A

PROJECT REPORT ON

CUSTOMER AWARENESS REGARDING MET LIFE INDIA INSURANCE COMPANY IN SHRI NAGAR, J&K

UNDER SUPERVISION OF:

SUBMITTED BY
NAME :

ENROLLMENT NO :

Submitted in partial fulfillment of the requirements for qualifying

MBA 2011

CUSTOMER AWARENESS REGARDING MET LIFE INDIA INSURANCE COMPANY IN SHRI NAGAR, J&K

Under Supervision of Submitted By: Name Programme Code Enrollment No. Name of the Study Centre Study Centre Code Regional centre

: : : : : : MBA

CERTIFICATE OF ORIGINALITY
This is to certify that the project titled CUSTOMER AWARENESS REGARDING MET LIFE INDIA INSURANCE COMPANY IN SHRI NAGAR, J&K is an original work of the Student and is being submitted in partial fulfillment for the award of the Masters Degree in Business Administration of ... This report has not been submitted earlier either to this University or to any other University/Institution for the fulfillment of the requirement of a course of study.

Signature of Student
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Signature of Supervisor
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ACKNOWLEDGEMENT
With Candor and Pleasure I take opportunity to express my sincere thanks and obligation to my esteemed guide. It is because of his able and mature guidance and co-operation without which it would not have been possible for me to complete my project. It is my pleasant duty to thank all the staff member of the computer center who never hesitated me from time during the project.

Finally, I gratefully acknowledge the support, encouragement & patience of my family, and as always, nothing in my life would be possible without God, Thank You!

(STUDENT NAME)

DECLARATION
I hereby declare that this project work titled CUSTOMER AWARENESS REGARDING MET LIFE INDIA INSURANCE COMPANY IN SHRI NAGAR, J&K is my original work and no part of it has been submitted for any other degree purpose or published in any other from till date.

(STUDENT NAME)

TABLE OF CONTENTS

S. NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

CONTENTS

PAGE NO.

Title of the project.......7 Introduction to topic....8 Literature review.30 Objective of the study......41 Research Methodology........42 Data Analysis and Interpretation........45 Findings of the Study...59 Conclusion and Recommendations.....60 Limitation of the Study.62 Bibliography...........63

11. Questionnaire.64

CUSTOMER AWARENESS REGARDING MET LIFE INDIA INSURANCE COMPANY IN SHRI NAGAR, J&K

CHAPTER 1
INTRODUCTION
Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount of money on the happening of a certain event.

Insurance is a protection against financial loss arising on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. A loss is paid out of the premiums collected from the insuring public and the Insurance Companies act as trustees to the amount collected.

For Example, in a Life Policy, by paying a premium to the Insurer, the family of the insured person receives a fixed compensation on the death of the insured.

Similarly, in car insurance, in the event of the car meeting with an accident, the insured receives the compensation to the extent of damage.

It is a system by which the losses suffered by a few are spread over many, exposed to similar risks. Insurance companies also earn investment profits, because they have the use of the premium money from the time they receive it until the time they need it to pay claims. This money is called the float. When the investments of float are successful they may earn large profits, even if the insurance company pays out in claims every penny received as premiums. In fact, most insurance companies pay out more money than they receive in premiums. The excess amount that they pay to policyholders is the cost of float. An insurance company will profit if they invest the money at a greater return than their cost of float.

An insurance contract or policy will set out in detail the exact circumstances under which a benefit payment will be made and the amount of the premiums. 8

Classification of insurance The insurance industry in India can broadly classify in two parts. They are. 1) Life insurance. 2) Non-life (general) insurance.

1) Life insurance: Life insurance can be defined as life insurance provides a sum of money if the person who is insured dies while the policy is in effect. 2) Non-life (general) Insurance: Triton insurance co. ltd was the first general insurance company to be established in India in 1850, whose shares were mainly held by the British. The first general insurance company to be set up by an Indian was Indian mercantile insurance co. Ltd., which was stabilized in 1907. There emerged many a player on the Indian scene thereafter. The general insurance business was nationalized after the promulgation of General Insurance Corporation (GIC) OF India undertook the post-nationalization general insurance business.

WHY INSURANCE?
Insurance is desired to safeguard oneself and ones family against Possible losses on account of risks and perils it provides financial Compensation for the losses suffered due to the happening of any unforeseen event.

By taking life insurance a person can have peace of mind and need not worry about the financial consequences in case of any Untimely death.

Certain insurance contracts are also made compulsory by legislation. for examples, motor vehicles act 1988, stipulates that a person driving a vehicle in public place should have a 9

valid insurance pertains to the environmental protection act, wherein a person using or carrying hazardous substance (as defined in the act) must hold a valid public liability (act) policy.

WHO PROVIDE INSURANCE?

In India, insurance protection is made available through public sector insurance companies, namely, life insurance Corporation of India (LIC) and other private companies like- ICICI prudential, HDFC allianz bajaj, birla sun life, kotak mahindra etc.

HOW TO GET INSURANCE?

The simplest procedure to obtain insurance is: o Approach the insurance company directly. o Through insurance agent of the concerned companies. o Intermediaries.

WHAT IS THE OTHER ALTERNATIVE TO INSURANCE?

One alternative to insurance is to provide self-insurance i.e. the individual has to create a fund to meet risk exigencies.

Specified trust has also tried to provide insurance by a scheme of self- insurance. However, these are not very popular. The postal insurance coverage to all people.

There are many financial instruments, which advocate savings and provide future returns at specific intervals such as the provident fund and pension plans. However, none of these provide for life coverage.

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WHAT ARE THE OTHER BENEFITS OF TAKING INSURANCE?

1. Tax relief:
a. Under section 80C of income tax act, a portion of premiums paid for life insurance policies are deducted from tax liability. Similarly, exempted from premiums.

b. Money paid as claim including bonus under a life policy is exempted from payment of Income tax.

Encourage Savings: An Insurance scheme encourages thrift among individuals. It inculcates the habit of saving compulsorily, unlike other saving instrument, wherein the saved money can be easily withdrawn. 1. The beneficiaries to an insurance claim amount are protected from the claims of creditors by affecting a valid assignment. 2. For a policy taken under the MWP Act 1874, (Married womens property act), a trust is created for wife and children as beneficiaries. 3. Life Policies are accepted as security for a loan. They can also be surrendered for meeting unexpected emergencies. 4. Based on the concept of sharing of losses, the society will benefit as catastrophic losses are spread globally

1.1 GROWTH AND ORIGIN OF INSURANCE SECTOR.

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.

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A higher premium was charged for Indian lives than the non-Indian lives (considering to be more riskier for coverage).

Oriental life Insurance Company was incorporated at Calcutta in 1818, followed by Bombay Life Assurance Company in 1823 and Triton Insurance Company for General Insurance in 1850. By 1938 there were 176 insurance companies. Insurance regulation formally began in India through the passing of two acts the Life Insurance companies Act of 1912 and The Provident Fund Act of 1912. However the first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict state control over insurance business in the country. The business of India Insurance grew at a faster place as competition amongst the Indian companies intensified. The decision of nationalization of life insurance business took place in 1956 when 245 Indian and foreign insurance provident societies were first merged and then nationalized. It paved the way towards the establishment of one nationalized monopoly corporation called Life Insurance Corporation (LIC). Nationalization was

justified on the grounds that it would create the much needed funds for rapid industrialization and self-reliance in heavy industries. General Insurance followed suit and 1968; The Insurance Act was amended to allow for social control over the general insurance business. Subsequently in 1973, non-life insurance business was nationalized and the General Insurance Business (Nationalization) Act, 1972 was promulgated. Till end of FY 19992000, two state-run insurance companies, namely, Life Insurance Corporation (LIC) and General Insurance Corporation (GIC) were the monopoly insurance providers in India. Under GIC there were four subsidiaries National Insurance Company Ltd. 12

Oriental Insurance Company Ltd. New India Assurance Company Ltd. United India Assurance Company Ltd. In fiscal 2000-01, the Indian federal government lifted all entry restrictions for private sector investors. Foreign investment insurance market was also allowed with 26 percent cap. GIC was converted into India's national reinsure from December, 2000 .All the subsidiaries working under the GIC umbrella were restructured as independent insurance companies.

1.2. A Brief history of the Insurance Sector

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. One of the important milestones in the life insurance in India is; 1912: The Indian Life Assurance

For over 50 years, life insurance in India was defined and driven by only one companythe Life Insurance Corporation of India (LIC). With the Insurance Regulatory and Development Authority (IRDA) Bill 1999 paving the way for entry of private companies into both life and general sectors there was bound to be new-found excitement- and new success stories. Today, just three years since their entry, their cumulative share has crossed 13% (source: IRDA), far exceeding expectations. Clearly insurance is on a growth path.

The percentage of premium income to GDP which was just 2.3% in 2000-01 rose to 3.3% in 2002-03; and life insurance has emerged as the dominant contributor to this growth. The industry presented a huge opportunity. Life insurance penetration, for instance, was at an abysmal 22% of the insurable population. However, private players have had to rise to many challenges. They were faced with attitudinal barriers towards the category and the perception that insurance was only a tax saving tool. Insurance per se had lost it basic 13

rationale: protection. It wasnt surprising then that its potential lay frozen and unexploited. The challenge for private insurance players was to change the established category driver and get customers to evaluate life insurance as an investment-cumprotection tool.

Life Insurance sector is one of the key areas where enormous business potential exists. In India currently the life insurance premium as a percentage of GDP is 1.3 per cent against 5.2 per cent in the US, but in the liberalized scenario, the life insurance premiums were projected to grow at around 18% to 20% from Rs 215 billion in 1998- 99 to Rs 592 billion in 2004-05 and to Rs 1450 billion by 2009-10. Corporate non-life premium was projected to grow from Rs 84 billion in 1998-99 to Rs 386 billion in 200910 and personal line non-life from Rs 4 billion to Rs 51 billion.

1.3. Brief Review of Scenario Insurance

Insurance in India started without any Regulation in Nineteenth century. It was story of a typical colonial era. A few British companies dominated The market mostly in large urban centers. Insurance was nationalized mainly on 3 counts First, Indian lives were not insured. Second, even if they were insured, they were treated as substandard lives and extra premium was charged. Third, there were gross irregularities in the functioning of Life insurance was nationalized in the year 1956, and then general insurance was nationalized in the year 1972. In 1999, the private insurance companies were allowed back again into insurance sector with maximum cap of 26 percent foreign holding. 1818 The British introduce to India, with the establishment of the Oriental Life Insurance Company in Calcutta. 1850 Non life insurance debuts, with Triton Insurance Company. 1870 Bombay Mutual life Assurance Society is the first Indian-owned life insurer 1907 Indian mercantile Insurance is the first Indian non-life insurer. 1912 The Indian life assurance companies act enacted to regulate the life insurance business. 14

 1938 The insurance act, which forms the basis for most current insurance laws, replaces earlier act. 1956 Life insurance nationalized, government takes over 245 Indian and foreign insurers and provident societies. 1956 Government sets up LIC 1972 Non life insurance nationalized, GIC set up. 1993 Malhotra committee, headed by former RBI governor R.N.Malhotra, set up to draw up a blue print for insurance sector reforms. 1994 Malhotra Committee recommends re-entry of private players, autonomy at PSU insurers. 1997 Insurance regulator IRDA (Insurance Regulatory and Development Authority) set up. 2000 IRDA starts giving licensed to private insurers 2001 ICICI Prudential Life Insurance came into the market

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1.4 LIST OF LIFE INSURANCE COMPANY TILL DATE

S. No.

Registration Number

Date of Reg. 23.10.2000

Name of the Company

1.

101

HDFC standard Life Insurance Company Ltd

2.

104

15.11.2000

Max New York Life Insurance Co. Ltd.

3.

105

24.11.2000

ICICI Prudential Life Insurance Company Ltd.

4.

107

10.01.2001

Om Kotak Mahindra Life Insurance Co. Ltd.

5.

109

31.01.2000

Birla Sum Life Insurance Company Ltd.

6.

110

12.02.2001

Tata AIG Life Insurance Company: td.

7.

111

30.03.2001

SBI Life Insurance Company Limited

8.

114

02.08.2001

Ing Vysya Life Insurance Company Private Limited

9.

116

03.08.2001

Allianz Bajaj Life Insurance Company Ltd.

10.

117

06.08.2001

MetLife India Insurance Company Pvt. Ltd.

11.

121

03.01.2002

AMP SANMAR Assurance Company Ltd.

12.

122

14.05.2002

Aviva Life Insurance Co. India Pvt. Ltd.

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1.5 LIFE ASSURANCE OFFERS

The term ordinary life assurance in used to describe a particular style of doing business and is what many people will recognize as being life assurance. The other style is industrial (home service) life assurance, which relates to smaller values and normally involves collection of the premiums from the home of the assured person.

TERM ASSURANCE
This is simplest and oldest form of assurance and provides for payment of the sum assured on death, provided death occurs within a specified term. Should the life assured survive to the end of the term then the cover ceases and no money is payable.

WHOLE-LIFE ASSURANCE
The sum assured is payable on the death of the assured whenever it occurs. Premiums are payable either throughout the life of the assured or, more normally, until retirement of the assured at age 60 or 65. Even if premiums cease at, say age 60 the policy is still in force, and should the person die at age 75 the policy would provide the benefits for his beneficiaries.

ENDOWMENT ASSURANCE
The sum assured is payable in the event of death within a specified period of between 10 and 30 years. However, if the life assured survives until he end of this period (until the maturity date), the sum assured will also be paid.

GROUP LIFE ASSURANCES

Employers sometimes arrange special terms for life assurance for their employees, with the sum assured being payable in the event of death of an employee during his term of service with the employer. Membership of the scheme is open to al employees working on the inception date, or the anniversary date in future years.

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KEY PERSON INSURANCE

Key person insurance is a relatively recent form of cover taken out by a company on the life of an employee who is vital to the continued profitability of the business. An example would be a marketing executive who has valuable contacts in overseas countries or he ideas person in a manufacturing company.

It is difficult to an access the sum assured needed in such circumstances, and careful financial underwriting is required. However, the company will be able to affect cover for: loss of profits; and The costs of finding, securing and training a successor. The most suitable type of contract is a term assurance, although whole- life policies are sometimes used. In addition to life assurance, key person permanent health insurance and critical illness cover is also available.

INSURED PENSION SCHEMES

There are over 11 million people in pension a life assurance schemes, or benefiting from them, in the United Kingdom.

These schemes provide a variety of benefits for members, but their main aim is to ensure that some form of pension is available on retirement. Life assurance companies perform a vital role in running such pensions schemes. Those constructing a scheme may approach a company to: organize the whole scheme, including installation and documentation, receipt of premium contributions, investment of the funds and administration of the pensions; manage the fund of a pension scheme; or Provide life assurance benefits for members and their widow (er) s who dies before retirement.

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ANNUITIES
An annuity is a method by which a person can receive a yearly sum in return for the payment to an insurance company of a sum of money. This is not life assurance as we have described it, but it is dealt with by life assurance companies and is based on actuarial principle.

INVESTMENTS
We have already identified the life assurance industry as being of considerable size by considering the number of policies in force and value of premiums paid each year. These vast amounts of money are held by companies to meet future liabilities and are termed life assurance funds.

These funds do not lay dormant waiting for claims to come in; they are invested to provide income for the companies and so assist policyholders and shareholders. Not only do these two groups benefits, but the country as a whole benefits.

Successful financial planning is like a three-legged stool. One leg is investment planning, one is estate planning and the third is insurance planning. Take one leg away, and your ability to achieve your financial goals is likely to be severely threatened.

So, why is having the right level of insurance so important? Insurance is basically a sharing advice. The losses to assets resulting from natural calamities like fire, earthquake, accidents, etc. are met out of the common pool contributed by large number of persons who are exposed to similar risks. This contribution of many is used to pay the losses suffered by unfortunate few. However the basic principle is that loss should occur as a result of natural calamities or unexpected events, which are beyond the human control. Secondly insured person should not make any gain out of insurance. It is natural to think of insurance of physical assets such as motor car insurance or fire insurance but often we forget that creator of all these assets is the human being whose efforts have gone a long way in building up the assets. In that 19

sense, human life is unique income-generating assets. Unlike the physical assets, which decrease in value with passage of time, the individual becomes more experienced and more matured as he advances in age. This raises his earning capacity and purpose of life insurance is to protect the income in the event of his premature death. The individual himself also needs financial security for the old age or on his becoming permanently disabled when his income will stop. Insurance also has an element of saying in certain cases. Life insurance is chiefly a risk management tool, meant to offer financial protection to your dependents in the unfortunate event of your death. If you are adequately insured, your life insurance should enable to your dependents {spouse, children, and parents} to maintain their current life style and pursue their goals---till such time as they are in a position to set up an attractive income stream by themselves. Thats the basic purpose of life insurance. But in India, as the most other developing markets, life insurance has come to represent more than just risk cover. The best selling insurance products in the market double as investment options and offer attractive tax breaks.

The General Insurance Corporation of India

Although efforts were made to maintain an open market for the general insurance industry amending the Insurance Act of 1938 from time to time, malpractice escalated beyond control. Thus, the general insurance industry was nationalized in 1972. The General Insurance Corporation (GIC) was set up as a holding company. It had four subsidiaries: New India, Oriental, United India and the National Insurance companies (collectively known as the NOUN). It was understood that these companies would compete with one another in the market. It did not happen. They were supposed to setup their own investment portfolios. That did not happen either. It began to happen after29 years.

The GIC has a quarter of a million agents. It has more than 2,500 branches, 30million individual and group insurance policies and assets of about USD 1,800 million at market 20

value (at the end of 1999). It has been suggested that the GIC should close 20-25% of its nonviable branches (Patel, 2001). The GIC has so far been the holding company and reinsurer for the state-run insurers. It reinsured about 20% of their business.

Two Committee Reports: One Known, One Unknown Although Indian markets were privatized and opened up to foreign companies in a number of sectors in 1991, insurance remained out of bounds on both counts. The government wanted to proceed with caution. With pressure from the opposition, the government (at the time, dominated by the Congress Party) decided to set up a committee headed by Mr. R. N. Malhotra (the then Governor of the Reserve Bank of India).

Malhotra Committee
Liberalization of the Indian insurance market was recommended in a report released in 1994 by the Malhotra Committee, indicating that the market should be opened for private-sector competition, and ultimately, foreign private-sector competition. It also investigated the level of satisfaction of the customers of the LIC. Curiously, the level of customer satisfaction seemed to be high. The union of the LIC made political capital out of this finding. The following are the purposes of the committee. (a) To suggest the structure of the insurance industry, to assess the strengths and weaknesses of insurance companies in terms of the objectives of creating an efficient and viable insurance industry, to have wide coverage of insurance services, to have a variety of insurance products with a high quality service, and to develop an effective instrument for mobilization of financial resources for development. (b) To make recommendations for changing the structure of the insurance industry, for changing the general policy framework etc. (c) To take specific suggestions regarding LIC and GIC with a view to improve the functioning ofLIC and GIC. (d) To make recommendations on regulation and supervision of the insurance sector in India. (e) To make recommendations on the role and functioning of surveyors, intermediaries like agents etc. in the insurance sector. (f) To make

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recommendations on any other matter which are relevant for development of the insurance industry in India? The committee made a number of important and far-reaching recommendations. (a) The LIC should be selective in the recruitment of LIC agents. Train these people after the identification of training needs. (b) The committee suggested that the Federation of Insurance Institute, Mumbai should start new courses and diploma courses for intermediaries of the insurance sector. (c) The LIC should use an MBA specialized in Marketing (a similar suggestion for the GIC subsidiaries).(c) It suggested that settlement of claims were to be done within a specific time frame without delay. (d) The committee has several recommendations on product pricing, vigilance, systems and procedures, improving customer service and use of technology.(f) It also made a number of recommendations to alter the existing structure of the LIC and the GIC. (g) The committee insisted that the insurance companies should pay special attention to the rural insurance business. (h) In the case of liberalization of the insurance sector the committee made several recommendations, including entry to new players and the minimum capital level requirements for such new players should be Rs. 100 crores(about USD 24 million). However, a lower capital requirement could be considered for a co-operative sectors' entry in the insurance business. (i) The committee suggested some norms relating to promoters equity and equity capital by foreign companies, etc.

Mukherjee Committee
Immediately after the publication of the Malhotra Committee Report, a new committee (called the Mukherjee Committee) was set up to make concrete plans for the requirements of the newly formed insurance companies. Recommendations of the Mukherjee Committee were never made public. But, from the information that filtered out it became clear that the committee recommended the inclusion of certain ratios in insurance company balance sheets to ensure transparency in accounting. But the Finance Minister objected. He argued (probably on the advice of some of the potential entrants) that it could affect the prospects of a developing insurance company.

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Insurance Regulatory Act (1999)

After the report of the Malhotra Committee came out, changes in the insurance industry appeared imminent. Unfortunately, instability in Central Government, changes in insurance regulation could not pass through the parliament.

The dramatic climax came in 1999. On March 16, 1999, the Indian Cabinet approved an Insurance Regulatory Authority (IRA) Bill that was designed to liberalize the insurance sector. The bill was awaiting ratification by the Indian Parliament.

However, the BJP Government fell in April 1999. The deregulation was put on hold once again.

An election was held in late 1999. A new BJP-led government came to power. On December 7, 1999, the new government passed the Insurance Regulatory and Development Authority (IRDA) Act. This Act repealed the monopoly conferred to the Life Insurance Corporation in 1956 and to the General Insurance Corporation in 1972.The authority created by the Act is now called IRDA. It has ten members. New licenses are being given to private companies (see below). IRDA has separated out life, non-life and reinsurance insurance businesses. Therefore, a company has to have separate licenses for each line of business. Each license has its own capital requirements (around USD24 million for life or non-life and USD48 million for reinsurance).

Some Details of the IRDA Bill

On July 14, 2000, the Chairman of the IRDA, Mr. N. Rangachari set forth a set of regulations in an extraordinary issue of the Indian Gazette that detail of the regulation.

Regulations

The first covers the Insurance Advisory Committee that sets out the rules and regulation. 23

The second stipulates that the "Appointed Actuary" has to be a Fellow of the Actuarial Society of India. Given that there has been a dearth of actuaries in India with the qualification of a Fellow of the Actuarial Society of India, this becomes a requirement of tall order. As a result, some companies have not been able to attract a qualified Appointed Actuary (Dasgupta, 2001). The IRDA is also in the process of replacing the Actuarial Society of India by a newly formed institution to be called the Chartered Institute of Indian Actuaries (modeled after the Institute of Actuaries of

London).Curiously, for life insurers the Appointed Actuary has to be an internal company employee, but he or she may be an external consultant if the company happens to be anon-life insurance company.

Third, the Appointed Actuary would be responsible for reporting to the IRDA a detailed account of the company.

Fourth, insurance agents should have at least a high school diploma along with training of 100 hours from a recognized institution. More than a dozen institutions have been recognized by the IRDA for training insurance agents

Fifth, the IRDA has set up strict guidelines on asset and liability management of the insurance companies along with solvency margin requirements. Initial margins are set high (compared with developed countries). The margins vary with the lines of business (for example, fire insurance has a lower margin than aviation insurance).

Sixth the disclosure requirements have been kept rather vague. This has been done despite the recommendations to the contrary by the Mukherjee Committee recommendations.

Seventh, all the insurers are forced to provide some coverage for the rural sector.

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(1) In respect of a life insurer, (a) five percent in the first financial year; (b) seven percent in the second financial year; (c) ten percent in the third financial year; (d) twelve percent in the fourth financial year; (e) fifteen percent in the fifth year (of total policies written direct in that year). (2) In respect of a general insurer, (a) two percent in the first financial year; (b) three percent in the second financial year; (c) five percent thereafter (of total gross premium income written direct in that year).

Three days before the deadline that the IRDA had set upon itself (October 25, 2000), it issued three companies with license papers:

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COMPANY OVERVIEW

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 Kashmvvvvir 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 inforce), 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. 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.

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Corporate Social Responsibility:

MetLife has always been committed to 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

METLIFE HISTORY
For 140 years, MetLife has been insuring the lives of the people who depend on us. Our success is based on our long history of social responsibility, strong leadership, sound investments, and innovative products and services

PRODUCT OF THE COMPANY:

Child Plan o Met Bhavishya o Met Junior Endowment o Met Junior Money Back

Retirement Plain o Met Pension-Par

Saving Plan o Met Sukh o Met Suvidha 27

o Met Saral o Met 100

Protection Plan o Met Suraksha o Met Suraksha TROP o Met Suraksha Plus o Met Mortgage Protector Plus

Rural Plan o Met Vishwas o Met Suvidha-Rural o Met Grameen Ashray

Investment Plan o Met Smart Platinum o Met Smart One o Met Easy Super

Health Plan o Met Health Care

Monthly Income Plan o Met Monthly Income Plan o Met Monthly Income Plan 7 Pay

WHY CHOOSE METLIFE?

We take great pride in the financial solutions that we offer. But thats not all. Your requirements and comfort are always our priority. That is why our interactions are distinguished by our expertise, compassion and sensitivity.

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The MetLife companies are one of the worlds largest and most respected financial services organizations. For over 140 years, we've been helping people build financial freedom. For some, this means protection for their families. For others, it means wealth optimization or preservation. Combined with our innovation, this makes the MetLife companies truly formidable players in the Life Insurance industry.

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CHAPTER - 2
LITERATURE REVIEW
Insurance sector is a major contributor to the financial savings of the household sector in the country, which are further channelized into various investment avenues. As per the Annual Report 2003-04 of IRDA, contribution of insurance funds to the financial savings was 14.9 per cent in 2003-04, viz 2.2 per cent of the GDP at current market price. The premium underwritten has grown from Rs 45,677.57 crore in 2000-01 to Rs.83, 645.11 crore in 2003-04. After liberalization of insurance sector, the private insurers have introduced innovative product and tailor made products which are absolutely sit to rural population. Efforts at increasing consumer awareness and putting the regulatory framework for protection of policyholders interest have been made both the industry and regulatory level. Global market conditions have also resulted in driving down premium rates/charges in respect of certain products and in improving the quality of services offered by the insurer. Finally, insurance sector has been penetrating in India, thus the proposed seminar has quite relevant to the society. Indian insurance is on the threshold of deep and fundamental changes. Floodgates of competition opened up by the privatization of insurance industry did throw a challenge to the well-protected nationalized sector and it seems they have picked up the gauntlet. GIC, both is trying to reposition them by having re-engineering done on the structure and operations of their respective organizations. It must be emphasized that the opening of the insurance market is far from a bad thing for nationalized insurers. With a strong presence, a wide network and considerable brand equity, they are in a good position to tap the very same segments profitably, while improving their product and service offerings. The Indian company should Leverage information technology to service large numbers of customers efficiently and bring down overheads. Technology can complement or supplement distribution channels costeffectively. It can also help improve customer service levels considerably.

30

Besides this, other areas can be focused to grow and survive in the Indian Market Understanding Customer needs: Use data warehousing, management and mining to gauge the profitability and potential of various customer and product segments and ensure effective cross selling. Understanding the customer better will allow insurance companies to design appropriate and-customized products, determine pricing correctly and increase profitability. High-level Training and Development: Ensure high levels of training and development not just for staff but also for agents and distribution organizations. Existing organizations will have to train staff for better service and flexibility, while all companies will have to train employees to cope with new products and an intensive use of information technology. Alliance&Tieup: The importance of alliances and tie-ups means that companies will have to integrate related but separate providers into their systems to ensure seamless delivery. Agent Relationship: Build strong relationships with intermediaries such as agents. Market Segmentation: They must segment the market carefully to arrive at the appropriate products and pricing and should cater the needs of every individual. Revamped Marketing Strategy: Worldwide, insurance products move along a continuum from pure service products to pure commodity products then they could be sold through the medical shops, groceries, novelty stores etc. Once commodization, popularity and awareness of the products are attained then the products can move to remote channels such as the telephone or direct mail. In the UK for example, retailer Marks & Spencer now sells insurance products. At this point, buyers look for low price. Brand loyalty could shift from the insurer to the seller. Trust and Faith: Being government owned subsidiary, people of India have real faith and are confident in parting their valuable savings with Nationalized Insurance 31

Companies. So, there is a big opportunity for the government companies to regain their goodwill and reproduce their policies in the interest of the general public.

According to D.Jame in 2003: A major issue is that of product innovation for rural contexts. Non-life general insurance has products to suit crop, agricultural equipment, weather risks and so forth. However, many of these products are on an experimental basis and not pure commercial products. Rural India is a target market for many players in the financial sector, and insurance companies are no exception. Public sector insurance companies boast that they have already captured this area; the extent of penetration of the insurance majors into rural India is not yet clear. Most of the policies are said to help the rural customers but there is still no improvement in the rural situation. So, in this area there is a need of making the policies which are realistic in the rural conditions and are made to meet the needs of the customers in rural area.

According to M.Jean in 2005: Indian general insurance companies in government sector are providing better policies to the customers. Many of the policies are very popular among the customers. Policies like Raj Rajeshwari Mahila Kalyan Yojana Policy, Bhagyashree Child welfare Policy, National swasthya bima policy are a big fund of money generation for insurance companies. These policies are fully supported by the government. In different states of the country various type of policies are popular and they have a different percent of share in overall income of Indian general insurance sector. All of these policies are successfully implemented in all the states of the country. These policies are specially designed to provide risk assurance to the policy holders. In union territories also these policies are successfully implemented and working with a good profit. These policies provide a helping hand to the person who faces problem due to some unforeseen event or accident. Going through the marketing aspect the insurance company has to prepare the product in determining its success in the market. 32

According to Soureli in 2004: Questions whether quality is having as much impact in the financial services sector as the evidence of use of quality management techniques in the UK suggests. Explores the context within which quality is finding a place in financial services, and presents the findings of a postal questionnaire survey concerned with the extent of usage and the nature of the quality initiatives in the financial services sector.

According to Elena Kalotychoua and Sotiris IN 2007: The present study delves into the bankinsurance phenomenon in Greece. The paper explores the market-based practices surfacing through the bankinsurance interface and delineates the possible theoretical corporate structures. A review of the various financial ventures in the domestic market is provided aiming to unveil corporate patterns both in a cross-venture and time series framework. As a result of this survey, the existence of de jure limits versus de facto boundaries, as expanded by loopholes and avoidance activities, is established. The "traditional" subsidiary model is complemented by a number of multiventures as banks make inroads into the insurance business. The latter is associated with the presence of multinational firms and foreign direct investment in the region. The analysis is further extended by examining the drivers, motives and operational issues pertinent to these financial conglomerates.

According to Prithviraj Dasgupta and Kasturi Sengupta IN 2002:

With the advent of the Internet, online processes are replacing conventional models in our society. The greatest impact in online technology has been achieved by e-commerce. Ecommerce is attractive both to buyers and sellers as it reduces search costs for buyers and inventory costs for sellers. In this paper we investigate the impact of e-commerce on the insurance industry in India. The recent growth of Internet infrastructure and introduction of economic reforms in the insurance sector have opened up the monopolistic Indian insurance market to competition from foreign alliances. We study the evolving scenario 33

in the insurance industry in India and identify the features of online insurance that improve the conventional insurance model and thus, makes it more attractive for the Indian insurance industry to go online.

Health Policy Challenges for India: Private Health Insurance and Lessons from the International Experienceby Ajay Mahal
Over the last few decades, the Indian population has experienced great advances in its health situation. For instance, life expectancy at birth increased from 50 years in 1970 to an estimated 62 years in 1995 and is possibly even greater now. Infant mortality rates have fallen as well, from 137 per 1,000 live births in 1970 to 69 per 1,000 live births in 1991 (World Bank 1995). These are substantial improvements, but much remains to be done, relative to some its neighbors as well in terms of reducing differences in performance across states and socioeconomic groups. For instance, China has done much better, with its life expectancy at birth hovering around 70 years, and Indias neighbour, Sri Lanka, has a life expectancy of nearly 73 years (World Bank 1997). Both countries have much lower infant mortality rates as well, and in the case of Sri Lanka, less than one-quarter that of India. Again, Kerala has infant mortality rates below those in China, but states such as Madhya Pradesh, Orissa and Rajasthan have infant mortality rates of well over 100 per 1,000 live births in rural areas (Dreze and Sen 1995; Mahal, Srivastava and Sanan 2000). Similarly, in rural India, the infant mortality rates among the top two income quintiles are nearly 34 - 50 per cent lower than the rates reported for the bottom two quintiles.1 Substantial differences in life expectancies at birth are present across states and socio-economic groupings (Dreze and Sen 1995). Another issue of concern is the growing prevalence of chronic illness in the Indian population, such as obesity, heart disease, diabetes, hypertension and the like. This has partly to do with changing dietary habits, from coarse grain to energy rich diets of meat, milk products, and sugar. It has also to do with an urban population growing at an average annual rate of growth of 3.2 per cent and sedentary lifestyles often characteristic. Authors estimate based on NCAER survey data.

34

(National Institute of Urban Affairs (NIUA) 2000, Popkin, Horton, Kim, Mahal and Shuigao 2001).
Thus, the prevalence of diabetes rates were nearly three times highe among urban residents than among rural residents in 1995-96, the prevalence of heart disease 70 per cent higher, and the prevalence of hypertension more than double. With the urban population expected to grow further in the future, the emergence of chronic illnesses will have significant consequences on the financial costs of providing health care, as many illnesses are extremely expensive to treat (Mahal 2000a).

Bull World Health Organ vol.80 no.8 Genebra Aug. 2002:

The findings have implications for community-based health insurance schemes in India and elsewhere. Such schemes can protect poor households against the uncertain risk of medical expenses. They can be implemented in areas where institutional capacity is too weak to organize nationwide risk-pooling. Such schemes can cover poor people, including people and households below the poverty line. A trade off exists between maintaining the scheme's financial viability and protecting members against catastrophic expenditures. To facilitate reimbursement, administration, particularly processing of claims, should happen near claimants. Fine-tuning the design of a scheme is an ongoing process a system of monitoring and evaluation is vital.
Economic Reforms in India since 1991: Has Gradualism Worked? by Montek S. * Ahluwalia

India was a latecomer to economic reforms, embarking on the process in earnest only in 1991, in the wake of an exceptionally severe balance of payments crisis. The need for a policy shift had become evident much earlier, as many countries in east Asia achieved high growth and poverty reduction through policies which emphasized greater export orientation and encouragement of the private sector. India took some steps in this direction in the 1980s, but it was not until 1991 that the government signaled a systemic shift to a more open economy with greater reliance upon market forces, a larger role for

35

the private sector including foreign investment, and a restructuring of the role of government.

Indias economic performance in the post-reforms period has many positive features. The average growth rate in the ten year period from 1992-93 to 2001-02 was around 6.0 percent, as shown in Table 1, which puts India among the fastest growing developing countries in the 1990s. This growth record is only slightly better than the annual average of 5.7 percent in the 1980s, but it can be argued that the 1980s growth was unsustainable, fuelled by a buildup of external debt which culminated in the crisis of 1991. In sharp contrast, growth in the 1990s was accompanied by remarkable external stability despite the east Asian crisis. Poverty also declined significantly in the post-reform period, and at a faster rate than in the 1980s according to some studies (as Ravallion and Datt discuss in this issue).

However, the ten-year average growth performance hides the fact that while the economy grew at an impressive 6.7 percent in the first five years after the reforms, it slowed down to 5.4 percent in the next five years. India remained among the fastest growing developing countries in the second sub-period because other developing countries also slowed down after the east Asian crisis, but the annual growth of 5.4 percent was much below the target of 7.5 percent which the government had set for the period. Inevitably, this has led to some questioning about the effectiveness of the reforms.

Financial Sector Reforms in India: Policies and Performance Analysis By Rakesh

Mohan:
As the economy grows and becomes more sophisticated, the banking sector has to develop pari pasu in a manner that it supports and stimulates such growth. With increasing global integration, the Indian banking system and financial system has as a whole had to be strengthened so as to be able to compete. India has had more than a decade of financial sector reforms during which there has been substantial transformation and liberalisation of the whole financial system. It is, therefore, an appropriate time to take stock and assess the efficacy of our approach. It is useful to evaluate how the 36

financial system has performed in an objective quantitative manner. This is important because Indias path of reforms has been different from most other emerging market economies: it has been a measured, gradual, cautious, and steady process, devoid of many flourishes that could be observed in other countries. Until the beginning of the 1990s, the state of the financial sector in India could be described as a classic example of financial repression a la MacKinnon and Shaw. The sector was characterised, inter alia, by administered interest rates, large pre-emption of resources by the authorities and extensive micro-regulations directing the major portion of the flow of funds to and from financial intermediaries. While the true health of financial intermediaries, most of them public sector entities, was masked by relatively opaque accounting norms and limited disclosure, there were general concerns about their viability. Insurance companies both life and non-life - were all publicly owned and offered very little product choice. In the securities market, new equity issues were governed by a plethora of complex regulations and extensive restrictions. There was very little transparency and depth in the secondary market trading of such securities. Interest rates on government securities, the predominant segment of fixed-income securities, were decided through administered fiat. The market for such securities was a captive one where the players were mainly financial intermediaries, who had to invest in government securities to fulfill high statutory reserve requirements. There was little depth in the foreign exchange market as most such transactions were governed by inflexible and low limits and also prior approval requirements. Compartmentalization of activities of different types of financial intermediaries eliminated the scope for competition among existing financial intermediaries. In addition, strong entry barriers thwarted competition from new entrants.

The end result was low levels of competition, efficiency and productivity in the financial sector, on the one hand, and severe credit constraints for the productive entities, on the other, especially for those in the private sector. The other major drawback of this regime was the scant attention that was placed on the financial health of the intermediaries. Their capitalization levels were low. The lack of commercial considerations in credit planning and weak recovery culture resulted in large accumulation of non-performing loans. This

37

had no impact on the confidence of depositors, however, because of government ownership of banks and financial intermediaries.

N Ravichandran (Professor, IIMA): The economic reforms initiated by the Government of India roughly about a decade ago have changed the landscape of several sectors of the Indian economy. The Indian banking sector is no exception. This sector is going through major changes as a consequence of economic reforms. The changes affect the ownership pattern of banks, availability of funds, the cost of funds as well as opportunities to earn, range of services (fee-based andfund-based), and management of priority sector lending.

As a consequence of liberalization in interest rates, banks are operating on reduced spread. Development financial institutions would have a lesser impact on the Indian economy. Consumerism is here to stay. Non-banking products like insurance would be a tremendous opportunity. The economic reforms have also generated new and powerful customers (huge Indian middle class) and new mix of players (public sector units, private banks, and foreign banks). The emerging competition has generated new expectations from the existing and the new customers. There is an urgent need to introduce new products. Existing products need to be delivered in an innovative and cost-effective way by taking full advantage of emerging technologies.

The new rules of competition require recognition of the importance of consumers and the necessity to address the needs through innovative products supported by new technology. As a consequence of competition, the managerial challenges include market segmentation, product positioning, innovative delivery channels, cross-selling, etc. At an organization level, elaborate systems need to be evolved to manage, assess, and contain risk (including portfolio, client, and exchange rate).

The banks may have to reorient their resources in the form of reorganized branch networks, reduced manpower, dramatic reduction in establishment cost, honing the skills of the staff, and innovative ways of attracting talented managerial pool.The Government of India and the Reserve Bank of India (RBI) on their part would strengthen the existing 38

norms in terms of governing and directing the functioning of these banks. Banks needs to strengthen their audit function. They would be evaluated based on their performance in the market place. It is in this context that we have invited the chief executive officers of Indian banks to respond to the issues mentioned earlier.

K V Kamath (MD and CEO, ICICI Bank): It is said that the banking sector mirrors the larger economy its linkages to all sectors make it a proxy for what is happening in the economy as a whole. Indeed, the Indian banking sector today has the same sense of excitement and opportunity that is evident in the Indian economy. The fundamental structural changes in recent years have taught us many lessons. A combination of developments arising from technological advancements and a liberalized marketplace

Disintermediation, blurring of traditional roles and boundaries, emphasis on shareholder value creation.

has led to a transformation of the banking sector. The ongoing developments in Indian industry and government and the integration of India with the global markets also offer myriad opportunities to the banking sector. Companies and governments are increasingly seeking high-quality banking services to improve their own operating efficiency. Companies seek to offer better customer service and maximize shareholder returns and governments seek to improve the quality of public services. The internationalization of India offers banks the opportunity to service cross-border needs of Indian companies and India-linked needs of multinationals. The growing Indian diaspora, with its strong home country linkages, seeks a unique combination of Indian ethnicity and global standards that offers a valuable niche opportunity for Indian banks. The biggest opportunity for the Indian banking system today is the Indian consumer. Demographic shifts in terms of income levels and cultural shifts in terms of lifestyle aspirations are changing the profile of the Indian consumer. This is and will be a key driver of economic growth going forward. The Indian consumer now seeks to fulfil his lifestyle aspirations at a younger age with an optimal combination of equity and debt to finance consumption and asset 39

creation. This is leading to a growing demand for competitive, sophisticated retail banking services. The consumer represents a market for a wide range of products and services he needs a mortgage to finance his house; an auto loan for his car; a credit card for ongoing purchases; a bank account; a long-term investment plan to finance his childs higher education; a pension plan for his retirement; a life insurance policy the possibilities are endless. And, this consumer does not live just in Indias top ten cities.

40

CHAPTER 3
OBJECTIVES OF STUDY

The main objectives were:

1. To know the customer awareness about METLIFE insurance company. 2. To know the motive of buying an insurance policy. 3. To know the customer preference for different insurance company. 4. Customer opinion about public and private sector.

41

CHAPTER 4
RESERCH METHODOLOGY

Introduction and Meaning

Research is a careful investigation or inquiry especially through search for new facts in branch of knowledge or to establish relationship between effect and cause. And especially marketing research that helps in problem solving in the marketing field, demands critical analysis of the problems that are latent or potential in nature. Research methodology, is considered a kin to clinical operations where in-depth diagnosis, prescription and medicines are applied. Research methodology is the sketch and plans to define a problem, appropriating research design, designing instrument for collection of data, and data interpretations etc. In general, Research problem is the one that requires a researcher to find out the best solution for the given problem that is to find out the course of action, the action the objectives can be obtained optimally in the context of a given environment.

Research Design
The research design of this survey will be considered as descriptive and explorative research as the survey is directed towards eliciting public opinion towards METLIFE INDIA INSURANCE. A well-structured questionnaire qualifying objectivity of the survey is used to collect data from the respondents.

Sampling Design
Universe for this project is Shrinagar City.

Sample size
In view of the constraints, sample size was restrained to 100. 42

Sampling unit
Any person whether holding or not holding life insurance policy, in the age slab of 20 to 60 years and residing in the Shrinagar city.

Data Collection
To accomplish the objectivity of this survey, primary data will be needed; however, secondary data of the MET LIFE and other companies will be used for literature review and to have general inferences. To elicit data from the survey universe, Shrinagarstructured questionnaire was administered. The secondary data required will be explored from company information brochures and Internet.

43

CHAPTER 5
DATA ANALYSIS AND INTERPRETATION

Keeping in mind the objectives of the study, the survey was being done and following interpretation were being drawn.

1. Have you heard about Privatization in Life Insurance sector?

TABLE 1 Criteria
Yes No

Frequency
76 24

Percentage
76%
24%

44

Interpretation
Above figures showed that out of 100 respondents, 76 respondents are aware of the private companies present in the insurance sector and rest of the respondents i.e.24 is not aware of private insurance companies.

2. Have you heard about Private insurance company METLIFE India Life?
TABLE 2 Criteria
Yes No

Frequency
74 26

Percentage
74%
26%

[[

45

Interpretation
The above figure depicts that out of 100 respondents, 74 respondents are aware of Met Life India Insurance and rest of the respondents i.e. 26 is not aware of Met Life India Insurance.

3. From where did you come to know about Met Life India Insurance?

TABLE 3 Criteria
Electronic media Print media Agent Others

Frequency
63 18 15 4

Percentage
63%
18% 15% 4%

46

Interpretation
According to above data Electronic Media plays a vital role in the promotion of MetLife India. As 63 of the respondents are aware through Electronic Media, 15 through Agents, 18 through Print Media and 4 through others like friends and relatives.

4. Do you think services provided by Private sector will be better than Public sector companies?

TABLE 4 Criteria
Yes No

Frequency
68 32

Percentage
68% 32%

47

Interpretation
The above figure depicts that 68 of the total respondents agree that private sector was providing better services as compared to the public sector.

5. Do you have any Insurance Policy?

TABLE 5 Criteria
Yes No

Frequency
72 28

Percentage
72% 28%

48

Interpretation
The above evident shows that as most as 72 of the total respondents have insurance policy to cover the risk of life and tax. This shows that most people are interested in buying insurance policy.

6.

From which company do you have Insurance Policy?

TABLE 6 Criteria
LIC ICICI MET LIFE HDFC standard OTHERS

Frequency
52 21
18 6 3

Percentage
52% 21%
18% 6% 3%

49

Interpretation
The above evident shows that out of the total respondents 52 dealing with LIC, which is a public sector insurance company, 18 respondents were dealing with METLIFE India and 21 dealing with ICICI ,and 6 respondents dealing with HDFC ,3 respondents are dealing SBI, TATA AIG and Bajaj Allianz. with other insurance companies which include

7. What according to you are the motives of buying Life Insurance Policy?

TABLE 7 Criteria
TAX SAVING LIFE COVER REGULAR SAVING OTHERS

Frequency
50 28
18 4

Percentage
52% 21%
18% 6%

50

Interpretation
As the above figure showed that most of the respondents buy insurance policy for the purpose of saving tax. 50 respondents are in favor of this. And 28respondents are in favor of life cover and, 18 respondents are in favor of regular saving and four respondents are in favor of other.

8. Do you have any plan to buy Insurance Policy in near future?

TABLE 8 Criteria
Yes No Cant say

Frequency
70 20 10

Percentage
70% 20% 10%

51

Interpretation
As the above figure depicts that mostly respondents are interested to buy insurance policy in the future. 70 of the total respondents are in favor of this and rest 20 respondents dont want any insurance 10 cant say anything.

9. If you have any plan to buy an Insurance Policy, which policy would you prefers?

TABLE 9 Criteria
PROTECTION PLAN CHILDREN PLAN PENSION PLAN OTHERS

Frequency
17 30
45 8

Percentage
17% 30%
45% 8%

52

Interpretation
As the above evident shows that as most as 30 of the total respondents prefer to invest in childrens plan, 45 want to invest in pension plan, 17 in protection plan and rest in others.

10. If you are not taking any insurance policy, please tell us the reasons why?

TABLE 10 Criteria
We could not afford We dont see any benefit with the system No agent approach us Others
20 8 20% 8%

Frequency
62 10

Percentage
62% 10%

53

Interpretation
As the evident shows that out of 100 respondents ,62 respondent could not afford it, 20 says no agent approach us, and nearly 10 of the respondents dont see any benefit with the system, 8 says other reasons.
11. What is Customer Preference for different insurance companies?

TABLE 11 Criteria
METLIFE INDIA INSURANCE HDFC STANDARD LIFE INSURANCE LIC ICICI OTHERS 45 25 5 45% 25% 5%

Frequency
10 15

Percentage
10% 15%

54

Interpretation
The chart show that out of 100 respondents, 15 respondents are better the MET LIFE than other insurance companies, 15 respondents are like the HDFC, 45 respondents are like the LIC, 25 respondents are like ICICI and 5 respondents like the other companies.

55

12.

Do you agree that met life have a good brand value than other companies?

TABLE 12 Criteria
Highly satisfied satisfied intermediate dissatisfied Very dissatisfied

Frequency
18 35 23 15 9

Percentage
18% 35% 23% 15% 9%

56

Interpretation
The chart show that out of 100 respondents 18 are highly satisfied, 35 are satisfied, 23 are average satisfied,15 people are dissatisfied and 9 are highly dissatisfied.

13 which attribute you consider while taking policy from MetLife or other company?

TABLE 13 Criteria
Brand value premium Security of investment services

Frequency
35 21 33 11

Percentage
35% 21% 33% 11%

57

Interpretation
The chart show that out of 100 respondents, 35 respondents says that brand value is the basis of taking insurance and 21 people says that premium is basis for taking insurance and 11 people says they consider services for taking insurance and 33 considered security of investment.

58

CHAPTER 6
FINDINGS OF THE SURVEYS
From the finding of the research it is evident that the most of the people in the Shrinagar are interested to take the pension plan as they are more concerned with their future income then their present when they are working and earning. They are more inclined towards the pension plans to make the life comfortable in their old age and they will be independent and does not want to dependable on the next generation.

People aware about the Life Insurance sector but they know more common players like Life Insurance Corporation (LIC) of India. It is found that less people are aware in the Shrinagar about the MetLife as a service provider company in the insurance sector also. They are aware but MetLife as an insurance provider does not able to create the brand image of insurance company in the Shrinagar region. At the same time it is a good sign for the MetLife that reary 76% people aware that private sector players are also come in the insurance sector. In particular out of these 76% people are aware about the MetLife Company in the insurance sector in Shrinagar. But from the finding it is established that 100% people are aware about the LID as the oldest player.

This clearly comes out of the survey conducted that most of the people come to know about MetLife from the Electronic Media only in Shrinagar. It is evident that MetLife should go for other campaign alternative also to penetrate the Local Market in the Shrinagar. 59

From the research it is evident the most of the time when think about the saving, investment or insurance, the first thing which tax \saving which they will get out of the policy / investment. They people are concerned about the insurance but at the same time they are concerned that they will able to save the tax under sector soc.

It is evident from the findings that people are concerned about the public and private sector but at the same time they are also concerned about. The services they will get in eh return. In Shrinagar it comes out of the study that people thinks that the private sector players like the MetLife will give better service then the LIC or other public / Govt. Sector companies. People in Shrinagar think and experience that private sector players give the better services through their best infrastructure. In Shrinagar it comes out of the study that the brand image of MetLife is intermediate, where the felling and awareness about the LIC is very strong. From the study it is evident that in Shrinagar 35% people are making the decision about the company brands value3 as the main concern.

The future of insurance companies in Shrinagar is very good, because it is evident from the studies that 70% of the people wants to take the insurance policy in the future. From the study it comes to the knowledge that LIC & ICICI are the strong competitors of the MetLife in Shrinagar.

60

CHAPTER 7
CONCLUSION AND RECOMMENDATIONS

METLIFE India is one of the largest life insurance companies in the world with insurance. MetLife India is the challenge against the other insurance companies in the 21st century with the emerging hopes and aspirations. MetLife India is a bless to the mankind which has awakened many new hopes and aspirations for humankind a vision of a new, just equitable and fair global order governed by a time tested value system based on a noble human passion of love, compassion, tolerance and mutual understanding.

Globalization has opened new frontiers of technology, knowledge, communication and information. MetLife India is a gift of globalization for the maintenance and development of these frontiers throws before us a daunting challenge i.e. the utilization of these facilities to create a brave new world in which a qualitative and a clear change between yesterdays and tomorrows can easily perceived.

I have done a detailed analysis of insurance sector with special reference to MetLife India as well as other private companies and concluded that most of the people preferred to deal with nationalization insurance companies.

About the awareness regarding the products offered by MetLife India, I conclude that most of the people are aware but they still need more publicity among the residents of the city.

METLIFE India has set all the strategies and mission after proper vision and is achieving the targets by working in co-operative and co-coordinated manner and giving the people full services and facilities and making work easy.

61

So, I would like to conclude by saying that METLIFE India is a wonderful gift given to the mankind in the new era for people development and maintenance of the world as well as India.

To introduce innovative products offering a right mix of flexibility/risk/return depending, which will suit the requirement of the customers and should target specific niches, which are poorly served or not served at all. Number of formalities should reduce, as customer feels irritated with lots of formalities. The company should also be deal with rural areas and with cities not having authorized Pin code. It is seen that till today a large portion of population is unaware of various insurance plans, these include educated professionals also. Therefore, the Private sector insurance companies should focus on improving awareness and the increase the understanding about insurance plans thus increasing their scope of sale. Met Life India Insurance Company should lay more stress on advertisements, both in print as well as in other media. People of Met Life India Insurance Company should approach people who belong to age group if 25-35 and 35-45 also people who belong to service class as these are the only once who are interested in purchase a life insurance policy in future.

62

CHAPTER 8
LIMITATION OF THE STUDY

The report may be beneficial to company. But there are some limitations of the study:The size of the research may not be substantial and it is limited to the Shrinagar. There may be lack of time on the part of respondents. There may be some bias information provide by company professionals. As only single cities are surveyed or covered. It does not represent the overall view of Indian Market. It is very much possible that some of the respondents may have given the incorrect information.

63

BIBLIOGRAPHY

Books
1. Mishra, M.N., Insurance Principles and Practices (S.Chand & Co., Delhi, 1999) 2. Kotler, Philip, Marketing Management (Prentice Hall India, 2004) 3. Kothari, C.R., Research Methodology: Methods & Techniques (Wishwa Publication, Delhi, 1990) 4. Magazines and Journal OutlookInsurance Special, June 12, 2005 5. The Charted Accountant Journal, June 16, 2005

Web sites www.METLIFE.com www.bimaonline.com

64

QUESTIONNAIRE

Dear Sir/Madam

I am the student of MBA at doing a project CUSTOMER AWARENESS REGARDING MET LIFE INDIA INSURANCE COMPANY IN SHRI NAGAR, J&K. Please co-operate to fill this questionnaire.

1. Have you heard about Privatization in Life Insurance sector?

(a) Yes

(b) No

2. Have you heard about Private insurance company METLIFE India Life?

(a) Yes

(b) No

3. From where did you come to know about MET LIFE INDIA INSURANCE?

(a) Electronic Media

(b) Print Media

(c) Agents

(d) Others

4. Do you think services provided by Private sector will be better than Public sector companies?

(a) Yes

(b) No

65

If Yes, Remarks________________________________________________

If No, Why ____________________________________________________

5. Do you have Insurance Policy?

(a) Yes

(b) No

6. With which company do you have Insurance Policy?

____________________________________________

7. What according to you are the motives of buying Life Insurance Policy?

(a) Tax Saving

(b) Life Cover

(c) Liquidity

(d) Secure Investment

8. Do you have any plan to buy Insurance Policy in near future?

(a) Yes

(b) No

9. If you have any plan to buy an Insurance Policy, which policy would you .prefer ?

(a) Saving Plan

(b) Protection Plan

(c) Pension Plan

(d) Childrens Plan

66

10. If you are not taking any insurance policy, please tell us the reasons why?

(a) We could not afford

(b) We dont see any benefit with the system

(c) We dont want insurance

(d) We dont understand how system works

11.

From which company would you like to take insurance 1. If you have any plan to buy an Insurance Policy, which policy would you .prefer ?

(a) METLIFE INDIA INSURANCE INSURANCE

(b) HDFC STANDARD LIFE

(c)

LIC

(d) ICICI

(e)

OTHERS

12. What are Customer Preference for different insurance companies?

(a) METLIFE INDIA INSURANCE INSURANCE (c) LIC

(b) HDFC STANDARD LIFE

(d) TATA AIG

(e)

KOTAK MAHINDRA 67

13. Do you agree that met life have a good brand value than other companies?

(a) Yes

(b) No

(c) Cant say

14 which attribute you consider while taking policy from MetLife or other company?

(a) brand

(b) premium

(c) services

d) Security

BACKGROUND DATA 1. Name _________________________________________

2. Sex:

(a) Male

(b) Female

3. Age:

(a) Below 18

(b) 18-35

(c) 35-50

(d) Above 50

4. Education:

(a) Under Graduate 68

(b) Graduate

(C) Post Graduate

5. Occupation:

(a) Service

(b) Profession

(c) Business

(d) Others

6. Income:

(a) Less than Rs. 50,000

(b) Rs. 50,000 to 1,50.000

(c) Rs. 1,50,000 to 3,00,000

(d) Rs. 3,00,000 & above 7. Address __________________________________________ __________________________________________ __________________________________________

8.Phone no. __________________________________________

*Thanks for your valuable time and co-operation*

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