PROJECT REPORT ON

Potential of Life Insurance Industry in Delhi

Submitted in partial fulfillment for the award of the degree of Bachelor of Business Administration 2008-2011 Under the Guidance of Mrs. Poonam Chawla Faculty (MAIMS) Submitted by AMAN GARG Enrollment No.-1391471708 BBA (GEN) 5

MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES

Affiliated to Guru Gobind Singh Indraprastha University, Delhi PSP area, Plot No.1, Sector 22, Rohini, Delhi 110086

INTRODUCTION
Introduction of the Industry Introduction of the Company Company Profile Achievements Management Insurance Plans

THE HISTORY OF INDIAN INSURANCE INDUSTRY

The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era past few centuries yet its beginnings date back almost 6000 years.

Life Insurance
In 1818 the British established the first insurance company in India in Calcutta, the Oriental Life Insurance Company. First attempts at regulation of the industry were made with the introduction of the Indian Life Assurance Companies Act in 1912. A number of amendments to this Act were made until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were the power given to the Government to collect statistical information about the insured and the high level of protection the Act gave to the public through regulation and control. When the Act was changed in 1950, this meant far reaching changes in the industry. The extra requirements included a statutory requirement of a certain level of equity capital, a ceiling on share holdings in such companies to prevent dominant control (to protect the public from any adversarial policies from one single party), stricter control on investments and, generally, much tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance companies. Business was heavily concentrated in urban areas and targeted the higher echelons of society. Unethical practices adopted by some of the players against the interests of the consumers then led the Indian government to nationalize the industry. In September 1956, nationalization was completed, merging all these companies into the so-called Life Insurance Corporation (LIC). It was felt that nationalization has lent the industry fairness, solidity, growth and reach.

Some of the important milestones in the life insurance business in India are:
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: The market contained 154 Indian and 16 foreign life insurance companies.

General Insurance
The General insurance business in India started with the establishment of Triton Insurance Company Limited in 1850 at Calcutta. In 1907, the first company, The Mercantile Insurance Ltd. was set up to transact all classes of general insurance business. General Insurance Council, a wing of the Insurance Association of India in 1957, framed a code of conduct for ensuring fair conduct and sound business practices. In 1968 the Insurance Act was amended to regulate investments and to set minimum solvency margins. In the same year the Tariff Advisory Committee was also set up. In 1972, The General Insurance Business (Nationalization) Act was passed to nationalize the general insurance business in India with effect from 1st January 1973. For these 107 insurers was amalgamated and grouped into four companys viz., the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd., and the United India Insurance Company Ltd. General Insurance Corporation of India was incorporated as a company.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalize 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.

MAJOR POLICY CHANGES

Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority (IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry. IRDA Act 1999 paved the way for the entry of private players into the insurance market which was hitherto the exclusive privilege of public sector insurance companies/ corporations. Under the new dispensation Indian insurance companies in private sector were permitted to operate in India with the following Company is formed conditions: and registered under the Companies Act, 1956;

The aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such Indian insurance or reinsurance business. The minimum paid up equity capital for life or general insurance business is Rs.100crores. The minimum paid up equity capital for carrying on reinsurance business has been prescribed as Rs.200crores. The Authority has notified 27 Regulations on various issues which include Registration of Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of policy holders' interest etc. Applications were invited by the Authority with effect from 15th August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The Authority has its Head Quarter at Hyderabad. company; The company's sole purpose is to carry on life insurance business or general insurance business

Changing face of Indian insurance industry:

Indian life-insurance market is the target market of all the companies who either want to extend or diversify their business. To tap the Indian market there has been tie-ups between the major Indian companies with other International insurance companies to start up their business. The government of India has set up rules that no foreign insurance company can set up their business individually here and they have to tie up with an Indian company and this foreign insurance company can have an investment of only 24% of the total start-up investment. Indian insurance industry can be featured by: Low market penetration. Ever growing middle class component in population. Application of information technology for business. Rebate from government in the form of tax incentives to be insured. Today, the Indian life insurance industry has a dozen private players, each of which are making strides in raising awareness levels, introducing innovative products and increasing the penetration of life insurance in the vastly underinsured country. Several of private insurers have introduced attractive products to meet the needs of their target customers and in line with their business objectives. The success of their effort is that they have captured over 28% of premium income in five years. The biggest beneficiary of the competition among life insurers has been the customer. A wide range of products, customer focused service and professional advice has become the mainstay of the industry, and the Indian customers forms the pivot of each companys strategy. Penetration of life insurance is beginning to cut across socio-economic classes and attract people who have never purchased insurance before. Life insurance is also now being regarded as a versatile financial planning tool. Apart from the traditional term and saving insurance policies, industry has seen the entry and

growth of unit linked products. This provides market linked returns and is among the most flexible policies available today for investment. Now products are priced, flexible, and realistic and sustain so people in better position to understand the risk and benefits of the product and they are accepting these innovative products. So it is clear that the face of life insurance in India is changing, but with the changes come a host of challenges and it is only the credible players with a long term vision and a robust business strategy that will survive. Whatever the developments, the future and the opportunities in this industry will surely be exciting.

Various types of life insurance policies: Endowment policies: This type of policy covers risk for a specified period, and at the
end of the maturity sum assured is paid back to policyholder with the bonuses during the term of the policy.

Money back policies: This type of policy is for periodic payments of partial survival
benefits during the term of the policy as long as the policy holder is alive.

Group insurance: This type of insurance offers life insurance protection under group
policies to various groups such as employers-employees, professionals, co-operatives etc it also provides insurance coverage for people in certain approved occupations at the lowest possible premium cost.

Term life insurance policies: This type of insurance covers risk only during the
selected term period. If the policy holder survives the term, risk cover comes to an end. These types of policies are for those people who are unable to pay larger premium required for endowment and whole life policies. No surrender, loan or paid up values are in such policies.

Whole life insurance policies: This type of policy runs as long as the policyholder is
alive and is covered for the entire life of the policyholder. In this policy the insured amount and the bonus is payable only to nominee on the death of policy holder.

 Joint life insurance policies: These policies are similar to endowment policies in
maturity benefits and risk cover, but joint life policies cover two lives simultaneously such as married couples. Sum assured is payable on the first death and again on the death of survival during the term of the policy.

Pension plan: a pension plan or annuity is an investment over a certain number of

years but does not provide any life insurance cover. It offers a guaranteed income either for a life or certain period.

Unit linked insurance plan: ULIP is a kind of insurance plan which provides life
cover as well as return on premium paid over a certain period of time. The investment is denoted as units and represented by the value called as net asset value (NAV).

COMPANY PROFILE

MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and was incorporated as a joint venture between MetLife International Holdings, Inc., The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors. MetLife is one of the fastest growing life insurance companies in the country. It serves its customers by offering a range of innovative products to individuals and group customers at more than 600 locations through its bank partners and company-owned offices. MetLife has more than 50,000 Financial Advisors, who help customers achieve peace of mind across the length and breadth of the country.

MetLife, Inc., through its affiliates, reaches more than 70 million customers in the Americas, Asia Pacific and Europe. Affiliated companies, outside of India, include the number one life insurer in the United States (based on life insurance enforce), with over 140 years of experience and relationships with more than 90 of the top one hundred FORTUNE 500 companies. The MetLife companies offer life insurance, annuities, automobile and home insurance, retail banking and other financial services to individuals, as well as group insurance, reinsurance and retirement and savings products and services to corporations and other institutions.

MetLife Inc.:-

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Celebrating 140 years, MetLife, Inc. is a leading provider of insurance and financial services with operations throughout the United States and the Latin America, Europe, and Asia Pacific regions. Through its domestic and international subsidiaries and affiliates, MetLife, Inc. reaches more than 70 million customers around the world and MetLife is the largest life insurer in the United States (based on life insurance in-force). The MetLife companies offer life insurance, annuities, auto and home insurance, retail banking and other financial services to individuals, as well as group insurance and retirement & savings products and services to corporations and other institutions.

FACT SHEET
Founded Started Operation Headquarters World Wide Web Address Managing Director Employees Financial Advisors Bancassurance Tie-Ups Number Of Products Presence Through MetLife Offices Presence Through Bank Partners 2001 FY 2001-02 Bangalore, India www.metlife.co.in Rajesh Relan 7,760 68,995 5 (J&K Bank/Axis Bank/Dhanalakshmi Bank/Karnataka Bank/Barclays) Over 20 products 198 offices in 142 cities 1910 offices in 686 cities

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"Coming into your own",performing as a Leader to be really effective and successful by acting and making decisions independently to get results.

It's all about People, MetLife's key resource. MetLife will succeed because we are winning from within.

Functioning productively in teams towards a common purpose; realising the collective power of diverse workgroups.

Operating with an intense dedication to managing monetary resources for strong business results.

Conducting all business endeavors with truth, sincerity and 12

Continuously creating and introducing new and original ideas

fairness.

and ways of doing things.

Management: Rajesh Relan Managing Director MSVS Phanesh Murthy Appointed Actuary Shilpa Vaid Deputy Director- Human Resources Gaurav Sharma Director - Customer Service and Operations Girish Malhotra Director- Agency KR Anil Kumar Director - Financial Planning & Controller KS Raghavan Chief Administrative Officer Preetinder Chadha Deputy Director - Corporate Sales & Training P. S. Sankaran Director Business Support Sameer Bansal Director- BA & BP Vijay Raghavan Director - Marketing & Strategy

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Partners:-

Corporate Social Responsibility:MetLife has always been committed towards making a positive difference in the lives of the individuals and communities. Today, that commitment drives volunteer work and philanthropy across the globe. Working with non-profit organizations, MetLife supports programs that provide young people with the skills they need to succeed in life and create opportunities for people of all ages. MetLifes core values are personal responsibility, people count, partnership, integrity and honesty, innovation and financial strength. These values also shape the responsibility to the communities where the organization conducts its business.

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Child Plan:Met Bhavishya

MetLife offers 'Met Bhavishya' - a guaranteed money back plan that pays out funds to help to meet the education and career milestones of children. With this plan, the Life Insured is that of the parent. The plan also has inbuilt guaranteed additions to add value to the policy over its term. There are two options to choose from and fixed term benefits, periodic additions & terminal additions are payable based on the option that select. The policy is suitable for parents with children between the ages 0-12 and parents in the age group of 20-50 years old.

Met Junior Endowment

MetLife offers 'Met Junior'- a flexible endowment plan that combines savings and security. Children's well-being is our highest priority. So MetLife offer a plan which offers both timely and efficient return on investment. All with a guarantee. Met Junior - Non Par On attaining maturity, the Person Insured will receive the Sum Assured. Met Junior - Par On attaining maturity, the Person Insured will receive the Sum Assured, the Reversionary Bonus and the Terminal Bonus, if any.

Met Little Star

When child is born, a star is born in family. And, parents would like to provide their star with all the building blocks that could develop his or her potential to the fullest. This could mean special instruction sessions for talented children, unique training gear for exceptional athletes or qualified training for born singers to provide that extra-edge.

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To ensure this, parents would need an investment and protection package that is exclusively designed to help you plan for financial security, no matter what uncertainties life brings. 'Met Little Star', a Unit-Linked, regular premium, child insurance plan helps parents do just that. It secures finances for child's educational needs and ensures that plans go as planned, no matter what the circumstances.

\Met Junior Money Back

MetLife offers 'Met Junior Money Back' - a money back plan that combines savings and security. Child's well-being is our highest priority. So MetLife offer a money back plan which provides guaranteed periodic survival benefits at the end of 5, 10 & 15 years, along with guaranteed growth of savings.

A plan which offers both timely and efficient return on investment with payouts at different milestones. Survival Benefit

At the end of 5 years 20% of Sum Assured At the end of 10 years 20% of Sum Assured At the end of 15 years 20% of Sum Assured Upon survival to maturity 40% of Sum Assured plus total Guaranteed Additions

Met Magic
MetLife offers 'Met Magic', a Unit-Linked (non-medical, regular premium) life insurance plan (Non Par).

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Parents always want their little angel to have the best, in every sphere of life. You don't want your child to have to compromise. No matter what the circumstances. Met Magic, a unique life insurance plan, helps you secure the future of your loved one! (IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICY HOLDER )

Retirement:-

Met Growth

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MetLife offers 'Met Growth' - a Unit-Linked solution to help in golden years. It is specially designed to provide financial security for future requirements. This plan allows to start planning immediately by ensuring the safety of first year premiums. It also helps create retirement fund faster by giving you 100% allocation from the second year onwards, coupled with attractive loyalty additions into fund. Guaranteed.

Entry Age (in completed years) Maturity Age Coverage Term Premium Payment Term Minimum Annualized Premium Basic Sum Assured

Min 0 years (3 months to be completed) Max 60 years Min 18 years Max 75 years 15 / 20 / 25 / 30 years Regular Rs. 12,000 Min - 5 times the Annualized Premium ***Other Sum Assured multiples - 10 times & 20 times the Annualized Premium. Monthly, Quarterly, Half-yearly, Yearly

Premium Paying Modes

Benefit
Death Benefit
In the unfortunate event of death, the higher of the Sum Assured or the Fund

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Value would be payable. If death of the Person Insured occurs before age 7, the Fund Value plus the regular premium received by us in the first policy year is payable.

Maturity Benefit
On maturity, you will receive the Fund Value including the Guaranteed Loyalty Addition or you can opt for the settlement options.

Loyalty Additions
You get the guarantee of enhancing your wealth creation through guaranteed loyalty additions (up to 120% of the first year annual premium) at the end of the 10th & 15th year plus Guaranteed Additions as a % of the Fund Value. At the end of the 10th year: 50% of the first year annualized premium

Met Advantage Plus

MetLife offers 'Met Advantage Plus' - a Unit-Linked Pension Plan that allows to effectively and efficiently accumulate retirement needs. As the name suggests, it comes with many advantages.One can choose from eight annuity options, two life cover options and get tax benefits under Section 80 C and 10 (10 A). One can buy the plan without any hassles and invest more as you approach retirement by using the top-up functionality. All in all, its a plan which works harder when one stop working. For one, it ensures that you lead a comfortable lifestyle post retirement.

Entry Age (in completed years) Min 20 years Minimum Term Minimum Vesting Age Maximum Vesting Age Minimum Premiums Premium Paying Term
10 years

Max 55 years

45 years 65 years
Single Pay: Rs. 1,00,000 Regular Premium: Rs. 10,000

Single Pay & Regular Pay

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Benefits Death Benefit

In case of death during the accumulation period, the death benefit payable is: Under Option A: A guaranteed amount of 110% of the Fund Value is payable to the nominee. Under Option B: 100% of the Fund Value is payable to the nominee.

Vesting Benefit
On the vesting date, i.e. at the end of the accumulation term,you can take one-third of your retirement kitty as a tax-free lump sum and utilize the balance to buy annuities. Or you can use the entire retirement kitty to buy annuities.

Met Pension-Par
'Met Pension (Par)' serves as a friendly helping hand so one can stay financially independent even after retirement. It helps to build up a fund for golden years. With this plan,one can ensure his\her enjoy retirement as a happy new chapter.

Entry Age (in completed years) Minimum Term Minimum Vesting Age Maximum Vesting Age Minimum Sum Assured Maximum Sum Assured Minimum Annual

Min 18 years Max 60 years 10 years 45 years 70 years Rs. 50,000 No Limit Rs. 4000 p.a. for Regular Pay

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Premium Premium Payment Term Single Pay, Limited Pay (3 or 5 Pay) & Regular Pay

Benefits
Death Benefit In case of death while one is saving for retirement, the death benefit payable is: 1. Return of premiums. 2. Accrued reversionary bonus, if any. 3. Any insurance on the life of the Insured that may be provided by riders to this policy.

Vesting Benefit On the vesting date, you can take one third of your retirement kitty as a tax-free lump sum and utilize the balance to buy annuities or you can use the entire retirement kitty to buy annuities. The retirement fund on the date of vesting is equal to the Sum Assured plus Guaranteed Additions plus the compounded reversionary bonuses plus the terminal bonus, if any.

Savings:-

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Met Sukh
MetLife offers 'Met Sukh'- a guaranteed money-back policy which provides guaranteed periodic survival benefits at the end of 5, 10, 15 & 20 years and guaranteed additions of 10% of the Sum Assured for the entire term. It not only covers your life, but also guarantees you cash payments at various milestones along with guaranteed growth of your savings.

Entry Age Coverage Term Premium Payment Term Minimum Sum Assured Maximum Sum Assured

Min - 15 years Max - 55 years 20 years Regular Rs. 75,000 No Limit

Benefits
Death Benefit
In the unfortunate event of death of the Person Insured, the Sum Assured along

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with the Guaranteed Additions are payable. The policyholder is entitled to Guaranteed Additions of Rs. 100 per Rs. 1,000 of the Sum Assured for each completed year.

Maturity Benefit
On maturity, the life insured will receive the Survival Benefits plus the Guaranteed Addition. Survival Benefits

At the end of 5 years At the end of 10 years At the end of 15 years Upon survival to maturity

20% of the Sum Assured 20% of the Sum Assured 20% of the Sum Assured 40% of the Sum Assured plus Total Guaranteed Additions

Met Suvidha
'Met Suvidha' is a flexible Endowment Plan that combines savings and security. In addition to providing you protection till the maturity of the plan, it helps you save for your specific long term financial objectives. This long term savings-cum-protection plan comes to a customer at affordable premiums.

Met Suvidha is available in both participating as well as non-participating versions.

Minimum Entry Age

Par: 15 years - 60 years

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Non-Par: 15 years - 70 years Term Premium Paying Terms Minimum Annual Premium Amount Minimum Sum Assured Maximum Sum Assured Par: - 15 years - 30 years Non-Par: 5 years - 30 years Single Pay, Limited Pay (5 or 10) & Regular Pay Rs. 2,500 Rs. 75,000 No Limit

Met Saral
MetLife presents 'Met Saral' - a non- participating endowment plan. As the name suggests, its a simple savings plan which gets customer into the savings habit without any medical tests. All need to do is fill in a simple application form and are ensured a guaranteed maturity amount of Rs 100,000, even in the case of death during the term. Take the first step towards a better financial future for customer and his family. Ensure and insure the first Lakh.

Met 100
'Met 100' - a whole life policy where customer pay premiums for 15, 20 or 25 years. It helps create a legacy for the children, leaving money for a dependant spouse and, more importantly, provides insurance cover at affordable rates. Met 100 is available in participating as well as non- participating versions.

Non-Par Minimum Entry Age 15 yrs Maximum Entry Age 70 yrs for ppt of 15 yrs 24

Par 0 yrs 70 yrs for ppt of 15

65 yrs for ppt of 20 yrs 60 yrs for ppt of 25 yrs

yrs 65 yrs for ppt of 20 yrs 60 yrs for ppt of 25 yrs 70 yrs for life ppt 15, 20, 25 yrs Rs. 50,000 No limit (subject to UW) Met 100 Gold: Rs. 2,500 Met 100 Platinum: Rs. 7,500

Premium Paying Terms Minimum Sum Assured Maximum Sum Assured Minimum Annual Premium

15, 20, 25 yrs Rs. 50,000 No limit (subject to UW) Rs. 1,000 for issue age of < 15 yrs Rs. 2,500 for issue age of > = 15 yrs

Met 100 - Non-Par In the event of death, the Sum Assured is payable.

Death Benefit Met 100 - Par In the event of death, the Sum Assured plus the Reversionary Bonus and Terminal Bonuses, if any, are payable.

Maturity Benefit Met 100 - Par On maturity of the policy, the Sum Assured plus the Reversionary Bonus and Terminal Bonuses, if any, are payable. Met 100 - Non-Par On maturity of the policy, the Sum Assured is payable

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Protection:-

Met Suraksha
MetLife offers 'Met Suraksha - Term Assurance (TA)', a non participating term assurance plan which provides life cover at a nominal cost. To put it simply, it is a life insurance plan that gives complete protection to enjoy life to the fullest. Customer can further customize plan with two riders Accidental Death Benefit and Critical Illness.

Met Suraksha TROP

MetLife offers 'Met Suraksha - Term with Return of Premium (TROP)', a non participating term assurance plan which provides life cover at a nominal cost. To put it simply, it is a life insurance plan that gives complete protection to enjoy life to the fullest. You can further customize your plan with two riders Accidental Death Benefit and Critical Illness.

Met Mortgage Protector

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This plan which provides life cover for home loans taken for any period above 5 years. It is a decreasing term insurance with single and limited premium options. The plan covers an amount equal to the outstanding amount as per the policy schedule. It ensures the assets that have created stays with family.

Rural :None of us can be sure what tomorrow will bring. Shield your families against the unknown. MetLifes rural plans protect your loved ones against financial liabilities and help you save for tomorrow. All at affordable premiums

Met Vishwas
'Met Vishwas', - a single premium, micro insurance, non- participating term assurance plan which provides life cover at a nominal cost. On survival, customers get 110% or 125% of the premium.

Minimum Entry Age Maximum Entry Age Maximum Maturity Age Minimum Sum Assured Maximum Sum Assured Policy Term Premium Paying Terms

18 years 60 years 70 years Rs. 5,000 Rs. 50,000 5 or 10 years Single Pay

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Met Suvidha-Rural
Met Suvidha (Rural) is a participating flexible Endowment Plan that combines savings and security. In addition to providing protection up to maturity, it helps to save for specific long term financial objectives. This long term savings-cum-protection plan comes at affordable premiums.

Benefits: Met Suvidha - Par In the event of death during the term of the policy, the beneficiary will receive the base Sum Assured, the accrued reversionary bonus and terminal bonus if any.
insurance.

Maturity Benefit Met Suvidha - Par On maturity of the policy, you will receive the base Sum Assured, the accrued reversionary bonus and terminal bonus if any.

It is an Endowment plan that offers both savings and life Flexible premium paying options to suit various income cycles. A plan which participates in the bonuses declared by the company. Customization possible with Accident Death Benefit, Critical
Illness, Term, Waiver of Premium Riders for comprehensive protection.

Investment:-

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MetLifes Unit-Linked Insurance Plans ensure systematic enhancement of wealth. Be it higher returns or the right blend of protection and wealth optimization, they help to ensure the right choice and peace of mind. (IN THESE POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICY HOLDER )

Met Easy
A simplified unit-linked plan which offers an opportunity to systematically build wealth and protection for you and your family.

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10 years Minimum Age 8 at Entry Maximum Age 55 at Entry Minimum Premium Maximum Premium Sum Assured 20,000 6,00,000

15 years 3 50 15,000 4,00,000

20 years 0 (3 months to be completed) 50 12,000 3,00,000 10 times the annualized regular premium

5 times the 7.5 times the annualized regular annualized regular premium premium

Premium Yearly, Half-yearly, Yearly, Half-yearly, Yearly, Half-yearly, payment modes Quarterly, Monthly Quarterly, Monthly Quarterly, Monthly

(The maximum Sum Assured available in this product is based on age, at the time of buying the policy.)

Benefits-

Death Benefit In the event of death: In the 1st Policy Year: Higher of 50% of the Sum Assured or the Fund Value is payable. After the 1st

Policy Year: Higher of 100% of the Sum Assured or Fund Value. If death of the Person Insured occurs before age 7, the Fund Value plus the Regular 30

Premium received by us in the first policy year is payable. Maturity Benefit On maturity, you will receive the Fund Value

including the Loyalty Addition or you can opt for the settlement options.

Loyalty Additions With Met Easy, you get the benefit of potentially enhancing your

wealth creation with loyalty additions that are added to your policy on maturity.

Met Smart Gold

MetLife offers 'Met Smart Gold'- a Unit-Linked wealth creation cum protection plan for the well-heeled. It's specially conceived so that one can get a plan to match his specific financial requirements. If you are keen on investing lump sum amounts over a shorter horizon, this is the ideal plan for you.

Met Smart Plus-Regular Pay

'Met Smart Plus' a Unit-Linked Whole life plan that matures at age 100. If you want to protect your family from lifes uncertainties; at the same time, you wish insurance would yield higher returns on your investments. You want your insurance policy to help realize all your dreams. Its a right plan to go with.

Entry Age (in completed years) Maturity Age Premium Payment Term

Min 0 years (3 months to be completed) Max 70 years 100 years Regular

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Minimum Annualized Premium Minimum Basic Sum Assured Premium Payment Modes

Rs. 12,000 Rs. 60,000 Monthly, Quarterly, Half-yearly, Yearly

Met Smart Plus- Single Pay

Same as Met Smart Plus Regular but premium is payable in a single term or at the time of policy taken.

Met Smart Premier- Regular Pay

MetLife offers 'Met Smart Premier' a Unit-Linked Whole life plan that matures at age 100. You want to protect your family from lifes uncertainties; at the same time, you wish insurance would yield higher returns on your investments. You want your insurance policy to help realize all your dreams.

Met Smart Premier- Single Pay

Payable lump sum at the time of policy taken.

Health:-

Met Health Care

UIN no: 117N048V01

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Health problems strike unexpectedly. In addition to causing ill health, it can also scar financial health. One need to protect himself against such a situation through a health insurance plan. In order to ensure you are well protected to face any health condition that could befall you, MetLife presents - Met Health Care, a simple health insurance policy with unique and smart advantages for you and your family#. (# Family means spouse and two children. Every additional family member shall be underwritten as per the underwriting conditions laid by the Company from time to time.)

Met Health Care is a long term health insurance plan from MetLife. This plan covers

1. Hospitalization expenses by providing a Daily Cash benefit as chosen by you. 2. 10 major Critical Illnesses by providing a lump sum benefit. 3. Total & Permanent Disability due to accident by providing a lump sum benefit. All the above benefits can be availed without the hassle of undergoing any medical examination. Just fill up the simple application form and start enjoying the unmatched benefits of Met Health Care.

Minimum/Maximum age of entry Cover ceasing age Maturity/Death Benefit Benefits Offered

18 years-55 years (At first entry, for the Principal insured) 3 months-55 years (For Secondary Insured lives) 65 years No Maturity/Death Benefit payable (a) Daily Hospitalisation Cash Benefit (b) Daily ICU Cash Benefit

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(c) Recuperation Benefit (d) Critical Illness Benefit (e) Accidental Total & Permanent Disability Benefit Premium paying frequency Yearly. Half-Yearly mode is avaiable only if each of the persons insured choose a daily cash benefit of Rs. 3000 or more.

Illustration
Benefit Daily Hospitalisation Cash Benefit Option 1 Option 2 Option 3 Option 4 Rs. 4000 per day Rs. 6000 per day Rs. 10000 Rs. 3 Lakh Rs. 3 Lakh Option 5 Rs. 5000 per day Rs. 6000 per day Rs. 10000 Rs. 3 Lakh Rs. 3 Lakh

Rs. 1000 per day Rs. 2000 per day Rs. 3000 per day

Daily ICU Cash Benefit Rs. 2000 per day Rs. 4000 per day Rs. 6000 per day Recuperation Benefit Critical Illness Benefit Accidental Total & Permanent Disability Benefit Rs. 3000 Rs. 1 Lakh Rs. 1 Lakh Rs. 6000 Rs. 2 Lakh Rs. 2 Lakh Rs. 9000 Rs. 3 Lakh Rs. 3 Lakh

Benefits Death/Maturity Benefit

There is no Death/Maturity Benefit under Met Health Care.

Tax Benefits
The premium paid (excluding the service tax) under this plan is eligible for Tax Benefits under Section 80 D of the Income Tax Act, 1961 as per the provisions and conditions given therein and are subject to any changes made in the tax laws in future.

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Reasons to Buy
1. Coverage for the entire family. 2. No Claim Discounts. 3. Guaranteed Cover* till age 65. 4. Payouts in addition to other Insurance Plans. 5. Multiple Claims.

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RESEARCH METHODOLO GY
Objective Scope of study Sampling methodology Limitations

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RESEARCH METHODOLOGY TITLE:

To Study Potential of Life Insurance Industry in Delhi.

TITLE JUSTIFICATION:
The above title is self explanatory. The study deals mainly with studying the buying pattern in the insurance industry with a special focus on MetLife India Insurance Co. Ltd. The various segments of the markets divided in terms of Insurance Needs, Age groups, Satisfaction levels etc will also studied.

OBJECTIVE
Main objective of the research is to have an analysis of life insurance industry in Delhi. To accomplish this objective it has been divided into five. To determine reasons behind opting for an insurance. To know the most preferred policy. To determine customers perception towards private insurance companies and their expectation form private insurance companies.

To determine the feedback on services provided by an insurance

agent.

To study the types of benefits provided by insurance services.

SCOPE OF THE STUDY 37

A big boom has been witnessed in Insurance Industry in recent times. A large number of new players have entered the market and are trying to gain market share in this rapidly improving market. The study deals with reliance in focus and the various segments that it caters to. The study then goes on to evaluate and analyze the findings so as to present a clear picture of trends in the Insurance sector.

SIGNIFICANCE TO THE INDUSTRY:

This is a limited study which takes into consideration the responses of 100 people. This data can be explorated to take in the trends across the industry. The significance for the industry lies in studying these trends that emerge from the study. It is a rapidly changing and evolving sector. People are only beginning to wake up to its vast possibilities. A study like this can attempt to guide the future of the industry based on current trends.

SIGNIFICANE FOR THE RESEARCHER:

To facilitate and provide useful information for the study of the company and the insurance industry and also provide recommendations for MetLife India Insurance Co. Ltd

RESEARCH DESIGN
NON-PROBABILITY EXPLORATORY RESEARCH The research is primarily both exploratory as well as descriptive in nature. The sources of information are both primary & secondary. A well-structured questionnaire was prepared and personal interviews were conducted to collect the customers perception and buying behavior, through this questionnaire. & DISCRIPTIVE EXPERIMENTAL

38

SAMPLING METHODOLOGY Sampling Technique:

Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study was done in order to know the accuracy of the Questionnaire. The final Questionnaire was arrived only after certain important changes were done. Thus my sampling came out to be judemental and convinent

Sampling Unit:
The respondents who were asked to fill out questionnaires are the sampling units. These comprise of employees of MNCs, Govt. Employees, Self Employed etc.

Sample size:
The sample size was restricted to only 100, which comprised of mainly peoples from different regions of Jaipur due to time constraints.

Sampling Area:
The area of the research was Delhi & NCR, India.

LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of Delhi & NCR and does not necessarily shows a pattern applicable to all of Country.

39

2. Some respondents were reluctant to divulge personal information which can affect the validity of all responses. 3. In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings.

SURVEY
Graph Analysis Data Interpreta

40

DATA ANALYSIS & INTERPRETATION Ques: DO YOU HAVE ANY INSURANCE POLICY? RESPONSE Yes No Total NO. OF RESPONDENTS 70 30 100 SHARE (%) 70% 30% 100%

INTERPRETATION
Of the sample size of 100 surveyed respondents 70% of the

respondents are having Insurance policy. 30% of the respondents are either not having any Insurance

policy at present or their policy is already matured. And at present 100% of the respondents are with the view that

Insurance is a tool to protect your family.

41

Ques: WHICH INSURANCE POLICY DO YOU HAVE? POLICY TYPE LIFE POLICY NON LIFE POLICY BOTH NO. OF RESPONDENTS 75 25 45 SHARE (%) 75 25 45

INTERPRETATION
75% of the respondents have only Life Insurance Policy. While 45% of the respondents have both.

25% of the respondents have only Non- life Policy.

[Some of the respondents opted for two or more than two items] 42

Ques: WHICH COS INSURANCE POLICY YOU PREFER THE MOST? (RANKTHEM) NO.OF COMPANYS NAME SHARE (%) RESPONDENT L.I.C. Reliance Life Insurance Metlife India Ins. Co.Ltd Bajaj Allianze ICICI Prudential SBI Life Max New York Life TOTAL 74 3 2 3 9 7 2 100 74 3 2 3 9 7 2 100

INTERPRETATION

43

 74% of the people contacted prefer LIC policy to any other and
therefore it is ranked no.1 by that percent of respondents.

Ques: WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE PLAN? (RANK THEM) NO.OF BENEFITS SHARE (%) RESPONDENTS Cover Future Uncertainty Tax Deductions Future Investment TOTAL 55 20 25 100 55 20 25 100

[Fig4]
F uture Investment 25% Cover F uture Uncertainty 55%

T ax Deductions 20%

INTERPRETATION
55% of the respondents believe that covering future uncertainty is the biggest benefit of an insurance policy. Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and future investments respectively.

44

Ques: WHAT ARE THEFEATURES OF INSURANCE POLICY THAT ATTRACTS YOU? FEATURE Money Back Guarantee Larger Risk Coverage Easy Access to Agents Low Premium Companys Reputation TOTAL
[Fig 5] REPUTATIO N OF COMPANY 11% LOW PREMIUM 30% MONEY BACK GUAARENT EE 15%

NO.OF RESPONDENTS 15 37 7 30 11 100

SHARE (%) 15 37 7 30 11 100

EASY ACCESS TO AGENTS 7%

LARGER RISK COVERAgE 37%

INTERPRETATION Majority of the respondent (37%) found larger risk coverage as

the most attracted feature of the all.

Minimum respondents (7%) opted for easy access to agents.

45

Ques: WHAT IS YOUR PERCEPTION ABOUT INSURANCE RESPONSE A saving tool A tax saving device A tool to protect your family NO. OF RESPONDENTS 81 74 100 SHARE (%) 81% 74% 100%

INTERPRETATION
81% of the respondents have perception of Insurance being a

saving tool. And 74% of the respondents have perception of Insurance

being a tax saving device.

46

But 100% of the respondents are with the view that Insurance

is a tool to protect your family. [Some of the respondents opted for two or more than two items]

Ques: YOU ARE HAVING INSURANCE FOR? Response self spouse children parents all No of respondents 40 28 21 18 11

INTERPRETATION
Among that 42% people who having insurance, they have insurance 40% for self, 28%for spouse ,21% for children and 18% for their parents and 11% for all family member.

47

Ques: WHAT ARE THE REASONS BEHIND TAKING INSURANCE? RESPONSE Tax saving Saving / Investment Family protection NO. OF RESPONDENTS 80 80 100 SHARE (%) 80% 80% 100%

INTERPRETATION
80% of the Respondents opted for Insurance for tax saving

benefits and saving/investment both.

48

But all of them, i.e. 100% of the respondents have opted for

insurance for their family protection.

[Some of the respondents opted for two or more than two items]

49

Ques: ARE YOU SATISFIED OF WITH RESPECT TO YOUR POLICY? RESPONSE Satisfied Not satisfied Not Responded Total NO. OF RESPONDENTS 60 40 0 100 SHARE (%) 60% 40% 0.0% 100%

INTERPRETATION
60% of the respondents are more or less satisfied with their

existing policy. policy. 40% of the respondents are not satisfied with their existing

50

In this case all of those who have taken a policy have

responded.

51

Ques: ARE YOU SATISFIED WITH YOUR SERVICE AGENTS? RESPONSE Satisfied Not satisfied Not Responded Total
Not R ponded es 0%

NO. OF RESPONDENTS 45 55 0 100

SHARE (%) 45% 55% 0.0% 100%

[F 10] ig

Not s fied atis 55%

S fied atis 45%

INTERPRETATION
agent. 55% of the respondents are not satisfied with their existing 45% of the respondents are satisfied with their existing service

insurance agent. All of those who have taken a policy have responded.

52

Ques: ARE YOU PAYING TAX? RESPONSE Paying tax Not paying tax Total NO. OF RESPONDENTS 91 9 100 SHARE (%) 91% 9% 100%

INTERPRETATION
Of the sample size of 100 respondents, 91 respondents are

paying tax.

53

Ques: Acc. TO YOU WHAT IS THE BEST FORM OF INVESTMENT FOR SECURING THEIR FUTURE? NO. OF RESPONDENTS Fixed Assets Bank deposits Jewellery Securities i.e. bonds, MFs Shares Insurance 75 11 25 40. 10 70 SHARE (%) 33% 5% 11% 17% 4% 30%

80 70 60 50 40 30 20 10 0

F ed ix As ets 75 s ,

[F 12] ig
Ins urance, 70 Bonds /Mutual F unds 40 , Jewellery 25 , B ank depos , 11 its

S hares 10 ,

Fixed Assets Bank deposits

Jewellery

Bonds/Mutual Funds

Shares

Insurance

INTERPRETATION
75% of the respondents are with the view that Fixed Assets is

the best form of investment for securing their future. 70% of the respondents are with the perception that Insurance

is the best form of investment for securing their future, which is 2nd highest and this shows that insurance is an important key for securing your future. [Some of the respondents opted for two or more than two items]

54

Ques: Acc. TO YOU WHAT IS THE APPROPRIATE AGE FOR BUYING INSURANCE? RESPONSE After 25 years After 35 years After 45 years Anytime NO. OF RESPONDENTS 29 10 0 61 SHARE (%) 29% 10% 0% 61%

INTERPRETATION
29% of the respondents are with the view that insurance

should be bought after the age of 25 years.

10% of the respondents are with the view that insurance

should be buyed after the age of 35 years. Whereas, 61% of the respondents are with the view that

buying of insurance do not have anything to do with age i.e. there is

55

no age limitations. It can be purchased any time according to the need.

Ques: YOUR OPINION ABOUT PEOPLE INDIAN INSURANCE COMPANIES. RESPONSE Rigid plans Non user friendly Unsatisfactory services Non Aggressive Satisfactory Good Very good NO. OF RESPONDENTS 67 29 26 35 24 10 0 SHARE (%) 67% 29% 26% 35% 24% 10% 0%

56

INTERPRETATION
67% of the respondents have the opinion that Indian Insurance

Companies have Rigid plans. 29.5% feel that Indian Insurance companies are Non-user

friendly. 26.5% feel that services of Indian Insurance companies are

Unsatisfactory. 35.75% of the respondents are with the view that Indian

Insurance companies are Non-aggressive.

24% of the respondents feel that products and services of

Indian Insurance companies is Satisfactory. Whereas only 10.25% feel that it is Good enough. And according to the data, no single person has felt that it is

very good.

[Some of the respondents opted for two or more than two items]

57

Ques: WHAT YOU LOOK FOR IN AN INSURANCE COMPANY? RESPONSE A trusted name Friendly service & responsiveness Good plans Accessibility NO. OF RESPONDENTS 82 71 81 49 SHARE (%) 82% 71% 81% 49%

INTERPRETATION
82% customers look for a Trusted name in a company for

insurance. 81.5% customers look for a good plan in a company for

insurance. Friendly service & responsiveness and Accessibility are also

important factors looked by customers in a company.

58

[Some of the respondents opted for two or more than two items]

Ques: ARE YOU INTERESTED IN GOING FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS? RESPONSE Yes No Uncertain Total NO. OF RESPONDENTS 43 44 13 100 SHARE (%) 43% 44% 13% 100%

INTERPRETATION
The interested customers i.e. 43% are ready to go for

insurance even away from a city if services and products are

59

worthwhile, which again is a good prospect (potential) for Max New york Life Insurance to take them on their favor.

Ques: ARE YOUR PLANNING FOR NEW INVESTMENTS? RESPONSE Planning Not planning Total NO. OF RESPONDENTS 87% 13 100 SHARE (%) 87% 13% 100%

[F 1 ig 7]
Not Planning 13%

Planning 87%

INTERPRETATION
Only 13% of the customers contacted are not planning for new

investments presently.

60

Whereas, 87% of the customers are still planning for new

investments this can be a great potential for MetLife India Insurance Co. Ltd to take them on their favor.

61

FINDINGS AND RECOMMENDATIO NS

62

FINDINGS & RECOMMENDATIONS

1. As the people think that insurance is a tool to protect their family & a tax saving device. They are aware of the fact & realizing its, importance. There is a large potential for insurance in India. 2. The entrance of private players will increase the competition and it would be a tough task to secure a good position in market. 3. Since Met Life India Insurance is leading with several companies policies it should be easy for them to penetrate into the market and secure a good position if they pay greater attention to the service part provided to their customer and thereby forming a long and trusted relationship. 4. As seen from the survey that at present 70% of the customer are having insurance policy out of which 87.5% of the customer are planning for new investments. So it can be a good potential for the company and they should make an attempt to trap these customers. 5. As 43% of the customers are even ready to go for insurance if a service provider away from their city is providing it. But in turn they should provide good products and services. The company should try to convince these customers and get them in its favor.

GROWTH POTENTIAL At present life insurance penetration in India is quite low 3.5% of GDP.

PHASE OF TRANSITION Life Insurance industry is under the phase of infancy after 50 years of monopoly. Competition from within and other sectors of financial market.

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CONCLUSION
The exhaustive research in the field of Life Insurance threw up some interesting trends which can be seen in the above analysis. A general impression that I gathered during Data collection was the immense awareness and knowledge among people about various companies and their insurance products. People are beginning to look beyond LIC for their insurance needs and are willing to trust private players with their hard earned money. People in general have been impressed by the marketing and advertising campaigns of insurance companies. A high penetration of print, radio and Television Ad campaigns over the years is beginning to have its impact now. Another heartening trend was in terms of people viewing insurance as a tax saving and investment instrument as much as a protective one. A very high number of respondents have opted for insurance for such purposes and it shows how insurance companies have been successful to attract public money in recent times. The general satisfaction levels among public with regards to policy and agents still requires improvement. But therein lies the opportunity for a relative player like MetLife India Insurance Co. Ltd. LIC has never been known for prompt service or customer oriented methods and MetLife India Insurance Co. can build on these factors.

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BIBLIOGRAPHY

WEBSITES REFERRED
www.metlife.co.in www.irdaindia.org www.thehindubusinessline.com

BOOKS REFERRED
Philip Kotler Coverage Matters

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ANNEXURE

66

QUESTIONNAIRE NAME:_________________________ ADDRESS:______________________ ______________________________OCCUPATION:______ _____________ 1. ARE YOU EMPLOYED? YES NO 2. DO YOU HAVE ANY INSURANCE POLICY? YES NO 3. WHICH INSURANCE POLICY DO YOU HAVE? LIFE NON-LIFE BOTH

4. WHICH COS INSURANCE POLICY YOU PREFER THE MOST? (RANKTHEM) a) b) c) d) e) f) g) h) LIC ICICIPRUDENTIAL SBI LIFE INSURANCE MET LIFE INDIA INSURANCE MAX NEW YORK LIFE INSURANCE BAJAJ ALLIANZE RELIANCE LIFE INSURANCE ANY OTHER ________( Specify)

5. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE PLAN? (RANK THEM) a) COVER FUTURE UNCERTAINITY b) TAX DEDUCTIONS

67

c) FUTURE INVESTMENT d) ANY OTHER _________ (Specify) 6. WHATS YOUR PERCEPTION ABOUT INSURANCE? (RANK THEM) a) A SAVING TOOL b) A TAX SAVING DEVICE c) A TOOL TO PROTECT FUTURE 7. ARE YOU SATISFIED WITH THE POLICY? a) SATISFIED b) NOT SATISFIED c) NOT RESPONDING 8. ARE YOU SATISFIED WITH THE SERVICE AGENT? a) SATISFIED b) NOT SATISFIED c) NOT RESPONDING 9. DO YOU PAY TAXES? YES NO

10.WHICH IS THE BEST FORM OF INVESTMENTS? (RANK THEM) a) FIXED ASSETS DEPOSITS 68 b) BANK

c) JEWELLERY i.e. Bonds, MFs e) SHARES

d) SECURITIES, f) INSURANCE

11.. WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS? a) SAVING & RETURNS c) TAX BENIFITS 12.WHATS THE RIGHT AGE TO BUY INSURANCE? a) AFTER 25 Yrs c) AFTER 45 Yrs b) AFTER 35 Yrs d) ANYTIME b) SECURITY

13.HOW WOULD YOU RATE INDIAN INSURANCE COs? a) RIGID PLANS USER FRIENDLY c) UNSATISFATORY SREVICES AGGRESSIVE e) SATISFACTORY g) VERY GOOD 14.WHAT WOULD YOU LOOK FOR IN AN INSURANCE COs? (RANK THEM) a) A TRUSTED NAME b) FRIENDLY SERVICE & RESPONSIVENESS c) GOOD PLANS d) ACCESSIBILITY 69 b)NONd) NONf) GOOD

15.WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS? a) YES UNCERTAIN b) NO c)

16.ARE YOU PLANNING FOR NEW INVESTMENTS? PLANNING

NOT PLANING THANK YOU.

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