• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Kotak life insurance project
 

Kotak life insurance project

on

  • 4,759 views

A study on Kotak life insurance project

A study on Kotak life insurance project

Statistics

Views

Total Views
4,759
Views on SlideShare
4,759
Embed Views
0

Actions

Likes
6
Downloads
0
Comments
2

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel

12 of 2 previous next

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
  • thanx
    Are you sure you want to
    Your message goes here
    Processing…
  • Plz allow me to download this report . kindly send me the requisite url from where i can download this report
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Kotak life insurance project Kotak life insurance project Document Transcript

    • Uploaded for projectsparadise.com A REPORT On “Potential of Life insurance Industry in Surat Market” By Chirag Patel Under the Guidance of COMPANY GUIDE FACULTY GUIDE ………………. 1
    • Uploaded for projectsparadise.com Gift For You Get this magazine’s digital subscription FREE by filling the form carefully Click Here To Fill Reinsurance Magazine Form Reinsurance has been recognised as a leading journal and business intelligence service for the reinsurance professional since its launch in 1969. Every month, Reinsurance Magazine provides news analysis with details on the stories impacting the reinsurance industry, along with a more technical insight. Market reports focus on specific regions 10 Ways Predictive Analytics Can Help You Click Here To Fill This Magazine Form and Get FREE Predictive analytics is a powerful tool that helps organizations solve key challenges by using business knowledge to drive efficiencies and strengthen their competitive advantage. 2
    • Uploaded for projectsparadise.com CERTIFICATE This is to certify that the Summer Internship Project titled “Potential of Life Insurance Industry in Surat market” a bona fide work of …………, is original and has been done under my supervision in partial fulfillment of the requirement for the award of M.B.A for the period of 4 months ……... This report neither full nor in part has ever before been submitted for awarding of any degree of either this university or any other university. I am pleased to stay that his performance during the period was extremely satisfactory. Faculty Guide 3
    • Uploaded for projectsparadise.com DECLARAION I hereby declare that this work entitled “Potential of Life Insurance Industry in Surat Market” is my work carried out under the guidance of my faculty guide Mr. …… and my company guide …….. This report neither full nor in past has ever been submitted for award of any other degree of either this University or any other University. Chirag Patel 4
    • Uploaded for projectsparadise.com TABLE OF CONTENTS Contents Page No. Acknowledgements 5 List of Tables 6 List of Illustrations/Diagrams 7 Executive Summary 9 Chapter 1: introduction 10 Objective 15 Limitation 17 Research Mythology 19 Data Collection 22 Chapter 2: Life Insurance Industry 23 Industry profile 24 important milestones in the life insurance business 29 Insurance sector reforms 31 IRDA 32 Chapter 3: Contribution of Life Insurance Industry 36 Contribution of Life Insurance in the Economy 36 Flow of Insurance Industry in India 37 Structure of life Insurance Industry 40 Life Insurance industry 41 Aggregation of Long Term Savings 42 Spread of financial services in rural Areas 43 Long term funds for infrastructure Development of Capital 44 Markets/Economic Growth Employment generation 45 Special Features 46 Growth Potential 47 Phase of transition 47 Chapter 4:Company Profile 49 Management 51 Area of Business 56 KMOM progress till date 65 KMOM-the partnership and Lineage 66 Products 69 Hierarchy of KMOM of Surat branch 71 Chapter 5: Survey 72 Data interpretation , editing and coding 73 Graph analysis 73 Chapter 6: Finding and Suggestion 83 Chapter 7: Conclusion 84 Chapter 8: References 85 Chapter 9: Annexure 86 5
    • Uploaded for projectsparadise.com List of Tables Name of Tables Page no • Potential of Life Insurance sector 38 • Market share of LIC and all private 38 player • Individual Market share of 39 Insurance company • Total asset of Life Insurance 41 companies • Total premium generated 41 • The future premium income 41 Generated will be • Untimely death benefit to policy 44 holder in the past • Age vise classification 73 • Gender wise classification 74 • Income wise classification 75 • No of member having insurance 76 • How many person having insurance 77 in family • Different policy bought by 78 customers • Fully insured and under insured 79 persons • Market share of different life 80 insurance policy 6
    • Uploaded for projectsparadise.com List of Illustrations/Diagrams Name of Illustrations/Diagrams Page No • Kotak : Area of Business 57 • Age vise classification 73 • Gender wise classification 74 • Income wise classification 75 • No of member having insurance 76 • How many person having insurance in 77 family • Different policy bought by customers 78 • Fully insured and under insured persons 79 • Market share of different life insurance 80 7
    • Uploaded for projectsparadise.com Chapter 1: Introduction 8
    • Uploaded for projectsparadise.com Executive Summary The service industry is one of the fastest growing sectors in India today. The upcoming sectors which are really showing the graph towards upwards are - Telecom, Banking, and Insurance. These sectors really have a lot of responsibility towards the economy. Amongst the above-mentioned areas insurance is one sector, which took a lot of time in positioning itself. The insurance business of non-life companies was not much in problems but the major problem was with life insurance. Life Insurance Corporation of India had monopoly for more than 45 years, but the picture then was completely different. Previously people felt that “Insurance is only for classes not for masses” but now the picture is vice-versa. The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly 9
    • Uploaded for projectsparadise.com after the industrial era – past few centuries – yet its beginnings date back almost 6000 years. Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and these companies were not insuring Indian natives. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan 10
    • Uploaded for projectsparadise.com Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage. The formation of IRDA, entrance of private life insurance companies into India with one foreign partner, compulsory training of Insurance agents etc. developments started to take place. And this was the time when these companies started searching for proper channel partners who can help the organization in expanding its network and business in India. Channel partners are those who are going to be into direct selling of company’s products i.e. the insurance policies. They are the link 11
    • Uploaded for projectsparadise.com between the customers and the management or company. These channel partners are people with different profiles. They are selected on some grounds like their network of people, their problem handling ability, convincing power and lot many things. The main idea behind company’s Questionnaire Survey is to find out and analyze the proper profile that can be recruited by company as a channel partner. Company has been focusing on some of the profile that can be very beneficial for the company. For example Chartered Accountants, Tax Consultants, Postal agents, Bank’s Daily Collection Agents etc. the main idea behind targeting the above profile is strong client network which is really very important for an insurance company. The project title is “Potential of Life Insurance Industry in Surat Market”. This shows the scope for private insurance companies have great opportunities to cover the market and can insure the customer. With the initiation of the deregulation in the Indian insurance market, the monopoly of big public sector companies in life insurance market has been broken. New private players have entered the market and with their innovative approaches and better use of distribution channels and technology, they are eating in to the shares of established public sector 12
    • Uploaded for projectsparadise.com companies in Indian Insurance Market. Since the deregulation has been put in to place, the market share of LIC has come down to 71.4% in life insurance market while the private players have captured around 17% market in the general insurance segment. This report includes the key private players in the insurance market such as ICICI Prudential, Kotak Life Insurance Bajaj Allianz, Birla Sun life, and TATA AIG. It also includes the leading competitors in the life insurance and general insurance segments along with their market shares. 13
    • Uploaded for projectsparadise.com Chapter 2 Objective Limitation Methodology Data collection 14
    • Uploaded for projectsparadise.com 1. Objective: The main of the present study of is accomplish the following objective. Proper understanding and analysis of life insurance industry. To know about brand awareness of Kotak Life Insurance and customer’s preference about Kotak Life Insurance. Conduct market survey on a sample selected from the entire population and derived opinion on that research. According the market survey come know about how much potential of insurance market in our city. And base on analysis of the result thus obtained make a report on that research. Training aims at recruiting maximum number of Life Advisors and to Sell the maximum policies for the company and bring the business for the company which ever is going at the particular point of time. Along with it I will be gaining the thorough knowledge of insurance sector. This will give me in more confidence in marketing products given to me. 15
    • Uploaded for projectsparadise.com As the Kotak Life Insurance well reputed company in India it’s great chance for me to observed different products launch by other competitor companies like ICICI prudential, Bajaj alliance ,LIC, Max New York life etc. In all, it is to understand the overall working of the Life insurance sector. The objective behind the project is as follows: To find the right candidate. To about their family background, occupation, social relation, Qualification, Age. Finalize candidates for the IRDA training 16
    • Uploaded for projectsparadise.com 5: Limitation: Some of the difficulties and limitations faced by me during my training are as follows: Lack of awareness among the people – This is the biggest limitation found in this sector. Most of the people are not aware about the importance and the necessity of the insurance in their life. They are not aware how useful life insurance can be for their family members if something happens to them. Perception of the people towards Insurance sector – People still consider insurance just as a Tax saving device. So today also there is always a rush to buy an Insurance Policy only at the end of the financial year like January, February and March making the other 9 months dry for this business. Insurance does not give good returns – Still today people think that Insurance does not give good returns. They are not aware of the modern Unit Linked Insurance Plans which are offered by most of the Private sector players. They are still under the perception that if they take Insurance they will get only 5-6% 17
    • Uploaded for projectsparadise.com returns which is not true nowadays. Nowadays most of the modern Unit Linked Insurance Plans gives returns which are many times more than that of bank Fixed deposits, National saving certificate, Post office deposits and Public provident fund. Lack of awareness about the earning opportunity in the Insurance sector – People still today are not aware about the earning opportunity that the Insurance sector gives. After the privatization of the insurance sector many private giants have entered the insurance sector. These private companies in order to beat the competition and to increase their Insurance Advisors to increase their reach to the customers are giving very high commission rates but people are not aware of that. Increased competition – Today the competition in the Insurance sector has became very stiff. Currently there are 14 Life Insurance companies working in India including the LIC (life insurance Corporation of India). Today each and every company is trying to increase their Insurance Advisors so that they can increase their reach in the market. This situation has created a scenario in which to recruit Life insurance Advisors and to sell life Insurance Policy has became very very difficult. 18
    • Uploaded for projectsparadise.com RESEARCH METODOLOGY Research always starts with a question or a problem. Its purpose is to question through the application of the scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studied. Marketing research is the function which links the consumer, customer and public to the marketer through information- information used to identify and define marketing opportunities and problems generate, refine, and evaluate marketing actions, monitor marketing actions, monitor marketing performance and improve understanding of market as a process. Marketing research specifies the information required to address these issues, designs, and the method for collecting information, manage and implemented the data collection process, analyses the results and communicate the findings and their implication. I have prepared our project as descriptive type, as the objective of the study demands the answers of the question related to find the 19
    • Uploaded for projectsparadise.com potentiality of life insurance in Surat: How much potential is there in Surat? The Marketing Research Process As marketing research is a systemic and formalized process, it follows a certain sequence of research action. The marketing process has the following steps: Formulating the problems Developing objectives of the research Designing an effective research plan Data collection techniques Evaluating the data and preparing a research report There are two types of data collection method use in my project report. – Primary data – Secondary data. For my project, I decided on primary data collection method for observing working of company and approaching customers directly in the field, tele-calling, cold calling, campaigning and through references to know their interest in business with company 20
    • Uploaded for projectsparadise.com in my project and also make questionnaire for creating database of business class people is Surat city for company. I decided on Secondary data collection method was used by referring to various websites, books, magazines, journals and daily newspapers for collecting information regarding project under study. 21
    • Uploaded for projectsparadise.com DATA COLLECTION After the research methodology, research problem in marketing has been identified and selected; the next step is together the requisite data. There are two types of data collection method – primary data and secondary data. In our live project, we decided primary data collection method because our study nature does not permit to apply observational method. In survey approach we had selected a questionnaire method for taking a customer view because it is feasible from the point of view of our subject & survey purpose. We conducted 200 sample of survey in our project. 22
    • Uploaded for projectsparadise.com Chapter: 3 Industry profile: important milestones in the life insurance business Insurance sector reforms The Insurance Regulatory and Development Authority (IRDA) 23
    • Uploaded for projectsparadise.com Brief History of the Insurance Sector in India The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years. Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and these companies were not insuring Indian natives. However, later with the efforts of eminent people 24
    • Uploaded for projectsparadise.com like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act 1912 made it necessary that the premium rate tables and periodical valuations of companies should 25
    • Uploaded for projectsparadise.com be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage. The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in- force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January 1956 that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non- Indian companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life 26
    • Uploaded for projectsparadise.com Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost. LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long-term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organization servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 Crores of New Business in 1957 the corporation crossed 1000.00 Crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with re-organization happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies. 27
    • Uploaded for projectsparadise.com Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7 zonal offices and the corporate office. LIC’s Wide Area Network covers 100 divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LIC’s ECS and ATM premium payment facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centers have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future. From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire us at LIC to take this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families. 28
    • Uploaded for projectsparadise.com Some of the important milestones in the life insurance business in India are: 1850Non life insurance debuts with triton insurance company. 1870 Bombay mutual life assurance society is the first Indian owned life insurer 1912 The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928 The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938 Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 Crore from the Government of India. 29
    • Uploaded for projectsparadise.com The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are: 1907 The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957 General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968 The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972 The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies’ viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company. Insurance sector reforms 30
    • Uploaded for projectsparadise.com In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at “creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms…” In 1994, the committee submitted the report and some of the key recommendations included. 1997 Insurance regulator IRDA set up 2000 IRDA starts giving licenses to private insurers: Kotak Life Insurance ICICI prudential and HDFC Standard Life insurance first private insurers to sell a policy 2001 Royal Sundaram Alliance first non life insurer to sell a policy 2002 Banks allowed to sell insurance plans. 31
    • Uploaded for projectsparadise.com The Insurance Regulatory and Development Authority (IRDA) The Insurance Act, 1938 had provided for setting up of the Controller of Insurance to act as a strong and powerful supervisory and regulatory authority for insurance. Post nationalization, the role of Controller of Insurance diminished considerably in significance since the Government owned the insurance companies. But the scenario changed with the private and foreign companies foraying in to the insurance sector. This necessitated the need for a strong, independent and autonomous Insurance Regulatory Authority was felt. As the enacting of legislation would have taken time, the then Government constituted through a Government resolution an Interim Insurance Regulatory Authority pending the enactment of a comprehensive legislation. The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for the establishment of an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto and further to amend the 32
    • Uploaded for projectsparadise.com Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the General insurance Business (Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of India (for life insurance business) and General Insurance Corporation and its subsidiaries (for general insurance business). The act extends to the whole of India and will come into force on such date as the Central Government may, by notification in the Official Gazette specify. Different dates may be appointed for different provisions of this Act. The Act has defined certain terms; some of the most important ones are as follows appointed day means the date on which the Authority is established under the act. Authority means the established under this Act. Interim Insurance Regulatory Authority means the Insurance Regulatory Authority set up by the Central Government through Resolution No. 17(2)/ 94-lns-V dated the 23rd January, 1996. Words and expressions used and not defined in this Act but defined in the Insurance Act, 1938 or the Life Insurance Corporation Act, 1956 or the General Insurance Business 33
    • Uploaded for projectsparadise.com (Nationalization) Act, 1972 shall have the meanings respectively assigned to them in those Acts A new definition of "Indian Insurance Company" has been inserted. "Indian insurance company" means any insurer being a company (a) which is formed and registered under the Companies Act, 1956 (b) in which the aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed twenty-six per cent. Paid up capital in such Indian insurance company (c) whose sole purpose is to carry on life insurance business, general insurance business or re- insurance business. 34
    • Uploaded for projectsparadise.com Chapter: 4 Contribution of Life Insurance Sector in the Economy FLOW OF Insurance Industry in India STRUCTURE OF INSURANCE INDUSTRY: Snap Shot Industry Aggregation of Long Term Savings Spread of financial services in rural Areas Long term funds for infrastructure Development of Capital Markets/ Economic Growth Employment generation Special Futures Growth Potential Phase of transition 35
    • Uploaded for projectsparadise.com FLOW OF Insurance Industry in India • Structure of Insurance Industry: Snap Shot • Contribution to Indian Economy • Special Features STRUCTURE OF INSURANCE INDUSTRY: Snap Shot Historical Perspective (i) Prior to 1956 242 companies operating (ii) 1956 - 2001 Nationalization – LIC monopoly player – Government control (iii) 2001 -- Opened up sector Industry Snap Shot - Contd. 36
    • Uploaded for projectsparadise.com • (a) LIC – Fully owned by Government (b) Postal Life Insurance • (ii) Private players - 1. Bajaj Allianz Life Insurance Co. Ltd. 2. Birla Sun Life Insurance Co. Ltd. (BSLI) 3. HDFC Standard Life Insurance Co. Ltd. (HDFC STD LIFE) 4. ICICI Prudential Life Insurance Co. Ltd. (ICICI PRU) 5. ING Vysya Life Insurance Co. Ltd. (ING VYSYA) 6. Max New York Life Insurance Co. Ltd. (MNYL) 7. MetLife India Insurance Co. Pvt. Ltd. (METLIFE) 8. Kotak Mahindra Old Mutual Life Insurance Co. Ltd. 9. SBI Life Insurance Co. Ltd. (SBI LIFE) 10. TATA AIG Life Insurance Co. Ltd. (TATA AIG) 11. Reliance Life Insurance 12. Aviva Life Insurance Co. Pvt. Ltd. (AVIVA) 13. Sahara India Life Insurance Co. Ltd. (SAHARA LIFE) 14. Shriram Sunlam • (iii) Other likely players – PNB Life Insurance, Axa Bharti Enterprises Potential of the Insurance sector: 37
    • Uploaded for projectsparadise.com Total population 1.1 billion Total population of 253 millions Insurable class Total population 88.5 millions insured Source: Financial Express-Delhi. Market share: 2001-02 2002-03 2003-04 2004-05 2005- 06 LIC 98% 94% 87% 78% 72% Private Players 2% 6% 13% 22% 28% Industry growth rate at 36% (2004-05) with premium income From new business. Source: Financial Express- Delhi Market Share 38
    • Uploaded for projectsparadise.com Company Indian ForeignMarket Promoter/ Insuranceshare Partner based on premium Aviva life Dabur Aviva, UK 1.12 Bajaj Bajaj Auto Allianz, 6.12 Allianz Germany Birla sun Aditya Sun Life, 1.84 life Birla Canada group HDFC HDFC Standard 2.96 Standard Life, UK ICICI ICICI Prudential, 7.11 Prudential Bank UK ING Vysya ING 0.63 Vysya Bank Insurance, Netherlands Kotak Kotak Old Mutual 0.71 Mahindra, Mahindra South Old Bank Africa Mutual Max New Max India New York 1.32 York Life, US MetLife Jammu & MetLife, 0.40 Kashmir US Bank Sahara Sahara None 0.80 Life India Insurance SBI Life SBI Cardiff, 1.52 France Tata AIG Tata AIG, US 1.78 Group 39
    • Uploaded for projectsparadise.com CONTRIBUTION TO INDIAN ECONOMY (i) Life Insurance is the only sector which garners long term savings (ii) Spread of financial services in rural areas and amongst socially less privileged (iii) Long term funds for infrastructure (iv) Strong positive correlation between development of capital markets and insurance/ pension sector (v) Employment generation Aggregation of Long Term Savings (i) Total Assets of Life Insurance Companies 40
    • Uploaded for projectsparadise.com 2002-2003 2003-2004 2004-2005 2,80,450Cr 3,52,608Cr 4,23,000 Cr (ii) Total Premium generated 2002-2003 2003-2004 2004-2005 57,708 Cr 66,278 Cr 79,000 Cr (iii) Industry is growing @ 19 p.a. (iv) At this growth rate, the future premium income generated will be 2005-2006 2006-2007 2007-2008 94,000 Cr 1,12000 Cr 1,33,000 Cr (v) Life Insurance funds account for 15% of household savings. (vi)The industry has the potential to increase the share to 20%. Spread of financial services in rural areas and amongst socially underprivileged 41
    • Uploaded for projectsparadise.com • IRDA Regulations provide certain minimum business to be done (i) In rural areas (ii) In the socially weaker sections • Life Insurance offices are spread over nearly 1400 centers. • Presence of representative in every tensile – deeper penetration in rural areas. • Insurance agents numbering over 6.24 lakhs in rural areas. • Policies sold in rural areas (2004-05) - No. of policies - 55 lakhs Sum assured 46,000 cr • Social security - No. of lives covered 2003-04 17.4 lakhs 2004-05 42.1 lakhs Long term funds for infrastructure 42
    • Uploaded for projectsparadise.com • For GDP to grow at 8 to 10%, qualitative improvement in infrastructure is essential. • Estimates of funds required for development of infrastructure vary widely. • An investment of 6, 19,600 crore is anticipated in the next 5 years (Source : SSKI India) • Tenure of funding required for infrastructure normally ranges from 10 to 20 years. • Major portion of these funds are routed through debt/private equity participation Development of Capital Markets/ Economic Growth •Industry also contributes in economic development through investments in capital market. Present level of investments is over Rs. 40,000 crore. (Mark to Market basis around 80,000 Crores). •Annual Investment of around 9000 Crores in capital markets. 43
    • Uploaded for projectsparadise.com •Contribution to Five Year Plans9th Plan 2, 30,900 Crores Last Two Years 1, 70,900 Crores • Helps inculcate a sense of security by protecting earning of people in case of untimely death. Benefits to Policy Holders 2002-2003 2003-2004 2004-2005 20,800 Cr 24,200 Cr 28,700 Cr EMPLOYMENT GENERATION • Life insurance industry provides increased employment opportunities. • Employees in insurance sector as on 31st March, 2005 is around 2 lakhs. • Many agents depend on insurance for their Livelihood–No. of agents on 31st March 2004 – 15.59 lakhs 44
    • Uploaded for projectsparadise.com •Brokers, corporate agents, training establishments provide extra employment opportunities. • Many of these openings are in rural sectors. SPECIAL FEATURES • Tax clubbing of various savings short term and long term into same bracket have a bias towards short term savings. • Distinction between the short term savings and long term savings is critical from investor’s point of view. More prone to inflationary pressures • Clearly, long term savings more than 10 years deserve special consideration under tax regime. 45
    • Uploaded for projectsparadise.com GROWTH POTENTIAL At present insurance penetration in India is quite low – 2.26% of GDP. PHASE OF TRANSITION • Life Insurance industry is under the phase of infancy after 50 years of monopoly 46
    • Uploaded for projectsparadise.com • Competition from within and other sectors of financial market • Needs environmental support till it reaches a comfort zone Chapter: 5 Company profile Management Areas of Business KMOM- Progress till date KMOM- the Partnership and Lineage 47
    • Uploaded for projectsparadise.com Products Hierarchy of KMOM Life Insurance Ltd. (Surat Branch) COMPANY PROFILE Stock broking businesses in the UK. Kotak Group was established in 1985.Kotak Mahindra Bank is the parent company of the group. Kotak Group entered into the life insurance business in 2001. Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd. (76%) and Old Mutual plc. (24%) Old Mutual plc.Is a world-Class international financial services company. It was established in South Africa before 160 years. OLD MUTUAL is the largest financial services business in South Africa, through its life insurance, asset management, banking and general insurance operations. The company serves 4 million life 48
    • Uploaded for projectsparadise.com insurance policyholders and employs over 13 000 South Africans in its local operations. In the USA, OLD MUTUAL is one of the top ten fixed annuity businesses offering an array of specialist asset management skills through its 23 asset management businesses. The company’s US Life business recorded sales of $4 billion at the end of 2002. Operations in the United Kingdom are focused on wealth management, through Gerrard as one of the leading private client The OLD MUTUAL Group has the ability to cater for a variety of consumer segments and offers a comprehensive and innovative range of products for all income groups. 49
    • Uploaded for projectsparadise.com Mission: “At Kotak Life Insurance, we aim to help customers take important financial decisions at every stage in life by offering them a wide range Of innovative life insurance products, to make them financially independent.” MANAGEMENT MR. UDAY KOTAK is the CEO of the company. Other Top Management persons are as follows:- Mr. Gaurang Shah (Managing Director) 50
    • Uploaded for projectsparadise.com Mr. Gaurang Shah is the Managing Director of Kotak Mahindra Old Mutual Life Insurance Limited. Mr. Gaurang Shah is a Chartered Accountant and a Cost and Works Accountant. He has also done his Company Secretary ship from the Institute of Company Secretaries of India. Mr. Gaurang Shah has been with the Kotak Group for the past eight years where he has held different positions of great responsibility and juggled multiple tasks effectively. His cumulative experience, primarily in financial services, stands at over 21 years, several of those in building the retail finance business. At Kotak Life Insurance, Mr. Shah will focus on developing new lines of businesses and leveraging the company's existing competencies and network to steer Kotak Life Insurance on its ongoing growth path with even greater thrust. Mr. Shah has a commendable expertise in managing a large number of employees. Mr. Shah has been previously associated with Kotak Mahindra Primus since its inception and has contributed towards its growth to become a Rs.2000 Cr plus business. Before coming to Kotak Life Insurance, Gaurang Shah was Group Head of Retail Assets for Kotak Mahindra Bank. The Retail Assets 51
    • Uploaded for projectsparadise.com include commercial vehicles, personal loans, structured products, car loans and loans against shares. Mr. G Murlidhar (Chief Financial Officer) Mr. Murlidhar is a Chief Financial Officer and Company Secretary of Kotak Life Insurance. Mr. Murlidhar is an associate member of the Institute of Chartered Accountants of India, an associate member of the Institute Of Company Secretaries of India, and graduate member of the Institute of Cost & Works Accountants of India. Mr. Murlidhar possesses over 20-year work experience and has earlier worked with National Dairy Development Board (NDDB), MDS Switchgear Limited and Nicholas Piramal India Limited and Ion Exchange Ltd. Prior to Kotak Life Insurance; he held the position of VP-Finance at Gujarat Glass Ltd. As Chief Financial Officer at Kotak Life Insurance, he oversees all aspects of Finance including Operations, Regulatory, Internal Control, Finance, Accounts and Treasury. 52
    • Uploaded for projectsparadise.com Mr. Nandip Vaidya (Vice President - Sales) Mr. Nandip Vaidya is the Vice President - Sales at Kotak Life Insurance. Mr. Vaidya holds a B.Tech (Mechanical) degree from IIT Mumbai and has also completed his Post Graduate Diploma in Business Management from IIM-Ahmedabad. He started his career as a Management Consultant at A.F. Fergusson. After completing 5 years there, he moved onto various positions within the Kotak Mahindra group starting from Car Financing (Kotak Mahindra Finance Ltd) to Stock broking & Distribution of investment products/ Mutual funds (Kotak Securities). Mr. Vaidya set up the private banking business and private equity fund for the Kotak group. 53
    • Uploaded for projectsparadise.com Mr. Arun Patil (Vice President - Sales & Management Development) Mr. Eksteen de Waal is the Sales Training Head of Kotak Life Insurance. He joined on secondment from Old Mutual South Africa for a period of two years. Eksteen is a post- graduate in Law and practiced Law as well as lectured at South African Universities before joining the Life Insurance Industry. He has over 23 years' experience in the Life Insurance Industry. He worked for Sanlam Life in South Africa for 3 years before joining Old Mutual more than 20 years ago. Eksteen started with Old Mutual as a Legal Adviser and after that held various positions. He sold life assurance for some time, served as Head of Old Mutual's Training Division, Head of Old Mutual's Trust Company, Project Leader for 54
    • Uploaded for projectsparadise.com implementing a new Sales Process with McKinsey's, Head of Conventions and Motivation, Head of Agency Marketing and finally Head of Banc assurance with Old Mutual Bank. In addition he played a role in the wider Industry. He was Vice-President of the South African Insurance Institute for two years as well as Vice- President of the Financial Planning Institute for three years. In this time Eksteen pioneered the introduction of the CFP qualification into South Africa. He has traveled widely during his career, working in the USA and England and also implemented Training Programme in Namibia, Zimbabwe, Malawi and Kenai. His current role is to substantially upgrade the level of Training and assist in the implementation of Performance Management Systems in Kotak Life Insurance. AREAS OF BUSINESS Kotak Mahindra one of India's leading financial institutions was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Mr. Uday Kotak, Mr. Sidney A. A. Pinto and Kotak & Company. Industrialists Mr. Harish Mahindra 55
    • Uploaded for projectsparadise.com and Mr. Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance Limited. It's been a steady and confident journey to growth and success. In October 2005, Kotak Group acquired the 40% stake in Kotak Mahindra Prime held by Ford Credit International (FCI) and FCI acquired the stake in Ford Credit Kotak Mahindra (FCKM) held by Kotak Group. In March 2006, Kotak Group has agreed to buy 25% stake held by Goldman Sachs in KMCC and KS subject to regulatory approvals. Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions that encompass every sphere 56
    • Uploaded for projectsparadise.com of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. The group has a net worth of around Rs.2,000 crore and employs around 6,000 employees across its various businesses servicing around one million four hundred thousand customer accounts through a distribution network of branches, franchisees, representative offices and satellite offices across 216 cities and towns in India and offices in New York, London, Dubai and Mauritius. 57
    • Uploaded for projectsparadise.com KOTAK GROUP IS INVOLVED IN THE FOLLOWING AREAS OF BUSINESS:- Kotak Mahindra Prime Ltd. Kotak Mahindra Prime Limited (KMPL) is a 100% subsidiary of Kotak Mahindra Group (Kotak Group) formed to finance all passenger vehicles. The company is dedicated to financing and supporting automotive and automotive related manufacturers, dealers and retail customers. The Company offers car financing in the form of loans for the entire range of passenger cars and multi utility vehicles. The Company also offers Inventory funding to car dealers and has entered into strategic arrangement with various car manufacturers in India for being their preferred financier. As on March 31, 2005, KMP has a retail distribution network comprising of 54 branches (including representative offices) covering about 100 locations in 17 states in the country and has a 58
    • Uploaded for projectsparadise.com wide network of Direct Marketing Associates, brokers and agencies supporting the distribution network and servicing around 113,000 customers. Kotak Mahindra Capital Company Ltd. Kotak Investment Banking* (KIB) is India's premier Investment Bank Kotak Investment Banking (KIB) and Kotak Institutional Equities represent the securities business of the Kotak Mahindra Group ** (KI), Kotak Investment Bank is a full service Investment Bank bringing to its clients the global reach and the local knowledge and skills of Kotak Mahindra. As a full service Investment Bank, Kotak Investment Baking’s core business areas include Equity Issuances, Mergers & Acquisitions, Advisory Services and Fixed Income Securities and Principal Business. Its strength lies in understanding the clients' businesses backed by a strong research team and an extensive distribution network, which spans a wide variety of investors across the country. It is also the first Indian Investment Bank to be registered with the Securities & Futures Authority in the UK (through our wholly 59
    • Uploaded for projectsparadise.com owned subsidiary) and the National Association of Securities and Dealers in the USA. It’s the first Indian Investment Bank to be appointed by the Government of India as a Co-lead Manager in their international divestment of Gas Authority of India Ltd through a GDR offering. Kotak Investment Bank today well positioned in an increasing globalize environment to provide full service to its clients based either in India or overseas. Kotak Mahindra Bank Ltd. Kotak Mahindra Bank Limited (KMBL) is the holding company and the flagship of the Kotak Mahindra Group. It was actually incorporated as Kotak Capital Management Finance Limited on November 2, 1985 and obtained its ‘Certificate of Commencement of Business on February 11, 1986. It commenced operations with Bill Discounting and soon started other fund-based activities like corporate leasing & hire purchase, automobile finance and money market operations. Subsequently, it also entered the funds syndication and the Investment banking business. 60
    • Uploaded for projectsparadise.com Kotak Mahindra Asset Management Company Kotak Mahindra Asset Management Company (KMAMC), a wholly owned subsidiary of KMBL, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMAMC started operations in December 1998 and has over 1, 35,000 investors in various schemes. KMMF offers schemes catering to investors with varying risk- return profiles and was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities. International Subsidiaries Kotak Mahindra International Limited (KMIL) is the international arm of the Kotak Mahindra Group and was incorporated in 1994 in Mauritius, with a branch in Dubai. Today the international operations also cover the United Kingdom, through Kotak Mahindra U.K. Limited and in the USA, through Kotak Mahindra Inc. USA. These companies are subsidiaries of Kotak Mahindra Capital Company (KMCC) – the Investment Banking Division of the Group. Services offered include GDR and ADR trading and broking, debt syndication, placement of Indian securities and advisory services. Kotak Mahindra was the first Indian group to be registered with the Securities and Futures Authority, U.K. Also, 61
    • Uploaded for projectsparadise.com Kotak Mahindra is the first Indian group registered in the US providing service to both Institutional investors and High Net worth Clients in the US for their investments into Indian markets. Kotak Securities Kotak Securities Ltd., subsidiary of Kotak Mahindra Bank Ltd., is one of India’s largest brokerage and distribution house. Over the years Kotak Securities has been one of the leading investment service providers catering to the needs of various investor categories both institutional and non-institutional. The Private client group (PCG) of the Company provides value added investment advisory services to high net worth individuals, NRI investors, trusts, corporate and Banks. The investment product range offered by PCG covers equity investment and equity trading, equity derivatives, portfolio management, IPO’s and Mutual funds. The Company has a full fledged research division involved in macro economic studies, sectoral research and company specific equity research combined with a strong and well networked sales force which helps deliver current and up to date market information and news. Kotak Securities Ltd., Depository Participant with National Securities Depository Limited (NSDL) and Central Depository Services Ltd. (CDSL) provides dual benefit services wherein the 62
    • Uploaded for projectsparadise.com investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them. Under the Portfolio Investment Scheme offered by the Company, the funds of the investors are managed by a highly competent team comprising of Equity Strategist, a Portfolio Manager and a team of equity, technical and derivatives analysts. Kotak Securities Ltd., also an Approved Intermediary under the Securities Lending Scheme, 1997, facilitates clients to borrow and lend securities. 63
    • Uploaded for projectsparadise.com KMOM – PROGRESS TILL DATE • 44 branches in 31 cities. • 7500 life advisors. • 1000employees of very good quality. • Ranks 2nd in terms of average premium per policy. • Ranks 4th in total advertising awareness. • First year premium income: 2001-02: 7 Crores 2002-03: 35 Crores 2003-04: 124 Crores 2004-05: 375 Crores 64
    • Uploaded for projectsparadise.com KMOM – THE PARTNERSHIP AND LINEAGE A 26%-74% JOINT VENTURE BETWEEN KOTAK MAHINDRA AND OLD MUTUAL KOTAK LIFE INSURANCE Brand equity Entrepreneurial employees Branch network Knowledge of the Indian market Access to customer base Distribution associates OLD MUTUAL PLC Domain knowledge Technology Product innovation Training expertise Global perspective System and processes Multi channel management 65
    • Uploaded for projectsparadise.com Old Mutual was established more than 150 years ago. Old mutual plc. is a world-class international financial service company. It owns the largest companies in the following areas in South Africa. They are: 1. Life Insurance Company 2. Asset Management Company 3. Bank 4. Non-life insurance company It has been developed into an International financial services group whose activities are focused on asset gathering and asset management. The Old Mutual Group offers a diverse range of financial services in three principal geographies: South Africa, the United States and the United Kingdom. The company is listed on the London Stock Exchange with a market capitalization of approximately $6 billion and is a member of the elite FTSE 100 index. In the 2003 rankings of the World's 500 largest corporations by Fortune magazine, Old Mutual climbed 87 places to position number 366 and was also listed as the 14th largest insurance company in the world. Old Mutual is the largest financial services business in South Africa, through its life insurance, asset management, banking and 66
    • Uploaded for projectsparadise.com general insurance operations. The company serves 4 million life insurance policyholders and employs over 13 000 South Africans in its local operations. In the USA, Old Mutual is one of the top ten fixed annuity businesses offering an array of specialist asset management skills through its 23 asset management businesses. The company’s US Life business recorded sales of $4 billion at the end of 2002. Operations in the United Kingdom are focused on wealth management, through Gerrard as one of the leading private client stock broking businesses in the UK. The Old Mutual Group has the ability to cater for a variety of consumer segments and offers a comprehensive and innovative range of products for all income groups. PRODUCTS 67
    • Uploaded for projectsparadise.com Term Plans Kotak Term Assurance Plan Kotak Preferred Term Plan Endowment Plans Kotak Endowment Plan Kotak Money Back Plan Kotak Child Advantage Plan Kotak Capital Multiplier Plan Kotak Retirement Income Plan Kotak Premium Return Plan Unit Linked Plans Kotak Retirement Income Plan (Unit-linked) Kotak Safe Investment Plan II Kotak Flexi Plan Kotak Easy Growth Plan Kotak Privilege Assurance Plan Group Employee Benefits Kotak Term Grouplan Kotak Credit-Term Grouplan Kotak Complete Cover Grouplan Kotak Gratuity Grouplan 68
    • Uploaded for projectsparadise.com Kotak Superannuation Group Plan Rural Kotak Gramin Bima Yojana HIERARCHY OF KMOM LIFE INSURANCE LIMITED 69
    • Uploaded for projectsparadise.com (SURAT BRANCH) Branch manager Assistant BM Branch Operations In charge (BOE) Sales Manager Operation Executive Assistant SM Operations Life advisor Chapter: 5 70
    • Uploaded for projectsparadise.com Data interpretation of the Survey Graph analysis 71
    • Age Wise Clasification Uploaded for projectsparadise.com 45 44 40 35 30 No. of Customers 25 22 23 20 15 11 10 5 0 18-25 26-30 31-45 46 & Above Years AGE No Of Members 18-25 11 26-30 22 31-45 44 46 to above 23 72
    • Uploaded for projectsparadise.com Gender No of Member MALE 66 FEMALE 34 73
    • Gender wise clasification Uploaded for projectsparadise.com 70 66 60 50 No. of 40 34 30 20 10 0 MALE FEMALE Years 74
    • Uploaded for projectsparadise.com Members 50 48 45 40 40 35 No. of Customers 30 25 20 15 12 10 5 0 2 to 4 5 to 8 8 to aboce No of members Family member No of Member 2-4 40 5-8 48 8 to above 12 75
    • Uploaded for projectsparadise.com Income No of Members 40K -70K 17 70K-1 Lake 41 1 Lake to 3 Lakes 28 3 Lacks 14 Income Wise Classification 45 40 41 35 30 28 No. of Customers 25 20 17 15 14 10 5 0 40 k to 70k 70k to 1 Lake 1 Lake to 3 3 Lake to Lakes Above Income (P.A) 76
    • Uploaded for projectsparadise.com Insurable Member Uninsurable member 42% 58% NO OF MEMBER HAVING INSURANCE NO 58% YES 42% Only 42%people having insurance in surat so it is potential for insurance company to capture to all that market 77
    • Uploaded for projectsparadise.com 40 40 35 30 28 No. of Customers 25 21 20 18 15 11 10 5 0 Self Spouse Children Parents All Among that 42% people who having insurance, they have insurance 40% for self 28%for spouse 21% for children and 18% for their parents and 11% for all family member. Having insurance No of members self 40 spouse 28 78
    • Uploaded for projectsparadise.com children 21 parents 18 all 11 Different policy bought bye customers 35 LIC 30 ICICI 25 No. of Customers Birla 20 Sunlife SBI 15 HDFC 10 Bajaj Alliance 5 TATA AIG 0 Term Plan Endowment Whole life Money Back Retirement Child Plan Unit Link Kotak Plan Mahindr Different Plans a ING 79
    • Uploaded for projectsparadise.com Under insurable persons Fully insurable persons 82% 18% Potential of life insurance Under Insured 82% Fully Insured 18% Only 42 % people having life insurance but among them 82% people are underinsurance and only 18% people are fully insured according to them income 80
    • Uploaded for projectsparadise.com Insurance Plan Market Share Term Plan 39% Money back Plan 14% Endowment Plan 15% Child Plan 8% Unit link Plan 24% Market share of diffrent Insurance plan Unitlink plan 24% Child Plan 8% Endownment Plan 15% Term Plan 39% Moneyback Plan 14% 81
    • Uploaded for projectsparadise.com Chapter 6: Finding Suggestion 82
    • Uploaded for projectsparadise.com Finding and Suggestion • According the survey only 42% people are insured in Surat so reaming other part is potential for insurance sector. • Among that 42% people who having insurance, they have insurance 40% for self 28%for spouse 21% for children and 18% for their parents and 11% for all family member, also its very help full for insurance sector so they should take necessary step for capture this potential. • Only 42% people having insurance in Surat in that 42% there are 82 % people are under insured and other 18% people are fully insured according to their income so that is also plus point for insurance sector to capture the market 83
    • Uploaded for projectsparadise.com Chapter 7 Conclusion All the insurance company must advertise more in the market because not all people know more about life Insurance policy. Most number of people wants Guaranteed Returns so company must focus on this for the customer investment. Make insurance policy which can buy any one so we can insured them through this type of life insurance policy. 84
    • Uploaded for projectsparadise.com 8 References In order to obtain more information regarding the present study and to substantiate it with theoretical proof, the following references were made: - Insurance chronicle, January 2006 Special issue “Insurance Industry 2006”. Websites visited: www.kotaklifeinsurance.com www.google .com 85
    • Uploaded for projectsparadise.com Chapter 9: Annexure Questionnaire 1) Name ______________________________ 2) Age 1) 18-25 2)26 to 30 3) 31 to 45 4) 46 to above 3) Gender 1) male ____) female____ 4) Occupation: 1) Service 2) Business 3) Professional 4 ) other 5) Family member 1) 2 to 4 2) 5 to 8 3) 8 to above 6) Do u have a life insurance? Yes_______ No_______ If yes, Which is it? 86
    • Uploaded for projectsparadise.com Company’s Term Endow Whole Money Retire Child Unit name plan ment life back ment Plan link Plan LIC ICICI Prudential Birla Sunlife SBI Life HDFC Standard Life Bajaj Alliance TATA AIG Kotak Mahindra ING Vysya Max Newyork Met Life Reliance Shri Ram Sahara 7) What is your annual income? 1) 40 K to 70 K 2) 70 K to 1 lake 3) 1 lake to 3 lakes 4) 3 lakes to above 87