ajay final project
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ASUMMER TRAINING REPORT
ONA STUDY ON CUSTOMERS ATTITUDE
TOWARDSLIFE INSURANCE PRODUCTS
ATBHARTI AXA LIFE INSURANCE
SUBMITTED IN THE PARTIAL FULFILMENT FOR THEREQUIREMENT OF THE AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION (MBA)TO
MAHARSHI DAYANAND UNIVERSITYROHTAK
SUBMITTED BY:-AJAY
MBA (3RD SEM.)ROLL NO.: 2801
AMITY BUSINESS SCHOOL, MANESAR
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(2008-10)DECLARATION
I, Ajay, Roll No. 2801 ofM.B.A (3rd Semester) of the Amity Business School, Manesar, here by
declare that Summer Training Report entitled, A study on customers attitude towards Life
Insurance Products is an original work and the same has not been submitted to any other
institute for the award of any other degree.
A seminar presentation of the Training Report was made on 10-08-2009 and the suggestions by
the faculty were duly incorporated.
Presentation Incharge Signature of the Candidate
(Faculty)
Countersigned
Director of the Institute
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TABLE OF CONTENTS
Certificate
Declaration
Acknowledgement
Chapter ISignificance of the study 1Conceptualization 2Objectives of the study 4
Limitations of the study 5
Chapter II Industry Profile 7Company Profile 18
Chapter III Review of Existing Literature 32
Research Methodology 35
Chapter IV Analysis and Interpretation 38
Chapter VFindings 47Recommendations 48Conclusions 49
Bibliography 50
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CONCEPTUALIZATION
Awareness is defined as
A persons knowledge and individuals skills of any person how a person is aware about a
particular products & innovations given by the company to the consumer..
Customer Satisfaction can be defined as supplying or gratifying all wants or wishes, fulfilling
conditions or desires, or the state of the mind anything that makes a customer feel pleased or
contented.
Consumer Behavior:
Consumer behaviour is defined as the behaviour that consumers display in searching for,
purchasing, using, evaluating and disposing of products and services that they expect will satisfy
their needs.The study of the processes involved when individuals or groups select, purchase, use, or dispose
of products, services ideas, or experiences to satisfy needs and desires
Insurance policies cover the risk of life as well as other assets and valuables, such as home,automobiles, jewellery, etc. On the basis of the risk they cover, insurance policies can be
classified into two categories: Life insurance and general insurance.
As the term suggests, life insurance covers the risk involved in a person's life, while general
insurance provides financial protection against unforeseen events, like accident, flood,
earthquake, disease, fire and burglary. General insurance also covers injury due to accident or
hospitalisation for illness and surgery can also be insured. Your liabilities to others arising out of
the law can also be insured and is compulsory in some cases like motor third party insurance.
Besides, term life insuranceor term assurance is life insurance which provides coverage for a
limited period of time, the relevant term. In fact, term life insurance is the original form of life
insurance and is considered to be the pure insurance protection because it builds no cash value.
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Should the insured person pass away, the family is protected by a certain amount.
There are three key factors to be considered in term insurance: face amount (protection or death
benefit); premium to be paid (cost to the insured); and length of coverage (term).
A common type of term is called annual renewable term. It is a one year policy but the insurance
company guarantees it will issue a policy of equal or lesser amount without regard to the
insurability of the insured and with a premium set for the insured's age at that time.
A policy holder insures his life for a specified term. If he dies before that specified term is up, his
estate or named beneficiary receives a payout. If he does not die before the term is up, he
receives nothing. In the past these policies would almost always exclude suicide.
Insurance is an attractive option forinvestmentbut most people are not aware of its advantages
as an investment option. Remember that first and foremost, insurance is about risk cover and
protection. Insurance also serves as an excellent tax saving mechanism.
The government of India has offered tax incentives to life insurance products in order to
facilitate the flow of funds into productive assets. Insurance Regulatory & DevelopmentAuthority is regulatory and development authority under government of India in order to protect
the interests of the policy holders and to regulate, promote and ensure orderly growth of the
insurance industry
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OBJECTIVES OF THE STUDY
1. To understand the insurance business and products of Bharti Axa life insurance Co. ltd.
2. To know about the customers perception and preferences about life insurance.
3. To examine the satisfaction level of the customers.
4. To analyses the customers awareness about life insurance companies.
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LIMITATIONS OF THE STUDY
The study was limited to a period of June-July 2009.
Some respondents were not willing to give any answer to the questions.
Time was the biggest limitation. The project requires a thorough study which requires a
considerable amount of time.
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CHAPTER -II
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INDUSTRY PROFILE
History of insurance sector in India
In India, insurance has a deep-rooted history. It finds mention in the writings of Manu
(Manusmrithi), Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra). The writings talk in
terms of pooling of resources that could be re-distributed in times of calamities such as fire,
floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. AncientIndian history has preserved the earliest traces of insurance in the form of marine trade loans and
carriers contracts. Insurance in India has evolved over time heavily drawing from other
countries, England in particular.
1818 saw the advent of life insurance business in India with the establishment of the Oriental
Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the
Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870
saw the enactment of the British Insurance Act and in the last three decades of the nineteenth
century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in
the Bombay Residency. This era, however, was dominated by foreign insurance offices which
did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and
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This millennium has seen insurance come a full circle in a journey extending to nearly 200
years. The process of re-opening of the sectorhad begun in the early 1990s and the last decade
and more has seen it been opened up substantially. In 1993, the Government set up a committee
under the chairmanship of RN Malhotra. The objective was to complement the reforms initiated
in the financial sector. The committee submitted its report in 1994 where in, among other things,
it recommended that the private sector be permitted to enter the insurance industry. They stated
that foreign companies be allowed to enter by floating Indian companies, preferably a joint
venture with Indian partners.
Following the recommendations of the Malhotra Committee report, in 1999, the Insurance
Regulatory and Development Authority (IRDA) was constituted as an autonomous body to
regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in
April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance
customer satisfaction through increased consumer choice and lower premiums, while ensuring
the financial security of the insurance market.
The IRDA opened up the market in August 2000 with the invitation for application for
registrations. Foreign companies were allowed ownership of up to 26%. The Authority has thepower to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000
onwards framed various regulations ranging from registration of companies for carrying on
insurance business to protection of policyholders interests.
In December, 2000, the subsidiaries of the General Insurance Corporation of India were
restructured as independent companies and at the same time GIC was converted into a national
re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.
Today there are 23 general insurance companies including the ECGC and Agriculture
Insurance Corporation of India and 23 life insurance companies operating in the country.
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The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together
with banking services, insurance services add about 7% to the countrys GDP. A well-developed
and evolved insurance sector is a boon for economic development as it provides long- term funds
for infrastructure development at the same time strengthening the risk taking ability of the
country.
The business of life insurance in India in its existing form started in India in the year 1818 with
the establishment of the Oriental Life Insurance Company in Calcutta.
Some of the important milestones in the life insurance business in India are:
1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.
1928 - The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938 - Earlier legislation consolidated and amended to by the Insurance Act with the objective of
protecting the interests of the insuring public.
1956 - 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a
capital contribution of Rs.5 crore from the Government of India.
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Some of the important milestones in the general insurance business in India
are:
1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business.
1957 - General Insurance Council, a wing of the Insurance Association of India, frames a code of
conduct for ensuring fair conduct and sound business practices.
1968 - The Insurance Act amended to regulate investments and set minimum solvency margins
and the Tariff Advisory Committee set up.
1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from 1st January 1973.
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Insurance Regulatory and Development Authority (IRDA)
The Insurance Regulatory and Development Authority (IRDA) is a national agency of the
Government of India, based in Hyderabad. It was formed by an act of Indian Parliament
known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging
requirements. Mission of IRDA as stated in the act is "to protect the interests of the
policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for
matters connected therewith or incidental thereto."
Role of IRDA
Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA..(1) Subject to the provisions of this Act and any other law for the time being in force, the
Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance
business and re-insurance business.
(2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers
and functions of the Authority shall include, -
(a) issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel
such registration;
(b) protection of the interests of the policy holders in matters concerning assigning of policy,
nomination by policy holders, insurable interest, settlement of insurance claim, surrender value
of policy and other terms and conditions of contracts of insurance;
(c) specifying requisite qualifications, code of conduct and practical training for intermediary or
insurance intermediaries and agents;
(d) specifying the code of conduct for surveyors and loss assessors;
(e) promoting efficiency in the conduct of insurance business;
(f) promoting and regulating professional organisations connected with the insurance and re-
insurance business;
(g) levying fees and other charges for carrying out the purposes of this Act;
(h) calling for information from, undertaking inspection of, conducting enquiries and
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investigations including audit of the insurers, intermediaries, insurance intermediaries and other
organisations connected with the insurance business;
(i) control and regulation of the rates, advantages, terms and conditions that may be offered by
insurers in respect of general insurance business not so controlled and regulated by the Tariff
Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938);
(j) specifying the form and manner in which books of account shall be maintained and statement
of accounts shall be rendered by insurers and other insurance intermediaries;
(k) regulating investment of funds by insurance companies;
(l) regulating maintenance of margin of solvency;
(m) adjudication of disputes between insurers and intermediaries or insurance intermediaries; (n)
supervising the functioning of the Tariff Advisory Committee;
(o) specifying the percentage of premium income of the insurer to finance schemes for
promoting and regulating professional organisations referred to in clause (f);
(p) specifying the percentage of life insurance business and general insurance business to be
undertaken by the insurer in the rural or social sector; and
(q) exercising such other powers as may be prescribed
Expectations
The law of India has following expectations from IRDA
1. To protect the interest of and secure fair treatment to policyholders;
2. To bring about speedy and orderly growth of the insurance industry (including annuity and
superannuation payments), for the benefit of the common man, and to provide long term funds
for accelerating growth of the economy;
3. To set, promote, monitor and enforce high standards of integrity, financial soundness, fair
dealing and competence of those it regulates;
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4. To ensure that insurance customers receive precise, clear and correct information about
products and services and make them aware of their responsibilities and duties in this regard;
5. To ensure speedy settlement of genuine claims, to prevent insurance frauds and other
malpractices and put in place effective grievance redressed machinery;
6. To promote fairness, transparency and orderly conduct in financial markets dealing with
insurance and build a reliable management information system to enforce high standards of
financial soundness amongst market players;
7. To take action where such standards are inadequate or ineffectively enforced;
Duties, powers and functions of IRDA
Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA
(1) Subject to the provisions of this Act and any other law for the time being in force, the
Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance
business and re-insurance business.
(2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers
and functions of the Authority shall include,
(a) issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel
such registration;
(b) protection of the interests of the policy holders in matters concerning assigning of policy,
nomination by policy holders, insurable interest, settlement of insurance claim, surrender value
of policy and other terms and conditions of contracts of insurance;
(c) specifying requisite qualifications, code of conduct and practical training for intermediary or
insurance intermediaries and agents;
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Market share of the company
Bharti AXA have 1% market share in the insurance industry. And ICICI got 21.6% market share
in the private insurance sector.
COMPETITORS
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ICICI Prudential Life Insurance Company:-
ICICI Prudential Life Insurance Company is a joint venture between ICICI
Bank - one of India's foremost financial services companies-and Prudential plc - a leading
international financial services group headquartered in the United Kingdom.
LIC :-
Life Insurance Corporation (LIC) came into existence on 1st September 1956 through the
amalgamation of 154 Indian insurance companies, 16 non-Indian companies and 75 provident.
The amalgamation was achieved with the help of Life Insurance Act passed by the Parliament in
the same year. The LIC was created with the goal of reaching all the insurable people in the
country and providing them financial coverage at a reasonable price. In the year 1956, LIC had 5
zonal offices, 33 divisional offices and 212 branch offices. With time there was a need for a
branch office at every district headquarter and many branches were opened, which raised the
pace of the organization.Life Insurance in its modern form came to India from England in the
year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life
insurance company on Indian Soil.
HDFC Standard Life Insurance Company Ltd:-
HDFC Standard Life Insurance Company Ltd. is one of India's leading private
insurance companies, which offers a range of individual and group insurance solutions. It is a
joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India's
leading housing finance institution and a Group Company of the Standard Life, UK.
HDFC as on December 31, 2008 holds 72.38 per cent of equity in the joint venture.
Standard Chartered:-
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Standard Chartered offers you a wide range of Life Insurance Products from
Bajaj Allianz Life Insurance Company, one of India's leading Insurance companies. At Standard
Chartered, you can avail of the services of trained & certified professional consultants from Bajaj
Allianz Insurance company, who can guide you in ascertaining your insurance needs, and assist
you in making an insurance plan that is just right for you.
Contact Address
Bharti AXA Life Insurance Co. Ltd.
Unit 601 & 602, 6th Floor
Raheja Titanium, Off Western Express Highway
Goregaon (East), Mumbai - 400063
Website:www.bharti-axalife.com
COMPANY PROFILE
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Bharti AXA Life Insurance is a joint venture between Bharti, one of Indias leading business
groups with interests in telecom, agri business and retail, and AXA, world leader in financial
protection and wealth management. The joint venture company has a 74% stake from Bharti and
26% stake of AXA.
The company launched national operations in December 2006. Today, we have over 8000
employees across over 12 states in the country and a national footprint of distributors trained to
provide quality financial advice and insurance solutions to the large Indian customer base.
As we further expand our presence across the country with a large network of distributors, wecontinue to provide innovative product and service offerings to cater to specific insurance and
wealth management needs of customers. Whatever your plans in life, you can be confident that
Bharti AXA Life will offer the right financial solutions to help you achieve them.
Bharti enterprises
Bharti Enterprises is one of Indias leading business groups with interests in telecom, agri
business, insurance and retail. Bharti has been a pioneering force in the telecom sector withmany firsts and innovations to its credit. Bharti Airtel Limited, a group company, is one of
Indias leading private sector providers of telecommunications services with an aggregate of 60
million customers, spanning mobile, fixed line, broadband and enterprise services. Bharti Airtel
was ranked amongst the best performing companies in the world in the BusinessWeek IT 100 list
2007. Bharti Teletech is the countrys largest manufacturer and exporter of telephone terminals.
Bharti has a joint venture with ELRo Holdings India Ltd. Field Fresh Foods Pvt. Ltd - for
global distribution of fresh fruits and vegetables. Bharti also has a joint venture - Bharti AXA
Life Insurance Company Ltd. - with AXA, world leader in financial protection and wealth
management. Bharti has recently forayed into the retail business under a company called Bharti
Retail Pvt. Ltd. It also has a joint venture Bharti Wal-Mart Private Limited with Wal-Mart,
for wholesale cash-and-carry and back-end supply chain management operations.
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Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group has
a diverse business portfolio and has created global brands in the telecommunication sector.
Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal-
Mart for the cash & carry business. It has successfully launched an international venture with EL
Rothschild Group to export fresh agri products exclusively to markets in Europe and USA and
has launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world
leader in financial protection and wealth management.
Airtel comes to you from Bharti Airtel Limited, Indias largest integrated and the first private
telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its
inception has been at the forefront of technology and has steered the course of the telecom sector
in the country with its world class products and services. The businesses at Bharti Airtel have
been structured into three individual strategic business units (SBUs) - Mobile Services, Airtel
Tele media Services & Enterprise Services. The mobile business provides mobile & fixed
wireless services using GSM technology across 23 telecom circles while the Airtel Tele media
Services business offers broadband & telephone services in 94 cities. The Enterprise services
provide end-to-end telecom solutions to corporate customers and national & international long
distance services to carriers. All these services are provided under the Airtel brand.
Bharti is the first
To launches Indias first private sector National Long Distance service
Mobile service to cross the three million customer mark and to cross 1,00,000 in
Himachal
To launch worlds first Flexi-Recharge prepaid coupon for its customer
To announce innovative outsourcing to enhance Quality of Customer Services
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To launch talk-time transfer service for its pre-paid customers in Delhi
To win the prestigious MIS Asia IT Excellence Award 2005
Awards
Airtel wins the World Communication Best Brand Award
Bharti Tele-Ventures is the Asian Mobile news Mobile Operator Of the Year
Airtel chosen as Most Preferred Mobile Service by CNBC Awaaz Consumer Awards
Bharti Tele-Ventures is the Indian Mobile Operator of the Year 2005
Bharti wins Silver Trophy at the CII National Six Sigma Awards
Bharti Tele-Ventures amongst the top technology companies in the World-Business
Week
Bharti foundation wins Golden Peacock award for corporate social responsibility.
AXA Group
AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse
geographically, with major operations in Western Europe, North America and the Asia/Pacific
area. AXA had Euro 1,315 billion in assets under management as of December 31, 2006. For full
year 2006, IFRS revenues amounted to Euro 79 billion, IFRS underlying earnings amounted to
Euro 4,010 million and IFRS adjusted earnings to Euro 5,140 million.
The AXA ordinary share is listed and trades under the symbol AXA on the Paris Stock
Exchange. The AXA American Depository Share is also listed on the NYSE under the ticker
symbol AXA.
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AXA Asia Pacific Holdings
AXA Asia Pacific Holdings Ltd (AXA APH) is listed on the Australian stock exchange and is
52.3% owned by AXA SA. AXA APH is responsible for AXA SAs life insurance and wealth
management businesses in the Asia-Pacific region. It has operations in Australia, New Zealand,
Hong Kong, Singapore, Indonesia, Philippines, Thailand, China, India and Malaysia. AXA APH
had A$106.4 billion in total funds under management and administration at 30 June 2007 and
reported a profit after tax before non-recurring items of A$374.0 million for the six months
ended 30 June 2007.
AXA Group is a worldwide leader in financial protection and wealth management. AXA'soperations are diverse geographically, with major operations in Western Europe, North America,
and the Asia/Pacific area. AXA had Euro 1315 billion in assets under management as of DEC.
30, 2008 and reported revenues of approximately Euro 79 billion for 2007. IFRS underlying
earnings amounted to Euro 4,010 million and IFRS adjusted earnings to Euro 5,140 million.
The AXA ordinary share is listed and trades on the Paris Stock Exchange. The AXA American
Depository Share is also listed on the NYSE.
Bharti AXA Life Insurance
Bharti AXA Life Insurance is a joint venture between Bharti, one of Indias leading business
groups with interests in telecom, agri business and retail, and AXA, world leader in financial
protection and wealth management. The joint venture company has a 74% stake from Bharti and
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SWOT analysis of Bharti AXA Life insurance
Strength
Bharti AXA gives the special training to the agents
Joint venture between the good financial protection company AXA
Weakness
Less awareness about Bharti AXA life insurance Among people
Less distribution channel
Opportunities
A large amount of Indian people is under Insurance cover.
People having Insurance cover are not adequately covered 94% insured people are under
insured.
Threats
A large competition in the market with 23 life insurance companies which they are giving
the life insurance services.
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PRODUCTS & SERVICES
Individual Plans:-
Bharti AXA Dream Life Pension:-
A Unit Linked Pension Product
Dream Life Pension, Bharti AXA Life Insurances unique pension product ensures that your
retirement life is your Dream Life.
Live your Dreams! Be Life Confident.
Key Benefits:
Unmatched flexibility for retirement wealth creation
o Pay one time lump sum or regular premiums
o At the inception systematically increase your premiums by 5 % or 8% each year
with the Accumulator Option
o Increase/decrease premiums any time after the 2nd policy year
o Add top up premiums any number of times after the 1st policy year
Dream Life Pension enhances your retirement kitty by providing special addition, starting
from the end of 10th policy year
Change your planned retirement age any time during the policy term
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Obtain tax benefits as per the prevailing tax laws on the premiums paid and the benefits
received under the policy.
Bharti AXA Life Aspire Life:-
Unit Linked Endowment Product.
Aspire Life helps you create a pool of wealth to meet your long-term needs, while also providing
you adequate protection in case the need arises.
Key Benefits:
Allocation rates as high as 100% i.e. no allocation charges for premiums greater than or
equal to Rs.50,000 on your investment in the unit-linked fund from year 2 - to maximize
your investment returns.
Up to 175% of the first year premium paid by you is returned as Guaranteed Special
Addition, at maturity of the policy or on unfortunate event of death of the Life Insured.
3 investment fund options as per your investment preferences.
Flexibility of partial withdrawals after fifth Policy Year, premium holiday option after
seven policy years and facility to switch amongst the investment funds as per your
investment objectives.
Protection benefit which provides high Sum Assured for longer policy terms.
Tax benefits under section 80C and 10(10D) of Income Tax Act.
Bharti AXA Life Invest Confident:-
Unit Linked Single Premium Product.
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You have always strived hard to achieve the best for you and your loved ones, so when it comes
to making an investment decision, we know that you would expect the best from it too.
Key Benefits:
Convenient single premium product with policy benefit period till the age of 70.
Unique special additions starting from the end of 5th policy year and thereafter at the end
of every 5 years till the maturity date.
3 investment fund options as per your investment preferences.
Basic Sum Assured of five times the single premium.
Unique option of investing additional amount at your convenience through Top Up
Premiums.
Flexibility of partial withdrawals after the third Policy Year
Additional benefit of Rs.5,00,000 in the event of death due to an accident.
Tax benefits under section 80C and 10(10D) of Income Tax Act.
Bharti AXA Life Wealth Confident:-
A unit-linked investment cum protection policy.
Your wealth, your status ensures that you get preferential status wherever you go. So whyshouldn't your money get the same?
Wealth Confident, a unit-linked investment cum protection product, with its limited period
premium payment facility of 5 years, premium payment flexibility, higher allocation of your
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premium for investment, unique special additions and life insurance benefit, not only makes your
money grow but also provides your investment the special treatment that it deserves.
"Be confident of providing your investments the right mix of growth, flexibility and loyalty
benefits. Live confident with Wealth Confident."
Key Benefits:
Pay premium for five years, while your policy continues for ten years.
Higher allocation of your premium up to 88% for investment.
Special additions of units added every year from 6th Year for incremental wealth
creation.
Choose from four different investment funds to meet your financial objectives.
Five times the life cover of your annual premium.
Tax benefit under 80C and 10(10D).
Bharti AXA Life Future Confident:-
A unit-linked policy which offers comprehensive protection along with wealth creation in the
long term
Key Benefits:
Life insurance benefit of up to 420 times the monthly premium.
Comprehensive overall protection through "Protection Enhancers" in the form of riders.
Wealth creation for your long term financial needs.
Special additions at regular intervals, starting from 7th year, to enhance your wealth.
Four different investment funds to meet your financial objectives.
Tax benefit under 80C and 10(10D).
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Bharti AXA Life Future Confident II:-
A unit-linked product which offers enhanced protection along with wealth creation in the long
term.
Key Benefits:
Build Wealth for your long term financial needs with enhanced financial protection.
Sum assured up to 420 times the monthly premium.
Life insurance benefit as Sum assured PLUS Policy fund value.
Four different investment funds to meet your financial objectives.
Comprehensive overall protection through "Protection Enhancers" in the form of riders.
Special additions at regular intervals, starting from the end of 7th year, to enhance your
wealth.
Tax benefit under sections 80C and 10(10D) of Income Tax Act.
Bharti AXA Life Save Confident:-
Traditional money back insurance product for long term savings
Your changing life stages decide your financial milestone planning. When you foresee
intermittent financial requirements in the years to come, like regular expenses related to your
childs education, liquidity becomes a key aspect of your planning along with long term savings,
and protection for your family.
Key Benefits:
Traditional money back product with payment term of 10 years. Get guaranteed amount back on specified intervals, starting from 6th policy year till
maturity.
Amount equal to 110% of Sum Assured paid across 10 years.
Secured growth on savings with Annual Reversionary Bonus, if declared, every year.
Savings enhanced by Terminal Bonus, if any, payable at maturity.
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CHAPTER - 3
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REVIEW OF EXISTING LITRETURE
For long, policyholders in India shunned term insurance plans in favour of endowment policies
Term insurance is the most basic life insurance policy where the only benefit is a compensation
past few years, unit-linked insurance plans (Ulips), which boast of a seemingly irresistible
combination of investment, insurance and tax saving. Insurance agents too have actively been
pushing Ulips as these have helped pump up premium volumes. While the level of premium has
gone up, the purchase of protection has not been commensurate with the growth in incomes.
There are other factors for rate reduction as well. These include deepening insurance penetration
and the reduction in solvency margins prescribed by IRDA and availability of better mortalitydata which helps companies ascertain the risks better. Insurers have been able to reduce cost
of high-value policies further because well-heeled urban Indians, enjoying the fruits of a
blossoming economy, are seeing marked improvement in mortality rates. Their life expectancy is
enhanced by the quality of their lifestyle and access to best-in-class healthcare facilities, leading
to low probability of death due to natural causes.
Consequently, insurance companies do not view offering them inexpensive term cover as a risky
proposition. This, coupled with the increasing demand from this segment, has swollen the
volumes, which in turn, have contributed to shrinking rates. Therefore, life insurers margins for
the term insurance portfolio havent come under pressure.
Sustaining the premiums at these levels doesnt seem likely to hit a roadblock in the future and,
in fact, there are signs that the market could see low-cost insurance scaling new highs in the
coming days. Offering pure term insurance at cheaper rates for HNI consumers is an idea,
which we might see more of in the near future, says Manik Nangia, corporate vice-president
and head, product management, Max New York Life Insurance.
The thumb rule for buying a protection cover dictates that the sum assured should be equal to
100 times the insureds monthly income. Though this estimate is generally considered to be
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accurate, there is a view that to ensure complete peace of mind, the basic term cover could be
enhanced with riders like critical illness and disability benefit. The rationale behind this
argument is that in the event of an accident resulting in severe physical impairment or a serious
ailment, the term cover will be rendered ineffective as it comes into play only after the insureds
death.
More complaints against insurance.
A 12 % jump in the number of life insurance policies sold in April-June this year has resulted in
only 0.95% rise in new premium
Collections as consumers preferred smaller investments in an economic downturn.
Life insurers collected Rs 14,456 crore as new premium in the first quarter of this fiscal
compared to Rs 14,320 crore during the corresponding period last year, according to data
released by the Insurance Regulatory and Development Authority (IrDA). The companies sold
84.5 lakh policies in this fiscal years first quarter.
State-run Life Insurance Corporation, meanwhile, collected Rs 9,028 crore from 59 lakh policies
in the first quarter, up 20% over the corresponding period of last fiscal. The public sector insurer
sold 48 lakh policies in the year-ago period.
The 23 private life insurers sold 25.4 lakh policies in this period, collecting Rs 5,427 crore in
premium from new products a decline of 20% on Rs 6,795 crore premium collections during
the corresponding period last fiscal year.
Insurance is not a priority when it comes to consumer spending. The maximum sale of
insurance products happens only during the last quarter of every financial year when consumers
look at ways to save tax, said an executive at a private insurer.
Officials from LIC of India, New India Assurance, Oriental Insurance, ICICI Lombard, HDFC
Standard life and SBI Life attended the seminar.
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Pratima Chatterjee (2009) pointed that a 12 % jump in the number of life insurance policies sold
in April-June this year has resulted in only 0.95% rise in new premium. Collections as
consumers preferred smaller investments in an economic downturn.
Sanjay Kumar, Jha, zonalmanager for north and head of pension business at Bajaj Allianz.
Sale of life insurance products remained flat during the first quarter of the current fiscal year.
Consumers prefer to invest smaller amounts in insurance products,
Life insurers collected Rs 14,456 crore as new premium in the first quarter of this fiscal
compared to Rs 14,320 crore during the corresponding period last year, according to data
released by the Insurance Regulatory and Development Authority (IrDA). The companies sold
84.5 lakh policies in this fiscal years first quarter.
State-run Life Insurance Corporation, meanwhile, collected Rs 9,028 crore from 59 lakh policies
in the first quarter, up 20% over the corresponding period of last fiscal. The public sector insurer
sold 48 lakh policies in the year-ago period. Account only 2.5% of the country's GDP, while
general insurance premiums are at only 0.65%.
The insurance sector in India offers immense growth opportunities. The potential can be judged
by the fact that today life insurance premiums
The sector has been thrown open for private participation, but the largest life insurance company
in India is still owned by the government, known as Life Insurance Corporation.
While the rest of the world is in grip of an economic downturn and the year 2009 is witnessing a
downtrend in the life insurance industry, with almost flat growth, India for the very first time hasbeen ranked amongst the top10 life insurance markets worldwide.
The facts, data and reports for the year 2008-09 state that insurance sector penetration, both in
life and non-life segments, has improved since the time the sector has been opened for private
participation.
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RESEARCH METHODOLOGY
NATURE OF RESEARCH:
Research Design is descriptive & exploratory in nature because descriptive research
deals with present and it is related with why, what, where, how.etc. And exploratory we
have to explore the data. It constitutes the blueprint for collection, measurement and
analysis of data.
RESEARCH TYPE:
The design used for carrying out this research is Qualitative in nature.
DATA TYPE:
In this research the type of data collection is:
Primary data
Secondary data
DATA SOURCE: The sources of collection of secondary data are:
Books
Websites
Magazine
Brochure
Data source: the source of collection of primary data
Questionnaire
Interview
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CHAPTER - 4
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ANALYSIS AND INTERPRETATION:
Data collection through questionnaire and personnel interview resulted in availability of
the desired information but these were useless until there were analyzed. Various steps
required for this purpose were editing, coding and tabulating. Tabulating refers to
bringing together similar data and compiling them in an accurate and meaningful
manner. The data collected by questionnaire was analyzed, interpreted with the help of
table, and pie chart.
Ques1. Age of the respondents:-
a) 20 30[ ] b) 30 40[ ] c) 40 50[ ] d) Above 50 [ ]
8%
32%
40%
20%
AGE
40 - 50
30 - 40
20 - 30
above 5
PARTICTULARS NO.OF.RESPONDENT PERCENTAGE
20 to 30 40 40%
30 to 40 32 32%
40 to 50 8 8%
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Above 50 20 20%
TOTAL 100 100
a) 40% of the respondents are between 20 to 30 years old.b) 32% of the respondents are between 30 and 40 years of age.
c) 8% of the respondents are between 40 and 50 years of age.d) 20% of the respondents are more than 50 years of age.
Ques2. Occupation of the respondents:-
a) Student [ ] b) Business [ ] c) Service [ ] d) Other
[ ]
12%
12%
36%
40%
OCCUPATION
stude
busine
servic
4th Qt
PARTICULARS NO.OF.RESPONDENT PERCENTAGE
Student 12 34%
Business man 12 12%
Service 36 36%
Other 40 40%TOTAL 100 100%
a) 12% of the respondents are businessmen.b) 12% of the respondents are students.c) 37% of the respondents are service.d) 40% of the respondents are in others category.
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Ques3. According to you, what you consider when you purchase the life insurance
policy?
a) Investment. [ ] b) Security. [ ]
c) Claim [ ] d) all of the above [ ]
50%
10%
10%
30%
CONSIDER ABOUT THE LIFE INSURANCE
POLICY
10% respondents said about investment. 10% respondents said about security. 30% respondents said about claim. 50% respondents said all of the above.
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Ques4. Which plan do you prefer?
a) Traditional [ ] b) Modern.[ ]
c) ULIP [ ]
25%
25%
50%
PREFERANCE
25% respondents want to prefer traditional plan.
25% respondents want to prefer modern plan. 50% respondents want to prefer ULIP plan.
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Ques5. According to you, what is your perception about life insurance?
a) To Help Pay for Your Children's Education. [ ] b) To Replace Lost Income.[ ]
c) To cover final expenses [ ] d) all of the above [ ]
50%
10%
10%
30%
PERCEPTION ABOUT THE LIFE INSURANCE
To Help Pay for Your Childre
Education.
To Replace Lost Income.
to cover final expenses
all of the above
50% respondents said life insurance is to help pay for your children education. 10% respondents said life insurance is to replace lost income. 10% respondents said life insurance is to cover final expenses. 30% respondents said life insurance to all above the features which we discuss above.
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Ques6. Are you satisfied with the returns which are given by the life insurance
company?
a) Yes [ ] b) No [ ]
80% are satisfied with the service given by the company. 20% are dissatisfied with the company.
Que7. What is the reason for dissatisfaction?
....
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Ques9. Which factor of the following you will be concern about while you are
purchasing a product?
a) Allocation [ ] b) Fund management [ ]c) Fund administration [ ] d) All of the above [ ]
15% are concern about allocation when purchasing the product.
10% are concern about fund management when purchasing the product
15% are concern about fund administration when purchasing the product 60% are concern about all of the above when purchasing the product
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Ques10. Which is your biggest concern for future?
a) Child education [ ] b) Retirement [ ]c) Childs marriage [ ] d) Medical illness [ ]
45% respondents future concerned was child education.
2O% respondents future concerned was retirement. 15% respondents future concerned was child marriage.
20% respondents future concerned was medical illness.
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FINDINGS
The respondents in the age group of 20-30 are more inclined towards the life insurance
products.
While invest in the life insurance policy 90% are aware about the company in the market.
The 50% respondents perception that child education is the biggest benefit of life
insurance is.
The 80% respondents are satisfied with the returns which are given by the company.
Some respondents are dissatisfied due to the not proper information in beginning and
long term time process.
The 50% respondents prefer the ULIP plan.
The 80% respondents aware about the competition in the market between life insurance
companies.
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CONCLUSIONS
The study has been conducted on Bharti AXA Life Insurance Company Limited and the main
objective of the study was to examine the customers perception and satisfaction level towards
the products of the company. A descriptive and exploratory research design has been adopted
and a sample of 100 respondents was taken from the Gurgaon city. Convenient sampling
technique has been used to choose the sample unit. It was found that the most of the respondents
are aware about the benefits of insurance and have high preference towards life insurance
products. They invest in these products due to a number of reasons, viz., child education, and
retirement benefit, safety of their family in case of death and also for return. The majorities of
the respondents are aware about the companys name but may not find it suitable as it is a new
company and still required to build-up trust amongst the customers. Thus it is suggested that the
company should invest more in advertising and brand building to build the trust and to reach to
the customers.
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BIBLIOGRAPHY
BOOKS
Kothari, C.R. (2005),Research Methodology, New Age International (P) Ltd.
Kotler, Philip (2005), Marketing Management, Pearson Education.
Parsuram A, Grewal Dhruv, Krishnan R (2004), Marketing Research, Biztantra.
Ramaswamy and Namakumari, Marketing Management-Global Prospective, Macmillan
Business Books.
NEWSPAPER
Paramita Chatterjee (2009), Lifeless premium collections upset coverage, The
Economic Times of India, July 29
MAGAZINES & JOURNALS
Business Today
Economics Times
WEBSITES
www.bhartiaxalifeinsurance.com
www.lic.com
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