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Dehradun

SUMMER INTERNSHIP PROGRAM

INVESTOR’S PERCEPTION ABOUT WEALTHSURANCEAS AN

OPTION OF INVESTMENT

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SUMMER INTERNSHIP PROGRAM

FINAL REPORT

SUBMITTED BY

A report submitted in partial fulfillment of theRequirements of MBA Program of IBS, Dehradun

AUTHORISATION

The person is fit and proper for the award of successful completion of the Summer Internship

Program.

IDBI Fortis Life Insurance Co. Ltd.

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ACKNOWLEDGMENT

Success is not a destination, but a journey-it is often said. I realized it even better during mySummer Internship Program. When I completed this journey, I may not have come this far without help, guidance and support of certain people who acted as guides, friends and torch bearers along the way.

I am also indebted to the staff of IDBI FORTIS as without their indispensable cooperation the project would not have been taken tangible form. I would also like to thank individual investorswho spared their invaluable time for the meetings and helped me to gain practical experiencewhich formed a critical part of the report.

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TABLE OF CONTENTS1. ABSTRACT………………………………………………………………

…4

2. INTRODUCTION…………………………………………………………

62.1 Types of

Investors……………………………………………..6

2.2 Project Implementation andMethodology………...7

2.3 Scope of theproject…………………………………………...7

2.4 Limitations of the

project…………………………………..8

3. CURRENT SCENARIO OF INSURANCE INDUSTRY…………8

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4. INSURANCE- ANOVERVIEW………………………………………..9

5. LITERATURE REVIEW………………………………………………13

5.1 Investment based Classification………………………13

5.2 Types of Insurance Benefits Offered………………..15

6. COMPANY PROFILE………………………………………………….17

7. PRODUCTS OFFERED BY IDBI FORTIS……………………...17

8. ABOUT WEALTHSURANCE PLAN………………………………18

8.1 How To Get WealthsurancePlan……………………...19

8.2 Advantages of WealthsurancePlan………………….20

9. DATA ANALYSIS…………………………………………….10.MODUS OPERANDI………………………………………… 21

10.1 IntroductoryVisits………………………………………….21

10.2 Follow-up Visits……………………………………………...21

10.3 Follow-up PhoneCalls……………………………………..21

11.FEEDBACK RECEIVED………………………………………………22

12.LEARNINGS………………………………………………………….24

13.FINDINGS……………………………………………………………25

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14.SUGGESTIONS………………………………………………………..

15.CONCLUSION…………………………………………………………….

16.REFERENCES……………………………………………………………

..

17.ANNEXURE…………………………………………………………………

1) ABSTRACT

Insurance industry in India is relatively new with a lot of untapped market. India is the seventh

largest country in the world with a population of around 1100 million. India is the second most populous country in the world, next only to China. The middle class segment is 250 million

strong having aspirations and ambitions. India’s GDP is growing at an average of 9% for last few

years except the last year due to global meltdown. Total premium of all life companies is only

4% of GDP. Hence we can anticipate the potential which is there for the insurance companies in

India to grow. The industry today is facing stiff competition, with many private companies

fighting for a bigger mind share and market size. India is having 2.5 million agents who are

doing insurance business in the country.

This project entails meeting customers so as to understand their perception about the

Wealthsurance product from IDBI FORTIS. By meeting different customers and understanding

their perceptions about the Wealthsurance, I will be doing the market survey of what common

people thinks for insurance products for private companies. The underlying motive is to make

sure that through this detailed survey in the city of Dehradun, I should be able to give the

feedback to the company about their product and what can be done to increase the market share

of this company in Indian market.

The different phases of the

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♦ Meeting the customers for selling the Wealthsurance.

♦ Getting the understanding of the market about the perceptions of customers regarding the

private companies for insurance in India.

♦ Comparison of various insurance schemes of IDBI FORTIS with its competitors.

Till now I had been concentrating the first two parts and comparison of different schemes will be

done later.

During my internship with IDBI FORTIS, I have managed to get an overview of insurance

industry in India and the different products which IDBI FORTIS is offering. I have been helping

the organization with direct selling of its Wealthsurance in the Dehradun city and getting the

feedbacks from different investors/customers about the product. My job at the company required

me to be updated about the latest developments in the Insurance industry so that I will be able to

speak confidently to various customers. This gives great opportunity of learning about the ups

and downs of the market and it is indeed a very enriching experience working in this company.

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1) INTRODUCTION

My Summer Internship program at IDBI FORTIS has given me an immense exposure to

corporate culture as well as the investment scenario in insurance industry. My SIP started on 23 rd

February and the journey started from there.

My project aims at the perceptions of investors about the wealthsurance plan of IDBI FORTIS

and understanding about the strengths and weaknesses of each product of IDBI FORTIS and

how to approach each investor effectively. In 2nd phase I will be comparing various plans of

IDBI FORTIS with its competitors.

2.1) Types of Investors:

To understand the role of intermediaries, it is essential to understand the types of investors who

invest in Insurance.

(a) Safe investor: These investors want to invest in debt because they don’t want to take risk

and they will not get high returns as they are not ready to take high risk. They generally

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want to invest their money in the fixed deposits and bank savings account as they will get

guaranteed returns and safety from that product.

(b) Aggressive investor: These types of investors are very aggressive and are ready to take

high risk. They are the regular player in the market. They generally invest their money in

the equity or stock market as they want high returns.

(c) Active investor: An active investor is one who understands the risk and return involved in

equity market exposure and shows strong exposure for higher returns and is willing to

bear high risk. These investors switch their funds from one type to another type regularly.

Their long term returns on an average is approximately 15%-20%.

(d) Focused investor: These types of investors are focused for their specific purpose like

children’s marriage, children’s education or their retirement purpose. So they have invest

money for their future requirement.

(e) Umbrella investor: These types of investors diversify their risk and invest in different

type of securities (equities, debt, bonds, and fixed deposit). They generally do this

because they want balanced growth of portfolio. Their long term and short term planning

should be possible. Also for hedging against market related risk.

2.2) Project Implementation/Methodology:

Various steps/phases which are involved in executing in the project are:

1). Planning about which project to undertake by discussing with faculty guide and company

guide. Then I got the detailed training about the various plans of insurance and client services.

Then I had gone through the literature about insurance from the IRDA module material given by

IIA to get the indepth knowledge about the insurance industry.

2). To check our knowledge and being able to guide clients successfully on managing their

wealth, we were given the work of promoting their wealthsurance plan. In that we were given

two days product training and told to sell the wealthsurance plan in the market and try to

convince them to increase their investment with us.

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3). Then I am also visited various offices, hence I get chance to interact with the investors. They

ask for advice as to which fund of IDBI FORTIS is doing well. Before giving any advice, I asked

them few basic questions like how much risk they are willing to take and for how long they want

to invest. Then I suggested them the best fund from the basket of funds that IDBI FORTIS is

having with different investment objectives.

4). Comparison of various insurance schemes and its competitors will be done in the last

phase of the project. With the help of competitor analysis, the company will be able to judge the

area where it is lagging behind.

2.3) Scope of the project:

Since Insurance industry has lot of potential to be tapped as people are still getting aware of

insurance products, which means that there will be lot of opportunities in this industry in coming

years. This project is aimed at developing and maintaining the good rapport about IDBI

FORTIS in the minds of the investors and also to know their perception about it.

2.4) Limitations:-

1). Some of the investors were not having the required knowledge about insurance industry and

schemes offered by IDBI FORTIS.

2). People in smaller towns and rural areas are still not aware of the benefits of investing in

insurance plans, they are still investing their income in FD’s in banks and in post offices.

3) Current scenario of insurance industry

The insurance industry, as an integral part of the financial services industry does not stand apart

from the profound changes in the financial sector. Recently we are witnessing an enhanced

competition in the insurance industry probably due to the opening up of this sector to private

participants. There is a close inter-action between insurance and economic growth. As economy

grows, the living standards of people increase. As a consequence, demand for insuranceincreases. As the assets of people and of business enterprises increase in the growth process, the

demand for general insurance also increases. In fact, with the widening of the economy, the

demand for new types of insurance products emerges. Insurance now extends not only to product

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market but also to service industries including finance. It is equally true that growth itself is

facilitated by insurance. The global consolidation of the financial services sector is in large part

driven by acquisition activity. Companies competing for a greater share of consumer funds are

seeking quick access to new markets, new products and new channels of distribution, both

domestically and economically.

After Indian insurance market’s record-breaking growth in the first months of 2007, many

international players are eyeing the life, non-life and health insurance market of India. A good

number of companies have already got licensed from IRDA such as HSBC, Future Generali Life

Assurance, Future Generali India Insurance Company, Apollo DKV Insurance, Principal PNB

Life Insurance, and Universal Sompo General Insurance. Indian Banks and businesses are also

welcoming foreign players as they are looking to diversify their businesses into the ever-growing

and as yet untapped field of life and non-life insurance market. Meanwhile the German based re-

insurance hotshot Munich Re is planning to enter life and non-life, both insurance segments via

its insurance company Ergo.

Insurance penetration has increased from about 1.5 % to 2% of the population. Selling insuranceis no longer a part-time job. For most consultants it is a full-time job. Although insurance is

supposed to be solicited, competition is so severe; it is now being aggressively sold. Several

innovative marketing avenues have opened up, like banking channels, departmental stores,

telemarketing, mailers etc for marketing insurance. Presence of IRDA- industry watch dog.

Many insurance companies have registered 3-digit growth figures recently. For example, SBI

Life has shown 210 % growth in its business last fiscal year and Life Insurance Corporation

(LIC) grew by 118%. This has also led many analysts to aggressively evaluate the insurance

companies.

Another business model that is fast catching up and becoming popular, is the combining of

insurance and banking into a single entity known as bancassurance. Bancassurance has

contributed substantially to the premium accretions of the financial players in the business.

Bancassurance also raises possibilities of collaboration of multiple players for providing better

insurance options. It works this way; one insurance company might tie-up with a bank having a

presence in urban areas and another bank having a better reach in rural areas. Most importantly,

it will generate new business opportunities for agents and would simultaneously provide reliable

insurance cover to the population.

In altogether a twist of a different kind, recently, Bombay High Court ruled in favour of policy

trading and allowing private players to trade policies in secondary market, which may be

contested, by LIC in the Supreme Court. If favored, this opens up immense possibilities.

4) Insurance: An Overview

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Insurance is a tool by which fatalities of a small number are compensated out of funds

(premium payment) collected from plenteous. Insurance is a safeguard against uncertain events

that may occur in the future.

It is an arrangement where the losses experienced by a few are extended over several who

are exposed to similar risks. It is a protection against financial loss arising on the happening of an unexpected event. Insurance companies collect premium to provide security for the purpose.

Loss is paid out of the premium collected from people and the insurance companies act as

trustees to the amount so collected. These companies have proposal forms which are filled to

give details of insurance required. Depending upon the answers in the proposal form insurance

companies assess the risk and decide on the premium.

Insurance companies are risk bearers. They underwrite the risk in return for an insurance

premium. the function of insurance is to provide protection, prevent losses, capital formation etc.

hence insurance can be defined as a tool in which a sum of money as a premium is paid by the

insured in consideration of the insurer’s bearing the risk of paying a large sum .it may also be

defined as a contract wherein one party (insurer) agrees to pay the other party (insured) or his

beneficiary, a certain sum upon a given contingency against which insurance is required.

Insurance industry commands massive funds through sales of insurance products to large

number of clients. Insurers also create liabilities and commit themselves to compensate for losses

occurring to the policyholders on future date. It also plays an important role in process of capital

formation.

Nature of Insurance

a) Risk sharing and risk transfer: Insurance is used to share the financial losses that might

occur to an individual or his family on the happening of specified events. The loss arising from

such events are shared by all the insured in the form of premium.

Example: suppose in a village, there are 250 houses, each valued at Rs.200000.Every year one

house gets burnt, resulting into a total loss of Rs 200000.If all the 250 owners come together and

contribute Rs.800 each, the common fund would be Rs200000.This is enough to pay to the

owner whose house gets burnt. Thus the risk of one owner is spread over 250 house owners of

the village.

b) Risk assessment in advance: Insurance companies are risk bearers. They assess the risk

before insuring to charge the amount of premium.

c) Its not gambling or charity: The uncertainty is changed to certainty by insuring property and

life because the insurer promises to pay a definite sum at damage or death. Insurance is antithesis

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of gambling. Failure of insurance amounts to gambling because the uncertainty of loss is always

looming. Moreover insurance is not possible without premium. So it is different from charity

because charity is given without consideration.

d) Huge number of insured people: It is essential to insure larger number of people or property

to make cost of insurance less consequently premium would also be less.

e) Assists in capital formation: Insurance provides capital to society. Accumulative funds are

invested in productive channels.

Basic Terminologies:

1. Risk: It is defined as an uncertainty of a financial loss. It is the unintentional decline in or

disappearance of value arising from contingency.

2. Policy: It is the document which embodies the insurance contract

3. Whole life policy: It is the policy under which the amount of policy will be paid only on

death of the insured. Premiums may be payable throughout the life or for a limited

period.

4. Endowment policy: Endowment policies entitle the insured to receive the amount of the

policy on his reaching a certain age and premiums also stops. If death occurs earlier,

amount of the policy will be paid at that time and payment of premium will also stop atthat time.

5. Claim: It is the amount which an insurer has to pay against a policy.

6. Reinsurance: It refers to placing a part of the risk by an insurer with another insurer. The

object is to reduce the possible loss to be borne by the original insurer, who pays

premiums at the ordinary rates to the reinsurer. Reinsure must pay commission to the

original insurer.

7. Premium: A periodic payment made on an insurance policy.

8. Insurance penetration: It is defined as insurance premium as a share of gross domestic

product.

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9. Insurance density: Insurance density is defined as per capita expenditure on insurance

premium i.e. premium per capita.

10.Actuary: The actuary is a specialist who combines an understanding of risks and

mathematical technique to develop financial products to manage these risks, price these

products. He helps in designing insurance plans and then evaluates the financial risk of

the company which it takes while selling an insurance policy.

Advantages of life insurance:

• Life insurance has no competition from any other business. Many people think that life

insurance is an investment or a means of saving. That is not a correct view. When person

saves, the amount of funds available at any time is equal to the amount of money set

aside in the past, plus interest. This is so in a fixed deposit in the bank, in national

certificates, in mutual funds and all other savings instruments. If the money is invested in

buying shares and stocks, there is the risk of the money being lost in the fluctuations of

the stock market. Even if there is no loss, the available money at any time is the amount

invested plus appreciation. In life insurance, however, the fund available is not the total

of the savings already made (premiums paid), but the amount one wished to have at the

end of the savings period (which is the next 20 or 30 years). The final fund is secured

from the very beginning. One is paying for it over the years, out of the savings. One has

to pay for it only as long as one lives or for a lesser period, if so chosen. The assured fund

is not affected. There is no other scheme which provides this kind of benefit. Therefore

life insurance has no substitute.

• A comparison with other forms of savings will show that life insurance has the following

advantages:

1. In the event of death, the settlement is easy. The heirs can collect the money quicker,

because of the facility of nomination and assignment. The facility of nomination is

now available for some bank accounts, provident funds, etc.

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2. There is certain amount of compulsion to go through the plan of savings. In other

forms, if one changes the original plan of savings, there is no loss. In insurance, there

is a loss.

3. Creditors cannot claim the life insurance moneys. They can be protected against

attachments by courts.

4. There are tax-benefits, both in income tax and in capital gains

5. Marketability and liquidity are better. A life insurance policy is property and can be

transferred or mortgaged. Loans can be raised against the policy.

6. It is possible to protect a life insurance policy from being attached by debtors. The

beneficiaries’ interests will remain secure.

• Life insurance is not only the best possible way for family protection. There is no other

way.

• The terms of life are hard. The terms of insurance are easy

• Insurance is the only way to safeguard against the unpredictable risks of the future. It is

unavoidable.

• Life insurance is not surpassed by any other savings or investment instrument, in terms of

security, marketability, stability of value or liquidity.

• Life insurance helps people live financially solvent lives.

BENEFITS OF ULIPS AGAINST TRADITIONAL INSURANCE PLANS

Traditional Plans:

• No clarity on costs and charges. Premiums are deposited in a common fund part of which

goes for risk cover and expenses and the rest for investment.• No transparency and the customer is unaware as to how his fund is growing.

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• Actuarial valuation exercise determines the surplus. Bonuses are declared from the

distributable surplus to policy holders. The surplus is dependent on the experience on

mortality charges and expenses

• No choice of investment fund options

• No transparency on the surrender values. A surrender value factor is applied throughout

term• An inherent risk of cross subsidy of one product in favour of another.

ULIPS

• Provide all upside returns which the market offers

• Downside risk is contained by the safety not in the form of minimum guaranteed returns.

• Flexibility in the choice of fund options and premium payment

• Policies do not lapse till policy fund lasts

• Liquidity available through withdraw and from the policy fund

• No surrender charges after the first 4 policy years

• Total transparency on loads and charges, NAV and portfolio disclosure.

HOW NAV IS CALCULATED?

Current Market/ Fair value of scheme’s Investments+ current assets+

Accrued Income-Current Liabilities-Provisions

NAV =-------------------------------------------------------------------------------------------

Number of units outstanding

NAV is dependent upon certain factors which are as follows:

• Current market: if the market increases then the value of NAV also increases and if the

market decreases then the value of NAV also decreases

• Current Assets: if the current assets increases then also the value of NAV increases

• Accrued Income: if this increases then also the value of NAV increases

• Current Liabilities: if current liabilities increases then the value of NAV decreases

• Provisions: if the provisions increases then the value of NAV decreases.

NAV is the most important for the ULIPS because the name ULIP means (Unit Linked Insurance

Plans) and the value of units are calculated by the above formula.

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Everyday NAV is calculated on the basis of market scenario of that day and it totally depends

upon the market, if market is on the bull side then your investment will grow and if market is on

bearish side then there is risk in your investment.

5) LITERATURE REVIEW5.1) Investment Based Classification:

WEALTHSURANCE may also be classified on the basis of securities in which they invest.

Basically, it is renaming the subcategories of return based classification.

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(a) Fixed return options:

• Monthly interest account: gives you interest at a declared rate on the balance in your

account. The interest rate for the account is declared by us every month in advance.

The rate can change in line with prevailing market interest rates.

• Guaranteed return funds: give your minimum fixed, assured return for a specified

period. The fund matures on a specified date and carries a minimum guaranteed

maturity value per unit. On maturity date, you will receive the net asset value or

guaranteed maturity value, whichever is higher, for the units you hold.

(a) Capital guaranteed options: these funds guarantee the return of atleast the face value of

each unit on the specified maturity date. The fund invests in equity using capital

protection techniques. The return depends on the performance of the fund’s equity

portfolio.

(b) Market fund options: similar to mutual funds. Choose these funds when you want market

linked returns by investing in stocks, fixed income, or money market.

• Equity Growth fund: seeks to invest in the listed stocks and aims to generate high

returns by picking stocks that have growth prospects. It aims to diversify risk by

investing in large cap as well as mid cap stocks and across multiple sectors.

• Nifty Index Fund: invests in nifty stocks and aims to track the nifty index as closely

as possible. The fund portfolio aims to mirror the nifty.

• Bond Fund: seeks to invest in fixed income investments and aims to generate returns

from interest coupons and opportunities in the changing yield curve. Duration of the

portfolio may be high or low, depending upon market conditions.

• Income Fund: aims to generate returns by seeking to invest in fixed income

investments that carry low or medium market risk.

• Liquid Fund: seeks to invest in overnight money and other money market

instruments.

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(a) Asset Allocator Fund: choose these options when you want us to manage your investment

allocation. In asset allocation funds, our fund managers choose how much to invest in

stocks, fixed income or money market instruments based on market conditions. You have

to only choose your risk profile which can be cautious, moderate, or aggressive. The

equity component may go up to 25% in cautious, 50% in moderate and 100% in

aggressive. Asset allocator funds are the funds of funds which invest in the other

investment options within IDBI Fortis investment basket including the market linked

funds.

Make your personal wealth plan by choosing what you need.

5.2) Types of insurance benefits offered

(a) Life and terminal illness benefit: automatic benefit available to all. All you have to do is,choose your amount.

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• Death benefit: death benefit will be paid in the event of death of the insured person.

You can choose your sum insured. Benefits paid will be sum insured or fund value,

whichever is higher.

• Terminal Illness Benefit: terminal illness benefit is a unique feature of wealthsurance

plan. It is an accelerated payment of death benefit which will be paid if the insured

person is diagnosed as terminally ill and is expected to live for not more than six

months.

(a) Health Insurance benefits: choose these benefits to protect yourself against serious

diseases and any hospitalization.

• Major Diseases Benefits: if the insured person is diagnosed with any of the 17

specified major diseases, a lump sum cash amount is paid as benefit to take care of

medical expenses, loss of earning and lifestyle adjustment. The lump sum amount is

decided by you.

• Hospital Cash benefit: if the insured person is admitted to a hospital for the treatment

of any illness or injury, a daily cash allowance and other benefits as specified are

paid. Higher cash allowance is paid if admitted to ICU. The benefit package can be

chosen by you.

(a) Accident Benefits: choose these benefits for the protection against accidents.

• Accident death benefit: in the event of death of the insured person due to an accident,

an additional lump sum cash amount is paid.

• Accident Death and Disablement Benefit: in the event of death or permanent

disablement of the insured person due to an accident, a lump sum cash amount is

paid. Different types of accidental injuries are covered.

(a) Waiver of premium benefits: you can choose to have premiums waived upon death or

disablement.

• Waiver of premium benefit on death: in the event of death of the policy owner,

future regular premiums are waived and treated as paid.

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• Waiver of premium benefit on total and permanent disablement: in the event of

total and permanent disablement of the policy owner resulting in

(a) Inability to engage in any occupation, employment or business.

(b) Loss of use of limbs or sight

(c) Loss of independent living, the future regular premiums are waived and treated as

paid.

6) COMPANY PROFILEIDBI FORTIS LIFE INSURANCE COMPANY LTD.

Vision Statement:

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To be the leading provider of wealth management, protection and retirement solutions that meets

the needs of our customers and adds value to their lives.

IDBI FORTIS Life Insurance Company Ltd is a joint venture between three leading financial

conglomerates – India’s premier development and commercial bank, IDBI, India’s leading private sector bank, Federal Bank and Europe’s premier Bancassurer, Fortis, each of which

enjoys a significant status in their respective business segments. In this venture, IDBI owns 48%

equity while Federal Bank and Fortis own 26% equity each.

IDBI Fortis launched its first set of products across India in March 2008, after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA). Today, we

offer our services through a vast nationwide network across the branches of IDBI Bank and

Federal Bank in addition to a sizeable network of advisors and partners.

At IDBI Fortis we endeavor to deliver products that provide value and convenience to the

customer. Through a continuous process of innovation in product and service delivery we intend

to deliver world-class wealth management, protection and retirement solutions to Indiancustomers.

Structure of the company

Mr. G. N. Nageshwarao (CEO)

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Mr. Murli Iyer (National Head)

Lokesh Sapra (Zonal Manager)

Mr.Shiv Dadar Mr. Navin TekwaniArea Agency Head State HeadIDBI Fortis, Dehradun

Mr. Premjit Sagolsem

A.B.M., UK UP Alliances

7) Products offered by IDBI FORTIS Life Insurance Company limited

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Scheme Name Objective

Wealthsurance Plan Wealthsurance is a wealth-management account with sub-accountsfor investments and insurance. It is designed to meet twin goals of wealth-building and insurance protection.

a. Wealth building – The Wealthsurance Investment Accountholds all the investments you have chosen. Theinvestments made out of your premium allow you tomanage and build your wealth.

b. Insurance Protection – The Wealthsurance InsuranceAccount holds the insurance benefits you have chosen,which allows you to claim benefits in the event of a seriousailment, disablement, accident or death

Bondsurance Bondsurance is a single premium plan which allows you to make a

one-time investment and get a guaranteed amount on maturity.You can choose a maturity period of 5 or 10 years for your investment. At the end of the chosen period, you will receive aguaranteed maturity amount.

Besides the guaranteed maturity amount, Bondsurance also provides a life insurance cover. In case of death before thematurity date, a Death Benefit which is also guaranteed will be paid

Homesurance Homesurance is a mortgage reducing term plan which offers

protection to you and your family from your home loan liability.

The plan provides a cover equal to the outstanding balance of your home loan in the unfortunate event of expiry of the insured.

You will get:

A. Protection against Loan Liability

B. Cover for Terminal Illness

C. Optional Insurance Benefits

Termsurance

Grameen

Suraksha

IDBI Fortis Termsurance Grameen Suraksha is a low cost simple

term individual insurance plan targeted at the rural population.It is an ideal plan to protect your family members in the event of

unfortunate demise of the major income earner

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Group

Microsurance

The IDBI Fortis Group Microsurance Plan provides affordable life

insurance cover to groups. The plan is extremely useful to Micro

Finance Institutions, Self Help Groups and NGOs to insure the

lives of their group members and thus provide security to the

group member’s families. The plan can also be used for providing

loan protection to the group member’s families.

Retiresurance

Plan(new)

It allows you to save for the golden years but also offers you a

wide choice of investment options to grow and multiply your

wealth. This plan is extremely flexible and offers several choices

so as to suit your savings habit and investment risk preferences.

Thus IDBI Fortis Retiresurance Pension Plan can thus be your

ideal investment partner in ensuring a happy retirement.

8) About wealthsurance plan

IDBI FORTIS Life Insurance Co. Ltd. presents the wealthsurance foundation plan- a unique

insured wealth plan. It lets you create a personalized wealth plan by allowing you to choose

from a wide range of investment options. What’s more, it can also protect your wealth plan

against various uncertainties that could hamper the wealth building process. Thus it helps you to

meet cherished goals, because wealth grows better under a protective cover.

8.1) How to make your wealthsurance plan?

You can make your wealthsurance plan, quickly and easily.

• Ready Plans: you can choose from amongst our ready plans for typical needs. A ready

plan is a set of pre-chosen options aimed at a specific need.

1. Wealthsurance for systematic investments

2. Wealthsurance as protection account

3. Wealthsurance as tax free MF account.

4. Wealthsurance for retirement planning

5. Wealthsurance for one-time investment into equity

6. Wealthsurance for a guaranteed return

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• Custom Plan: if a ready plan does not meet your needs, a custom wealthsurance plan can

be made for your specific needs with 5 simple steps:

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8.2) Advantages of wealthsurance plan:

• Plan your premium

• Withdrawals and surrender

• Plan your term

• Tax benefits

• Monitor and change your investment options

• Create funds for loved ones

• Low and equated charges

• Full transparency

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9) DATAANALYSIS

For the purpose of the study a sample survey has become very necessary. The sample collection

includes around 150 investors in the Dehradun city. A detailed analysis is given below-

Market share of LIC and Private Players

Market

Players

Market share

in percentage

Private players 42.05

LIC 57.95

Total 100

Interpretation:

LIC market share continued to decline in the period up to March 2009, it declined to 57.95%

from 61.91% in the same period last year. On the other hand the market share of the private

players is continuously growing up.

Market share of LIC and Private Players

Sales Growth among Private players

Page 1 of 119



Interpretation:

Page 2 of 119

Private players growth in

percentage

(from 08 to 09)

ICICI Prudential -23.82

Bajaj Allianz -33.36

SBI Life -10.25

HDFC Standard 4.75

Reliance Life 42.77

Birla Sunlife 42.49

Kotak Mahindra

Old Mutual

22.53

Met Life 36.87

Aviva -30.69

Tata AIG 18.79

IDBI FORTIS LIFE 2560.71

Max New York 16.76

ING Vysya -5.45

Bharti Axa Life 155.70

Sahara

Life

6.89

Future Generali

Life

33519.84



Private sector sales continued to be robust year to year (YoY). Among the larger players,

Reliance, IDBI FORTIS Life, Future Generali Life and Birla Sun Life continued to be the rising

stars with the fastest YoY growth rates.

Gender Composition

INTERPRETATION

Table no -As per the data out of total 150 respondent 55% of the total respondent are male

client amounting to 83 number, followed by female customer amounting to 67 which is 45% of

the total sample size. that means there is also great opportunity for the firm to tap the female

segment .

AGE PROFILE

Page 2 of 119

GENDER

COMPOSITION

NO OF

CLIENT

FEMALE 67

MALE 83



INTERPRETATION

It gives the age profile of different client it has been observed that out of 150 client surveyed

most of the client belongs to the age group of 31-50 years ,followed by age group of below 30

years age, followed by age group of 51-60 years and in last above 60 years of age.

Annual Income

Table 5.3

INCOME LEVEL NO OF CLIENT

LESS THAN

100000 40

100000-300000 31

300000-500000 50

ABOVE 500000 29

Page 1 of 119

AGE GROUP

NO OF

CLIENT

Below 30

years 26

31-50 years 58

51-60 years 22

Above 60

years 9



INTERPRETATION

Table no -As per this

table it discloses the

income level of the

client it is clear from

the table that most of

the client are falling in

the income level of

300000-500000 which is coming to 50 followed by less than 100000 is 40, Above 500000 is

29. It is recommended that specific planning should be done to tap the untapped segment.

INVESTMENT OPTION

INTERPRETATION.

Page 1 of 119

INVESTMENT

OPTION NO OF CLIENT

SHORT TERM 74

LONG TERM 24

BOTH 52



As per the table, out of the total respondent of 150 most of the client opt for short term

investment followed by both and the least one is the long term option. So monthly investment

seems to be the best way to accumulate the wealth after the annual option. So there should be

such type of product to facilitating investing on monthly basis.

Various investment alternatives available to consumers

Let us see what are the various investment alternatives that are available to the people and

among that which are the most preferred one. Now, from the data collected from the 150

respondents which were surveyed through the questionnaire, the following representation can be

made:

Investment

Alternatives

Total

score

Rank

Bank Deposits 6.75 I

ULIPS 6.46 II

Post office 5.57 III

Gold & Silver 5.33 IV

Real Estate 5.07 V

Mutual fund 4.83 VI

Equity/Shares 3.84 VII

Public Provident

Fund(PPF)/KVP/NSC

3.78 VIII

Bond & Debentures 1.74 IX

Page 1 of 119



Interpretation:

From the above table-2.5 it can be seen that ranks for theses investment alternatives where

analyzed by weighted average method. From this analyze we found Bank Deposits is the most

preferred investment alternative among the people with the average of 6.75, secondly Insurancewith the average of 6.46, followed by other investment alternatives like Post Office (5.57), Gold

and Silver (5.33), Real Estate (5.07), Mutual Fund (4.83), Equity (3.84), PPF (3.78) and least

preferred alternative is that Bond and Debenture (1.74).we understood from this analyze that

people prefer the safe and secure investment alternatives like bank deposits, insurance, real

estates, than risky investment alternatives like bonds, equities etc.. The reason that can be

attributed for the liking of people towards bank deposit is that people expect safety for their

money they deposit even though there is less appreciation on their deposit. Secondly insurance,

may be because that insurance provides both life cover as well as security to the holder of the

policy and also to the family members of the insurance holders. Now a days insurance is also

providing option to invest in the markets through plans like ULIP, which gives the holder both

the life cover as well as an opportunity to earn income at the market rate. Then recently real

estate is the major investment alternative among the people particularly among Erode, this is

mainly due to the increase in land value and also good long term investment preference. Gold

and silver also good investment alternative among people due to the frequent appreciation in the

values of gold, next is that mutual fund which is also the preferable investment alternative due to

low risk on their investment, and other alternatives which are not much preferred were equities,

bonds etc. mainly due to the risk involved in it.

Various investment alternatives available to consumers

Page 1 of 119



6.756.46

5.575.33

5.074.83

3.843.78

1.74

0

1

2

3

4

5

6

7

T o t a l s c o r e s

Investm ent Alternative

Investment Alternative Preffere d by peo Bank Depos its

Insurance

Pos t office

Gold & Silver

Real Estate

Mutual fund

Equity/Shares

Public Provident

Fund(PPF)Bond &

Debentures

Awareness

about

Wealthsurance product of IDBI FORTIS

Page 2 of 119

Awareness about

Wealthsurance

No of

Respondent

Yes

No

63

87

Total 150



Interpretation:

Now coming to the point of awareness among the people about wealthsurance, the response

was very disappointing from the point of view of the company. Out of 150 respondents 87

respondents did not have the knowledge about the wealthsurance plan of IDBI FORTIS,

while the rest 63 had knowledge of the wealthsurance plan of IDBI FORTIS. This is because

of less marketing and being a new company.

Persons interested to invest in Wealthsurance Plan

Page 2 of 119

Persons interested

to invest in

Wealthsurance

No of

Respondent

Yes

No

73

42

Total 115



Reason for investing in Wealthsurance

Page 2 of 119

Reasons why

persons are

interested toinvest in

Wealthsurance

No of

Respondent

Brand image

Diversity

Growth potential

Transparency

Utmost good faith

18

11

17

17

52

Total 115



Perception of investors about Wealthsurance plan

Important criteria before taking a life insurance policy

On the basis of insurance policy:

Now, let us see what criteria people consider most important before taking a life insurance policy (the

criteria for the study have been mentioned before). Here, the highly important criterion as perceived

Page 2 of 119

Perception of

investors aboutWealthsurance

No of

Respondent

Excellent

Very Good

Good

Bad

Not Interested

18

58

17

15

42

Total 150



by the people is rated as 5, if people perceived that is only important it is rated 4, if people perceived

that it can be only neutrally important is rated as 3, then the least important criterion is being rated as

2 and if perceived that it is not important it is rated as 1(as there are 8 criteria that have been

suggested under the research study). Here the number of respondent is only 115, because those 35

people who do not have any life insurance policy have been excluded from the purview of the study.

Premium

Rating No of

Respondent

Percentag

e

5

4

3

2

1

59

36

13

7

_

51.3

31.3

11.3

6.1

_

Insurance

Users

Non Users

Total

115

35

150

100

Premium

Page 1 of 119



Interpretation:

Now if we consider one of the criteria we can see that 51.3% of the respondent has rated

premium as the highly important thing that they consider before taking any insurance policy

from any company, and nobody has rated it as the not important criterion. So, it can be clearly

interpreted that premium that the policy holder has to pay to continue his/her policy plays a very

important role before selecting the terms and conditions of the policy and also the company from

which the policy is to be taken

Charges

Rating No of

Respondent

Percentag

e

5

4

3

2

1

68

27

12

8

_

59.1

23.5

10.5

6.9

_

Page 2 of 119



Insurance

Users

Non Users

Total

115

35

150

100

Interpretation:

Now if we consider the charges the customer has to pay to the insurance company like Fund

Management charges, administration charges etc. most of the people nearly 60% respondent

consider it as an highly important criterion which can dictate the terms before deciding on

whether to take the policy or not. But a few people (only 22.4% of the total respondents),

consider it to be the important criterion before taking the decision on life insurance policy.

Charges

Page 2 of 119



Policy Term

Rating No of Responde

nt

Percentage

5

4

3

2

1

36

51

18

10

_

31.4

44.4

15.6

8.6

_

Page 2 of 119



Insurance

Users

Non Users

Total

115

35

150

100

Interpretation:

The tenure of the policy i.e. the policy term depends on the policy holder but sometimes the

insurer can also influence the policy term by giving some additional benefits on policies taken

for a longer period of time or vice versa. In the study that was conducted by us, we found out

that nearly 45% of the respondents think that policy term offered by the company is the

important thing that one should consider before taking any life insurance policy while 31.4% of

the respondents think that it is the highly important thing that one should consider before taking

any life insurance policy.

Policy Term

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Rider Benefits

Page 2 of 119



Rider Benefits

Page 1 of 119



Bonus and Interest Paid

Services (Pre and Post Sales)

Rating No of

Responden

t

Percentag

e

Page 1 of 119



5

4

3

2

1

26

56

21

10

2

22.6

48.7

18.2

8.7

1.8

Insurance

Users

Non Users

Total

115

35

150

100

Interpretation:

While conducting the study we have met many respondents who think that many of the companies

provide them satisfactory services only till the policy is being taken by the respondent, but after that if

there is any requirement from the point of view of the customer, the company does not pay the same

attention to them as they had paid earlier. So, nearly 50% of the respondents feel that services (both pre

and post sales) provided by the company is important to consider before undertaking any kind of life

insurance policy.

Services (Pre and Post Sales)

Page 1 of 119



Accessibility

Page 1 of 119



Interpretation:The term accessibility here refers to the easy availability of the facilities that the company

provides to its customers. The facilities may be regarding information about the company and the

various products offered by them, it can be made available through internet and other media.

According to the study nearly 40% of the respondents think it is neutral, while 24% and18% of

the respondents thinks it is important and highly important and nearly 12% of the respondents

think it is not important.

Page 2 of 119

Rating No of

Respondent

Percentage

5

4

3

2

1

21

28

47

5

14

18.3

24.4

40.8

4.3

12.2

Insurance

Users

Non Users

Total

115

35

150

100



Interpretation:

Company image also plays a very important role in influencing the decision of a prospective

customer while taking the final decision. From the study it has been found out that nearly 58%

and 27% of the people feel that it is the highly important and important thing, which has higher

influence than any other criterion that influences one’s decision regarding taking of life

insurance policy, while for 3.4% of the people feel that it is least important in their decision

making.

Page 2 of 119

Rating No of

Respondent

Percentage

5

4

3

2

1

67

31

13

4

_

58.4

26.9

11.3

3.4

_

Insurance

Users

Non Users

Total

115

35

150

100

100



Company Image

So, to conclude from the above chart, it can be said that the company image, charges and

premium that the policy holder has to pay for taking any life insurance policy, plays a highly

important role in influencing their decision, followed by the factors like bonus and interest

paid by the company, policy term and so on. So, those companies who are having brand

image or name as well as providing all other complementary services, have a better chance of

succeeding in the life insurance sector in comparison to other companies who are in the same

field.

To further analyze the perception of the respondents about what they think as the important

criteria before taking an insurance policy, I have taken two independent parameters, namely:

a) Age of the People.

b) Annual Income of the People.

After taking these two independent parameters, the analysis is being made to see which age group people

think what criterion is important or what is the difference in perception among the people who have

annual income which are significantly different from each other. The number of respondents taken here is

only 115 as those people who are not having any life insurance policy have been excluded from the

Page 1 of 119



purview of the study and these 115 respondents were allowed to rate the criteria according to their

importance.

(Rating 5 represents highly important,4 represents important,3 represents neutral,2 represents least

important and 1 represents not important).

Criteria before taking a life insurance policy

On the basics of Age group:

For conducting the study the ages of respondents are divided into five categories, those are as

follows:

a) Below 30 years.

b) Between 31- 50 years.

c) Between 51 – 60 years.

d) Above 60 years

Age Group – Premium

Age group 5 4 3 2 1 Total

Respondent

Below 30 Yrs 14 6 4 2 _ 26

Page 1 of 119



31-50 Yrs 23 14 18 3 _ 58

51-60 Yrs 7 8 5 2 _ 22

Above 60 Yrs 6 3 _ _ _ 9

Total

Respondent

50 31 27 7 _ 115

Interpretation:

Now, from the above table, we can see that nearly 50% of the people who belong to the age group of

below 30 years consider premium as the highly important criterion in comparison to only 40% of the

people who belong to an age group of 31-50 years. So, people who have started their professional life

consider more about the money that has to be spent on the insurance policy in comparison to the people

who are working for a relatively longer period of time. Again, if we consider those people of age group

51-60 years who have come to the important stage of their working life, we can see that these people also

thing that the expense regarding the premium to be paid is the highly important criteria for them because

they likely to spend or save their money on medical, education etc

Age Group – Premium

Page 1 of 119



Page 2 of 119



Age Group – Policy Term


Respondent

Below 30 Yrs 4 12 9 1 _ 26

31-50 Yrs 10 28 15 5 _ 58

51-60 Yrs 8 7 7 _ _ 22

Above 60 Yrs 2 5 1 1 _ 9

Total

Respondent

24 52 32 7 _ 115

Interpretation:

The policy term mainly depends on the wishes of the policy holder, so here we can see that only 20% and

17% of the people whose age is below 30 years and 31-50 years, think this is highly important criterion,

but people who a little bit more experienced know that insurer companies sometime provide extra

benefits for longer policies in comparison to policies which have a shorter span of life, that’s why nearly

36% of people belonging to the age group of 51-60 years think that it is a highly important criterion

which affects the decision regarding insurance.

Page 1 of 119



Age Group – Rider Benefits


Respondent

Below 30

Yrs

6 15 3 2 _ 26

31-50 Yrs 9 17 24 8 _ 58

51-60 Yrs 5 12 5 _ _ 22

Above 60

Yrs

_ 5 4 _ _ 9

Total

Respondent

20 49 36 10 _ 115

Interpretation:

Mostly all the respondents of different age group are not interested in rider benefits, nearly 60%

people of the age group below 30 years, think that it is important ,where as only 17% of all age group

think that it is highly important. So, most of them think that rider benefits are not so important and it

does not influence their decision in a broad way.

Page 1 of 119



Age Group – Rider Benefits

Page 1 of 119



Age Group – Services (both pre and post sales)


Respondent

Below 30 Yrs 11 8 4 3 _ 26

31-50 Yrs 33 13 6 5 1 58

51-60 Yrs 9 6 7 _ _ 22

Above 60 Yrs 5 4 _ _ _ 9

Total

Respondent

58 31 17 8 1 115

Interpretation:

In this case, we can see that the people who belong to the age group of 31-50 years give much importance

on services in comparison to the people belonging to the age group below 30 years, who put more

emphasize on the other benefits than services provided by the company.

Page 1 of 119



Age Group – Services (both pre and post sales)

Page 3 of 119



Age Group – Accessibility


Respondent

Below 30 Yrs 5 11 8 2 _ 26

31-50 Yrs 6 16 24 8 4 58

51-60 Yrs 10 5 7 _ _ 22

Above 60 Yrs 1 2 6 _ _ 9

Total

Respondent

22 34 45 10 4 115

Interpretation:

Here, we can see that not much importance is given to the accessibility criteria by the respondents

belonging to below 30 and 51-60 years, But only respondent belonging to 31-50 years nearly 50% of

them consider it important, because of their long period of working age they like to get easy availability

of the products offered. So only the age groups 31-50 years consider accessibility as an criterion for

decision to take an life insurance policy.

Page 1 of 119



Age Group – Company Image


Respondent

Below 30 Yrs 17 8 1 _ _ 26

31-50 Yrs 19 23 12 4 _ 58

51-60 Yrs 12 6 3 1 _ 22

Above 60 Yrs 7 2 _ _ _ 9

Total

Respondent

55 39 16 5 _ 115

Interpretation:

In the case of company image also, we see most of the respondents nearly 50% consider company image

as a highly important criterion this is mainly because people feel secure and comfortable of their money

which they spend on the company which has a brand name or image. So, that company image has greater

influence among the people before they take up life insurance.

Page 1 of 119



Criteria before taking a life insurance policy

On the basics of Annual Income Level:

For conducting the study the annual income of respondents is divided into four categories, those are

as follows:

a) Less than Rs. 1 lakh.

b) Between Rs 1.01 – 3 lakh.

c) Between Rs. 3.01 – 5 lakh.

d) More than Rs. 5 lakh.

Now, let us see the perception of people who belong to different income groups about the important

criterion before taking a life insurance policy.

Annual Income – Premium

Annual

Income(Rs)

5 4 3 2 1 Total

Below 1

Lakh

23 13 2 1 _ 39

1.01-3 Lakh 25 16 10 1 _ 52

3.01-5 Lakh 1 3 5 _ _ 9

Above 5

Lakh

_ 3 2 7 3 15

Total 49 35 19 9 3 115

Page 1 of 119



Interpretation:

In this scenario mostly the respondents of all the annual income groups think that premium to be paid in a

policy is the most important criterion, but as the income increases it is considered to be not important. So,

people of lower income groups put more emphasize on the money to be spent.

Annual Income – Premium

Annual Income – Charges

Annual

Income(Rs)

5 4 3 2 1 Total

Below 1

Lakh

23 9 7 _ _ 39

Page 1 of 119



Annual Income – Charges

Page 1 of 119



Annual Income – Rider Benefits

Annual

Income(Rs)

5 4 3 2 1 Total

Below 1

Lakh

15 13 10 1 _ 39

1.01-3

Lakh

9 19 19 5 _ 52

3.01-5

Lakh

1 2 6 _ _ 9

Above 5

Lakh

_ 3 5 7 _ 15

Total 25 37 40 13 _ 115

Interpretation:

Here, we can see that all respondents who are having income above 5 lakh think that rider benefits are not

important criterion in comparison to people who are having less income. The reason for the same may be

as the income of a person increases he/she will be liable to get more rider benefits in comparison to

people who are having lesser income, so they put less importance on rider benefits. But, one thing is clear

that very few people from all income class think that rider benefits carry less importance.

Page 1 of 119



Annual Income – Rider Benefits

Page 1 of 119



Annual Income – Services (Both pre and post sales)

Annual

Income(Rs)

5 4 3 2 1 Total

Below 1

Lakh

12 11 14 _ 2 39

1.01-3

Lakh

12 21 14 2 3 52

3.01-5

Lakh

7 2 _ _ _ 9

Above 5

Lakh

2 1 12 _ _ 15

Total 33 35 40 2 5 115

Interpretation:

Now if we consider the services provided by the company we can see that the people who are having

less income put more emphasis on this criterion because people are more conscious about their

money than the people who belong to 3-5 lakh. So, they expect better services for their money.

Page 1 of 119



Annual Income – Accessibility

Annual

Income(Rs)

5 4 3 2 1 Total

Below 1

Lakh

9 19 9 1 1 39

1.01-3

Lakh

10 25 13 4 _ 52

3.01-5Lakh

1 1 _ 2 5 9

Above 5

Lakh

1 2 7 3 2 15

Total 21 47 29 10 7 115

Interpretation:

If we consider the accessibility as one of the criterion for taking insurance policy, we can see that as the

income of the person increases, they put less importance on the accessibility criterion (31.0% of people

having income less than 1 lakh, 23.8% for 1.01 – 3 lakh, one respondent for 3.01 – 5 lakh and one

respondent for more than 5 lakh). The same trend can be seen when they consider it as the only important

criteria in taking a decision regarding life insurance. So, most of the people think it as a criterion which is

not so important while taking their decision.

Page 1 of 119



Annual Income – Accessibility

Page 1 of 119



Annual Income – Company Image

Annual

Income(Rs)

5 4 3 2 1 Total

Below 1

Lakh

16 19 3 1 _ 39

1.01-3

Lakh

23 21 6 2 _ 52

3.01-5Lakh

4 1 4 _ _ 9

Above 5

Lakh

8 2 5 _ _ 15

Total 51 43 18 3 _ 115

Interpretation:

The above table shows respondents of all the income level with average of 50% consider company image

as highly important criterion. When we compare company image among different age groups and annual

income groups we find similar opinion, considering that it is highly important for decision making. This

mainly because people feel safe and secure with the company they invest.

Page 1 of 119



Annual Income – Company Image

So, to conclude it can be said that in most of the aspects, the opinion of the people belonging to

different income groups differ from each other. The reason for the same can be the importance that they

give on the sum they invest in taking a life insurance policy i.e. a person who is having income of less

than 1 lakh will put more emphasis on a sum of Rs, 10000, in comparison to a person who is having an

income of more than 5 lakh. So, the difference in income does show difference in opinion also.

Page 1 of 119



10) Modus

OperandiThe process which I followed to market the IDBI FORTIS Wealthsurance product was as

follows:

10.1) Introductory Visits

My role was to sell the Wealthsurance product in Dehradun to retail customers. I first made an

introductory visit to various customers. In this visit, I tried to explain them the products that we

sell and the demand associated with each product. The emphasis was on understanding, which

product was doing better, I found out people if they know about the product and if not I tried to

educate them. This introductory visit was aimed at ascertaining the initial response of the

investors about our wealthsurance. Thus during these introductory visits the meetings initiated

with professional talks like insurance selling and other product specific talks and then the

discussion would go towards discussing the problems they are facing with other companies.

Helping them with their queries helped me give a strong footing to the relationship that I was

trying to build.

910.2) Follow-up Visits

After the introductory visits, I visited some customers again. In the process, I tried to develop a

close relationship with these customers which help in the promotion of the business of the IDBI

FORTIS. The effort was directed towards forming an effective communication channel between

the company and the customer. This will help the company to get to know the individual

grievances if any of the distributors which ordinarily would not have been possible due to the

large number of customers.

10.3) Follow-up Phone Calls

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• Most of the workers told that they invest in life insurance corporation only because that is

government company of insurance, when I tried to convince them that our company

provides better services than L.I.C. then they told that we don’t trust private companies,

we have lost our money earlier also in private companies.

• There is no transparency in private companies.

In fourth week, I targeted the pharmaceutical companies and market of Selaqui area inDehradun. The feedback which I got from there was approximately similar what I got from the

offices visited last week. I also went to Rishikesh as I got reference from my company guide at

Tehri hydropower plant office but the end result was same. The feedback was as follows:

• Most of them told that closing is coming so we don’t have time right now to think we

will tell you later.

• Some of them told that we have already done our investment planning for this year. You

come in the month of May.

• Some of them told that we have already have policies with other insurance companies;

we don’t want to invest more.

In the fifth week, I targeted the hotels and other market (like sweet shops, jewellery shops etc.).

The feedback which I got from there are as follows:

• Jewellery shop owners said we are not interested to invest in insurance; we invest in gold

and other metals as we have more knowledge of that as compared to insurance industry,

and we can convert it easily into cash at the time of emergency.

• Some of the shop owners told that they invest in their business only and they have done

life insurance policies from L.I.C. already for any mishappening and not interested to

invest any more in insurance.

In the sixth week, I target the complexes at Connaught Place and Rajpur road (Janpath, Kwality,

Raj Plaza etc.)

• Some of them told that tax has already deducted now, so we will invest after sometime,

we don’t have enough funds to invest now.

• Some of them asked where you invest our money, when I told them we invest your

money in equity, debt or other marketable securities, so they told that why not we invest

in mutual funds we will get better returns as they will cut less charges, as there are nomortality charges in mutual funds.

• Some of them told that they don’t believe in these policies, they invest in property only.

Page 1 of 119



• Some of them told that we are not interested to invest for long term as by taking

Wealthsurance plan we cannot withdraw our money before 3 years, so we are not

interested in it.

In between this time I regularly did the follow up of customers who told me that they will invest

after sometime and asked for other references from them of the people who are interested to

invest right now.

In seventh week I went to market and from their I got the reference of client who is living in

Chhattisgarh, I done his policy by explaining all the details about our Wealthsurance plan on

telephone. After that I regularly visited office and we made our own team in which our company

guide is branch manager and K.G. Pareek was our coordinator and salesperson also, Jasmeet

Kaur Luthra was giving the work of telecalling. Jasmeet do the cold calling and fixed

appointments from the clients and I and K.G. Pareek both visited their office and explain our

product and tried them to convince them to buy our product. And we succeed in it and we made

another policy of 10000. After that this work continues till the twelth week and side by side I

was given the responsibility of checking all the forms of Wealthsurance and checking all the

documents attached with it and checks that all the details filled by the customer matches with the

documents attached by it. Also preparing checklist, benefit illustration statement and other paper

work like depositing cash and cheques to different banks and collecting the receipts and

checking all the details send that forms to the head office in Lucknow through courier. In the end

I and K.G. along with Jasmeet were able to make 10 policies. In the last two weeks new students

came from Icfai National College and I was told to take their reporting daily in the morning and

in the evening and getting their feedbacks which they get from customers and clearing their

doubt about Wealthsurance plan. In those two weeks, I was able to take 5 policies from the

students of Icfai National College.

12) Learning’s:

The project gave me an opportunity to use my theoretical knowledge into practice.

Experience of organized firm and its working methodology.

Knowledge of insurance products especially Wealthsurance plan

Knowledge of primary underwriting of insurance company.

Knowledge of how to login the policy, prepare acknowledgement on the computer.

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Knowledge of corporate culture and how to work in it.

13) Findings

• Wealthsurance is a very good plan to invest as it covers all the shortcomings of

traditional life insurance and ULIPS. in this IDBI has Guaranteed return fund plan in

which minimum 8% return is guaranteed and that also tax free.

•

14) Suggestions:

After interacting with lot of customers what I feel can be done to improve the business for the

company is that first we have to change the perception/mindset of the people. This can be done

by taking the following steps:

• Conducting seminars at different places and giving the customer’s knowledge about the

product in details and explaining them the whole process of investment to them.

• By getting tie-ups with different banks and offices in the Dehradun so that people from

that office will invest in our company as they feel security and safety while investing.

•

By explaining the benefits which one gets from the product in the advertisement asshown in the television or internet.

• By putting canopies and creating awareness about the product.

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• By increasing the interaction between old customers and new potential customers

because new customers trust on the existing customers than company.

• By giving presentations in the companies explaining them about the product and benefits

associated with the product.

15) Conclusion

Insurance is a tool by which fatalities of a small number are compensated out of funds collected

from plenteous. Insurance is a safeguard against uncertain events that may occur in the future.

Since its inception, the IDBI FORTIS life insurance company have increased investors money

than the other competent, this progress leads to increase the company image and makes a way to

lead the total insurance market. Thus the study also comprise company image is the highly

important criteria that consumers consider before taking up a life insurance. This is mainly

because people expect safety and secure for their money which they invest, followed by the

factor Premium which we pay to the insurer and then Bonus and Interest paid by the company,

services etc.

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16) References:

• IRDA book issued by Indian Institute of India

• ICFAI Journal of Risk and Insurance(January 2008 and April 2008 edition)

• https://www.glgroup.com/News/India-a-big-market-for-Life-Insurance-industry-

11258.html

• http://www.idbifortis.com/Wealthsurance-What3.aspx?mm=3&lm1=2&lm2=3

• http://www.idbifortis.com/Wealthsurance-What4.aspx?mm=3&lm1=2&lm2=4

• http://www.idbifortis.com/Aboutus-VisionValues.aspx?mm=2&lm1=4

• http://www.idbifortis.com/Bondsurance/Bondsurance-Why.aspx?mm=5&lm1=1

• http://www.idbifortis.com/Homesurance-Why-pro.aspx?mm=4&lm1=1

• http://www.idbifortis.com/GroupMicrosurance.aspx?lm1=6

• http://www.idbifortis.com/Wealthsurance-How.aspx?mm=3&lm1=4

• http://www.idbifortis.com/Wealthsurance-How2.aspx?mm=3&lm1=4&lm2=2

• http://www.idbifortis.com/Wealthsurance-How1.aspx?mm=3&lm1=4&lm2=1

• http://www.idbifortis.com/Wealthsurance-Adv.aspx?mm=3&lm1=3

Page 2 of 119

https://www.glgroup.com/News/India-a-big-market-for-Life-Insurance-industry-11258.html


http://www.idbifortis.com/Wealthsurance-What3.aspx?mm=3&lm1=2&lm2=3


http://www.idbifortis.com/Aboutus-VisionValues.aspx?mm=2&lm1=4

http://www.idbifortis.com/Bondsurance/Bondsurance-Why.aspx?mm=5&lm1=1

http://www.idbifortis.com/Homesurance-Why-pro.aspx?mm=4&lm1=1

http://www.idbifortis.com/GroupMicrosurance.aspx?lm1=6

http://www.idbifortis.com/Wealthsurance-How.aspx?mm=3&lm1=4

http://www.idbifortis.com/Wealthsurance-How2.aspx?mm=3&lm1=4&lm2=2


http://www.idbifortis.com/Wealthsurance-Adv.aspx?mm=3&lm1=3



http://www.idbifortis.com/Aboutus-VisionValues.aspx?mm=2&lm1=4

http://www.idbifortis.com/Bondsurance/Bondsurance-Why.aspx?mm=5&lm1=1

http://www.idbifortis.com/Homesurance-Why-pro.aspx?mm=4&lm1=1

http://www.idbifortis.com/GroupMicrosurance.aspx?lm1=6

http://www.idbifortis.com/Wealthsurance-How.aspx?mm=3&lm1=4



http://www.idbifortis.com/Wealthsurance-Adv.aspx?mm=3&lm1=3





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