Project Report On Market Penetration of IDBI fortis
description
Transcript of Project Report On Market Penetration of IDBI fortis
CHAPTER 1
INTRODUCTION
INDUSTRY PROFILE
History of the insurance industry in India dates back in 1818 when the first insurance
company was formed Oriental Insurance Company Limited It has since undergone several
reforms in the form of liberalization and privatisation In the ensuing discussion we shall
seek to explore the nature of the industry in general Insurance industry in India underwent a
drastic structural change from the year 2000-01After the government of India on the
recommendations of Malhotra committee allowed Private players to operate in the market
The rationale behind allowing the private players into the Insurance sector can be attributed
to following factors
LIC failed to serve and fulfil the insurance needs of the people of India
Allow access of insurance facility to rural masses
Allow companies to float Micro insurance product
Insurance to be seen as Investment Option
Allow exposure of Insurance schemes to capital market
Following entry of private players the dominance of LIC slowly shrieked Private players had
to rope a foreign player which already had experience in the market This enabled the
companies to bring in several innovative products which not only attracted large investments
but also generated interest among those who had remained obliviant towards Insurance
Thus large untapped market was penetrated
The equity holding for foreign players was to be 26 and the rest was to be retained by
Indian player
Three players were given licence to operate in the year 2000 ICICI prudential HDFC
standard life Max New York Life Insurance Co Ltd In the year 2001 Birla sun life TATA
1
AIG Kotak Mahindra old mutual SBI life insurance MetLife insurance Bajaj Allianz were
given licences to operate in the market
Presently there are 22 companies with 15 companies are awaiting approval from the
regulatory body
INDUSTRY STRUCTURE
111 REGULATORY FRAMEWORK
This industry is regulated by the Insurance Regulatory amp Development Authority (IRDA) It
ensures that all policyholdersrsquo interests are protected IRDA has listed all stakeholders in the
industry including corporate agents brokers surveyors insurance councils state and life
insurers and one main reinsurer
These players in the market are the driving force towards achieving a record 3 of the gross
domestic product in the economy in India The brokers for example are assigned the work of
distributing the premiums mainly through direct sales IRDA also offers guidelines with
regard to investment in mutual funds pension general annuity funds and group schemes
DUTIES POWERS AND FUNCTIONS OF IRDA
2
MINISTRY OF FINANCE
IDRA SEBI
GOVERNMENT PLAYERS
PRIVATE PLAYERS
LIC SBI LIFE
KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA Subject
to the provisions of this Act and any other law for the time being in force the Authority shall
have the duty to regulate promote and ensure orderly growth of the insurance
businessandre-insurancebusiness
(1) Without prejudice to the generality of the provisions contained in sub-section (1) the
powers and functions of the Authority shall include several things like -
issue to the applicant a certificate of registration renew modify withdraw suspend or cancel
such registration
(2) protection of the interests of the policy holders in matters concerning assigning of policy
nomination by policy holders insurable interest settlement of insurance claim surrender
value of policy and other terms and conditions of contracts of insurance
(3) specifying requisite qualifications code of conduct and practical training for intermediary
or insurance intermediaries and agents
(4) specifying the code of conduct for surveyors and loss assessors
(5) promoting efficiency in the conduct of insurance business
(6) promoting and regulating professional organisations connected with the insurance and
re-insurance business
(7) levying fees and other charges for carrying out the purposes of this Act
(8) calling for information from undertaking inspection of conducting enquiries and
investigations including audit of the insurers intermediaries insurance intermediaries and
other organisations connected with the insurance business
(9) control and regulation of the rates advantages terms and conditions that may be offered
by insurers in respect of general insurance business not so controlled and regulated by the
Tariff Advisory Committee under section 64U of the Insurance Act 1938 (4 of 1938)
(10) specifying the form and manner in which books of account shall be maintained and
statement of accounts shall be rendered by insurers and other insurance intermediaries
(11) regulating investment of funds by insurance companies
(12) regulating maintenance of margin of solvency
(13) adjudication of disputes between insurers and intermediaries or insurance intermediaries
(14) supervising the functioning of the Tariff Advisory Committee
3
SERVICESINTHEINDUSTRY
The services rendered by this industry are overshadowed by the industrys history of
liberalization and nationalization Two main sectors exist They are the public sector and the
private sector with the former dominating the market
Individual company service provision includes such services as life insurance (endowment
assurance money back and miscellaneous services) and general insurancenon life insurance
(includes marine insurance motor insurance which is compulsory in the country fire
insurance etc)
FUTUREOFTHEINDUSTRY
From as early as 1947 to 1972 this industry has gone through dynamic change With the
formation of the regulatory body passing of the insurance act and passing of various
reforms this industry has become competitive and continues to attract interest from foreign
countries However the recent economic recession has greatly affected this industry
Currently there is a major credit crisis affecting the industry A typical example is the
collapse of US based AIG Company that has had ripple effects on to Indiarsquos TATA-AIG
General Insurance Company Bajaj Allianz Prudential and ICICI companies have already
closed some of their branches
Many players have proposed the merging of the various companies in the sector to be able to
caution themselves from the crunch It is equally important to note that recession is not new
to Indiarsquos economy The country has been able to come out of one once and it can do so even
now
LIFE INSURANCE POLICIES
Life insurance is a deal in which a person pledges money to a person which he choose so in
case of any misshaping all the money goes to that nominated person
The payment of the insured amount handover in these situations such as the date of maturity
given date or time frame and on the death of the insured man in case it occurs earlier
4
Life insurance policies are well known throughout the world and liked by the people because
these policies become a helping hand for their family in the situation if something happened
to the policyholder
This contract is civilized solution of the problems caused by death for the family of that
insured person The contract is useful at the extreme level of life and death such as if a person
die then his payment is given to his family on the other hand if the person become old and
cannot do anything for his earning then the contract come forward and helped the person
The contract is also a long term investment in which person can save his money for his old
age in spite of any mishap The method of saving money is very simple and easy because
company gives you the option of instalment call as premium and this money for insurance is
invest on monthly quarterly half-yearly or yearly basis
There is a simple example of salary saving scheme in which each month a little amount will
deducted from onersquos salary for paying the premium of the scheme This is the ideal scheme
for everybody who wants to do something for himself and for his family after his sudden
death
ENDOWMENT POLICY INDIA
Endowment is a life time policy in which the assured sum is come back to the policy holder
after the specific time period along with the bonuses except in case of the policy holder death
This policy is liked all around the globe as well as in India also The design of the policy is to
provide the benefit for living but it also cover the life protection policy
The people admired this policy because it is not only an investment but a whole life policy
also
In India endowment policies become a big business because these policies help to generate
the money as well as the money circulate in the market and market value goes high These
companies earn so much profit through stock exchange because the shares of these
companies sell in very high price in the market
5
The endowment policy in India is very popular nowadays because it is different from all the
other policies which are available in the market The premium of the policy is to payable for
the full term in spite of that policyholder death
The policy has one drawback that its premium rate is high but bonus rate is low However it
has also one big attraction that they provide return in instalment when the term ends
The big advantage of this policy is that you can buy an annuity policy after the end of the
term of endowment policy and the annuity policy gives you the monthly income for whole
life
The policy gives so many benefits to its holder it helps you in case of any disability which
occur by an accident and you become totally disable before reaching the age of 70 and the
policy you hold is full force Then policy gives the benefit and you do not have to pay any
further instalment of the policy
GROUP INSURANCE POLICY
There are several individuals who are unable to purchase expensive life insurance policies
due to which they have to suffer several health problems without having any health treatment
But if you are working somewhere in organization then you can easily secure your life by
participating in Group Insurance Policy India which is purchased by the employers for their
employees in order to provide them utmost protection
This policy ensures about complete health coverage of employees and provides them benefits
by giving lots of services at lower cost per employee
There are numerous profitable and non-profitable organizations which can participate in this
type of policy as there is no strict restriction in it When employers purchase this policy for
their employees they get the certificates which ensure that they will surely obtain the
advantages
Itrsquos obvious that if this policy requires HMO registration then both employer and employees
have to participate in this program through which employees can better take care of their
health Through Group Insurance Policy India employees obtain flexible payroll deduction
6
but on the other hand there are some organizations which bear all instalments of this policy in
order provide their employees highest benefits
Insurance company can increase the price of premium any time they want and you cannot say
a single word against this action If a situation occurs when one of the employees have to go
for expensive treatment for his bad health then all the group has to bear high premium costs
Several companies have their own requirements regarding to numerous terms and conditions
Majority of group insurance Indianrsquos companies provide facility to get the regular doctor
checkups as well as they bear the medical expenses when employee gets through any severe
accident If employee requires any extended care in hospital then group insurance companies
always take care of this need of an employee by providing him complete health protection
PENSION PLAN OR ANNUITIES
How would you feel when your children will not support you in your old age How would
you feel when you will have to spend your golden period in old age home You would
definitely feel bad when you will have to suffer from these types of problems
Why not to choose that option which will provide you long term benefits after your
retirement and you donrsquot have to rely on anyonersquos salary and income
Take the help of Pension Plan or Annuities India or you can get both but there is a need to
boost up your mental skills in order to make right decision
Itrsquos never too late when you go for your retirement plans Always think positively and you
will get positive outcomes Itrsquos very important to save your future life earlier because future
life is going to be very tough which you can analyze from our present situation where people
of this world have been trapped into difficult situation
You just need to choose which plan suits to you a lot because pension is what you obtain
from your employer on your past working period with him And after your retirement you
obtain the amount at regular intervals after every month
JOINT LIFE POLICY
7
You will find several life insurance policies which are as similar as endowment policies are
Joint Life policy India also provides the same benefits but with the different features as well
This policy is purchased by couples and business partners Couples want to take the benefits
of this policy so that they would able to survive well when person would die husband or
wife
Business partners want to purchase this policy so that they would able to handle the business
in superb manner when one partner of this business dies
Itrsquos true that this policy provides utmost pleasure to you but only once when one person
passes away There are several couples who obtain maximum benefits from this policy This
policy provides you 10 years coverage as well as this policy is very much cost effective and
provides you best short term returns
Joint Life policy India provides complete protection to your mortgage If a couple has bought
any house on mortgage and after sometimes one person out of this couple is died due to
some severe reason then survived spouse will be able to handle its mortgage property with
the help of this policy
That person can easily pay the debts and will not find any difficulty in future while surviving
with the children Spouse will also get extra bonuses which would help himher to save
chunks of money which can be spent in other area of life in excellent manner
LOAN COVER TERM ASSURANCE POLICY
We are living in that era where we have to suffer many financial problems If we want to
purchase a house by our own we are unable to do so because of having less chances of
earning high
In this situation people adopt many loan facilities through which they fulfil their basic needs
like purchasing a home and get rid of paying rents
But if you think that you can easily get a house by having house loan then you are not taking
this matter seriously because house financing companies have some rules and regulations
which have to be followed in time otherwise you are unable to get your own house
8
If you are tired of attending the calls of HFC then you donrsquot need to worry when you have
full support of this insurance policy which is one of effective life insurance policies This
coverage provides you opportunity to reduce your loan instalments if you keep on paying the
insurance policyrsquos monthly premiums
HFC is linked with the Cover Term Assurance Policy of India so that interested individuals
would able to get rid of big problem of their life When HFC and insurance company link up
together they provide maximum relaxation to the individual to pay his home loan
After having the coverage you not only can get your own house but also you can get rid of
all those headaches which you were having due to non-paying instalments When you go
through any financial situation HFC doesnrsquot care about your painful situation
TERM LIFE POLICY
You can imagine better that when one day you will be passed away and will be gone away
from this world how your family will survive without you
They wonrsquot have enough money to live Your children have to leave their education Your
wife has to go for double shifting work Every schedule and facility of your familyrsquos life
would be disturbed
This term policy is considered to be a pure insurance protection because it never leaves you
empty hands at the time when you need money There are lots of advantages which you can
obtain from this policy First one is it provides complete protection to your family after your
death
Second one is you would never find any risk while having this policy and can pay instalments
in very nice manner Third one is you donrsquot have to pay instalment for longer period
There is a time duration which is specified for this policy and after that date this policy will
be expired and you will get your money back
Isnrsquot it the good choice to provide your family a protective backup system which will help
them at the time when you will no longer remain with your wife and children Majority
people think about their families a lot and purchase this policy
9
If you didnrsquot buy this policy yet then you should immediately get it because this is the only
policy which doesnrsquot take any extra charges against your paying instalments After having
term policy you will be assured about the protective life of your family
UNIT LINKED INSURANCE PLAN
Unit Linked Insurance Plan India provides highest benefits to those people who are interested
to invest in some companies or who want to purchase the units at their net asset value
This plan is just like mutual funds where several investors purchase some units in order to get
the income
Like mutual fund investors can obtain this coverage in order to purchase financial
instruments like stocks bonds securities etc
This plan is very efficient in handling your investment as well as it manages your risk profile
in fabulous manner You can get rid of major risk factors with the help of this plan which
provides you complete protection to your invested money
There are several key benefits you obtain from Unit Linked Insurance Plan which is one of
most protective life insurance policies and which ensure about the best life of you and your
family It means this plan provides you complete protection cover through which you can
spend good days of your life with your children parents and with your wife as well Unit
linked Indiarsquos plan is very simple uncomplicated and easy to understand
With the help of this plan you can better get an idea that how can you manage your capital
and how can you obtain maximum benefits out of this plan so that you would able to live
your life in better manner You should analyze the situation through which you can best
utilize your capitals over your purchased units
While having this plan you have to choose from three options ie debt equity and balanced
plan If any company doesnrsquot provide you these three options then you should consult any
other company which will provide you better opportunities
GENERAL INSURANCE
10
THEGENERALINSURANCEINDUSTRYININDIA
In India general insurance is a term used to mean all non life insurance business In other
countries terms like property casualty insurance and non life insurance are used
The history of this industry is characterized by massive reforms though the sector remains
heavily regulated Market liberalization in the industry took place in the year 2001
1THE VAST NATURE OF THE INDUSTRY
The industry meets its target market demand with products for marine insurance automobile
(which is compulsory in the country) public liability (also compulsory) homeownersrsquo
policies travel insurance etc The sector being highly regulated the public sector calls the
shots in determining the rules of delivering services in the country Typical companies
dominating the industry include
United India Insurance company
Reliance General Insurance Company (provides health insurance motor
insurance travel insurance personal accident insurance etc)and
United India Insurance Company (provides fire marine motor industrial
liability personal accident Mediclaim and Unimedicare policies amongst
others)
1 ADAPTING TO MODERN TECHNOLOGY
In general the industry has utilized state of the art information technology facilities in
delivering their services to their clients The sale of insurance policies in rural areas
has really gained from IT advancements in the industry The claim process is also
computerized allowing clients to quickly avail their claims to the company
The assessing of loss incurred in the event of fire for example is done by forensic
experts assuring the accuracy of calculation of the compensation to the claimant
11
Other adaptations include the teaming up with other industry stakeholders eg
universities in providing customized products to the clients
2 THE CHALLENGE OF THE TWENTY FIRST CENTURY
Various reforms characterize the market including the detarrification and mandatory
participation of foreign owned general insurance companies with resident companies
The twenty first century has brought a major challenge in this industry
One key challenge is the recession that is currently hitting almost all corners of the
economy of India However the general insurance sector seems to have been hit less
by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance
was the hardest hit resulting into closure of some of its branches
The governing council has however come up with various code of conduct in
response to the credit crisis One particular code of conduct is geared towards the
control of these companiesrsquo pricing patterns with the detarrification in place
INDIAS HOME INSURANCE INDUSTRY
The home insurance industry falls under the general insurance umbrella sector It is a very
popular industry in India due to the obvious reason of the inherent risks faced in India
In the paragraphs below we shall seek to explore this industry in depth focusing on its
importance the kind of policies available in the market together with policy exclusions how
the claim process is done and finally quote a couple of companies that are the driving force in
this industry
IMPORTANCEOFGETTINGTHECOVER
Your home is your most valuable asset Both the structure and the contents in them This is
where you hold memories of your family growing from stage to stage This is where you go
to when you need some peace of mind
This is also where you keep your sentimental assets When catastrophes strike you may end
up losing your home and all its valuables It is important therefore that you get your cover to
shield you against these unforeseen circumstances
12
THEPOLICYTYPESANDTHEIREXCLUSIONS
various policies exist in the market for cover against potential loss of your home and its
contents These policies range from those to cater for repair cost on the building (risks being
riots fire especially with the rise of electrical appliances in various households) replacement
of stolen items (risks being burglary theft terrorism etc) etc The various policy types are
customized to the various risks involved ie landslides earthquakes explosions fire etc
THECLAIMPROCESS
Despite many clients airing their complaints with regard to how the claim process is clogged
with bureaucracies the industry has tried to make uniform the whole procedure and ensure
that the final customer benefits In this process the first thing to consider once the insured
risk has occurred is to minimize loss as much as possible
In the event of a fire outbreak try to salvage as much as you can The next step is to inform
the police authorities especially in the event of a theft burglary etc Then inform your
provider (ensure that you had given your provider details of your property well in advance)
The provider shall send a surveyor to come and estimate the extent of the damage Finally
you need to submit your claim form to your provider
Wikipedia provides an in-depth list of service providers in this industry Some of these like
Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time
INDIAS HEALTH INSURANCE INDUSTRY
The health insurance industry a branch of the general insurance has been existent for a long
time It started in Europe as workers sickness benefits and evolved into the private sector
covering the various sectors of the economy
In India the industry has had its own share of milestones and setbacks as you may discover in
the discussion that follows
NATUREOFTHEINDUSTRY
The health insurance industry is mostly dominated by the private sector The public sector
acts as a regulatory body while providing the basic health care needed The poor find it hard
13
to access these services Generally the demand for proper healthcare far outweighs the
supply for the same
Problems in accessing the services coupled with the poor financial structure with little
government support in the form of social security has been a big challenge in the industry
However like any other service providers in these typical sectors the principal of pooling is
utilized
POLICIESINTHEMARKET
This industry has policies that cater for the individual and family The policies have been
differentiated to penetrate in the various market niches Typical policies include indemnity
insurance (this is to compensate the client for the damageloss incurred) cashless claim
facilities (this as the name suggests is to cater for the costs incurred without necessarily
paying a cash lump sum to the insured) and community based insurance
SETBACKSINTHEINDUSTRY
The main pitfalls that have been experienced in this industry have been the provider
malpractice and the limited nature of the coverage provided Medical institutions have been
quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the
claim bills
This is purely because a majority of persons have medical cover through employer schemes
Other malpractices include the failure of service providers to honour their promises and when
they do they delay the process making it hard for the claimant to recover from the loss The
other setback has been the inability to for example provide preventive healthcare policies
like for vaccinations voluntary testing etc All these are exclusions on the policies
The medical insurance industry has come in handy in times of various catastrophes like
floods earthquakes and accidents These covers have gone a long way in assisting persons to
recover from the loss and lead their individual lives as usual However a lot still needs to be
done for this industry by its stakeholders
INDIArsquoS MOTOR INSURANCE INDUSTRY
Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle
owners
14
This industry also falls under the umbrella general insurance sector where home health and
travel insurance covers fall
THEEXTENTOFTHECOVER
This cover caters for risks related to the driver the passenger and any third party involved at
the time of loss
Typical risks include both natural and man-made risks Natural risks are in the form of fire
explosions and self-ignition Man-made risks on the other hand relate to theft and burglary
etc
The personal accident policy is a compulsory policy It caters for the individual and hisher
passengers The third party legal liability caters for claims for other parties due to the loss
caused by the driverrsquos actions
NATUREOFTHECOVER
This type of cover is on the insured declared value This is a fixed value at which the client
insures his motor vehicle According to ICICI this insured declared value is calculated based
on the listing selling price as provided by the manufacturer
PLAYERSINTHEINDUSTRY
The industry is full of players that have met the industry standards while others have fallen
short of them At one time I came across a bloggerrsquos work lamenting about the customer care
and the whole claim process making observations that serious loopholes do exist in this
industry
In his writing he quoted two prominent service providers that charge premiums for the same
policy but the difference between the two premiums was too big The customer care was also
poor wasting a lot of time on the phone waiting for the call to be transferred to the right
customer care representative and finally being asked to call after a day or two
The online claim forms also placed on the providersrsquo websites kept on returning error
messages This was just one of the persons who have had a nasty experience in this industry
But judging from the comments his observations generated one can tell he is not alone
15
INDIAS TRAVEL INSURANCE INDUSTRY
The travel insurance industry comes in handy in India especially because of the enormous
traffic of visitors in and out of the country
Needless to say this cover also caters for citizens It is much easier to deal with
hospitalization bills when you are covered than when you are not should a loss occur to you
when you are in a foreign country
The industry has evolved for many years In the following discussion we shall take a critical
look at the extent of the cover the benefits for the client the exclusions and the quote
details
COVERAGE
This cover caters for among others any unexpected medical bills while on vacation any flight
accidents or delays any accidental damage to your personal effects while travelling any
accidental loss of money or important documents any passport replacements that you may
need to do in case your original passport goes missing hijacking etc The list is endless
BENEFITS
One can never overemphasize the benefits of this type of insurance Just having the peace of
mind knowing that your service provider shall come to your rescue should you have any
mishap while on your trip is reason enough to go for the cover
The recovery of important documents lost while on a trip is a welcome relief to the client
Also being able to cater for your hospitalization commitments when in a foreign country is
very much welcome
EXCLUSIONSOFTHECOVER
This kind of cover has strict exclusions to shield the provider from being manipulated into
paying for intentional losses These exclusions include any pre-existing medical conditions
any deliberate exposure by the client to the particular risk covered any loss that occurred to
16
the client while under the influence of alcohol or drug abuse etc These exclusions are usually
included in the contract and the client needs to understand them in order to avoid any
confusion in the future
DETAILSOFTHEQUOTE
The travel insurance industry has quotes to the potential client detailing the kind of
information required to be submitted before signing the contract This includes the name of
the location to where the person is travelling to the type of policy the client intends to
undertake when the client intends to terminate the contract and when the policy should start
Persons travelling for business or leisure need to assess their need for cover and then do their
homework in settling for an appropriate service provider
CHAPTER 2
17
STATEMENT OF PROBLEM
To know Market penetration of IDBI Fortis Life Insurance Company
limited at Chennai The India Insurance industry has grown at phenomenal rate Starting
as a Monopolistic Industry it has transformed into highly competitive industry it is not just
doing something right that matters but it is also about doing nothing wrong Making profit
does not only mean a large customer base but also depends on Penetration level of the
services provided to the customers and premium remittances
The Insurance companies come out with many schemes and offers to attract customers and
to make them invest in various schemes provided by these companies Most Importantly
Market Penetration of companies based on parameters like geographical coverage agency
awareness level of products and sustainability in the market based on product fundamentals is
of paramount importance as they can largely affect the market capitalisation of Insurance
companies The aim of this study would supplement this effort of the company in a small
way
HYPOTHESIS
Market penetration of IDBI Fortis Life Insurance is same throughout Chennai
CHAPTER 3
OBJECTIVES OF THE STUDY
18
For an organization to be successful they need to be equipped with the current position of
their share in the market They need to understand the new and the unidentified potential
available in the market The organization needs to understand the changing scenario taking
place in the market with respect to their business All these could be achieved only by
understanding the market sentiments
Thus through a Study to understand the current status of their Market penetration the
organization can motivate the current efforts of their sales force and efforts could be taken to
reduce the weakness complaints and also could come up with new schemes and facilities
according to the expectations of the Insurers Keeping the above view in the mind objectives
for the study are set and are given below
31 PRIMARY OBJECTIVE
To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at
Chennai
32 SECONDARY OBJECTIVE
The secondary objective of the study is to know awareness of different Insurance products
served in the market by different companies This project can also be a step in small way
towards identifying different channels through which companies can penetrate in market
33 SCOPE OF THE STUDY
The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance
is confined to Insurance Industry location Chennai during the month of March and April This has
been achieved by taking down the respondentrsquos views and responses individually by the
researcher using a Questionnaire The researcher asks the research questions in the questionnaire
to the respondent in a face-to-face fashion and records the response which is then used for the
analysis and interpretation part of the study
Once the study is through the researcher would be in a position to
advise the company about Market Penetration of IDBI Fortis in the respective areas where the
study has been undertaken The study would also help the company to find out the general
preferences factors considered by the Investors with respect to geographical presence
awareness of brand Product agency proliferation in the market customer satisfaction and
retention
19
CHAPTER 4
REVIEW OF LITERATURE
20
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
AIG Kotak Mahindra old mutual SBI life insurance MetLife insurance Bajaj Allianz were
given licences to operate in the market
Presently there are 22 companies with 15 companies are awaiting approval from the
regulatory body
INDUSTRY STRUCTURE
111 REGULATORY FRAMEWORK
This industry is regulated by the Insurance Regulatory amp Development Authority (IRDA) It
ensures that all policyholdersrsquo interests are protected IRDA has listed all stakeholders in the
industry including corporate agents brokers surveyors insurance councils state and life
insurers and one main reinsurer
These players in the market are the driving force towards achieving a record 3 of the gross
domestic product in the economy in India The brokers for example are assigned the work of
distributing the premiums mainly through direct sales IRDA also offers guidelines with
regard to investment in mutual funds pension general annuity funds and group schemes
DUTIES POWERS AND FUNCTIONS OF IRDA
2
MINISTRY OF FINANCE
IDRA SEBI
GOVERNMENT PLAYERS
PRIVATE PLAYERS
LIC SBI LIFE
KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA Subject
to the provisions of this Act and any other law for the time being in force the Authority shall
have the duty to regulate promote and ensure orderly growth of the insurance
businessandre-insurancebusiness
(1) Without prejudice to the generality of the provisions contained in sub-section (1) the
powers and functions of the Authority shall include several things like -
issue to the applicant a certificate of registration renew modify withdraw suspend or cancel
such registration
(2) protection of the interests of the policy holders in matters concerning assigning of policy
nomination by policy holders insurable interest settlement of insurance claim surrender
value of policy and other terms and conditions of contracts of insurance
(3) specifying requisite qualifications code of conduct and practical training for intermediary
or insurance intermediaries and agents
(4) specifying the code of conduct for surveyors and loss assessors
(5) promoting efficiency in the conduct of insurance business
(6) promoting and regulating professional organisations connected with the insurance and
re-insurance business
(7) levying fees and other charges for carrying out the purposes of this Act
(8) calling for information from undertaking inspection of conducting enquiries and
investigations including audit of the insurers intermediaries insurance intermediaries and
other organisations connected with the insurance business
(9) control and regulation of the rates advantages terms and conditions that may be offered
by insurers in respect of general insurance business not so controlled and regulated by the
Tariff Advisory Committee under section 64U of the Insurance Act 1938 (4 of 1938)
(10) specifying the form and manner in which books of account shall be maintained and
statement of accounts shall be rendered by insurers and other insurance intermediaries
(11) regulating investment of funds by insurance companies
(12) regulating maintenance of margin of solvency
(13) adjudication of disputes between insurers and intermediaries or insurance intermediaries
(14) supervising the functioning of the Tariff Advisory Committee
3
SERVICESINTHEINDUSTRY
The services rendered by this industry are overshadowed by the industrys history of
liberalization and nationalization Two main sectors exist They are the public sector and the
private sector with the former dominating the market
Individual company service provision includes such services as life insurance (endowment
assurance money back and miscellaneous services) and general insurancenon life insurance
(includes marine insurance motor insurance which is compulsory in the country fire
insurance etc)
FUTUREOFTHEINDUSTRY
From as early as 1947 to 1972 this industry has gone through dynamic change With the
formation of the regulatory body passing of the insurance act and passing of various
reforms this industry has become competitive and continues to attract interest from foreign
countries However the recent economic recession has greatly affected this industry
Currently there is a major credit crisis affecting the industry A typical example is the
collapse of US based AIG Company that has had ripple effects on to Indiarsquos TATA-AIG
General Insurance Company Bajaj Allianz Prudential and ICICI companies have already
closed some of their branches
Many players have proposed the merging of the various companies in the sector to be able to
caution themselves from the crunch It is equally important to note that recession is not new
to Indiarsquos economy The country has been able to come out of one once and it can do so even
now
LIFE INSURANCE POLICIES
Life insurance is a deal in which a person pledges money to a person which he choose so in
case of any misshaping all the money goes to that nominated person
The payment of the insured amount handover in these situations such as the date of maturity
given date or time frame and on the death of the insured man in case it occurs earlier
4
Life insurance policies are well known throughout the world and liked by the people because
these policies become a helping hand for their family in the situation if something happened
to the policyholder
This contract is civilized solution of the problems caused by death for the family of that
insured person The contract is useful at the extreme level of life and death such as if a person
die then his payment is given to his family on the other hand if the person become old and
cannot do anything for his earning then the contract come forward and helped the person
The contract is also a long term investment in which person can save his money for his old
age in spite of any mishap The method of saving money is very simple and easy because
company gives you the option of instalment call as premium and this money for insurance is
invest on monthly quarterly half-yearly or yearly basis
There is a simple example of salary saving scheme in which each month a little amount will
deducted from onersquos salary for paying the premium of the scheme This is the ideal scheme
for everybody who wants to do something for himself and for his family after his sudden
death
ENDOWMENT POLICY INDIA
Endowment is a life time policy in which the assured sum is come back to the policy holder
after the specific time period along with the bonuses except in case of the policy holder death
This policy is liked all around the globe as well as in India also The design of the policy is to
provide the benefit for living but it also cover the life protection policy
The people admired this policy because it is not only an investment but a whole life policy
also
In India endowment policies become a big business because these policies help to generate
the money as well as the money circulate in the market and market value goes high These
companies earn so much profit through stock exchange because the shares of these
companies sell in very high price in the market
5
The endowment policy in India is very popular nowadays because it is different from all the
other policies which are available in the market The premium of the policy is to payable for
the full term in spite of that policyholder death
The policy has one drawback that its premium rate is high but bonus rate is low However it
has also one big attraction that they provide return in instalment when the term ends
The big advantage of this policy is that you can buy an annuity policy after the end of the
term of endowment policy and the annuity policy gives you the monthly income for whole
life
The policy gives so many benefits to its holder it helps you in case of any disability which
occur by an accident and you become totally disable before reaching the age of 70 and the
policy you hold is full force Then policy gives the benefit and you do not have to pay any
further instalment of the policy
GROUP INSURANCE POLICY
There are several individuals who are unable to purchase expensive life insurance policies
due to which they have to suffer several health problems without having any health treatment
But if you are working somewhere in organization then you can easily secure your life by
participating in Group Insurance Policy India which is purchased by the employers for their
employees in order to provide them utmost protection
This policy ensures about complete health coverage of employees and provides them benefits
by giving lots of services at lower cost per employee
There are numerous profitable and non-profitable organizations which can participate in this
type of policy as there is no strict restriction in it When employers purchase this policy for
their employees they get the certificates which ensure that they will surely obtain the
advantages
Itrsquos obvious that if this policy requires HMO registration then both employer and employees
have to participate in this program through which employees can better take care of their
health Through Group Insurance Policy India employees obtain flexible payroll deduction
6
but on the other hand there are some organizations which bear all instalments of this policy in
order provide their employees highest benefits
Insurance company can increase the price of premium any time they want and you cannot say
a single word against this action If a situation occurs when one of the employees have to go
for expensive treatment for his bad health then all the group has to bear high premium costs
Several companies have their own requirements regarding to numerous terms and conditions
Majority of group insurance Indianrsquos companies provide facility to get the regular doctor
checkups as well as they bear the medical expenses when employee gets through any severe
accident If employee requires any extended care in hospital then group insurance companies
always take care of this need of an employee by providing him complete health protection
PENSION PLAN OR ANNUITIES
How would you feel when your children will not support you in your old age How would
you feel when you will have to spend your golden period in old age home You would
definitely feel bad when you will have to suffer from these types of problems
Why not to choose that option which will provide you long term benefits after your
retirement and you donrsquot have to rely on anyonersquos salary and income
Take the help of Pension Plan or Annuities India or you can get both but there is a need to
boost up your mental skills in order to make right decision
Itrsquos never too late when you go for your retirement plans Always think positively and you
will get positive outcomes Itrsquos very important to save your future life earlier because future
life is going to be very tough which you can analyze from our present situation where people
of this world have been trapped into difficult situation
You just need to choose which plan suits to you a lot because pension is what you obtain
from your employer on your past working period with him And after your retirement you
obtain the amount at regular intervals after every month
JOINT LIFE POLICY
7
You will find several life insurance policies which are as similar as endowment policies are
Joint Life policy India also provides the same benefits but with the different features as well
This policy is purchased by couples and business partners Couples want to take the benefits
of this policy so that they would able to survive well when person would die husband or
wife
Business partners want to purchase this policy so that they would able to handle the business
in superb manner when one partner of this business dies
Itrsquos true that this policy provides utmost pleasure to you but only once when one person
passes away There are several couples who obtain maximum benefits from this policy This
policy provides you 10 years coverage as well as this policy is very much cost effective and
provides you best short term returns
Joint Life policy India provides complete protection to your mortgage If a couple has bought
any house on mortgage and after sometimes one person out of this couple is died due to
some severe reason then survived spouse will be able to handle its mortgage property with
the help of this policy
That person can easily pay the debts and will not find any difficulty in future while surviving
with the children Spouse will also get extra bonuses which would help himher to save
chunks of money which can be spent in other area of life in excellent manner
LOAN COVER TERM ASSURANCE POLICY
We are living in that era where we have to suffer many financial problems If we want to
purchase a house by our own we are unable to do so because of having less chances of
earning high
In this situation people adopt many loan facilities through which they fulfil their basic needs
like purchasing a home and get rid of paying rents
But if you think that you can easily get a house by having house loan then you are not taking
this matter seriously because house financing companies have some rules and regulations
which have to be followed in time otherwise you are unable to get your own house
8
If you are tired of attending the calls of HFC then you donrsquot need to worry when you have
full support of this insurance policy which is one of effective life insurance policies This
coverage provides you opportunity to reduce your loan instalments if you keep on paying the
insurance policyrsquos monthly premiums
HFC is linked with the Cover Term Assurance Policy of India so that interested individuals
would able to get rid of big problem of their life When HFC and insurance company link up
together they provide maximum relaxation to the individual to pay his home loan
After having the coverage you not only can get your own house but also you can get rid of
all those headaches which you were having due to non-paying instalments When you go
through any financial situation HFC doesnrsquot care about your painful situation
TERM LIFE POLICY
You can imagine better that when one day you will be passed away and will be gone away
from this world how your family will survive without you
They wonrsquot have enough money to live Your children have to leave their education Your
wife has to go for double shifting work Every schedule and facility of your familyrsquos life
would be disturbed
This term policy is considered to be a pure insurance protection because it never leaves you
empty hands at the time when you need money There are lots of advantages which you can
obtain from this policy First one is it provides complete protection to your family after your
death
Second one is you would never find any risk while having this policy and can pay instalments
in very nice manner Third one is you donrsquot have to pay instalment for longer period
There is a time duration which is specified for this policy and after that date this policy will
be expired and you will get your money back
Isnrsquot it the good choice to provide your family a protective backup system which will help
them at the time when you will no longer remain with your wife and children Majority
people think about their families a lot and purchase this policy
9
If you didnrsquot buy this policy yet then you should immediately get it because this is the only
policy which doesnrsquot take any extra charges against your paying instalments After having
term policy you will be assured about the protective life of your family
UNIT LINKED INSURANCE PLAN
Unit Linked Insurance Plan India provides highest benefits to those people who are interested
to invest in some companies or who want to purchase the units at their net asset value
This plan is just like mutual funds where several investors purchase some units in order to get
the income
Like mutual fund investors can obtain this coverage in order to purchase financial
instruments like stocks bonds securities etc
This plan is very efficient in handling your investment as well as it manages your risk profile
in fabulous manner You can get rid of major risk factors with the help of this plan which
provides you complete protection to your invested money
There are several key benefits you obtain from Unit Linked Insurance Plan which is one of
most protective life insurance policies and which ensure about the best life of you and your
family It means this plan provides you complete protection cover through which you can
spend good days of your life with your children parents and with your wife as well Unit
linked Indiarsquos plan is very simple uncomplicated and easy to understand
With the help of this plan you can better get an idea that how can you manage your capital
and how can you obtain maximum benefits out of this plan so that you would able to live
your life in better manner You should analyze the situation through which you can best
utilize your capitals over your purchased units
While having this plan you have to choose from three options ie debt equity and balanced
plan If any company doesnrsquot provide you these three options then you should consult any
other company which will provide you better opportunities
GENERAL INSURANCE
10
THEGENERALINSURANCEINDUSTRYININDIA
In India general insurance is a term used to mean all non life insurance business In other
countries terms like property casualty insurance and non life insurance are used
The history of this industry is characterized by massive reforms though the sector remains
heavily regulated Market liberalization in the industry took place in the year 2001
1THE VAST NATURE OF THE INDUSTRY
The industry meets its target market demand with products for marine insurance automobile
(which is compulsory in the country) public liability (also compulsory) homeownersrsquo
policies travel insurance etc The sector being highly regulated the public sector calls the
shots in determining the rules of delivering services in the country Typical companies
dominating the industry include
United India Insurance company
Reliance General Insurance Company (provides health insurance motor
insurance travel insurance personal accident insurance etc)and
United India Insurance Company (provides fire marine motor industrial
liability personal accident Mediclaim and Unimedicare policies amongst
others)
1 ADAPTING TO MODERN TECHNOLOGY
In general the industry has utilized state of the art information technology facilities in
delivering their services to their clients The sale of insurance policies in rural areas
has really gained from IT advancements in the industry The claim process is also
computerized allowing clients to quickly avail their claims to the company
The assessing of loss incurred in the event of fire for example is done by forensic
experts assuring the accuracy of calculation of the compensation to the claimant
11
Other adaptations include the teaming up with other industry stakeholders eg
universities in providing customized products to the clients
2 THE CHALLENGE OF THE TWENTY FIRST CENTURY
Various reforms characterize the market including the detarrification and mandatory
participation of foreign owned general insurance companies with resident companies
The twenty first century has brought a major challenge in this industry
One key challenge is the recession that is currently hitting almost all corners of the
economy of India However the general insurance sector seems to have been hit less
by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance
was the hardest hit resulting into closure of some of its branches
The governing council has however come up with various code of conduct in
response to the credit crisis One particular code of conduct is geared towards the
control of these companiesrsquo pricing patterns with the detarrification in place
INDIAS HOME INSURANCE INDUSTRY
The home insurance industry falls under the general insurance umbrella sector It is a very
popular industry in India due to the obvious reason of the inherent risks faced in India
In the paragraphs below we shall seek to explore this industry in depth focusing on its
importance the kind of policies available in the market together with policy exclusions how
the claim process is done and finally quote a couple of companies that are the driving force in
this industry
IMPORTANCEOFGETTINGTHECOVER
Your home is your most valuable asset Both the structure and the contents in them This is
where you hold memories of your family growing from stage to stage This is where you go
to when you need some peace of mind
This is also where you keep your sentimental assets When catastrophes strike you may end
up losing your home and all its valuables It is important therefore that you get your cover to
shield you against these unforeseen circumstances
12
THEPOLICYTYPESANDTHEIREXCLUSIONS
various policies exist in the market for cover against potential loss of your home and its
contents These policies range from those to cater for repair cost on the building (risks being
riots fire especially with the rise of electrical appliances in various households) replacement
of stolen items (risks being burglary theft terrorism etc) etc The various policy types are
customized to the various risks involved ie landslides earthquakes explosions fire etc
THECLAIMPROCESS
Despite many clients airing their complaints with regard to how the claim process is clogged
with bureaucracies the industry has tried to make uniform the whole procedure and ensure
that the final customer benefits In this process the first thing to consider once the insured
risk has occurred is to minimize loss as much as possible
In the event of a fire outbreak try to salvage as much as you can The next step is to inform
the police authorities especially in the event of a theft burglary etc Then inform your
provider (ensure that you had given your provider details of your property well in advance)
The provider shall send a surveyor to come and estimate the extent of the damage Finally
you need to submit your claim form to your provider
Wikipedia provides an in-depth list of service providers in this industry Some of these like
Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time
INDIAS HEALTH INSURANCE INDUSTRY
The health insurance industry a branch of the general insurance has been existent for a long
time It started in Europe as workers sickness benefits and evolved into the private sector
covering the various sectors of the economy
In India the industry has had its own share of milestones and setbacks as you may discover in
the discussion that follows
NATUREOFTHEINDUSTRY
The health insurance industry is mostly dominated by the private sector The public sector
acts as a regulatory body while providing the basic health care needed The poor find it hard
13
to access these services Generally the demand for proper healthcare far outweighs the
supply for the same
Problems in accessing the services coupled with the poor financial structure with little
government support in the form of social security has been a big challenge in the industry
However like any other service providers in these typical sectors the principal of pooling is
utilized
POLICIESINTHEMARKET
This industry has policies that cater for the individual and family The policies have been
differentiated to penetrate in the various market niches Typical policies include indemnity
insurance (this is to compensate the client for the damageloss incurred) cashless claim
facilities (this as the name suggests is to cater for the costs incurred without necessarily
paying a cash lump sum to the insured) and community based insurance
SETBACKSINTHEINDUSTRY
The main pitfalls that have been experienced in this industry have been the provider
malpractice and the limited nature of the coverage provided Medical institutions have been
quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the
claim bills
This is purely because a majority of persons have medical cover through employer schemes
Other malpractices include the failure of service providers to honour their promises and when
they do they delay the process making it hard for the claimant to recover from the loss The
other setback has been the inability to for example provide preventive healthcare policies
like for vaccinations voluntary testing etc All these are exclusions on the policies
The medical insurance industry has come in handy in times of various catastrophes like
floods earthquakes and accidents These covers have gone a long way in assisting persons to
recover from the loss and lead their individual lives as usual However a lot still needs to be
done for this industry by its stakeholders
INDIArsquoS MOTOR INSURANCE INDUSTRY
Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle
owners
14
This industry also falls under the umbrella general insurance sector where home health and
travel insurance covers fall
THEEXTENTOFTHECOVER
This cover caters for risks related to the driver the passenger and any third party involved at
the time of loss
Typical risks include both natural and man-made risks Natural risks are in the form of fire
explosions and self-ignition Man-made risks on the other hand relate to theft and burglary
etc
The personal accident policy is a compulsory policy It caters for the individual and hisher
passengers The third party legal liability caters for claims for other parties due to the loss
caused by the driverrsquos actions
NATUREOFTHECOVER
This type of cover is on the insured declared value This is a fixed value at which the client
insures his motor vehicle According to ICICI this insured declared value is calculated based
on the listing selling price as provided by the manufacturer
PLAYERSINTHEINDUSTRY
The industry is full of players that have met the industry standards while others have fallen
short of them At one time I came across a bloggerrsquos work lamenting about the customer care
and the whole claim process making observations that serious loopholes do exist in this
industry
In his writing he quoted two prominent service providers that charge premiums for the same
policy but the difference between the two premiums was too big The customer care was also
poor wasting a lot of time on the phone waiting for the call to be transferred to the right
customer care representative and finally being asked to call after a day or two
The online claim forms also placed on the providersrsquo websites kept on returning error
messages This was just one of the persons who have had a nasty experience in this industry
But judging from the comments his observations generated one can tell he is not alone
15
INDIAS TRAVEL INSURANCE INDUSTRY
The travel insurance industry comes in handy in India especially because of the enormous
traffic of visitors in and out of the country
Needless to say this cover also caters for citizens It is much easier to deal with
hospitalization bills when you are covered than when you are not should a loss occur to you
when you are in a foreign country
The industry has evolved for many years In the following discussion we shall take a critical
look at the extent of the cover the benefits for the client the exclusions and the quote
details
COVERAGE
This cover caters for among others any unexpected medical bills while on vacation any flight
accidents or delays any accidental damage to your personal effects while travelling any
accidental loss of money or important documents any passport replacements that you may
need to do in case your original passport goes missing hijacking etc The list is endless
BENEFITS
One can never overemphasize the benefits of this type of insurance Just having the peace of
mind knowing that your service provider shall come to your rescue should you have any
mishap while on your trip is reason enough to go for the cover
The recovery of important documents lost while on a trip is a welcome relief to the client
Also being able to cater for your hospitalization commitments when in a foreign country is
very much welcome
EXCLUSIONSOFTHECOVER
This kind of cover has strict exclusions to shield the provider from being manipulated into
paying for intentional losses These exclusions include any pre-existing medical conditions
any deliberate exposure by the client to the particular risk covered any loss that occurred to
16
the client while under the influence of alcohol or drug abuse etc These exclusions are usually
included in the contract and the client needs to understand them in order to avoid any
confusion in the future
DETAILSOFTHEQUOTE
The travel insurance industry has quotes to the potential client detailing the kind of
information required to be submitted before signing the contract This includes the name of
the location to where the person is travelling to the type of policy the client intends to
undertake when the client intends to terminate the contract and when the policy should start
Persons travelling for business or leisure need to assess their need for cover and then do their
homework in settling for an appropriate service provider
CHAPTER 2
17
STATEMENT OF PROBLEM
To know Market penetration of IDBI Fortis Life Insurance Company
limited at Chennai The India Insurance industry has grown at phenomenal rate Starting
as a Monopolistic Industry it has transformed into highly competitive industry it is not just
doing something right that matters but it is also about doing nothing wrong Making profit
does not only mean a large customer base but also depends on Penetration level of the
services provided to the customers and premium remittances
The Insurance companies come out with many schemes and offers to attract customers and
to make them invest in various schemes provided by these companies Most Importantly
Market Penetration of companies based on parameters like geographical coverage agency
awareness level of products and sustainability in the market based on product fundamentals is
of paramount importance as they can largely affect the market capitalisation of Insurance
companies The aim of this study would supplement this effort of the company in a small
way
HYPOTHESIS
Market penetration of IDBI Fortis Life Insurance is same throughout Chennai
CHAPTER 3
OBJECTIVES OF THE STUDY
18
For an organization to be successful they need to be equipped with the current position of
their share in the market They need to understand the new and the unidentified potential
available in the market The organization needs to understand the changing scenario taking
place in the market with respect to their business All these could be achieved only by
understanding the market sentiments
Thus through a Study to understand the current status of their Market penetration the
organization can motivate the current efforts of their sales force and efforts could be taken to
reduce the weakness complaints and also could come up with new schemes and facilities
according to the expectations of the Insurers Keeping the above view in the mind objectives
for the study are set and are given below
31 PRIMARY OBJECTIVE
To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at
Chennai
32 SECONDARY OBJECTIVE
The secondary objective of the study is to know awareness of different Insurance products
served in the market by different companies This project can also be a step in small way
towards identifying different channels through which companies can penetrate in market
33 SCOPE OF THE STUDY
The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance
is confined to Insurance Industry location Chennai during the month of March and April This has
been achieved by taking down the respondentrsquos views and responses individually by the
researcher using a Questionnaire The researcher asks the research questions in the questionnaire
to the respondent in a face-to-face fashion and records the response which is then used for the
analysis and interpretation part of the study
Once the study is through the researcher would be in a position to
advise the company about Market Penetration of IDBI Fortis in the respective areas where the
study has been undertaken The study would also help the company to find out the general
preferences factors considered by the Investors with respect to geographical presence
awareness of brand Product agency proliferation in the market customer satisfaction and
retention
19
CHAPTER 4
REVIEW OF LITERATURE
20
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA Subject
to the provisions of this Act and any other law for the time being in force the Authority shall
have the duty to regulate promote and ensure orderly growth of the insurance
businessandre-insurancebusiness
(1) Without prejudice to the generality of the provisions contained in sub-section (1) the
powers and functions of the Authority shall include several things like -
issue to the applicant a certificate of registration renew modify withdraw suspend or cancel
such registration
(2) protection of the interests of the policy holders in matters concerning assigning of policy
nomination by policy holders insurable interest settlement of insurance claim surrender
value of policy and other terms and conditions of contracts of insurance
(3) specifying requisite qualifications code of conduct and practical training for intermediary
or insurance intermediaries and agents
(4) specifying the code of conduct for surveyors and loss assessors
(5) promoting efficiency in the conduct of insurance business
(6) promoting and regulating professional organisations connected with the insurance and
re-insurance business
(7) levying fees and other charges for carrying out the purposes of this Act
(8) calling for information from undertaking inspection of conducting enquiries and
investigations including audit of the insurers intermediaries insurance intermediaries and
other organisations connected with the insurance business
(9) control and regulation of the rates advantages terms and conditions that may be offered
by insurers in respect of general insurance business not so controlled and regulated by the
Tariff Advisory Committee under section 64U of the Insurance Act 1938 (4 of 1938)
(10) specifying the form and manner in which books of account shall be maintained and
statement of accounts shall be rendered by insurers and other insurance intermediaries
(11) regulating investment of funds by insurance companies
(12) regulating maintenance of margin of solvency
(13) adjudication of disputes between insurers and intermediaries or insurance intermediaries
(14) supervising the functioning of the Tariff Advisory Committee
3
SERVICESINTHEINDUSTRY
The services rendered by this industry are overshadowed by the industrys history of
liberalization and nationalization Two main sectors exist They are the public sector and the
private sector with the former dominating the market
Individual company service provision includes such services as life insurance (endowment
assurance money back and miscellaneous services) and general insurancenon life insurance
(includes marine insurance motor insurance which is compulsory in the country fire
insurance etc)
FUTUREOFTHEINDUSTRY
From as early as 1947 to 1972 this industry has gone through dynamic change With the
formation of the regulatory body passing of the insurance act and passing of various
reforms this industry has become competitive and continues to attract interest from foreign
countries However the recent economic recession has greatly affected this industry
Currently there is a major credit crisis affecting the industry A typical example is the
collapse of US based AIG Company that has had ripple effects on to Indiarsquos TATA-AIG
General Insurance Company Bajaj Allianz Prudential and ICICI companies have already
closed some of their branches
Many players have proposed the merging of the various companies in the sector to be able to
caution themselves from the crunch It is equally important to note that recession is not new
to Indiarsquos economy The country has been able to come out of one once and it can do so even
now
LIFE INSURANCE POLICIES
Life insurance is a deal in which a person pledges money to a person which he choose so in
case of any misshaping all the money goes to that nominated person
The payment of the insured amount handover in these situations such as the date of maturity
given date or time frame and on the death of the insured man in case it occurs earlier
4
Life insurance policies are well known throughout the world and liked by the people because
these policies become a helping hand for their family in the situation if something happened
to the policyholder
This contract is civilized solution of the problems caused by death for the family of that
insured person The contract is useful at the extreme level of life and death such as if a person
die then his payment is given to his family on the other hand if the person become old and
cannot do anything for his earning then the contract come forward and helped the person
The contract is also a long term investment in which person can save his money for his old
age in spite of any mishap The method of saving money is very simple and easy because
company gives you the option of instalment call as premium and this money for insurance is
invest on monthly quarterly half-yearly or yearly basis
There is a simple example of salary saving scheme in which each month a little amount will
deducted from onersquos salary for paying the premium of the scheme This is the ideal scheme
for everybody who wants to do something for himself and for his family after his sudden
death
ENDOWMENT POLICY INDIA
Endowment is a life time policy in which the assured sum is come back to the policy holder
after the specific time period along with the bonuses except in case of the policy holder death
This policy is liked all around the globe as well as in India also The design of the policy is to
provide the benefit for living but it also cover the life protection policy
The people admired this policy because it is not only an investment but a whole life policy
also
In India endowment policies become a big business because these policies help to generate
the money as well as the money circulate in the market and market value goes high These
companies earn so much profit through stock exchange because the shares of these
companies sell in very high price in the market
5
The endowment policy in India is very popular nowadays because it is different from all the
other policies which are available in the market The premium of the policy is to payable for
the full term in spite of that policyholder death
The policy has one drawback that its premium rate is high but bonus rate is low However it
has also one big attraction that they provide return in instalment when the term ends
The big advantage of this policy is that you can buy an annuity policy after the end of the
term of endowment policy and the annuity policy gives you the monthly income for whole
life
The policy gives so many benefits to its holder it helps you in case of any disability which
occur by an accident and you become totally disable before reaching the age of 70 and the
policy you hold is full force Then policy gives the benefit and you do not have to pay any
further instalment of the policy
GROUP INSURANCE POLICY
There are several individuals who are unable to purchase expensive life insurance policies
due to which they have to suffer several health problems without having any health treatment
But if you are working somewhere in organization then you can easily secure your life by
participating in Group Insurance Policy India which is purchased by the employers for their
employees in order to provide them utmost protection
This policy ensures about complete health coverage of employees and provides them benefits
by giving lots of services at lower cost per employee
There are numerous profitable and non-profitable organizations which can participate in this
type of policy as there is no strict restriction in it When employers purchase this policy for
their employees they get the certificates which ensure that they will surely obtain the
advantages
Itrsquos obvious that if this policy requires HMO registration then both employer and employees
have to participate in this program through which employees can better take care of their
health Through Group Insurance Policy India employees obtain flexible payroll deduction
6
but on the other hand there are some organizations which bear all instalments of this policy in
order provide their employees highest benefits
Insurance company can increase the price of premium any time they want and you cannot say
a single word against this action If a situation occurs when one of the employees have to go
for expensive treatment for his bad health then all the group has to bear high premium costs
Several companies have their own requirements regarding to numerous terms and conditions
Majority of group insurance Indianrsquos companies provide facility to get the regular doctor
checkups as well as they bear the medical expenses when employee gets through any severe
accident If employee requires any extended care in hospital then group insurance companies
always take care of this need of an employee by providing him complete health protection
PENSION PLAN OR ANNUITIES
How would you feel when your children will not support you in your old age How would
you feel when you will have to spend your golden period in old age home You would
definitely feel bad when you will have to suffer from these types of problems
Why not to choose that option which will provide you long term benefits after your
retirement and you donrsquot have to rely on anyonersquos salary and income
Take the help of Pension Plan or Annuities India or you can get both but there is a need to
boost up your mental skills in order to make right decision
Itrsquos never too late when you go for your retirement plans Always think positively and you
will get positive outcomes Itrsquos very important to save your future life earlier because future
life is going to be very tough which you can analyze from our present situation where people
of this world have been trapped into difficult situation
You just need to choose which plan suits to you a lot because pension is what you obtain
from your employer on your past working period with him And after your retirement you
obtain the amount at regular intervals after every month
JOINT LIFE POLICY
7
You will find several life insurance policies which are as similar as endowment policies are
Joint Life policy India also provides the same benefits but with the different features as well
This policy is purchased by couples and business partners Couples want to take the benefits
of this policy so that they would able to survive well when person would die husband or
wife
Business partners want to purchase this policy so that they would able to handle the business
in superb manner when one partner of this business dies
Itrsquos true that this policy provides utmost pleasure to you but only once when one person
passes away There are several couples who obtain maximum benefits from this policy This
policy provides you 10 years coverage as well as this policy is very much cost effective and
provides you best short term returns
Joint Life policy India provides complete protection to your mortgage If a couple has bought
any house on mortgage and after sometimes one person out of this couple is died due to
some severe reason then survived spouse will be able to handle its mortgage property with
the help of this policy
That person can easily pay the debts and will not find any difficulty in future while surviving
with the children Spouse will also get extra bonuses which would help himher to save
chunks of money which can be spent in other area of life in excellent manner
LOAN COVER TERM ASSURANCE POLICY
We are living in that era where we have to suffer many financial problems If we want to
purchase a house by our own we are unable to do so because of having less chances of
earning high
In this situation people adopt many loan facilities through which they fulfil their basic needs
like purchasing a home and get rid of paying rents
But if you think that you can easily get a house by having house loan then you are not taking
this matter seriously because house financing companies have some rules and regulations
which have to be followed in time otherwise you are unable to get your own house
8
If you are tired of attending the calls of HFC then you donrsquot need to worry when you have
full support of this insurance policy which is one of effective life insurance policies This
coverage provides you opportunity to reduce your loan instalments if you keep on paying the
insurance policyrsquos monthly premiums
HFC is linked with the Cover Term Assurance Policy of India so that interested individuals
would able to get rid of big problem of their life When HFC and insurance company link up
together they provide maximum relaxation to the individual to pay his home loan
After having the coverage you not only can get your own house but also you can get rid of
all those headaches which you were having due to non-paying instalments When you go
through any financial situation HFC doesnrsquot care about your painful situation
TERM LIFE POLICY
You can imagine better that when one day you will be passed away and will be gone away
from this world how your family will survive without you
They wonrsquot have enough money to live Your children have to leave their education Your
wife has to go for double shifting work Every schedule and facility of your familyrsquos life
would be disturbed
This term policy is considered to be a pure insurance protection because it never leaves you
empty hands at the time when you need money There are lots of advantages which you can
obtain from this policy First one is it provides complete protection to your family after your
death
Second one is you would never find any risk while having this policy and can pay instalments
in very nice manner Third one is you donrsquot have to pay instalment for longer period
There is a time duration which is specified for this policy and after that date this policy will
be expired and you will get your money back
Isnrsquot it the good choice to provide your family a protective backup system which will help
them at the time when you will no longer remain with your wife and children Majority
people think about their families a lot and purchase this policy
9
If you didnrsquot buy this policy yet then you should immediately get it because this is the only
policy which doesnrsquot take any extra charges against your paying instalments After having
term policy you will be assured about the protective life of your family
UNIT LINKED INSURANCE PLAN
Unit Linked Insurance Plan India provides highest benefits to those people who are interested
to invest in some companies or who want to purchase the units at their net asset value
This plan is just like mutual funds where several investors purchase some units in order to get
the income
Like mutual fund investors can obtain this coverage in order to purchase financial
instruments like stocks bonds securities etc
This plan is very efficient in handling your investment as well as it manages your risk profile
in fabulous manner You can get rid of major risk factors with the help of this plan which
provides you complete protection to your invested money
There are several key benefits you obtain from Unit Linked Insurance Plan which is one of
most protective life insurance policies and which ensure about the best life of you and your
family It means this plan provides you complete protection cover through which you can
spend good days of your life with your children parents and with your wife as well Unit
linked Indiarsquos plan is very simple uncomplicated and easy to understand
With the help of this plan you can better get an idea that how can you manage your capital
and how can you obtain maximum benefits out of this plan so that you would able to live
your life in better manner You should analyze the situation through which you can best
utilize your capitals over your purchased units
While having this plan you have to choose from three options ie debt equity and balanced
plan If any company doesnrsquot provide you these three options then you should consult any
other company which will provide you better opportunities
GENERAL INSURANCE
10
THEGENERALINSURANCEINDUSTRYININDIA
In India general insurance is a term used to mean all non life insurance business In other
countries terms like property casualty insurance and non life insurance are used
The history of this industry is characterized by massive reforms though the sector remains
heavily regulated Market liberalization in the industry took place in the year 2001
1THE VAST NATURE OF THE INDUSTRY
The industry meets its target market demand with products for marine insurance automobile
(which is compulsory in the country) public liability (also compulsory) homeownersrsquo
policies travel insurance etc The sector being highly regulated the public sector calls the
shots in determining the rules of delivering services in the country Typical companies
dominating the industry include
United India Insurance company
Reliance General Insurance Company (provides health insurance motor
insurance travel insurance personal accident insurance etc)and
United India Insurance Company (provides fire marine motor industrial
liability personal accident Mediclaim and Unimedicare policies amongst
others)
1 ADAPTING TO MODERN TECHNOLOGY
In general the industry has utilized state of the art information technology facilities in
delivering their services to their clients The sale of insurance policies in rural areas
has really gained from IT advancements in the industry The claim process is also
computerized allowing clients to quickly avail their claims to the company
The assessing of loss incurred in the event of fire for example is done by forensic
experts assuring the accuracy of calculation of the compensation to the claimant
11
Other adaptations include the teaming up with other industry stakeholders eg
universities in providing customized products to the clients
2 THE CHALLENGE OF THE TWENTY FIRST CENTURY
Various reforms characterize the market including the detarrification and mandatory
participation of foreign owned general insurance companies with resident companies
The twenty first century has brought a major challenge in this industry
One key challenge is the recession that is currently hitting almost all corners of the
economy of India However the general insurance sector seems to have been hit less
by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance
was the hardest hit resulting into closure of some of its branches
The governing council has however come up with various code of conduct in
response to the credit crisis One particular code of conduct is geared towards the
control of these companiesrsquo pricing patterns with the detarrification in place
INDIAS HOME INSURANCE INDUSTRY
The home insurance industry falls under the general insurance umbrella sector It is a very
popular industry in India due to the obvious reason of the inherent risks faced in India
In the paragraphs below we shall seek to explore this industry in depth focusing on its
importance the kind of policies available in the market together with policy exclusions how
the claim process is done and finally quote a couple of companies that are the driving force in
this industry
IMPORTANCEOFGETTINGTHECOVER
Your home is your most valuable asset Both the structure and the contents in them This is
where you hold memories of your family growing from stage to stage This is where you go
to when you need some peace of mind
This is also where you keep your sentimental assets When catastrophes strike you may end
up losing your home and all its valuables It is important therefore that you get your cover to
shield you against these unforeseen circumstances
12
THEPOLICYTYPESANDTHEIREXCLUSIONS
various policies exist in the market for cover against potential loss of your home and its
contents These policies range from those to cater for repair cost on the building (risks being
riots fire especially with the rise of electrical appliances in various households) replacement
of stolen items (risks being burglary theft terrorism etc) etc The various policy types are
customized to the various risks involved ie landslides earthquakes explosions fire etc
THECLAIMPROCESS
Despite many clients airing their complaints with regard to how the claim process is clogged
with bureaucracies the industry has tried to make uniform the whole procedure and ensure
that the final customer benefits In this process the first thing to consider once the insured
risk has occurred is to minimize loss as much as possible
In the event of a fire outbreak try to salvage as much as you can The next step is to inform
the police authorities especially in the event of a theft burglary etc Then inform your
provider (ensure that you had given your provider details of your property well in advance)
The provider shall send a surveyor to come and estimate the extent of the damage Finally
you need to submit your claim form to your provider
Wikipedia provides an in-depth list of service providers in this industry Some of these like
Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time
INDIAS HEALTH INSURANCE INDUSTRY
The health insurance industry a branch of the general insurance has been existent for a long
time It started in Europe as workers sickness benefits and evolved into the private sector
covering the various sectors of the economy
In India the industry has had its own share of milestones and setbacks as you may discover in
the discussion that follows
NATUREOFTHEINDUSTRY
The health insurance industry is mostly dominated by the private sector The public sector
acts as a regulatory body while providing the basic health care needed The poor find it hard
13
to access these services Generally the demand for proper healthcare far outweighs the
supply for the same
Problems in accessing the services coupled with the poor financial structure with little
government support in the form of social security has been a big challenge in the industry
However like any other service providers in these typical sectors the principal of pooling is
utilized
POLICIESINTHEMARKET
This industry has policies that cater for the individual and family The policies have been
differentiated to penetrate in the various market niches Typical policies include indemnity
insurance (this is to compensate the client for the damageloss incurred) cashless claim
facilities (this as the name suggests is to cater for the costs incurred without necessarily
paying a cash lump sum to the insured) and community based insurance
SETBACKSINTHEINDUSTRY
The main pitfalls that have been experienced in this industry have been the provider
malpractice and the limited nature of the coverage provided Medical institutions have been
quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the
claim bills
This is purely because a majority of persons have medical cover through employer schemes
Other malpractices include the failure of service providers to honour their promises and when
they do they delay the process making it hard for the claimant to recover from the loss The
other setback has been the inability to for example provide preventive healthcare policies
like for vaccinations voluntary testing etc All these are exclusions on the policies
The medical insurance industry has come in handy in times of various catastrophes like
floods earthquakes and accidents These covers have gone a long way in assisting persons to
recover from the loss and lead their individual lives as usual However a lot still needs to be
done for this industry by its stakeholders
INDIArsquoS MOTOR INSURANCE INDUSTRY
Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle
owners
14
This industry also falls under the umbrella general insurance sector where home health and
travel insurance covers fall
THEEXTENTOFTHECOVER
This cover caters for risks related to the driver the passenger and any third party involved at
the time of loss
Typical risks include both natural and man-made risks Natural risks are in the form of fire
explosions and self-ignition Man-made risks on the other hand relate to theft and burglary
etc
The personal accident policy is a compulsory policy It caters for the individual and hisher
passengers The third party legal liability caters for claims for other parties due to the loss
caused by the driverrsquos actions
NATUREOFTHECOVER
This type of cover is on the insured declared value This is a fixed value at which the client
insures his motor vehicle According to ICICI this insured declared value is calculated based
on the listing selling price as provided by the manufacturer
PLAYERSINTHEINDUSTRY
The industry is full of players that have met the industry standards while others have fallen
short of them At one time I came across a bloggerrsquos work lamenting about the customer care
and the whole claim process making observations that serious loopholes do exist in this
industry
In his writing he quoted two prominent service providers that charge premiums for the same
policy but the difference between the two premiums was too big The customer care was also
poor wasting a lot of time on the phone waiting for the call to be transferred to the right
customer care representative and finally being asked to call after a day or two
The online claim forms also placed on the providersrsquo websites kept on returning error
messages This was just one of the persons who have had a nasty experience in this industry
But judging from the comments his observations generated one can tell he is not alone
15
INDIAS TRAVEL INSURANCE INDUSTRY
The travel insurance industry comes in handy in India especially because of the enormous
traffic of visitors in and out of the country
Needless to say this cover also caters for citizens It is much easier to deal with
hospitalization bills when you are covered than when you are not should a loss occur to you
when you are in a foreign country
The industry has evolved for many years In the following discussion we shall take a critical
look at the extent of the cover the benefits for the client the exclusions and the quote
details
COVERAGE
This cover caters for among others any unexpected medical bills while on vacation any flight
accidents or delays any accidental damage to your personal effects while travelling any
accidental loss of money or important documents any passport replacements that you may
need to do in case your original passport goes missing hijacking etc The list is endless
BENEFITS
One can never overemphasize the benefits of this type of insurance Just having the peace of
mind knowing that your service provider shall come to your rescue should you have any
mishap while on your trip is reason enough to go for the cover
The recovery of important documents lost while on a trip is a welcome relief to the client
Also being able to cater for your hospitalization commitments when in a foreign country is
very much welcome
EXCLUSIONSOFTHECOVER
This kind of cover has strict exclusions to shield the provider from being manipulated into
paying for intentional losses These exclusions include any pre-existing medical conditions
any deliberate exposure by the client to the particular risk covered any loss that occurred to
16
the client while under the influence of alcohol or drug abuse etc These exclusions are usually
included in the contract and the client needs to understand them in order to avoid any
confusion in the future
DETAILSOFTHEQUOTE
The travel insurance industry has quotes to the potential client detailing the kind of
information required to be submitted before signing the contract This includes the name of
the location to where the person is travelling to the type of policy the client intends to
undertake when the client intends to terminate the contract and when the policy should start
Persons travelling for business or leisure need to assess their need for cover and then do their
homework in settling for an appropriate service provider
CHAPTER 2
17
STATEMENT OF PROBLEM
To know Market penetration of IDBI Fortis Life Insurance Company
limited at Chennai The India Insurance industry has grown at phenomenal rate Starting
as a Monopolistic Industry it has transformed into highly competitive industry it is not just
doing something right that matters but it is also about doing nothing wrong Making profit
does not only mean a large customer base but also depends on Penetration level of the
services provided to the customers and premium remittances
The Insurance companies come out with many schemes and offers to attract customers and
to make them invest in various schemes provided by these companies Most Importantly
Market Penetration of companies based on parameters like geographical coverage agency
awareness level of products and sustainability in the market based on product fundamentals is
of paramount importance as they can largely affect the market capitalisation of Insurance
companies The aim of this study would supplement this effort of the company in a small
way
HYPOTHESIS
Market penetration of IDBI Fortis Life Insurance is same throughout Chennai
CHAPTER 3
OBJECTIVES OF THE STUDY
18
For an organization to be successful they need to be equipped with the current position of
their share in the market They need to understand the new and the unidentified potential
available in the market The organization needs to understand the changing scenario taking
place in the market with respect to their business All these could be achieved only by
understanding the market sentiments
Thus through a Study to understand the current status of their Market penetration the
organization can motivate the current efforts of their sales force and efforts could be taken to
reduce the weakness complaints and also could come up with new schemes and facilities
according to the expectations of the Insurers Keeping the above view in the mind objectives
for the study are set and are given below
31 PRIMARY OBJECTIVE
To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at
Chennai
32 SECONDARY OBJECTIVE
The secondary objective of the study is to know awareness of different Insurance products
served in the market by different companies This project can also be a step in small way
towards identifying different channels through which companies can penetrate in market
33 SCOPE OF THE STUDY
The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance
is confined to Insurance Industry location Chennai during the month of March and April This has
been achieved by taking down the respondentrsquos views and responses individually by the
researcher using a Questionnaire The researcher asks the research questions in the questionnaire
to the respondent in a face-to-face fashion and records the response which is then used for the
analysis and interpretation part of the study
Once the study is through the researcher would be in a position to
advise the company about Market Penetration of IDBI Fortis in the respective areas where the
study has been undertaken The study would also help the company to find out the general
preferences factors considered by the Investors with respect to geographical presence
awareness of brand Product agency proliferation in the market customer satisfaction and
retention
19
CHAPTER 4
REVIEW OF LITERATURE
20
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
SERVICESINTHEINDUSTRY
The services rendered by this industry are overshadowed by the industrys history of
liberalization and nationalization Two main sectors exist They are the public sector and the
private sector with the former dominating the market
Individual company service provision includes such services as life insurance (endowment
assurance money back and miscellaneous services) and general insurancenon life insurance
(includes marine insurance motor insurance which is compulsory in the country fire
insurance etc)
FUTUREOFTHEINDUSTRY
From as early as 1947 to 1972 this industry has gone through dynamic change With the
formation of the regulatory body passing of the insurance act and passing of various
reforms this industry has become competitive and continues to attract interest from foreign
countries However the recent economic recession has greatly affected this industry
Currently there is a major credit crisis affecting the industry A typical example is the
collapse of US based AIG Company that has had ripple effects on to Indiarsquos TATA-AIG
General Insurance Company Bajaj Allianz Prudential and ICICI companies have already
closed some of their branches
Many players have proposed the merging of the various companies in the sector to be able to
caution themselves from the crunch It is equally important to note that recession is not new
to Indiarsquos economy The country has been able to come out of one once and it can do so even
now
LIFE INSURANCE POLICIES
Life insurance is a deal in which a person pledges money to a person which he choose so in
case of any misshaping all the money goes to that nominated person
The payment of the insured amount handover in these situations such as the date of maturity
given date or time frame and on the death of the insured man in case it occurs earlier
4
Life insurance policies are well known throughout the world and liked by the people because
these policies become a helping hand for their family in the situation if something happened
to the policyholder
This contract is civilized solution of the problems caused by death for the family of that
insured person The contract is useful at the extreme level of life and death such as if a person
die then his payment is given to his family on the other hand if the person become old and
cannot do anything for his earning then the contract come forward and helped the person
The contract is also a long term investment in which person can save his money for his old
age in spite of any mishap The method of saving money is very simple and easy because
company gives you the option of instalment call as premium and this money for insurance is
invest on monthly quarterly half-yearly or yearly basis
There is a simple example of salary saving scheme in which each month a little amount will
deducted from onersquos salary for paying the premium of the scheme This is the ideal scheme
for everybody who wants to do something for himself and for his family after his sudden
death
ENDOWMENT POLICY INDIA
Endowment is a life time policy in which the assured sum is come back to the policy holder
after the specific time period along with the bonuses except in case of the policy holder death
This policy is liked all around the globe as well as in India also The design of the policy is to
provide the benefit for living but it also cover the life protection policy
The people admired this policy because it is not only an investment but a whole life policy
also
In India endowment policies become a big business because these policies help to generate
the money as well as the money circulate in the market and market value goes high These
companies earn so much profit through stock exchange because the shares of these
companies sell in very high price in the market
5
The endowment policy in India is very popular nowadays because it is different from all the
other policies which are available in the market The premium of the policy is to payable for
the full term in spite of that policyholder death
The policy has one drawback that its premium rate is high but bonus rate is low However it
has also one big attraction that they provide return in instalment when the term ends
The big advantage of this policy is that you can buy an annuity policy after the end of the
term of endowment policy and the annuity policy gives you the monthly income for whole
life
The policy gives so many benefits to its holder it helps you in case of any disability which
occur by an accident and you become totally disable before reaching the age of 70 and the
policy you hold is full force Then policy gives the benefit and you do not have to pay any
further instalment of the policy
GROUP INSURANCE POLICY
There are several individuals who are unable to purchase expensive life insurance policies
due to which they have to suffer several health problems without having any health treatment
But if you are working somewhere in organization then you can easily secure your life by
participating in Group Insurance Policy India which is purchased by the employers for their
employees in order to provide them utmost protection
This policy ensures about complete health coverage of employees and provides them benefits
by giving lots of services at lower cost per employee
There are numerous profitable and non-profitable organizations which can participate in this
type of policy as there is no strict restriction in it When employers purchase this policy for
their employees they get the certificates which ensure that they will surely obtain the
advantages
Itrsquos obvious that if this policy requires HMO registration then both employer and employees
have to participate in this program through which employees can better take care of their
health Through Group Insurance Policy India employees obtain flexible payroll deduction
6
but on the other hand there are some organizations which bear all instalments of this policy in
order provide their employees highest benefits
Insurance company can increase the price of premium any time they want and you cannot say
a single word against this action If a situation occurs when one of the employees have to go
for expensive treatment for his bad health then all the group has to bear high premium costs
Several companies have their own requirements regarding to numerous terms and conditions
Majority of group insurance Indianrsquos companies provide facility to get the regular doctor
checkups as well as they bear the medical expenses when employee gets through any severe
accident If employee requires any extended care in hospital then group insurance companies
always take care of this need of an employee by providing him complete health protection
PENSION PLAN OR ANNUITIES
How would you feel when your children will not support you in your old age How would
you feel when you will have to spend your golden period in old age home You would
definitely feel bad when you will have to suffer from these types of problems
Why not to choose that option which will provide you long term benefits after your
retirement and you donrsquot have to rely on anyonersquos salary and income
Take the help of Pension Plan or Annuities India or you can get both but there is a need to
boost up your mental skills in order to make right decision
Itrsquos never too late when you go for your retirement plans Always think positively and you
will get positive outcomes Itrsquos very important to save your future life earlier because future
life is going to be very tough which you can analyze from our present situation where people
of this world have been trapped into difficult situation
You just need to choose which plan suits to you a lot because pension is what you obtain
from your employer on your past working period with him And after your retirement you
obtain the amount at regular intervals after every month
JOINT LIFE POLICY
7
You will find several life insurance policies which are as similar as endowment policies are
Joint Life policy India also provides the same benefits but with the different features as well
This policy is purchased by couples and business partners Couples want to take the benefits
of this policy so that they would able to survive well when person would die husband or
wife
Business partners want to purchase this policy so that they would able to handle the business
in superb manner when one partner of this business dies
Itrsquos true that this policy provides utmost pleasure to you but only once when one person
passes away There are several couples who obtain maximum benefits from this policy This
policy provides you 10 years coverage as well as this policy is very much cost effective and
provides you best short term returns
Joint Life policy India provides complete protection to your mortgage If a couple has bought
any house on mortgage and after sometimes one person out of this couple is died due to
some severe reason then survived spouse will be able to handle its mortgage property with
the help of this policy
That person can easily pay the debts and will not find any difficulty in future while surviving
with the children Spouse will also get extra bonuses which would help himher to save
chunks of money which can be spent in other area of life in excellent manner
LOAN COVER TERM ASSURANCE POLICY
We are living in that era where we have to suffer many financial problems If we want to
purchase a house by our own we are unable to do so because of having less chances of
earning high
In this situation people adopt many loan facilities through which they fulfil their basic needs
like purchasing a home and get rid of paying rents
But if you think that you can easily get a house by having house loan then you are not taking
this matter seriously because house financing companies have some rules and regulations
which have to be followed in time otherwise you are unable to get your own house
8
If you are tired of attending the calls of HFC then you donrsquot need to worry when you have
full support of this insurance policy which is one of effective life insurance policies This
coverage provides you opportunity to reduce your loan instalments if you keep on paying the
insurance policyrsquos monthly premiums
HFC is linked with the Cover Term Assurance Policy of India so that interested individuals
would able to get rid of big problem of their life When HFC and insurance company link up
together they provide maximum relaxation to the individual to pay his home loan
After having the coverage you not only can get your own house but also you can get rid of
all those headaches which you were having due to non-paying instalments When you go
through any financial situation HFC doesnrsquot care about your painful situation
TERM LIFE POLICY
You can imagine better that when one day you will be passed away and will be gone away
from this world how your family will survive without you
They wonrsquot have enough money to live Your children have to leave their education Your
wife has to go for double shifting work Every schedule and facility of your familyrsquos life
would be disturbed
This term policy is considered to be a pure insurance protection because it never leaves you
empty hands at the time when you need money There are lots of advantages which you can
obtain from this policy First one is it provides complete protection to your family after your
death
Second one is you would never find any risk while having this policy and can pay instalments
in very nice manner Third one is you donrsquot have to pay instalment for longer period
There is a time duration which is specified for this policy and after that date this policy will
be expired and you will get your money back
Isnrsquot it the good choice to provide your family a protective backup system which will help
them at the time when you will no longer remain with your wife and children Majority
people think about their families a lot and purchase this policy
9
If you didnrsquot buy this policy yet then you should immediately get it because this is the only
policy which doesnrsquot take any extra charges against your paying instalments After having
term policy you will be assured about the protective life of your family
UNIT LINKED INSURANCE PLAN
Unit Linked Insurance Plan India provides highest benefits to those people who are interested
to invest in some companies or who want to purchase the units at their net asset value
This plan is just like mutual funds where several investors purchase some units in order to get
the income
Like mutual fund investors can obtain this coverage in order to purchase financial
instruments like stocks bonds securities etc
This plan is very efficient in handling your investment as well as it manages your risk profile
in fabulous manner You can get rid of major risk factors with the help of this plan which
provides you complete protection to your invested money
There are several key benefits you obtain from Unit Linked Insurance Plan which is one of
most protective life insurance policies and which ensure about the best life of you and your
family It means this plan provides you complete protection cover through which you can
spend good days of your life with your children parents and with your wife as well Unit
linked Indiarsquos plan is very simple uncomplicated and easy to understand
With the help of this plan you can better get an idea that how can you manage your capital
and how can you obtain maximum benefits out of this plan so that you would able to live
your life in better manner You should analyze the situation through which you can best
utilize your capitals over your purchased units
While having this plan you have to choose from three options ie debt equity and balanced
plan If any company doesnrsquot provide you these three options then you should consult any
other company which will provide you better opportunities
GENERAL INSURANCE
10
THEGENERALINSURANCEINDUSTRYININDIA
In India general insurance is a term used to mean all non life insurance business In other
countries terms like property casualty insurance and non life insurance are used
The history of this industry is characterized by massive reforms though the sector remains
heavily regulated Market liberalization in the industry took place in the year 2001
1THE VAST NATURE OF THE INDUSTRY
The industry meets its target market demand with products for marine insurance automobile
(which is compulsory in the country) public liability (also compulsory) homeownersrsquo
policies travel insurance etc The sector being highly regulated the public sector calls the
shots in determining the rules of delivering services in the country Typical companies
dominating the industry include
United India Insurance company
Reliance General Insurance Company (provides health insurance motor
insurance travel insurance personal accident insurance etc)and
United India Insurance Company (provides fire marine motor industrial
liability personal accident Mediclaim and Unimedicare policies amongst
others)
1 ADAPTING TO MODERN TECHNOLOGY
In general the industry has utilized state of the art information technology facilities in
delivering their services to their clients The sale of insurance policies in rural areas
has really gained from IT advancements in the industry The claim process is also
computerized allowing clients to quickly avail their claims to the company
The assessing of loss incurred in the event of fire for example is done by forensic
experts assuring the accuracy of calculation of the compensation to the claimant
11
Other adaptations include the teaming up with other industry stakeholders eg
universities in providing customized products to the clients
2 THE CHALLENGE OF THE TWENTY FIRST CENTURY
Various reforms characterize the market including the detarrification and mandatory
participation of foreign owned general insurance companies with resident companies
The twenty first century has brought a major challenge in this industry
One key challenge is the recession that is currently hitting almost all corners of the
economy of India However the general insurance sector seems to have been hit less
by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance
was the hardest hit resulting into closure of some of its branches
The governing council has however come up with various code of conduct in
response to the credit crisis One particular code of conduct is geared towards the
control of these companiesrsquo pricing patterns with the detarrification in place
INDIAS HOME INSURANCE INDUSTRY
The home insurance industry falls under the general insurance umbrella sector It is a very
popular industry in India due to the obvious reason of the inherent risks faced in India
In the paragraphs below we shall seek to explore this industry in depth focusing on its
importance the kind of policies available in the market together with policy exclusions how
the claim process is done and finally quote a couple of companies that are the driving force in
this industry
IMPORTANCEOFGETTINGTHECOVER
Your home is your most valuable asset Both the structure and the contents in them This is
where you hold memories of your family growing from stage to stage This is where you go
to when you need some peace of mind
This is also where you keep your sentimental assets When catastrophes strike you may end
up losing your home and all its valuables It is important therefore that you get your cover to
shield you against these unforeseen circumstances
12
THEPOLICYTYPESANDTHEIREXCLUSIONS
various policies exist in the market for cover against potential loss of your home and its
contents These policies range from those to cater for repair cost on the building (risks being
riots fire especially with the rise of electrical appliances in various households) replacement
of stolen items (risks being burglary theft terrorism etc) etc The various policy types are
customized to the various risks involved ie landslides earthquakes explosions fire etc
THECLAIMPROCESS
Despite many clients airing their complaints with regard to how the claim process is clogged
with bureaucracies the industry has tried to make uniform the whole procedure and ensure
that the final customer benefits In this process the first thing to consider once the insured
risk has occurred is to minimize loss as much as possible
In the event of a fire outbreak try to salvage as much as you can The next step is to inform
the police authorities especially in the event of a theft burglary etc Then inform your
provider (ensure that you had given your provider details of your property well in advance)
The provider shall send a surveyor to come and estimate the extent of the damage Finally
you need to submit your claim form to your provider
Wikipedia provides an in-depth list of service providers in this industry Some of these like
Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time
INDIAS HEALTH INSURANCE INDUSTRY
The health insurance industry a branch of the general insurance has been existent for a long
time It started in Europe as workers sickness benefits and evolved into the private sector
covering the various sectors of the economy
In India the industry has had its own share of milestones and setbacks as you may discover in
the discussion that follows
NATUREOFTHEINDUSTRY
The health insurance industry is mostly dominated by the private sector The public sector
acts as a regulatory body while providing the basic health care needed The poor find it hard
13
to access these services Generally the demand for proper healthcare far outweighs the
supply for the same
Problems in accessing the services coupled with the poor financial structure with little
government support in the form of social security has been a big challenge in the industry
However like any other service providers in these typical sectors the principal of pooling is
utilized
POLICIESINTHEMARKET
This industry has policies that cater for the individual and family The policies have been
differentiated to penetrate in the various market niches Typical policies include indemnity
insurance (this is to compensate the client for the damageloss incurred) cashless claim
facilities (this as the name suggests is to cater for the costs incurred without necessarily
paying a cash lump sum to the insured) and community based insurance
SETBACKSINTHEINDUSTRY
The main pitfalls that have been experienced in this industry have been the provider
malpractice and the limited nature of the coverage provided Medical institutions have been
quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the
claim bills
This is purely because a majority of persons have medical cover through employer schemes
Other malpractices include the failure of service providers to honour their promises and when
they do they delay the process making it hard for the claimant to recover from the loss The
other setback has been the inability to for example provide preventive healthcare policies
like for vaccinations voluntary testing etc All these are exclusions on the policies
The medical insurance industry has come in handy in times of various catastrophes like
floods earthquakes and accidents These covers have gone a long way in assisting persons to
recover from the loss and lead their individual lives as usual However a lot still needs to be
done for this industry by its stakeholders
INDIArsquoS MOTOR INSURANCE INDUSTRY
Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle
owners
14
This industry also falls under the umbrella general insurance sector where home health and
travel insurance covers fall
THEEXTENTOFTHECOVER
This cover caters for risks related to the driver the passenger and any third party involved at
the time of loss
Typical risks include both natural and man-made risks Natural risks are in the form of fire
explosions and self-ignition Man-made risks on the other hand relate to theft and burglary
etc
The personal accident policy is a compulsory policy It caters for the individual and hisher
passengers The third party legal liability caters for claims for other parties due to the loss
caused by the driverrsquos actions
NATUREOFTHECOVER
This type of cover is on the insured declared value This is a fixed value at which the client
insures his motor vehicle According to ICICI this insured declared value is calculated based
on the listing selling price as provided by the manufacturer
PLAYERSINTHEINDUSTRY
The industry is full of players that have met the industry standards while others have fallen
short of them At one time I came across a bloggerrsquos work lamenting about the customer care
and the whole claim process making observations that serious loopholes do exist in this
industry
In his writing he quoted two prominent service providers that charge premiums for the same
policy but the difference between the two premiums was too big The customer care was also
poor wasting a lot of time on the phone waiting for the call to be transferred to the right
customer care representative and finally being asked to call after a day or two
The online claim forms also placed on the providersrsquo websites kept on returning error
messages This was just one of the persons who have had a nasty experience in this industry
But judging from the comments his observations generated one can tell he is not alone
15
INDIAS TRAVEL INSURANCE INDUSTRY
The travel insurance industry comes in handy in India especially because of the enormous
traffic of visitors in and out of the country
Needless to say this cover also caters for citizens It is much easier to deal with
hospitalization bills when you are covered than when you are not should a loss occur to you
when you are in a foreign country
The industry has evolved for many years In the following discussion we shall take a critical
look at the extent of the cover the benefits for the client the exclusions and the quote
details
COVERAGE
This cover caters for among others any unexpected medical bills while on vacation any flight
accidents or delays any accidental damage to your personal effects while travelling any
accidental loss of money or important documents any passport replacements that you may
need to do in case your original passport goes missing hijacking etc The list is endless
BENEFITS
One can never overemphasize the benefits of this type of insurance Just having the peace of
mind knowing that your service provider shall come to your rescue should you have any
mishap while on your trip is reason enough to go for the cover
The recovery of important documents lost while on a trip is a welcome relief to the client
Also being able to cater for your hospitalization commitments when in a foreign country is
very much welcome
EXCLUSIONSOFTHECOVER
This kind of cover has strict exclusions to shield the provider from being manipulated into
paying for intentional losses These exclusions include any pre-existing medical conditions
any deliberate exposure by the client to the particular risk covered any loss that occurred to
16
the client while under the influence of alcohol or drug abuse etc These exclusions are usually
included in the contract and the client needs to understand them in order to avoid any
confusion in the future
DETAILSOFTHEQUOTE
The travel insurance industry has quotes to the potential client detailing the kind of
information required to be submitted before signing the contract This includes the name of
the location to where the person is travelling to the type of policy the client intends to
undertake when the client intends to terminate the contract and when the policy should start
Persons travelling for business or leisure need to assess their need for cover and then do their
homework in settling for an appropriate service provider
CHAPTER 2
17
STATEMENT OF PROBLEM
To know Market penetration of IDBI Fortis Life Insurance Company
limited at Chennai The India Insurance industry has grown at phenomenal rate Starting
as a Monopolistic Industry it has transformed into highly competitive industry it is not just
doing something right that matters but it is also about doing nothing wrong Making profit
does not only mean a large customer base but also depends on Penetration level of the
services provided to the customers and premium remittances
The Insurance companies come out with many schemes and offers to attract customers and
to make them invest in various schemes provided by these companies Most Importantly
Market Penetration of companies based on parameters like geographical coverage agency
awareness level of products and sustainability in the market based on product fundamentals is
of paramount importance as they can largely affect the market capitalisation of Insurance
companies The aim of this study would supplement this effort of the company in a small
way
HYPOTHESIS
Market penetration of IDBI Fortis Life Insurance is same throughout Chennai
CHAPTER 3
OBJECTIVES OF THE STUDY
18
For an organization to be successful they need to be equipped with the current position of
their share in the market They need to understand the new and the unidentified potential
available in the market The organization needs to understand the changing scenario taking
place in the market with respect to their business All these could be achieved only by
understanding the market sentiments
Thus through a Study to understand the current status of their Market penetration the
organization can motivate the current efforts of their sales force and efforts could be taken to
reduce the weakness complaints and also could come up with new schemes and facilities
according to the expectations of the Insurers Keeping the above view in the mind objectives
for the study are set and are given below
31 PRIMARY OBJECTIVE
To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at
Chennai
32 SECONDARY OBJECTIVE
The secondary objective of the study is to know awareness of different Insurance products
served in the market by different companies This project can also be a step in small way
towards identifying different channels through which companies can penetrate in market
33 SCOPE OF THE STUDY
The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance
is confined to Insurance Industry location Chennai during the month of March and April This has
been achieved by taking down the respondentrsquos views and responses individually by the
researcher using a Questionnaire The researcher asks the research questions in the questionnaire
to the respondent in a face-to-face fashion and records the response which is then used for the
analysis and interpretation part of the study
Once the study is through the researcher would be in a position to
advise the company about Market Penetration of IDBI Fortis in the respective areas where the
study has been undertaken The study would also help the company to find out the general
preferences factors considered by the Investors with respect to geographical presence
awareness of brand Product agency proliferation in the market customer satisfaction and
retention
19
CHAPTER 4
REVIEW OF LITERATURE
20
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
Life insurance policies are well known throughout the world and liked by the people because
these policies become a helping hand for their family in the situation if something happened
to the policyholder
This contract is civilized solution of the problems caused by death for the family of that
insured person The contract is useful at the extreme level of life and death such as if a person
die then his payment is given to his family on the other hand if the person become old and
cannot do anything for his earning then the contract come forward and helped the person
The contract is also a long term investment in which person can save his money for his old
age in spite of any mishap The method of saving money is very simple and easy because
company gives you the option of instalment call as premium and this money for insurance is
invest on monthly quarterly half-yearly or yearly basis
There is a simple example of salary saving scheme in which each month a little amount will
deducted from onersquos salary for paying the premium of the scheme This is the ideal scheme
for everybody who wants to do something for himself and for his family after his sudden
death
ENDOWMENT POLICY INDIA
Endowment is a life time policy in which the assured sum is come back to the policy holder
after the specific time period along with the bonuses except in case of the policy holder death
This policy is liked all around the globe as well as in India also The design of the policy is to
provide the benefit for living but it also cover the life protection policy
The people admired this policy because it is not only an investment but a whole life policy
also
In India endowment policies become a big business because these policies help to generate
the money as well as the money circulate in the market and market value goes high These
companies earn so much profit through stock exchange because the shares of these
companies sell in very high price in the market
5
The endowment policy in India is very popular nowadays because it is different from all the
other policies which are available in the market The premium of the policy is to payable for
the full term in spite of that policyholder death
The policy has one drawback that its premium rate is high but bonus rate is low However it
has also one big attraction that they provide return in instalment when the term ends
The big advantage of this policy is that you can buy an annuity policy after the end of the
term of endowment policy and the annuity policy gives you the monthly income for whole
life
The policy gives so many benefits to its holder it helps you in case of any disability which
occur by an accident and you become totally disable before reaching the age of 70 and the
policy you hold is full force Then policy gives the benefit and you do not have to pay any
further instalment of the policy
GROUP INSURANCE POLICY
There are several individuals who are unable to purchase expensive life insurance policies
due to which they have to suffer several health problems without having any health treatment
But if you are working somewhere in organization then you can easily secure your life by
participating in Group Insurance Policy India which is purchased by the employers for their
employees in order to provide them utmost protection
This policy ensures about complete health coverage of employees and provides them benefits
by giving lots of services at lower cost per employee
There are numerous profitable and non-profitable organizations which can participate in this
type of policy as there is no strict restriction in it When employers purchase this policy for
their employees they get the certificates which ensure that they will surely obtain the
advantages
Itrsquos obvious that if this policy requires HMO registration then both employer and employees
have to participate in this program through which employees can better take care of their
health Through Group Insurance Policy India employees obtain flexible payroll deduction
6
but on the other hand there are some organizations which bear all instalments of this policy in
order provide their employees highest benefits
Insurance company can increase the price of premium any time they want and you cannot say
a single word against this action If a situation occurs when one of the employees have to go
for expensive treatment for his bad health then all the group has to bear high premium costs
Several companies have their own requirements regarding to numerous terms and conditions
Majority of group insurance Indianrsquos companies provide facility to get the regular doctor
checkups as well as they bear the medical expenses when employee gets through any severe
accident If employee requires any extended care in hospital then group insurance companies
always take care of this need of an employee by providing him complete health protection
PENSION PLAN OR ANNUITIES
How would you feel when your children will not support you in your old age How would
you feel when you will have to spend your golden period in old age home You would
definitely feel bad when you will have to suffer from these types of problems
Why not to choose that option which will provide you long term benefits after your
retirement and you donrsquot have to rely on anyonersquos salary and income
Take the help of Pension Plan or Annuities India or you can get both but there is a need to
boost up your mental skills in order to make right decision
Itrsquos never too late when you go for your retirement plans Always think positively and you
will get positive outcomes Itrsquos very important to save your future life earlier because future
life is going to be very tough which you can analyze from our present situation where people
of this world have been trapped into difficult situation
You just need to choose which plan suits to you a lot because pension is what you obtain
from your employer on your past working period with him And after your retirement you
obtain the amount at regular intervals after every month
JOINT LIFE POLICY
7
You will find several life insurance policies which are as similar as endowment policies are
Joint Life policy India also provides the same benefits but with the different features as well
This policy is purchased by couples and business partners Couples want to take the benefits
of this policy so that they would able to survive well when person would die husband or
wife
Business partners want to purchase this policy so that they would able to handle the business
in superb manner when one partner of this business dies
Itrsquos true that this policy provides utmost pleasure to you but only once when one person
passes away There are several couples who obtain maximum benefits from this policy This
policy provides you 10 years coverage as well as this policy is very much cost effective and
provides you best short term returns
Joint Life policy India provides complete protection to your mortgage If a couple has bought
any house on mortgage and after sometimes one person out of this couple is died due to
some severe reason then survived spouse will be able to handle its mortgage property with
the help of this policy
That person can easily pay the debts and will not find any difficulty in future while surviving
with the children Spouse will also get extra bonuses which would help himher to save
chunks of money which can be spent in other area of life in excellent manner
LOAN COVER TERM ASSURANCE POLICY
We are living in that era where we have to suffer many financial problems If we want to
purchase a house by our own we are unable to do so because of having less chances of
earning high
In this situation people adopt many loan facilities through which they fulfil their basic needs
like purchasing a home and get rid of paying rents
But if you think that you can easily get a house by having house loan then you are not taking
this matter seriously because house financing companies have some rules and regulations
which have to be followed in time otherwise you are unable to get your own house
8
If you are tired of attending the calls of HFC then you donrsquot need to worry when you have
full support of this insurance policy which is one of effective life insurance policies This
coverage provides you opportunity to reduce your loan instalments if you keep on paying the
insurance policyrsquos monthly premiums
HFC is linked with the Cover Term Assurance Policy of India so that interested individuals
would able to get rid of big problem of their life When HFC and insurance company link up
together they provide maximum relaxation to the individual to pay his home loan
After having the coverage you not only can get your own house but also you can get rid of
all those headaches which you were having due to non-paying instalments When you go
through any financial situation HFC doesnrsquot care about your painful situation
TERM LIFE POLICY
You can imagine better that when one day you will be passed away and will be gone away
from this world how your family will survive without you
They wonrsquot have enough money to live Your children have to leave their education Your
wife has to go for double shifting work Every schedule and facility of your familyrsquos life
would be disturbed
This term policy is considered to be a pure insurance protection because it never leaves you
empty hands at the time when you need money There are lots of advantages which you can
obtain from this policy First one is it provides complete protection to your family after your
death
Second one is you would never find any risk while having this policy and can pay instalments
in very nice manner Third one is you donrsquot have to pay instalment for longer period
There is a time duration which is specified for this policy and after that date this policy will
be expired and you will get your money back
Isnrsquot it the good choice to provide your family a protective backup system which will help
them at the time when you will no longer remain with your wife and children Majority
people think about their families a lot and purchase this policy
9
If you didnrsquot buy this policy yet then you should immediately get it because this is the only
policy which doesnrsquot take any extra charges against your paying instalments After having
term policy you will be assured about the protective life of your family
UNIT LINKED INSURANCE PLAN
Unit Linked Insurance Plan India provides highest benefits to those people who are interested
to invest in some companies or who want to purchase the units at their net asset value
This plan is just like mutual funds where several investors purchase some units in order to get
the income
Like mutual fund investors can obtain this coverage in order to purchase financial
instruments like stocks bonds securities etc
This plan is very efficient in handling your investment as well as it manages your risk profile
in fabulous manner You can get rid of major risk factors with the help of this plan which
provides you complete protection to your invested money
There are several key benefits you obtain from Unit Linked Insurance Plan which is one of
most protective life insurance policies and which ensure about the best life of you and your
family It means this plan provides you complete protection cover through which you can
spend good days of your life with your children parents and with your wife as well Unit
linked Indiarsquos plan is very simple uncomplicated and easy to understand
With the help of this plan you can better get an idea that how can you manage your capital
and how can you obtain maximum benefits out of this plan so that you would able to live
your life in better manner You should analyze the situation through which you can best
utilize your capitals over your purchased units
While having this plan you have to choose from three options ie debt equity and balanced
plan If any company doesnrsquot provide you these three options then you should consult any
other company which will provide you better opportunities
GENERAL INSURANCE
10
THEGENERALINSURANCEINDUSTRYININDIA
In India general insurance is a term used to mean all non life insurance business In other
countries terms like property casualty insurance and non life insurance are used
The history of this industry is characterized by massive reforms though the sector remains
heavily regulated Market liberalization in the industry took place in the year 2001
1THE VAST NATURE OF THE INDUSTRY
The industry meets its target market demand with products for marine insurance automobile
(which is compulsory in the country) public liability (also compulsory) homeownersrsquo
policies travel insurance etc The sector being highly regulated the public sector calls the
shots in determining the rules of delivering services in the country Typical companies
dominating the industry include
United India Insurance company
Reliance General Insurance Company (provides health insurance motor
insurance travel insurance personal accident insurance etc)and
United India Insurance Company (provides fire marine motor industrial
liability personal accident Mediclaim and Unimedicare policies amongst
others)
1 ADAPTING TO MODERN TECHNOLOGY
In general the industry has utilized state of the art information technology facilities in
delivering their services to their clients The sale of insurance policies in rural areas
has really gained from IT advancements in the industry The claim process is also
computerized allowing clients to quickly avail their claims to the company
The assessing of loss incurred in the event of fire for example is done by forensic
experts assuring the accuracy of calculation of the compensation to the claimant
11
Other adaptations include the teaming up with other industry stakeholders eg
universities in providing customized products to the clients
2 THE CHALLENGE OF THE TWENTY FIRST CENTURY
Various reforms characterize the market including the detarrification and mandatory
participation of foreign owned general insurance companies with resident companies
The twenty first century has brought a major challenge in this industry
One key challenge is the recession that is currently hitting almost all corners of the
economy of India However the general insurance sector seems to have been hit less
by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance
was the hardest hit resulting into closure of some of its branches
The governing council has however come up with various code of conduct in
response to the credit crisis One particular code of conduct is geared towards the
control of these companiesrsquo pricing patterns with the detarrification in place
INDIAS HOME INSURANCE INDUSTRY
The home insurance industry falls under the general insurance umbrella sector It is a very
popular industry in India due to the obvious reason of the inherent risks faced in India
In the paragraphs below we shall seek to explore this industry in depth focusing on its
importance the kind of policies available in the market together with policy exclusions how
the claim process is done and finally quote a couple of companies that are the driving force in
this industry
IMPORTANCEOFGETTINGTHECOVER
Your home is your most valuable asset Both the structure and the contents in them This is
where you hold memories of your family growing from stage to stage This is where you go
to when you need some peace of mind
This is also where you keep your sentimental assets When catastrophes strike you may end
up losing your home and all its valuables It is important therefore that you get your cover to
shield you against these unforeseen circumstances
12
THEPOLICYTYPESANDTHEIREXCLUSIONS
various policies exist in the market for cover against potential loss of your home and its
contents These policies range from those to cater for repair cost on the building (risks being
riots fire especially with the rise of electrical appliances in various households) replacement
of stolen items (risks being burglary theft terrorism etc) etc The various policy types are
customized to the various risks involved ie landslides earthquakes explosions fire etc
THECLAIMPROCESS
Despite many clients airing their complaints with regard to how the claim process is clogged
with bureaucracies the industry has tried to make uniform the whole procedure and ensure
that the final customer benefits In this process the first thing to consider once the insured
risk has occurred is to minimize loss as much as possible
In the event of a fire outbreak try to salvage as much as you can The next step is to inform
the police authorities especially in the event of a theft burglary etc Then inform your
provider (ensure that you had given your provider details of your property well in advance)
The provider shall send a surveyor to come and estimate the extent of the damage Finally
you need to submit your claim form to your provider
Wikipedia provides an in-depth list of service providers in this industry Some of these like
Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time
INDIAS HEALTH INSURANCE INDUSTRY
The health insurance industry a branch of the general insurance has been existent for a long
time It started in Europe as workers sickness benefits and evolved into the private sector
covering the various sectors of the economy
In India the industry has had its own share of milestones and setbacks as you may discover in
the discussion that follows
NATUREOFTHEINDUSTRY
The health insurance industry is mostly dominated by the private sector The public sector
acts as a regulatory body while providing the basic health care needed The poor find it hard
13
to access these services Generally the demand for proper healthcare far outweighs the
supply for the same
Problems in accessing the services coupled with the poor financial structure with little
government support in the form of social security has been a big challenge in the industry
However like any other service providers in these typical sectors the principal of pooling is
utilized
POLICIESINTHEMARKET
This industry has policies that cater for the individual and family The policies have been
differentiated to penetrate in the various market niches Typical policies include indemnity
insurance (this is to compensate the client for the damageloss incurred) cashless claim
facilities (this as the name suggests is to cater for the costs incurred without necessarily
paying a cash lump sum to the insured) and community based insurance
SETBACKSINTHEINDUSTRY
The main pitfalls that have been experienced in this industry have been the provider
malpractice and the limited nature of the coverage provided Medical institutions have been
quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the
claim bills
This is purely because a majority of persons have medical cover through employer schemes
Other malpractices include the failure of service providers to honour their promises and when
they do they delay the process making it hard for the claimant to recover from the loss The
other setback has been the inability to for example provide preventive healthcare policies
like for vaccinations voluntary testing etc All these are exclusions on the policies
The medical insurance industry has come in handy in times of various catastrophes like
floods earthquakes and accidents These covers have gone a long way in assisting persons to
recover from the loss and lead their individual lives as usual However a lot still needs to be
done for this industry by its stakeholders
INDIArsquoS MOTOR INSURANCE INDUSTRY
Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle
owners
14
This industry also falls under the umbrella general insurance sector where home health and
travel insurance covers fall
THEEXTENTOFTHECOVER
This cover caters for risks related to the driver the passenger and any third party involved at
the time of loss
Typical risks include both natural and man-made risks Natural risks are in the form of fire
explosions and self-ignition Man-made risks on the other hand relate to theft and burglary
etc
The personal accident policy is a compulsory policy It caters for the individual and hisher
passengers The third party legal liability caters for claims for other parties due to the loss
caused by the driverrsquos actions
NATUREOFTHECOVER
This type of cover is on the insured declared value This is a fixed value at which the client
insures his motor vehicle According to ICICI this insured declared value is calculated based
on the listing selling price as provided by the manufacturer
PLAYERSINTHEINDUSTRY
The industry is full of players that have met the industry standards while others have fallen
short of them At one time I came across a bloggerrsquos work lamenting about the customer care
and the whole claim process making observations that serious loopholes do exist in this
industry
In his writing he quoted two prominent service providers that charge premiums for the same
policy but the difference between the two premiums was too big The customer care was also
poor wasting a lot of time on the phone waiting for the call to be transferred to the right
customer care representative and finally being asked to call after a day or two
The online claim forms also placed on the providersrsquo websites kept on returning error
messages This was just one of the persons who have had a nasty experience in this industry
But judging from the comments his observations generated one can tell he is not alone
15
INDIAS TRAVEL INSURANCE INDUSTRY
The travel insurance industry comes in handy in India especially because of the enormous
traffic of visitors in and out of the country
Needless to say this cover also caters for citizens It is much easier to deal with
hospitalization bills when you are covered than when you are not should a loss occur to you
when you are in a foreign country
The industry has evolved for many years In the following discussion we shall take a critical
look at the extent of the cover the benefits for the client the exclusions and the quote
details
COVERAGE
This cover caters for among others any unexpected medical bills while on vacation any flight
accidents or delays any accidental damage to your personal effects while travelling any
accidental loss of money or important documents any passport replacements that you may
need to do in case your original passport goes missing hijacking etc The list is endless
BENEFITS
One can never overemphasize the benefits of this type of insurance Just having the peace of
mind knowing that your service provider shall come to your rescue should you have any
mishap while on your trip is reason enough to go for the cover
The recovery of important documents lost while on a trip is a welcome relief to the client
Also being able to cater for your hospitalization commitments when in a foreign country is
very much welcome
EXCLUSIONSOFTHECOVER
This kind of cover has strict exclusions to shield the provider from being manipulated into
paying for intentional losses These exclusions include any pre-existing medical conditions
any deliberate exposure by the client to the particular risk covered any loss that occurred to
16
the client while under the influence of alcohol or drug abuse etc These exclusions are usually
included in the contract and the client needs to understand them in order to avoid any
confusion in the future
DETAILSOFTHEQUOTE
The travel insurance industry has quotes to the potential client detailing the kind of
information required to be submitted before signing the contract This includes the name of
the location to where the person is travelling to the type of policy the client intends to
undertake when the client intends to terminate the contract and when the policy should start
Persons travelling for business or leisure need to assess their need for cover and then do their
homework in settling for an appropriate service provider
CHAPTER 2
17
STATEMENT OF PROBLEM
To know Market penetration of IDBI Fortis Life Insurance Company
limited at Chennai The India Insurance industry has grown at phenomenal rate Starting
as a Monopolistic Industry it has transformed into highly competitive industry it is not just
doing something right that matters but it is also about doing nothing wrong Making profit
does not only mean a large customer base but also depends on Penetration level of the
services provided to the customers and premium remittances
The Insurance companies come out with many schemes and offers to attract customers and
to make them invest in various schemes provided by these companies Most Importantly
Market Penetration of companies based on parameters like geographical coverage agency
awareness level of products and sustainability in the market based on product fundamentals is
of paramount importance as they can largely affect the market capitalisation of Insurance
companies The aim of this study would supplement this effort of the company in a small
way
HYPOTHESIS
Market penetration of IDBI Fortis Life Insurance is same throughout Chennai
CHAPTER 3
OBJECTIVES OF THE STUDY
18
For an organization to be successful they need to be equipped with the current position of
their share in the market They need to understand the new and the unidentified potential
available in the market The organization needs to understand the changing scenario taking
place in the market with respect to their business All these could be achieved only by
understanding the market sentiments
Thus through a Study to understand the current status of their Market penetration the
organization can motivate the current efforts of their sales force and efforts could be taken to
reduce the weakness complaints and also could come up with new schemes and facilities
according to the expectations of the Insurers Keeping the above view in the mind objectives
for the study are set and are given below
31 PRIMARY OBJECTIVE
To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at
Chennai
32 SECONDARY OBJECTIVE
The secondary objective of the study is to know awareness of different Insurance products
served in the market by different companies This project can also be a step in small way
towards identifying different channels through which companies can penetrate in market
33 SCOPE OF THE STUDY
The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance
is confined to Insurance Industry location Chennai during the month of March and April This has
been achieved by taking down the respondentrsquos views and responses individually by the
researcher using a Questionnaire The researcher asks the research questions in the questionnaire
to the respondent in a face-to-face fashion and records the response which is then used for the
analysis and interpretation part of the study
Once the study is through the researcher would be in a position to
advise the company about Market Penetration of IDBI Fortis in the respective areas where the
study has been undertaken The study would also help the company to find out the general
preferences factors considered by the Investors with respect to geographical presence
awareness of brand Product agency proliferation in the market customer satisfaction and
retention
19
CHAPTER 4
REVIEW OF LITERATURE
20
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
The endowment policy in India is very popular nowadays because it is different from all the
other policies which are available in the market The premium of the policy is to payable for
the full term in spite of that policyholder death
The policy has one drawback that its premium rate is high but bonus rate is low However it
has also one big attraction that they provide return in instalment when the term ends
The big advantage of this policy is that you can buy an annuity policy after the end of the
term of endowment policy and the annuity policy gives you the monthly income for whole
life
The policy gives so many benefits to its holder it helps you in case of any disability which
occur by an accident and you become totally disable before reaching the age of 70 and the
policy you hold is full force Then policy gives the benefit and you do not have to pay any
further instalment of the policy
GROUP INSURANCE POLICY
There are several individuals who are unable to purchase expensive life insurance policies
due to which they have to suffer several health problems without having any health treatment
But if you are working somewhere in organization then you can easily secure your life by
participating in Group Insurance Policy India which is purchased by the employers for their
employees in order to provide them utmost protection
This policy ensures about complete health coverage of employees and provides them benefits
by giving lots of services at lower cost per employee
There are numerous profitable and non-profitable organizations which can participate in this
type of policy as there is no strict restriction in it When employers purchase this policy for
their employees they get the certificates which ensure that they will surely obtain the
advantages
Itrsquos obvious that if this policy requires HMO registration then both employer and employees
have to participate in this program through which employees can better take care of their
health Through Group Insurance Policy India employees obtain flexible payroll deduction
6
but on the other hand there are some organizations which bear all instalments of this policy in
order provide their employees highest benefits
Insurance company can increase the price of premium any time they want and you cannot say
a single word against this action If a situation occurs when one of the employees have to go
for expensive treatment for his bad health then all the group has to bear high premium costs
Several companies have their own requirements regarding to numerous terms and conditions
Majority of group insurance Indianrsquos companies provide facility to get the regular doctor
checkups as well as they bear the medical expenses when employee gets through any severe
accident If employee requires any extended care in hospital then group insurance companies
always take care of this need of an employee by providing him complete health protection
PENSION PLAN OR ANNUITIES
How would you feel when your children will not support you in your old age How would
you feel when you will have to spend your golden period in old age home You would
definitely feel bad when you will have to suffer from these types of problems
Why not to choose that option which will provide you long term benefits after your
retirement and you donrsquot have to rely on anyonersquos salary and income
Take the help of Pension Plan or Annuities India or you can get both but there is a need to
boost up your mental skills in order to make right decision
Itrsquos never too late when you go for your retirement plans Always think positively and you
will get positive outcomes Itrsquos very important to save your future life earlier because future
life is going to be very tough which you can analyze from our present situation where people
of this world have been trapped into difficult situation
You just need to choose which plan suits to you a lot because pension is what you obtain
from your employer on your past working period with him And after your retirement you
obtain the amount at regular intervals after every month
JOINT LIFE POLICY
7
You will find several life insurance policies which are as similar as endowment policies are
Joint Life policy India also provides the same benefits but with the different features as well
This policy is purchased by couples and business partners Couples want to take the benefits
of this policy so that they would able to survive well when person would die husband or
wife
Business partners want to purchase this policy so that they would able to handle the business
in superb manner when one partner of this business dies
Itrsquos true that this policy provides utmost pleasure to you but only once when one person
passes away There are several couples who obtain maximum benefits from this policy This
policy provides you 10 years coverage as well as this policy is very much cost effective and
provides you best short term returns
Joint Life policy India provides complete protection to your mortgage If a couple has bought
any house on mortgage and after sometimes one person out of this couple is died due to
some severe reason then survived spouse will be able to handle its mortgage property with
the help of this policy
That person can easily pay the debts and will not find any difficulty in future while surviving
with the children Spouse will also get extra bonuses which would help himher to save
chunks of money which can be spent in other area of life in excellent manner
LOAN COVER TERM ASSURANCE POLICY
We are living in that era where we have to suffer many financial problems If we want to
purchase a house by our own we are unable to do so because of having less chances of
earning high
In this situation people adopt many loan facilities through which they fulfil their basic needs
like purchasing a home and get rid of paying rents
But if you think that you can easily get a house by having house loan then you are not taking
this matter seriously because house financing companies have some rules and regulations
which have to be followed in time otherwise you are unable to get your own house
8
If you are tired of attending the calls of HFC then you donrsquot need to worry when you have
full support of this insurance policy which is one of effective life insurance policies This
coverage provides you opportunity to reduce your loan instalments if you keep on paying the
insurance policyrsquos monthly premiums
HFC is linked with the Cover Term Assurance Policy of India so that interested individuals
would able to get rid of big problem of their life When HFC and insurance company link up
together they provide maximum relaxation to the individual to pay his home loan
After having the coverage you not only can get your own house but also you can get rid of
all those headaches which you were having due to non-paying instalments When you go
through any financial situation HFC doesnrsquot care about your painful situation
TERM LIFE POLICY
You can imagine better that when one day you will be passed away and will be gone away
from this world how your family will survive without you
They wonrsquot have enough money to live Your children have to leave their education Your
wife has to go for double shifting work Every schedule and facility of your familyrsquos life
would be disturbed
This term policy is considered to be a pure insurance protection because it never leaves you
empty hands at the time when you need money There are lots of advantages which you can
obtain from this policy First one is it provides complete protection to your family after your
death
Second one is you would never find any risk while having this policy and can pay instalments
in very nice manner Third one is you donrsquot have to pay instalment for longer period
There is a time duration which is specified for this policy and after that date this policy will
be expired and you will get your money back
Isnrsquot it the good choice to provide your family a protective backup system which will help
them at the time when you will no longer remain with your wife and children Majority
people think about their families a lot and purchase this policy
9
If you didnrsquot buy this policy yet then you should immediately get it because this is the only
policy which doesnrsquot take any extra charges against your paying instalments After having
term policy you will be assured about the protective life of your family
UNIT LINKED INSURANCE PLAN
Unit Linked Insurance Plan India provides highest benefits to those people who are interested
to invest in some companies or who want to purchase the units at their net asset value
This plan is just like mutual funds where several investors purchase some units in order to get
the income
Like mutual fund investors can obtain this coverage in order to purchase financial
instruments like stocks bonds securities etc
This plan is very efficient in handling your investment as well as it manages your risk profile
in fabulous manner You can get rid of major risk factors with the help of this plan which
provides you complete protection to your invested money
There are several key benefits you obtain from Unit Linked Insurance Plan which is one of
most protective life insurance policies and which ensure about the best life of you and your
family It means this plan provides you complete protection cover through which you can
spend good days of your life with your children parents and with your wife as well Unit
linked Indiarsquos plan is very simple uncomplicated and easy to understand
With the help of this plan you can better get an idea that how can you manage your capital
and how can you obtain maximum benefits out of this plan so that you would able to live
your life in better manner You should analyze the situation through which you can best
utilize your capitals over your purchased units
While having this plan you have to choose from three options ie debt equity and balanced
plan If any company doesnrsquot provide you these three options then you should consult any
other company which will provide you better opportunities
GENERAL INSURANCE
10
THEGENERALINSURANCEINDUSTRYININDIA
In India general insurance is a term used to mean all non life insurance business In other
countries terms like property casualty insurance and non life insurance are used
The history of this industry is characterized by massive reforms though the sector remains
heavily regulated Market liberalization in the industry took place in the year 2001
1THE VAST NATURE OF THE INDUSTRY
The industry meets its target market demand with products for marine insurance automobile
(which is compulsory in the country) public liability (also compulsory) homeownersrsquo
policies travel insurance etc The sector being highly regulated the public sector calls the
shots in determining the rules of delivering services in the country Typical companies
dominating the industry include
United India Insurance company
Reliance General Insurance Company (provides health insurance motor
insurance travel insurance personal accident insurance etc)and
United India Insurance Company (provides fire marine motor industrial
liability personal accident Mediclaim and Unimedicare policies amongst
others)
1 ADAPTING TO MODERN TECHNOLOGY
In general the industry has utilized state of the art information technology facilities in
delivering their services to their clients The sale of insurance policies in rural areas
has really gained from IT advancements in the industry The claim process is also
computerized allowing clients to quickly avail their claims to the company
The assessing of loss incurred in the event of fire for example is done by forensic
experts assuring the accuracy of calculation of the compensation to the claimant
11
Other adaptations include the teaming up with other industry stakeholders eg
universities in providing customized products to the clients
2 THE CHALLENGE OF THE TWENTY FIRST CENTURY
Various reforms characterize the market including the detarrification and mandatory
participation of foreign owned general insurance companies with resident companies
The twenty first century has brought a major challenge in this industry
One key challenge is the recession that is currently hitting almost all corners of the
economy of India However the general insurance sector seems to have been hit less
by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance
was the hardest hit resulting into closure of some of its branches
The governing council has however come up with various code of conduct in
response to the credit crisis One particular code of conduct is geared towards the
control of these companiesrsquo pricing patterns with the detarrification in place
INDIAS HOME INSURANCE INDUSTRY
The home insurance industry falls under the general insurance umbrella sector It is a very
popular industry in India due to the obvious reason of the inherent risks faced in India
In the paragraphs below we shall seek to explore this industry in depth focusing on its
importance the kind of policies available in the market together with policy exclusions how
the claim process is done and finally quote a couple of companies that are the driving force in
this industry
IMPORTANCEOFGETTINGTHECOVER
Your home is your most valuable asset Both the structure and the contents in them This is
where you hold memories of your family growing from stage to stage This is where you go
to when you need some peace of mind
This is also where you keep your sentimental assets When catastrophes strike you may end
up losing your home and all its valuables It is important therefore that you get your cover to
shield you against these unforeseen circumstances
12
THEPOLICYTYPESANDTHEIREXCLUSIONS
various policies exist in the market for cover against potential loss of your home and its
contents These policies range from those to cater for repair cost on the building (risks being
riots fire especially with the rise of electrical appliances in various households) replacement
of stolen items (risks being burglary theft terrorism etc) etc The various policy types are
customized to the various risks involved ie landslides earthquakes explosions fire etc
THECLAIMPROCESS
Despite many clients airing their complaints with regard to how the claim process is clogged
with bureaucracies the industry has tried to make uniform the whole procedure and ensure
that the final customer benefits In this process the first thing to consider once the insured
risk has occurred is to minimize loss as much as possible
In the event of a fire outbreak try to salvage as much as you can The next step is to inform
the police authorities especially in the event of a theft burglary etc Then inform your
provider (ensure that you had given your provider details of your property well in advance)
The provider shall send a surveyor to come and estimate the extent of the damage Finally
you need to submit your claim form to your provider
Wikipedia provides an in-depth list of service providers in this industry Some of these like
Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time
INDIAS HEALTH INSURANCE INDUSTRY
The health insurance industry a branch of the general insurance has been existent for a long
time It started in Europe as workers sickness benefits and evolved into the private sector
covering the various sectors of the economy
In India the industry has had its own share of milestones and setbacks as you may discover in
the discussion that follows
NATUREOFTHEINDUSTRY
The health insurance industry is mostly dominated by the private sector The public sector
acts as a regulatory body while providing the basic health care needed The poor find it hard
13
to access these services Generally the demand for proper healthcare far outweighs the
supply for the same
Problems in accessing the services coupled with the poor financial structure with little
government support in the form of social security has been a big challenge in the industry
However like any other service providers in these typical sectors the principal of pooling is
utilized
POLICIESINTHEMARKET
This industry has policies that cater for the individual and family The policies have been
differentiated to penetrate in the various market niches Typical policies include indemnity
insurance (this is to compensate the client for the damageloss incurred) cashless claim
facilities (this as the name suggests is to cater for the costs incurred without necessarily
paying a cash lump sum to the insured) and community based insurance
SETBACKSINTHEINDUSTRY
The main pitfalls that have been experienced in this industry have been the provider
malpractice and the limited nature of the coverage provided Medical institutions have been
quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the
claim bills
This is purely because a majority of persons have medical cover through employer schemes
Other malpractices include the failure of service providers to honour their promises and when
they do they delay the process making it hard for the claimant to recover from the loss The
other setback has been the inability to for example provide preventive healthcare policies
like for vaccinations voluntary testing etc All these are exclusions on the policies
The medical insurance industry has come in handy in times of various catastrophes like
floods earthquakes and accidents These covers have gone a long way in assisting persons to
recover from the loss and lead their individual lives as usual However a lot still needs to be
done for this industry by its stakeholders
INDIArsquoS MOTOR INSURANCE INDUSTRY
Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle
owners
14
This industry also falls under the umbrella general insurance sector where home health and
travel insurance covers fall
THEEXTENTOFTHECOVER
This cover caters for risks related to the driver the passenger and any third party involved at
the time of loss
Typical risks include both natural and man-made risks Natural risks are in the form of fire
explosions and self-ignition Man-made risks on the other hand relate to theft and burglary
etc
The personal accident policy is a compulsory policy It caters for the individual and hisher
passengers The third party legal liability caters for claims for other parties due to the loss
caused by the driverrsquos actions
NATUREOFTHECOVER
This type of cover is on the insured declared value This is a fixed value at which the client
insures his motor vehicle According to ICICI this insured declared value is calculated based
on the listing selling price as provided by the manufacturer
PLAYERSINTHEINDUSTRY
The industry is full of players that have met the industry standards while others have fallen
short of them At one time I came across a bloggerrsquos work lamenting about the customer care
and the whole claim process making observations that serious loopholes do exist in this
industry
In his writing he quoted two prominent service providers that charge premiums for the same
policy but the difference between the two premiums was too big The customer care was also
poor wasting a lot of time on the phone waiting for the call to be transferred to the right
customer care representative and finally being asked to call after a day or two
The online claim forms also placed on the providersrsquo websites kept on returning error
messages This was just one of the persons who have had a nasty experience in this industry
But judging from the comments his observations generated one can tell he is not alone
15
INDIAS TRAVEL INSURANCE INDUSTRY
The travel insurance industry comes in handy in India especially because of the enormous
traffic of visitors in and out of the country
Needless to say this cover also caters for citizens It is much easier to deal with
hospitalization bills when you are covered than when you are not should a loss occur to you
when you are in a foreign country
The industry has evolved for many years In the following discussion we shall take a critical
look at the extent of the cover the benefits for the client the exclusions and the quote
details
COVERAGE
This cover caters for among others any unexpected medical bills while on vacation any flight
accidents or delays any accidental damage to your personal effects while travelling any
accidental loss of money or important documents any passport replacements that you may
need to do in case your original passport goes missing hijacking etc The list is endless
BENEFITS
One can never overemphasize the benefits of this type of insurance Just having the peace of
mind knowing that your service provider shall come to your rescue should you have any
mishap while on your trip is reason enough to go for the cover
The recovery of important documents lost while on a trip is a welcome relief to the client
Also being able to cater for your hospitalization commitments when in a foreign country is
very much welcome
EXCLUSIONSOFTHECOVER
This kind of cover has strict exclusions to shield the provider from being manipulated into
paying for intentional losses These exclusions include any pre-existing medical conditions
any deliberate exposure by the client to the particular risk covered any loss that occurred to
16
the client while under the influence of alcohol or drug abuse etc These exclusions are usually
included in the contract and the client needs to understand them in order to avoid any
confusion in the future
DETAILSOFTHEQUOTE
The travel insurance industry has quotes to the potential client detailing the kind of
information required to be submitted before signing the contract This includes the name of
the location to where the person is travelling to the type of policy the client intends to
undertake when the client intends to terminate the contract and when the policy should start
Persons travelling for business or leisure need to assess their need for cover and then do their
homework in settling for an appropriate service provider
CHAPTER 2
17
STATEMENT OF PROBLEM
To know Market penetration of IDBI Fortis Life Insurance Company
limited at Chennai The India Insurance industry has grown at phenomenal rate Starting
as a Monopolistic Industry it has transformed into highly competitive industry it is not just
doing something right that matters but it is also about doing nothing wrong Making profit
does not only mean a large customer base but also depends on Penetration level of the
services provided to the customers and premium remittances
The Insurance companies come out with many schemes and offers to attract customers and
to make them invest in various schemes provided by these companies Most Importantly
Market Penetration of companies based on parameters like geographical coverage agency
awareness level of products and sustainability in the market based on product fundamentals is
of paramount importance as they can largely affect the market capitalisation of Insurance
companies The aim of this study would supplement this effort of the company in a small
way
HYPOTHESIS
Market penetration of IDBI Fortis Life Insurance is same throughout Chennai
CHAPTER 3
OBJECTIVES OF THE STUDY
18
For an organization to be successful they need to be equipped with the current position of
their share in the market They need to understand the new and the unidentified potential
available in the market The organization needs to understand the changing scenario taking
place in the market with respect to their business All these could be achieved only by
understanding the market sentiments
Thus through a Study to understand the current status of their Market penetration the
organization can motivate the current efforts of their sales force and efforts could be taken to
reduce the weakness complaints and also could come up with new schemes and facilities
according to the expectations of the Insurers Keeping the above view in the mind objectives
for the study are set and are given below
31 PRIMARY OBJECTIVE
To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at
Chennai
32 SECONDARY OBJECTIVE
The secondary objective of the study is to know awareness of different Insurance products
served in the market by different companies This project can also be a step in small way
towards identifying different channels through which companies can penetrate in market
33 SCOPE OF THE STUDY
The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance
is confined to Insurance Industry location Chennai during the month of March and April This has
been achieved by taking down the respondentrsquos views and responses individually by the
researcher using a Questionnaire The researcher asks the research questions in the questionnaire
to the respondent in a face-to-face fashion and records the response which is then used for the
analysis and interpretation part of the study
Once the study is through the researcher would be in a position to
advise the company about Market Penetration of IDBI Fortis in the respective areas where the
study has been undertaken The study would also help the company to find out the general
preferences factors considered by the Investors with respect to geographical presence
awareness of brand Product agency proliferation in the market customer satisfaction and
retention
19
CHAPTER 4
REVIEW OF LITERATURE
20
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
but on the other hand there are some organizations which bear all instalments of this policy in
order provide their employees highest benefits
Insurance company can increase the price of premium any time they want and you cannot say
a single word against this action If a situation occurs when one of the employees have to go
for expensive treatment for his bad health then all the group has to bear high premium costs
Several companies have their own requirements regarding to numerous terms and conditions
Majority of group insurance Indianrsquos companies provide facility to get the regular doctor
checkups as well as they bear the medical expenses when employee gets through any severe
accident If employee requires any extended care in hospital then group insurance companies
always take care of this need of an employee by providing him complete health protection
PENSION PLAN OR ANNUITIES
How would you feel when your children will not support you in your old age How would
you feel when you will have to spend your golden period in old age home You would
definitely feel bad when you will have to suffer from these types of problems
Why not to choose that option which will provide you long term benefits after your
retirement and you donrsquot have to rely on anyonersquos salary and income
Take the help of Pension Plan or Annuities India or you can get both but there is a need to
boost up your mental skills in order to make right decision
Itrsquos never too late when you go for your retirement plans Always think positively and you
will get positive outcomes Itrsquos very important to save your future life earlier because future
life is going to be very tough which you can analyze from our present situation where people
of this world have been trapped into difficult situation
You just need to choose which plan suits to you a lot because pension is what you obtain
from your employer on your past working period with him And after your retirement you
obtain the amount at regular intervals after every month
JOINT LIFE POLICY
7
You will find several life insurance policies which are as similar as endowment policies are
Joint Life policy India also provides the same benefits but with the different features as well
This policy is purchased by couples and business partners Couples want to take the benefits
of this policy so that they would able to survive well when person would die husband or
wife
Business partners want to purchase this policy so that they would able to handle the business
in superb manner when one partner of this business dies
Itrsquos true that this policy provides utmost pleasure to you but only once when one person
passes away There are several couples who obtain maximum benefits from this policy This
policy provides you 10 years coverage as well as this policy is very much cost effective and
provides you best short term returns
Joint Life policy India provides complete protection to your mortgage If a couple has bought
any house on mortgage and after sometimes one person out of this couple is died due to
some severe reason then survived spouse will be able to handle its mortgage property with
the help of this policy
That person can easily pay the debts and will not find any difficulty in future while surviving
with the children Spouse will also get extra bonuses which would help himher to save
chunks of money which can be spent in other area of life in excellent manner
LOAN COVER TERM ASSURANCE POLICY
We are living in that era where we have to suffer many financial problems If we want to
purchase a house by our own we are unable to do so because of having less chances of
earning high
In this situation people adopt many loan facilities through which they fulfil their basic needs
like purchasing a home and get rid of paying rents
But if you think that you can easily get a house by having house loan then you are not taking
this matter seriously because house financing companies have some rules and regulations
which have to be followed in time otherwise you are unable to get your own house
8
If you are tired of attending the calls of HFC then you donrsquot need to worry when you have
full support of this insurance policy which is one of effective life insurance policies This
coverage provides you opportunity to reduce your loan instalments if you keep on paying the
insurance policyrsquos monthly premiums
HFC is linked with the Cover Term Assurance Policy of India so that interested individuals
would able to get rid of big problem of their life When HFC and insurance company link up
together they provide maximum relaxation to the individual to pay his home loan
After having the coverage you not only can get your own house but also you can get rid of
all those headaches which you were having due to non-paying instalments When you go
through any financial situation HFC doesnrsquot care about your painful situation
TERM LIFE POLICY
You can imagine better that when one day you will be passed away and will be gone away
from this world how your family will survive without you
They wonrsquot have enough money to live Your children have to leave their education Your
wife has to go for double shifting work Every schedule and facility of your familyrsquos life
would be disturbed
This term policy is considered to be a pure insurance protection because it never leaves you
empty hands at the time when you need money There are lots of advantages which you can
obtain from this policy First one is it provides complete protection to your family after your
death
Second one is you would never find any risk while having this policy and can pay instalments
in very nice manner Third one is you donrsquot have to pay instalment for longer period
There is a time duration which is specified for this policy and after that date this policy will
be expired and you will get your money back
Isnrsquot it the good choice to provide your family a protective backup system which will help
them at the time when you will no longer remain with your wife and children Majority
people think about their families a lot and purchase this policy
9
If you didnrsquot buy this policy yet then you should immediately get it because this is the only
policy which doesnrsquot take any extra charges against your paying instalments After having
term policy you will be assured about the protective life of your family
UNIT LINKED INSURANCE PLAN
Unit Linked Insurance Plan India provides highest benefits to those people who are interested
to invest in some companies or who want to purchase the units at their net asset value
This plan is just like mutual funds where several investors purchase some units in order to get
the income
Like mutual fund investors can obtain this coverage in order to purchase financial
instruments like stocks bonds securities etc
This plan is very efficient in handling your investment as well as it manages your risk profile
in fabulous manner You can get rid of major risk factors with the help of this plan which
provides you complete protection to your invested money
There are several key benefits you obtain from Unit Linked Insurance Plan which is one of
most protective life insurance policies and which ensure about the best life of you and your
family It means this plan provides you complete protection cover through which you can
spend good days of your life with your children parents and with your wife as well Unit
linked Indiarsquos plan is very simple uncomplicated and easy to understand
With the help of this plan you can better get an idea that how can you manage your capital
and how can you obtain maximum benefits out of this plan so that you would able to live
your life in better manner You should analyze the situation through which you can best
utilize your capitals over your purchased units
While having this plan you have to choose from three options ie debt equity and balanced
plan If any company doesnrsquot provide you these three options then you should consult any
other company which will provide you better opportunities
GENERAL INSURANCE
10
THEGENERALINSURANCEINDUSTRYININDIA
In India general insurance is a term used to mean all non life insurance business In other
countries terms like property casualty insurance and non life insurance are used
The history of this industry is characterized by massive reforms though the sector remains
heavily regulated Market liberalization in the industry took place in the year 2001
1THE VAST NATURE OF THE INDUSTRY
The industry meets its target market demand with products for marine insurance automobile
(which is compulsory in the country) public liability (also compulsory) homeownersrsquo
policies travel insurance etc The sector being highly regulated the public sector calls the
shots in determining the rules of delivering services in the country Typical companies
dominating the industry include
United India Insurance company
Reliance General Insurance Company (provides health insurance motor
insurance travel insurance personal accident insurance etc)and
United India Insurance Company (provides fire marine motor industrial
liability personal accident Mediclaim and Unimedicare policies amongst
others)
1 ADAPTING TO MODERN TECHNOLOGY
In general the industry has utilized state of the art information technology facilities in
delivering their services to their clients The sale of insurance policies in rural areas
has really gained from IT advancements in the industry The claim process is also
computerized allowing clients to quickly avail their claims to the company
The assessing of loss incurred in the event of fire for example is done by forensic
experts assuring the accuracy of calculation of the compensation to the claimant
11
Other adaptations include the teaming up with other industry stakeholders eg
universities in providing customized products to the clients
2 THE CHALLENGE OF THE TWENTY FIRST CENTURY
Various reforms characterize the market including the detarrification and mandatory
participation of foreign owned general insurance companies with resident companies
The twenty first century has brought a major challenge in this industry
One key challenge is the recession that is currently hitting almost all corners of the
economy of India However the general insurance sector seems to have been hit less
by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance
was the hardest hit resulting into closure of some of its branches
The governing council has however come up with various code of conduct in
response to the credit crisis One particular code of conduct is geared towards the
control of these companiesrsquo pricing patterns with the detarrification in place
INDIAS HOME INSURANCE INDUSTRY
The home insurance industry falls under the general insurance umbrella sector It is a very
popular industry in India due to the obvious reason of the inherent risks faced in India
In the paragraphs below we shall seek to explore this industry in depth focusing on its
importance the kind of policies available in the market together with policy exclusions how
the claim process is done and finally quote a couple of companies that are the driving force in
this industry
IMPORTANCEOFGETTINGTHECOVER
Your home is your most valuable asset Both the structure and the contents in them This is
where you hold memories of your family growing from stage to stage This is where you go
to when you need some peace of mind
This is also where you keep your sentimental assets When catastrophes strike you may end
up losing your home and all its valuables It is important therefore that you get your cover to
shield you against these unforeseen circumstances
12
THEPOLICYTYPESANDTHEIREXCLUSIONS
various policies exist in the market for cover against potential loss of your home and its
contents These policies range from those to cater for repair cost on the building (risks being
riots fire especially with the rise of electrical appliances in various households) replacement
of stolen items (risks being burglary theft terrorism etc) etc The various policy types are
customized to the various risks involved ie landslides earthquakes explosions fire etc
THECLAIMPROCESS
Despite many clients airing their complaints with regard to how the claim process is clogged
with bureaucracies the industry has tried to make uniform the whole procedure and ensure
that the final customer benefits In this process the first thing to consider once the insured
risk has occurred is to minimize loss as much as possible
In the event of a fire outbreak try to salvage as much as you can The next step is to inform
the police authorities especially in the event of a theft burglary etc Then inform your
provider (ensure that you had given your provider details of your property well in advance)
The provider shall send a surveyor to come and estimate the extent of the damage Finally
you need to submit your claim form to your provider
Wikipedia provides an in-depth list of service providers in this industry Some of these like
Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time
INDIAS HEALTH INSURANCE INDUSTRY
The health insurance industry a branch of the general insurance has been existent for a long
time It started in Europe as workers sickness benefits and evolved into the private sector
covering the various sectors of the economy
In India the industry has had its own share of milestones and setbacks as you may discover in
the discussion that follows
NATUREOFTHEINDUSTRY
The health insurance industry is mostly dominated by the private sector The public sector
acts as a regulatory body while providing the basic health care needed The poor find it hard
13
to access these services Generally the demand for proper healthcare far outweighs the
supply for the same
Problems in accessing the services coupled with the poor financial structure with little
government support in the form of social security has been a big challenge in the industry
However like any other service providers in these typical sectors the principal of pooling is
utilized
POLICIESINTHEMARKET
This industry has policies that cater for the individual and family The policies have been
differentiated to penetrate in the various market niches Typical policies include indemnity
insurance (this is to compensate the client for the damageloss incurred) cashless claim
facilities (this as the name suggests is to cater for the costs incurred without necessarily
paying a cash lump sum to the insured) and community based insurance
SETBACKSINTHEINDUSTRY
The main pitfalls that have been experienced in this industry have been the provider
malpractice and the limited nature of the coverage provided Medical institutions have been
quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the
claim bills
This is purely because a majority of persons have medical cover through employer schemes
Other malpractices include the failure of service providers to honour their promises and when
they do they delay the process making it hard for the claimant to recover from the loss The
other setback has been the inability to for example provide preventive healthcare policies
like for vaccinations voluntary testing etc All these are exclusions on the policies
The medical insurance industry has come in handy in times of various catastrophes like
floods earthquakes and accidents These covers have gone a long way in assisting persons to
recover from the loss and lead their individual lives as usual However a lot still needs to be
done for this industry by its stakeholders
INDIArsquoS MOTOR INSURANCE INDUSTRY
Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle
owners
14
This industry also falls under the umbrella general insurance sector where home health and
travel insurance covers fall
THEEXTENTOFTHECOVER
This cover caters for risks related to the driver the passenger and any third party involved at
the time of loss
Typical risks include both natural and man-made risks Natural risks are in the form of fire
explosions and self-ignition Man-made risks on the other hand relate to theft and burglary
etc
The personal accident policy is a compulsory policy It caters for the individual and hisher
passengers The third party legal liability caters for claims for other parties due to the loss
caused by the driverrsquos actions
NATUREOFTHECOVER
This type of cover is on the insured declared value This is a fixed value at which the client
insures his motor vehicle According to ICICI this insured declared value is calculated based
on the listing selling price as provided by the manufacturer
PLAYERSINTHEINDUSTRY
The industry is full of players that have met the industry standards while others have fallen
short of them At one time I came across a bloggerrsquos work lamenting about the customer care
and the whole claim process making observations that serious loopholes do exist in this
industry
In his writing he quoted two prominent service providers that charge premiums for the same
policy but the difference between the two premiums was too big The customer care was also
poor wasting a lot of time on the phone waiting for the call to be transferred to the right
customer care representative and finally being asked to call after a day or two
The online claim forms also placed on the providersrsquo websites kept on returning error
messages This was just one of the persons who have had a nasty experience in this industry
But judging from the comments his observations generated one can tell he is not alone
15
INDIAS TRAVEL INSURANCE INDUSTRY
The travel insurance industry comes in handy in India especially because of the enormous
traffic of visitors in and out of the country
Needless to say this cover also caters for citizens It is much easier to deal with
hospitalization bills when you are covered than when you are not should a loss occur to you
when you are in a foreign country
The industry has evolved for many years In the following discussion we shall take a critical
look at the extent of the cover the benefits for the client the exclusions and the quote
details
COVERAGE
This cover caters for among others any unexpected medical bills while on vacation any flight
accidents or delays any accidental damage to your personal effects while travelling any
accidental loss of money or important documents any passport replacements that you may
need to do in case your original passport goes missing hijacking etc The list is endless
BENEFITS
One can never overemphasize the benefits of this type of insurance Just having the peace of
mind knowing that your service provider shall come to your rescue should you have any
mishap while on your trip is reason enough to go for the cover
The recovery of important documents lost while on a trip is a welcome relief to the client
Also being able to cater for your hospitalization commitments when in a foreign country is
very much welcome
EXCLUSIONSOFTHECOVER
This kind of cover has strict exclusions to shield the provider from being manipulated into
paying for intentional losses These exclusions include any pre-existing medical conditions
any deliberate exposure by the client to the particular risk covered any loss that occurred to
16
the client while under the influence of alcohol or drug abuse etc These exclusions are usually
included in the contract and the client needs to understand them in order to avoid any
confusion in the future
DETAILSOFTHEQUOTE
The travel insurance industry has quotes to the potential client detailing the kind of
information required to be submitted before signing the contract This includes the name of
the location to where the person is travelling to the type of policy the client intends to
undertake when the client intends to terminate the contract and when the policy should start
Persons travelling for business or leisure need to assess their need for cover and then do their
homework in settling for an appropriate service provider
CHAPTER 2
17
STATEMENT OF PROBLEM
To know Market penetration of IDBI Fortis Life Insurance Company
limited at Chennai The India Insurance industry has grown at phenomenal rate Starting
as a Monopolistic Industry it has transformed into highly competitive industry it is not just
doing something right that matters but it is also about doing nothing wrong Making profit
does not only mean a large customer base but also depends on Penetration level of the
services provided to the customers and premium remittances
The Insurance companies come out with many schemes and offers to attract customers and
to make them invest in various schemes provided by these companies Most Importantly
Market Penetration of companies based on parameters like geographical coverage agency
awareness level of products and sustainability in the market based on product fundamentals is
of paramount importance as they can largely affect the market capitalisation of Insurance
companies The aim of this study would supplement this effort of the company in a small
way
HYPOTHESIS
Market penetration of IDBI Fortis Life Insurance is same throughout Chennai
CHAPTER 3
OBJECTIVES OF THE STUDY
18
For an organization to be successful they need to be equipped with the current position of
their share in the market They need to understand the new and the unidentified potential
available in the market The organization needs to understand the changing scenario taking
place in the market with respect to their business All these could be achieved only by
understanding the market sentiments
Thus through a Study to understand the current status of their Market penetration the
organization can motivate the current efforts of their sales force and efforts could be taken to
reduce the weakness complaints and also could come up with new schemes and facilities
according to the expectations of the Insurers Keeping the above view in the mind objectives
for the study are set and are given below
31 PRIMARY OBJECTIVE
To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at
Chennai
32 SECONDARY OBJECTIVE
The secondary objective of the study is to know awareness of different Insurance products
served in the market by different companies This project can also be a step in small way
towards identifying different channels through which companies can penetrate in market
33 SCOPE OF THE STUDY
The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance
is confined to Insurance Industry location Chennai during the month of March and April This has
been achieved by taking down the respondentrsquos views and responses individually by the
researcher using a Questionnaire The researcher asks the research questions in the questionnaire
to the respondent in a face-to-face fashion and records the response which is then used for the
analysis and interpretation part of the study
Once the study is through the researcher would be in a position to
advise the company about Market Penetration of IDBI Fortis in the respective areas where the
study has been undertaken The study would also help the company to find out the general
preferences factors considered by the Investors with respect to geographical presence
awareness of brand Product agency proliferation in the market customer satisfaction and
retention
19
CHAPTER 4
REVIEW OF LITERATURE
20
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
You will find several life insurance policies which are as similar as endowment policies are
Joint Life policy India also provides the same benefits but with the different features as well
This policy is purchased by couples and business partners Couples want to take the benefits
of this policy so that they would able to survive well when person would die husband or
wife
Business partners want to purchase this policy so that they would able to handle the business
in superb manner when one partner of this business dies
Itrsquos true that this policy provides utmost pleasure to you but only once when one person
passes away There are several couples who obtain maximum benefits from this policy This
policy provides you 10 years coverage as well as this policy is very much cost effective and
provides you best short term returns
Joint Life policy India provides complete protection to your mortgage If a couple has bought
any house on mortgage and after sometimes one person out of this couple is died due to
some severe reason then survived spouse will be able to handle its mortgage property with
the help of this policy
That person can easily pay the debts and will not find any difficulty in future while surviving
with the children Spouse will also get extra bonuses which would help himher to save
chunks of money which can be spent in other area of life in excellent manner
LOAN COVER TERM ASSURANCE POLICY
We are living in that era where we have to suffer many financial problems If we want to
purchase a house by our own we are unable to do so because of having less chances of
earning high
In this situation people adopt many loan facilities through which they fulfil their basic needs
like purchasing a home and get rid of paying rents
But if you think that you can easily get a house by having house loan then you are not taking
this matter seriously because house financing companies have some rules and regulations
which have to be followed in time otherwise you are unable to get your own house
8
If you are tired of attending the calls of HFC then you donrsquot need to worry when you have
full support of this insurance policy which is one of effective life insurance policies This
coverage provides you opportunity to reduce your loan instalments if you keep on paying the
insurance policyrsquos monthly premiums
HFC is linked with the Cover Term Assurance Policy of India so that interested individuals
would able to get rid of big problem of their life When HFC and insurance company link up
together they provide maximum relaxation to the individual to pay his home loan
After having the coverage you not only can get your own house but also you can get rid of
all those headaches which you were having due to non-paying instalments When you go
through any financial situation HFC doesnrsquot care about your painful situation
TERM LIFE POLICY
You can imagine better that when one day you will be passed away and will be gone away
from this world how your family will survive without you
They wonrsquot have enough money to live Your children have to leave their education Your
wife has to go for double shifting work Every schedule and facility of your familyrsquos life
would be disturbed
This term policy is considered to be a pure insurance protection because it never leaves you
empty hands at the time when you need money There are lots of advantages which you can
obtain from this policy First one is it provides complete protection to your family after your
death
Second one is you would never find any risk while having this policy and can pay instalments
in very nice manner Third one is you donrsquot have to pay instalment for longer period
There is a time duration which is specified for this policy and after that date this policy will
be expired and you will get your money back
Isnrsquot it the good choice to provide your family a protective backup system which will help
them at the time when you will no longer remain with your wife and children Majority
people think about their families a lot and purchase this policy
9
If you didnrsquot buy this policy yet then you should immediately get it because this is the only
policy which doesnrsquot take any extra charges against your paying instalments After having
term policy you will be assured about the protective life of your family
UNIT LINKED INSURANCE PLAN
Unit Linked Insurance Plan India provides highest benefits to those people who are interested
to invest in some companies or who want to purchase the units at their net asset value
This plan is just like mutual funds where several investors purchase some units in order to get
the income
Like mutual fund investors can obtain this coverage in order to purchase financial
instruments like stocks bonds securities etc
This plan is very efficient in handling your investment as well as it manages your risk profile
in fabulous manner You can get rid of major risk factors with the help of this plan which
provides you complete protection to your invested money
There are several key benefits you obtain from Unit Linked Insurance Plan which is one of
most protective life insurance policies and which ensure about the best life of you and your
family It means this plan provides you complete protection cover through which you can
spend good days of your life with your children parents and with your wife as well Unit
linked Indiarsquos plan is very simple uncomplicated and easy to understand
With the help of this plan you can better get an idea that how can you manage your capital
and how can you obtain maximum benefits out of this plan so that you would able to live
your life in better manner You should analyze the situation through which you can best
utilize your capitals over your purchased units
While having this plan you have to choose from three options ie debt equity and balanced
plan If any company doesnrsquot provide you these three options then you should consult any
other company which will provide you better opportunities
GENERAL INSURANCE
10
THEGENERALINSURANCEINDUSTRYININDIA
In India general insurance is a term used to mean all non life insurance business In other
countries terms like property casualty insurance and non life insurance are used
The history of this industry is characterized by massive reforms though the sector remains
heavily regulated Market liberalization in the industry took place in the year 2001
1THE VAST NATURE OF THE INDUSTRY
The industry meets its target market demand with products for marine insurance automobile
(which is compulsory in the country) public liability (also compulsory) homeownersrsquo
policies travel insurance etc The sector being highly regulated the public sector calls the
shots in determining the rules of delivering services in the country Typical companies
dominating the industry include
United India Insurance company
Reliance General Insurance Company (provides health insurance motor
insurance travel insurance personal accident insurance etc)and
United India Insurance Company (provides fire marine motor industrial
liability personal accident Mediclaim and Unimedicare policies amongst
others)
1 ADAPTING TO MODERN TECHNOLOGY
In general the industry has utilized state of the art information technology facilities in
delivering their services to their clients The sale of insurance policies in rural areas
has really gained from IT advancements in the industry The claim process is also
computerized allowing clients to quickly avail their claims to the company
The assessing of loss incurred in the event of fire for example is done by forensic
experts assuring the accuracy of calculation of the compensation to the claimant
11
Other adaptations include the teaming up with other industry stakeholders eg
universities in providing customized products to the clients
2 THE CHALLENGE OF THE TWENTY FIRST CENTURY
Various reforms characterize the market including the detarrification and mandatory
participation of foreign owned general insurance companies with resident companies
The twenty first century has brought a major challenge in this industry
One key challenge is the recession that is currently hitting almost all corners of the
economy of India However the general insurance sector seems to have been hit less
by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance
was the hardest hit resulting into closure of some of its branches
The governing council has however come up with various code of conduct in
response to the credit crisis One particular code of conduct is geared towards the
control of these companiesrsquo pricing patterns with the detarrification in place
INDIAS HOME INSURANCE INDUSTRY
The home insurance industry falls under the general insurance umbrella sector It is a very
popular industry in India due to the obvious reason of the inherent risks faced in India
In the paragraphs below we shall seek to explore this industry in depth focusing on its
importance the kind of policies available in the market together with policy exclusions how
the claim process is done and finally quote a couple of companies that are the driving force in
this industry
IMPORTANCEOFGETTINGTHECOVER
Your home is your most valuable asset Both the structure and the contents in them This is
where you hold memories of your family growing from stage to stage This is where you go
to when you need some peace of mind
This is also where you keep your sentimental assets When catastrophes strike you may end
up losing your home and all its valuables It is important therefore that you get your cover to
shield you against these unforeseen circumstances
12
THEPOLICYTYPESANDTHEIREXCLUSIONS
various policies exist in the market for cover against potential loss of your home and its
contents These policies range from those to cater for repair cost on the building (risks being
riots fire especially with the rise of electrical appliances in various households) replacement
of stolen items (risks being burglary theft terrorism etc) etc The various policy types are
customized to the various risks involved ie landslides earthquakes explosions fire etc
THECLAIMPROCESS
Despite many clients airing their complaints with regard to how the claim process is clogged
with bureaucracies the industry has tried to make uniform the whole procedure and ensure
that the final customer benefits In this process the first thing to consider once the insured
risk has occurred is to minimize loss as much as possible
In the event of a fire outbreak try to salvage as much as you can The next step is to inform
the police authorities especially in the event of a theft burglary etc Then inform your
provider (ensure that you had given your provider details of your property well in advance)
The provider shall send a surveyor to come and estimate the extent of the damage Finally
you need to submit your claim form to your provider
Wikipedia provides an in-depth list of service providers in this industry Some of these like
Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time
INDIAS HEALTH INSURANCE INDUSTRY
The health insurance industry a branch of the general insurance has been existent for a long
time It started in Europe as workers sickness benefits and evolved into the private sector
covering the various sectors of the economy
In India the industry has had its own share of milestones and setbacks as you may discover in
the discussion that follows
NATUREOFTHEINDUSTRY
The health insurance industry is mostly dominated by the private sector The public sector
acts as a regulatory body while providing the basic health care needed The poor find it hard
13
to access these services Generally the demand for proper healthcare far outweighs the
supply for the same
Problems in accessing the services coupled with the poor financial structure with little
government support in the form of social security has been a big challenge in the industry
However like any other service providers in these typical sectors the principal of pooling is
utilized
POLICIESINTHEMARKET
This industry has policies that cater for the individual and family The policies have been
differentiated to penetrate in the various market niches Typical policies include indemnity
insurance (this is to compensate the client for the damageloss incurred) cashless claim
facilities (this as the name suggests is to cater for the costs incurred without necessarily
paying a cash lump sum to the insured) and community based insurance
SETBACKSINTHEINDUSTRY
The main pitfalls that have been experienced in this industry have been the provider
malpractice and the limited nature of the coverage provided Medical institutions have been
quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the
claim bills
This is purely because a majority of persons have medical cover through employer schemes
Other malpractices include the failure of service providers to honour their promises and when
they do they delay the process making it hard for the claimant to recover from the loss The
other setback has been the inability to for example provide preventive healthcare policies
like for vaccinations voluntary testing etc All these are exclusions on the policies
The medical insurance industry has come in handy in times of various catastrophes like
floods earthquakes and accidents These covers have gone a long way in assisting persons to
recover from the loss and lead their individual lives as usual However a lot still needs to be
done for this industry by its stakeholders
INDIArsquoS MOTOR INSURANCE INDUSTRY
Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle
owners
14
This industry also falls under the umbrella general insurance sector where home health and
travel insurance covers fall
THEEXTENTOFTHECOVER
This cover caters for risks related to the driver the passenger and any third party involved at
the time of loss
Typical risks include both natural and man-made risks Natural risks are in the form of fire
explosions and self-ignition Man-made risks on the other hand relate to theft and burglary
etc
The personal accident policy is a compulsory policy It caters for the individual and hisher
passengers The third party legal liability caters for claims for other parties due to the loss
caused by the driverrsquos actions
NATUREOFTHECOVER
This type of cover is on the insured declared value This is a fixed value at which the client
insures his motor vehicle According to ICICI this insured declared value is calculated based
on the listing selling price as provided by the manufacturer
PLAYERSINTHEINDUSTRY
The industry is full of players that have met the industry standards while others have fallen
short of them At one time I came across a bloggerrsquos work lamenting about the customer care
and the whole claim process making observations that serious loopholes do exist in this
industry
In his writing he quoted two prominent service providers that charge premiums for the same
policy but the difference between the two premiums was too big The customer care was also
poor wasting a lot of time on the phone waiting for the call to be transferred to the right
customer care representative and finally being asked to call after a day or two
The online claim forms also placed on the providersrsquo websites kept on returning error
messages This was just one of the persons who have had a nasty experience in this industry
But judging from the comments his observations generated one can tell he is not alone
15
INDIAS TRAVEL INSURANCE INDUSTRY
The travel insurance industry comes in handy in India especially because of the enormous
traffic of visitors in and out of the country
Needless to say this cover also caters for citizens It is much easier to deal with
hospitalization bills when you are covered than when you are not should a loss occur to you
when you are in a foreign country
The industry has evolved for many years In the following discussion we shall take a critical
look at the extent of the cover the benefits for the client the exclusions and the quote
details
COVERAGE
This cover caters for among others any unexpected medical bills while on vacation any flight
accidents or delays any accidental damage to your personal effects while travelling any
accidental loss of money or important documents any passport replacements that you may
need to do in case your original passport goes missing hijacking etc The list is endless
BENEFITS
One can never overemphasize the benefits of this type of insurance Just having the peace of
mind knowing that your service provider shall come to your rescue should you have any
mishap while on your trip is reason enough to go for the cover
The recovery of important documents lost while on a trip is a welcome relief to the client
Also being able to cater for your hospitalization commitments when in a foreign country is
very much welcome
EXCLUSIONSOFTHECOVER
This kind of cover has strict exclusions to shield the provider from being manipulated into
paying for intentional losses These exclusions include any pre-existing medical conditions
any deliberate exposure by the client to the particular risk covered any loss that occurred to
16
the client while under the influence of alcohol or drug abuse etc These exclusions are usually
included in the contract and the client needs to understand them in order to avoid any
confusion in the future
DETAILSOFTHEQUOTE
The travel insurance industry has quotes to the potential client detailing the kind of
information required to be submitted before signing the contract This includes the name of
the location to where the person is travelling to the type of policy the client intends to
undertake when the client intends to terminate the contract and when the policy should start
Persons travelling for business or leisure need to assess their need for cover and then do their
homework in settling for an appropriate service provider
CHAPTER 2
17
STATEMENT OF PROBLEM
To know Market penetration of IDBI Fortis Life Insurance Company
limited at Chennai The India Insurance industry has grown at phenomenal rate Starting
as a Monopolistic Industry it has transformed into highly competitive industry it is not just
doing something right that matters but it is also about doing nothing wrong Making profit
does not only mean a large customer base but also depends on Penetration level of the
services provided to the customers and premium remittances
The Insurance companies come out with many schemes and offers to attract customers and
to make them invest in various schemes provided by these companies Most Importantly
Market Penetration of companies based on parameters like geographical coverage agency
awareness level of products and sustainability in the market based on product fundamentals is
of paramount importance as they can largely affect the market capitalisation of Insurance
companies The aim of this study would supplement this effort of the company in a small
way
HYPOTHESIS
Market penetration of IDBI Fortis Life Insurance is same throughout Chennai
CHAPTER 3
OBJECTIVES OF THE STUDY
18
For an organization to be successful they need to be equipped with the current position of
their share in the market They need to understand the new and the unidentified potential
available in the market The organization needs to understand the changing scenario taking
place in the market with respect to their business All these could be achieved only by
understanding the market sentiments
Thus through a Study to understand the current status of their Market penetration the
organization can motivate the current efforts of their sales force and efforts could be taken to
reduce the weakness complaints and also could come up with new schemes and facilities
according to the expectations of the Insurers Keeping the above view in the mind objectives
for the study are set and are given below
31 PRIMARY OBJECTIVE
To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at
Chennai
32 SECONDARY OBJECTIVE
The secondary objective of the study is to know awareness of different Insurance products
served in the market by different companies This project can also be a step in small way
towards identifying different channels through which companies can penetrate in market
33 SCOPE OF THE STUDY
The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance
is confined to Insurance Industry location Chennai during the month of March and April This has
been achieved by taking down the respondentrsquos views and responses individually by the
researcher using a Questionnaire The researcher asks the research questions in the questionnaire
to the respondent in a face-to-face fashion and records the response which is then used for the
analysis and interpretation part of the study
Once the study is through the researcher would be in a position to
advise the company about Market Penetration of IDBI Fortis in the respective areas where the
study has been undertaken The study would also help the company to find out the general
preferences factors considered by the Investors with respect to geographical presence
awareness of brand Product agency proliferation in the market customer satisfaction and
retention
19
CHAPTER 4
REVIEW OF LITERATURE
20
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
If you are tired of attending the calls of HFC then you donrsquot need to worry when you have
full support of this insurance policy which is one of effective life insurance policies This
coverage provides you opportunity to reduce your loan instalments if you keep on paying the
insurance policyrsquos monthly premiums
HFC is linked with the Cover Term Assurance Policy of India so that interested individuals
would able to get rid of big problem of their life When HFC and insurance company link up
together they provide maximum relaxation to the individual to pay his home loan
After having the coverage you not only can get your own house but also you can get rid of
all those headaches which you were having due to non-paying instalments When you go
through any financial situation HFC doesnrsquot care about your painful situation
TERM LIFE POLICY
You can imagine better that when one day you will be passed away and will be gone away
from this world how your family will survive without you
They wonrsquot have enough money to live Your children have to leave their education Your
wife has to go for double shifting work Every schedule and facility of your familyrsquos life
would be disturbed
This term policy is considered to be a pure insurance protection because it never leaves you
empty hands at the time when you need money There are lots of advantages which you can
obtain from this policy First one is it provides complete protection to your family after your
death
Second one is you would never find any risk while having this policy and can pay instalments
in very nice manner Third one is you donrsquot have to pay instalment for longer period
There is a time duration which is specified for this policy and after that date this policy will
be expired and you will get your money back
Isnrsquot it the good choice to provide your family a protective backup system which will help
them at the time when you will no longer remain with your wife and children Majority
people think about their families a lot and purchase this policy
9
If you didnrsquot buy this policy yet then you should immediately get it because this is the only
policy which doesnrsquot take any extra charges against your paying instalments After having
term policy you will be assured about the protective life of your family
UNIT LINKED INSURANCE PLAN
Unit Linked Insurance Plan India provides highest benefits to those people who are interested
to invest in some companies or who want to purchase the units at their net asset value
This plan is just like mutual funds where several investors purchase some units in order to get
the income
Like mutual fund investors can obtain this coverage in order to purchase financial
instruments like stocks bonds securities etc
This plan is very efficient in handling your investment as well as it manages your risk profile
in fabulous manner You can get rid of major risk factors with the help of this plan which
provides you complete protection to your invested money
There are several key benefits you obtain from Unit Linked Insurance Plan which is one of
most protective life insurance policies and which ensure about the best life of you and your
family It means this plan provides you complete protection cover through which you can
spend good days of your life with your children parents and with your wife as well Unit
linked Indiarsquos plan is very simple uncomplicated and easy to understand
With the help of this plan you can better get an idea that how can you manage your capital
and how can you obtain maximum benefits out of this plan so that you would able to live
your life in better manner You should analyze the situation through which you can best
utilize your capitals over your purchased units
While having this plan you have to choose from three options ie debt equity and balanced
plan If any company doesnrsquot provide you these three options then you should consult any
other company which will provide you better opportunities
GENERAL INSURANCE
10
THEGENERALINSURANCEINDUSTRYININDIA
In India general insurance is a term used to mean all non life insurance business In other
countries terms like property casualty insurance and non life insurance are used
The history of this industry is characterized by massive reforms though the sector remains
heavily regulated Market liberalization in the industry took place in the year 2001
1THE VAST NATURE OF THE INDUSTRY
The industry meets its target market demand with products for marine insurance automobile
(which is compulsory in the country) public liability (also compulsory) homeownersrsquo
policies travel insurance etc The sector being highly regulated the public sector calls the
shots in determining the rules of delivering services in the country Typical companies
dominating the industry include
United India Insurance company
Reliance General Insurance Company (provides health insurance motor
insurance travel insurance personal accident insurance etc)and
United India Insurance Company (provides fire marine motor industrial
liability personal accident Mediclaim and Unimedicare policies amongst
others)
1 ADAPTING TO MODERN TECHNOLOGY
In general the industry has utilized state of the art information technology facilities in
delivering their services to their clients The sale of insurance policies in rural areas
has really gained from IT advancements in the industry The claim process is also
computerized allowing clients to quickly avail their claims to the company
The assessing of loss incurred in the event of fire for example is done by forensic
experts assuring the accuracy of calculation of the compensation to the claimant
11
Other adaptations include the teaming up with other industry stakeholders eg
universities in providing customized products to the clients
2 THE CHALLENGE OF THE TWENTY FIRST CENTURY
Various reforms characterize the market including the detarrification and mandatory
participation of foreign owned general insurance companies with resident companies
The twenty first century has brought a major challenge in this industry
One key challenge is the recession that is currently hitting almost all corners of the
economy of India However the general insurance sector seems to have been hit less
by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance
was the hardest hit resulting into closure of some of its branches
The governing council has however come up with various code of conduct in
response to the credit crisis One particular code of conduct is geared towards the
control of these companiesrsquo pricing patterns with the detarrification in place
INDIAS HOME INSURANCE INDUSTRY
The home insurance industry falls under the general insurance umbrella sector It is a very
popular industry in India due to the obvious reason of the inherent risks faced in India
In the paragraphs below we shall seek to explore this industry in depth focusing on its
importance the kind of policies available in the market together with policy exclusions how
the claim process is done and finally quote a couple of companies that are the driving force in
this industry
IMPORTANCEOFGETTINGTHECOVER
Your home is your most valuable asset Both the structure and the contents in them This is
where you hold memories of your family growing from stage to stage This is where you go
to when you need some peace of mind
This is also where you keep your sentimental assets When catastrophes strike you may end
up losing your home and all its valuables It is important therefore that you get your cover to
shield you against these unforeseen circumstances
12
THEPOLICYTYPESANDTHEIREXCLUSIONS
various policies exist in the market for cover against potential loss of your home and its
contents These policies range from those to cater for repair cost on the building (risks being
riots fire especially with the rise of electrical appliances in various households) replacement
of stolen items (risks being burglary theft terrorism etc) etc The various policy types are
customized to the various risks involved ie landslides earthquakes explosions fire etc
THECLAIMPROCESS
Despite many clients airing their complaints with regard to how the claim process is clogged
with bureaucracies the industry has tried to make uniform the whole procedure and ensure
that the final customer benefits In this process the first thing to consider once the insured
risk has occurred is to minimize loss as much as possible
In the event of a fire outbreak try to salvage as much as you can The next step is to inform
the police authorities especially in the event of a theft burglary etc Then inform your
provider (ensure that you had given your provider details of your property well in advance)
The provider shall send a surveyor to come and estimate the extent of the damage Finally
you need to submit your claim form to your provider
Wikipedia provides an in-depth list of service providers in this industry Some of these like
Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time
INDIAS HEALTH INSURANCE INDUSTRY
The health insurance industry a branch of the general insurance has been existent for a long
time It started in Europe as workers sickness benefits and evolved into the private sector
covering the various sectors of the economy
In India the industry has had its own share of milestones and setbacks as you may discover in
the discussion that follows
NATUREOFTHEINDUSTRY
The health insurance industry is mostly dominated by the private sector The public sector
acts as a regulatory body while providing the basic health care needed The poor find it hard
13
to access these services Generally the demand for proper healthcare far outweighs the
supply for the same
Problems in accessing the services coupled with the poor financial structure with little
government support in the form of social security has been a big challenge in the industry
However like any other service providers in these typical sectors the principal of pooling is
utilized
POLICIESINTHEMARKET
This industry has policies that cater for the individual and family The policies have been
differentiated to penetrate in the various market niches Typical policies include indemnity
insurance (this is to compensate the client for the damageloss incurred) cashless claim
facilities (this as the name suggests is to cater for the costs incurred without necessarily
paying a cash lump sum to the insured) and community based insurance
SETBACKSINTHEINDUSTRY
The main pitfalls that have been experienced in this industry have been the provider
malpractice and the limited nature of the coverage provided Medical institutions have been
quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the
claim bills
This is purely because a majority of persons have medical cover through employer schemes
Other malpractices include the failure of service providers to honour their promises and when
they do they delay the process making it hard for the claimant to recover from the loss The
other setback has been the inability to for example provide preventive healthcare policies
like for vaccinations voluntary testing etc All these are exclusions on the policies
The medical insurance industry has come in handy in times of various catastrophes like
floods earthquakes and accidents These covers have gone a long way in assisting persons to
recover from the loss and lead their individual lives as usual However a lot still needs to be
done for this industry by its stakeholders
INDIArsquoS MOTOR INSURANCE INDUSTRY
Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle
owners
14
This industry also falls under the umbrella general insurance sector where home health and
travel insurance covers fall
THEEXTENTOFTHECOVER
This cover caters for risks related to the driver the passenger and any third party involved at
the time of loss
Typical risks include both natural and man-made risks Natural risks are in the form of fire
explosions and self-ignition Man-made risks on the other hand relate to theft and burglary
etc
The personal accident policy is a compulsory policy It caters for the individual and hisher
passengers The third party legal liability caters for claims for other parties due to the loss
caused by the driverrsquos actions
NATUREOFTHECOVER
This type of cover is on the insured declared value This is a fixed value at which the client
insures his motor vehicle According to ICICI this insured declared value is calculated based
on the listing selling price as provided by the manufacturer
PLAYERSINTHEINDUSTRY
The industry is full of players that have met the industry standards while others have fallen
short of them At one time I came across a bloggerrsquos work lamenting about the customer care
and the whole claim process making observations that serious loopholes do exist in this
industry
In his writing he quoted two prominent service providers that charge premiums for the same
policy but the difference between the two premiums was too big The customer care was also
poor wasting a lot of time on the phone waiting for the call to be transferred to the right
customer care representative and finally being asked to call after a day or two
The online claim forms also placed on the providersrsquo websites kept on returning error
messages This was just one of the persons who have had a nasty experience in this industry
But judging from the comments his observations generated one can tell he is not alone
15
INDIAS TRAVEL INSURANCE INDUSTRY
The travel insurance industry comes in handy in India especially because of the enormous
traffic of visitors in and out of the country
Needless to say this cover also caters for citizens It is much easier to deal with
hospitalization bills when you are covered than when you are not should a loss occur to you
when you are in a foreign country
The industry has evolved for many years In the following discussion we shall take a critical
look at the extent of the cover the benefits for the client the exclusions and the quote
details
COVERAGE
This cover caters for among others any unexpected medical bills while on vacation any flight
accidents or delays any accidental damage to your personal effects while travelling any
accidental loss of money or important documents any passport replacements that you may
need to do in case your original passport goes missing hijacking etc The list is endless
BENEFITS
One can never overemphasize the benefits of this type of insurance Just having the peace of
mind knowing that your service provider shall come to your rescue should you have any
mishap while on your trip is reason enough to go for the cover
The recovery of important documents lost while on a trip is a welcome relief to the client
Also being able to cater for your hospitalization commitments when in a foreign country is
very much welcome
EXCLUSIONSOFTHECOVER
This kind of cover has strict exclusions to shield the provider from being manipulated into
paying for intentional losses These exclusions include any pre-existing medical conditions
any deliberate exposure by the client to the particular risk covered any loss that occurred to
16
the client while under the influence of alcohol or drug abuse etc These exclusions are usually
included in the contract and the client needs to understand them in order to avoid any
confusion in the future
DETAILSOFTHEQUOTE
The travel insurance industry has quotes to the potential client detailing the kind of
information required to be submitted before signing the contract This includes the name of
the location to where the person is travelling to the type of policy the client intends to
undertake when the client intends to terminate the contract and when the policy should start
Persons travelling for business or leisure need to assess their need for cover and then do their
homework in settling for an appropriate service provider
CHAPTER 2
17
STATEMENT OF PROBLEM
To know Market penetration of IDBI Fortis Life Insurance Company
limited at Chennai The India Insurance industry has grown at phenomenal rate Starting
as a Monopolistic Industry it has transformed into highly competitive industry it is not just
doing something right that matters but it is also about doing nothing wrong Making profit
does not only mean a large customer base but also depends on Penetration level of the
services provided to the customers and premium remittances
The Insurance companies come out with many schemes and offers to attract customers and
to make them invest in various schemes provided by these companies Most Importantly
Market Penetration of companies based on parameters like geographical coverage agency
awareness level of products and sustainability in the market based on product fundamentals is
of paramount importance as they can largely affect the market capitalisation of Insurance
companies The aim of this study would supplement this effort of the company in a small
way
HYPOTHESIS
Market penetration of IDBI Fortis Life Insurance is same throughout Chennai
CHAPTER 3
OBJECTIVES OF THE STUDY
18
For an organization to be successful they need to be equipped with the current position of
their share in the market They need to understand the new and the unidentified potential
available in the market The organization needs to understand the changing scenario taking
place in the market with respect to their business All these could be achieved only by
understanding the market sentiments
Thus through a Study to understand the current status of their Market penetration the
organization can motivate the current efforts of their sales force and efforts could be taken to
reduce the weakness complaints and also could come up with new schemes and facilities
according to the expectations of the Insurers Keeping the above view in the mind objectives
for the study are set and are given below
31 PRIMARY OBJECTIVE
To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at
Chennai
32 SECONDARY OBJECTIVE
The secondary objective of the study is to know awareness of different Insurance products
served in the market by different companies This project can also be a step in small way
towards identifying different channels through which companies can penetrate in market
33 SCOPE OF THE STUDY
The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance
is confined to Insurance Industry location Chennai during the month of March and April This has
been achieved by taking down the respondentrsquos views and responses individually by the
researcher using a Questionnaire The researcher asks the research questions in the questionnaire
to the respondent in a face-to-face fashion and records the response which is then used for the
analysis and interpretation part of the study
Once the study is through the researcher would be in a position to
advise the company about Market Penetration of IDBI Fortis in the respective areas where the
study has been undertaken The study would also help the company to find out the general
preferences factors considered by the Investors with respect to geographical presence
awareness of brand Product agency proliferation in the market customer satisfaction and
retention
19
CHAPTER 4
REVIEW OF LITERATURE
20
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
If you didnrsquot buy this policy yet then you should immediately get it because this is the only
policy which doesnrsquot take any extra charges against your paying instalments After having
term policy you will be assured about the protective life of your family
UNIT LINKED INSURANCE PLAN
Unit Linked Insurance Plan India provides highest benefits to those people who are interested
to invest in some companies or who want to purchase the units at their net asset value
This plan is just like mutual funds where several investors purchase some units in order to get
the income
Like mutual fund investors can obtain this coverage in order to purchase financial
instruments like stocks bonds securities etc
This plan is very efficient in handling your investment as well as it manages your risk profile
in fabulous manner You can get rid of major risk factors with the help of this plan which
provides you complete protection to your invested money
There are several key benefits you obtain from Unit Linked Insurance Plan which is one of
most protective life insurance policies and which ensure about the best life of you and your
family It means this plan provides you complete protection cover through which you can
spend good days of your life with your children parents and with your wife as well Unit
linked Indiarsquos plan is very simple uncomplicated and easy to understand
With the help of this plan you can better get an idea that how can you manage your capital
and how can you obtain maximum benefits out of this plan so that you would able to live
your life in better manner You should analyze the situation through which you can best
utilize your capitals over your purchased units
While having this plan you have to choose from three options ie debt equity and balanced
plan If any company doesnrsquot provide you these three options then you should consult any
other company which will provide you better opportunities
GENERAL INSURANCE
10
THEGENERALINSURANCEINDUSTRYININDIA
In India general insurance is a term used to mean all non life insurance business In other
countries terms like property casualty insurance and non life insurance are used
The history of this industry is characterized by massive reforms though the sector remains
heavily regulated Market liberalization in the industry took place in the year 2001
1THE VAST NATURE OF THE INDUSTRY
The industry meets its target market demand with products for marine insurance automobile
(which is compulsory in the country) public liability (also compulsory) homeownersrsquo
policies travel insurance etc The sector being highly regulated the public sector calls the
shots in determining the rules of delivering services in the country Typical companies
dominating the industry include
United India Insurance company
Reliance General Insurance Company (provides health insurance motor
insurance travel insurance personal accident insurance etc)and
United India Insurance Company (provides fire marine motor industrial
liability personal accident Mediclaim and Unimedicare policies amongst
others)
1 ADAPTING TO MODERN TECHNOLOGY
In general the industry has utilized state of the art information technology facilities in
delivering their services to their clients The sale of insurance policies in rural areas
has really gained from IT advancements in the industry The claim process is also
computerized allowing clients to quickly avail their claims to the company
The assessing of loss incurred in the event of fire for example is done by forensic
experts assuring the accuracy of calculation of the compensation to the claimant
11
Other adaptations include the teaming up with other industry stakeholders eg
universities in providing customized products to the clients
2 THE CHALLENGE OF THE TWENTY FIRST CENTURY
Various reforms characterize the market including the detarrification and mandatory
participation of foreign owned general insurance companies with resident companies
The twenty first century has brought a major challenge in this industry
One key challenge is the recession that is currently hitting almost all corners of the
economy of India However the general insurance sector seems to have been hit less
by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance
was the hardest hit resulting into closure of some of its branches
The governing council has however come up with various code of conduct in
response to the credit crisis One particular code of conduct is geared towards the
control of these companiesrsquo pricing patterns with the detarrification in place
INDIAS HOME INSURANCE INDUSTRY
The home insurance industry falls under the general insurance umbrella sector It is a very
popular industry in India due to the obvious reason of the inherent risks faced in India
In the paragraphs below we shall seek to explore this industry in depth focusing on its
importance the kind of policies available in the market together with policy exclusions how
the claim process is done and finally quote a couple of companies that are the driving force in
this industry
IMPORTANCEOFGETTINGTHECOVER
Your home is your most valuable asset Both the structure and the contents in them This is
where you hold memories of your family growing from stage to stage This is where you go
to when you need some peace of mind
This is also where you keep your sentimental assets When catastrophes strike you may end
up losing your home and all its valuables It is important therefore that you get your cover to
shield you against these unforeseen circumstances
12
THEPOLICYTYPESANDTHEIREXCLUSIONS
various policies exist in the market for cover against potential loss of your home and its
contents These policies range from those to cater for repair cost on the building (risks being
riots fire especially with the rise of electrical appliances in various households) replacement
of stolen items (risks being burglary theft terrorism etc) etc The various policy types are
customized to the various risks involved ie landslides earthquakes explosions fire etc
THECLAIMPROCESS
Despite many clients airing their complaints with regard to how the claim process is clogged
with bureaucracies the industry has tried to make uniform the whole procedure and ensure
that the final customer benefits In this process the first thing to consider once the insured
risk has occurred is to minimize loss as much as possible
In the event of a fire outbreak try to salvage as much as you can The next step is to inform
the police authorities especially in the event of a theft burglary etc Then inform your
provider (ensure that you had given your provider details of your property well in advance)
The provider shall send a surveyor to come and estimate the extent of the damage Finally
you need to submit your claim form to your provider
Wikipedia provides an in-depth list of service providers in this industry Some of these like
Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time
INDIAS HEALTH INSURANCE INDUSTRY
The health insurance industry a branch of the general insurance has been existent for a long
time It started in Europe as workers sickness benefits and evolved into the private sector
covering the various sectors of the economy
In India the industry has had its own share of milestones and setbacks as you may discover in
the discussion that follows
NATUREOFTHEINDUSTRY
The health insurance industry is mostly dominated by the private sector The public sector
acts as a regulatory body while providing the basic health care needed The poor find it hard
13
to access these services Generally the demand for proper healthcare far outweighs the
supply for the same
Problems in accessing the services coupled with the poor financial structure with little
government support in the form of social security has been a big challenge in the industry
However like any other service providers in these typical sectors the principal of pooling is
utilized
POLICIESINTHEMARKET
This industry has policies that cater for the individual and family The policies have been
differentiated to penetrate in the various market niches Typical policies include indemnity
insurance (this is to compensate the client for the damageloss incurred) cashless claim
facilities (this as the name suggests is to cater for the costs incurred without necessarily
paying a cash lump sum to the insured) and community based insurance
SETBACKSINTHEINDUSTRY
The main pitfalls that have been experienced in this industry have been the provider
malpractice and the limited nature of the coverage provided Medical institutions have been
quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the
claim bills
This is purely because a majority of persons have medical cover through employer schemes
Other malpractices include the failure of service providers to honour their promises and when
they do they delay the process making it hard for the claimant to recover from the loss The
other setback has been the inability to for example provide preventive healthcare policies
like for vaccinations voluntary testing etc All these are exclusions on the policies
The medical insurance industry has come in handy in times of various catastrophes like
floods earthquakes and accidents These covers have gone a long way in assisting persons to
recover from the loss and lead their individual lives as usual However a lot still needs to be
done for this industry by its stakeholders
INDIArsquoS MOTOR INSURANCE INDUSTRY
Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle
owners
14
This industry also falls under the umbrella general insurance sector where home health and
travel insurance covers fall
THEEXTENTOFTHECOVER
This cover caters for risks related to the driver the passenger and any third party involved at
the time of loss
Typical risks include both natural and man-made risks Natural risks are in the form of fire
explosions and self-ignition Man-made risks on the other hand relate to theft and burglary
etc
The personal accident policy is a compulsory policy It caters for the individual and hisher
passengers The third party legal liability caters for claims for other parties due to the loss
caused by the driverrsquos actions
NATUREOFTHECOVER
This type of cover is on the insured declared value This is a fixed value at which the client
insures his motor vehicle According to ICICI this insured declared value is calculated based
on the listing selling price as provided by the manufacturer
PLAYERSINTHEINDUSTRY
The industry is full of players that have met the industry standards while others have fallen
short of them At one time I came across a bloggerrsquos work lamenting about the customer care
and the whole claim process making observations that serious loopholes do exist in this
industry
In his writing he quoted two prominent service providers that charge premiums for the same
policy but the difference between the two premiums was too big The customer care was also
poor wasting a lot of time on the phone waiting for the call to be transferred to the right
customer care representative and finally being asked to call after a day or two
The online claim forms also placed on the providersrsquo websites kept on returning error
messages This was just one of the persons who have had a nasty experience in this industry
But judging from the comments his observations generated one can tell he is not alone
15
INDIAS TRAVEL INSURANCE INDUSTRY
The travel insurance industry comes in handy in India especially because of the enormous
traffic of visitors in and out of the country
Needless to say this cover also caters for citizens It is much easier to deal with
hospitalization bills when you are covered than when you are not should a loss occur to you
when you are in a foreign country
The industry has evolved for many years In the following discussion we shall take a critical
look at the extent of the cover the benefits for the client the exclusions and the quote
details
COVERAGE
This cover caters for among others any unexpected medical bills while on vacation any flight
accidents or delays any accidental damage to your personal effects while travelling any
accidental loss of money or important documents any passport replacements that you may
need to do in case your original passport goes missing hijacking etc The list is endless
BENEFITS
One can never overemphasize the benefits of this type of insurance Just having the peace of
mind knowing that your service provider shall come to your rescue should you have any
mishap while on your trip is reason enough to go for the cover
The recovery of important documents lost while on a trip is a welcome relief to the client
Also being able to cater for your hospitalization commitments when in a foreign country is
very much welcome
EXCLUSIONSOFTHECOVER
This kind of cover has strict exclusions to shield the provider from being manipulated into
paying for intentional losses These exclusions include any pre-existing medical conditions
any deliberate exposure by the client to the particular risk covered any loss that occurred to
16
the client while under the influence of alcohol or drug abuse etc These exclusions are usually
included in the contract and the client needs to understand them in order to avoid any
confusion in the future
DETAILSOFTHEQUOTE
The travel insurance industry has quotes to the potential client detailing the kind of
information required to be submitted before signing the contract This includes the name of
the location to where the person is travelling to the type of policy the client intends to
undertake when the client intends to terminate the contract and when the policy should start
Persons travelling for business or leisure need to assess their need for cover and then do their
homework in settling for an appropriate service provider
CHAPTER 2
17
STATEMENT OF PROBLEM
To know Market penetration of IDBI Fortis Life Insurance Company
limited at Chennai The India Insurance industry has grown at phenomenal rate Starting
as a Monopolistic Industry it has transformed into highly competitive industry it is not just
doing something right that matters but it is also about doing nothing wrong Making profit
does not only mean a large customer base but also depends on Penetration level of the
services provided to the customers and premium remittances
The Insurance companies come out with many schemes and offers to attract customers and
to make them invest in various schemes provided by these companies Most Importantly
Market Penetration of companies based on parameters like geographical coverage agency
awareness level of products and sustainability in the market based on product fundamentals is
of paramount importance as they can largely affect the market capitalisation of Insurance
companies The aim of this study would supplement this effort of the company in a small
way
HYPOTHESIS
Market penetration of IDBI Fortis Life Insurance is same throughout Chennai
CHAPTER 3
OBJECTIVES OF THE STUDY
18
For an organization to be successful they need to be equipped with the current position of
their share in the market They need to understand the new and the unidentified potential
available in the market The organization needs to understand the changing scenario taking
place in the market with respect to their business All these could be achieved only by
understanding the market sentiments
Thus through a Study to understand the current status of their Market penetration the
organization can motivate the current efforts of their sales force and efforts could be taken to
reduce the weakness complaints and also could come up with new schemes and facilities
according to the expectations of the Insurers Keeping the above view in the mind objectives
for the study are set and are given below
31 PRIMARY OBJECTIVE
To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at
Chennai
32 SECONDARY OBJECTIVE
The secondary objective of the study is to know awareness of different Insurance products
served in the market by different companies This project can also be a step in small way
towards identifying different channels through which companies can penetrate in market
33 SCOPE OF THE STUDY
The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance
is confined to Insurance Industry location Chennai during the month of March and April This has
been achieved by taking down the respondentrsquos views and responses individually by the
researcher using a Questionnaire The researcher asks the research questions in the questionnaire
to the respondent in a face-to-face fashion and records the response which is then used for the
analysis and interpretation part of the study
Once the study is through the researcher would be in a position to
advise the company about Market Penetration of IDBI Fortis in the respective areas where the
study has been undertaken The study would also help the company to find out the general
preferences factors considered by the Investors with respect to geographical presence
awareness of brand Product agency proliferation in the market customer satisfaction and
retention
19
CHAPTER 4
REVIEW OF LITERATURE
20
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
THEGENERALINSURANCEINDUSTRYININDIA
In India general insurance is a term used to mean all non life insurance business In other
countries terms like property casualty insurance and non life insurance are used
The history of this industry is characterized by massive reforms though the sector remains
heavily regulated Market liberalization in the industry took place in the year 2001
1THE VAST NATURE OF THE INDUSTRY
The industry meets its target market demand with products for marine insurance automobile
(which is compulsory in the country) public liability (also compulsory) homeownersrsquo
policies travel insurance etc The sector being highly regulated the public sector calls the
shots in determining the rules of delivering services in the country Typical companies
dominating the industry include
United India Insurance company
Reliance General Insurance Company (provides health insurance motor
insurance travel insurance personal accident insurance etc)and
United India Insurance Company (provides fire marine motor industrial
liability personal accident Mediclaim and Unimedicare policies amongst
others)
1 ADAPTING TO MODERN TECHNOLOGY
In general the industry has utilized state of the art information technology facilities in
delivering their services to their clients The sale of insurance policies in rural areas
has really gained from IT advancements in the industry The claim process is also
computerized allowing clients to quickly avail their claims to the company
The assessing of loss incurred in the event of fire for example is done by forensic
experts assuring the accuracy of calculation of the compensation to the claimant
11
Other adaptations include the teaming up with other industry stakeholders eg
universities in providing customized products to the clients
2 THE CHALLENGE OF THE TWENTY FIRST CENTURY
Various reforms characterize the market including the detarrification and mandatory
participation of foreign owned general insurance companies with resident companies
The twenty first century has brought a major challenge in this industry
One key challenge is the recession that is currently hitting almost all corners of the
economy of India However the general insurance sector seems to have been hit less
by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance
was the hardest hit resulting into closure of some of its branches
The governing council has however come up with various code of conduct in
response to the credit crisis One particular code of conduct is geared towards the
control of these companiesrsquo pricing patterns with the detarrification in place
INDIAS HOME INSURANCE INDUSTRY
The home insurance industry falls under the general insurance umbrella sector It is a very
popular industry in India due to the obvious reason of the inherent risks faced in India
In the paragraphs below we shall seek to explore this industry in depth focusing on its
importance the kind of policies available in the market together with policy exclusions how
the claim process is done and finally quote a couple of companies that are the driving force in
this industry
IMPORTANCEOFGETTINGTHECOVER
Your home is your most valuable asset Both the structure and the contents in them This is
where you hold memories of your family growing from stage to stage This is where you go
to when you need some peace of mind
This is also where you keep your sentimental assets When catastrophes strike you may end
up losing your home and all its valuables It is important therefore that you get your cover to
shield you against these unforeseen circumstances
12
THEPOLICYTYPESANDTHEIREXCLUSIONS
various policies exist in the market for cover against potential loss of your home and its
contents These policies range from those to cater for repair cost on the building (risks being
riots fire especially with the rise of electrical appliances in various households) replacement
of stolen items (risks being burglary theft terrorism etc) etc The various policy types are
customized to the various risks involved ie landslides earthquakes explosions fire etc
THECLAIMPROCESS
Despite many clients airing their complaints with regard to how the claim process is clogged
with bureaucracies the industry has tried to make uniform the whole procedure and ensure
that the final customer benefits In this process the first thing to consider once the insured
risk has occurred is to minimize loss as much as possible
In the event of a fire outbreak try to salvage as much as you can The next step is to inform
the police authorities especially in the event of a theft burglary etc Then inform your
provider (ensure that you had given your provider details of your property well in advance)
The provider shall send a surveyor to come and estimate the extent of the damage Finally
you need to submit your claim form to your provider
Wikipedia provides an in-depth list of service providers in this industry Some of these like
Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time
INDIAS HEALTH INSURANCE INDUSTRY
The health insurance industry a branch of the general insurance has been existent for a long
time It started in Europe as workers sickness benefits and evolved into the private sector
covering the various sectors of the economy
In India the industry has had its own share of milestones and setbacks as you may discover in
the discussion that follows
NATUREOFTHEINDUSTRY
The health insurance industry is mostly dominated by the private sector The public sector
acts as a regulatory body while providing the basic health care needed The poor find it hard
13
to access these services Generally the demand for proper healthcare far outweighs the
supply for the same
Problems in accessing the services coupled with the poor financial structure with little
government support in the form of social security has been a big challenge in the industry
However like any other service providers in these typical sectors the principal of pooling is
utilized
POLICIESINTHEMARKET
This industry has policies that cater for the individual and family The policies have been
differentiated to penetrate in the various market niches Typical policies include indemnity
insurance (this is to compensate the client for the damageloss incurred) cashless claim
facilities (this as the name suggests is to cater for the costs incurred without necessarily
paying a cash lump sum to the insured) and community based insurance
SETBACKSINTHEINDUSTRY
The main pitfalls that have been experienced in this industry have been the provider
malpractice and the limited nature of the coverage provided Medical institutions have been
quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the
claim bills
This is purely because a majority of persons have medical cover through employer schemes
Other malpractices include the failure of service providers to honour their promises and when
they do they delay the process making it hard for the claimant to recover from the loss The
other setback has been the inability to for example provide preventive healthcare policies
like for vaccinations voluntary testing etc All these are exclusions on the policies
The medical insurance industry has come in handy in times of various catastrophes like
floods earthquakes and accidents These covers have gone a long way in assisting persons to
recover from the loss and lead their individual lives as usual However a lot still needs to be
done for this industry by its stakeholders
INDIArsquoS MOTOR INSURANCE INDUSTRY
Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle
owners
14
This industry also falls under the umbrella general insurance sector where home health and
travel insurance covers fall
THEEXTENTOFTHECOVER
This cover caters for risks related to the driver the passenger and any third party involved at
the time of loss
Typical risks include both natural and man-made risks Natural risks are in the form of fire
explosions and self-ignition Man-made risks on the other hand relate to theft and burglary
etc
The personal accident policy is a compulsory policy It caters for the individual and hisher
passengers The third party legal liability caters for claims for other parties due to the loss
caused by the driverrsquos actions
NATUREOFTHECOVER
This type of cover is on the insured declared value This is a fixed value at which the client
insures his motor vehicle According to ICICI this insured declared value is calculated based
on the listing selling price as provided by the manufacturer
PLAYERSINTHEINDUSTRY
The industry is full of players that have met the industry standards while others have fallen
short of them At one time I came across a bloggerrsquos work lamenting about the customer care
and the whole claim process making observations that serious loopholes do exist in this
industry
In his writing he quoted two prominent service providers that charge premiums for the same
policy but the difference between the two premiums was too big The customer care was also
poor wasting a lot of time on the phone waiting for the call to be transferred to the right
customer care representative and finally being asked to call after a day or two
The online claim forms also placed on the providersrsquo websites kept on returning error
messages This was just one of the persons who have had a nasty experience in this industry
But judging from the comments his observations generated one can tell he is not alone
15
INDIAS TRAVEL INSURANCE INDUSTRY
The travel insurance industry comes in handy in India especially because of the enormous
traffic of visitors in and out of the country
Needless to say this cover also caters for citizens It is much easier to deal with
hospitalization bills when you are covered than when you are not should a loss occur to you
when you are in a foreign country
The industry has evolved for many years In the following discussion we shall take a critical
look at the extent of the cover the benefits for the client the exclusions and the quote
details
COVERAGE
This cover caters for among others any unexpected medical bills while on vacation any flight
accidents or delays any accidental damage to your personal effects while travelling any
accidental loss of money or important documents any passport replacements that you may
need to do in case your original passport goes missing hijacking etc The list is endless
BENEFITS
One can never overemphasize the benefits of this type of insurance Just having the peace of
mind knowing that your service provider shall come to your rescue should you have any
mishap while on your trip is reason enough to go for the cover
The recovery of important documents lost while on a trip is a welcome relief to the client
Also being able to cater for your hospitalization commitments when in a foreign country is
very much welcome
EXCLUSIONSOFTHECOVER
This kind of cover has strict exclusions to shield the provider from being manipulated into
paying for intentional losses These exclusions include any pre-existing medical conditions
any deliberate exposure by the client to the particular risk covered any loss that occurred to
16
the client while under the influence of alcohol or drug abuse etc These exclusions are usually
included in the contract and the client needs to understand them in order to avoid any
confusion in the future
DETAILSOFTHEQUOTE
The travel insurance industry has quotes to the potential client detailing the kind of
information required to be submitted before signing the contract This includes the name of
the location to where the person is travelling to the type of policy the client intends to
undertake when the client intends to terminate the contract and when the policy should start
Persons travelling for business or leisure need to assess their need for cover and then do their
homework in settling for an appropriate service provider
CHAPTER 2
17
STATEMENT OF PROBLEM
To know Market penetration of IDBI Fortis Life Insurance Company
limited at Chennai The India Insurance industry has grown at phenomenal rate Starting
as a Monopolistic Industry it has transformed into highly competitive industry it is not just
doing something right that matters but it is also about doing nothing wrong Making profit
does not only mean a large customer base but also depends on Penetration level of the
services provided to the customers and premium remittances
The Insurance companies come out with many schemes and offers to attract customers and
to make them invest in various schemes provided by these companies Most Importantly
Market Penetration of companies based on parameters like geographical coverage agency
awareness level of products and sustainability in the market based on product fundamentals is
of paramount importance as they can largely affect the market capitalisation of Insurance
companies The aim of this study would supplement this effort of the company in a small
way
HYPOTHESIS
Market penetration of IDBI Fortis Life Insurance is same throughout Chennai
CHAPTER 3
OBJECTIVES OF THE STUDY
18
For an organization to be successful they need to be equipped with the current position of
their share in the market They need to understand the new and the unidentified potential
available in the market The organization needs to understand the changing scenario taking
place in the market with respect to their business All these could be achieved only by
understanding the market sentiments
Thus through a Study to understand the current status of their Market penetration the
organization can motivate the current efforts of their sales force and efforts could be taken to
reduce the weakness complaints and also could come up with new schemes and facilities
according to the expectations of the Insurers Keeping the above view in the mind objectives
for the study are set and are given below
31 PRIMARY OBJECTIVE
To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at
Chennai
32 SECONDARY OBJECTIVE
The secondary objective of the study is to know awareness of different Insurance products
served in the market by different companies This project can also be a step in small way
towards identifying different channels through which companies can penetrate in market
33 SCOPE OF THE STUDY
The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance
is confined to Insurance Industry location Chennai during the month of March and April This has
been achieved by taking down the respondentrsquos views and responses individually by the
researcher using a Questionnaire The researcher asks the research questions in the questionnaire
to the respondent in a face-to-face fashion and records the response which is then used for the
analysis and interpretation part of the study
Once the study is through the researcher would be in a position to
advise the company about Market Penetration of IDBI Fortis in the respective areas where the
study has been undertaken The study would also help the company to find out the general
preferences factors considered by the Investors with respect to geographical presence
awareness of brand Product agency proliferation in the market customer satisfaction and
retention
19
CHAPTER 4
REVIEW OF LITERATURE
20
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
Other adaptations include the teaming up with other industry stakeholders eg
universities in providing customized products to the clients
2 THE CHALLENGE OF THE TWENTY FIRST CENTURY
Various reforms characterize the market including the detarrification and mandatory
participation of foreign owned general insurance companies with resident companies
The twenty first century has brought a major challenge in this industry
One key challenge is the recession that is currently hitting almost all corners of the
economy of India However the general insurance sector seems to have been hit less
by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance
was the hardest hit resulting into closure of some of its branches
The governing council has however come up with various code of conduct in
response to the credit crisis One particular code of conduct is geared towards the
control of these companiesrsquo pricing patterns with the detarrification in place
INDIAS HOME INSURANCE INDUSTRY
The home insurance industry falls under the general insurance umbrella sector It is a very
popular industry in India due to the obvious reason of the inherent risks faced in India
In the paragraphs below we shall seek to explore this industry in depth focusing on its
importance the kind of policies available in the market together with policy exclusions how
the claim process is done and finally quote a couple of companies that are the driving force in
this industry
IMPORTANCEOFGETTINGTHECOVER
Your home is your most valuable asset Both the structure and the contents in them This is
where you hold memories of your family growing from stage to stage This is where you go
to when you need some peace of mind
This is also where you keep your sentimental assets When catastrophes strike you may end
up losing your home and all its valuables It is important therefore that you get your cover to
shield you against these unforeseen circumstances
12
THEPOLICYTYPESANDTHEIREXCLUSIONS
various policies exist in the market for cover against potential loss of your home and its
contents These policies range from those to cater for repair cost on the building (risks being
riots fire especially with the rise of electrical appliances in various households) replacement
of stolen items (risks being burglary theft terrorism etc) etc The various policy types are
customized to the various risks involved ie landslides earthquakes explosions fire etc
THECLAIMPROCESS
Despite many clients airing their complaints with regard to how the claim process is clogged
with bureaucracies the industry has tried to make uniform the whole procedure and ensure
that the final customer benefits In this process the first thing to consider once the insured
risk has occurred is to minimize loss as much as possible
In the event of a fire outbreak try to salvage as much as you can The next step is to inform
the police authorities especially in the event of a theft burglary etc Then inform your
provider (ensure that you had given your provider details of your property well in advance)
The provider shall send a surveyor to come and estimate the extent of the damage Finally
you need to submit your claim form to your provider
Wikipedia provides an in-depth list of service providers in this industry Some of these like
Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time
INDIAS HEALTH INSURANCE INDUSTRY
The health insurance industry a branch of the general insurance has been existent for a long
time It started in Europe as workers sickness benefits and evolved into the private sector
covering the various sectors of the economy
In India the industry has had its own share of milestones and setbacks as you may discover in
the discussion that follows
NATUREOFTHEINDUSTRY
The health insurance industry is mostly dominated by the private sector The public sector
acts as a regulatory body while providing the basic health care needed The poor find it hard
13
to access these services Generally the demand for proper healthcare far outweighs the
supply for the same
Problems in accessing the services coupled with the poor financial structure with little
government support in the form of social security has been a big challenge in the industry
However like any other service providers in these typical sectors the principal of pooling is
utilized
POLICIESINTHEMARKET
This industry has policies that cater for the individual and family The policies have been
differentiated to penetrate in the various market niches Typical policies include indemnity
insurance (this is to compensate the client for the damageloss incurred) cashless claim
facilities (this as the name suggests is to cater for the costs incurred without necessarily
paying a cash lump sum to the insured) and community based insurance
SETBACKSINTHEINDUSTRY
The main pitfalls that have been experienced in this industry have been the provider
malpractice and the limited nature of the coverage provided Medical institutions have been
quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the
claim bills
This is purely because a majority of persons have medical cover through employer schemes
Other malpractices include the failure of service providers to honour their promises and when
they do they delay the process making it hard for the claimant to recover from the loss The
other setback has been the inability to for example provide preventive healthcare policies
like for vaccinations voluntary testing etc All these are exclusions on the policies
The medical insurance industry has come in handy in times of various catastrophes like
floods earthquakes and accidents These covers have gone a long way in assisting persons to
recover from the loss and lead their individual lives as usual However a lot still needs to be
done for this industry by its stakeholders
INDIArsquoS MOTOR INSURANCE INDUSTRY
Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle
owners
14
This industry also falls under the umbrella general insurance sector where home health and
travel insurance covers fall
THEEXTENTOFTHECOVER
This cover caters for risks related to the driver the passenger and any third party involved at
the time of loss
Typical risks include both natural and man-made risks Natural risks are in the form of fire
explosions and self-ignition Man-made risks on the other hand relate to theft and burglary
etc
The personal accident policy is a compulsory policy It caters for the individual and hisher
passengers The third party legal liability caters for claims for other parties due to the loss
caused by the driverrsquos actions
NATUREOFTHECOVER
This type of cover is on the insured declared value This is a fixed value at which the client
insures his motor vehicle According to ICICI this insured declared value is calculated based
on the listing selling price as provided by the manufacturer
PLAYERSINTHEINDUSTRY
The industry is full of players that have met the industry standards while others have fallen
short of them At one time I came across a bloggerrsquos work lamenting about the customer care
and the whole claim process making observations that serious loopholes do exist in this
industry
In his writing he quoted two prominent service providers that charge premiums for the same
policy but the difference between the two premiums was too big The customer care was also
poor wasting a lot of time on the phone waiting for the call to be transferred to the right
customer care representative and finally being asked to call after a day or two
The online claim forms also placed on the providersrsquo websites kept on returning error
messages This was just one of the persons who have had a nasty experience in this industry
But judging from the comments his observations generated one can tell he is not alone
15
INDIAS TRAVEL INSURANCE INDUSTRY
The travel insurance industry comes in handy in India especially because of the enormous
traffic of visitors in and out of the country
Needless to say this cover also caters for citizens It is much easier to deal with
hospitalization bills when you are covered than when you are not should a loss occur to you
when you are in a foreign country
The industry has evolved for many years In the following discussion we shall take a critical
look at the extent of the cover the benefits for the client the exclusions and the quote
details
COVERAGE
This cover caters for among others any unexpected medical bills while on vacation any flight
accidents or delays any accidental damage to your personal effects while travelling any
accidental loss of money or important documents any passport replacements that you may
need to do in case your original passport goes missing hijacking etc The list is endless
BENEFITS
One can never overemphasize the benefits of this type of insurance Just having the peace of
mind knowing that your service provider shall come to your rescue should you have any
mishap while on your trip is reason enough to go for the cover
The recovery of important documents lost while on a trip is a welcome relief to the client
Also being able to cater for your hospitalization commitments when in a foreign country is
very much welcome
EXCLUSIONSOFTHECOVER
This kind of cover has strict exclusions to shield the provider from being manipulated into
paying for intentional losses These exclusions include any pre-existing medical conditions
any deliberate exposure by the client to the particular risk covered any loss that occurred to
16
the client while under the influence of alcohol or drug abuse etc These exclusions are usually
included in the contract and the client needs to understand them in order to avoid any
confusion in the future
DETAILSOFTHEQUOTE
The travel insurance industry has quotes to the potential client detailing the kind of
information required to be submitted before signing the contract This includes the name of
the location to where the person is travelling to the type of policy the client intends to
undertake when the client intends to terminate the contract and when the policy should start
Persons travelling for business or leisure need to assess their need for cover and then do their
homework in settling for an appropriate service provider
CHAPTER 2
17
STATEMENT OF PROBLEM
To know Market penetration of IDBI Fortis Life Insurance Company
limited at Chennai The India Insurance industry has grown at phenomenal rate Starting
as a Monopolistic Industry it has transformed into highly competitive industry it is not just
doing something right that matters but it is also about doing nothing wrong Making profit
does not only mean a large customer base but also depends on Penetration level of the
services provided to the customers and premium remittances
The Insurance companies come out with many schemes and offers to attract customers and
to make them invest in various schemes provided by these companies Most Importantly
Market Penetration of companies based on parameters like geographical coverage agency
awareness level of products and sustainability in the market based on product fundamentals is
of paramount importance as they can largely affect the market capitalisation of Insurance
companies The aim of this study would supplement this effort of the company in a small
way
HYPOTHESIS
Market penetration of IDBI Fortis Life Insurance is same throughout Chennai
CHAPTER 3
OBJECTIVES OF THE STUDY
18
For an organization to be successful they need to be equipped with the current position of
their share in the market They need to understand the new and the unidentified potential
available in the market The organization needs to understand the changing scenario taking
place in the market with respect to their business All these could be achieved only by
understanding the market sentiments
Thus through a Study to understand the current status of their Market penetration the
organization can motivate the current efforts of their sales force and efforts could be taken to
reduce the weakness complaints and also could come up with new schemes and facilities
according to the expectations of the Insurers Keeping the above view in the mind objectives
for the study are set and are given below
31 PRIMARY OBJECTIVE
To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at
Chennai
32 SECONDARY OBJECTIVE
The secondary objective of the study is to know awareness of different Insurance products
served in the market by different companies This project can also be a step in small way
towards identifying different channels through which companies can penetrate in market
33 SCOPE OF THE STUDY
The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance
is confined to Insurance Industry location Chennai during the month of March and April This has
been achieved by taking down the respondentrsquos views and responses individually by the
researcher using a Questionnaire The researcher asks the research questions in the questionnaire
to the respondent in a face-to-face fashion and records the response which is then used for the
analysis and interpretation part of the study
Once the study is through the researcher would be in a position to
advise the company about Market Penetration of IDBI Fortis in the respective areas where the
study has been undertaken The study would also help the company to find out the general
preferences factors considered by the Investors with respect to geographical presence
awareness of brand Product agency proliferation in the market customer satisfaction and
retention
19
CHAPTER 4
REVIEW OF LITERATURE
20
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
THEPOLICYTYPESANDTHEIREXCLUSIONS
various policies exist in the market for cover against potential loss of your home and its
contents These policies range from those to cater for repair cost on the building (risks being
riots fire especially with the rise of electrical appliances in various households) replacement
of stolen items (risks being burglary theft terrorism etc) etc The various policy types are
customized to the various risks involved ie landslides earthquakes explosions fire etc
THECLAIMPROCESS
Despite many clients airing their complaints with regard to how the claim process is clogged
with bureaucracies the industry has tried to make uniform the whole procedure and ensure
that the final customer benefits In this process the first thing to consider once the insured
risk has occurred is to minimize loss as much as possible
In the event of a fire outbreak try to salvage as much as you can The next step is to inform
the police authorities especially in the event of a theft burglary etc Then inform your
provider (ensure that you had given your provider details of your property well in advance)
The provider shall send a surveyor to come and estimate the extent of the damage Finally
you need to submit your claim form to your provider
Wikipedia provides an in-depth list of service providers in this industry Some of these like
Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time
INDIAS HEALTH INSURANCE INDUSTRY
The health insurance industry a branch of the general insurance has been existent for a long
time It started in Europe as workers sickness benefits and evolved into the private sector
covering the various sectors of the economy
In India the industry has had its own share of milestones and setbacks as you may discover in
the discussion that follows
NATUREOFTHEINDUSTRY
The health insurance industry is mostly dominated by the private sector The public sector
acts as a regulatory body while providing the basic health care needed The poor find it hard
13
to access these services Generally the demand for proper healthcare far outweighs the
supply for the same
Problems in accessing the services coupled with the poor financial structure with little
government support in the form of social security has been a big challenge in the industry
However like any other service providers in these typical sectors the principal of pooling is
utilized
POLICIESINTHEMARKET
This industry has policies that cater for the individual and family The policies have been
differentiated to penetrate in the various market niches Typical policies include indemnity
insurance (this is to compensate the client for the damageloss incurred) cashless claim
facilities (this as the name suggests is to cater for the costs incurred without necessarily
paying a cash lump sum to the insured) and community based insurance
SETBACKSINTHEINDUSTRY
The main pitfalls that have been experienced in this industry have been the provider
malpractice and the limited nature of the coverage provided Medical institutions have been
quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the
claim bills
This is purely because a majority of persons have medical cover through employer schemes
Other malpractices include the failure of service providers to honour their promises and when
they do they delay the process making it hard for the claimant to recover from the loss The
other setback has been the inability to for example provide preventive healthcare policies
like for vaccinations voluntary testing etc All these are exclusions on the policies
The medical insurance industry has come in handy in times of various catastrophes like
floods earthquakes and accidents These covers have gone a long way in assisting persons to
recover from the loss and lead their individual lives as usual However a lot still needs to be
done for this industry by its stakeholders
INDIArsquoS MOTOR INSURANCE INDUSTRY
Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle
owners
14
This industry also falls under the umbrella general insurance sector where home health and
travel insurance covers fall
THEEXTENTOFTHECOVER
This cover caters for risks related to the driver the passenger and any third party involved at
the time of loss
Typical risks include both natural and man-made risks Natural risks are in the form of fire
explosions and self-ignition Man-made risks on the other hand relate to theft and burglary
etc
The personal accident policy is a compulsory policy It caters for the individual and hisher
passengers The third party legal liability caters for claims for other parties due to the loss
caused by the driverrsquos actions
NATUREOFTHECOVER
This type of cover is on the insured declared value This is a fixed value at which the client
insures his motor vehicle According to ICICI this insured declared value is calculated based
on the listing selling price as provided by the manufacturer
PLAYERSINTHEINDUSTRY
The industry is full of players that have met the industry standards while others have fallen
short of them At one time I came across a bloggerrsquos work lamenting about the customer care
and the whole claim process making observations that serious loopholes do exist in this
industry
In his writing he quoted two prominent service providers that charge premiums for the same
policy but the difference between the two premiums was too big The customer care was also
poor wasting a lot of time on the phone waiting for the call to be transferred to the right
customer care representative and finally being asked to call after a day or two
The online claim forms also placed on the providersrsquo websites kept on returning error
messages This was just one of the persons who have had a nasty experience in this industry
But judging from the comments his observations generated one can tell he is not alone
15
INDIAS TRAVEL INSURANCE INDUSTRY
The travel insurance industry comes in handy in India especially because of the enormous
traffic of visitors in and out of the country
Needless to say this cover also caters for citizens It is much easier to deal with
hospitalization bills when you are covered than when you are not should a loss occur to you
when you are in a foreign country
The industry has evolved for many years In the following discussion we shall take a critical
look at the extent of the cover the benefits for the client the exclusions and the quote
details
COVERAGE
This cover caters for among others any unexpected medical bills while on vacation any flight
accidents or delays any accidental damage to your personal effects while travelling any
accidental loss of money or important documents any passport replacements that you may
need to do in case your original passport goes missing hijacking etc The list is endless
BENEFITS
One can never overemphasize the benefits of this type of insurance Just having the peace of
mind knowing that your service provider shall come to your rescue should you have any
mishap while on your trip is reason enough to go for the cover
The recovery of important documents lost while on a trip is a welcome relief to the client
Also being able to cater for your hospitalization commitments when in a foreign country is
very much welcome
EXCLUSIONSOFTHECOVER
This kind of cover has strict exclusions to shield the provider from being manipulated into
paying for intentional losses These exclusions include any pre-existing medical conditions
any deliberate exposure by the client to the particular risk covered any loss that occurred to
16
the client while under the influence of alcohol or drug abuse etc These exclusions are usually
included in the contract and the client needs to understand them in order to avoid any
confusion in the future
DETAILSOFTHEQUOTE
The travel insurance industry has quotes to the potential client detailing the kind of
information required to be submitted before signing the contract This includes the name of
the location to where the person is travelling to the type of policy the client intends to
undertake when the client intends to terminate the contract and when the policy should start
Persons travelling for business or leisure need to assess their need for cover and then do their
homework in settling for an appropriate service provider
CHAPTER 2
17
STATEMENT OF PROBLEM
To know Market penetration of IDBI Fortis Life Insurance Company
limited at Chennai The India Insurance industry has grown at phenomenal rate Starting
as a Monopolistic Industry it has transformed into highly competitive industry it is not just
doing something right that matters but it is also about doing nothing wrong Making profit
does not only mean a large customer base but also depends on Penetration level of the
services provided to the customers and premium remittances
The Insurance companies come out with many schemes and offers to attract customers and
to make them invest in various schemes provided by these companies Most Importantly
Market Penetration of companies based on parameters like geographical coverage agency
awareness level of products and sustainability in the market based on product fundamentals is
of paramount importance as they can largely affect the market capitalisation of Insurance
companies The aim of this study would supplement this effort of the company in a small
way
HYPOTHESIS
Market penetration of IDBI Fortis Life Insurance is same throughout Chennai
CHAPTER 3
OBJECTIVES OF THE STUDY
18
For an organization to be successful they need to be equipped with the current position of
their share in the market They need to understand the new and the unidentified potential
available in the market The organization needs to understand the changing scenario taking
place in the market with respect to their business All these could be achieved only by
understanding the market sentiments
Thus through a Study to understand the current status of their Market penetration the
organization can motivate the current efforts of their sales force and efforts could be taken to
reduce the weakness complaints and also could come up with new schemes and facilities
according to the expectations of the Insurers Keeping the above view in the mind objectives
for the study are set and are given below
31 PRIMARY OBJECTIVE
To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at
Chennai
32 SECONDARY OBJECTIVE
The secondary objective of the study is to know awareness of different Insurance products
served in the market by different companies This project can also be a step in small way
towards identifying different channels through which companies can penetrate in market
33 SCOPE OF THE STUDY
The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance
is confined to Insurance Industry location Chennai during the month of March and April This has
been achieved by taking down the respondentrsquos views and responses individually by the
researcher using a Questionnaire The researcher asks the research questions in the questionnaire
to the respondent in a face-to-face fashion and records the response which is then used for the
analysis and interpretation part of the study
Once the study is through the researcher would be in a position to
advise the company about Market Penetration of IDBI Fortis in the respective areas where the
study has been undertaken The study would also help the company to find out the general
preferences factors considered by the Investors with respect to geographical presence
awareness of brand Product agency proliferation in the market customer satisfaction and
retention
19
CHAPTER 4
REVIEW OF LITERATURE
20
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
to access these services Generally the demand for proper healthcare far outweighs the
supply for the same
Problems in accessing the services coupled with the poor financial structure with little
government support in the form of social security has been a big challenge in the industry
However like any other service providers in these typical sectors the principal of pooling is
utilized
POLICIESINTHEMARKET
This industry has policies that cater for the individual and family The policies have been
differentiated to penetrate in the various market niches Typical policies include indemnity
insurance (this is to compensate the client for the damageloss incurred) cashless claim
facilities (this as the name suggests is to cater for the costs incurred without necessarily
paying a cash lump sum to the insured) and community based insurance
SETBACKSINTHEINDUSTRY
The main pitfalls that have been experienced in this industry have been the provider
malpractice and the limited nature of the coverage provided Medical institutions have been
quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the
claim bills
This is purely because a majority of persons have medical cover through employer schemes
Other malpractices include the failure of service providers to honour their promises and when
they do they delay the process making it hard for the claimant to recover from the loss The
other setback has been the inability to for example provide preventive healthcare policies
like for vaccinations voluntary testing etc All these are exclusions on the policies
The medical insurance industry has come in handy in times of various catastrophes like
floods earthquakes and accidents These covers have gone a long way in assisting persons to
recover from the loss and lead their individual lives as usual However a lot still needs to be
done for this industry by its stakeholders
INDIArsquoS MOTOR INSURANCE INDUSTRY
Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle
owners
14
This industry also falls under the umbrella general insurance sector where home health and
travel insurance covers fall
THEEXTENTOFTHECOVER
This cover caters for risks related to the driver the passenger and any third party involved at
the time of loss
Typical risks include both natural and man-made risks Natural risks are in the form of fire
explosions and self-ignition Man-made risks on the other hand relate to theft and burglary
etc
The personal accident policy is a compulsory policy It caters for the individual and hisher
passengers The third party legal liability caters for claims for other parties due to the loss
caused by the driverrsquos actions
NATUREOFTHECOVER
This type of cover is on the insured declared value This is a fixed value at which the client
insures his motor vehicle According to ICICI this insured declared value is calculated based
on the listing selling price as provided by the manufacturer
PLAYERSINTHEINDUSTRY
The industry is full of players that have met the industry standards while others have fallen
short of them At one time I came across a bloggerrsquos work lamenting about the customer care
and the whole claim process making observations that serious loopholes do exist in this
industry
In his writing he quoted two prominent service providers that charge premiums for the same
policy but the difference between the two premiums was too big The customer care was also
poor wasting a lot of time on the phone waiting for the call to be transferred to the right
customer care representative and finally being asked to call after a day or two
The online claim forms also placed on the providersrsquo websites kept on returning error
messages This was just one of the persons who have had a nasty experience in this industry
But judging from the comments his observations generated one can tell he is not alone
15
INDIAS TRAVEL INSURANCE INDUSTRY
The travel insurance industry comes in handy in India especially because of the enormous
traffic of visitors in and out of the country
Needless to say this cover also caters for citizens It is much easier to deal with
hospitalization bills when you are covered than when you are not should a loss occur to you
when you are in a foreign country
The industry has evolved for many years In the following discussion we shall take a critical
look at the extent of the cover the benefits for the client the exclusions and the quote
details
COVERAGE
This cover caters for among others any unexpected medical bills while on vacation any flight
accidents or delays any accidental damage to your personal effects while travelling any
accidental loss of money or important documents any passport replacements that you may
need to do in case your original passport goes missing hijacking etc The list is endless
BENEFITS
One can never overemphasize the benefits of this type of insurance Just having the peace of
mind knowing that your service provider shall come to your rescue should you have any
mishap while on your trip is reason enough to go for the cover
The recovery of important documents lost while on a trip is a welcome relief to the client
Also being able to cater for your hospitalization commitments when in a foreign country is
very much welcome
EXCLUSIONSOFTHECOVER
This kind of cover has strict exclusions to shield the provider from being manipulated into
paying for intentional losses These exclusions include any pre-existing medical conditions
any deliberate exposure by the client to the particular risk covered any loss that occurred to
16
the client while under the influence of alcohol or drug abuse etc These exclusions are usually
included in the contract and the client needs to understand them in order to avoid any
confusion in the future
DETAILSOFTHEQUOTE
The travel insurance industry has quotes to the potential client detailing the kind of
information required to be submitted before signing the contract This includes the name of
the location to where the person is travelling to the type of policy the client intends to
undertake when the client intends to terminate the contract and when the policy should start
Persons travelling for business or leisure need to assess their need for cover and then do their
homework in settling for an appropriate service provider
CHAPTER 2
17
STATEMENT OF PROBLEM
To know Market penetration of IDBI Fortis Life Insurance Company
limited at Chennai The India Insurance industry has grown at phenomenal rate Starting
as a Monopolistic Industry it has transformed into highly competitive industry it is not just
doing something right that matters but it is also about doing nothing wrong Making profit
does not only mean a large customer base but also depends on Penetration level of the
services provided to the customers and premium remittances
The Insurance companies come out with many schemes and offers to attract customers and
to make them invest in various schemes provided by these companies Most Importantly
Market Penetration of companies based on parameters like geographical coverage agency
awareness level of products and sustainability in the market based on product fundamentals is
of paramount importance as they can largely affect the market capitalisation of Insurance
companies The aim of this study would supplement this effort of the company in a small
way
HYPOTHESIS
Market penetration of IDBI Fortis Life Insurance is same throughout Chennai
CHAPTER 3
OBJECTIVES OF THE STUDY
18
For an organization to be successful they need to be equipped with the current position of
their share in the market They need to understand the new and the unidentified potential
available in the market The organization needs to understand the changing scenario taking
place in the market with respect to their business All these could be achieved only by
understanding the market sentiments
Thus through a Study to understand the current status of their Market penetration the
organization can motivate the current efforts of their sales force and efforts could be taken to
reduce the weakness complaints and also could come up with new schemes and facilities
according to the expectations of the Insurers Keeping the above view in the mind objectives
for the study are set and are given below
31 PRIMARY OBJECTIVE
To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at
Chennai
32 SECONDARY OBJECTIVE
The secondary objective of the study is to know awareness of different Insurance products
served in the market by different companies This project can also be a step in small way
towards identifying different channels through which companies can penetrate in market
33 SCOPE OF THE STUDY
The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance
is confined to Insurance Industry location Chennai during the month of March and April This has
been achieved by taking down the respondentrsquos views and responses individually by the
researcher using a Questionnaire The researcher asks the research questions in the questionnaire
to the respondent in a face-to-face fashion and records the response which is then used for the
analysis and interpretation part of the study
Once the study is through the researcher would be in a position to
advise the company about Market Penetration of IDBI Fortis in the respective areas where the
study has been undertaken The study would also help the company to find out the general
preferences factors considered by the Investors with respect to geographical presence
awareness of brand Product agency proliferation in the market customer satisfaction and
retention
19
CHAPTER 4
REVIEW OF LITERATURE
20
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
This industry also falls under the umbrella general insurance sector where home health and
travel insurance covers fall
THEEXTENTOFTHECOVER
This cover caters for risks related to the driver the passenger and any third party involved at
the time of loss
Typical risks include both natural and man-made risks Natural risks are in the form of fire
explosions and self-ignition Man-made risks on the other hand relate to theft and burglary
etc
The personal accident policy is a compulsory policy It caters for the individual and hisher
passengers The third party legal liability caters for claims for other parties due to the loss
caused by the driverrsquos actions
NATUREOFTHECOVER
This type of cover is on the insured declared value This is a fixed value at which the client
insures his motor vehicle According to ICICI this insured declared value is calculated based
on the listing selling price as provided by the manufacturer
PLAYERSINTHEINDUSTRY
The industry is full of players that have met the industry standards while others have fallen
short of them At one time I came across a bloggerrsquos work lamenting about the customer care
and the whole claim process making observations that serious loopholes do exist in this
industry
In his writing he quoted two prominent service providers that charge premiums for the same
policy but the difference between the two premiums was too big The customer care was also
poor wasting a lot of time on the phone waiting for the call to be transferred to the right
customer care representative and finally being asked to call after a day or two
The online claim forms also placed on the providersrsquo websites kept on returning error
messages This was just one of the persons who have had a nasty experience in this industry
But judging from the comments his observations generated one can tell he is not alone
15
INDIAS TRAVEL INSURANCE INDUSTRY
The travel insurance industry comes in handy in India especially because of the enormous
traffic of visitors in and out of the country
Needless to say this cover also caters for citizens It is much easier to deal with
hospitalization bills when you are covered than when you are not should a loss occur to you
when you are in a foreign country
The industry has evolved for many years In the following discussion we shall take a critical
look at the extent of the cover the benefits for the client the exclusions and the quote
details
COVERAGE
This cover caters for among others any unexpected medical bills while on vacation any flight
accidents or delays any accidental damage to your personal effects while travelling any
accidental loss of money or important documents any passport replacements that you may
need to do in case your original passport goes missing hijacking etc The list is endless
BENEFITS
One can never overemphasize the benefits of this type of insurance Just having the peace of
mind knowing that your service provider shall come to your rescue should you have any
mishap while on your trip is reason enough to go for the cover
The recovery of important documents lost while on a trip is a welcome relief to the client
Also being able to cater for your hospitalization commitments when in a foreign country is
very much welcome
EXCLUSIONSOFTHECOVER
This kind of cover has strict exclusions to shield the provider from being manipulated into
paying for intentional losses These exclusions include any pre-existing medical conditions
any deliberate exposure by the client to the particular risk covered any loss that occurred to
16
the client while under the influence of alcohol or drug abuse etc These exclusions are usually
included in the contract and the client needs to understand them in order to avoid any
confusion in the future
DETAILSOFTHEQUOTE
The travel insurance industry has quotes to the potential client detailing the kind of
information required to be submitted before signing the contract This includes the name of
the location to where the person is travelling to the type of policy the client intends to
undertake when the client intends to terminate the contract and when the policy should start
Persons travelling for business or leisure need to assess their need for cover and then do their
homework in settling for an appropriate service provider
CHAPTER 2
17
STATEMENT OF PROBLEM
To know Market penetration of IDBI Fortis Life Insurance Company
limited at Chennai The India Insurance industry has grown at phenomenal rate Starting
as a Monopolistic Industry it has transformed into highly competitive industry it is not just
doing something right that matters but it is also about doing nothing wrong Making profit
does not only mean a large customer base but also depends on Penetration level of the
services provided to the customers and premium remittances
The Insurance companies come out with many schemes and offers to attract customers and
to make them invest in various schemes provided by these companies Most Importantly
Market Penetration of companies based on parameters like geographical coverage agency
awareness level of products and sustainability in the market based on product fundamentals is
of paramount importance as they can largely affect the market capitalisation of Insurance
companies The aim of this study would supplement this effort of the company in a small
way
HYPOTHESIS
Market penetration of IDBI Fortis Life Insurance is same throughout Chennai
CHAPTER 3
OBJECTIVES OF THE STUDY
18
For an organization to be successful they need to be equipped with the current position of
their share in the market They need to understand the new and the unidentified potential
available in the market The organization needs to understand the changing scenario taking
place in the market with respect to their business All these could be achieved only by
understanding the market sentiments
Thus through a Study to understand the current status of their Market penetration the
organization can motivate the current efforts of their sales force and efforts could be taken to
reduce the weakness complaints and also could come up with new schemes and facilities
according to the expectations of the Insurers Keeping the above view in the mind objectives
for the study are set and are given below
31 PRIMARY OBJECTIVE
To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at
Chennai
32 SECONDARY OBJECTIVE
The secondary objective of the study is to know awareness of different Insurance products
served in the market by different companies This project can also be a step in small way
towards identifying different channels through which companies can penetrate in market
33 SCOPE OF THE STUDY
The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance
is confined to Insurance Industry location Chennai during the month of March and April This has
been achieved by taking down the respondentrsquos views and responses individually by the
researcher using a Questionnaire The researcher asks the research questions in the questionnaire
to the respondent in a face-to-face fashion and records the response which is then used for the
analysis and interpretation part of the study
Once the study is through the researcher would be in a position to
advise the company about Market Penetration of IDBI Fortis in the respective areas where the
study has been undertaken The study would also help the company to find out the general
preferences factors considered by the Investors with respect to geographical presence
awareness of brand Product agency proliferation in the market customer satisfaction and
retention
19
CHAPTER 4
REVIEW OF LITERATURE
20
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
INDIAS TRAVEL INSURANCE INDUSTRY
The travel insurance industry comes in handy in India especially because of the enormous
traffic of visitors in and out of the country
Needless to say this cover also caters for citizens It is much easier to deal with
hospitalization bills when you are covered than when you are not should a loss occur to you
when you are in a foreign country
The industry has evolved for many years In the following discussion we shall take a critical
look at the extent of the cover the benefits for the client the exclusions and the quote
details
COVERAGE
This cover caters for among others any unexpected medical bills while on vacation any flight
accidents or delays any accidental damage to your personal effects while travelling any
accidental loss of money or important documents any passport replacements that you may
need to do in case your original passport goes missing hijacking etc The list is endless
BENEFITS
One can never overemphasize the benefits of this type of insurance Just having the peace of
mind knowing that your service provider shall come to your rescue should you have any
mishap while on your trip is reason enough to go for the cover
The recovery of important documents lost while on a trip is a welcome relief to the client
Also being able to cater for your hospitalization commitments when in a foreign country is
very much welcome
EXCLUSIONSOFTHECOVER
This kind of cover has strict exclusions to shield the provider from being manipulated into
paying for intentional losses These exclusions include any pre-existing medical conditions
any deliberate exposure by the client to the particular risk covered any loss that occurred to
16
the client while under the influence of alcohol or drug abuse etc These exclusions are usually
included in the contract and the client needs to understand them in order to avoid any
confusion in the future
DETAILSOFTHEQUOTE
The travel insurance industry has quotes to the potential client detailing the kind of
information required to be submitted before signing the contract This includes the name of
the location to where the person is travelling to the type of policy the client intends to
undertake when the client intends to terminate the contract and when the policy should start
Persons travelling for business or leisure need to assess their need for cover and then do their
homework in settling for an appropriate service provider
CHAPTER 2
17
STATEMENT OF PROBLEM
To know Market penetration of IDBI Fortis Life Insurance Company
limited at Chennai The India Insurance industry has grown at phenomenal rate Starting
as a Monopolistic Industry it has transformed into highly competitive industry it is not just
doing something right that matters but it is also about doing nothing wrong Making profit
does not only mean a large customer base but also depends on Penetration level of the
services provided to the customers and premium remittances
The Insurance companies come out with many schemes and offers to attract customers and
to make them invest in various schemes provided by these companies Most Importantly
Market Penetration of companies based on parameters like geographical coverage agency
awareness level of products and sustainability in the market based on product fundamentals is
of paramount importance as they can largely affect the market capitalisation of Insurance
companies The aim of this study would supplement this effort of the company in a small
way
HYPOTHESIS
Market penetration of IDBI Fortis Life Insurance is same throughout Chennai
CHAPTER 3
OBJECTIVES OF THE STUDY
18
For an organization to be successful they need to be equipped with the current position of
their share in the market They need to understand the new and the unidentified potential
available in the market The organization needs to understand the changing scenario taking
place in the market with respect to their business All these could be achieved only by
understanding the market sentiments
Thus through a Study to understand the current status of their Market penetration the
organization can motivate the current efforts of their sales force and efforts could be taken to
reduce the weakness complaints and also could come up with new schemes and facilities
according to the expectations of the Insurers Keeping the above view in the mind objectives
for the study are set and are given below
31 PRIMARY OBJECTIVE
To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at
Chennai
32 SECONDARY OBJECTIVE
The secondary objective of the study is to know awareness of different Insurance products
served in the market by different companies This project can also be a step in small way
towards identifying different channels through which companies can penetrate in market
33 SCOPE OF THE STUDY
The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance
is confined to Insurance Industry location Chennai during the month of March and April This has
been achieved by taking down the respondentrsquos views and responses individually by the
researcher using a Questionnaire The researcher asks the research questions in the questionnaire
to the respondent in a face-to-face fashion and records the response which is then used for the
analysis and interpretation part of the study
Once the study is through the researcher would be in a position to
advise the company about Market Penetration of IDBI Fortis in the respective areas where the
study has been undertaken The study would also help the company to find out the general
preferences factors considered by the Investors with respect to geographical presence
awareness of brand Product agency proliferation in the market customer satisfaction and
retention
19
CHAPTER 4
REVIEW OF LITERATURE
20
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
the client while under the influence of alcohol or drug abuse etc These exclusions are usually
included in the contract and the client needs to understand them in order to avoid any
confusion in the future
DETAILSOFTHEQUOTE
The travel insurance industry has quotes to the potential client detailing the kind of
information required to be submitted before signing the contract This includes the name of
the location to where the person is travelling to the type of policy the client intends to
undertake when the client intends to terminate the contract and when the policy should start
Persons travelling for business or leisure need to assess their need for cover and then do their
homework in settling for an appropriate service provider
CHAPTER 2
17
STATEMENT OF PROBLEM
To know Market penetration of IDBI Fortis Life Insurance Company
limited at Chennai The India Insurance industry has grown at phenomenal rate Starting
as a Monopolistic Industry it has transformed into highly competitive industry it is not just
doing something right that matters but it is also about doing nothing wrong Making profit
does not only mean a large customer base but also depends on Penetration level of the
services provided to the customers and premium remittances
The Insurance companies come out with many schemes and offers to attract customers and
to make them invest in various schemes provided by these companies Most Importantly
Market Penetration of companies based on parameters like geographical coverage agency
awareness level of products and sustainability in the market based on product fundamentals is
of paramount importance as they can largely affect the market capitalisation of Insurance
companies The aim of this study would supplement this effort of the company in a small
way
HYPOTHESIS
Market penetration of IDBI Fortis Life Insurance is same throughout Chennai
CHAPTER 3
OBJECTIVES OF THE STUDY
18
For an organization to be successful they need to be equipped with the current position of
their share in the market They need to understand the new and the unidentified potential
available in the market The organization needs to understand the changing scenario taking
place in the market with respect to their business All these could be achieved only by
understanding the market sentiments
Thus through a Study to understand the current status of their Market penetration the
organization can motivate the current efforts of their sales force and efforts could be taken to
reduce the weakness complaints and also could come up with new schemes and facilities
according to the expectations of the Insurers Keeping the above view in the mind objectives
for the study are set and are given below
31 PRIMARY OBJECTIVE
To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at
Chennai
32 SECONDARY OBJECTIVE
The secondary objective of the study is to know awareness of different Insurance products
served in the market by different companies This project can also be a step in small way
towards identifying different channels through which companies can penetrate in market
33 SCOPE OF THE STUDY
The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance
is confined to Insurance Industry location Chennai during the month of March and April This has
been achieved by taking down the respondentrsquos views and responses individually by the
researcher using a Questionnaire The researcher asks the research questions in the questionnaire
to the respondent in a face-to-face fashion and records the response which is then used for the
analysis and interpretation part of the study
Once the study is through the researcher would be in a position to
advise the company about Market Penetration of IDBI Fortis in the respective areas where the
study has been undertaken The study would also help the company to find out the general
preferences factors considered by the Investors with respect to geographical presence
awareness of brand Product agency proliferation in the market customer satisfaction and
retention
19
CHAPTER 4
REVIEW OF LITERATURE
20
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
STATEMENT OF PROBLEM
To know Market penetration of IDBI Fortis Life Insurance Company
limited at Chennai The India Insurance industry has grown at phenomenal rate Starting
as a Monopolistic Industry it has transformed into highly competitive industry it is not just
doing something right that matters but it is also about doing nothing wrong Making profit
does not only mean a large customer base but also depends on Penetration level of the
services provided to the customers and premium remittances
The Insurance companies come out with many schemes and offers to attract customers and
to make them invest in various schemes provided by these companies Most Importantly
Market Penetration of companies based on parameters like geographical coverage agency
awareness level of products and sustainability in the market based on product fundamentals is
of paramount importance as they can largely affect the market capitalisation of Insurance
companies The aim of this study would supplement this effort of the company in a small
way
HYPOTHESIS
Market penetration of IDBI Fortis Life Insurance is same throughout Chennai
CHAPTER 3
OBJECTIVES OF THE STUDY
18
For an organization to be successful they need to be equipped with the current position of
their share in the market They need to understand the new and the unidentified potential
available in the market The organization needs to understand the changing scenario taking
place in the market with respect to their business All these could be achieved only by
understanding the market sentiments
Thus through a Study to understand the current status of their Market penetration the
organization can motivate the current efforts of their sales force and efforts could be taken to
reduce the weakness complaints and also could come up with new schemes and facilities
according to the expectations of the Insurers Keeping the above view in the mind objectives
for the study are set and are given below
31 PRIMARY OBJECTIVE
To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at
Chennai
32 SECONDARY OBJECTIVE
The secondary objective of the study is to know awareness of different Insurance products
served in the market by different companies This project can also be a step in small way
towards identifying different channels through which companies can penetrate in market
33 SCOPE OF THE STUDY
The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance
is confined to Insurance Industry location Chennai during the month of March and April This has
been achieved by taking down the respondentrsquos views and responses individually by the
researcher using a Questionnaire The researcher asks the research questions in the questionnaire
to the respondent in a face-to-face fashion and records the response which is then used for the
analysis and interpretation part of the study
Once the study is through the researcher would be in a position to
advise the company about Market Penetration of IDBI Fortis in the respective areas where the
study has been undertaken The study would also help the company to find out the general
preferences factors considered by the Investors with respect to geographical presence
awareness of brand Product agency proliferation in the market customer satisfaction and
retention
19
CHAPTER 4
REVIEW OF LITERATURE
20
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
For an organization to be successful they need to be equipped with the current position of
their share in the market They need to understand the new and the unidentified potential
available in the market The organization needs to understand the changing scenario taking
place in the market with respect to their business All these could be achieved only by
understanding the market sentiments
Thus through a Study to understand the current status of their Market penetration the
organization can motivate the current efforts of their sales force and efforts could be taken to
reduce the weakness complaints and also could come up with new schemes and facilities
according to the expectations of the Insurers Keeping the above view in the mind objectives
for the study are set and are given below
31 PRIMARY OBJECTIVE
To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at
Chennai
32 SECONDARY OBJECTIVE
The secondary objective of the study is to know awareness of different Insurance products
served in the market by different companies This project can also be a step in small way
towards identifying different channels through which companies can penetrate in market
33 SCOPE OF THE STUDY
The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance
is confined to Insurance Industry location Chennai during the month of March and April This has
been achieved by taking down the respondentrsquos views and responses individually by the
researcher using a Questionnaire The researcher asks the research questions in the questionnaire
to the respondent in a face-to-face fashion and records the response which is then used for the
analysis and interpretation part of the study
Once the study is through the researcher would be in a position to
advise the company about Market Penetration of IDBI Fortis in the respective areas where the
study has been undertaken The study would also help the company to find out the general
preferences factors considered by the Investors with respect to geographical presence
awareness of brand Product agency proliferation in the market customer satisfaction and
retention
19
CHAPTER 4
REVIEW OF LITERATURE
20
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
CHAPTER 4
REVIEW OF LITERATURE
20
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the
developed economics such as Japan Singapore etc Also with the opening of the Insurance
sector to the Private players have provided stiff competition resulting into quality product
Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation
of India so as to maximize revenue and in turn profit IRDA regulations and norms for the
allocation of funds need to have a comprehensive look In the phase of declining interest rate
and raising Inflation the funds need to be applied in productive areas so as to generate high
return Also in term in clients servicing areas such as premium payment after sales service
policy dispatch redressal of grievances has to be amended In the current scenario LIC has to
provide flexible products suited to the customer requirements Also a proper and systematic
risk management strategy needs to be adopted After the increase in terrorism and destructive
events around the global world such as Sept 11 attack on world trade centre US ndash Taliban
war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is
emerging out in the developed economies A catastrophe bond is one of the alternatives for
reinsurance Finally some policy such as pure term and pension scheme needed to be
addressed massively at both the urban and the rural segment so as to generate high premium
income which will help in the development and growth of the economy There has been
several studies done in past to in the field of insurance sector to know about the market
penetration of various companies But that had been done primarily with well established
brands Very few studies have been conducted on new companies like IDBI Fortis life
insurance One such study done by students of Anna University for ascertaining the same
studied the parameter from various aspects It formed the base for such study done in Chennai
and taken as continued effort for evaluating market penetration of Insurance companies and
IDBI Fortis in particular
CHAPTER 5
21
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
RESEARCH METHODOLOGYampLIMITATION OF STUDY
Research Design
Research design is the specification of procedures for collecting and
analyzing the data necessary to help identify or react to a problem or opportunity such that
the difference between the cost of obtaining various levels of accuracy and the expected clue
of the information associated with each level of accuracy is maximized A Descriptive
research type of research design was applied for the Study on Market Penetration of IDBI
Fortis Life Insurance at Chennai
Sample Design
Probability sampling based on Data collected from 115 respondents was
taken for study in the project due to limitation to collect data already stated above The
boundary region for study was part of urban Chennai
Sample Size
Data was collected from 115 respondents
Sampling Frame
The frame refers to the area where the primary data would be
collected The areas taken into consideration for the study purpose includes Parrys Mount
road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily
because these are those areas which represents the most part of Chennai based on Income
level and cosmopolite of the city in order to give accurate findings representing the whole of
Part of the city The category of respondents included Business class respondents in service
etc
Data Collection Procedure
22
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
Data collection is the most impeccant aspects in the research process The data is collected
from the respondents using a structured questionnaire There are two types of data ie
Primary data and Secondary data
Primary Data - This type of data is collected directly from the respondents by the
researcher using the questionnaire as an instrument and personal interview as the
communication medium for collecting it Researcher directly visits the Retailers within the
sampling frame and asks the research questions to each respondent and records it for the
further analysis and interpretation purpose
Secondary Data ndash The researcher collects this type of data indirectly before starting of
with his research activities These were collected from the website of the Company IRDA
Business maps of India SEBI
Features of Questionnaire
The questionnaire was designed keeping in mind the research objectives for
the study respondentrsquos ability and willingness to answer accurately etc The preliminary
considerations required for the preparation of the questionnaire have been taken care
The type of questions incorporated in the questionnaire includes
1) Open-ended Questions Open-ended questions are those questions where
no alternatives are provided and the respondent answers within the implied limit
Eg Your complaints remarks suggestions for improving the services of
company
2) Dichotomous Questions These questions are closed ended questions with
only two options like yesno truefalse
3) Multiple choice Questions These questions include 3 to 7 specified
options and the respondent should select form the choices given
Eg Are you satisfied with its performance IDBI schemes
(a) Very Satisfied (b) Satisfied
(c) Neutral
23
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
STATISTICAL TOOLS USED
Frequency Distribution
Histogram
Pie chart
Arithmetic Mean
Correlation
Scatter diagram
Chi square test
24
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
LIMITATIONS OF THE STUDY
The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai
has various limitations Some of the limitations that would be subjected to the research are
given below
1 Interaction of the researcher with uneducated people who are merely unaware of the
word questionnaire itself is one of the main limitations to the research
2 Unresponsive respondents failing to understand Insurance as a needful option for long
term financial safety
3 Direct sales channel adopted by most companies creating fear among respondents of
depriving their privacy if they share certain access information(Contact number)
4 To target and create correct representation of whole area of interest for study during
this short span of time is another limitation
5 The timing for undertaking this Project during the peak summer season had
detrimental effect in collecting the data from the respondents
CHAPTER 6
25
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
COMPANY PROFILE
IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading
private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which
enjoys a significant status in their respective business segments In this venture IDBI owns
48 equity while Federal Bank and Fortis own 26 equity each
IDBI Fortis launched its first set of products across India in March 2008 after receiving the
requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today
we offer our services through a vast nationwide network across the branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners
At IDBI Fortis we endeavour to deliver products that provide value and convenience to the
customer Through a continuous process of innovation in product and service delivery we
intend to deliver world-class wealth management protection and retirement solutions to
Indian customers
IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development
bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved
into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost
commercial banks with a wide range of innovative products and services serving retail and
corporate customers in all corners of the country from over 620 branches and more than 1050
ATMs The Bank offers its customers an extensive range of diversified services including
project financing term lending working capital facilities lease finance venture capital loan
syndication corporate advisory services and legal and technical advisory services to its
corporate clients as well as mortgages and personal loans to its retail clients As part of its
development activities IDBI Bank has been instrumental in sponsoring the development of
key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange
Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd
26
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence
in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread
across India The bank provides over four million retail customers with a wide variety of
financial products Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network The Bank operates on the core banking
platform and is RTGS NEFT enabled through which it offers state-of-the-art technology
enabled products and services In addition to interconnected branches and ATMs the Bank
has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any
Where Banking debit cards online bill payment and call centre facilities to offer round the
clock banking convenience to its customers The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations
FORTIS is an international insurance group composed of AG Insurance the overall market
leader in life and non-life insurance in Belgium distributing its insurance products through
the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis
Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-
life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)
Portugal China Malaysia Thailand and India
Diagrammatic representation of Presence of Fortis worldwide
BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures
27
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
Our Values
Transparency Crystal Clear communication to our partners and stakeholders
Value to Customers A product and service offering in which customers perceive
value
Rock Solid and Delivery on Promise This translates into being financially strong
operationally robust and having clarity in claims
Customer-friendly Advice and support in working with customers and partners
Profit to Stakeholders Balance the interests of customers partners employees
shareholders and the community at large
28
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
The Wealthsurance Foundation Plan enables you to save and build wealth to meet your
financial goals However unlike other investment alternatives it also enables you to achieve
your wealth goals even in the event of unexpected death accidents disablement or serious
illness
The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are
achieved by protecting that plan with insurance benefits
29
IDBI FORTIS PRODUCTS
WEALTHSURANCE
TERMSURANCE
INCOMESURANCE
BONDSURANCE
RETIRESURANCE
HOMESURANCE
MICROSURANCE
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
With Wealthsurance Foundation Plan you can
Save into the Plan as much money as you want whether at one time at regular
intervals or as per your convenience
Build your wealth by choosing the investments your savings go into and change them
from time to time as you wish
Get adequate life insurance cover with a unique built-in terminal illness benefit so
that the financial security of your loved ones is assured and your plans are always
realised
Get health accident and disablement benefits so you can ensure that your wealth-
building plans are not affected by unexpected medical expenses or loss of earning
capacity in case of serious ailments accidents or disablement
Grow wealth faster with tax free income thus making the whole package even more
attractive
30
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
Term insurance plan is a protection plan that allows you the flexibility to choose the type of
cover most suited to you
Get income protection benefits in case of untimely death of a major bread-earner
in the family
Fulfil the wishes and aspirations of the surviving family members
Get the advantage of lower premiums by entering at a lower age as this option
eases the increased liability
Choose the type of cover your need
Level cover
Increasing cover
Level cover with Return of Premium
You can pay (Single Limited) or regular premium
31
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors
Termsurance Grameen Suraksha plan
IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance
plan targeted at the rural population It is an ideal plan to protect your family members in the
event of unfortunate demise of the major income earner
The key features of Termsurance Grameen Suraksha
Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725
or Rs19633 according to your budget
Eligibility This plan is available for men and women from age 18 up to age 50
Term This plan has a fixed term of three years
Death Benefit In the event of unfortunate death of the insured person during the
policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs
20000 depending on the single premium paid
Termsurance Grameen Bachat Yojana
32
Termsurance
Termsurance Grameen
Suraksha plan
Termsurance
Protection Plan
Termsurance Grameen
Bachat Yojana
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan
targeted at the rural population It is an ideal plan to protect family members in the
event of unfortunate demise of the major income earner and also to save for specific
events like repayment of loan daughters marriage or childs education The plan
offers life cover at a nominal cost along with the option of refund of premiums paid
by you at maturity
Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual
Payout along with insurance protection which will help you to reach you goals with full
confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per
your individual and familyrsquos future requirements Moreover it also allows you to choose
Premium Payment Period Payout Period Payout Options and more
33
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
Guaranteed Return on your investment with life insurance
Bondsurance is a single premium plan which allows you to make a one-time investment and get
a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your
investment At the end of the chosen period you will receive a guaranteed maturity amount
Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In
case of death before the maturity date a Death Benefit which is also guaranteed will be paid
Thus you can get life insurance cover while earning an assured return on your investment
Guaranteed Return on your investment
Bondsurance gives you guaranteed returns on your one-time investment All you have to do is
choose the Maturity Benefit and the Maturity Period for your investment Based on your choice
the investment you have to make by way of single premium is determined
Maturity Benefit
You can choose any amount as the Maturity Benefit The amount you choose is guaranteed
34
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
and will be paid to you on the maturity date
Maturity Period
You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period
is the policy term of your Bondsurance Plan
Single Premium Amount
The single premium amount is based on your choice of Maturity Benefit Maturity Period
and the age of the Insured Person in completed years as on the date of application as per the
Premium Table below Minimum single premium payable is Rs 20000 There is no
maximum limit
The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you
accumulate your funds for your retirement The plan is tailor-made for the ever changing
investment environment with built-in flexibilities to manage your investment mix On
35
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
retirement you can use the maturity proceeds to buy an annuity so that you have a monthly
paycheck for life even after you stop earning your regular income
HOMESURANCE
The Homesurance Protection Plan is a reducing term plan which provides insurance cover
equal to the outstanding balance of your home loan In the unfortunate event of death of the
home loan borrower the insurance cover enables repayment of the home loan liability
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were
not to be there it could become a serious burden to the family The Homesurance Protection
Plan protects against this liability The specifics of the plan are as follows
36
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
1 Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of
monthly instalments Accordingly the cover amount under the Homesurance Protection Plan
also reduces with time to reflect the outstanding loan amount At the time you take the plan
you will receive a Policy Schedule based on the amount and terms of your loan which will
show you the reducing cover amount over time
2 Benefit Amount is paid on death
In the event of death of the insured we will pay either the cover amount as per the
Homesurance Protection Plan Policy Schedule as on the date of death or the actual
outstanding balance in the insured loan account as on the date of death whichever is higher
Death due to any cause including illness or accident is covered under the plan Death whether
in India or abroad is also covered under the plan
The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
A Affordable Protection
Life insurance cover for group members at affordable cost
37
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
B Wide Coverage
Members aged between 18 to 60 years can be covered
Sum insured between Rs 5000 to Rs 50000 per member can be availed
C Hassle-Free Issuance
No medical reports required even up to the maximum sum insured of Rs 50000
CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts and other Statistical tools
and these are used to interpret the results from the data The inferences given below the
Table will make the reader to understand the problem as well as the solution to the problem
Findings suggestions and conclusion to this project are based on data analysis
38
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
TABLE 1
Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai
Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10
CHART 1
Chart showing Market Penetration of companies based on Geographical coverage
INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company
39
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
TABLE 2
Table showing Percentage coverage of companies (Based on Brand Visibility)
Company PercentageLIC 7
ICICI PRU 35SBI LIFE 31
KOTAK MAHINDRA 14BAJAJ ALLIANZ 10
IDBI Fortis 3
CHART 2
Chart showing visibility for the companies in Chennai based On number of branches
40
LIC
SBI LIF
E
KOTAK MAHIN
DRA
IDBI F
ORTIS
BAJAJ A
LLIANZ
ICIC
I02468
1012
2
9
4
13
10
Chart showing Market Penetration of companies based on Ge-ographical coverage
COMPANY
NU
MB
ER
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
INTERPRETATION
ICICI has largest coverage in the market covering 35 of the area
This puts ICICI in advantageous position in comparison to other companies in catering to
large customer base effectively
TABLE 3
Table showing Market penetration for of IDBI Fortis Life Insurance in
comparison to other companies based on number of Investors
SAMPLE SIZE 115
Company Number of Investor
LIC 77
SBI LIFE 19
Kotak life 13
ICICI Prudential 17
Bajaj Allianz 10
IDBI Life Insurance 8
CHART 3
Chart showing Market Penetration of IDBI with respect to other companies
41
7
31
14
310
34
PERCENTAGE COVERAGE BASED ON NO OF BRANCHES
LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0
102030405060708090
77
1913 17
10 8
C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors
Company
No
Inve
stor
INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry
TABLE 4
Table showing percentage market share of Insurance companies
Company Market Share ()LIC 53
SBI Life 13ICICI PRU 12
Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6
CHART 4
Chart showing market capitalisation of companies based on number of investors
42
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
53
13
9
12
7
6
Market Capitalisation
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION
LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest
TABLE 5
Correlation Table showing correlation between Income level of Investor and Investment into ULIP
Correlation Table
INCOME INVESTMENT
INCOME Pearson Correlation 1 733
Sig (2-tailed) 159
N 5 5
INVESTMENT Pearson Correlation 733 1
Sig (2-tailed) 159
N 5 5
INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product
43
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
CHART 5
Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents
0 100000 200000 300000 400000 500000 600000 700000 80000005
1015202530354045
f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931
SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP
INCOME
FREQ
UEN
CY
INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP
TABLE 6
Table showing awareness level of different Investment options available in the Market
INVESTMENT OPTION FREQUENCY
Saving FD 97
Government Scheme 46
Shares 38
Insurance 83
ULIP 29
Mutual Funds 31
CHART 6
Chart showing awareness level of different Investment options available in the Market
44
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
Saving FD Government Scheme
Shares Insurance ULIP Mutual Funds0
20
40
60
80
100
12097
4638
83
29 31
CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS
Investment options
Freq
uen
cy
INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level
TABLE 7
Table showing Market Penetration of different Investment options on actual Investment continuum by respondents
INVESTMENT OPTIONS Frequency
SAVINGSFD 79
GOVERNMENT SCHEMES 26
SHARES 19
INSURANCE 73
ULIP 23
MUTUAL FUNDS 13
CHART 7
Chart showing Market penetration of different Investment options
45
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
SAVIN
GSFD
GOVERNMENT SC
SHARES
INSU
RANCEULIP
MUTUAL FUNDS
0102030405060708090 79
2619
73
2313
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
INVESTMENT OPTIONS
FRE
QU
EN
CY
INTERPRETATION
Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person
TABLE 8
Table showing Penetration between awareness level and Investment into various Investment Options
INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13
ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2
INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of
46
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
CHART 8
Chart showing Market Penetration of Different Investment Options based on actual investment
34
11
8
31
10
6
CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS
SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS
INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together
TABLE 9
Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents
Correlation Table
Awareness Investment
Awareness Pearson Correlation 1 980
Sig (2-tailed) 001
N 6 6
Investment Pearson Correlation 980 1
Sig (2-tailed) 001
N 6 6
Correlation is significant at the 001 level (2-tailed)
INTERPRETATION There is high degree of correlation between awareness level and actual investment
47
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
CHART 9Scatter diagram to demonstrate coefficient of determination between awareness
level and their Investment in different options
0 10 20 30 40 50 60 70 80 900
20
40
60
80
100
120
f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028
NO OF INVESTORS
Aw
aren
ess
INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents
TABLE 10
Table showing Frequency distribution for Objective of Investment of respondents
OBJECTIVE FREQUENCY
RETURN 38
TAX SHELTER 19
CHILDREN EDUCATION 19
PENSION 6
FUTURE NEEDS 33
CHART 10
48
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
Chart showing Objective of Investors for which Investments are made
33
1717
5
29
CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS
RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS
INTERPRETATION
Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes
TABLE 11
Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11
49
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
CHART 11
Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
dentia
l
Bajaj A
llian
z
IDBI L
ife In
sura
nce0
10
20
30
40
50
60 55
94 5
1 1
22
10 9 12 9 7
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI
TRADITIONALULIP
COMPANY
NO
OF
IN
VE
STO
RS
INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan
TABLE 12
Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan
Company Market Share()LIC 73
SBI Life 12ICICI PRU 7
Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1
CHART 12
50
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
Chart showing Market penetration of companies based on Investment in traditional plan
73
12
57
1 1
CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes
TABLE 13
Table showing Percentage Market Penetration based on Investment in ULIP
Company Market Share()LIC 32
SBI Life 15ICICI PRU 17
Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10
51
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
CHART 13
Chart showing Percentage Market Penetration of companies based on Investment in ULIP
32
14
13
17
13
10
CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI
LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance
INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base
TABLE 14
Table showing Awareness level of Companies
COMPANY Awareness Level
LIC 105
SBI LIFE 30
Kotak life 22
ICICI Prudential 27
Bajaj Allianz 18
IDBI Life Insurance 13
52
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
CHART 14
Chart showing awareness level of companies
LIC
SBI L
IFE
Kotak li
fe
ICIC
I Pru
den
Bajaj A
llian
z
IDBI L
ife In
s
0
20
40
60
80
100
120105
3022
2718
13
Awareness Level
Company
Freq
uen
sy
INTERPRETATION
The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company
TABLE 15
Market Penetration of IDBI Fortis schemes
SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes
SCHEMES NO OF INVESTORS
Wealthsurance 47Retiresurance 12
Bondsurance 7
Incomesurance 19
Homesurance 6
53
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
Termsurance 7
Microsurance 2
CHART 15
Chart showing Market Penetration of IDBI Fortis schemes
Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0
5
10
15
20
25
30
35
40
45
50 47
12
7
19
6 7
2
CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES
SCHEMES
NO
OF
INV
EST
OR
S
INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company
TABLE 16
CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE
INSURANCE CO LIMITED
H0=Market penetration of IDBI Fortis Same as other companies
H1=Market penetration of IDBI Fortis Not same as other companies
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 2 9 4 10 3 1 29
INVT IN TR PLAN
55 9 4 5 1 1 75
INVT IN ULIP 22 10 9 12 9 7 69
AWARENESS 105 30 22 27 18 13 215
Total 184 58 39 54 31 22 388
54
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
Expected Values
LIC SBI LIFE KOTAK LIFE
ICICI PRU
BAJAJ ALLIANZ
IDBI FORTIS
Total
BRANCHES 1375 434 291 404 232 164 29
INVT IN TR PLAN
3557 1121 754 1044 599 425 75
INVT IN ULIP 3272 1031 694 960 551 391 69
AWARENESS 10196 3214 2161 2992 1718 1219 215
Total 184 58 39 54 31 22 388
Hypothesis TestingDOF 15
2 stat 5693
p-Value 000000
Alpha 5
Result Reject
INTERPRATATION
On the basis of 2 test employed on the data given above it can be concluded that market
penetration of IDBI Fortis is not optimum (Null hypothesis rejected)
2 cal gt 2
tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not
same as other companies
SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE
ON DATA INTERPRETATION
SRTENGTH
Brand name of IDBI bank which is very favourable for the company to source
business
Brand name of Fortis group one of largest hospital group offering health
services since decades
Good knowledgeable experienced staff having profound experience in
Insurance industry
55
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
Federal bank one of the oldest private players in banking sector in India
having stake in the company
WEAKNESS
Minimal geographical coverage
Awareness level very low
Few product options to source business
OPPORTUNITY
To penetrate into low income group segment
Booming insurance industry
To source client through corporate hospital channel
THREATS
Large number of companies planning to enter Insurance industry
Already well established brands much ahead of IDBI Fortis
CHAPTER 8
FINDINGS
Market penetration of IDBI FORTIS is not same as other companies
LIC is market leader way ahead of all other private companies in sourcing business
56
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
ICICI Prudential has the largest geographical coverage
IDBI Fortis Life Insurance has to go long way to catch up with well established
brands
Traditional plan is still product of choice among investors despite several companies
trying to woo investment in ULIP
There is high degree of correlation between awareness level and actual investment
There is high degree of correlation between income level of respondents and their
investment into ULIP
Wealthsurance has highest market penetration among IDBI Fortis products
CHAPTER 9
RECOMMENDATIONS
57
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
IDBI Fortis should concentrate on Bondsurance and Microsurance to tap
the unexplored low income group segment
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communications
IDBI Fortis should try to increase number of branches in order to increase
its presence
Company should employ a new channel that is corporate hospital channel
to encase large hospital infrastructure of it stakeholder Fortis
Company should recruit more advisors to penetrate in the market
Company should come with Low premium policies to gain a significant
Insight into the market
CHAPTER 10
CONCLUSION
58
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
The Insurance Industry is becoming fiercely competitive with advent of large number of
companies into this sectorLIC remains top brand despite all the competition Investors
evaluate number of factors like awareness level of product Brand image of company and
products ability to meet their requirements before making investment into any plan Most of
the companies are behind upper middle and high income group to source business even
though market potential from other income group is also significant and it can also be
attributed to LICrsquos still maintaining lead over other companies
APPENDICES
QUESTIONNAIRE
Name
Address
59
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
Mobile No E-mail
Marital Status
Occupation
1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________
Annual Income
1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs
1 Are you aware of the following investment options
1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)
1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
2 Have you invested in any of the following investment schemes
1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds
3 Objective for which Investment is made
1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs
4 Have you invested in Market linked plans (ULIP) of IDBI Fortis
1048576 Yes 1048576 No
60
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
5 Have you invested in any of the Life Insurance Companies listed below
1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance
6 Which company according to you serves your Investment needs in Insurance schemes best
Insurance Company Traditional plan ULIP plan
LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576
7 Which Insurance plan of IDBI Fortis do you know
1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance
8 Reasons for selecting the IDBI Fortis Products
1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return
9 What do you expect from a Unit-linked plan (ULIP)
1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above
10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)
61
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
Company Name Term-Surance
Wealth-surance
Income-surance
Retire-surance
Bond-surance
LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance
1048576 1048576 1048576 1048576 1048576
ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576
11 Level of risk that you are willing to take in ULIP
1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return
12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad
13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance
scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim
Settlement
14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT
REFERENCE
62
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-
WEBSITES
wwwidbifortiscom
wwwwikipediaorg
wwwsebiin
wwwirdain
wwwscribdorg
wwwprenhallcom
BOOKS-
Marketing management11th edition
- By Philip Kotler
Statistical Methods
- By S P Gupta
Risk management and insurance
-By Harold D Skipper W Jean know
Research Methodology Methods amp Techniques
-Dr C R Kothari
63
- CHAPTER 1
- INTRODUCTION
- INDUSTRY PROFILE
- Life Insurance Policies
- Endowment Policy India
- Group Insurance Policy
- Pension Plan or Annuities
- Loan Cover Term Assurance Policy
- Term Life Policy
- Unit Linked Insurance Plan
- TheGeneralInsuranceIndustryinIndia In India general insurance is a term used to mean all non life insurance business In other countries terms like property casualty insurance and non life insurance are used
- Indias Home Insurance Industry
- Indias Health Insurance Industry
- Indiarsquos Motor Insurance Industry
- Indias Travel Insurance Industry
-
- The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families
-