Summer Training Report- Mukesh Kumar

8/3/2019 Summer Training Report- Mukesh Kumar

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ASUMMAR TRAINING PROJECT

REPORTON

Distribution Analysis and AgencyBusiness

AVIVA LIFE INSURANCECOMPANY

THE PARTIAL FULLFILLMENT OF THE REQUIREMENTFOR THE AWARD OF THE DEGREE OFMASTER OF BUSINESS ADMINISTRATION

UNDER THE KIND SUBMITTEDBY:GUIDENCE OF: MUKESHKUMARMISS. DUPINDER KAUR Roll No

90212233193

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LECTURER (CTIMS) MBA 3RD

(SEM.)SHAHPUR JALANDHAR

(SESSION 2009-2011)

SUBMITTED TO:CT.INSTITUTE OF MANAGEMENT STUDIES JALANDHAR

(AFFILATE TO PUNJAB TECHNICAL UNIVERSITY JALANDHAR (PUNJAB)

STUDENT DECLARATION

I hereby declare that the work presented in this projectentitled Distribution analysis of agency businesswith Aviva life insurance company submittedtowards completion of project in started 3rd semester ofM.B.A at the CT Institute of Management StudiesShahpur Jalandhar, is an authentic record of myoriginal work carried out under the guidance of lecturerMiss Dupinder kaur .I hereby declare that all the information given by me in

this project is true to the best of my knowledge.

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MUKESH KUMAR

GUIDE CERTIFICATE

This is to certify that Mukesh kumar of MBA 3rd

semester bearing university roll no 90212233193 hascompleted his summer training project under myguidance.

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Project Guide

Miss Dupinder

Kaur

ACKNOWLEDGMENT

Nothing concrete can be achieved without an optimal

combination inspiration and preparation. No work can be

accompanied without taken the guidance of experts. It is

only critics from in generous that help transform a

product into a quality product.

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For this, I am grateful to Mr. Shive Nair Narayan for his

constant encouragement and invaluable critical

suggestions given during the review meetings. His timely

advice and help proved his commitment and welfare of

his students and the institute as a whole.

Last but not the least, our sincere thanks to all the

members who were a vital trust to our thoughts and

needs throughout the functions assigned to group to get

done and prove our best. Finally thanks to others at

CTIMS, who put in numerous hours to make the tangible.

INDEX

Chap. No TOPICS PAGENO

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1 INTRODUCTION 9-16

2 STUDY TOPIC- DISTRIBUTION ANALYSISAND AGENCY BUSINESS

17-38

3 REVIEW OF LITERATURE 39-50

4 OBJECT NEED AND SCOPE OF STUDY 51-53

5 RESEARCH METHODOLOGY 54-56

6 DATA ANALYSIS & INTERPRETATION 56-65

7 SUGESTION AND RECOMMANDATION 66-68

8 ANNEXURE 69-72

9 BIBLIOGRAPHY 73-74

TABLE LIST

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Sr.No Table no Page No

1. Figure no -1.1 58








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EXECUTIVE SUMMARY

I have done my summer Internship Project from Aviva life

insurance company India Limited, Jalandhar. During my Winter

Internship Project; I implemented many concepts of marketing in

the real life situation.

This project work helped me to apply theoretical knowledge

into practical aspects on collected data which was a worthy

experience and during the discussion with company guide I

realized that how important the project report is for the company

and me. I also realized how team work, goal orientation and

managing interpersonal relationships are integral part of

professional life.

In addition, I understood products of my company and its

targeted customers. Also I got information what are the basic

categories of Insurance products which are sold in the market

and what are basic criteria for becoming the advisors of Aviva life

insurance Company limited.

I understood about the competitors of my company such as

TATA AIG, Bajaj Allianz, MetLife etc and their products, after

collecting data and analyzing it. There are a lot of insurers from

both home and abroad, coming to Indian insurance market with

their innovative products and services, which were previously not

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available to the individuals. What came as a boon for insurance

was

a paradigm shift in consumer perception and preference due to a

rainbow of benefits for exigencies like critical illness, disability

and Accidental death, which were unthinkable. As my project

titled Distribution Analysis and Agency Business in

this topic I studied so many things I Studied the customer

preferences towards for becoming advisors of Aviva Life

Insurance Company & Recruitment of Insurance advisors re-

questionnaire a full understanding of the organizations goals and

mission. Since Aviva believes in getting business from its team of

unit managers, the advisors who are working under the unit

managers are re-questionnaires to deliver their best. The unit

managers the key activity is to recruit Insurance advisors. These

advisors are the individual agents. The key areas of work are to

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build a team, arrange for their training at the organization,

company them on their visits to clients and most importantly

motivate them.

In this regard the team of advisors with which each

unit manager works with is carefully chosen and this indeed

becomes a monthly task.

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INTRODUCTION

Aviva Life Insurance Company Limited was incorporated on July20, 2000. The authorized capital of the company is Rs.2300Million and the paid up capital is Rs. 1500 Million. The Company isa joint venture of Dabur (74%) and Aviva UK (26%).

The Company was granted Certificate of Registration for carryingout Life Insurance business, by the Insurance Regulatory andDevelopment Authority on may 24, 2002. It commencedcommercial operations on june 1, 2002, becoming one of the first

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few private sector players to enter the liberalized arena.

The Company is now operational in Mumbai, New Delhi, Pune,Chennai, Kolkata, Bangalore, Chandigarh, Ahmedabad,

Hyderabad, Lucknow, Nasik, Jaipur, Cochin, Meerut, Mangalore,Ludhiana & Jalandhar.

Till March 31,2002 the Company has issued 100,000 policestranslating into a Premium Income of around Rs. 1,200 Millionand a sum assured of over Rs.15,000 Million.

The Company recognizes that the driving force for gaining

sustainable competitive advantage in this business is superiorcustomer experience and investment behind the brand. TheCompany aims to achieve this by striving to provide world classservice levels through constant innovation in products,distribution channels and technology based delivery. TheCompany has already taken significant steps to achieve thisgoal..

Vision and Mission

Their vision is to make Aviva Life Insurance Company thedominant new insurer in the life insurance industry. They hopethey achieve their goals and targets through their commitment toexcellence, focus on service, speed and innovation, andleveraging our technological expertise.

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The success of the Organization will be founded on its strongfocus on values and clarity of purpose. These include:

Understanding the needs of customers and offering themsuperior products and service

Building long lasting relationships with their partners

Providing an enabling environment to foster growth and

Learning for their employees.

Management

Board of Directors

The AVIVA Life Insurance Company Limited Board comprisesreputed people from the finance industry both from India andabroad.

Name Designation

TR Ramachandran Chief Executive Officer & Managing Director

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Rajeev Arora Director, Finance & Actuarial

Monica Agrawal Director, Corporate Initiatives

Vishal Gupta Director, Marketing

Sumit Behl Director, Business Risk & Internal Audit

Ravi BhadaniCompany Secretary and Senior Vice President- Compliance &Legal

Munish Sharda Director, Direct Sales Force

Rishi Piparaiya Director, Bancassurance

Sandip Mallik Director, HR

Jyoti Vaswani Chief Investment Officer & Director, Fund Management

K K Dharni Appointed Actuary

Snehil Gambhir Sr. Vice President, Transformation & Services

Rajiv Sehgal Chief Information Officer & Sr, Vice President, IT

Vijayalakshmi Natarajan Senior Vice President, Operations

Corporate Office:

Aviva life insurance company India Ltd

Aviva tower sector road opp.course DLF phase-5

Sector 43 Gurgaon 122003

Telephone Number: 1800-180-2244 or 0124-2709046

SMS AVIVA to 5676737

Website: http://www.Aviva india.com

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Claiming process

Aviva life insurance is committed to securing the future of

your loved ones, particularly in their time of need. Towards this

end, we have developed and implemented a claim process to

ensure the payment of genuine and legitimate claims at the

earliest and to without false claim to protect the interests of our

other policyholders.

In line with our philosophy of easing the financial burden on

policyholders and their nominees AVIVA insurance with make a

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claim payment within a working days from receipt of the last re-

questionnaires.

Claim process

Documentation

Forms

Claim Process :-

Our claim is

1. Handled personally

2. Easy to understand

3. Flexible enough for speedy decisions.

4. Simple documentation

Aviva have four step claim process

1. Claim out to intimate to Aviva insurance about the

claim.

2. Aviva life insurance to help the claim out to complete

the documentation.

3. Claim out to submit the questionnaire documents.

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4. Aviva insurance company to take decision on the claim.

Documentation:

Standard documents re-questionnaire for claim

processing.

Written intimation of the claim.

Original policy document.

Death certificate / hospital certificates.

Claimants statements with discharge form.

Depending on the facts and circumstances of the claim, the

company may requestionnaires for some additional

documents.

Forms

The form below will help you file action

Critical illness/major surgical Assistance intimation.

Death claim intimation.

Claimants statements (Accidental death claim)

Claimants statements (Non- Accidental death claim)

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Insurance Solutions for Individuals

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Aviva life insurance has a wide array of insurance plans that have

been designed with the philosophy that different individuals are

bound to have differing insurance needs.

The ideal insurance plan is one that addresses the exact

insurance needs of the individual that will depend on the age and

life stage of the individual apart from a host of other factors.

Savings & Wealth Creation Solutions

Wealth Creation Plans give the customer the dual benefit of

protection along with the potentially higher returns of market-

linked instruments. The most important benefit of ULIPs is the

flexibility they give the customer in choosing the premium

amount and also choosing the underlying fund in which this

money is to be invested. Wealth creation plans also offer the

customer more liquestionuidity options as compared to

traditional plans. As such,

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ULIPs are ideal for customers who want the protection of a life

cover to be allied to the returns of market linked instrument

giving them an unmatched combination of benefits.

Cash Plus is a transparent, feature-packed savings plan that

offers 3 levels of p33333rotection as well as liquestionuidity

options.

SavenProtect is a traditional endowment savings plan that

offers life protection along with adequestionuate returns.

CashBack is an anticipated endowment policy ideal for

meeting milestone expenses like a childs marriage, expenses for

a childs higher education or purchase of an asset. It is available

for terms of 15 and 20 years.

LifeTime Super & LifeTime Plus are unit-linked plans that

offer customers the flexibility and control to customize the policy

to meet the changing needs at different life stages. Each offer 4

fund options ? Preserver, Protector, Balancer and Maximiser.

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Life Link Super is a single premium unit linked insurance Plan

which combines life insurance cover with the opportunity to stay

invested in the stock market.

Premier Life Gold is a limited premium paying plan specially

structured for long-term wealth creation.

Invest Shield Life New is a unit linked plan that provides

premium guarantee on the invested premiums and ensures that

the customer receives only the benefits of fund appreciation

without any of the risks of depreciation.

Invest Shield Cash back is a unit linked plan that provides

premium guarantee on the invested premiums along with flexible

liquestionuidity options.

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Protection Solutions

The sole objective of these plans, as their name indicates, is to

serve the protection needs of the customer and by doing so,

safeguard ones family from the financial implications of

unfortunate circumstances than one cannot foresee.

Under the Protection Plans platform, Aviva life insurance brings

the following products:

Life Guard is a protection plan, which offers life cover at very

low cost. It is available in 3 options level term assurance, level

term assurance with return of premium and single premium.

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Home Assure is a mortgage reducing term assurance plan

designed specifically to help customers cover their home loans in

a simple and cost-effective manner.

Child Plans

Education insurance under the AVIVA YOUNG SCHOLAR

brand provides guaranteed educational benefits to a child along

with life insurance cover for the parent who purchases the policy.

The policy is designed to provide money at important milestones

in the childs life. Aviv young scholar plans are also available in

unit-linked form ? both single premium and regular premium.

Retirement Solutions

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The primary objective of a retirement plan is to help you provide

for your financial needs in your post retirement years.

Forever Life is a traditional retirement product that offers

guaranteed returns for the first 4 years and then declares

bonuses annually.

Life Time Super Pension is a regular premium unit linked

pension plan that helps one accumulate over the long term and

offers an annuity option (guaranteed income for life) at the time

of retirement.

LifeLink Super Pension Is a single premium unit linked

pension plan.

Health Solution

Under Health Product Suite Aviva insurance offers plans under

the following major need categories:

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Hospital Care : Get a benefit amount if you are

hospitalized for more than 24 hours i.e. at least 2

consecutive nights and must be charged for 2 days room

expenses.

The benefit amount is fixed and will be paid irrespective of

actual hospitalization expenses .

DHCB is payable for hospitalization up to 90 days per policy

year, which includes any days spent in Intensive Care Unit.

Health Assure and Health Assure Plus: Health Assure is a

regular premium plan which provides long term cover against 6

critical illnesses by providing policyholder with financial

assistance, irrespective of the actual

medical expenses. Health Assure Plus offers the added

advantage of an equestionuivalent life insurance cover .

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Cancer Care: is a regular premium plan that pays cash

benefit on the diagnosis as well as at different stages in the

treatment of various cancer conditions.

Group Insurance Solutions

AVIVA insurance also offers Group Insurance Solutions for

companies seeking to enhance benefits to their employees.

Group Gratuity Plan: Aviva some plans helps employers fund

their statutory gratuity obligation in a scientific manner. The plan

can also be customized to structure schemes that can provide

benefits beyond the statutory obligations.

Group Superannuation Plan: Aviva offers both defined

contribution (DC) and defined benefit (DB) superannuation

schemes to optimise returns for the members of the trust and

rationalise the cost. Members have the

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option of choosing from various annuity options or opting for a

partial commutation of the annuity at the time of retirement.

Group Immediate Annuities: In addition to the annuities

offered to existing superannuation customers, we offer

immediate annuities to superannuation funds not managed by

us.

Group Term Plan: Aviva flexible group term solution helps

provide affordable cover to members of a group. The cover could

be uniform or based on designation/rank or a multiple of salary.

The benefit under the policy is paid to the beneficiary nominated

by the member on his/her death.

Flexible Rider Options

Aviva Life offers flexible riders, which can be added to the basic

policy at a marginal cost, depending on the specific needs of the

customer.

Accident & disability benefit: If death occurs as the result of

an accident during the term of the policy, the beneficiary

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receives an additional amount equestionual to the rider sum

assured under the policy. If the death occurs while

traveling in an authorized mass transport vehicle, the beneficiary

will be entitled to twice the sum assured as additional benefit.

Critical Illness Benefit: protects the insured against financial

loss in the event of 9 specified critical illnesses. Benefits are

payable to the insured for medical expenses prior to death.

Income Benefit: This rider pays the 10% of the sum assured

to the nominee every year, till maturity, in the event of the death

of the life assured. It is available on SmarKid and CashPlus

Waiver of Premium: In case of total and permanent

disability due to an accident, the future premiums continue to be

paid by the company till the time of maturity. This rider is

available with LifeTime Super, LifeTime Super Pension and

CashPlus.

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Organizational Structure (Sales Division) of

AVIVA Company

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Chief Executive Officer

Head of Sales

Head of Sales


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Branch head or SalesManagerZonal

Manager

RECRUITMENT PERSPECTIVE

Globalization and the knowledge economy have created profound

impact on the structure and operation of organization. The third

generation reforms, using second generation tools for employing

first generation are at best an organizational anachronism.

Obviously a great deal of innovation and fresh perspective on the

entire body of organizational philosophy is critical for the success

of the New Age of digital business environment.

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Front Line Unit Managers

Insurance AdvisorsInsurance Advisors


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Manpower is critical for sustained competitive advantage in an

organization. The recruitment process acts as the link that

connects the organization and employees. The growing

competitive environment among organization has result in

demand to recruit highly skilled employees. As a result the

recruitment strategies of firms have also undergone a paradigm

shift. Expectation level of employees have shifted focus from the

traditional perspective of contractual employment. Employees

seek specialized generalists rather than generalized specialist.

Skill based recruitment is the norm of present times. As a

consequestionuence, job seekers need to mould and

constantly update themselves to remain employable in the fast

changing workplace.

With the change in perception of employment philosophy,

recruitment have become innovation in their method of

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recruitment. The response of the potential job seekers to the

situational demand is termed as behavioral response. Research

of human psychology indicates that such response is likely to be

replicated in the actual job situation. Hence, there is a strong

case for the behavioral recruitment model likewise, the employee

has expectations from the organization and expects the

employee to be the best employee.

Employment is all about a pro arrangement between the

employer and the job seeker, where both parties negotiate their

respective expectation of each other in the transaction called

employment.

With recruitment goes an old saying if you fail to plan you plan

to fail. Hiring of candidates should be based on a correct notion

of what is re-questionnarisd

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for the best organization. Likewise, the organization should also

understand the individual needs and interests of the prospective

employees. In other words, goal congruence of the organizational

and the individual is a critical input to insure motivational drive

committed performance by an employee.

The best companies city a number reasons why recruiting and

hiring are the most important practice areas for creating and

retaining high performers The value of a good hire will continue

to multiply throughout an organization, where a bad hire will

diminish value good people attract other good people. There is a

strong correlation between good hires and positive corporate

results. Good hiring reduces the cost of turnover. And most

important, appropriate recruitment and hiring is becoming even

more critical as there is dearth of highly skilled employees.

Best organization succeed not because of their people, but

because they have the right people.

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Being an Aviva insurance advisor can be an enriching and

exciting career option. Its an opportunity to associate with an

industry leader, be in touch with the and finest insurance

practices from around the globe, and grow both personally and

professionally.

ROLE OF THE RECRUITER

The Unit Manager who is the recruiter needs to understand

that the insurance advisors are the keys of insurance

business.

To generate more business company will and number of

insurance advisors.

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There requirements of recruitment that a manager make in

to the company fold is of great importance.

The manager follows the n number theory whereby more

and more insurance advisors are inducted in to the

company.

The Unit manager has to constantly motivate his team of

advisors so that the company gets maximum business out of

them.

The business each insurance advisor bring clearly

distinguishes between a performing Unit Manager and an

over performing Unit Manager.

BENEFITS OF BEING AN INSURANCE ADVISOR

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Unlimited earning potential

A clear career path

All round support through exclusive advertising, your own-

in-hours consultant, and

world-class training

A comprehensive benefit package

WHAT DOES IT TAKE TO BE AN BE INSURANCE

ADVISOR?

Training

Careers

Rewards and Recognition

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Training at Aviva life insurance

At Aviva, we understand the importance of training in a

dynamic business environment. Our advisors go through both

generic and specific, professional programs that help them

remain well- informed and knowledgeable about the

companys products in the market. There is a further focus on

soft skills, such as communication, managing long-term

relationships and selling skills, which are very relevant in a

service-driven industry like life insurance. State of the art

infrastructure training facilities coupled with an excellent

faculty, guarantee an exceptional

learning environment. For advisors who might be

occupied with their daily businesses/professional routines,

Aviva life insurance also offers convenient training options

such as online and self learning.

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A 17-day training schedule covers the mandatory IRDA

training re-questionnaires and Aviva life insurance product-

training modules. Revision session ensure that the candidates

thoroughly understand the course contents and are well

prepared for the licensing examination training is interspersed

with practical appointment settings with potential customers,

giving advisors a feel of how their business will work from the

very first day. All through the advisors to the advisors in

achieving independence towardsgenerating business.

Career Development

At Aviva life insurance , career development is

emphasized upon from the very day the advisor joins the

system. Though individual meetings with his or her manager,

the advisor can discuss various issues related to business

development and career enhancement. Expectations

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From the organization in terms of chalking a career in the

insurance industry are also discussed

Tiger Team: Aviva life insurance offers the Tiger Team

programmed for identified high potential advisors. Handpicked

by the management, these advisors are placed on fast track

career path and recognized as Tiger trainers. The advisors

can participate in this programmed, subject to certain criteria

being fulfilled.

Pinnacle Program: Absorption into the management is another

career enhancement option provided at Aviva life insurance

through the pinnacle program. The program helps advisor build

a fulltime career as a unit manager in the organization. Offering

great potential for managing a team of advisors and personal

development .Fast track pinnacle program is also available to

advisors who are able to meet the performance criteria within the

stipulated time.

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Reward and recognition:

Aviva life insurance advisors are constantly recognized and

rewarded for their performance. Numerous contests all year

round promote healthy competition amongst advisors and

recognition for their efforts. Depending on level of business the

advisor achieve in a year He or she can become a member of

various clubs such as the Presidents club, Aviva life insurance

Star International and the Aviva life insurance Star India club

Each of these clubs have specific performance criteria for criteria

for questionualification and members of these club are business

the advisor achieves in a year , he or she can becomes a member

of various clubs such as the Presidents club ,Aviva life insurance

Star International and the Aviva life insurance Star India club

.Each of these clubs have specific performance criteria for

questionualification and members of these clubs are entitled to

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attend seminars held at exotic international and domestic

locations each year .Advisors can also questionualify for the

renowned MDRT (Million Dollar Round Table ), an exclusive

international insurance advisor club. While gathering information

about prospective candidates we also make assumption of the

type and the nature of business he or she will bring. Each advisor

has his own domain where he

functions, taps the resources and brings business. Often the

team of advisor who work with a particular unit manager work

with a spirit of togetherness and also have the challenging spirit

to meet the targets as given by their manager or the team

leader. A unit manager may have several advisers working under

him. The number can be more than hundred or two hundred. But

the real chunk of business is brought by the small group of

advisor who are constantly on move, making calls, seeking

appointments and delivering result. This is the reason why stress

has not been made to gather highly qualified advisers nor very

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High QualityManagement

SuperiorProducts

experienced once. What Aviva aims at to tap the right people

who can do business, bring business and retain the Business?

More than having good education qualification, if an adviser can

advise and adopt sound marketing he can do business.

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ExtensiveTrainingExtenstion

Growth andprosperity of theadvisers at Aviva

Strong Reputation

Excellent CustomerAttractive paymentsand Benefits

(Diagram showing the prospects for growth and prosperity ofInsurance advisors at AVIVA insurance )

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AN OVERVIEW OF INSURANCE INDUSTRY

Insurance has a long history in India. Life Insurance in its

current form was introduced in 1818 when Oriental Life

Insurance Company began its operations in India.

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General Insurance was however a comparatively late

entrant in 1850 when Triton Insurance company set up

its base in Kolkata. History of Insurance in India can be

broadly bifurcated into three eras: a) Pre Nationalization

b) Nationalization and c) Post Nationalization. Life

Insurance was the first to nationalize in 1956. Life

Insurance Corporation of India was formed by

consolidating the operations of various insurance

companies. General Insurance followed suit and was

nationalized in 1973. General Insurance Corporation of

India was set up as the controlling body with New India,

United India, National and Oriental as its subsidiaries.

The process of opening up the insurance sector was

initiated against the background of Economic Reform

process which commenced from 1991. For this purpose

Malhotra Committee was formed during this year who

submitted their report in 1994 and Insurance RegulatoryDevelopment Act (IRDA) was passed in 1999. Resultantly

Indian Insurance was opened for private companies and

Private Insurance Company effectively started operations

from year of 2000.

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What is Life Insurance?

Life insurance is a guarantee that your family will receive

financial support, even in your absence. Put simply, life insurance

provides your family with a sum of money should something

happen to you. It thus permanently protects your family from

financial crises.

In addition to serving as a protective cover, life insurance acts as

a flexible money-saving scheme, which empowers you to

accumulate wealth-to buy a new car, get your children married

and even retire comfortably.

On the topic of distribution analysis and agency

business I find no any one single person did search.

Key Benefits of Life Insurance

Need for Life Insurance

Today, there is no shortage of investment options for a person tochoose from.

Modern day investments include gold, property, fixed incomeinstruments, mutual

funds and of course, life insurance. Given the plethora of choices,it becomes

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imperative to make the right choice when investing your hard-earned money. Life

insurance Is a unique investment that helps you to meet your

dual needs ?

saving for life's important goals, and protecting your assets.

Asset Protection

From an investor's point of view, an investment can play tworoles

asset appreciation or asset protection. While most financialinstruments have the

underlying benefit of asset appreciation, life insurance is uniquein that it gives the

customer the reassurance of asset protection, along with a strongelement of asset

appreciation. The core benefit of life insurance is that thefinancial interests of

Ones family remains protected from circumstances such as lossof income due to

critical illness or death of the policyholder.

Simultaneously, insurance products also have a strong inbuiltwealth creation

proposition. The customer therefore benefits on two counts andlife insurance

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occupies a unique space in the landscape of investment optionsavailable to a

customer.Goal based savings

Each of us has some goals in life for which we need to save. For ayoung, newly

married couple, it could be buying a house. Once, they decide tostart a family,

the goal changes to planning for the education or marriage oftheir children. As

one grows older, planning for one's retirement will begin to takeprecedence.

Clearly, as your life stage and therefore your financial goalschange, the

instrument in which you invest should offer correspondingbenefits pertinent to the

new life stage. Life insurance is the only investment option that

offers specific

products tailor-made for different life stages. It thus ensures thatthe benefits

offered to the customer reflect the needs of the customer at thatparticular life

stage, and hence ensures that the financial goals of those life

stages are met.The table below gives a general guide to the plans that are

appropriate for different life stages.

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Life Stage Primary Need Life Insurance ProductYoung & Single Asset creation Wealth creation plans Young & Justmarried

Asset creation &protection

Wealth creation andmortgage protection plans

Married withkids

Children's education,

Asset creation andprotection

Education insurance,

mortgage protection &wealth creation plans

Middle agedwith grown upkids

Planning for retirement& asset protection

Retirement solutions &mortgage protection

Across all life-stages

Health plans Health Insurance

INSURANCE MARKET IN INDIA:

The India Insurance market despite having a highly elaboratehistory spanning

almost two centuries, has come of age only in last 50 years afterthe formation of

the Life Insurance Corporation (LIC) of India in 1956 and the entry

of private

companies into the market in 2000.

Traditionally the Indian Insurance Market had centered on the lifeinsurance

until recently, a host of other insurance policies covering adiverse range of

issues and objects like Medical Insurance, Accident Insurance,Fire Insurance,

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Automobile Insurance and other policies which fall under thecategory of general

insurance are being provided by various private insurancecompanies.

A) PERFORMANCE OF THE INDIAN INSURACEMARKET-A REPORT:

The following points will provide you an insight into the insurancemarket in

India and its fast expanding prospects. The report is wellsupported by data

based on detailed analysis that would help investors, financialservice

providers and global banking players to venture into the Indianinsurance

market.

Taking into account the changing socioeconomic demographicsrate of GDP

growth, behavior of consumers, and occurrences of naturalcalamities at

regular intervals the market of Life Insurance in India is expectedgrow to the

value around US $ 41.44 billion by the year 2009. The Market isexpected to

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grow at a compounded annual growth rate (CAGR) of more than200% year over

year (YOY) from year 2006 onwards.

in automobile insurance, public sector covers a substantial 68%

of the total market value.

Among individual companies that are worthy of mentioning, Aviva

Lombard enjoys a whopping 53% market share in AccidentInsurance while

the remaining 47% is shared by New India Assurance and UnitedIndia

Insurance both belonging to the public sector

The other key players of the market include:

A) In Public Sector:

Life insurance Corporation(LIC) of India, National InsuranceCompany

Limited, Oriental Insurance Limited, New India AssuranceCompany

Limited and United India insurance Company Limited.

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B) In Private Sector:

ICICI prudential Life Insurance, Bajaj Allianz, SBI Life, HDFCStandard,

Birla Sun life, Aviva Life Insurance, Kotak Mahindra old mutual,Max New

York Life and Met life, Tata AIG Life, ING Vysya. Thus, the ever

increasing population of the country will ensure constant boom inthe India

Insurance market in the distant future.

NEED FOR INSURANCE:Superior to an ordinary savings plan as it provides full

protection against

Risk of death.

Encourages and forces compulsory savings unlike other saving

Instruments, wherein the saved money can be easily withdrawn.

Provides loan to tie over a temporary difficult phase and is also

acceptable

as security for a commercial loan.

Offers tax relief to policyholders.

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Hedges risk against uncertainty.

For a policy taken under the MWP Act 1874, (Married Women's

Property

Act), a trust is created for wife and children as beneficiaries.

Based on the concept of sharing of losses, the society willbenefit as

catastrophic losses are spread globally.

NEED FOR LIFE INSURANCE:Life brings with it many surprises, some pleasant and some notso and a Life

Insurance Plan ensures that you are better prepared to faceuncertainties. In a

number of ways:

A) Protection:You need life insurance to be there and protect the people youlove, making

sure that your family has a means to look after itself after youare gone. It is

a thoughtful business concept designed to protect the economicvalue of a

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human life for the benefit of those financially dependent on him.That is a

good reason. Supposing you are suffered by an injury that keeps

you away

from earning? Would you like to be a financial burden on yourfamily,

already losing out on your salary? With a life insurance policy,you are

protected. Your family is protected.

B) Retirement:Life insurance makes sure that have regular income after retireand also

helps to maintain standard of living. It can ensure that your post-retirement

years will be spent in peace and comfort.

C) Savings and Investments:Insurance is a means to Save and Invest. The periodic premiumsare like

Savings and you are assured of a lump sum amount on maturity.A policy

can come in really handy at the time of your childs, education ormarriage!

Besides, it can be used as supplemental retirement income.

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D) Tax Benefits:Life insurance is one of the best tax saving options today. Taxcan be saved

twice on a life insurance policy-once when you pay yourpremiums and once

when you receive maturity benefits. Money saved is moneyearned

History of Life Insurance:

The earliest type of life Insurance was started by the Greeks and

Romans.

All surviving members contributions for the burial cost of a

member. In case of the death of a member the cost of burial was

made of the contributed fund.

In the 17th century, the Tontine Annuity system was

introduced where associations of individuals were formed

without any reference to age, and a fund was created by equal

contributions from each member. The sum collected was

invested, and at the end of each year the interest was divided

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among the survivors. The last remaining survivor received both

the years interest and the entire amount of the principal.

The first organized life Insurance company was founded in

175 in Philadelphia, in north America. Subsequently, over the

past three centuries, numerous life Insurance companies sprung

up, making life Insurance a popular tool for protection coupled

with investment.

INSURANCE IN INDIA

The British introduced Insurance in India in the beginning of

the 19th century. In 1818 a British film called as Bombay Life

Insurance Company was established. Later the, the Bombay Life

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Insurance Company was established in 1823. in 1874, the

oriental Government Security Life Insurance Company was set

up. The mismanagement of funds let to nationalization of

Insurance business in 1956. today there are over 14 life

Insurance companies in India.

HUMAN LIFE VALUE:-

Human life is the most valuable assets. This is easily proved if we

were to assign a monetary values to our life. This values depends

on our income-earning potential or the so called Human Life

Values(HLV).A person income supports his family, helps them to

get the most out of life .Month after month, year after year , his

dependents lives the best way they can using the money that

person earns .This money enables his household to run

smoothly ,children to go to college, takes care of medical bills,

vacations and helps maintain the life styles .

On the basis of a persons

income or earning potential , human Life Values can be

calculated .A simple rule of thumb to compute it is as follows :

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HLV=Present Annual Income * number of years until a person

plans to retire

If something were to happen to the person ,hear are a few

possible ways of dealing with the financial implications:

i) Draw from savings. But how long would the funds last? A

lifetime of savings could be used up in a few months.

ii) borrow from others : who will lend the money? Even family

and friends can only help to an extent. Any anyway, this

would only be a short term solution. Borrow from others:

who will lend the money? Even family and friends can only

help to an extent. And anyway, this would be a short- term

solution.

iii) Sell the assets: what price will one get or his assets? Would

one like to sell his home? His car?

iv) Transfer the risk to an insurance company?

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It is recommended that should be transferred to an

insurance company as its chapter, safer and smarter in the

long run.

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OBECTIVES OF STUDY

The objective behind the conducting project exercise was to get

useful insight about the insurance sector. I have prepared this

report with some specific objectives. The objective is as under:

1. To understand the fundamentals of insurance.

2. Identify the diverse customer and identify the various life

insurance products, which have been developed from time to

time to meet the re-questionnarisment.

3. Learning how to Sell insurance professionally.

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4. As I was working under the FSC my main objective was to solve

out the matter pertaining to the closing of the policies such as life

time pension and life time.

5. Apart from this, I had to generate the leads through recruiting

the new advisors for the company to generate business.

NEED OF STUDY

THE main need of the study is to find out the role of an agent in

of society.

That an agent perform his role in a good manor or not, then I find

that all the agents are working in the company as a off role job,

so they never think that a customer s facing how many

difficulties, when he adopt an policy, on the behalf of a agent. So,

my study clears that how a agent perform their duties.

SCOPE AND LIMITATION

The main purpose of the project is recruit Insurance advisors.

Efforts have been made to understand the customers perception

about the company and the role they associate with the job of an

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Insurance advisor. The scope of the project is two parts. First it

meansinductingof candidates who will bring business prospects

for the company and secondly it was a tremendous opportunity

to understand the Insurance market scenario in jalandhar. A

major limiting factor of project was the perception of the people

regarding the job of the Insurance advisor who are perceived as

low paid Insurance agents. People fail to identify the challenges

and the opportunities underlying this job.

SOURCES OF DATA

Primary Data: Personal discussion with Insured people &

Uninsured people.

Secondary Data: Books, Websites, data from company

officials, and from existing customers.

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METHODOLOGY

Research design is a framework or blue print for conducting the market

research. It specifies the procedure for obtaining the information needed

to the structure or solves the research problem.

SOURCES OF DATA

Data may be collected by many methods but we use only some methods

for the data collection which are as under:-

PRIMARY DATA

This data is collected by the interacting with various people in our

society. The researcher originates primary data for the specific purpose

of addressing the researcher problem or for selecting the best course of

action to take in a given situation. Questionnaires are used for collecting

the primary data.

SECONDARY DATA

This data is collected through various web sites, magazines, and

prospects .Secondary data is collected for some purpose other than the

problem at hand and the data is provision of insight into andcomprehension of the problem situation confronting the researcher or

for selecting the best course of action to take in a given situation.

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SAMPLING PLAN

SAMPLE SIZE

Sample sizes are 150 responders. Sampling size refer to the number of

elements to be included in the study. We have taken general public as

our respondents for the study because the whole society is being

affected by foreign university.

SAMPLE TECHNIQUE

We have used techniques of random sampling.

STATISTICAL TOOLS

Percentage, graph, pie charts and tables are used for analysis of

collected data.

SAMPLE SOURCES

Questionnaire

Internet

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QUESTION:-1 Do you know about Aviva life insurance?

(a) yes. ( )

(b) no. ( )

ConsumerResponse

CUSTOMERS In Percentage

Yes 100 67%No 50 33%

Figure no -1.1

Findings-:

(a) 67% people say we know about Aviva life insurance

(b) 33% people say he not know about Aviva life insurance

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QUESTION:-2. Is Aviva life insurance provides better services

of insurance?

(a)Yes ( )

(b)No ( )


Yes 90 90%No 10 10%

Figure no -1.2Findings-:

(a)84%people say aviva life insurance company provide better insurncecompany

(b)16%people say aviva life insurence company not provide better

service.

QUESTION:-3. Are you satisfied with your present Insurance

Service?

(a)Yes ( )

(b) No ( )

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ConsumerResponse

CUSTROMERS In Percentage

Yes 75 75%No 25 25%Figure no -1.3Finding-:

(a) 75%people say he satisfied with aviva life insurance companyservices.

(b) 25%people say he not satisfied with aviva life insurance

service.

QUESTION:-4.What are the important features which satisfied

the consumer provided by Aviva life insurance?

(a)Good return. ( )

(b)Secure future ( )(c) Other benefits ( )

ConsumerResponse

Frequency In Percentage

Good return 55 55%Secure future 28 28%Other benefits 17 17%


(a) 55%people say good return is important feature of Aviva life insurance.

(b) 28% people say secure future is important feature of Aviva life insurance.

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(c) 17% people say other feature is important of Aviva life insurance Company.

QUESTION:-5 Did you face any difficulty while using the

Aviva life insurance policy?

(a)Yes ( )

(b)No ( )

ConsumerResponse

Customers In Percentage

Yes 3 12%No 22 88%


(a) 12% people say he face problem with life insurance service.(b) 88% people say he not face problem with life insurance service.

QUESTION:-6 Is Aviva life insurance successful in the

Backward & Rural Areas.?

(a)Yes ( )

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(b)No ( )

ConsumerResponse

customers In Percentage

Yes 14 56%No 11 44%


(a) 56% people say Aviva life insurance successful in rural areas.

(b) 44% people say Aviva life insurance not successful

in rural areas.

QUESTION:-7 Is Aviva life insurance scheme are more

economic.(a)Yes ( )

(b)No ( )

ConsumerResponse

customers In Percentage

Yes 19 76%No 6 24%


(a) 76%people say aviva life insurance scheme more economic.(b) 24% people say aviva life insurance scheme not more economic.

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QUESTION:-8 Do you think that, which policies provided by

Aviva life insurance that helping to change your life?

(a)Yes ( )(b)No ( )

ConsumerResponse


Yes 24 96%No 1 4%


(a) 96% people say aviva life insurance company change his life.(b) 4% people say he not feel change in life.

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FINDING AND RECOMMANDATION

With the help of a questionnaire we have tried to assimilate

information that can throw light on the customers perception

about the job. The questionnaire has been so designed that it

not only understands the customers perceived notion on the

role of an insurance advisor but also the market position of

Aviva life insurance.

Finding :

A major finding was regarding the mindset of people

who perceive the Insurance advisor as low paid

Insurance agents. People do not see the challenges

and the opportunity to understand customers

perception which is available in this job.

Most of the interviews were not aware of the player in

the Insurance sector. Senior citizen and middle aged

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employees still believe that insuring and working worth

a government company is less risky and reliable.

Most of the interviews ranked reliability more important

than profitability when asked about reason for choosing

a particular Insurance company.

Since the Insurance advisors are not the employees of

the company, people had several misconception on the

career prospects of this job.

Following table shows the market position of the

several private players in the market.

RECOMMENDATION :

Open some more branches in semi urban and rural areas. .

Improve customer service in all branches.

Introduced new ULIP PLAN for customer.

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Provide most modern method of training.

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CHAPTER NO: -8ANNEXURE

QUESTION UESTIONNAIRE

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This questionnaire is prepared to study the project titled The

comparative study of the consumer satisfaction towards Aviva

life insurance Company as a compulsory part of M.B.A.program.

NAME:-.

AGE :- ...

GENDER :- ..

CONTACT No :-.

1 Do you know about Aviva life insurance.?

(a) yes. ( )

(b) No. ( )

2. Is Aviva life insurance provides better service of insurance?

(a)Yes ( )

(b)No ( )

3. Are you satisfied with your present insurance service?

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(a)Yes ( )

(b)No ( )

4. What are the important features which satisfied theconsumer provided by Aviva life insurance?

(a)Good return. ( )

(b)Secure future ( )

(c)Other benefits ( )

5. Did you face any difficulty while using the Aviva life

insurance policy?

(a)Yes ( )

(b)No ( )

1. Is Aviva life insurance successful in the Backward & Rural

areas?

(a)Yes ( )

(b)No ( )

7 Is Avivas insurance scheme more Economic.

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(a)Yes ( )

(b)No ( )

8 Do you think that Aviva life insurance policy is changing

your life?

(a)Yes ( )

(b)No ( )

9. Do you have any suggestion for the improving services

of Aviva life insurance?

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BIBLIOGRAPHY

IRDA Journal. Aviva life insurance company magazines.

Business news paper and magazines.

WEBSITE www.avivalife insurance.com www.google.co.in/indian insurance industry www.irdaindia.org www.ssrn.com www.insuranceguide.com www.financialexpress.com
http://www.google.co.in/indianhttp://www.irdaindia.org/http://www.ssrn.com/http://www.insuranceguide.com/http://www.financialexpress.com/http://www.google.co.in/indianhttp://www.irdaindia.org/http://www.ssrn.com/http://www.insuranceguide.com/http://www.financialexpress.com/

Summer Training Report- Mukesh Kumar

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