IDBI Federal Comparative study with LIC

COMPARATIVE STUDY OF TWO
LIFE INSURANCE COMPANIES IN INDIA
(IDBI Federal Life Insurance Co. Ltd. & LIC)
Summer Internship Report Submitted in
Partial fulfillment of MBA Programme
2019-2020
By
NEHA
18/PMB/015
To
School of Management
Gautam Buddha University
Gautam Buddha Nagar- 201 312

(i)
Declaration by Student
I, NEHA Roll No. 18/PMB/015, hereby declare that this project work is the result of my own
research and no part of it has been presented for any other degree in this university or elsewhere.
I am solely responsible for any error found in this work.
Date: …………………….
Place: ……………………..
Student Signature: ………………………………….

(ii)
To Whomsoever It May Concern
This is to certify that NEHA, student of MBA 3rd
Semester at School of Management, Gautam
Buddha University, Greater Noida has done a project work entitled “COMPARATIVE
STUDY OF TWO LIFE INSURANCE COMPANIES IN INDIA (IDBI FEDERAL LIFE
INSURANCE CO. LTD. & LIC)” at our organization from 3rd
June, 2019 to 10th
July, 2019.
Signature of Co-Supervisor
Name and Designation of the Co-Supervisor

(iii)
Certificate from the Faculty Guide
This is to certify that the project titled “COMPARATIVE STUDY OF TWO LIFE
INSURANCE COMPANIES IN INDIA (IDBI FEDERAL LIFE INSURANCE CO. LTD. &
LIC)” has been done under my supervision by NEHA of MBA III semester.
Name and Signature of the Faculty guide

(iv)
ACKNOWLEDGEMENT
Summer Internship has an important role in exposing the real life situation in an industry. It was
a great experience for me to work on internship at IDBI Federal Life Insurance Co. Ltd.
through which I could learn how to work in a professional environment.
Now I would like to thank the people who guided me and have been a constant source of
inspiration throughout the tenure of my summer training.
I am sincerely grateful to-
Miss. Sneha Jain- Mentor
Mr. Harmeet Singh & Mr. Arindam Gupta- Trainers
at IDBI Federal Life Insurance Co. Ltd. Delhi who rendered me their valuable assistance,
constant encouragement and able guidance which made this training actually possible.
I wish my deep sense of gratitude to my parents whose affectionate guidance has enable me to
complete the training successfully. I also wish my deep sense of gratitude to Dr. Kavita Singh
(University SOM mentor), Gautam Buddha University, Greater Noida and other faculty
members.
NEHA
MBA 3rd
semester

(v)
EXECUTIVE SUMMARY
The insurance sector in India is still in its nascent stages. But the Indians are an extremely risk
averse race. Thus due to this only the government entities have a good presence and brand
recognition in India and the others have a difficult time carving a space out for themselves in the
market.
In this sector the visibility of the brand matters the most and is of utmost importance. Since,
insurance is the backup plan for more risky propositions like shares and stocks. Hence the
customers who want to go for these propositions too are extremely risk averse. Hence there has
to be products specifically for this segment. And then expand furthermore into other segments
while keeping their base customers with them.
This study is mainly related to life insurance business in India and privatization of life insurance
sector. LIC was monopoly in insurance sector till 2000. The competition has increased after the
privatization of insurance. With the entrance of private player, the scenario of the insurance
business changed. The study helps to make comparison between the LIC with the new private
life insurance company (IDBI Federal Life Insurance Co. Ltd.) on basis of quality of services,
consumer satisfaction, awareness, consumer preference, market share, premium collection and
their working as a whole. It shows the customer view point with respect to their company.

TABLE OF CONTENT
Sr. No. Title Page no.
1 Declaration by student i
2 Certificate by Industry Supervisor ii
3 Certificate by University Mentor iii
4 Acknowledgement iv
5 Executive Summary v
6 Introduction 1
7 The Insurance Industry in India 2
8 Insurance Companies in India 9
9 Insurance Product 11
10 Recent Trends in the Industry 12
11 Company Description 14
12 Mission, Vision & Values of IDBI Federal 17
13 Organisational Structure 18
14 Product Profile 20
15 Literature Review 21
16 Objective of the Project/ Study 23
17 Scope of the Study 23
18 Research Methodology 24
19 Data Analysis & Interpretation 25
20 Customer Satisfaction & Awareness 32
21 Findings 35
22 Conclusion 36
23 Recommendations/ Suggestions 37
24 References 38
25 Annexure 39

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INTRODUCTION
The insurance sector is made up of companies that offer risk management in the form of
insurance contracts. The basic concept of insurance is that one party, the insurer, will
guarantee payment for an uncertain future event. Meanwhile, another party, the insured or the
policyholder, pays a smaller premium to the insurer in exchange for that protection on that
uncertain future occurrence.
As an industry, insurance is regarded as a slow-growing, safe sector for investors. This
perception is not as strong as it was in the 1970s and 1980s, but it is still generally true when
compared to other financial sectors.
• The insurance industry is made up of different types of players operating in different
spaces.
• Life insurance companies focus on legacy planning and replacing human capital value,
health insurers cover medical costs, and property casualty/accident insurance is aimed at
replacing the value of homes, cars, or valuables.
• Insurance companies can be structured either as a traditional stock company with outside
investors or mutual companies where policyholders are the owners.
Insurance industry in India has seen a major growth in the last decade along with an introduction
of a huge number of advanced products. This has led to a tough competition with a positive and
healthy outcome.
Insurance sector in India plays a dynamic role in the wellbeing of its economy. It substantially
increases the opportunities for savings amongst the individuals, safeguards their future and helps
the insurance sector form a massive pool of funds.
With the help of these funds, the insurance sector highly contributes to the capital markets,
thereby increasing large infrastructure developments in India.

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THE INSURANCE INDUSTRY IN INDIA
The Indian Insurance Sector
The Indian Insurance Sector is basically divided into two categories – Life Insurance and Non-
life Insurance. The Non-life Insurance sector is also termed as General Insurance. Both the Life
Insurance and the Non-life Insurance is governed by the IRDAI (Insurance Regulatory and
Development Authority of India).
This government organization thoroughly monitors the entire insurance sector in India and also
acts like a custodian of all the insurance consumer rights. This is the reason all the insurers have
to abide by the rules and regulations of the IRDAI.
The Insurance sector in India consists of total 57 insurance companies. Out of which 24
companies are the life insurance providers and the remaining 33 are non-life insurers. Out which
there are seven public sector companies.
Life insurance companies offer coverage to the life of the individuals, whereas the non-life
insurance companies offer coverage with our day-to-day living like travel, health, our car and
bikes, and home insurance. Not only this, but the non-life insurance companies provide coverage
for our industrial equipment’s as well. Crop insurance for our farmers, gadget insurance for
mobiles, pet insurance etc. are some more insurance products being made available by the
general insurance companies in India.
The life insurance companies have gained an investment prospectus in the recent times with an
idea of providing insurance along with a growth of your savings. But, the general insurance
companies remain reluctant to offer pure risk cover to the individuals.
The Past of Insurance Sector In India
In the history of the Indian insurance sector, a decade back LIC was the only life insurance
provider. Other public sector companies like the National Insurance, United India Insurance,

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Oriental Insurance and New India Assurance provided non-life insurance or say general
insurance in India.
However, with the introduction of new private sector companies, the insurance sector in India
gained a momentum in the year 2000. Currently, 24 life insurance companies and 30 non-life
insurance companies have been aggressive enough to rule the insurance sector in India. But,
there are yet many more insurers who are waiting for IRDAI approvals to start both life
insurance and non-life insurance sectors in India.
Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started
functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its
business
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 are 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 crores from the Government of India.
The Present of Insurance Sector In India
So far as the industry goes, LIC, New India, National Insurance, United insurance and Oriental
are the only government ruled entity that stands high both in the market share as well as their
contribution to the Insurance sector in India.
There are two specialized insurers – Agriculture Insurance Company Ltd catering to Crop
Insurance and Export Credit Guarantee of India catering to Credit Insurance. Whereas, others are

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the private insurers (both life and general) who have done a joint venture with foreign insurance
companies to start their insurance businesses in India.
This collaboration with the foreign markets has made the Insurance Sector in India only grow
tremendously with a high current market share. India allowed private companies in insurance
sector in 2000, setting a limit on FDI to 26%, which was increased to 49% in 2014. IRDAI states
– Insurance Laws (Amendment) Act, 2015 provides for enhancement of the Foreign Investment
Cap in an Indian Insurance Company from 26% to an Explicitly Composite Limit of 49% with
the safeguard of Indian Ownership and Control. Private insurers like HDFC, ICICI and SBI have
been some tough competitors for providing life as well as non-life products to the insurance
sector in India.
Market Size
Government's policy of insuring the uninsured has gradually pushed insurance penetration in the
country and proliferation of insurance schemes.
Gross premiums written in India reached Rs 5.53 trillion (US$ 94.48 billion) in FY18, with Rs
4.58 trillion (US$ 71.1 billion) from life insurance and Rs 1.51 trillion (US$ 23.38 billion) from

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non-life insurance. Overall insurance penetration (premiums as % of GDP) in India reached 3.69
per cent in 2017 from 2.71 per cent in 2001.
In FY19 (up to October 2018), premium from new life insurance business increased 3.66 per
cent year-on-year to Rs 1.09 trillion (US$ 15.46 billion). In FY19 (up to October 2018), gross
direct premiums of non-life insurers reached Rs 962.05 billion (US$ 13.71 billion), showing a
year-on-year growth rate of 12.40 per cent.

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Investments and Recent Developments
The following are some of the major investments and developments in the Indian insurance
sector.
• As of November 2018, HDFC Ergo is in advanced talks to acquire Apollo Munich Health
Insurance at a valuation of around Rs 2,600 crore (US$ 370.05 million).
• In October 2018, Indian e-commerce major Flipkart entered the insurance space in
partnership with Bajaj Allianz to offer mobile insurance.
• In August 2018, a consortium of WestBridge Capital, billionaire investor Mr Rakesh
Jhunjunwala announced that it would acquire India’s largest health insurer Star Health
and Allied Insurance in a deal estimated at around US$ 1 billion.
• In September 2018, HDFC Ergo launched ‘E@Secure’ a cyber insurance policy for
individuals.
• Insurance sector companies in India raised around Rs 434.3 billion (US$ 6.7 billion)
through public issues in 2017.
• In 2017, insurance sector in India saw 10 merger and acquisition (M&A) deals worth
US$ 903 million.
• India's leading bourse Bombay Stock Exchange (BSE) will set up a joint venture with
Ebix Inc to build a robust insurance distribution network in the country through a new
distribution exchange platform.
Government Initiatives
The Government of India has taken a number of initiatives to boost the insurance industry. Some
of them are as follows:
• In September 2018, National Health Protection Scheme was launched under Ayushman
Bharat to provide coverage of up to Rs 500,000 (US$ 7,723) to more than 100 million
vulnerable families. The scheme is expected to increase penetration of health insurance in
India from 34 per cent to 50 per cent.
• Over 47.9 million famers were benefitted under Pradhan Mantri Fasal Bima Yojana
(PMFBY) in 2017-18.

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• The Insurance Regulatory and Development Authority of India (IRDAI) plans to issue
redesigned initial public offering (IPO) guidelines for insurance companies in India,
which are to looking to divest equity through the IPO route.
• IRDAI has allowed insurers to invest up to 10 per cent in additional tier 1 (AT1) bonds
that are issued by banks to augment their tier 1 capital, in order to expand the pool of
eligible investors for the banks.
The Future of Insurance Sector In India
Though LIC continues to dominate the Insurance sector in India, the introduction of the new
private insurers will see a vibrant expansion and growth of both life and non-life sectors in 2017.
The demands for new insurance policies with pocket-friendly premiums are sky high. Since the
domestic economy cannot grow drastically, the insurance sector in India is controlled for a
strong growth.
With the increase in income and exponential growth of purchasing power as well as household
savings, the insurance sector in India would introduce emerging trends like product innovation,
multi-distribution, better claims management and regulatory trends in the Indian market.
The government also strives hard to provide insurance to individuals in a below poverty line by
introducing schemes like the
• Pradhan Mantri Suraksha Bima Yojana (PMSBY),
• Rashtriya Swasthya Bima Yojana (RSBY) and
• Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
Introduction of these schemes would help the lower and lower-middle income categories to
utilize the new policies with lower premiums in India.

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With several regulatory changes in the insurance sector in India, the future looks pretty awesome
and promising for the life insurance industry. This would further lead to a change in the way
insurers take care of the business and engage proactively with its genuine buyers.
Some demographic factors like the growing insurance awareness of the insurance, retirement
planning, growing middle class and young insurable crowd will substantially increase the growth
of the Insurance sector in India.

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INSURANCE COMPANIES IN INDIA
Life Insurance Companies-
• Life Insurance Corporation of India
• Aegon Life Insurance Co. Ltd.
• Aviva Life Insurance Co. India Ltd.
• Bajaj Allianz Life Insurance Co. Ltd.
• Bharti AXA Life Insurance Co. Ltd.
• Birla Sun Life Insurance Co. Ltd.
• Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.
• DHFL Pramerica Life Insurance Co. Ltd.
• Edelweiss Tokio Life Insurance Co. Ltd
• Exide Life Insurance Co. Ltd.
• Future Generali India Life Insurance Co. Ltd.
• HDFC Standard Life Insurance Co. Ltd.
• ICICI Prudential Life Insurance Co. Ltd.
• IDBI Federal Life Insurance Co. Ltd.
• IndiaFirst Life Insurance Co. Ltd
• Kotak Mahindra Old Mutual Life Insurance Ltd.
• Max Life Insurance Co. Ltd.
• PNB MetLife India Insurance Co. Ltd.
• Reliance Life Insurance Co. Ltd.
• Sahara India Life Insurance Co. Ltd.
• SBI Life Insurance Co. Ltd.
• Shriram Life Insurance Co. Ltd.
• Star Union Dai-Ichi Life Insurance Co. Ltd.
• Tata AIA Life Insurance Co. Ltd.

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General Insurance Companies-
• Aditya Birla Health Insurance Co. Ltd.
• Bajaj Allianz General Insurance Co. Ltd.
• Bharti AXA General Insurance Co.Ltd.
• Cholamandalam General Insurance Co. Ltd.
• Future Generali India Insurance Co.Ltd.
• HDFC ERGO General Insurance Co. Ltd.
• ICICI Lombard General Insurance Co. Ltd.
• IFFCO-Tokio General Insurance Co. Ltd.
• Kotak General Insurance Co. Ltd.
• L&T General Insurance Co. Ltd.
• Liberty Videocon General Insurance Co. Ltd.
• Magma HDI General Insurance Co. Ltd.
• Raheja QBE General Insurance Co. Ltd.
• Reliance General Insurance Co. Ltd.
• Royal Sundaram Alliance Insurance Co. Ltd
• SBI General Insurance Co. Ltd.
• Shriram General Insurance Co. Ltd.
• TATA AIG General Insurance Co. Ltd.
• Universal Sompo General Insurance Co.Ltd.
Health Insurance Companies-
• Apollo Munich Health Insurance Co.Ltd.
• Star Health Allied Insurance Co. Ltd.
• Max Bupa Health Insurance Co. Ltd.
• Religare Health Insurance Co. Ltd.
• Cigna TTK Health Insurance Co. Ltd.

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INSURANCE PRODUCTS
There are 2 types of insurance covers. One is Life Insurance and the other is General
Insurance. There are various types of life insurance policies in India.
1. Endowment policy
2. Whole Life plan
3. Term Life Policy
4. Money Back policy
5. Joint Life Policy
6. Group Insurance Policy
7. Loan Cover Term Assurance Policy
8. Pension Plan or annuities.
9. ULIP
Then there is the General Insurance, which is used to provide cover to properties in return for the
payment of a premium. The various segments being covered under this section are:
1. Home Insurance
2. Health Insurance
3. Motor Insurance
4. Travel Insurance

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RECENT TRENDS IN THE INDUSTRY
The strategy that is being followed in the insurance sector in India is the push strategy and not a
pull strategy. Agents are used to sell the policies to the customer by showcasing the benefits to
the prospective buyers. The policies with higher premium resulting in higher commissions are
pushed to the customers as they help the agent in pocketing higher commission.
The new trend that is emerging in India is the consultative approach. This is the modern
approach. Few of the preliminary steps are similar to the earlier steps as the call is made to the
client as usual, but from then on the customer is seen as a person to be served not a person to be
sold to, giving priority to profit motive. Generally, people selling insurance have to do it with a
mentality of social service and not with profit motive.
The various steps involved in the process are
Step 1: Need Analysis
Step 2: Product Selection
Step 3: Presentation of the reviewed product
Step 4: Closing of the sale
Not only in the way the products are being sold but there is innovation in the products itself and
newer policies are being formulated to full fill the needs of the customer.
At present life insurers are trying to concentrate on the pension schemes where as non life
insurers are trying to increase their market share by bringing in more innovative schemes. But
with the increase in the presence of the number of insurance companies and the competition
intensifying in the near future the companies will have to think of ways to make increase the
brand awareness and brand visibility of their products.
The key differentiator for the insurance industry is the quality of customer service and
consultancy being provided. Effective CRM has to be employed for the differentiation and
getting customer loyalty.

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Even in the realm of distribution channels there are innovations taking please. The traditional
channels are replaced by newer channels like corporate agency, bank assurance, e-insurance
cooperative societies and panchayats. With the advent of information technology newer avenues
of comparing and buying policies have emerged.

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COMPANY DESCRIPTION
About IDBI Federal Life Insurance
1. IDBI Federal Life Insurance is one of India’s growing life insurance companies and offers
a diverse range of wealth management, protection and retirement solutions to individual
and corporate.
2. IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, India’s premier
development and commercial bank, Federal Bank, one of India’s leading private sector
banks and Ageas, a multinational insurance giant based out of Europe.
3. Having commenced operations in 2008, IDBI Federal was able to achieve breakeven
within just 5 years; the Company’s passion for innovation and growth helped it achieve
this feat.
4. Through a nationwide network of 2,500 branches of IDBI Bank and Federal Bank, and a
sizeable network of advisors and partners, IDBI Federal Life Insurance has achieved
presence across the length and breadth of the country. As on September 30, 2014, the
company has issued nearly 7.3 lakh policies with a sum assured of over Rs. 37,948 crores.
IDBI Federal Life Insurance has total assets under management of 3855 crores and a
robust capital base of over 800 crores, as on September 30, 2014.

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About the sponsors of IDBI Federal Life Insurance Co. Ltd.
IDBI Bank Ltd. continues to be, since its inception, India’s premier industrial development
bank of India. It came into being as on July 01, 1964 to support India’s industrial backbone.
Today, it is amongst India’s foremost commercial banks, with a wide range of innovative
products and services, serving retail and corporate customers in all corners of the country from
1459 branches and 2727 ATMs. The Bank offers its customers an extensive range of diversified
services including project finance, term lending, working capital facilities, lease finance, venture
capital, loan syndication, corporate advisory services and legal and technical advisory services to
its corporate clients as well as mortgages and personal loans to its retail clients. As part of its
development activities, IDBI Bank has been instrumental in sponsoring the development of key
institutions involved in India’s financial sector – National Stock Exchange of India Limited
(NSE) and National Securities Depository Ltd, SHCIL (Stock Holding Corporation of India Ltd).
Federal Bank is one of India’s leading private sector banks, started in 1945 with a dominant
presence in the state of Kerala. It has a strong network of over 1,214 branches and 1,435 ATMs
spread across India. The bank provides over four million retail customers with a wide variety of
financial products. Federal Bank is one of the first large Indian banks to have an entirely
automated and interconnected branch network. In addition to interconnected branches and

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ATMs, the Bank has a wide range of services like Internet Banking, Mobile Banking, Tele
Banking, Any Where Banking, debit cards, online bill payment and call centre facilities to offer
round the clock banking convenience to its customers. The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards.
Ageas is an international insurance group with a heritage spanning 190 years. Ranked among the
top 20 insurance companies in Europe, Ageas has chosen to concentrate its business activities in
Europe and Asia, which together make up the largest share of the global insurance market. These
are grouped around four segments: Belgium, United Kingdom, Continental Europe and Asia and
served through a combination of wholly owned subsidiaries and partnerships with strong
financial institutions and key distributors around the world. Ageas operates successful
partnerships in Belgium, the UK, Luxembourg, Italy, Portugal, Turkey, China, Malaysia, India
and Thailand and has subsidiaries in France, Hong Kong and the UK. Ageas is the market leader
in Belgium for individual life and employee benefits, as well as a leading Non-Life player
through AG Insurance. In the UK, Ageas is the sixth largest Non-Life insurer with a number 2
position in cars insured and has a strong presence in the over 50's market. Ageas employs more
than 13,000 people in the consolidated entities and over 30,000 in the non-consolidated
partnerships, and has annual inflows of more than EUR 23 billion.

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MISSION, VISION AND VALUES OF IDBI FEDERAL
MISSION-
“To be the preferred company of choice for the customers looking for a product service or advise
in their financial planning or about their financial investment and add value to the lives of our
customers.”
VISION-
“To continually enhance customer experience and enhance their satisfaction through the delivery
of highly innovated products customized according to the needs of the customers to bring in
transparency in their working and operations of the company. And also to develop a quality
human capital to achieve their mission and vision.”
VALUES OF IDBI FEDERAL-
The first and foremost value which IDBI federal upholds is the transparency. They believe in
clear communication between their partners and stakeholders so that there is no discrepancy
between them.
The second most important thing is the value that they are providing to their customer. They
believe very strongly that whatever they do should be perceived as a high value product by their
customer.
They believe in being rock solid while delivering value to their customers. This results into being
financially strong as the profit is spilled over due to good will. They are extremely customer
friendly as they hold this value the highest. They believe in providing high value to their
stakeholder and partners in their business.

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ORGANISATIONAL STRUCTURE
➢ Sales Organisational Structure

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➢ Operations Organisational Structure

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PRODUCT PROFILE
WEALTHSURANCE: The Wealthsurance Milestone Plan enables the policyholder to save and
build wealth to meet their financial goals. This Plan comes with a wide range of 13 investment
options and 7 insurance benefits - all packaged with a low charge structure and unmatched
flexibility.
HOMESURANCE: IDBI Federal Homesurance Protection Plan provides full insurance cover
for properties even under construction, thus ensuring that the beneficiary gets the full sanctioned
amount in case of any unfortunate event. It also has an innovative fixed period cover for those
who would aim to prepay their loans early.
BONDSURANCE: Bondsurance is designed for customers looking for guaranteed returns which
will not get affected by financial market conditions. It offers guaranteed return on investment
along with life insurance cover.
MICROSURANCE: IDBI Federal Microsurance Plan is a one of its kind insurance plan which
can be very useful for various Micro Financial Institutions and NGOs, wherein not only the
members but even the member’s family gets an insurance cover.
TERMSURANCE: IDBI Federal Termsurance Protection Plan offers the unique Increasing
Cover option that automatically increases the cover every year without increasing the premium.
INCOMESURANCE: Knowing the customer helped us to combine the Endowment & Money
Back plans into a single plan. It linked the returns to the G-Sec rates, transparently declared by
the government. Also, the Guaranteed Annual Payout and other benefits upon death are tax-free
under Sec 10(10D).

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LITERATURE REVIEW
A literature review discusses published information in a particular subject area, and sometimes
information in a particular subject area within a certain time period. A literature review can be
just a simple summary of the sources, but it usually has an organizational pattern and combines
both summary and synthesis. A summary is a recap of the important information of the source,
but a synthesis is a re-organization, or a reshuffling, of that information. It might give a new
interpretation of old material or combine new with old interpretations. Or it might trace the
intellectual progression of the field, including major debates. And depending on the situation; the
literature view may evaluate the sources and advice the reader on the pertinent or relevant. This
chapter began with policyholder satisfaction, awareness for life insurance policies, importance of
customer retention, performance of insurers, benefits of customer retention.
J.D. Power(2011)1 in their article titled, “Policyholders Satisfaction with the Agency-Based
Sales Surpasses Satisfaction with Direct Sales in Japan”, reveals that policyholders are more
satisfied with timely services, procedure and documentation followed, low premium and
innovative products offered by the Prudential Life Insurance Company.
Deepika Upadhyaya and Manish Badlani (2011)2 carried out a study entitled, “Service
Quality Perception and Customer Satisfaction in Life Insurance Companies in India”, with
a view to identify customer satisfaction in retail life insurance in India. They identify that the
policyholders are more satisfied with the pricing factor followed by employee competence,
product and service, technology, physical ambience of the company, trust, service delivery,
advertising and service management.
S.Subashini & Dr.R.Velmurugan Carried out study “Policyholders Satisfaction of Life
Insurance Products with Reference to Coimbatore District”. A dissatisfied customer spreads
the message of dissatisfaction to the determinant of organization interests. Parameters of service
excellence would have to be developed to ensure that customer satisfaction levels are kept high.
Therefore, need to examine various aspects of service excellence and customer equity so as to
ensure customer satisfaction in an era where consumer empowerment is steadily rising. An

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efficient system ensures customer satisfaction and thus, customer loyalty, beneficial to all the
stakeholders of the insurance ecosystem. Prompt delivery of services in insurance key to
customer satisfaction and business growth.
MS. BABITA YADAV et al. (2014) Studied different factors which influence customers policy
buying decision and also analyze the preferences of customers while life policy investment
decision-making. LIC is the most accepted and popular brand in life insurance, the market share
of private insurers are gradually increasing with people trust and better services offered by them
are some of the main findings of the study.
BidyadharPadhi (2013) The paper focused on the role and performance of private insurance
companies for the period from 2001 to 2012. The study will reflect the performance of selected
private insurance companies in the areas like number of policies floated, amount of premium
collected and the annual growth in the respective areas from 2001 to 2012. LIC of India enjoyed
monopoly in Indian Insurance market for more than four decades. In 2000 the Insurance sector
has liberalized and Insurance Development Regulatory Authority has set up. The private players
are allowed to operate in collaboration with the foreign insurance companies.

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OBJECTIVE OF THE PROJECT/ STUDY
The main objective of this project is to study the comparative study of Life Insurance companies
in India i.e. IDBI Federal Life Insurance Co. Ltd. with reference to LIC.
❑ To compare the performance of IDBI Federal Life Insurance Co. Ltd. & LIC in terms of
their number of new policies issued.
❑ To analyze the market share and premium collection by IDBI Federal Life Insurance Co.
Ltd. & LIC.
❑ To look the awareness level of customers about various products of IDBI Federal Life
Insurance Co. Ltd. & LIC.
❑ To analyze the customer satisfaction level in IDBI Federal Life Insurance Co. Ltd. &
LIC.
SCOPE OF STUDY
The scope of a subject refers to everything that is studied as part of that subject. When we set out
to explain the scope of consumer behaviour we need to refer to all that which forms part of
consumer behaviour.
As the economy progresses from developing to developed economy, it is observed that
contribution of service sector is more and more in the total economy. Financial services are very
important among service sector and in financial services insurance sector is a dominant sector.
The study undertaken relates with life insurance sector. This sector has undergone lot of
change post liberalization and the study relates to period of last decade when private players
started their operations in India. The study is undertaken about satisfaction level, market share,
awareness, and new policies in IDBI Federal Life Insurance & LIC. The focus of the study is on
individual life insurance.

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RESEARCH METHODOLOGY
Any research finally leads to a result, which would be analyzed, from the data that have been
received by the researcher. Data analysis is meant to be the most sensitive part of any research
work.
SOURCES OF DATA:
• Secondary Data
– Internet, company’s website, articles, blogs, newspaper, magazines etc.
• Primary Data
– Structured Questionnaire and also through face to face & by share the
questionnaire online with customers.
SAMPLE DESIGN:
The research was carried out among the people (relatives, friends, family, social network
connections) and sample was around 25+.

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DATA ANALYSIS & INTERPRETATION
Life Insurance Industry in India showed a growth of 10.73% in Total First-Year Premium
collection compared to the previous year. In the meantime, 1.73% was the growth shown in
Number of Policies (NOP) & 11.63% on Sum Assured underwritten in the corresponding period.
The premium growth percentage registered this year was marginally lower compared to the
previous year. Notably, the premium growth was 10.99% in 2018-19 against the current year
growth of 10.73%.
DATA COLLECTED TO STUDY THE PERFORMANCE, NEW POLICIES ISSUED,
CLAIM SETTLEMENT, MARKET SHARE
TABLE: TOTAL LIFE INSURANCE PREMIUM
(r Crore)
INSURER 2013-14 2014-15 2015-16 2016-17 2017-18
Aditya Birla Sunlife 4833.05 5233.22 5579.71 5723.96 5903.00
Aegon 453.00 559.20 501.60 450.72 531.21
Aviva 1878.10 1796.25 1493.15 1336.51 1344.22
Bajaj Allianz 5843.14 6017.30 5897.31 6183.32 7578.37
Bharti AXA 872.65 1053.32 1208.33 1396.50 1684.39

Page | 26
Canara HSBC 1823.42 1657.02 2059.96 2294.71 2781.06
DHFL Pramerica 305.86 735.10 920.21 1142.10 1844.46
Edelweiss Tokio 110.90 193.08 310.07 441.33 638.26
Exide Life 1830.67 2027.48 2046.99 2408.58 2531.89
Future Generali 634.16 604.25 592.50 739.85 992.29
HDFC Standard 12062.90 14829.90 16312.98 19445.49 23564.41
ICICI Prudential 12428.65 15306.62 19164.39 22354.00 27068.77
IDBI Federal 826.25 1069.62 1239.67 1565.19 1783.24
IndiaFirst 2143.36 2034.11 1967.40 2265.17 2309.01
Kotak Mahindra 2700.79 3038.05 3971.68 5139.55 6598.67
Max Life 7278.54 8171.62 9216.16 10780.40 12500.89
PNB Metlife 2240.59 2461.19 2827.83 3236.08 3953.51
Reliance Nippon 4283.40 4621.08 4398.12 4026.82 4069.37
Sahara 204.63 166.86 157.05 153.94 112.03
SBI Life 10738.60 12867.11 15825.36 21015.13 25354.19
Shriram Life 594.24 734.66 1022.11 1207.94 1497.04
Star Union Dai-ichi 948.75 1134.68 1307.47 1510.88 1783.01
Tata AIA 2323.70 2122.66 2478.96 3171.08 4162.95
Private Total 77359.36 88434.36 100499.03 117989.25 140586.23
(-1.33) (14.32) (13.64) (17.40) (19.15)
LIC 236942.30 239667.65 266444.21 300487.36 318223.21
(13.48) (1.15) (11.17) (12.78) (5.90)
Industry Total 314301.66 328102.01 366943.23 418476.61 458809.44
(9.44) (4.39) (11.84) (14.04) (9.64)
Note: 1) Figures in the brackets represent the growth over the previous year in percent.

Page | 27
Total premium collected by IDBI Federal Life Insurance Co. Ltd.
TABLE: NUMBER OF INDIVIDUAL NEW POLICIES ISSUED (LIFE)
(In Lakhs)
INSURER 2013-14 2014-15 2015-16 2016-17 2017-18
LIC 345.12 201.71 205.47 201.32 213.38
(-6.17) (-41.55) (1.86) (-2.02) (5.99)
Private Sector 63.6 57.37 61.92 63.24 68.59
(-14.11) (-9.79) (7.92) (2.13) (8.47)
Total 408.72 259.08 267.38 264.56 281.97
(-7.50) (-36.61) (3.20) (-1.05) (6.58)
Note: Figures in brackets indicates the growth over the previous year in percent.

Page | 28
TABLE: INDIVIDUAL BUSINESS IN FORCE (WITHIN INDIA)
(NUMBER OF POLICIES) (2016-17 & 2017-18)
Particulars
IDBI Federal LIC of India
2016-17 2017-18 2016-17 2017-18
Non Linked Life Business
Business in force at start of the financial year 399.08 449.84 278878.07 280504.46
Additions during the year* 99.09 70.86 22392.77 23867.39
Deletions during the year** 48.33 48.97 20766.38 22192.26
Business in force at end of the financial year (A) 449.84 471.73 280504.46 282179.58
Non Linked -General Annuity Business
Business in force at end of the financial year (B) 0.00 0.00 1145.89 1504.25
Non Linked - Pension Business
Business in force at end of the financial year (C) 0.76 0.72 1588.45 1564.65
Non linked Health Business
Business in force at end of the financial year ( D) 0.25 0.21 389.23 461.85
Linked Business - Life business
Business in force at end of the financial year (E) 103.80 141.84 3798.67 3258.92
Linked General annuity business
Business in force at end of the financial year ( F) 0.00 0.00 0.00 0.00
Linked Pension Business
Business in force at end of the financial year (G) 2.20 1.80 2649.23 1948.85
Linked Health Business
Policies in ‘000

Page | 29
Business in force at end of the financial year (H) 0.00 0.00 195.20 184.05
Non-Linked VIP-Life Business
Business in force at end of the financial year (I) 0.00 0.00 146.59 65.75
Non-Linked VIP-General Annuity Business
Business in force at end of the financial year (J) 0.00 0.00 0.00 0.00
Non-Linked VIP-Pension Business
Business in force at end of the financial year (K) 0.00 0.00 0.00 0.00
Non-Linked VIP-Health Business
Business in force at end of the financial year (L) 0.00 0.00 0.00 0.00
Linked VIP-Life Business
Business in force at end of the financial year (M) 0.00 0.00 0.00 0.00
Linked VIP-General Annuity Business
Business in force at end of the financial year (N) 0.00 0.00 0.00 0.00
Linked VIP-Pension Business
Business in force at end of the financial year (O) 0.00 0.00 0.00 0.00
Linked VIP-Health Business

Page | 30
TABLE:CLAIMSETTLEMENTRATIOOFLIFEINSURANCECOMPANIES
Market Share in First Year Life Insurance Premiums (Apr-Dec 2018)
Business in force at end of the financial year (P) 0.00 0.00 0.00 0.00
Grand Total
Business in force at end of the financial year = A + B + C + D
+E+F+G+H+I+J+K+L+M+N+O+P 556.84 616.30 290417.71 291167.90
NAME OF THE COMPANY CLAIM SETTLEMENT RATIO
Life Insurance Corporation of India 98.04%
IDBI Federal Life Insurance Company Limited 91.99%
For FY 2017-18

Page | 31
LIFE INSURANCE PROVIDER STATISTICS
Insurance Provider
Claims
Paid(2017-18)
Claim
Settlement
Ratio (in %)
Percentage of
Grievances
Solved
LIC 724596 98.04% 100%
SBI Life 18274 96.76% 100%
ICICI Prudential 11216 97.88% 99.97%
HDFC Standard 12289 97.80% 99.85%
Bajaj Allianz 13176 92.04% 99.48%
Max Life 10152 98.26% 100%
Birla Sun Life 5292 96.38% 99.75%
Kotak Mahindra 2881 93.72% 99.29%
Reliance Nippon 8553 95.17% 99.94%
India First 1626 89.83% 98.86%
PNB MetLife 3726 91.12% 98.32%
Canara HSBC 797 95.22% 99.70%
Tata AIA 2793 98.00% 100%
DHFL Pramerica 572 96.62% 99.75%
Shri Ram 2524 80.23% 99.75%
Star Union Daichi 1145 92.26% 100%
Exide Life 3250 96.81% 100%
IDBI Federal 1068 91.99% 100%
Bharti Axa 860 96.85% 100%
Aviva 1056 94.45% 100%
Future Generali 1202 93.11% 100%
Edelweiss Tokio 180 95.24% 100%
Aegon Life 530 95.67% 100%
Sahara 556 82.74% 87.06%
Life Insurance Providers statistics
for 2017-18 By IRDA

Page | 32
CUSTOMER SATISFACTIONANDAWARENESS
Marital Status Place of residence
Age Group Annual Income
Have you heard of IDBI federal life insurance
company?
From which insurance company you would like to
buy?

Page | 33
Total number of policies bought What scheme of insurance policy have you taken
Reason for insuring with insurance company from
where you bought the policies
How much are you satisfied with the policy
bought?
Did you face any problem with the scheme in the
insurance company?
In which way would you want to receive
information related to Insurance?
Which company Ad you find mostly in the media? How often did you see IDBI Federal
advertisement in Television in last month?

Page | 34
Factors that Influencing while you invest in Life
Insurance
How much will you rate for IDBI Federal (products, services, satisfaction level, private
sector)?
How much will you rate for LIC (products, services, satisfaction level, public sector)?

Page | 35
FINDINGS
CUSTOMER RELINQUISHMENT
IDBI federal insurance is having a low level of customer relinquishment.
WAYS TO RETAIN THE CUSTOMER
The IDBI federal insurance company in Coimbatore branch has to take some action to have
customers for long time.
i. Free some amount of premium on continuous purchase.
ii. Give some gifts which must satisfy the needs of the customers.
iii. Establish membership cards and membership programs
iv. Frequent buyer programs which permit customers to build up fair play
v. Databases that keep track of customer’s purchases, preferences, complements and complaints,
which are used to carry out loyalty building services and dialogs.
vi. Integrated marketing programs where the advertising, direct communications, customer
service, database marketing and sales programs are all orchestrated together and designed to
build loyalty.

Page | 36
CONCLUSION
The data were collected from the customer’s response to study the customer awareness &
satisfaction level. Based on the 25+ sample size was collected. The age, marital statuses, yearly
income, preference of life insurance products and company were analyzed as personal
information in the questionnaire. According to the collected personal information, most of the
sample customers were young age, single, higher income customers who got insurance.
According to the research there is low customer relinquishment because most of the customers
did not insure out of their own interest. This is the reason why customers move out of IDBI
Federal.
All respondent are aware about the presence of company and regarding media used by their
company. LIC respondents are more aware about the plans offered by their company.
From the above analysis I can easily say that IDBI should position itself as government
organization customizing products for the rural rich populace. That way it can not only compete
with LIC and be ahead in the race but also ICICI Prudential with which it is playing a catching
up game right now.
One of the main reasons for the success of ICICI prudential in spite of that being a private
organization has been that it has penetrated the rural market well, and have used multiple
channels to sell their products.
A dissatisfied customer spreads the message of dissatisfaction to the determinant of organization
interests. Parameters of service excellence would have to be developed to ensure that customer
satisfaction levels are kept high. Therefore, need to examine various aspects of service
excellence and customer equity so as to ensure customer satisfaction in an era where consumer
empowerment is steadily rising. An efficient system ensures customer satisfaction and thus,
customer loyalty, beneficial to all the stakeholders of the insurance ecosystem. Prompt delivery
of services in insurance key to customer satisfaction and business growth.

Page | 37
RECOMMENDATIONS/SUGGESTIONS
❑ We need to tap the young crowd in the age group 18-30 and convince them that buying a
life insurance policy is necessary because life is very unpredictable.
❑ More plans should be made that involve less period of premium payment.
❑ As friends and family members are major influencers of customers, our advertisements
and promotions should be family and friend-centred.
❑ Group insurance policies like ‘full family insurance’ schemes should be made.
❑ Our reach needs to be increased through social media (Facebook, Twitter, YouTube
campaigns), television, radio, newspapers etc.
❑ Our insurance policies should have a range of premiums to suit every pocket size.
❑ In terms of distribution, we should increase the number of marketers more channels of
distribution and more intermediaries.
❑ Our advertisements should cover the benefits of our policies and what differentiates our
policies from those of other companies, in brief.
❑ Our company should have more offices at smaller towns and uncovered segments in the
cities.
❑ Mobile Commerce is the next big thing! We can have a mobile app where our customers
can get all the information related to our products as well as pay their premiums.

Page | 38
REFERENCES
• Power, J. (2011). Policyholders Satisfaction with the Agency-Based Sales Surpasses
Satisfaction with Direct Sales in Japan. IRDA Journal, 8, 8-12.
• Deepika Upadhyaya and Manish Badlani (2011) carried out a study entitled, “Service
Quality Perception and Customer Satisfaction in Life Insurance Companies in India”.
• IRDA Journal, 2, 23-31.
• International Journal of Business and Management Invention ISSN (Online): 2319 –
8028, ISSN (Print): 2319 – 801X www.ijbmi.org || Volume 5 Issue 4 || April. 2016 ||
PP—28-33
• Yadav, Babita and Tiwari, Anshuja (2012). International Journal of Marketing, Financial
Services & Management Research, Vol.1 (7), pp.106-123
• IOSR Journal of Business and Management (IOSR-JBM)e-ISSN: 2278-487X. Volume 7,
Issue 4 (Jan. - Feb. 2013), PP 45-52

11/15/2019 Customer Feedback
https://docs.google.com/forms/d/12In-spFLopEwdy0j4DpPLfEt_mzfSh8p1fHjG21bIDc/edit 1/4
Customer Feedback
This survey has been conducted to know about the customer satisfaction level & awareness of life
insurance companies in India.
* Required
1. Martial Status *
Mark only one oval.
Unmarried
Married
2. Place of residence *
Mark only one oval.
Rural
Urban
3. Age Group *
Mark only one oval.
Below 30
31-40
41-50
50 and above
4. Annual Income *
Mark only one oval.
Below 1Lac
1Lac - 5Lac
5Lac - 10 Lac
10Lac & above
5. Have you heard of IDBI federal life insurance company? *
Mark only one oval.
Yes
No

6. From which insurance company you would like to buy? *
Mark only one oval.
LIC
IDBI Federal
Other:
7. Total number of policies bought *
Mark only one oval.
One
Two
Three & more
8. What scheme of insurance policy have you taken *
Mark only one oval.
Whole life
Endowment Plus
ULIP
Money Back
Pension Funds
none
9. Reason for insuring with insurance company from where you bought the policies *
Mark only one oval.
Company profile
Brand
Grievances Handling
Public sector
Other:
10. How much are you satisfied with the policy bought? *
Mark only one oval.
Satisfied
Neutral
Dissatisfied
11. Did you face any problem with the scheme in the insurance company? *
Mark only one oval.
Yes
No
Sometimes

12. In which way would you want to receive information related to Insurance? *
Mark only one oval.
Print Ad
Magazine Ad
Hoardings
TV/ Online Ad
Agents
13. Which company Ad you find mostly in the media? *
Mark only one oval.
LIC
IDBI Federal
Other:
14. How often did you see IDBI Federal advertisement in Television in last month? *
Mark only one oval.
Zero
1-4
5-7
More than 7
15. Factors that Influencing while you invest in Life Insurance *
Mark only one oval.
security
high returns
risk coverage
services
others
16. How much will you rate for IDBI Federal (products, services, satisfaction level, private
sector)? *
Mark only one oval.
1 2 3 4 5 6 7 8 9 10
Highly
Dissatisfied
Highly
Satisfied
17. How much will you rate for LIC (products, services, satisfaction level, public sector)? *
Mark only one oval.
1 2 3 4 5 6 7 8 9 10
Highly
Dissatisfied
Highly
Satisfied

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