WEBSITES

♣ httpLHHwww.blackwell0synergy.comHlinksHdoiH


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♣ Cnited *ominions !rust 4td v irkwood,


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Market Performance and Awareness Rohit

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