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On the topic

Overview of insurance

Submitted to


In partial fulfilment of the Requirement for minor project in the


S.K.college of business management hemchandracharya north Gujarat university


Submitted by:-


Roll no. 3

Academic year:- 2017-2018

Submitted to


Asst. professor

B & I SEM.2


On the topic

Overview of insurance

Submitted to


In partial fulfilment of the Requirement for minor project in the


S.K.college of business management hemchandracharya north Gujarat university


Submitted by:-


Roll no. 3

Academic year:- 2017-2018

Submitted to


Asst. professor

B & I SEM.2

As a student a ADBI semester-1 , I pooja panchal supposed to prepare the project of any subject.

So as a part of study and education purpose in our subject minor project I am presenting the
project. Here I have selected the topic life insurance

The project is representative to give the basic information of life insurance policy , so that when
a person applies for the life insurance policy , he/ she can understand the basic and help
themselves remain away from the duping elements in the market.

B & I SEM.2

Before presenting this minor project I like to thank first dr. jay trivedi , who suggest me this topic
to prepare a minor project . He also help me in project by providing him guidance and
compliments .

I also like to thank akshat shah, who always carry on reminding me that I have to complete the
project as soon as possible and also helps me to complete my report work and provide some
important information.

B & I SEM.2

1. Introduction 6
1.1 meaning of insurance
1.2 importance of insurance
1.3 history of insurance
2. Review of literature 10
2.1 about insurance industry
2.2 advantage of LIC
2.3 types of insurance product
2.4 busting some insurance myths
2.5 valuing the invaluable
2.6 busting some insurance myths

3. Company profile 18
4. Birla sun life insurance 21
5. Life insurance corporation of India 23
6. TATA AIG life 24
7. Reliance general insurance 25
8. Research methodology 26
9. Comparative analysis 28
10. Finding and inter pretention 31
11. Results 39
12. Suggestion & recommendation 40
13. Conclusion 41
14. limitation 42

B & I SEM.2

1.1 meaning of insurance

Insurance may be described as a social device to reduce or eliminate risk of loss to life and
property. Insurance is a collective bearing of risk. Insurance is a financial device to spread the
risks and losses of few people among a large number of people prefer small fixed liability instead
of big uncertain and changing liability.

Insurance can be defined as a legal contract between two parties whereby one party called
insurer undertakes to pay a fixed amount of money on the happening of a particular event , which
may be

certain or uncertain. The other party called insured pays in exchange a fixed sum known as

Insurance is desired to safeguard oneself and against possible losses on account of risks and
perils. Financial compensation for the losses suffered due to the happening of any unforeseen

1.2 importance of insurance

Insurance constitutes one of the major segments of the financial market. Insurance service play
predominant role in the process financial intermediary. Today insurance industry is one of the
most growing sectors in India. There is lot of potential in the Indian insurance industry.

There are many issues , which require study . the scope of the study of insurance industry of
india would be very great as there are on going developments in the industry after the opening of
the sector.

The major issue right now is the hike in FDI (foreign direct investment) limit from 26% to 49%
in the insurance sector. Government may in near future allow 49% FDI in insurance. This would
lead to more capital inflow by foreign partners .

Another major issues is the effects on LIC after the entry of private players in the market.
Though market share of LIC has been affected , it has improved in terms of efficiency.

B & I SEM.2

1.3 history of insurance

The concept of insurance is believed to have emerged almost 4500 years ago in the ancient land
of babylonia where traders used to bear risk of the carvan by giving loans , which where letter
repaid with interest when the goods arrived safely.

The concept of insurance as we know toady took shape in 1688 at a place called loyds coffee
house in London where risk bearers used in meet to transact business. This coffee house became
so popular that loyds became the one of the first modern insurance companies by the end of the

Marine insurance companies came into existence by the end of the 18 century. These companies
where empowered to write fire and life insurance as well as marine. The great fire of London in
1966 caused huge loss of property and life. With a view to providing fire insurance facilities, Dr.
Nicholas barbon set up in 1967 the first fire insurance company known as the fire office.

The early history of insurance in India traced back to the vedas. The Sanskrit term yogakshema
(meaning well being ) , the name of life insurance corporation of Indias corporate headquarters ,
is found in rig veda . the Aryans practiced some from of community insurance around 100BC.

Life insurance in it is modern from came India from England in 1818. The oriental life insurance
company was the first insurance company to be set up in India to help the windows of European
community. The insurance companies , which came in to existence between 1818 and 1869 ,
treated Indian lives as subnormal and charged an extra premium of 15 to 20 percent. The first
Indian insurance company, the Bombay mutual life insurance society. the first Indian insurance
company covered Indian lives at normal rates.

At the dawn of the twentieth century , insurance companies started mushrooming up. In the year
1912, the life insurance companies act, and the provident fund act were passed to regulate the
insurance business. The life insurance companies act 1912, made it necessary that the premium
rate tables and periodical valuations of companies should be certified by an actuary. However ,
the disparage still existed as discrimination between Indian and foreign companies. The oldest
existing insurance company in India is national insurance company Ltd, which was founded in
1906 and is doing business even toady. The insurance industry earlier consisted of only two state
insurers: life insurance i.e life insurance corporation of India (LIC) and general insurers: i.e
general insurance corporation of India (GIC) . GIC had four subsidiary companies.

With effect from December 2000, these subsidiaries have been de-linked from parent company
and made as in depended insurance companies: oriental insurance company limited and united
india insurance company limited..

B & I SEM.2

Life insurance corporation act.1956

Even though the first legislation was enacted in 1938,it was only in 19 January 1956,that life
insurance in India was completely nationalized, through a government ordinance: the life
insurance corporation act,1956 effective from 1956 was enacted in the same year to, inter alia,
form LIFE INSURANCE CORPORATION after nationalization of the 245 companies into one
entity. There were 245 insurance companies of both Indian and foreign origin in 1956.
Nationalization was a accomplished by the government. Acquisition of the management of the
companies. The life insurance corporation of India was created on 1 september,1956, as a result
and has grown to be the largest insurance company in India as of 2006.

Insurance regulatory and development authority (IRDA) act,1999

Still 1999, there were not any private insurance companies in indan insurance sector. The
government of india than introduced the insurance regulatory and development authority act in
1999, thereby de-regulating the insurance sector and allowing private companies in to the
insurance. Further, for foreign investment was also allowed and capped at 26% holding in the
Indian insurance companies. In recent year many private players entered in the insurance sector
in india. Compnies with equal strength stated competing in the Indian insurance market.
Currently in india only 2 million people (0.2% of total population of 1 billion) , are covered
under medi claim, whereas in developed nations like USA about 75% of the total population are
covered under some insurance scheme. With more and more private players in the sector this
scenario may change at rapid pace.

Different insurance companies

Insurance Is An Upcoming Sector, In India The Year 2000 Was a landmark year for life
insurance industry, in this year the life insurance industry was liberalized after more then fifty
year the life insurance sector was once a monopoly, with LIC as the only company, a public
sector enterprise. But now days the market opened up and there are many private players
competing in the market. there are fifteen private players. The market share of LIC has been
considerably reduced. In the last five years the private players is able to expand the market (
growing at 30% per annum) and also has improved their market share to 18%. For the past five
years private players have launched many innovation in the industry in terms of products, market
channels and advertisement of products, agent training and customer services etc.

The various life insurance entered india:-

1. Bajaj Allianz Life Insurance Company Limited

2. Birla Sun Life Insurance Co. Ltd.
B & I SEM.2

3. HDFC Standard Life Insurance Co. Ltd.

4. ICICI Prudential Life Insurance Co. Ltd.
5. ING Vysya Life Insurance Company Ltd.
6. Max New York Life Insurance Co. Ltd.
7. Met Life India Insurance Company Ltd.
8. Kotak Mahindra Old Mutual Life Insurance Ltd.
9. SBI Life Insurance Co. Ltd.
10. Tata AIG Life Insurance Company Ltd.
11. Reliance Life Insurance Company Ltd.
12. Aviva Life Insurance Co. India Pvt. Ltd.
13. Sahara Life Insurance Co. Ltd.
14. Shriram Life Insurance Co. Ltd.
15. Bharti AXA Life Insurance Company Ltd.
16. Future General Life Insurance Company Ltd.
17. IDBI Fortis Life Insurance Company Ltd.
18. Canara HSBC Oriental Benk Of Commerce Life Insurance Co. Ltd.
19. AEGON Religare Life Insurance Company Ltd.
20. DLF Pramerica Life Insurance Co. Ltd.
21. Star Union Dai ichi Life Insurance Company Ltd.

B & I SEM.2


1. Protection against risk of untimely death

Life insurance is a product, which offers protection against the risk of death the full sum assured
is made available under a life assurance policy, whereas under other savings schemes, the total
accumulated savings alone will be available.

2. Protection during old age

Life insurance can also be used as a means of saving for ones future. There are a number of life
insurance policies, which in addition to life cover also provide the means of investing ones
income. The sum as per the policy will be received only after a period of time. This amount thus
provides for the old age.

3. Forced savings

Payment of life insurance premiums is compulsory and becomes a habit. Savings in other
scheme can be easily withdrawn and may be used for less worthy purpose. Termination of a life
insurance policy by the policyholder usually results in substantial loss in benefits under the
policy to the policyholder. One is thus encouraged to save and keep ones policy alive.

4. Educational requirements and charity

The object of insurance may be to serve as a security to educational funds in respect of loans
advanced for educational purpose or to provide donations to charitable institutions like hospital
and school.

5. Nomination and assignment

The life insured can name the person or persons to whom the policy money would be payable in
the event of his death .the proceeds of a life insurance policy can be protected against the claims
of the creditors of the life insured by effecting a valid assignment of the policy. The beneficiaries
are fully protected from creditors expect to the extent of any interest in the policy retained by the
insured.21Marketability and suitability for borrowing After 3 years, if the policyholder finds that
he is unable to continue payment of premiums he can surrender a policy for a cash sum. A life
insurance policy is accepted as a security for a commercial loan.

6. Loans from the insurance company

A policy holder can take a loan from his insurance company against the Security of his life
insurance policy provided the terms of the terms of his policy allow such a loan. This loan can be
taken usually after a period of 3 years from commencement of the policy and is a percentage of
its surrender value.

B & I SEM.2

7. Investment options

The unit link products gives comprehensive insurance solutions that cater to an individuals dual
need of earning potentially high returns as well as stay for life. Thus there is an option to invest
money in the products that combine the best of insurance and investment. In a volatile market
conditions it is possible to secure both as one can hedge the investment with saver investment
vehicles that provide a diversified portfolio.

8. Tax benefits

The Indian income tax act provides tax concessions to the policyholder both on payment of
premium and on the maturity amount. Under sec 88 the tax benefits on premium paid by an
individual for life insurance policies on his own life\on the life of spouse \children minor or
major, including married daughters.

Under sec 6 of the married womens property act if a married man takes a policy of life
insurance on his own life and expenses on the face of it to be for the benefit of his wife or of his
wife and children or any of them, then it shall be deemed to be a trust for the benefit of his wife
and children or any of them, According to the interest so expressed and shall not so long as any
object of trust remains be subject to the control of the husband or to his creditors or form part of
his estate. An insurance policy taken by a married man in the above manner is ideal way to
protect the interest of his wife and children, even after his untimely death.

2.1 Types of insurance products

Term assurance plan- In insurance language this is a pure risk cover and can be described as
an insurance or risk management product in its purest and simplest form. In case of your
untimely death, your dependents will receive the risk-cover amount or the sum assured. On the
other hand, there is no survival benefits if you survive the policy term, and you also do not get
back the premiums paid.

Endowment assurance plans- It is a traditional investment-cum-insurance plan. In other words,

it provides both life cover (in the event of death of life insured) or maturity benefits if he/she
survives the policy term. Endowment plans are typically frontloaded. Therefore it makes sense
for you to remain in the policy for at least 12-15 years.

Money-back policy- It is a variant of the endowment assurance policy-the difference is that you
get the survival benefits intermittently over the life of the policy. Thus taking care of his lump-
sum monetary requirements to enable him to meet his financial goals and major commitments.
The maturity benefit is the sum assured value less the survival benefits already paid under the
policy, plus bonuses accrued, if any. In case of untimely death the nominee will receive the

B & I SEM.2

entire sum assured without considering the payouts already made to you before the unfortunate

Whole life plan- This policy provides the life assurance cover for almost the entire life. Most of
the insurance companies provide protection up to the age of 100 years. The sum assured is paid
to you once you reach this age, and the policy is terminated. In this payment of premium is for
whole life, and the sum assured is paid to your nominee in the event of your death. In other
words, this is equivalent to a term plan over your lifetime.

Pension plan- A pension plan can be looked as more of an investment product offered by
insurers to cater to the golden retirement years of an individual. Also referred to as retirement
plans, these are designed to ensure that you are financially independent during your retirement
years. Most of the pension plans also provide an optional life assurance cover in them.

Child plan- It basically aims at ensuring the achievement of life goals of your child. The goal
can be higher education, financial help in establishing a business or profession, or even marriage.
In a child plan, the life assured can be the parent or the child. The beneficiary for the policy,
however, is the child. As a child is a minor, the life insurance contract is between the parent and
the insurance company. In case of early death of the parent, the premium payment is waived off
by the insurance company and the policy continues as originally planned.

Unit Linked Insurance Plan- ULIPs have been the darling of insurance companies,
intermediaries and the insured population alike over the last five years. The main reason for this
popularity is the twin advantage of a pure life cover (insurance component) and a range of
investment funds or options (savings component) to match your risk profile. While the pure life
cover provides the much needed financial security to your dependents in the event of your
untimely death, the savings component allows you to participate in the capital markets and build
wealth over the long-term tenure of the policy.

2.2 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 setup 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.

B & I SEM.2

Growth of customers interest with an increasing demand for better insurance products.

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

2.3 Indian Insurance Market

Indian economy is the 12th largest in the world, with a GDP of $1.25 trillion and 3rd largest in
terms of purchasing power parity. With factors like a stable 8-9 per cent annual growth, rising
foreign exchange reserves, a booming capital market and a rapidly expanding FDI inflows, it is
on the fulcrum of an ever increasing growth curve. Insurance is one major sector which has been
on a continuous growth curve.

since the revival of Indian economy. Taking into account the huge population and growing per
capita income besides several other driving factors, a huge opportunity is in store for the
insurance companies in India. According to the latest research findings, nearly 80% of Indian
population is without life insurance cover while health insurance and non-life insurance
continues to be below international standards. And this part of the population is also subjected to
weak social security and pension systems with hardly any old age income security. As per hour
findings, insurance in India is primarily used as a means to improve personal finances and for
income tax planning; Indians have a tendency to invest in properties and gold followed by bank
deposits. They selectively invest in shares also but the percentage is very small 4-5%. This in
itself is an indicator that growth potential for the insurance sector is immense. Its a business
growing at the rate of 15-20% per annum and presently is of the order of $47.9 billion.

India is a vast market for life insurance that is directly proportional to the growth in premiums
and an increase in life density. With the entry of private sector players backed by foreign
expertise, Indian insurance market has become more vibrant. Competition in this market is
increasing with companys continuous effort to lure the customers with new product offerings.
However, the market share of private insurance companies remains very low -- in the 10-15%
range. Even to this day, Life Insurance Corporation (LIC) of India dominates Indian insurance
sector. The heavy hand of government still dominates the market, with price controls, limits on
ownership, and other restraints.

Major Driving

Growing demand from semi-urban population

B & I SEM.2

Entry of private players following the deregulation

Rising demand for retirement provision in the ageing population

The opening of the pension sector and the establishment of the new pension regulator

Rising per capita incomes among the strong middle class, and spreading affluence

Growing consumer class and increase in spending & saving capacity

Public private partnerships infrastructure development

Dearth of innovative & buyer-friendly insurance products

Success of Auto insurance sector

Emerging Areas

Healthcare Insurance & Pension Plans

Mutual fund linked insurance products

Multiple Distribution Networks .i.e. Bank assurance

The upward growth trend started from 2000 was mainly due to economic policies adopted by the
then Indian government. This year saw initiation of an era of economic liberalization and
globalization in the Indian economy followed by several reforms and long-term policies that
created a perfect roadmap for the success of Indian financial markets. On the basis of several
macroeconomic factors like increase in literacy rate & per capita income, decrease in death rate
and unemployment, better tax rebates, growing GDP etc., we estimate that the Indian insurance
sector will grow by $28.65 billion and reach $76.54 billion by 2011 with a CAGR (compounded
annual growth rate) of 12.44% and a growth of 59.82%.

2.4 Valuing the invaluable

Both under insurance and over insurance can often be attributed to the lack of proper
understanding of the exact insurance needs for oneself and the family, and the failure to spot
and cover all liabilities properly and adequately, or being over-conservative in this regard.

Under Insurance

Under insurance, typically occurs when the existing financial liabilities and insurance needs are
fully taken care of. In the event of the untimely death of the only (or the main needs are fully
B & I SEM.2

taken care of. In the event of the untimely death of the only (or the main earning) member of the
family, his financial liabilities would obviously fall on his dependents, leaving them in a state of
financial distress that could threaten their need of sustenance.

Over Insurance

Conversely, there are also instances where individuals indulge in life insurance covers that far
exceed in value than what is actually required. This is a classic case of over insurance, which
leads to an unnecessarily higher premium payment, leaving you much poorer. It results in
unnecessary expenditure that could otherwise be wisely invested elsewhere.

The need for an adequate insurance cover is never static and keeps on varying with changes in
the life stages and important events of an individual. The table below provides an insight into the
various life stages and events when life insurance cover usually requires a revision.

Life stage Requirement for a life insurance cover

Start work life An individual usually does not have any
dependent like spouse or children, thus
allowing the need to take a life cover.
However, if your parents and dependents then
you need to take appropriate life cover on their
Moreover, you may have taken a loan to
finance your hire education or professional
studies or purchase a car. You should take a
suitable insurance cover so that in the event of
your untimely death, the burden of EMI
payments does not pass to parents or other
members of the family.
Recently married Marriage require a revision of insurance need.
This can take from of insurance in life cover,
taking into consideration an expected increase
in experience repayment of liabilities, if any
also an insurance cover on the life of the
spouse, although for a lesser amount, can be
However, if both the husband and wife are
working, the extent and value of life insurance
coverage on both lives will depend on their
respective remuneration packages, personal
liabilities, as well as extent of financial
dependence on one another.
Birth of children The arrival of a child brings with it a great
amount of responsibility. At this stage, a
revision of insurance needs is beside mainly on
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securing the financial needs of the child up to

the time he/she has grown up and settled in
Purchase of a house, car, etc. Purchasing a house is a major financial
decision not only on regard to the choice a
property but also in regard to the commitment
for repayment of the loan availed to finance
the property. Therefore , you should take out a
mortgage redemption plan to the extent of the
outstanding amount.
Purchasing a car through vehicle loan, too,
calls for a life cover for a life cover of the
borrower to the extent of the outstanding loan.
The same holds good for any other asset or
event which has been financed by a loan.
Loan taken for business/profession The loan taken to set up or enhance your
profession or business should be fully covered.

2.5 Busting some insurance myths

With a range of products flooding the market, people today are more confused about insurance
than ever. Here are a bagful of myths floating around and I have made an effort to bust a few of
the significant ones.

1. I dont want to put my hard-earned money into a pure term assurance plan if I dont even
get back all the premiums paid on survival of the term.

A pure term assurance plan is a risk mitigation tool and not an investment product. In
the event of your untimely death during the policy term, your dependents get a sum
assured to enable them to continue living their existing lifestyle, repay loan liabilities
and meet long-term financial goals. To achieve this, you only need to pay a premium
amount that is a fraction of the sum assured. Moreover unlike investments, where it
takes years to build a suitable corpus, the sum assured on your insurance policy is
payable, in the event of your untimely death, from the date of its commencement.
2. It would be enough if only the main breadwinner of the family takes life insurance.

While the main breadwinner should take out a life insurance policy on a priority basis;
the other members of the family should also be covered. If the wife is working, then she
should be covered to the extent of loss of income to the family in the event of her
untimely death. On the other hand, even if she is not working, she should be covered,

B & I SEM.2

albeit for a smaller sum, because her contribution to the family, in form of household
services, has monetary value.

3. I will get back all my premiums when I surrender my endowment policy prematurely.

You couldnt be more wrong! You only get back the surrender value, which is
based on the paid-up value is a proportion of the original sum assured based on the
number of years for which premium was paid against the total premium-paying years.
The paid-up value of the policy is also calculated and available as per the policy
4. Insurance is primarily useful as a tax-saving instrument.

Again, this is a huge misconception! While you do get attractive tax breaks, the
primary objective of insurance is risk mitigations followed by wealth creation for the
long term. Many people end up taking this myth too seriously, particularly without
considering the costs and benefits involved.
5. After three years, I can walk away from any ULIP, along with the accrued investment or
the fund value.

Sure, you can do that! However, you need to remember that a ULIP, at least in the
initial years, is very different from a mutual fund. While a mutual fund only charges o
nominal fund management charge every year, a ULIP is front loaded. That means a
significant chunk of your premium is allocated across various charges in the initial years
of the policy and only the balance gets invested in a fund of your choice. As these
charges taper off and average over time, it makes sense to stay in a ULIP for at least 15
years. Therefore, if your investment horizon is just 3-5 years, you better off in a mutual
fund, and you can take out a separate term assurance plan for the required risk cover.

B & I SEM.2

3. Company Profile

Karvy Stock Broking Ltd.

The karvy group was formed in 1983 at Hyderabad, India. KARVY, is a premier integrated
financial services provider, and ranked among the top five in the country in all its business
segments, services over 16 million individual investors in various capacities, and provides
investor services to over 300 corporate, comprising the who is who of Corporate India.

KARVY covers the entire spectrum of financial services such as Stock broking, Depository
Participants, Distribution of financial products like mutual funds, bonds, fixed deposit, Merchant
Banking & Corporate Finance, Insurance Broking, Commodities Broking, Personal Finance
Advisory Services, placement of equity, IPOs, among others. Karvy has a professional
management team and ranks among the best in technology, operations, and more importantly, in
research of various industrial segments. Karvy computer share limited is Indias largest registrar
and transfer agent with a client base of nearly 500 blue chip corporate, managing over 2 crores
accounts. Karvy stock brokers limited, member of national stock exchange of India and the
Bombay stock exchange, rank among the top five stock brokers in India with over six lakh active
account it ranks among the top five depositary participants in India, registered with NSDL and
CSDL, karvy commonage, member of NCDEX and MCX ranks among the top three
commodities brokers in the country. A Karvy insurance broker is registered as a broker with
IRDA and ranks among the top five insurance agent in the country. Registered with AMFI as a
corporate agent, karvy is also among top mutual fund mobilize with over Rs 5000 crores under
management. Karvy realty services, which started in 2006, have quickly established itself as a
broker, who adds value in the realty sector.

Karvy global offer niche off to off shoring services to U.S clients. Karvy has 575 offices in 375
locations across India and overseas at Dubai and New York. Over 9000 highly qualified people
staff karvy.

Quality Policy

To achieve and retain leadership, Karvy shall aim for complete customer satisfaction, by
combining its human and technological resources, to provide superior quality financial services.
In the process, Karvy will strive to exceed Customer's expectations.

Quality Objectives

As per the Quality Policy, Karvy will :

B & I SEM.2

Build in-house processes that will ensure transparent and harmonious relationships with its
clients and investors to provide high quality of services.

Establish a partner relationship with its investor service agents and vendors that will help in
keeping up its commitments to the customers.

Provide high quality of work life for all its employees and equip them with adequate
knowledge & skills so as to respond to customer's needs.

Continue to uphold the values of honesty & integrity and strive to establish unparalleled
standards in business ethics.

Use state-of-the art information technology in developing new and innovative financial
products and services to meet the changing needs of investors and clients.

Strive to be a reliable source of value-added financial products and services and constantly
guide the individuals and institutions in making a judicious choice of same.

Strive to keep all stake-holders(shareholders, clients, investors, employees, suppliers and

regulatory authorities) proud and satisfied.


Among the top 5 stock brokers in India (4% of NSE volumes)

India's No. 1 Registrar & Securities Transfer Agents

Among the top 3 Depository Participants

Largest Network of Branches & Business Associates

ISO 9002 certified operations by DNV

Among top 10 Investment bankers

Largest Distributor of Financial Products

Adjudged as one of the top 50 IT uses in India by MIS Asia

Full Fledged IT driven operations.

Insurance at Karvy

At karvy Insurance Broking Ltd. we provide both life and non-life insurance products to retail
individual, high net worth client and corporate with the opening up of the insurance sector and
with a large number of private players in the business, we are in a position to provide tailor made
policies for different segments of customers. In our journey to emerge as a personal financial
B & I SEM.2

advisor, we will be better positioned to leverage our relationship with the product providers and
place the requirements of our customers appropriately with the product providers. With Indian
market seeing a sea change, both in term of investment pattern and attitude of investors,
insurance is no more seen as only a tax saving product but also as an investment product. By
setting up a separate entity we would be positioned to provide the best of the products available
in this business to our customers.

Our wide national network, spanning the length and breadth of India, further supports these
advantages. Further, personalized service is provided here by a dedicated team committed in
giving hassle-free service to the clients.

Now as I have made a comparative analysis between the products of various insurance
companies, so its necessary to know something about those companies.

B & I SEM.2

4.. Birla Sun Life Insurance

Birla sun life Insurance Company limited is a joint venture between the Aditya Birla group, one
of the largest business houses in India and Sun Life Financial Inc., as leading international
financial services organization. The local knowledge of the Aditya Birla group combined with
the expertise of Sun Life Financial Inc., offer a formidable protection for your future. The Aditya
Birla group has a turnover of Rs. 1,33,875 corers (as on 31st march 2008). It has over 100,000
employees across all its units worldwide. It is led by its chairman Mr. Kumar Mangalam Birla.
Some of its key companies are Hindalco, Grasim and Aditya Birla Nuvo.

Sun Life Financial Inc. and its partners, have operations in key markets worldwide. These
include Canada, U.S, U.K, Hong Kong, the Philippines, Japan, Indonesia, India, china and
Bermuda. Sun Life Financial Inc. has assets under management of over us$ 404.7 BILLION (as
on 31st March, 2008). It is a leading performer in the life insurance market in Canada.

Birla sun life insurance (BSLI) has been operating for 7 years. It has contributed significantly to
the growth and development of the life insurance industry in India. It pioneered the launch of
unit linked life insurance plans amongst the private player in India. It pioneered the launch of
united linked life insurance plans amongst the private players in India. It was the first player in
industry to sell its policies through the Bancassurance route and through the internet. It was the
first private sector player to introduce a pure term plan in the Indian market. BSLI has covered
more than 2 million lives since it commenced operations.

8. Life Insurance Corporation Of India

"Explore and enhance the quality of life of people through financial security by providing
products and services of aspired attributes with competitive returns, and by rendering resources
for economic development."

"A trans-nationally competitive financial conglomerate of significance to societies and Pride of

Every day we wake up to the fact that more than 220 million lives are part of our family called

B & I SEM.2

We are humbled by the magnitude of the responsibility we carry and realize that the lives that are
associated with us are very valuable indeed.

Although this journey started five decades ago, we are still conscious of the fact that, while
insurance may be a business for us, being part of millions of lives every day for the past 52 years
has been a process called TRUST.

B & I SEM.2

5. National Insurance Company Limited

National Insurance Company Limited was incorporated in 1906 with its registered office in
Kolkata. Consequent to passing of the General Insurance Business Nationalisation Act in 1972,
21 Foreign and 11 Indian Companies were amalgamated with it and National became a
subsidiary of General Insurance Corporation of India (GIC) which is fully owned by the
Government of India. After the notification of the General Insurance Business (Nationalisation)
Amendment Act, on 7th August 2002, National has been delinked from its holding company
GIC and presently operating as a Government of India undertaking.

National Insurance Company Ltd (NIC) is one of the leading public sector insurance companies
of India, carrying out non life insurance business. Headquartered in Kolkata, NIC's network of
about 1000 offices, manned by more than 16,000 skilled personnel, is spread over the length and
breadth of the country covering remote rural areas, townships and metropolitan cities. NIC's
foreign operations are carried out from its branch offices in Nepal.

National transacts general insurance business of Fire, Marine and Miscellaneous insurance. The
Company offers protection against a wide range of risks to its customers. The Company is
privileged to cater its services to almost every sector or industry in the Indian Economy viz.

Banking, Telecom, Aviation, Shipping, Information Technology, Power, Oil & Energy,
Agronomy, Plantations, Foreign Trade, Healthcare, Tea, Automobile, Education, Environment,
Space Research etc.

National Insurance is the second largest non life insurer in India having a large market presence
in Northern and Eastern India.

B & I SEM.2

6.. Tata AIG life-A New Look at Life

Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company, formed
by the Tata Group and American International Group, Inc.

The Tata Group holds 74 percent stake in the insurance venture with AIG holding the balance 26
percent. Tata AIG Life provides insurance solutions to individuals and corporate. Tata AIG Life
Insurance Company was licensed t operates in India on February 12, 2001 and started operations
on April 1, 2001.

Tata AIG Life offers a broad array of life insurance coverage to both individuals and groups,
providing various types of add-ons and options on basic life products to give consumers
flexibility and choice.

B & I SEM.2

7. Reliance General Insurance

Reliance General Insurance is the fastest growing private sector general insurance company in
India with innovative product offerings and customer service standards that are benchmarked to
the best insurance practices in the world.

Reliance General Insurance offers a range of products for corporate and individual customers.
With a focus on customer-centric products, multiple distribution channels and technology,
reliance general insurance aims to increase its presence in the retail sector.

Reliance General Insurance is 100% subsidiary of reliance capital limited, which is one of the
Indias leading and fastest growing private sector financial services companies. It ranks among
the top three private sector financial companies and banking groups in terms of net worth.

Reliance capital has interests in asset management and mutual funds, life insurance, general
insurance, private equity and proprietary investments, stock broking and other activities in
financial services. Reliance capital is a part of the Reliance Anil Dhirubhai Ambani Group.

B & I SEM.2


The success of any Insurance company depends on how well they are able to align with the
objectives and needs of individual customers, and is able to provide proper solutions to them. To
know how a company is performing and whether they have any cutting edge advantage over
competitors, an intensive study of the market is absolutely necessary.

In order to understand the performance of different companies in the market, we did two types of
surveys, primary survey and secondary survey.

Primary survey

Primary survey included:-

Visiting websites and fixing appointments with their agents.

Creation of database of prospective clients from different sources calling them up to fix
appointment and then visiting them.

Prepare a questionnaire for the market survey .

Meeting different people to know their views, perception and preference of different insurance

Secondary survey

Secondary survey included of consulting books, magazines, journals, internet and also

taking reference from:-



karvy the fin polis.


We would go in for a qualitative research as our objective is to judge the perception and
preference of different insurance products. The research would be done from primary data.
B & I SEM.2

Sample Design

Target population: The target population for the research would be people who are in the age
group beyond 40 and age group between 25 to 40.We targeted this group of population because
these populations are the potential customers of insurance.

Sampling Frame : The research would be conducted in Kolkata. The survey has been
conducted among the potential customers of karvy from different sectors as karvy deals in many
sectors of business.

Sampling Technique : The sampling technique that is adopted is the simple random
sampling wherein every element in the target population has an equal chance or probability of
getting selected in the sample. That means every unit of the population who is more is in the
above mentioned age group, have an equal chance of getting selected

Sample Size: I did a survey among 100 people by taking two categories in consideration of 50
each; that is

1.) Age group beyond 40

2) Age group between 25 to 40

Data Collection : The research would be conducted from the source of primary data
collection. Secondary data would help us in knowing the trends prevailing in the insurance
market and would help us in analyzing and interpretation of the primary data.

B & I SEM.2

9. comparative analysis
Birla sun life insurance TATA AIG life
Name of the scheme Gold plus 2 plan Invest assure apex
purpose A simple, hassle fee plan it The plan provides a platform
helps you strike the right ensuring the upside potential
proportion between protection of the equity markets while
and saving safeguarding the investors
interest by offering a
guaranteed maturity unit price
Type of policy This is non-participating unit This is unit linked life
linked saving plan. insurance plan
Return and added benefits 1. Match your risk profile at 1. Can make partial
. every stage. withdrwal only after
2. Unlimited partial completion of 3 years,
withdrawals after 3 policy a maximum of 4 partial
years, free of cost. withdrawals is allowed
3. The policy can be in one policy year. No
surrendered at any time charge are applicable
during the tenure of the 2. Minimum sum assured
policy subject to surrender : 5 times the
charge, the charge will be annualized premium
zero after 4th policy year. 3. Maximum sum
4. At the end of the policy assured: 60 times the
term you get the found annualized premium.
value 4. The policy can be
5. On death the nominee will surrendered any time
get the greater of the found after 3 notice. Subject
value or the sum assured to deduction of the
reduce or partial applicable surrender
withdrawals. charges.
6. Minimum sum assured 5* 5. On death the nominee
annual premium will get higher of; the
sum assured or the
fund value.
6. On maturity the
nominee will get
higher of the fund
value or the guaranteed
maturity unit price
multiplied by the
number of units.
B & I SEM.2

Additional coverage Nill 1. TTATA AIG life

accidental death
benefit rider.
2. TATA AIG life
accidental death and
dismemberment rider
3. TATA AIG life critical
illness rider
Payment of premium Premium is paid for a period Premium is paid gor 3 years
of 3 years with the flexibility with the option to reduce
to reduce premium from the subject to minimum limit,
seond policy year onwards which is higher of 75% of the
without reduction in sum first year regular premium
assured. paid or rs. 90000. The sum
assured remains same even if
reduction in premium is
affected .
eligibility 18 to 70 years of age 18 to 70years of age.
Term of maturity The policy term is 8 years. The policy term is 10 years.
Tax benefits. Avail of tax benefit under Avail of tax benefit under
section 10(10 D ) of the section 80c and section 10( 10
income tax act, 1961. D ) of the income tax act,

National insurance company Reliance general insurance

Name of the scheme The national health plan Reliance health wise policy
Purpose To provide financial support, To provide financial support,
spiralling cost of health care, spiralling cost of health care,
protect your saving from protect your saving from
unforeseen circumstances unforeseen circumstances.
ed children under the age of 25 Covers your family on a
years and dependent children floater basis applicable to a
parents below 65 years. maximum of four persons you,
your spouse and to dependent
children under the age of 21
Benefits 1. Covers pre-existing 1. Covers pre-existing
diseases diseases after two/four
B & I SEM.2

2. Maternity coverage continuous renewals.

2. Day care treatment
expenses covered
3. Cashless facility.
4. Pre post

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10. Finding and interpretation

We have presented below the findings and analysis of the questionnaire addressed to the
respondents to gauge the attitude and perception of the people towards insurance.

Respondents having life insurance

The question was asked to the responded to know how many of the responded had a life
insurance policy.

Life insurance policy

yes no



B & I SEM.2

From the survey it was found out that 85% of the respondents had a life insurance policy
whereas 15% of the respondents didnt had a life insurance policy.

Insurance policy taken from which company?

The question was asked to the respondents so as to get to know from which insurance company
they have bought the policy



bajaj alianze
tata AIG
ICICI prudencial
max new york life
SBI life



The finding which came out from the survey was that 40% of the respondents who have a life
insurance cover bought life insurance from life insurance proportion of India (LIC) is the most
preferred brand in the insurance industry because it is the only government company which
offers insurance. People prefer to by insurance from LIC because of the security being one of the
prime factors. In the figure we can also see that nowadays people mindset have changed towards
insurance and are opting for privet company for insurance cover policy.

B & I SEM.2

From whose suggestion have the respondents taken a policy?

It was asked to gain an insight from the respondents that on whose suggestion did they opt for a
life insurance cover or policy

who suggested you to take the policy




family friends agents others

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types of plan






term plan endowment money back plan pension plan ULIP health plan

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Age group beyond 40

Graphical precentation







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B & I SEM.2

Age group between 25-40

Graphical presentation





B & I SEM.2








B & I SEM.2

11. Results
After the survey it was found that still major portion of customers go for public insurance
companies, but with the entry of more and more private companies the scenario is changing
rapidly, people with a need of more and better returns are opting for private companies, and this
can be justified by the increasing market share of private companies in the Indian insurance
sector. There are various ways in which private companies are found much more lucrative than
public companies and the facts which support this statement are as follows:-

1. Versatility of products.

2. Efficient fund managers.

3. Better customer services.

4. More returns.

5. Regular follow up.

6. Quicker settlement

B & I SEM.2

12. Suggestions and recommendation

People are not aware of the life insurance. Most of them know only one company which
provides life insurance i.e. LIC. So awareness campaign should be run so that people are aware
of different life insurance companies in India.

People should be educated about the different types of products or plans offered by the life
insurance companies. Most of them dont know much of the different types of plan or products.

It was felt that most of the people took life for tax savings or just to cover up their life, not as
an investment avenue. Life Insurance companies need to advertise in such a manner that
people start investing in life insurance like the way they invest in the stock market

Now at the time of global turmoil insurance company had to hold on to the policyholders trust
which might lead the company to the path of success

Insurance companies should try to adopt different strategies to market their products or plan.
Companies should not primarily focus on the agents for their business.

B & I SEM.2

13. Conclusion
Insurance is one sector that witnessed continuous growth owing to the reforms in 2000. The
insurance sector is likely to attain a size of Rs. 2,00,000 crore ($ 51.2 billion) in 2009-10. In life
insurance, the business grew by 23.3% to Rs. 93,000 corer in 2007-08 (Source : Assocham).
The sector alone employs close to 30 lakh people (including agents and direct employees). A
well-functioning insurance market plays an important role in economic development and
financial stability of developing economies such as Indias. First, it inculcates and encourages
the habit of saving. Second, it provides a safety net to rural and urban enterprise and productive
individuals. The life insurance market in India is on a growth path. In spite of this, the country
lags far behind the others in awareness about life insurance. The challenge is to spread
awareness about life insurance and it true benefits. The industry has to convince people to park
their hard earned money in long-term insurance and not just look at it as a tax saving

B & I SEM.2

14. Limitations
1. Useful Financial insights are not easily available.

2. Due to time constraint sufficient research on all the investment tools is difficult.

3. The survey sample is not very large for analysis

4. Properly convincing people to invest in insurance products is challenging.

5. Due to recession there is liquidity crunch in the market.

6. There might have been tendencies among the respondents to amplify or filter their responses
under the testing conditions

7. The research is confined to Kolkata and does not necessarily shows a pattern applicable to
other parts of the country.

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B & I SEM.2