1. A REPORT ON
THE ROLE OF INSURANCE IN THE FINANCIAL
PLANNING OF AN INDIVIDUL
BY: SAINI RAJINDER SAINI - IBS DEHRADUN r
5/24/2009

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A REPORT
ON
THE ROLE OF INSURANCE IN THE
FINANCIAL PLANNING OF AN INDIVIDUAL
The Report is submitted as partial fulfillment
of the requirement of MBA Program of ICFAI Business School
By
SAINI RAJINDER SINGH

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(08BSDDU0100)
Contract/Project/Job Number_________________
A REPORT ON
THE ROLE OF INSURANCE IN THE
FINANCIAL PLANNING OF AN INDIVIDUAL
By
SAINI RAJINDER SINGH
RELIGARE INSURANCE BROKING LIMITED
Submitted on:
16-may-2009

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Table of contents
Certificate of approval 6
Acknowledgement 7
Abstract 8-9
Chapter I – Introduction 10-11
1.1 Need of Insurance 12-13
1.2 Brief introduction of Insurance 14
1.3 Financial Planning 15
1.4 Life Insurance as a part of Financial Planning 16
1.5 Objectives of study 17
1.6 Need of the study 17
1.7 Scope of the study 18
1.8 Statement of problem 18
Chapter II – Review of Literature 19-20
Chapter III – Research Methodology 21
3.1 Research Methods 21
3.2 Research Methodology 21
3.2 Limitation of the study 22
Chapter IV – Introduction of Industry 23
4.1 Evolution of Insurance 23-24
4.2 History of Insurance in India 25-27
4.3 Recruitment practices – An Overview 28
4.4 Sources of Recruitment 28
4.5 Advantages and Disadvantages of Insurance 28

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4.5.1 Advantages 29.
4.5.2 Disadvantages 30
4.6 Future of Insurance Sector 31
4.7 Application of Information Technology in Insurance 32
Chapter V – Insurance Companies In India 33
5.1 Religare Insurance Broking Ltd 37
5.2 Birla Sun Life Insurance 42-43
5.3 Life Insurance Corporation 44
Chapter VI – Analysis and Interpretation 45-52
Conclusion and Findings 53-55
References 56
Annexure – A 57-60

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Religare Insurance Broking Limited
# 84, Neshvilla Road, Opp.Central Methodist Church,
Dehradun-248001, Uttarakhand
Telephone: +91-9760094946
E-mail: pushker.saxena@religare.in
Website: www.religare.in
Date:
To Whom so ever It May so concern
This is to certify that Mr. Saini Rajinder Singh an MBA student of ICFAI Business School-Dehradun has
successfully completed his summer internship project on “THE ROLE OF INSURANCE IN THE FINANCIAL
PLANNING OF AN INDIVIDUAL”. This training was undertaken at RIBL, Dehradun from February 24, 2009
to May 23, 2009.
During the period of his project, he was well behaved. We found him to be very sincere, dedicated and
hardworking. He made good use of the opportunity given to him.
We wish Mr. Saini Rajinder Singh all success in his career.
Religare Insurance Broking Limited
Mr. Pushker Saxena
(Branch Manager)

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ACKNOWLEDGEMENT
Initially, I am greatly indebted to co-guides, Prof. Bhupinder Singh, ICFAI Business School,
Dehradun, Mr. Pushker Saxena, Associate Business Development Manager and Relationship
Manager Mr. Ashok Thapa for taking time to guide me and supervise the project. Prof.
Bhupinder Singh has always being my source of inspiration and motivated me to move ahead on
the right path. My sincere thank to all of them for their contribution, support and help, without
which this project report would have not reached its goal. Their inputs were very valuable for
designing and formulating this report.
I sincerely wish to acknowledge a deep sense of gratitude for valuable guidance and advice of
my company guide Mr. Pushker Saxena, who helped me always whenever needed for the
project. His perpetual inspiration, several patient discussions, constructive criticism and valuable
guidance throughout the internship helped the project work to materialize.
I would like to thank many of anonymous employees of the RIBL, Dehradun, friends, research
respondents and local acquaintances who have always provided words of encouragement and
motivation.
My special thanks to my colleagues Mr. Arpit Agnihotri, Mr. Kartikey Rai and Mr. Rajkumar
Mondal, ICFAI Business School, Dehradun who have supported me, sharing thoughts, helping
and all the moments we improvised in these three months.
Above and all, I am thankful to my parents Mr. Omkar Singh Saini and Mrs. Paramjeet Kaur
Saini, my friend Mr. Nikhilesh Mohod for their valuable suggestions and emotional mentoring
which always led this fire of enthusiasm burning in my heart, which helped me to overcome
different shortcomings and hardships while working on the project.
Lastly, but above all, I thank my institute, ICFAI Business School, Dehradun, for giving me this
wonderful opportunity to learn new things and gain valuable experience which will be helpful in
my role as a future manager.
(SAINI RAJINDER SINGH)

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ABSTRACT
Project titled “The role of Insurance in the financial planning of an individual” envisages
studying the various important aspects of the financial planning done by an individual.
The aim of the project is to know how an individual does his/her financial planning and as to
what role does Insurance plays in it. The report explains the fact of the mistrust within the
individual and the business representatives on the actual payment of the claims.
Life insurance is used to replace in whole or part the economic value of human life for either
family purpose or business purpose, in exchange for premium payments to the insurance
companies.
Life insurance policies provide other uses and benefits as well like,
 Credit enhancement
 Key person indemnification
 Business continuation
 Employee benefit plans
 Tax exemption
 Provide funds for retirement, etc
The project will enable us to identify the pattern of customers financial planning and as to how
does mistrust arises within the customers for the insurance companies. The project envigases as
to how does insurance helps in the personal financial planning.
Religare Insurance broking limited (RIBL), a Religare enterprises limited venture is one of
India’s leading Insurance broking firms, with one of the largest retail networks in the country.
The company holds a composite broker’s license operating in the life, non-life and reinsurance
domains.
RIBL not only provides customized solutions to individual clients but also to some of the leading
corporate houses across the country.
In this Project used Secondary data analysis. This research is descriptive in nature, hence more of
an on the field work has been done. As befitting to every research work there are certain

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limitations to the study which has been also mentioned beforehand so that the reader might
perceive it in those regards.

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CHAPTER-I
INTRODUCTION
INSURANCE
INSURANCE=Collective bearing of risk.
“The insurance mechanism has two fundamental characteristics; shifting or transferring of a risk
of loss or damage, from owners and thereby sharing of losses by all the members of the group”
Thus a contract of insurance is a contract by which one party undertakes to make good the loss of
another, in consideration of a sum of money, on the happening of a specified event. For example,
road accident or death.
Very important elements of a contract are:
 Offer
 Acceptance
 Communication
 Consideration
There are three parties in a life insurance transaction: the insurer, the insured, and the owner of
the policy, although the owner and the insured are often the same person. For example, if John
Smith buys a policy on his own life, he is both the owner and the insured. But if Mary Smith, his
wife, buys a policy on John’s life, she is the owner and he is the insured.
Another important person involved is the beneficiary. The beneficiary is the person or persons
who will receive the policy proceeds upon the death of the insured. The beneficiary is not a party
to the policy, but is designated by the owner, who may change the beneficiary unless the policy
has an irrevocable beneficiary designation. With an irrevocable beneficiary, that beneficiary
must agree to changes in beneficiary, policy assignment, or borrowing of cash value.
The policy, like all insurance policies, is a legal contract specifying the terms and conditions of
the risk assumed. Special provisions apply, including a suicide clause wherein the policy
becomes null if the insured commits suicide within a specified time for the policy date (usually
two years). Any misrepresentation by the owner or insured on the application is also grounds for
nullification.
The face amount of the policy is normally the amount paid when the policy matures, although
policies can provide for greater or lesser amounts. The policy matures when the insured dies or
reaches a specified age. The most common reason to buy a life insurance policy is to protect the
financial interests of the owner of the policy is the event of the insured’s demise. The insurance
proceeds would pay for funeral and other death costs or be invested to provide income replacing

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the deceased’s wages. Other reasons include estate planning and retirement. Because the
insured’s death will be to the financial betterment of the policy owner, the owner, by law, must
have an insurable interest (i.e., a legitimate reason for insuring another person’s life.)
The insurer (i.e., life insurance company) prices the policies with intent to recover claims to be
paid and administrative costs, and to make a profit. Claims to be paid are determined by actuaries
using mortality tables. Actuaries are professionals who use actuarial science which is based in
mathematics (primarily probability and statistics). Mortality tables are statistically based tables
showing average life expectancies. Normally, the only three considerations in a mortality table
are the insured’s age, gender, and whether or not they use tobacco.
The insurance company receives the premiums from the policy owner and invests them, using
the time value of money and compound return principles to create a pool of money from which
claims are paid. Therefore, rates charged for life insurance are sensitive to the insured’s age
because the insurer will have less premium dollars to invest and less time to invest them for older
person.
.

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1.1 NEED OF INSURANCE
Life Insurance Policy is a form of security for the person who insures his life and his family. Life
insurance policies have helped trade and economic activities to flourish in a great manner. It has
generated lots of job opportunities. It is looked upon as a lucrative career option. Life insurance
companies have also entered the international business scenario.
The following reasons substantiate why a life insurance policy should be taken:
A) Early Death
The mortality rate is experiencing a declining trend in many parts of the world. However it is
also important to note that the age at which People die is also ever decreasing. Some reasons
for this include unhealthy living style, stress, pollution, and some natural calamities. This
necessitates people to make adequate measures to yield income for their family and
dependents. This could be a serious concern if the insured happens to be the sole bread
winner. Some individuals see this as an option to plan their retirement.
B) Advancements in Health Care
The mortality rate has declined rapidly even though the fact remains that the number of
people who die at an early age is on the increase. This is mainly due to the advancement in
healthcare and the awareness on medical facilities. This results in an increased spending at an
old age. This increased spending is also due to increase in the costs of living apart from
paying expensive medical bills. Unless they invest in Life insurance or other forms of
insurance like health insurance it becomes next only to impossible to meet the financial
demands especially during the old days.
C) Increase in the Cost of Living and Spending Power
The purchasing power of the consumers and the standard of living has experienced a steep rise
over the years. The increase in National Income and gross domestic product are partly
responsible for this. Individuals incur many unexpected expenses due to the growing needs.
Insurance comes in handy to meet such an unexpected expense. It also makes sure that an
individual is able to meticulously plan his finances.
“INSURANCE OPTION IS MORE OR LESS AN INTEREST FREE LOAN. AN INDIVIDUAL CAN
CANCEL HIS INSURANCE POLICY AND OBTAIN A HUGE AMOUNT IF IT IS IMPERATIVE IN
MEETING AN URGENT EXPENSES AND HE DOES NOT HAVE ALTERNATIVE SOURCES FOR
FINANCE. LIFE INSURANCE COMPANIES THEREFORE DO THE NEEDFUL TO CONSUMERS”.
D) TAX CONCESSIONS
Income tax concessions are available to individuals and corporate houses who adopt
insurance policies. Many have been making investments in Insurance with the sole aim of
enjoying tax benefits. This naturally increases spending power. Since the investments
increases the economic activities in the country automatically increases.
E) Best Option for Salaried Youth

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Insurance is by and large regarded as one of the savings scheme. Students who earn while
studying and those who take up full time employment after their studies see insurance as a
profitable scheme to regulate their savings. Apart from tax concessions life insurance entails
individuals tof enjoy more benefits as they have special and attractive schemes for this segment.

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1.2 BRIEF INTRODUCTION OF INSURANCE
Life insurance is a contract between the insurer and insured. The person who insures his life is
called the insured. The company which insures his life is called insurer. The insured is required
to pay some amount of money in regular intervals. These payments are referred as premiums.
According to the principle of life insurance a sum of assured money is paid to the insured incase
the policy holder successfully makes all the payments and the policy comes to an end. On the
contrary if the insured dies of an unexpected event the sum assured is paid to his dependents
irrespective of full payment of the policy amount. The insurance company pays the money on
death or after the policy period whichever occurs first.
There are three important factors as far as life insurance is concerned. They are as follows:
1. Premium
2. Nature of Policy
3. Coverage
A person's need and income helps him to decide the amount of insurance premium. Once the
person decides the premium he can select the policy that best suits him. The insured should also
think about the benefits that he will receive before deciding to go for a particular policy. Life
insurance covers the risks of loss due to the death of a person.

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1.3 FINANCIAL PLANNING
Financial planning is, “The process of wisely managing your finances so that you can achieve
your dreams and goals — while at the same time helping you negotiate the financial barriers that
inevitably arise in every stage of life”.
Managing your personal finances is ultimately the responsibility of an individual. However, you
don’t have to do it alone.
A qualified financial planner, such as a CERTIFIED FINANCIAL PLANNER (CFP)
professional, can help you make decisions that make the most of your financial resources.
Financial planning can help you:
 Set realistic financial and personal goals
 Assess your current financial health by examining your assets, liabilities, income,
insurance, taxes, investments and estate plan
 Develop a realistic, comprehensive plan to meet your financial goals by addressing
financial weaknesses and building on financial strengths
 Put your plan into action and monitor its progress
 Stay on track to meet changing goals, changing personal circumstances, changing stages
of your life, changing products, markets, and tax laws

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1.4 LIFE INSURANCE AS A PART OF FINANCIAL PLANNING
With permanent life policies, you have two values. One is the policy’s face amount, i.e. the
guaranteed rupee amount paid immediately upon death. The other is a cash value. Cash value is
the amount available if you surrender a policy before its maturity or your death. The cash value
is affected by your insurance company’s financial reserves and/or by investment earnings.
Viewed as an investment vehicle, a traditional whole life policy can be an attractive conservative
investment. (If you are looking for dramatic returns on your investment, life insurance is not the
proper vehicle.)
Whole life insurance is much more expensive than term insurance. Whole life insurance provides
a set rupee amount of coverage that can never be cancelled, in exchange for fixed, uniform
payments. Payments remain the same throughout your life and the premiums seem high in the
early years compared to your statistical risk of death. Reserves are therefore accruing. The
insurance company invests these reserves into conservative investment vehicles so that the entire
policy is worth the face value plus the investment interest at the time of death.
Permanent insurance as an investment vehicle is designed to accrue over a long period.
Therefore, if you surrender your policy in the early years, there may be little or no cash value.
In the whole life policy, the insurance company chooses where the investment portion of the
premium dollar goes. If you want to make that decision, there is the variable life policy. The
insured person selects from a number of options, which are potentially higher returning
investments than an insurance company might make on your behalf. However, the options
include mutual funds and other equities that comprise the stock market, which are more risky
than the kinds of investments insurance companies would make. The choice is yours.
There is also universal life insurance. It offers many of the benefits of traditional whole life but it
is more flexible. Premiums can vary from year to year (unlike whole, which are fixed). You can
withdraw your cash value or borrow against it at any time. Unlike in whole life where you may
also earn annual dividends, in universal life you earn interest at a fluctuating annual rate.
Even in you choose permanent life insurance, remember that life insurance should not be
purchased mainly for investment purposes because of its unique coverage feature.

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1.5 OBJECTIVES OF STUDY
 Collect data related to the customers financial planning.
 The role of insurance in financial structure of an individual
 From the entire savings, where does an individual invests
 Is an individual satisfied by his pattern of investment
 Factors considered while selecting a life insurance companies
1.6 NEED OF THE STUDY
Insurance whether life or non life provides reasonable degree of security and assurance that
they will be protected in the event of a calamity or unusual situation.
In today’s world where there is no security of any sort to life and surprises come up with
good or bad messages. If there is a good situation everyone is happy but what if any unsaid
incident occurs.
It’s said: “Hope for the best and be prepared for the worst” and this preparation for unusual,
unpredictable incidents which hampers financial safety can be done with the help of
INSURANCE.
New competitors enter this market with a variety of policies and schemes creating saturation in
the market. Hence, in this context a need for the study is there which can help to understand as to
where do people invest their saving, the satisfaction level and the general awareness of different
companies in the minds of the customers.

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1.7 SCOPE OF THE STUDY
The present study is conducted in Dehradun. In Dehradun, there are various insurance
companies competing with each other. The number of commission based agents are also
there in masses i.e. at the most one insurance agent in each family.
The main objective of the study is to understand as to where does any person invest their
savings.
1.8 STATEMENT OF PROBLEM
In our country growth of insurance sector and especially life insurance sector is in its
saturation stage. There are lots of insurance companies in the market which has given a lot
many choices to the customers. And this saturation in the market with load’s of insurance
companies upcoming in Indian Market has increased barrier of mistrust in the masses.
Nowadays, customers are more dynamic. Their preferences taste and needs can change in
every scenario’s of the market as RECESSSION.
The companies are not able to understand, the financial planning in the masses of a particular
individual due to many factors such as;
 Poor understanding of insurance culture
 How can insurance help in the financial planning?
 How does insurance help in tax planning?
 How do dependable members of the family can get help after any miss happening
with the insured?
 Satisfaction level of the customers related to Insurance

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CHAPTER- II
REVIEW OF LITERATURE
A brief literature would be of immense help to the researcher in gaining insight into selected
problem. The researcher would gain good background knowledge of the problem by reviewing
certain studies. A reference to these entire studies will be related in the contest of the shaping the
present study.
Booming Insurance Market in India (2008-2011)
Description: With a huge population base and large untapped market, insurance industry is a big
opportunity area in India for national as well as foreign investors. India is the fifth largest life
insurance market in the emerging insurance economies globally and is growing at 32-34%
annually. This impressive growth in the market has been driven by liberalization, with new
players significantly enhancing product awareness and promoting consumer education and
information. The strong growth potential of the country has also made international players to
look at the Indian insurance market.
Moreover, saturation of insurance markets in many developed economies has made the Indian
market more attractive for international insurance players, according to "Booming Insurance
Market in India (2008-2011)”.
This research report will help the client to analyze the leading-edge opportunities critical to the
success of insurance industry in India. Based on this analysis, the report gives a future forecast of
the market that is intended as a rough guide to the direction in which the market is likely to
move.
Research Findings
-Total life insurance premium in India is projected to grow Rs 1,230,000 Crore by 2010-11.
-Total non-life insurance premium is expected to increase at a CAGR of 25% for the period
spanning from 2008-09 to 2010-11.
-With the entry of several low-cost airlines, along with fleet expansion by existing ones and
increasing corporate aircraft ownership, the Indian aviation insurance market is all set to boom in
a big way in coming years.
-Home insurance segment is set to achieve a 100% growth as financial institutions have made
home insurance obligatory for housing loan approvals.
-Health insurance is poised to become the second largest business for non-life insurers after
motor insurance in next three years.
-A booming life insurance market has propelled the Indian life insurance agents into the ‘top 10

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country list’ in terms of membership to the Million Dollar Round Table (MDRT) — an exclusive
club for the highest performing life insurance agents.
Key Players
The major players discussed in the report include LIC, Bajaj Allianz and HDFC Standard under
life insurance segments, and New India, United India and ICICI Lombard under non-life
insurance Segments.
INSURANCE STRENGTHENING AND ECONOMIC GROWTH IN INDIA
India experienced a liberalization of its insurance market in 2000, and received substantial
technical assistance from USAID and other agencies in the following years. From 2000 to 2004,
the Indian insurance industry grew at a rate of 15% per year, far surpassing the average growth
rate for the world’s insurance markets during the same time period. During this time, India also
saw the percentage of life insurance in household’s total financial savings increase from 12.9 %
to 14.5% on average, which was apparently linked to a simultaneous increase in total household
savings in financial assets. In addition, India’s Gross Domestic Product grew 6.7% on average
during this period. These results imply that India’s insurance sector liberalization and related
technical assistance helped to increase household long-term savings in financial assets, which
were then used to support investment, a key factor in spurring economic growth.

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CHAPTER III
RESEARCH METHODOLGY
Search of knowledge. A careful investigation or enquiry. A systematic effort to gain new
knowledge. Those are called a “Research”. Research is a movement of knowledge from known
to unknown from the available place to the required place.
According to Clifford words, “Defining and re-defining problems formulating the hypothesis or
jessed solutions. Collecting, organizing and evaluating data. Making detections and reaching
conclusions to determine whether fit the formulating the hypothesis”
The Purpose of research to find out solutions to the problem, which has not been discovered by
anybody.
3.1. RESEARCH METHODS:
Those methods which are used by the researcher during the course of studying are research
problem are termed on research methods.
3.2. RESEARCH METHODOLOGY:
The research methodology, not only the research methods are but also consider the logic behind
the methods. They are in the contest of our research studied. And explain why we are using a
particular method or techniques and we are not using others.
Descriptive research design:
It includes surveys and facts finding enquiries of different kinds. The main purpose of
descriptive research is description of state of affairs on it existing at present. The main
characteristics of this method are that the researcher has no control over the variables. He can
report what has happen and what is happening.
Nature of data:
In this study primary data and secondary data are used.
Collection of data:
The data were collected from the respondents through the distribution of questionnaire and
through the internet. The notes prepared during the summer internship program by observation
are also included in the report.

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Area of the study:
This study covers Dehradun city only.
Sample size:
The sample size of this study is 74
Tools for analysis:
Along with the usual statistical tools such as tables, percentages, pie charts, bar charts have also
been used for analyzing the data and arriving at the conclusion.
3.3 LIMITATION OF THE STUDY
Though the detailed investigation is made in the present study, it has got the following
limitations
1. This study is restricted only to the Dehradun city. So, the results may not be applicable to
other areas.
2. As per the population of the study is huge, the research has been conducted by only
taking _74___ sample respondents.
3. Direct customer relationship is a very critical issue thus creating customer database is
very difficult.
4. People are unaware of the actual market conditions due to ignorance and risk awareness
which was a problem while conducting this survey.
5. Resistance towards insurance hampered the study as more and more people were least
interested to talk about Insurance.

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CHAPTER IV
INTRODUCTION OF INDUSTRY
4.1 EVOLUTION OF INSURANCE
Life is fraught with tensions and apprehensions regarding the future and what it holds for the
individual. Despite all the planning and preparation one might take, no one can accurately
guarantee or predict how or when death might result and the circumstances that might ensue in its
aftermath.
Life and existence are constantly fraught with danger and uncertainty. But then, it is essential that
one plan for the future. The chances for a fatality or an injury to occur to the average individual
may not be particularly high but then no one can really afford to completely disregard his or her
future and what it holds.
Insurance in modern form originated in the Mediterranean during the 13th century. (The earliest
references to insurance- found in Babylonia, the Greeks and the Romans).
Marine insurance is the oldest form of insurance followed by life insurance and fire insurance.
The history of life insurance in India dates back to 1818 when it was conceived as a means to
provide for English Widows.
A higher premium was charged for Indian lives than the non-Indian lives (considering to be
more riskier for coverage).
India’s insurance industry, private and public, has its roots in the 19th century. The British
government set up state-run social protection schemes for its colonial officials, many of which
evolved into today’s schemes. The first private insurance company was the Oriental Life
Insurance Company, which started in Calcutta in 1818. Under British rule, many insurers
operated in India. In 1938, the British passed the Insurance Act, comprehensive insurance
legislation, which remains the cornerstone of the insurance industry today.
Regulated insurers are divided into two categories: life and general insurance. Life insurance
includes products like endowments policies and retirement annuities. General insurance covers
all other types of insurance. In 1956, the Indian government nationalized the life insurance
industry. The reasons given at the time were high levels of fraud in the industry and a desire to
spread insurance more widely, as Nehru noted at time in parliament, “we require life insurance to
spread rapidly all over the country and to bring a measure of security to our people”. The
government combined 154 insurance providers and formed the Life Insurance Corporation (LIC)
of India.

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Insurance Industry Basics
Issues Observations
Name of insurance regulatory body Insurance Regulatory & Development
Authority (IRDA)
Key responsibilities of the regulatory
authority
Regulate, promote and ensure orderly growth
of the insurance
and re-insurance industries
Minimum capital requirements for
insurance license
Rs 100 Crores ( 1 Crore = 1x107 ) ($22.22m)
NB: No waivers are granted to microinsurers
Other key requirements for an
insurance license
The IRDA distinguishes between life insurance
that includes
endowment and annuities, and insurance for all
other risks
that fall under a general insurance category. In
India, an
insurer must form separate entities and cannot
sell life
insurance and general insurance together on the
same policy.
Foreign companies can only enter the industry
in
collaboration with the domestic companies
Other key requirements for
regulatory compliance
Investment in the rural and social sectors (see
Section 1.2)
Minimum capital requirement for a
reinsurer
Rs 200 Crores (1 Crore = 1x107) ($44.44m)
Number of regulated private insurers
/ value of annual premiums
Life Insurance 13 / Rs 3 120.33 crores
($693.41 m)
Non-Life 8 / Rs 2257.83 crores ($501.74 m)
Number of regulated public insurers /
value of total annual premiums
Life Insurance 1 / Rs 63 167.60 crores ($14
037.24m)
Non-Life 6 / Rs 15099.35 crores ($3355.41m)

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4.2 HISTORY OF INSURANCE IN INDIA
In India, since 1991, liberalization of economic reforms was started. Consequently, many sectors
have been privatized. Life insurance is also privatized since 1999.There are 15 life insurance
companies that got license from IRDA to do insurance business.
Ever since privatization of insurance industry, the industry is booming. There are 16 new
companies slated to enter the Indian Insurance sector by the year 2010.With big companies like
Bharti Axa, HDFC, Reliance, Bajaj Allianz already operating in the Indian insurance market can
sustain whatever crisis that may come along their way.
Even if the stock market slumps, foreign exchange or foreign direct investment inflows decrease
or if the Indian economy itself slumps, these companies would be able to sustain themselves and
see through the bad times simply because the kind of assets they have is worth billions of dollars.
One more reason for the success of private insurance companies is the kind of products they
offer. Gone are those days when a person has to go to banks when a person has to go to banks for
savings, share markets for investment and insurance companies to get life coverage. Insurance
today has become like a one stop shop, where a person can shop for any item under one roof.
Unit Linked Insurance Plan’s (ULIP) are a runaway success among the general public because
they are customized to an individual customers requirement. They provide investment
opportunity under insurance plans where you can as well get life coverage.
Before 1956, the insurance sector was not regulated by the government of India and there existed
around 275 insurance companies. But many of these companies have either gone bankrupt or
where is no state to repay their customers.
Their private companies did not use the funds collected for investment and they totally ignored
the rural India. This made government of India to take action against these companies. The
government regulated the insurance sector and thus came into existence Life Insurance
Corporation of India(L.I.C).They were the only company operating in life insurance in India for
the next 43 years, till 1999.
In 1999, the government passed a resolution to privatize a resolution to privatize the insurance
sector in India and it was a good move as many foreign insurance companies entered India with a
tie up with an Indian partner. The foreign partner can have 26% stake in the company and the
Indian partner will have a 74% stake in the company as per IRDA guidelines.
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. Some of the important
milestones in the life insurance business in India are given in the table below.

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Milestone’s in the life insurance business in India
Year Milestones in the life insurance business in India
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 nationalised. LIC formed by an Act of Parliament,
viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the
Government of India.
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 given in the table below.

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Milestone’s in the general insurance business in India
Year Milestones in the general insurance business in India
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 (Nationalisation) Act, 1972 nationalised 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.

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4.3 RECRUITMENT PRACTICES AN OVERVIEW
Finding the right person for the job is never easy regardless of location. But with economic
growth outpacing improvements in education and training, finding qualified candidates to fill a
position in India can be more difficult than in many other places, especially in Insurance sector.
Because of the historical insularity of many insurance companies in India, it may not be easy to
find candidates with precise skill sets needed.
Because of this developmental reality, finding the best and the brightest might require a company
to adopt a multifaceted strategy and possibly even search overseas in some cases in order to
satisfy its staffing needs.
4.4 SOURCES OF RECRUITMENT
There are two sources of recruitment,(a) Internal (b) external. The organization can look to
sources Internal, inside the company and if necessary, to sources external to the company. Most
organizations have to use both internal and external sources to generate a sufficient number of
applicants.
Whenever there is an inadequate supply of labour and skills inside the organization, it must
effectively get the message across to external candidates. It is here that the organization’s choice
of a particular method of recruitment can make all the difference in the success of the recruiting
efforts.
4.5 ADVANTAGES AND DISADVANTAGES OF INSURANCE
4.5.1 Advantages:
A) Financial Security
Life Insurance is a powerful means to provide financial security. When the breadwinner of a
family dies due to some unexpected events or for reasons like prolonged illness the life insurance
policy is a boon to the family. They can make use of the funds paid by the insurance company to
meet their needs without which they would have landed in a financial lurch.
Life insurance is another means for saving. Individuals and families who take up a life insurance
policy have to pay premiums periodically. Therefore they will naturally be forced to allot
sufficient funds for this purpose. This practice encourages thrift and also helps them to plan for
some productive schemes in a similar manner.
Life Insurance Policies also help people to take care of their families in case of retirements. This
can come as a great relief especially if the person who retires does not have alternative sources of
income to take care of his family.
Life insurance polices are indicators of financial credibility. Therefore this factor can help
individuals and institutions to borrow money and raise adequate finance as and when they are

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needed. Similarly it reduces the employer's burden of paying compensation to the deceased
family as many companies are following group insurance policies.
B) Diverts States Resources for Other Purpose
One important responsibility of the governments in any country is to take care of the old and
dependent population. Many developed countries like U.S. and Canada collect a large amount of
funds from the employed citizens to meet these needs. The state also allocates few funds for this
purpose. With the increasing awareness of insurance the governments can be assured of spending
less for the old. Though this will not absolve their responsibility it will help to reduce the
quantum of their investment. As a result they can concentrate on burning issues and problems in
the society.
C) Facilitates Economic Movements
Life insurance companies collect premiums from multiple investors. They are thus able to
mobilize large funds. This money is used to finance trade and development activities. Ultimately
production of goods and services will flourish and the economy of the nation will be improved.
D) Helps to Avail Tax Exemptions
The policy holders are entitled to claim income tax exemptions for paying the premiums. The
amount and the extent to which they are allowed depends on other factors like the persons
income and if the insurer is a private player or run by the state. This provision will indirectly
tempt people to invest in insurance and attain a mutual benefit of tax exemption and providing
security as well.

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4.5.2 Disadvantages:
A) Incompetent Personnel and facilities in the industry
Not all insurance companies are equipped enough to provide the consumers with life insurance
policies they actually require. Many Insurance corporations have emerged after realizing the vast
market potential and the untapped new segment. These companies are by and large interested in
making huge profits rather than helping the general public with insurance. In the process they
hire unskilled people and provide poor infrastructural facilities.
The insurance companies do not make use of modern methods to find the value of loss of goods
insured .This alarming trend seen even in some developed countries is poised to stunt the growth
of insurance industry. However with the advent of globalization multi national corporations have
been constantly acquiring and merging with these companies. They are therefore able to provide
the necessary impetus and remove this setback though not to the full extent.
B) Lack of Consumer Awareness
The ultimate consumer is still not aware of life insurance policies. The level of his understanding
is not sufficient. This is partly because of the reason said above. Some of the domestic
companies don't have the technical expertise to implement the latest practices.
Moreover the services of insurance agents could sometimes do more bad than good. Some of
them try to convince their clients to invest more or to choose certain policies which are not much
beneficial to the clients. A person will find himself in trouble if he invests more than what is
actually required. Since some agents indulge in unethical practices, this has led to wrong
mindsets among general public about insurers.
The number of advantages outnumbers the disadvantages. Life insurance is a savings option that
helps the individuals, general public, business houses and the nation at large.It is therefore a wise
move to choose a life insurance policy. The consumer has to gather life insurance information
before choosing a particular policy

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4.6 FUTURE OF INSURANCE SECTOR
Insurance undergone rapid and massive changes in all aspects of their business:
product and services, sectoral structure, market segmentation, competitive
environment. It is believed that the information sharing has not taken its expected shape in the
insurance industry for the purposes of practices, research and education. However, data is one of
the most needed ingredients in the insurance business development as well as for research and
consultancy. There have been regular efforts by IRDA for collection and sharing of the data and
other information of public interest.
Manpower India today released the Manpower Employment Outlook Survey for the first quarter
of 2006 revealing sustained positive hiring intentions of employers in India. India continues to
lead all 23 countries surveyed this quarter, with a positive overall Net Employment Outlook of
+27%. Even though this figure represents a decrease of 13 percentage points from the fourth
quarter of 2005, the employment outlook remains extremely healthy. For the first time since
the Survey was launched in India, the Finance, Insurance and Retail industry
sector emerged as the most optimistic sector for a quarter with a Net Employment
Outlook of +32%, surpassing the Services sector.
Privatization of insurance sector has allowed insurance companies to work in the market by
depositing 100 crore rupees in the reserve of government. This has encouraged many overseas
insurance companies, having a required amount in their reserve, to open their branch in our
country. Introduction of the sector has changed the employment pattern, but people must know
how to make profit from it. To be in the global market and have advantage of it, capital and skill
as per the demand and knowledge of market is the requirement.
Indian insurance sector is likely to register unprecedented growth of 200% and attain
a size of Rs. 2000 billion by 2009-10
A private sector insurance business will achieve a growth rate of 140% as a result of aggressive
marketing technique being adopted by them against 35-40% growth rate of state owned
insurance companies.
In rural markets, the share of private insurance players would increase substantially as these have
been able to generate a faith among their rural consumers.

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4.7 APPLICATION OF INFORMATION TECHNOLOGY IN INSURANCE SECTOR
There is a evolutionary change in the technology that has revolutionized the entire insurance
sector. Insurance industry is a data-rich industry, and thus, there is a need to use the data for
trend analysis and personalization.
With increased competition among insurers, service has become a key issue. Moreover,
customers are getting increasingly sophisticated and tech-savvy. People today don’t want to
accept the current value propositions, they want personalized interactions and they look for more
and more features and add ones and better service
The insurance companies today must meet the need of the hour for more and more personalized
approach for handling the customer. Today managing the customer intelligently is very critical
for the insurer especially in the very competitive environment. Companies need to apply
different set of rules and treatment strategies to different customer segments. However, to
personalize interactions, insurers are required to capture customer information in an integrated
system.
With the explosion of Website and greater access to direct product or policy information, there is
a need to developing better techniques to give customers a truly personalized experience.
Personalization helps organizations to reach their customers with more impact and to generate
new revenue through cross selling and up selling activities. To ensure that the customers are
receiving personalized information, many organizations are incorporating knowledge database-
repositories of content that typically include a search engine and lets the customers locate the all
document and information related to their queries of request for services. Customers can hereby
use the knowledge database to mange their products or the company information and invoices,
claim records, and histories of the service inquiry. These products also may be able to learn from
the customer’s previous knowledge database and to use their information when determining the
relevance to the customers search request.

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CHAPTER V
INSURANCE COMPANIES IN INDIA
The introduction of private players in the industry has added value to the industry. The initiatives
taken by the private players are very competitive and have given immense competition to the on
time monopoly of the market LIC. Since the advent of the private players in the market the
industry has seen new and innovative steps taken by the players in this sector. The new players
have improved the service quality of the insurance. As a result LIC down the years have seen the
declining phase in its career. The market share was distributed among the private players.
Though LIC still holds the 75% of the insurance sector but the upcoming natures of these private
players are enough to give more competition to LIC in the near future. LIC market share has
decreased from 95% (2002-03) to 81 %( 2004-05).The following companies has the rest of the
market share of the insurance industry.
Table below shows the mane of the player in the market.
NAME OF THE INSURANCE COMPANY AND THE SHARE HOLDING PATTEN
Name of the Insurance Company Shareholding
Agricultural Insurance Co Bank and Public Ins Co
Bajaj Allianz General Insurance Co. Ltd. Privately Held
Cholamandalam MS General Insurance Co. Ltd. Privately Held
Export Credit Guarantee Company Public Sector
HDFC Chubb General Insurance Co. Ltd. Privately Held
ICICI Lombard General Insurance Co. Ltd. Privately Held
IFFCO-Tokio General Insurance Co. Ltd. Privately Held
National Insurance Co. Ltd. Public Sector
New India Assurance Co. Ltd. Public Sector

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Oriental Insurance Co. Ltd. Public Sector
Reliance General Insurance Co. Ltd. Privately Held
Royal Sundaram Alliance General Insurance Co. Ltd. Privately Held
Tata AIG General Insurance Co. Ltd. Privately Held
United India Insurance Co. Ltd. Public Sector
There are a total of 13 life insurance companies operating in India, of which one is a Public Sector
Undertaking and the balance 12 are Private Sector Enterprises.
List of Companies are indicated below:-
NAME OF THE LIFE INSURANCE COMPANY AND THE SHARE HOLDING PATTEN
Name of the company Nature of Holding
Allianz Bajaj Life Insurance Co Private
Aviva Life Insurance Private
Birla Sun Life Insurance Co Private
HDFC Standard Life Insurance Co Private
ICICI Prudential Life Insurance Co Private
ING Vysya Life Insurance Co. Private

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Life Insurance Corporation of India Public
Max New York Life Insurance Co. Private
MetLife Insurance Co. Private
Om Kotak Mahindra Life Insurance Private
Reliance insurance Private
SBI Life Insurance Co Private
TATA- AIG Life Insurance Company Private

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NAME OF THE PLAYER MARKET SHARE (%)
Name of the Player Market share (%)
LIFE INSURANCE CORPORATION OF INDIA 82.3
ICICI PRUDENTIAL 5.63
BIRLA SUN LIFE 2.56
BAJAJ ALLIANZ 2.03
SBI LIFE INSURANCE 1.80
HDFC STANDARD 1.36
TATA AIG 1.29
MAX NEW YARK 0.90
AVIVA 0.79
OM KOTAK MAHINDRA 0.51
ING VYSYA 0.37
MET LIFE 0.21

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5.1 RELIGARE INSURANCE BROKING LIMITED

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Religare Insurance Broking Limited (RIBL), a Religare enterprises ltd venture is one of India’s
leading insurance broking firms with one of the largest retail networks in the country. The
company holds a composite broker’s license operating in the life, non-life and reinsurance
domains.
As an Insurance Broker, Religare offers a single window for everything you need to
insure. The domain knowledge and the multi brand business model, ensures the customers with a
tailor-made insurance solutions. The design of the insurance portfolio is diversified planned from
over 30 companies. All under one roof
Advantages:
 Freedom of choice to the customer
 Represents clients to insurance companies
 Gets the best deals to the clients – Cost, Coverage & Service
 Technical and functional expertise
 Proactive assistance and claims management
 Services the client at zero cost
Here is the different diversifications of RIBL:

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VISION AND MISSION
VISION
“To be India’s most trusted insurance partner”
MISSION
“To create and institutionalize an ethical, process driven, client centric approach backed
by the right expertise, sharp insights and innovation benchmarked against global best
practices”

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RELIGARE CORPORATE STRUCTURE

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AEGON RELIGARE
AEGON, one of the world’s largest life insurance and pension groups, Religare, one of India’s
leading integrated financial services groups and Bennett, Coleman & company, India’s largest
media house, have come together to launch AEGON Religare Life Insurance Company
Limited. This venture is dedicated to build a firm future, both for customers and employees and
will continue to balance a local approach with the power of an expanding global operation.
We launched our pan-India multi-channel operations in July, 2008 with over 30 branches spread
across India. Our business philosophy is to help people plan their life better. We provide high
quality advice to our customers and offer superior customer service.
In an industry first, AEGON Religare Life Insurance offers policy servicing on the phone via
Interactive Voice Response System (IVR) by issuing the customer a T-Pin for authentication. It
is also the first company to include the customer’s medical report in the policy kit.
AEGON’s businesses serve over 40 million customers in over 20 markets throughout the
Americas, Europe and Asia, with major operations in the United States, the Netherlands and the
United Kingdom. With headquarters in The Hague, the Netherlands, AEGON companies employ
almost 32,000 people worldwide. The company’s common shares are listed on four stock
exchanges: Amsterdam, London, New York and Tokyo. It manages EUR 351 billion in revenue
generating investments. AEGON has more than 160 years of experience with its roots going
back to 1844. It holds 26% equity in our company.

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5.2 BIRLA SUN LIFE INSURANCE
Kumarmangalam Birla, chairman, Aditya Birla group, on Monday, announced the Birla Sun Life
Insurance Company- a joint venture between Aditya Birla Group and Sun Life Financial
Services of USA.
The R2 formalities have been completed and the company expects to receive R3 clearnace from
IRDA shortly.
Briefing media persons, Birla said, "The insurance sector, which is a knowledge based industry
is to be one of our core business. Our vision is to be among the top five insurance companies in
India and in this regard, we have aligned with one of the best companies-the Sun Life financial
group.
The partnership is based on values, mutual respect, integrity and customer focuses. Sun life
financial is indeed delighted to be back in India in the insurance sector after almost 40 years."
"Our group holding is 74 per cent, with Indian Rayon and Birla Global Finance Ltd having a
stake of 69 per cent and 5 per cent respectively, while Sun Life financial holds 26 percent. The
current capitalization of this venture stands at Rs 120 crore."
He informed the gathering that the current funding for the insurance business "in no way affects
Indian Rayon's existing cap". "Considering the immense growth potential of the life insurance
business, this venture will definitely create value for our three lakh shareholders. Our group's
extensive presence in India as well as our network of employees, shareholders and distributors is
a great advantage, which our insurance business will leverage. We have a receptive population of
over a million stakeholders," Birla added.
He also said that the new team for the insurance company was declared and that Don Steward,
chairman & CEO of Sun Life financial services, takes over as the chairman of the Birla Sun Life
insurance board of directors. Kumarmangalam Birla continues as a director on the board. The
total 12 directors have been nominated consisting of six directors each from Aditya Birla group
and Birla Sun Life insurance company.
The company is also in the process of enlisting independent directors on its board. Peter Akers
from Sun Life financial services has been named as the CFO and the appointed actuary, Vijay
Singh, as a new director of Birla Sun Life insurance, the company said.
Meanwhile, Don Steward also stated that in the first phase Birla Sun Life insurance would be
concentrating on setting up fully networked branches in Bombay on Tuesday and in Delhi on
January 31. About 1000 branches are expected to be set up across the country by December-end
2001.
By mid-February, the first batch of 150 insurance advisors will be in place and ready to enter the
market.

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Birla Sun life insurance plans to harness the power of the internet to further its business. Over the
next 12 months, dedicated call centers to service customers across the nation and a customer
website will enable a 24 x 7 contract. Its multi-channel distribution set up comprises of insurance
advisors for life and an expert marketing team for group products.
An area of focus for Birla Sun life insurance is the rural segment. The company will leverage the
network of the Aditya Birla center for community initiative and rural development set up in rural
areas, Steward added. He further stated that the Sun Life financial group partner in the joint
venture has a long history dating back to 1871.
It has evolved from a single mutual life insurance company into one of the most highly rated
insurance and wealth management institutions in the world. The Sun Life financial services'
primary insurance business enjoys excellent ratings with the world's top rating agencies like
Standard and Poor, Fitch and AM Best amongst others.
Sun Life financial services have a presence in USA, Hongkong, Philippines, Japan, Indonesia
and Bermuda.
Meanwhile, a company official also said that with Aditya Birla group's extensive knowledge of
the Indian market, its existing presence in a wider range of financial services and Sun Life
financials global expertise in areas of protection and wealth management, the Indian life
insurance seekers will be provided with excellent services and flexible product options.

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5.3 LIFE INSURANCE CORPORATION
Life Insurance Corporation of India (LIC) was formed in September, 1956 by an Act of
Parliament, viz., Life Insurance Corporation Act, 1956, with capital contribution from the
Government of India. The then Finance Minister, Shri C.D. Deshmukh, while piloting the bill,
outlined the objectives of LIC thus: to conduct the business with the utmost economy, in a spirit
of trusteeship; to charge premium no higher than warranted by strict actuarial considerations; to
invest the funds for obtaining maximum yield for the policy holders consistent with safety of the
capital; to render prompt and efficient service to policy holders, thereby making insurance
widely popular.
Since nationalisation, LIC has built up a vast network of 2,048 branches, 100 divisions and 7
zonal offices spread over the country. The Life Insurance Corporation of India also transacts
business abroad and has offices in Fiji, Mauritius and United Kingdom. LIC is associated with
joint ventures abroad in the field of insurance, namely, Ken-India Assurance Company Limited,
Nairobi; United Oriental Assurance Company Limited, Kuala Lumpur and Life Insurance
Corporation (International) E.C. Bahrain. The Corporation has registered a joint venture
company in 26th December, 2000 in Kathmandu, Nepal by the name of Life Insurance
Corporation (Nepal) Limited in collaboration with Vishal Group Limited, a local industrial
Group. An off-shore company L.I.C. (Mauritius) Off-shore Limited has also been set up in 2001
to tap the African insurance market.

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CHAPTER VI
ANALYSIS AND INTERPRETATION

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INTRODUCTION
This chapter is allocated for analysis and interpretation of data. The analysis of role of Insurance
is done by percentage analysis and various other excel tools have also been used.
Table no. 1
Income group of people in Dehradun
What is the income group of people in Dehradun?
Inference:
According to the research conducted, the percentage of the income slab for people with 1-2.5
lacs is 41%.
People with income slab of above 5 lacs are 23%.
Comparatively people having income slab of 2.5-5 lacs are 36%.
According to the statistical data people here in Dehradun are known to various financial planning
instruments.
41%
36%
23%
INCOME SLAB
1-2.5 LACS 2.5-5 LACS ABOVE 5 LACS

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Table no. 2
Awareness of investment/saving instrument
Where do you invest your savings?
Inference:
The total number of investment in insurance by the sample study is the highest. On the other
hand investment in PPF, Mutual Funds and other saving instrument is comparatively lowest
wherein people are also interested investing with fixed deposit.
Thus, people are interested in buying insurance as a part of their of financial planning.
0
10
20
30
40
50
60
Awareness of invest/saving
instrument
Awareness of
invest/saving instrument

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Table no. 3
Age group of respondents
What is the general age group of people in Dehradun?
Inference:
Total number of respondents of age group of 20-30 years is highest in comparison of other age
group people who are interested in insurance or investment options.
0
5
10
15
20
25
30
35
40
45
20-30
YEARS
30-40
YEARS
40-50
YEARS
ABOVE 50
YEARS
Total respondents
Total respondents

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Table no. 4
Profession of respondents
What is the profession of the different respondents?
Inference:
Research conducted in the market revealed the fact that maximum number of respondents is self
employed which are 41% of the entire sample size.
Respondent’s who are employed in private sector are 35%.
Government employed person are 19%.
People who are providing personal finance business are only 5 %.
35%
19%
41%
5%
PROFESSION OF RESPONDENTS
PRIVATE
GOVT EMPLOYEE
SELF EMPLOYED
FINANCE

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Table no. 5
Rating according to the services provided by the different insurance companies
How different companies are rated 1st
according to the services provided by the different
companies?
Inference:
In the above diagram, most preferred company with 1st
rank is LIC with 61%. Whereas the
lowest preferred company is Aegon Religare with 1% of general awareness in the masses.
AEGON
RELIGARE
5% Birla sun life
insurance
18%
ICICI
4%
Tata
AIG
3%
Kotak
Mahindra
3%
Aviva life
insurance '
1%
New york
Max life
insurance
3%
HDFC
5%
LIC
58%
Rank

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Table no. 6
Gender wise classification
Inference:
Male respondents in the research conducted are 74%.
Female respondents were 26% from the entire sample respondents.
74%
26%
Total respondents
MALE
FEMALE

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Table no. 7
Educational qualification of respondents
What is the educational qualification of different respondents?
Inference:
Graduates in Dehradun are much more which is 45%.
Post graduates are 41%.
Whereas, respondents with senior secondary education are 9%.
Total percentage of PHD are 5%.
45%
41%
9%
5%
Total no.of Educational Qualification
of Respondents
Graduate Post Graduate Seniour Secondary PHD

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CONCLUSION AND FINDINGS

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The depth and efficiency of a country’s financial sector largely determine how well its economy
is allocating resources for the good of its country.
Private markets are expected to respond to any demand for Insurance that is economically
feasible and from the research conducted it is possible to say that Insurance companies are in the
growth stage (table no: 2 , pg no: 39 )
According to the income level of the respondents, it is easier to say that more individuals have
the disposable income to take advantage of risk management and savings services provided by
the insurance companies.
Findings:
 People with an income group of 1-2.5 lakh’s are much interested in purchasing Insurance
which is 41% of the entire survey.
 52 out of 74 respondents had an Insurance policy which means that there is more of
general awareness of the Insurance Sector.
 Major respondents were from an age group of 20-30 years, which were 41 out of 74
respondents. Thus research results were affected by these respondents.
 41% of the respondents were self employed, which means that businessmen’s are much
awerse of their financial planning.
 LIC has been the market leader in the Insurance sector with 58% of respondents rating
LIC as Rank 1, which gives an impression that still there is a high competition between
different private players and LIC.
 From the entire population of 74 respondents, 41% were found as post graduates and
45% as graduates, which is the reason for more awareness of the Insurance sector in the
country.
If viewed as an investment vehicle, a traditional whole life policy can be attractive conservative
investment.
Insurance sector has been blooming as flower from different government players to a wide range
of private players providing a mosaic of services to the people of the country. And will be a part
in the portfolio of each and every individual as a
“PART OF THEIR FINANCIAL PLANNING”

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“There are hopes,
There are tries,
There are sufferings,
There are cries,
Success is theirs,
Who climbs these stairs,
With all hardships but lead their lives”
By: Saini Rajinder Singh

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References
1. Business Today. "The Monitory Group Study on Insurance I and II." March 22 and April
7, 2000.
2. Kumari, Vaswati, "India Insurers Seek Perfect Partners." National Underwriters, March
5, 2001, 38-39.
3. Roy, Samit. "Insurance Sector: India." Industry Sector Analysis, National Trade and
Development Board, US Department of State, Washington, DC, December 1999.
4. Sigma. "World Insurance in 1999." No. 9/2000. Published by SwissRe. Available at
www.swissre.com.
5. Guide to the Companies Act by A. Ramaiya
6. Brochure of Religare Product
7. ‘ Traditional Knowledge – operational Terms and definations’, Prepared by the
Secretariat of the WIPO, Intergovernental committee on intellectual Property and Genetic
Resources, Traditional Knowledge anf Folklore, 29th
May 2002.
Websites:
 http://www.lic.wwindia.com/
 www.religare.in
 www.rediff.com
 www.google.com
 www.wikipedia.com
 www.ibibo.com

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ANNEXURE- A
QUESTIONNAIRE
RESPONDENTS PROFILE
Dear,
Sir/Madam
I am a management student and interested in analyzing THE ROLE OF
INSURANCE IN THE FINANCIAL PLANNING OF AN INDIVIDUAL which could
provide lot of options available as an individual investor. It is purely a research
oriented survey as a part of our curriculum.
I shall be highly obliged if you can spare your precious time to fill this
questionnaire.
Name: DOB:
GENDER: M F
AGE: 20-30 30-40 40-50 ABOVE
EDUCATIONAL QUALIFICATION: SENIOR SECONDARY GRADUATE POST-GRADUATE
PHD.
PROFESSION: SELF EMPLOYED GOVT.EMPLOYEE PRIVATE FINANCE
INCOME: 1 - 2.5 LAKH 2.5 - 5 LAKH ABOVE 5 LAKH
Address:……………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………………….
Contact no (Optional):
1. Where do you invest your saving?
Insurance PPF FD MF Others……
2. Are you satisfied with your current pattern of investment?
Yes No Partly satisfied Not satisfied
3. How do you access your financial transactions?
Yourself via agent C.A/Consultant Any other………
4. Are you satisfied with the current rate of returns which you are getting on your investment?
Yes No Partly satisfied

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5. Do you invest in insurance policy for tax benefit?
Yes No
6. If, YES In which type of insurance policy you would like to invest?
Ulip Term Endowment Pension
7. How do you rate the services of following insurance companies?(Rate on the scale of 1-9,
where 1 is the most preferred and 9 least preferred)
COMPANY NAME RANK
1. Aegon Religare
2. Birla Sun Life Insurance
3. ICICI Prudential Life Insurance
4. Tata AIG
5. Kotak Mahindra
6. Aviva Life Insurance
7. Max New York Life Insurance
8. HDFC Standard Life Insurance
9. LIC
8. What factors do you consider when selecting a life insurance company?
Financial safety Company history Company reputation and services
Type of insurance company sells
9. Do you need a sales illustration?
Yes No May be
10. Are you aware of the tax benefits from an insurance policy?
Yes No
11. From which company do you expect best for the payment of claims?
Birla sunlife LIC Aegon Religare Others………………
Any other Suggestions are welcomed:
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THANKS FOR YOUR CO-OPERATION

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