PROJECT REPORT

AT

A Project Report submitted in partial fulfillment of the requirements for the award of the
degree of

MASTER OF BUSINESS ADMINISTRATION

(Industry Integrated)

TO

MADURAI KAMARAJ UNIVERSITY, MADURAI

BY

RAM ASHISH YADAV

Reg. No.A8756151

NATIONAL INSTITUTE OF APPLIED MANAGEMENT

FARIDABAD

DECEMBER 2009

1
 Certificate

This is to certify that the Project Report at

Submitted in partial fulfillment of the requirement for the award of the degree of

MASTER DEGRE OF ADMINISTRATION

(Industry Integrated)

TO

MADURAI KAMARAJ UNIVERSITY, MADURAI

Is a record of bonafide Training carried out by

Under my supervision and guidance and that no part of this report has been submitted
for the award any other degree/diploma /fellowship or similar titles or prizes.

FACULTY GUIDE

Signature:

Name:Gurvindra

Qualification : Signature & seal of the learning center

2
 STUDENT’S DECLARATION

I hereby declare that the Project Report conducted at

DITEL STUDY OF GENERAL INSURANCE OFFERED

BY

KOTAK MAHINDRA GENRAL INSURENCE

Submitted in partial fulfillment of the requirements for degree of

MASTER OF BUSINESS ADMINISTRATION

(Industry Integrated)

TO

MADURAI KAMARAJ UNIVERSITY, MADURAI

Is my original work and the same has not been submitted for the award of any other
Degree/diploma /fellowship or other similar titles or prize.

Place:

Date: Reg.No. A8756151

3
 ACKNOWLEDGEMENT

Acknowledgements to be mentioned to the Head of the Learning Center, NIAM, Faculty

guide, Training officer in charge , Manager in charge, other staff members, colleagues
and friends for their encouragement , support , guidance and assistance for undergoing
management training and preparing the project report.

5
 Index

Page No.

CHAPTER 1: INTRODUCTION 10

1.1 General Introduction about the sector 11

1.2 Industry Profile 14

a. Origin and development of the Industry 17

b. Growth and present status of the industry 18

c. Future of the industry 25

CHAPTER 2: PROFILE OF THE ORGANIZATION 26

2.1 Origin of the Organization 31

2.2 Growth and Development of the Organization 31

2.3 Present status of the Organization. 33

2.4 Functional Department of the Organization 34.

2.5 Organization Structure of the Organization. 37

2.6 Product and service profile of the Organization 38

2.7 Market Profile of the Organization. 42

CHAPTER 3: DISCUSSIONS ON TRAINING 45

3.1 Student’s work profile (Role and Responsibility) 46

3.2 Description of live experiences. 48

 6

CHAPTER 4: STUDY OF SELECTED RESEARCH PROBLEM 49

4.1 Statement of Research problem. 50

4.2 Statement of Research Objective 52

4.3 Research Design and Methodology 53

4.4 Analysis of Data 56

4.5 Summary of Findings. 71

CHAPTER 5: SUMMARY AND CONCLUSIONS 72

5.1 Summary of learning experience 72

5.2 Conclusion and Recommendations. 76

APPENDIX 77

Annexure like copy of

1. Questionnaires,

Bibliography 79

7
 A

REPORT

On

“Detailed study of Kotak Mahindra Life Insurance

in DELHI Market”
 8

CHAPTER 1:

1.1 General Introduction about the sector

1.2 Industry Profile

a. Origin and development of the industry

b. Growth and present status of the industry

c. Future of the industry

 9

INTRODUCTION:

Stock broking businesses in the UK. Kotak Group was established in 1985.Kotak
Mahindra Bank is the parent company of the group. Kotak Group entered into the life
insurance business in 2001. Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint
venture between Kotak Mahindra Bank Ltd. (76%) and Old Mutual plc. (24%) Old
Mutual plc. Is a world-Class international financial services company. It was established
in South Africa before 160 years.

OLD MUTUAL is the largest financial services business in South Africa, through its life
insurance, asset management, banking and general insurance operations. The
company serves 4 million life insurance policyholders and employs over 13 000 South
Africans in its local operations.

In the USA, OLD MUTUAL is one of the top ten fixed annuity businesses offering
an array of specialist asset management skills through its 23 asset management
businesses. The company’s US Life business recorded sales of $4 billion at the end of
2002.

Operations in the United Kingdom are focused on wealth management, through Gerrard
as one of the leading private client

The OLD MUTUAL Group has the ability to cater for a variety of consumer segments
and offers a comprehensive and innovative range of products for all income groups.
 10

1.1 GENERAL INTRODUCTION ABOUT THE SECTOR :

The service industry is one of the fastest growing sectors in India today. The upcoming
sectors which are really showing the graph towards upwards are - Telecom, Banking,
and Insurance. These sectors really have a lot of responsibility towards the economy.

Amongst the above-mentioned areas insurance is one sector, which took a lot of time in
positioning itself. The insurance business of non-life companies was not much in
problems but the major problem was with life insurance. Life Insurance Corporation of
India had monopoly for more than 45 years, but the picture then was completely
different. Previously people felt that “Insurance is only for classes not for masses”
but now the picture is vice-versa.

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

Life Insurance in 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. All the insurance companies established during that period
were brought up with the purpose of looking after the needs of European community
However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life
insurance companies started insuring Indian lives. But Indian lives were being treated
as sub-standard lives and heavy extra premiums were being charged on them. Bombay
Mutual Life Assurance Society heralded the birth of first Indian life insurance company
in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise
with highly patriotic motives, insurance companies came into existence to carry the
message of insurance and social security through insurance to various 11
sectors of society. Bharat Insurance Company (1896) was also one of such companies
inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more
insurance companies. The United India in Madras, National Indian and National
Insurance in Calcutta and the Co-operative Assurance at Lahore were established in
1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the
rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The
Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were
some of the companies established during the same period. Prior to 1912 India had no
legislation to regulate insurance business. In the year 1912, the Life Insurance
Companies Act, and the Provident Fund Act were passed. The Life Insurance
Companies Act 1912 made it necessary that the premium rate tables and periodical
valuations of companies should be certified by an actuary. But the Act discriminated
between foreign and Indian companies on many accounts, putting the Indian companies

The formation of IRDA, entrance of private life insurance companies into India with one
foreign partner, compulsory training of Insurance agents etc. developments started to
take place. And this was the time when these companies started searching for proper
channel partners who can help the organization in expanding its network and business
in India.

Channel partners are those who are going to be into direct selling of company’s
products i.e. the insurance policies. They are the link between the customers and the
management or company. These channel partners are people with different profiles.
They are selected on some grounds like their network of people, their problem handling
ability, convincing power and lot many things.
The main idea behind company’s Questionnaire Survey is to find out and analyze the
proper profile that can be recruited by company as a channel partner. Company has
been focusing on some of the profile that can be very beneficial for the company. For
example Chartered Accountants, Tax Consultants, 12
Postal agents, Bank’s Daily Collection Agents etc. the main idea behind targeting the
above profile is strong client network which is really very important for an insurance
company.

The project title is “Potential of Life Insurance Industry in DELHI Market”.

This shows the scope for private insurance companies have great opportunities to cover
the market and can insure the customer. With the initiation of the deregulation in the
Indian insurance market, the monopoly of big public sector companies in life insurance
market has been broken. New private players have entered the market and with their
innovative approaches and better use of distribution channels and technology, they are
eating in to the shares of established public sector companies in Indian Insurance
Market. Since the deregulation has been put in to place, the market share of LIC has
come down to 71.4% in life insurance market while the private players have captured
around 17% market in the general insurance segment. This report includes the key
private players in the insurance market such as ICICI Prudential, Kotak Life Insurance
Bajaj Allianz, Birla Sun life, and TATA AIG. It also includes the leading competitors in
the life insurance and general insurance segments along with their market shares

13
 1.2 INDUSTRY PROFILE:

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.

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

Life Insurance in 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. All the insurance companies established during that period
were brought up with the purpose of looking after the needs of European community
and these companies were not insuring Indian natives. However, later with the efforts of
eminent people like Babu Muttylal Seal, the foreign life insurance companies started
insuring Indian lives. But Indian lives were being treated as sub-standard lives and
heavy extra premiums were being charged on them. Bombay Mutual Life Assurance
Society heralded the birth of first Indian life insurance company in the year 1870, and
covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic
motives, insurance companies came into existence to carry the message of insurance
and social security through insurance to various sectors of society. Bharat Insurance
Company (1896) was also one of such companies inspired by nationalism. The
Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United
India in Madras, National Indian and National Insurance in Calcutta and the Co-
operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-
operative Insurance Company took its birth in one of the rooms of the Jorasanko, house
of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General
Assurance and Swadeshi Life (later Bombay Life) 14

were some of the companies established during the same period. Prior to 1912 India
had no legislation to regulate insurance business. In the year 1912, the Life Insurance
Companies Act, and the Provident Fund Act were passed. The Life Insurance
Companies Act 1912 made it necessary that the premium rate tables and periodical
valuations of companies should be certified by an actuary. But the Act discriminated
between foreign and Indian companies on many accounts, putting the Indian companies

The first two decades of the twentieth century saw lot of growth in insurance business.
From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176
companies with total business-in-force as Rs.298 crore in 1938. During the
mushrooming of insurance companies many financially unsound concerns were also
floated which failed miserably. The Insurance Act 1938 was the first legislation
governing not only life insurance but also non-life insurance to provide strict state
control over insurance business. The demand for nationalization of life insurance
industry was made repeatedly in the past but it gathered momentum in 1944 when a bill
to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly.
However, it was much later on the 19th of January 1956 that life insurance in India was
nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75
provident were operating in India at the time of nationalization. Nationalization was
accomplished in two stages; initially the management of the companies was taken over
by means of an Ordinance, and later, the ownership too by means of a comprehensive
bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of
June 1956, and the Life Insurance Corporation of India was created on 1st September,
1956, with the objective of spreading life insurance much more widely and in particular
to the rural areas with a view to reach all insurable persons in the country, providing
them adequate financial cover at a reasonable cost.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its
corporate office in the year 1956. Since life insurance contracts are long-term contracts
and during the currency of the policy it requires a variety of services need was felt in the
later years to expand the operations and place a branch office at each district
headquarter. Re-organization of LIC took place and large numbers of new 15

branch offices were opened. As a result of re-organization servicing functions were

transferred to the branches, and branches were made accounting units. It worked
wonders with the performance of the corporation. It may be seen that from about 200.00
Crores of New Business in 1957 the corporation crossed 1000.00 Crores only in the
year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new
business. But with re-organization happening in the early eighties, by 1985-86 LIC had
already crossed 7000.00 crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices,
7 zonal offices and the corporate office. LIC’s Wide Area Network covers 100 divisional
offices and connects all the branches through a Metro Area Network. LIC has tied up
with some Banks and Service providers to offer on-line premium collection facility in
selected cities. LIC’s ECS and ATM premium payment facility is an addition to customer
convenience. Apart from on-line Kiosks and IVRS, Info Centers have been
commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New
Delhi, Pune and many other cities. With a vision of providing easy access to its
policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices
are smaller, leaner and closer to the customer. The digitalized records of the satellite
offices will facilitate anywhere servicing and many other conveniences in the future.

From then to now, LIC has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business. The same motives
which inspired our forefathers to bring insurance into existence in this country inspire us
at LIC to take this message of protection to light the lamps of security in as many homes
as possible and to help the people in providing security to their families.
 16

A. ORIGIN AND DEVELOPMENT OF THE INDUSTRY

Kotak Mahindra Old Mutual Life Insurance Ltd. , a company offering Life Insurance
products, is one of India’s premier & growing insurance company employing over 1000
people, across various offices in India.

We aim to achieve a balance between what our people want as individuals and what
the organization expects of them.

The most talented people choose to join and stay with us because we offer them
opportunities to:

• Deliver the best - working with the most talented colleagues.

• Rapidly build skills, knowledge and experience.
• Work in a challenging environment that constantly demands them to operate at
the edge of their ability.
• Be recognised and rewarded for their achievement by accelerated career paths
and differentiated rewards.
• Be a good corporate citizen.

Recruit and Retain the best

At Kotak Life Insurance, we understand that our client servicing depends upon our
people. That makes our people our greatest asset.

To encourage our people excel, we encourage an open door policy across all levels
and our people's contribution on a wide range of office matters from client service to
professional. Opportunities to provide input empower us all to grow both professionally
and personally.

The company encourages training within the work environment, while providing staff
with every opportunity to 'up skill' and advance their career prospects. 17

B. GROWTH AND PRESENT STATUS OF THE INDUSTRY

• Structure of Insurance Industry: Snap Shot

• Contribution to Indian Economy

• Special Features

STRUCTURE OF INSURANCE INDUSTRY: Snap Shot

Historical Perspective

(i) Prior to 1956 242 companies operating

(ii) 1956 - 2001 Nationalization – LIC monopoly

Player – Government control

(iii) 2001 -- Opened up sector

 18

Industry
Snap Shot - Contd.

• (a) LIC – Fully owned by Government

(b) Postal Life Insurance

• (ii) Private players -

1. Bajaj Allianz Life Insurance Co. Ltd.

2. Birla Sun Life Insurance Co. Ltd. (BSLI)

3. HDFC Standard Life Insurance Co. Ltd. (HDFC STD LIFE)

4. ICICI Prudential Life Insurance Co. Ltd. (ICICI PRU)

5. ING Vysya Life Insurance Co. Ltd. (ING VYSYA)

6. Max New York Life Insurance Co. Ltd. (MNYL)

7. MetLife India Insurance Co. Pvt. Ltd. (METLIFE)

8. Kotak Mahindra Old Mutual Life Insurance Co. Ltd.

9. SBI Life Insurance Co. Ltd. (SBI LIFE)

10. TATA AIG Life Insurance Co. Ltd. (TATA AIG)

11. Reliance Life Insurance

12. Aviva Life Insurance Co. Pvt. Ltd. (AVIVA)

13. Sahara India Life Insurance Co. Ltd. (SAHARA LIFE)

14. Shriram Sunlam

• (iii) Other likely players – PNB Life Insurance, Axa Bharti Enterprises
 19

POTENTIAL OF THE INSURANCE SECTOR:

Total population 1.1 billion

Total population of 253 millions

Insurable class

Total population 88.5 millions

Insured

CONTRIBUTION TO INDIAN ECONOMY

(i) Life Insurance is the only sector which garners

long term savings

(ii) Spread of financial services in rural areas and

amongst socially less privileged

(iii) Long term funds for infrastructure

(iv) Strong positive correlation between

development of capital markets and insurance/

pension sector

(v) Employment generation

20

Aggregation of Long Term Savings

(i) Total Assets of Life Insurance Companies

2002-2003 2003-2004 2004-2005

2,80,450Cr 3,52,608Cr 4,23,000 Cr

(ii) Total Premium generated

2002-2003 2003-2004 2004-2005

57,708 Cr 66,278 Cr 79,000 Cr

(iii) Industry is growing @ 19 p.a.

(iv) At this growth rate, the future premium income generated will be

2005-2006 2006-2007 2007-2008

94,000 Cr 1,12000 Cr 1,33,000 Cr

(v) Life Insurance funds account for 15% of household savings.

(vi)The industry has the potential to increase the share to 20%.

 21

Spread of financial services in rural areas and amongst socially underprivileged

• IRDA Regulations provide certain minimum business to be done

(i) In rural areas

(ii) In the socially weaker sections

• Life Insurance offices are spread over nearly

1400 centers.

• Presence of representative in every tensile –

deeper penetration in rural areas.

• Insurance agents numbering over 6.24 lakhs

in rural areas.

• Policies sold in rural areas (2004-05) - No. of

policies - 55 lakhs Sum assured 46,000 cr

• Social security - No. of lives covered 2003-04

17.4 lakhs 2004-05 42.1 lakh

22
 Long term funds for infrastructure

• For GDP to grow at 8 to 10%, qualitative improvement in infrastructure is essential.

• Estimates of funds required for development of infrastructure vary widely.

• An investment of 6, 19,600 crore is anticipated in the next 5 years (Source : SSKI

India)

• Tenure of funding required for infrastructure

normally ranges from 10 to 20 years.

• Major portion of these funds are routed through debt/private equity participation

Development of Capital Markets/

Economic Growth

•Industry also contributes in economic development through investments in capital

market. Present level of investments is over Rs. 40,000 crore. (Mark to Market basis
around 80,000 Crores).

•Annual Investment of around 9000 Crores in capital markets.

•Contribution to Five Year Plans9th Plan 2, 30,900 Crores Last Two Years 1, 70,900
Crores

• Helps inculcate a sense of security by protecting earning of people in case of untimely

death. Benefits to Policy Holders 23

2002-2003 2003-2004 2004-2005

20,800 Cr 24,200 Cr 28,700 Cr

EMPLOYMENT GENERATION

• Life insurance industry provides increased

employment opportunities.

• Employees in insurance sector as on 31st March,

2005 is around 2 lakhs.

• Many agents depend on insurance for their

Livelihood–No. of agents on 31st March 2004 –

15.59 lakhs

•Brokers, corporate agents, training establishments

provide extra employment opportunities.

• Many of these openings are in rural sectors.

SPECIAL FEATURES

• Tax clubbing of various savings short term and long term into same bracket have a
bias towards short term savings.
• Distinction between the short term savings and long term savings is critical from
investor’s point of view. More prone to inflationary pressures

• Clearly, long term savings more than 10 years deserve special consideration under tax
regime. 24

GROWTH POTENTIAL

At present insurance penetration in India is quite low – 2.26% of GDP.

PHASE OF TRANSITION

• Life Insurance industry is under the phase of infancy after 50 years of monopoly

• Competition from within and other sectors of financial market

• Needs environmental support till it reaches a comfort zone

C. FUTURE OF THE INDUSTRY

our children are your joy, your pride and your world. And you strive to give your little
one(s) the very best in life. You would like to provide your children with all the
opportunities that could give them the extra edge over others. For this, you wouldrequire
an investment and protection package that is specially designed to help you plan wisely
for a financially secure and comfortable tomorrow, no matter what the uncertainty of life.

Introducing Kotak’s Headstart Future Protect, a unit-linked dual benefit plan to help
secure your children’s future financial needs and ensure that plans do not go awry,given
you may not always be there to help.

*
25

CHAPTER 2 :

PROFILE OF THE ORGANIZATION

2.1 Origin of the Organization

2.2 Growth and Development of the Organization

2.3 Present status of the Organization.

2.4 Functional Department of the Organization.

2.5 Organization Structure of the Organization.

2.6 Product and service profile of the Organization.

2.7 Market Profile of the Organization.
 26

PROFILE OF THE ORGANIZATION

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.

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

Life Insurance in 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. All the insurance companies established during that period
were brought up with the purpose of looking after the needs of European community
and these companies were not insuring Indian natives. However, later with the efforts of
eminent people like Babu Muttylal Seal, the foreign life insurance companies started
insuring Indian lives. But Indian lives were being treated as sub-standard lives and
heavy extra premiums were being charged on them. Bombay Mutual Life Assurance
Society heralded the birth of first Indian life insurance company in the year 1870, and
covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic
motives, insurance companies came into existence to carry the message of insurance
and social security through insurance to various sectors of society. Bharat Insurance
Company (1896) was also one of such companies inspired by nationalism. The
Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United
India in Madras, National Indian and National Insurance in Calcutta and the Co-
operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-
operative Insurance Company took its birth in one of the rooms of the Jorasanko, 27
house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile,
General Assurance and Swadeshi Life (later Bombay Life) were some of the companies
established during the same period. Prior to 1912 India had no legislation to regulate
insurance business. In the year 1912, the Life Insurance Companies Act, and the
Provident Fund Act were passed. The Life Insurance Companies Act 1912 made it
necessary that the premium rate tables and periodical valuations of companies should
be certified by an actuary. But the Act discriminated between foreign and Indian
companies on many accounts, putting the Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance business.
From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176
companies with total business-in-force as Rs.298 crore in 1938. During the
mushrooming of insurance companies many financially unsound concerns were also
floated which failed miserably. The Insurance Act 1938 was the first legislation
governing not only life insurance but also non-life insurance to provide strict state
control over insurance business. The demand for nationalization of life insurance
industry was made repeatedly in the past but it gathered momentum in 1944 when a bill
to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly.
However, it was much later on the 19th of January 1956 that life insurance in India was
nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75
provident were operating in India at the time of nationalization. Nationalization was
accomplished in two stages; initially the management of the companies was taken over
by means of an Ordinance, and later, the ownership too by means of a comprehensive
bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of
June 1956, and the Life Insurance Corporation of India was created on 1st September,
1956, with the objective of spreading life insurance much more widely and in particular
to the rural areas with a view to reach all insurable persons in the country, providing
them adequate financial cover at a reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its
corporate office in the year 1956. Since life insurance contracts are long-term contracts
and during the currency of the policy it requires a variety of services need was 28

felt in the later years to expand the operations and place a branch office at each district
headquarter. Re-organization of LIC took place and large numbers of new branch
offices were opened. As a result of re-organization servicing functions were transferred
to the branches, and branches were made accounting units. It worked wonders with the
performance of the corporation. It may be seen that from about 200.00 Crores of New
Business in 1957 the corporation crossed 1000.00 Crores only in the year 1969-70, and
it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with
re-organization happening in the early eighties, by 1985-86 LIC had already crossed
7000.00 crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices,
7 zonal offices and the corporate office. LIC’s Wide Area Network covers 100 divisional
offices and connects all the branches through a Metro Area Network. LIC has tied up
with some Banks and Service providers to offer on-line premium collection facility in
selected cities. LIC’s ECS and ATM premium payment facility is an addition to customer
convenience. Apart from on-line Kiosks and IVRS, Info Centers have been
commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New
Delhi, Pune and many other cities. With a vision of providing easy access to its
policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices
are smaller, leaner and closer to the customer. The digitalized records of the satellite
offices will facilitate anywhere servicing and many other conveniences in the future.

From then to now, LIC has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business. The same motives
which inspired our forefathers to bring insurance into existence in this country inspire us
at LIC to take this message of protection to light the lamps of security in as many homes
as possible and to help the people in providing security to their families

In

Stock broking businesses in the UK. Kotak Group was established in 1985.Kotak
Mahindra Bank is the parent company of the group. Kotak Group entered into 29

the life insurance business in 2001. Kotak Mahindra Old Mutual Life Insurance Ltd. is a
joint venture between Kotak Mahindra Bank Ltd. (76%) and Old Mutual plc. (24%) Old
Mutual plc.Is a world-Class international financial services company. It was established
in South Africa before 160 years. Stock broking businesses in the UK. Kotak Group was
established in 1985.Kotak Mahindra Bank is the parent company of the group. Kotak
Group entered into the life insurance business in 2001. Kotak Mahindra Old Mutual Life
Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd. (76%) and Old
Mutual plc. (24%) Old Mutual plc.Is a world-Class international financial services
company. It was established in South Africa before 160 years.

OLD MUTUAL is the largest financial services business in South Africa, through its life
insurance, asset management, banking and general insurance operations. The
company serves 4 million life insurance policyholders and employs over 13 000 South
Africans in its local operations.

In the USA, OLD MUTUAL is one of the top ten fixed annuity businesses offering
an array of specialist asset management skills through its 23 asset management
businesses. The company’s US Life business recorded sales of $4 billion at the end of
2002.
 30

2.1 Origin of the Organization

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.

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

Life Insurance in 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. All the insurance companies established during that period
were brought up with the purpose of looking after the needs of European community
and these companies were not insuring Indian natives. However, later with the efforts of
eminent people.
2.2 Growth and Development of the Organization

Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between Kotak
Mahindra Bank Ltd., and Old Mutual plc. It is a company offering Life Insurance
products, is one of India premier & growing insurance company employing over 1000
people, across various offices in India.

We aim to achieve a balance between what our people want as individuals and what the
organization expects of them.

31

The most talented people choose to join and stay with us because we offer them
opportunities to:

- Deliver the best - working with the most talented colleagues.

- Rapidly build skills, knowledge and experience.

- Work in a challenging environment that constantly demands them to operate at the

edge of their ability.

- Be recognised and rewarded for their achievement by accelerated career paths and
differentiated rewards.

- Be a good corporate citizen.

- Recruit and Retain the best

At KMOM, we understand that our client servicing depends upon our people. That
makes our people our greatest asset. To encourage our people excel, we encourage an
open door policy across all levels and our people's contribution on a wide range of office
matters from client service to professional. Opportunities to provide input empower us
all to grow both professionally and personally. The company encourages training within
the work environment, while providing staff with every opportunity to 'upskill' and
advance their career prospects
 32

2.3 Present status of the Organization.

Founded in 2001, Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture
between Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc. Kotak Mahindra is one
of India's leading financial institutions which offer a range of financial services, such as,
commercial banking, stock broking, mutual funds, life insurance, and investment
banking. And, Old Mutual is an international insurance and investment management
company based in London, offering a diverse range of financial services in South Africa,
the United States and the United Kingdom since more than 150 years.

Kotak Mahindra Old Mutual Life Insurance Ltd. is a company which offers Life Insurance
products. It is one of India's most rapidly growing insurance companies, employing over
1000 people, across various offices in India. Kotak Mahindra Old Mutual Life Insurance
Ltd offers different types of Life Insurance Policies, which are:

Protection Plans

• Kotak Loan Protection Plan

• Kotak Term/Preferred Term Plan
• Kotak Eternal Life Plans

Retirement Plans

• Kotak Secure Retirement Plan

• Kotak Retirement Income (Unit Linked)
• Kotak Long Life Secure Plus
• Kotak Long Life Wealth Plus
• Kotak Retirement Income Plan

Savings & Investment Plans

• Kotak Platinum Advantage Plus
• Kotak Smart Advantage
• Kotak Safe Investment Plan
• Kotak Flexi Plan
• Kotak Platinum Advantage Plan
• Kotak Easy Growth Plan
• Kotak Capital Multiplier Plan
• Kotak Money Back Plan
• Kotak Endowment Plan
• Kotak Premium Return Plan
• Kotak Sukhi Jeevan Plan

33

2.4 Functional Department of the Organization.

MR. UDAY KOTAK is the CEO of the company.

Other Top Management persons are as follows:-

Mr. Gaurang Shah (Managing Director)

Mr. Gaurang Shah is the Managing Director of Kotak Mahindra Old Mutual Life
Insurance Limited.

Mr. Gaurang Shah is a Chartered Accountant and a Cost and Works Accountant.
He has also done his Company Secretary ship from the Institute of Company
Secretaries of India. Mr. Gaurang Shah has been with the Kotak Group for the past
eight years where he has held different positions of great responsibility and juggled
multiple tasks effectively. His cumulative experience, primarily in financial services,
stands at over 21 years, several of those in building the retail finance business. At
Kotak Life Insurance, Mr. Shah will focus on developing new lines of businesses
and leveraging the company's existing competencies and network to steer Kotak
Life Insurance on its ongoing growth path with even greater thrust. Mr. Shah has a
commendable expertise in managing a large number of employees.

Mr. Shah has been previously associated with Kotak Mahindra Primus since its
inception and has contributed towards its growth to become a Rs.2000 Cr plus
business. Before coming to Kotak Life Insurance, Gaurang Shah was Group Head
of Retail Assets for Kotak Mahindra Bank. The Retail Assets include commercial
vehicles, personal loans, structured products, car loans and loans against shares.

34

Mr. G Murlidhar (Chief Financial Officer)

Mr. Murlidhar is a Chief Financial Officer and Company Secretary of

Kotak Life Insurance. Mr. Murlidhar is an associate member of the
Institute of Chartered Accountants of India, an associate member of
the Institute Of Company Secretaries of India, and graduate member
of the Institute of Cost & Works Accountants of India. Mr. Murlidhar
possesses over 20-year work experience and has earlier worked with
National Dairy Development Board (NDDB), MDS Switchgear Limited
and Nicholas Piramal India Limited and Ion Exchange Ltd. Prior to
Kotak Life Insurance; he held the position of VP-Finance at Gujarat
Glass Ltd.

As Chief Financial Officer at Kotak Life Insurance, he oversees all aspects of

Finance including Operations, Regulatory, Internal Control, Finance, Accounts and
Treasury.
Mr. Nandip Vaidya (Vice President - Sales)Mr. Nandip Vaidya is the Vice President -
Sales at Kotak Life Insurance. Mr. Vaidya holds a B.Tech (Mechanical) degree from IIT Mumbai
and has also completed his Post Graduate Diploma in Business Management from IIM-
Ahmedabad. 35

He started his career as a Management Consultant at A.F. Fergusson. After completing

5 years there, he moved onto various positions within the Kotak Mahindra group starting
from Car Financing (Kotak Mahindra Finance Ltd) to Stock broking & Distribution of
investment products/ Mutual funds (Kotak Securities). Mr. Vaidya set up the private
banking business and private equity fund for the Kotak group.

Mr. Arun Patil (Vice President - Sales & Management Development)

Mr. Eksteen de Waal is the Sales Training Head of Kotak Life Insurance. He joined on
secondment from Old Mutual South Africa for a period of two years. Eksteen is a post- graduate
in Law and practiced Law as well as lectured at South African Universities before joining the Life
Insurance Industry. He has over 23 years' experience in the Life Insurance Industry. He worked
for Sanlam Life in South Africa for 3 years before joining Old Mutual more than 20 years ago.
Eksteen started with Old Mutual as a Legal Adviser and after that held various positions. He
sold life assurance for some time, served as Head of Old Mutual's Training Division, Head of
Old Mutual's Trust Company, Project Leader for implementing a new Sales Process with
McKinsey's, Head of Conventions and Motivation, Head of Agency Marketing and finally Head
of Banc assurance with Old Mutual Bank. In addition he played a role in the wider Industry. He
was Vice-President of the South African Insurance Institute for two years as well as Vice-
President of the Financial Planning Institute for three years. In this time Eksteen pioneered the
introduction of the CFP qualification into South Africa. He has traveled widely during his career,
working in the USA and England and also implemented Training Programme in Namibia,
Zimbabwe, Malawi and Kenai. His current role is to substantially upgrade the level of Training
and assist in the implementation of Performance Management Systems in Kotak Life Insurance.

36

2.5 Organization Structure of the Organization.

(DELHI BRANCH)

Branch manager

Assistant BM Branch Operations In

charge (BOE)

Sales Manager

Operation Executive

Assistant SM
Operations
 Life advisor

37

2.6 Product and service profile of the Organization.

Kotak Mahindra Prime Ltd.

Kotak Mahindra Prime Limited (KMPL) is a 100% subsidiary of Kotak Mahindra Group
(Kotak Group) formed to finance all passenger vehicles. The company is dedicated to
financing and supporting automotive and automotive related manufacturers, dealers and
retail customers. The Company offers car financing in the form of loans for the entire
range of passenger cars and multi utility vehicles. The Company also offers Inventory
funding to car dealers and has entered into strategic arrangement with various car
manufacturers in India for being their preferred financier.

As on March 31, 2005, KMP has a retail distribution network comprising of 54 branches
(including representative offices) covering about 100 locations in 17 states in the
country and has a wide network of Direct Marketing Associates, brokers and agencies
supporting the distribution network and servicing around 113,000 customers.

Kotak Mahindra Capital Company Ltd.

Kotak Investment Banking* (KIB) is India's premier Investment Bank

Kotak Investment Banking (KIB) and Kotak Institutional Equities represent the securities
business of the Kotak Mahindra Group ** (KI),

Kotak Investment Bank is a full service Investment Bank bringing to its clients the global
reach and the local knowledge and skills of Kotak Mahindra. As a full service
Investment Bank, Kotak Investment Baking’s core business areas include 38

Equity Issuances, Mergers & Acquisitions, Advisory Services and Fixed Income
Securities and Principal Business.

Its strength lies in understanding the clients' businesses backed by a strong research
team and an extensive distribution network, which spans a wide variety of investors
across the country. It is also the first Indian Investment Bank to be registered with the
Securities & Futures Authority in the UK (through our wholly owned subsidiary) and the
National Association of Securities and Dealers in the USA.

It’s the first Indian Investment Bank to be appointed by the Government of India as a
Co-lead Manager in their international divestment of Gas Authority of India Ltd through
a GDR offering.

Kotak Investment Bank today well positioned in an increasing globalize environment to

provide full service to its clients based either in India or overseas.

Kotak Mahindra Bank Ltd.

Kotak Mahindra Bank Limited (KMBL) is the holding company and the flagship of the
Kotak Mahindra Group. It was actually incorporated as Kotak Capital Management
Finance Limited on November 2, 1985 and obtained its ‘Certificate of Commencement
of Business on February 11, 1986.

It commenced operations with Bill Discounting and soon started other fund-based
activities like corporate leasing & hire purchase, automobile finance and money market
 operations. Subsequently, it also entered the funds syndication and the Investment
banking business.

39

Kotak Mahindra Asset Management Company

Kotak Mahindra Asset Management Company (KMAMC), a wholly owned subsidiary of

KMBL, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMAMC started
operations in December 1998 and has over 1, 35,000 investors in various schemes.
KMMF offers schemes catering to investors with varying risk- return profiles and was
the first fund house in the country to launch a dedicated gilt scheme investing only in
government securities.

International Subsidiaries

Kotak Mahindra International Limited (KMIL) is the international arm of the Kotak
Mahindra Group and was incorporated in 1994 in Mauritius, with a branch in Dubai.
Today the international operations also cover the United Kingdom, through Kotak
Mahindra U.K. Limited and in the USA, through Kotak Mahindra Inc. USA. These
companies are subsidiaries of Kotak Mahindra Capital Company (KMCC) – the
Investment Banking Division of the Group. Services offered include GDR and ADR
trading and broking, debt syndication, placement of Indian securities and advisory
services. Kotak Mahindra was the first Indian group to be registered with the Securities
and Futures Authority, U.K. Also, Kotak Mahindra is the first Indian group registered in
the US providing service to both Institutional investors and High Net worth Clients in the
US for their investments into Indian markets.
 40

Kotak Securities

Kotak Securities Ltd., subsidiary of Kotak Mahindra Bank Ltd., is one of India’s largest
brokerage and distribution house. Over the years Kotak Securities has been one of the
leading investment service providers catering to the needs of various investor
categories both institutional and non-institutional.

The Private client group (PCG) of the Company provides value added investment
advisory services to high net worth individuals, NRI investors, trusts, corporate and
Banks. The investment product range offered by PCG covers equity investment and
equity trading, equity derivatives, portfolio management, IPO’s and Mutual funds. The
Company has a full fledged research division involved in macro economic studies,
sectoral research and company specific equity research combined with a strong and
well networked sales force which helps deliver current and up to date market
information and news.

Kotak Securities Ltd., Depository Participant with National Securities Depository Limited
(NSDL) and Central Depository Services Ltd. (CDSL) provides dual benefit services
wherein the investors can use the brokerage services of the Company for executing the
transactions and the depository services for settling them.
 Under the Portfolio Investment Scheme offered by the Company, the funds of the
investors are managed by a highly competent team comprising of Equity Strategist, a
Portfolio Manager and a team of equity, technical and derivatives analysts.

Kotak Securities Ltd., also an Approved Intermediary under the Securities

Lending Scheme, 1997, facilitates clients to borrow and lend securities.

41

2.7 Market Profile of the Organization.

Kotak Mahindra one of India's leading financial institutions was born in

1985 as Kotak Capital Management Finance Limited. This company was promoted by
Mr. Uday Kotak, Mr. Sidney A. A. Pinto and Kotak & Company. Industrialists Mr. Harish
Mahindra and Mr. Anand Mahindra took a stake in 1986, and that's when the company
changed its name to Kotak Mahindra Finance Limited.

It's been a steady and confident journey to growth and success.

In October 2005, Kotak Group acquired the 40% stake in Kotak Mahindra Prime
held by Ford Credit International (FCI) and FCI acquired the stake in Ford 42

Credit Kotak Mahindra (FCKM) held by Kotak Group.

In March 2006, Kotak Group has agreed to buy 25% stake held by Goldman Sachs
in KMCC and KS subject to regulatory approvals.

Kotak Mahindra is one of India's leading financial institutions, offering complete financial
solutions that encompass every sphere of life. From commercial banking, to stock
broking, to mutual funds, to life insurance, to investment banking, the group caters to
the financial needs of individuals and corporate.

The group has a net worth of around Rs.2,000 crore and employs around 6,000 employees
across its various businesses servicing around one million four hundred thousand customer
accounts through a distribution network of branches, franchisees, representative offices and
satellite offices across 216 cities and towns in India and offices in New York, London, Dubai
and Mauritius.
• The project title is “Potential of Life Insurance Industry in DELHI
Market”. This shows the scope for private insurance companies have
great opportunities to cover the market and can insure the customer. With
the initiation of the deregulation in the Indian insurance market, the
monopoly of big public sector companies in life insurance market has
been broken. New private players have entered the market and with their
innovative approaches and better use of distribution channels and
technology, they are eating in to the shares of established public sector
companies in Indian Insurance Market. Since the deregulation has been
put in to place, the market share of LIC has come down to 71.4% in life
insurance market while the private players have captured around 17%
market in the general insurance segment. This report includes the key
private players in the insurance market such as ICICI Prudential, Kotak
Life Insurance Bajaj Allianz, Birla Sun life, and TATA AIG. 43

• It also includes the leading competitors in the life insurance and general
insurance segments along with their market shares.
 44

CHAPTER 3:

DISCUSSIONS ON TRAINING:

3.1 Student’s work profile (Role and Responsibility)

3.2 Description of live experiences.

 45

3.1 Student work profile

As a life insurance agent, what does your profile entail?

• Identifying prospects
• Determining their needs
• Offering the right solution
• Collecting references
• Learning to earn
• Being compliant and ethical
• Being disciplined

Career Skill Training (CST) – taking the first step.

Our training program focuses on developing skills, knowledge

and competencies through a high-quality curriculum, and allows
you to gain the experience you need to succeed in an insurance
career in kotak Mahindra life insurence. The program is divided
into several components:
• IRDA exam and licensing
• Classroom training on knowledge and skills
• In-agency on-the-job training

CST trains you for the IRDA license exam, while simultaneously
integrating the additional skills that differentiate a MetLife Advisor
from the others in the industry. Hone your prospecting, target
marketing, need-based selling, and customer service skills. Even
after your initial training is over, MetLife will continue to help you
refine your skills. Classes, self-study courses, and the attainment
of professional designations will always be an important part of
your ongoing training.

46

What is my career path?

As a KOTAK MAHINDRALIFE INSURANCE Advisor in an

insurance career, you have the choice of building your own
practice to advise customers or develop your managerial skills to
manage your own team of advisors. Therefore, you decide on
what career path you want to follow, and then put in the
necessary efforts to achieve your goals. Our Pegasus program
also offers you the opportunity to join MetLife management as a
Sales Manager, Trainer or in Operations.

What support will I get?

Work Space Support: We provide you with telephones and

computers to help you set appointments, conduct your business,
and review your performance.

Marketing and Sales Support: Make use of the numerous

innovative tools to help ensure that when it comes to closing the
sale, you are definitely a step ahead.

Managerial Guidance: With the guidance and support of our

highly experienced managers, you will discover and learn about
several opportunities to increase your sales and service your
existing customers.

What kind of compensation and rewards do I receive?

KOTAK MAHINDRA Financial Advisors enjoy some of the most
attractive compensation packages in the insurance industry.
These packages are commission-based and competitive.

The unique characteristic of this career is that there is no limit to

your earnings, unlike jobs in other industries. Here, your
earnings are determined by your own efforts and results. To give
you an example, if you sell 50 policies and generate a business
of Rs 5 lakh, you earn Rs 1.5 lakh at a commission rate of 30%
(*). Or, if you generate a business of Rs 30 lakhs, you will earn
Rs 6 lakhs, at 30%(*) commission rates.

47

Please note that all rates are indicative and may vary from.
3.2 DESCRIPTION OF LIVE EXPERIENCES

If you examine Google’s search result page, you’ll notice that the
description (the text under the linked title) displays the page’s
META description if present. Therefore, putting a different META
description in each of your website’s pages is important if you
want to attract clicks in search result pages where your site
ranks. If your description complements the title well, you can
attract more clicks. This blog uses this technique so if you go to
any of my pages here, you’ll notice I have a different META
description for each page.
What I’m going to show you in this post is how you can place a
dynamic META description in each page of your Wordpress blog.
I’m not sure if there are any Wordpress plugins out there that can
do this but I find this method more efficient than installing a
plugin because this only involves modifying your theme. If you’re
a Wordpress theme designer, I suggest you do this in all of the
themes that you make.
It’s pretty simple. You edit your theme’s header.php and add a
META description tag in the head section that has a dynamic
value. You can make its value dynamic by using PHP and
Wordpress template tags. This is how it works.
 48

CHAPTER 4:

STUDY OF SELECTED RESEARCH PROBLEM

4.1 Statement of Research problem.

4.2 Statement of Research Objective

4.3 Research Design and Methodology

4.4 Analysis of Data

4.5 Summary of Findings.

 49

STUDY OF SELECTED RESEARCH PROBLEM:

Some of the difficulties and limitations faced by me during my training are as

follows:

 Lack of awareness among the people – This is the biggest limitation

found in this sector. Most of the people are not aware about the importance and
the necessity of the insurance in their life. They are not aware how useful life
insurance can be for their family members if something happens to them.

 Perception of the people towards Insurance sector – People still

consider insurance just as a Tax saving device. So today also there is always a
rush to buy an Insurance Policy only at the end of the financial year like January,
February and March making the other 9 months dry for this business.

 Insurance does not give good returns – Still today people think that
Insurance does not give good returns. They are not aware of the modern Unit
Linked Insurance Plans which are offered by most of the Private sector players.
They are still under the perception that if they take Insurance they will get only 5-
6% returns which is not true nowadays. Nowadays most of the modern Unit
Linked Insurance Plans gives returns which are many times more than that of
bank Fixed deposits, National saving certificate, Post office deposits and Public
provident fund.

 Lack of awareness about the earning opportunity in the Insurance

sector – People still today are not aware about the earning opportunity that the
Insurance sector gives. After the privatization of the insurance sector many
private giants have entered the insurance sector.
50

 These private companies in order to beat the competition and to

increase their Insurance Advisors to increase their reach to the customers are
giving very high commission rates but people are not aware of that.

 Increased competition – Today the competition in the Insurance

sector has became very stiff. Currently there are 14 Life Insurance companies
working in India including the LIC (life insurance Corporation of India). Today
each and every company is trying to increase their Insurance Advisors so that
they can increase their reach in the market. This situation has created a scenario
in which to recruit Life insurance Advisors and to sell life Insurance Policy has
became very very difficult.
 51

4.2 Statement of Research Objective:

The main of the present study of is accomplish the following objective.
 Proper understanding and analysis of life insurance industry.
 To know about brand awareness of Kotak Life Insurance and customer’s
preference about Kotak Life Insurance.
 Conduct market survey on a sample selected from the entire population
and derived opinion on that research.
 According the market survey come know about how much potential of
insurance market in our city.
 And base on analysis of the result thus obtained make a report on that
research.
 Training aims at recruiting maximum number of Life Advisors and to Sell
the maximum policies for the company and bring the business for the
company which ever is going at the particular point of time.
 Along with it I will be gaining the thorough knowledge of insurance sector.
This will give me in more confidence in marketing products given to me.
  As the Kotak Life Insurance well reputed company in India it’s great
chance for me to observed different products launch by other competitor
companies like ICICI prudential, Bajaj alliance ,LIC, Max New York life etc.
In all, it is to understand the overall working of the Life insurance sector.
 The objective behind the project is as follows:
 To find the right candidate.
 To about their family background, occupation, social relation, Qualification,
Age.
 Finalize candidates for the IRDA training

52

4.3 Research Design and Methodology

RESEARCH METODOLOGY

Research always starts with a question or a problem. Its purpose is to question through
the application of the scientific method. It is a systematic and intensive study directed
towards a more complete knowledge of the subject studied. Marketing research is the
function which links the consumer, customer and public to the marketer through
information- information used to identify and define marketing opportunities and
problems generate, refine, and evaluate marketing actions, monitor marketing actions,
monitor marketing performance and improve understanding of market as a process.
Marketing research specifies the information required to address these issues, designs,
and the method for collecting information, manage and implemented the data collection
process, analyses the results and communicate the findings and their implication.

I have prepared our project as descriptive type, as the objective of the study demands
the answers of the question related to find the potentiality of life insurance in DELHI:
How much potential is there in DELHI?

The Marketing Research Process

As marketing research is a systemic and formalized process, it follows a certain

sequence of research action. The marketing process has the following steps:

 Formulating the problems

 Developing objectives of the research 53
 Designing an effective research plan
 Data collection techniques
 Evaluating the data and preparing a research report

There are two types of data collection method use in my project report.

– Primary data
– Secondary data.

For my project, I decided on primary data collection method for

observing working of company and approaching customers directly
in the field, tele-calling, cold calling, campaigning and through
references to know their interest in business with company
in my project and also make questionnaire for creating database of business class
people is DELHI city for company.

I decided on Secondary data collection method was used by referring to various

websites, books, magazines, journals and daily newspapers for collecting information
regarding project under study.

54

DATA COLLECTION

After the research methodology, research problem in marketing has been

identified and selected; the next step is together the requisite data. There are two types
of data collection method – primary data and secondary data.

In our live project, we decided primary data collection method because our study
nature does not permit to apply observational method. In survey approach we had
selected a questionnaire method for taking a customer view because it is feasible from
the point of view of our subject & survey purpose. We conducted 200 sample of survey
in our project.

55
4.4 Analysis of Data

56

57
 Age Wise Clasification
45 44
40

35

30
No. of Customers

25
22 23
20

15
11
10

0
18-25 26-30 31-45 46 & Above
Years

58
59

Gender No of
Member
MALE 66
FEMALE 34
AGE No Of Members
18-25 11
26-30 22
31-45 44
46 to above 23
 Gender wise clasification
70
66
60

50
No. of Customers

40
34
30

20

10

0
MALE FEMALE
Years

60
 Members

50
48
45

40 40
35
No. of Customers

30

25

20

15
12
10

0
2 to 4 5 to 8 8 to aboce
No of members

Family member No of Member

2-4 40
5-8 48
8 to above 12

61
 Income No of Members
40K -70K 17
70K-1 Lake 41
1 Lake to 3 Lakes 28
3 Lacks 14

62
 Income Wise Classification

45

40
41
35

30
28
No. of Customers

25

20
17
15 14
10

0
40 k to 70k 70k to 1 Lake 1 Lake to 3 3 Lake to
Lakes Above
Income (P.A)

63

Insurable Uninsurable
Member member
42% 58%
 NO OF MEMBER HAVING INSURANCE

NO
58%
YES
42%

64

Only 42%people having insurance in DELHI so it is

potential for insurance company to capture to all that
market
 40 40

35

30 28
No. of Customers

25
21
20 18
15
11
10

0
Self Spouse Children Parents All

65
Among that 42% people who having insurance, they have
insurance 40% for self 28%for spouse 21% for children
and 18% for their parents and 11% for all family member.

Having insurance No of members

Self 40
Spouse 28
Children 21
Parents 18
All 11

Different policy bought by customers

66
 35
LIC
30
ICICI
25

No. of Customers
Birla
Sunlife
20
SBI

15
HDFC

10
Bajaj
Alliance
5
TATA
AIG
0 Kotak
Term Plan Endowment Whole life Money Back Retirement Child Plan Unit Link
Plan Mahindr
a
Different Plans ING
Vyasya

Max
Newyork

Met Life

67
Under insurable Fully insurable
persons persons
82% 18%

Potential of life insurance

Under Insured
82% Fully Insured
18%
Only 42 % people having life insurance but among them
82% people are underinsurance and only 18% people are
fully insured according to them income
68

Insurance Plan Market Share

Term Plan 39%
Money back Plan 14%
Endowment Plan 15%
Child Plan 8%
Unit link Plan 24%
69

Market share of diffrent Insurance plan

Unitlink plan
24% Child Plan
8%

Endownment Plan
15%

Term Plan
39% Moneyback Plan
14%
 .70

4.5 Summary of Findings.

My project and also make questionnaire for creating database of business class people
is DELHI city for company.

I decided on Secondary data collection method was used by referring to various

websites, books, magazines, journals and daily newspapers for collecting information
regarding project under study. And my knowllege criyet more problem but more benefits
get me in the project.

And I was get the help our friend and teachers and our organization.
 71

CHAPTER 5:

SUMMARY AND CONCLUSIONS

5.1 Summary of learning experience

5.2 Conclusion and Recommendations

 72

SUMMARY OF LEARNING EXPERIENCE

These sectors really have a lot of responsibility towards the economy.

• How to interact with customers and solve their queries

• What is the actual atmosphere prevail in company.
• Learned and build confidence in giving presentations.
• Learned the strategy which we have to implement in searching customers.
 75

5.2 Conclusion and Recommendations.

 All the insurance company must advertise more in the market because not all
people know more about life Insurance policy.

 Most number of people wants Guaranteed Returns so company must focus on

this for the customer investment.

 Make insurance policy which can buy any one so we can insured them through
this type of life insurance policy.
 76

APPENDIX-1

Questionnaire
Name :

Address :

Contact No:

1. Age

1) 18-25 2)26 to 30 3) 31 to 45 4) 46 to above

2. Gender

1) male ____) female____

3. Occupation:

1) Service 2) Business 3) Professional 4 ) other _________________

4. Number of Family member.

1) 2 to 4 2) 5 to 8 3) 8 to above
5) Which Mode of Communication you prefer ?

a. Telecommunication b. Sales Staff Visit c. E-mail

6) Have you taken any life insurance plan?

Yes______ No_______

If yes,

77

Which is it?

Company’s Term Endowm Whole Money Retire Child Unit

name plan ent life back ment link
Plan
Plan

LIC

ICICI
Prudential

Birla Sunlife

SBI Life

HDFC
Standard Life

Bajaj Alliance

TATA AIG

Kotak
Mahindra

ING Vysya

Max Newyork
Met Life

Reliance

Shri Ram

Sahara

7) What is your annual income?

1) 40 K to 70 K 2) 70 K to 1 lake 3) 1 lake to 3 lakes 4) 3 lakes to above

78

Signatur
es

Bibliography:
www.scribd.com.

www.wikipidia.com.

Research Methodology – Kothari

www.Google.com

www.kotak.com
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