ANANDA MOHAN COLLEGE

INSURANCE INDUSTRY IN INDIA

“AN OVERVIEW OF PERFORMANCE OF INSURANCE COMPANY

WITH SPECIAL FOCUS ON LIFE INSURANCE COMPANY.”

SUKDEV GHOSH.

Maharaja Sris Chandra College

C.U.Registration No. : 111-1114-0138-20
C.U.ROLLNo. : 201111-21-0157
 ANANDA MOHAN COLLEGE
Project Report
(Submitted for the Degree of B.Com. Honours in Accounting &
Finance under the University of Calcutta)

Title of the Project

INSURANCE INDUSTRY IN INDIA

“AN OVERVIEW OF PERFORMANCE OF INSURANCE COMPANY
WITH SPECIAL FOCUS ON LIFE INSURANCE COMPANY.”

Submitted by
Name of the Candidate : SUKDEV GHOSH.
C.U. Registration No. : 111-1114-0138-20
C.U. ROLL No. : 201111-21-0157

College Roll No. : 200869

Supervised by

Name of the Supervisor : Prof. Dr. Subhas Ray Chaudhuri

Month & Year of Submission

May,2023
 Supervisor's Certificate

This is to certify that Mr. Sukdev Ghosh a student of B.Com. Honours in Accounting &
Finance of Ananda MohanCollege under the University of Calcutta
has worked under my supervision and guidance for his/her Project Work and prepared
a Project Report with the title “AN OVERVIEW OF PERFORMANCE OF
INSURANCE COMPANY WITH SPECIAL FOCUS ON LIFE INSURANCE
COMPANY.”
which he is submitting, is his genuine and original work to the best of my knowledge.

(Signature)
Place: Kolkata Name: Prof. Dr. Subhas Ray Chaudhuri
Date:
Designation: Assistant Professor in
Commerce
Name of the College : Ananda Mohan
College
 Student's Declaration

I hereby declare that the Project Work with the title .

Submitted by me for the partial fulfillment of the degree of B.Com. Honours in
Accounting & Finance under the University of Calcutta is my original work and has not
been submitted earlier to any other University for the fulfillment of the requirement for
any course of study.
I also declare that no chapter of this manuscript in whole or in part has been incorporated
in this report from any earlier work done by others or by me. However, extracts of any
literature which has been used for this report has been duly acknowledged providing
details of such literature in the references.

(Signature)
Name: SUKDEV GHOSH
Address: 460 PURBA SINTHEE
ROAD, DUMDUM, KOL-30
C.U Registration No. : 111-1114-0138-20
C.U ROLL NO : 201111-21-0157

Place: KOLKATA
Date:
 ACKNOWLEDGEMENT

This is my proud privilege to express my deepest sense of gratitude &

indebtedness to my supervisor Prof. Dr. Subhas Ray Chaudhuri of the
department of the commerce, words perhaps would fail to express the gratitude
I owe to him. It would have been impossible for me to complete the project
without his constant & valuable suggestion at every stage of the project work.

I am also grateful to our Principal and all other teachers of the department of
commerce for their constants support.

………………………..

(SIGNATURE)
 TABLE OF CONTENT

CONTENTS PAGE
NO.

1 INTRODUCTION 1
 Statement of the problem 2
 Objective of the study 2
 Limitations of the study 2
 Benefits of the study 3
 Research methodology 3
 Review of literature 3-4

 Chapter planning 4

2 CONCEPTUAL FRAMEWORK
 History of Life Insurance 5-6
 Classification of Insurance 6-7
 Growth of Life Insurance 7-8
 Claim settlement ratio 9
 New policy issued 10
 PMSBY Scheme 10-11
 PMJJBY Scheme 11-12
 Role of the Insurance Regulatory and Development
Authority (IRDAI) 12
 Some private Life Insurance Companies 13

 National and International Scenario 14

3 PRESENTATION,ANALYSIS & FINDINGS 15-29

4 CONCLUSION & RECOMMENDATION &

SUGGESTIONS 30-31

BIBLIOGRAPHY 32

ANNEXURE-1 33-34
 CHAPTER-1

INTRODUCTION:

Life insurance is designed to protect life and to product family against financial uncertainties that may
result due to unfortunate demise or illness. It can also view as a comprehensive financial instrument,
as a part of the financial planning offering savings & investment facilities along with cover against
financial loss. By choosing the right policy as per the needs. i.e. customized solutions, you will be
able to plan for a secure future for yourself and your loved ones.

We all have different financial needs and objectives. But life insurance plays a fundamental
role in most of our plans for financial security. That's because of the variety of life insurance
plans available and the many ways they can be customized to meet unique needs at different
periods of your life.

This statement is self-explanatory that man has no control on its life and results of its human
activities. It means that there is always uncertainty of the results of human activity. From the
moment of birth, till the end of life, all material possessions are also continually exposed to
uncertainty. So, we can say that-

This uncertainty leads to fear of risk in our life. Fear of risk can be satisfied by taking all
precautions to avoid risk. In spite of all precautions, accident occurs. So, only these
precautions are not sufficient to avoid the consequences of uncertainty, but it requires more
effective technique to deal with the problem of risk in our society. We can deal with the risk
in various ways but insurance is one of the best techniques to deal with the risk.

1
 a) REVIEW OF LITERATURE

In the present section an attempt has been made to examine the review of literature related to
the study. Bapat, H.B., Soni, V., Joshi, R. (2014) studied the products offering of largest public
sector , Life Insurance Corporation of India and the private sector giant ICICI Prudential Life
Insurance Company Limited on the aspects of applicability of SERQUAL dimensions to
current product offering . Kotgiri, S. (2013), has focused on working of insurance players in
Indian scenario and comparison in terms of growth in insurance industry and trend of
customers of investing amount in particular plans. Some important aspects like amount of
investment habits change in attitude of customer’s investment, importance given to the type of
business organization are also analyzed. Sharma, V. & Chauhan, D.S. (2013), analyzed the
performance of public and private sector life insurance companies in India. Through
privatization of the insurance sector is feared to affect the prospects of the LIC, the study
shows the LIC continuous to dominate the sector. Private sector insurance companies also tried
to increase their market shares. Nena, S. (2013) has highlighted the growth and performance of
LIC by analyzing the major source of income (premium earned) of the sampled unit, as well as
the significant heads of the study. The study shows consistent increase in LIC business. As
private players are coming up now a day, competition is increasing and LIC has made efforts
to continue its business. Shashi, P. (2013), has made an effort to know whether the
implemented strategies have truly helped LIC of India in the changing trends of the society and
has also suggested how these recent trends have helped LIC of India as a whole to manage the
existing leading position in the Life Insurance market. Bedi, H. S. and Singh, P. (2011),
revealed that there is a tremendous growth in the performance of Indian Life Insurance
Industry and LIC due to the policy of LPG and due to the emergence of private sector and
opening up for foreign players. There is an increasing trend toward the investment in stock-
market by LIC due to the effective regulation of SEBI and increasing transparency of stock-
market.

2
 b) Objectives of the Study

 To understand the importance of insurance in present scenario.

 To know various scheme of Life Insurance Company.
 To know the awareness of consumer regularly selected insurance
companies.

c) RESEARCH METHODOLOGY
To fulfill the objectives of the present study, the following research methodology
has been used:-

c) Selection of LIC for study: In Life Insurance industry, LIC plays a major role as one and
only company in public sector. That is why; the researchers have selected LIC for analyzing
its role in Life Insurance Industry.

d) Collection of data: The main sources of secondary data are published annual reports,
manuals, books, journals, articles, business magazines and other research papers.

e) Period of Analysis: In order to achieve the objectives of the study, a time-series data on
the relevant indicators have been collected from 2010 to 2015.

f) Analysis of data: To achieve the objectives of the study, the collected data has been
analyzed in tabular form as well as by using statistical tools like percentage and growth rates.
And also taken help from primary data as QUESTIONNAIRE among 50 people in Baranagar
area (North Kolkata) by random survey.

d) LIMITATIONS OF THE STUDY

a. The researchers could cover only the position of LIC of India in Life Insurance
Industry.
b. The study does not contain the comparison of LIC of India with other insurance
company.
c. The area of the study is kept limited due to the short time and financial position.
d. Since the study is based upon primary data, hence the result will depend on these
data.
e. The latest financial data could not be reported as the company’s websites have
not been updated.
3
 e) CHAPTER PLANNING

The whole project should be divided in 4 chapters. That’s:-

1. Introduction
2. Conceptual Framework
3. Presentation of Data, Analysis & Findings
4. Conclusion & Recommendation

Bibliography

Annexure

4
4
 CHAPTER-2

CONCEPTUAL FRAMEWORK:

a) HISTORY OF LIFE INSURANCE

The story of insurance is probably as old as the story of the mankind. The same
instinct that prompts modern businessman 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 Indian natives were not being
insured by these companies. 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 companies 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 Capital
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 Insurance Company took its birth in one of the rooms of the Jorasanko,
house of the great poet Rabindra Nath 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

5
 to regulate insurance business. In the year 1912, 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 20 th Century saw lot of growth in
insurance in business. From 44 companies with total business-in-force as Rs.22.44
crores it rose to 176 companies with total business-in-force as Rs. 298 crores in 1938.
During the mushrooming of insurance companies many financially unsound corner
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 1944
when a bill to amend the Life Insurance Act 1938 was introduced in the legislative
assembly. However , it was much later on the 19 th 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 of India was created on 1September, 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.

b) CLASSIFICATION OF INSURANCE

1. Life Insurance
2. Non Life Insurance- Property Insurance, Casualty Insurance, Health Insurance

6
 Life Insurance:

Life Insurance is a contract that pledges payment of an amount to the person assured (or his
nominee) on the happening of the event insured against. The contract is valid for payment of
the insured amount during:

i) The date of maturity, or

ii) Specified dates at periodic intervals, or
iii) Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium
periodically to the corporation by the policyholder. Life Insurance is universally
acknowledged policyholder. Life Insurance is universally acknowledged certainty
for uncertainty and comes to the timely aid of the family in the unfortunate event
of death of the breadwinner. By and large, life insurance is civilization’s partial
solution to the problems caused by death. Life insurance, in short, is concerned
with two hazards that stand across the life-path of every person:
1. That of dying prematurely leaves a dependent family to fend for itself.
2. That of living till old age without visible means of support.
c) Growth of Life Insurance New Business in India
With the entry of private insurers in life insurance business,it is obvious that some
proportion of new business will go in the hands of private life insurers. An
attempt, therefore, has been made to study the growth of new business in terms of
policies and premium income of Indian life insurance industry. Further, the share
of private insurers and LIC in total new business has also been studied. The
following table reveals that total new business policies of life insurance industry
increased from 253.71 lac in 2002-03 to 353.74 lac in 2010-11, registering a
growth rate of 16.1 per cent during the period of study. Similarly, total new
business premium of life insurance industry increased from Rs. 9707.45 crore in
2000-01 to Rs. 92988.71 crore in 2007-08, which showed a growth rate of 35.1 per
cent during the period of study. It is worth noting that the percentage share of
private life insurers was higher (36.36%) in case of new business premium as
compared to new business policies (26.07%), which meant that per policy

7
 premium income of private life insurers was higher than LIC during the above
period. Coefficient of variation stood at 20.85 per cent and 96.36 per cent in terms
of policies for LIC and private life insurers respectively. This shows that growth
was more consistent for LIC as compared to private life insurers both in terms of
policies and premium.

Table- 1

LIC PRIVATE CO. TOTAL

YEAR NO.OF PREMIUM NO.OF PREMIUM NO.OF PREMIUM
POLICIES (RS. IN POLICIES (RS. IN POLICIES (RS. IN
(IN LAC) CRORE) (IN LAC) CRORE) (IN LAC) CRORE)

2002-03 245.46 15976.76 8.25 965.60 253.71 16942.36

2003-04 269.68 17347.62 16.59 2440.70 286.27 19788.32
2004-05 239.78 20653.06 22.33 5564.57 262.11 26217.63
2005-06 315.91 28515.87 38.71 10269.67 354.62 38785.54
2006-07 382.29 56223.56 79.22 19393.69 461.51 75617.25
2007-08 376.13 59182.20 132.61 33806.51 508.74 92988.71
2009-10 270.58 61718.52 111.65 24980.33 382.23 86698.85
2010-11 262.08 67135.31 88.45 26328.49 350.53 93463.80

8
 d) Claim Settlement Ratio 2014-2015 Announced by IRDA
Claim Settlement Ratio = Total Claims Approved (paid to nominees) divided by Total Claims
Received by the Company.Overall, the claim settlement ratio for the life insurance industry
stands at 97%, but a lot of it is because of LIC’s large base with very high CSR. A lot of
private life insurance companies are now ‘matching up’, although like we mentioned in the
disclaimers above, it may not be an equal comparison. Here’s all the information on CSR

TABLE-2

INSURER CLAIMS CLAIMS CLAIMS AVG.TIME CLAIMS CLAIMS

RECEIVED APPROVED RATIO TAKEN REJECTED PENDING
LIC. OF 755901 742243 98.19% 26 DAYS 1.1% 0.5%
INDIA
MAX LIFE 9149 8786 96.03% 26 DAYS 3.9% 0.1%
BIRLA SUN 8453 8056 95.30% 29 3.0% 1.7%
LIFE
TATA AIA 3873 3659 94.47% 30 4.6% 1.0%
LIFE
STAR UNION 1266 1191 94.08% 19 5.6% 0.3%
DAI-ICHI
ICICI 12309 11546 93.80% 20 5.4% 0.8%
PRUDENTIAL
LIFE
PNB 2466 2290 92.86% 15 5.6% 1.5%
METLIFE
BAJAJ 20661 18978 91.85% 28 5.1% 3.0%
ALLIANZ
LIFE
KOTAK LIFE 2686 2437 90.73% 28 6.0% 3.2%
HDFC LIFE 12189 11031 90.50% 25 7.2% 2.3%

9
 e) New Policies Issued:- During 2012-13, Life Insurance issued 441.87 lakhs new
policies, out of which LIC issued 367.82 lakhs policies (83.24% of total policies
issued). from 2005-06 to 2010-11; there is a decrease in growth rate in new policies
issued by LIC. But increased its efficiency & become able to increase its number of
new policies issued gradually.
The performance of LIC in terms of new policies business has deteriorated and those
of private players have been improved tremendously. In 2001-02, the number of
policies of LIC was only 232.75476 lakhs which increased to 269.68069 lakhs in
2003-04. Hence it can be inferred that, there is considerable growth in the number of
new policies business in a period of post liberalization
f) PMSBY SCHEME
Prime Minister Narendra Modi has launched another flagship social security scheme Pradhan
Mantri Suraksha Bima Yojana (PMSBY) which is an accidental death and disability
insurance scheme.A large part of the Indian population lives in rural areas and most of them
are not covered under any kind of social security scheme. A large section of this population
has not even gained the benefits of the banking system and most are still unaware of various
governmental schemes that are launched from time to time.To correct this serious anomaly in
the lives of ordinary and poor people, the Pradhan Mantri of India launched the PMSBY
scheme in Kolkata on 9 May, 2015 along with two other insurance- and pension-related
schemes. Such is the seriousness of the government to make these schemes a success that
almost the entire senior Cabinet has fanned out to various state capitals and major towns to
launch the scheme simultaneously and ensure its successful implementation.There are two
aspects of PMSBY that make it different in its offering and approach. Firstly, it is the sheer
size and depth of inclusion to bring and get covered the maximum number of people under
this scheme, which kind of makes it very ambitious and challenging. Today, if an earning
member of a family becomes permanently disabled or dies an accidental death, his or her
family faces a life in penury and hardship, with no protection or support from any institution
or group. By joining the PMSBY scheme and by paying a nominal premium of Rs. 12/- per
person per year, he or she will get an insurance cover for a sum of Rs. 2,00,000/- (two lakh)
in case of accidental death or permanent full disability or a sum of Rs. 1,00,000/- (one lakh)
in case of partial but permanent disability. The scheme will be valid for a year and it can be
renewed every year.A lot of government social security schemes have not received a very
positive response from people due to lack of financial system infrastructure at a nearby
location and moreover, the paperwork involved in opening accounts or making claims was too
much for them to handle. Even the leakages in the system resulted in large

10
 sections remaining excluded from the benefits of these schemes. This has now been largely
addressed by the present government that has made extensive use of technology to augment
its social scheme delivery and monitor mechanisms. All the payments will be directly credited
to the beneficiary’s account with no scope for leakages.

g) PMJJBY SCHEME

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is one of the several
ambitious social security programmes initiated by Narendra Modi. It is basically a
term life insurance policy that can be renewed either on a yearly basis or for a longer
period of time. It will provide life insurance coverage on the death of the
policyholder.

Eligibility:

The Pradhan Mantri Jeevan Jyoti Bima Yojana will be made available to anyone
between the age group of 18 to 50 years. The concerned person should also have a
bank account. People, who avail this policy before they are 50 years old, will be
allowed to enjoy the risk of life cover till the age of 55 years. However, they will need
to pay the premium on a consistent basis in order to be provided that benefit.

About Premium :

The policyholders will need to pay INR 330 per year. The amount will be
deducted each year from their bank account in a single installment. This will be
done by the bank from where the policy is being opened.

Risk Coverage :

The risk coverage being provided in the Pradhan Mantri Jeevan Jyoti Bima Yojana is
INR 2 lakh. In case the policy has been availed for a longer term period than just a
year, the amount will be deducted for each year of the agreed term period from their
respective bank accounts.

Programme Offer: Life Insurance Corporation of India (LIC) will be offering the
plan. However, other life insurers, who are eager to take part in

11
 the programme, can join it through tie-ups with specific banks. The banks, whose
clients join the programme, will be deemed as the master account holders in case of
the PMJJS. The LIC or the other insurers will finalise the claims settlement and
administration procedures, which are expected to be simple and friendly towards the
subscribers. This will be done in consultation with the banks.

h) Role of the Insurance Regulatory and Development Authority

(IRDAI) The Insurance Regulatory and Development Authority (IRDAI) was

constituted to regulate and develop insurance business in India. As a key part of its
role, it is responsible to protect the rights of policyholders. In order to create
awareness about IRDAI, it's role, duties and responsibilities are stated here under:

 IRDAI provides a certificate of registration to a life insurance company.

 IRDAI is responsible for the renewal, modification, withdrawal, suspension or
cancellation of this certificate of registration.
 IRDAI frames regulations on protection of policyholders' interests.
 It offers policyholders the right to voice their complaints against insurers or insurance
companies.
 The IRDAI has set up the grievance redressed cell to take up the complaints of the
policyholder.
 It specifies the requisite qualifications, code of conduct and practical training for
intermediaries or insurance intermediaries and agents.
 It specifies the code of conduct for surveyors and loss assessors;
 It promotes efficiency in the conduct of insurance businesses;
 It promotes and regulates activities of professional organizations connected with life
insurance;

12
 i) Some private life insurance companies :

SBI LIFE INSURANCE HDFC LIFE INSURANCE

Type - Joint Venture Type - Private company

Industry - Insurance Industry - Insurance Services

Founded - March 2001 Founded - 2000

Headquarters- Mumbai, India Headquarters - Mumbai, India

Area served - India

Products - Life Insurance, pension ,

Owner - SBI, BNP Paribas

Number of employees - 7,335 on-roll employees

and 96,000 agents

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 j) National and International Scenario :-
The most important aspect for any financial services institution dealing with today’s
regulatory framework is the need to build an integration, risk, compliance and
regulatory environment. The globalization of business, the proliferation of, and
dependency on, technology, and the preservation of a trusted and secure environment
to facilitate financial institutions, all require trusted and secure environment to
facilitate financial institutions, all require trusted and secure environment to facilitate
financial institutions, all require financial services organizations to have in placed the
mechanisms to ensure sound and reliable security and privacy. The industry’s
landscape is continuously changing and increasing in complexity across financial
service, causing firms to face a diverse array of challenges and concerns. Role of
private sector has grown rapidly in the service industry. Especially with reference to
Insurance management.
Grounded in a deep understanding of the issue, we have tried to deal with today’s life
insurance and financial services environment in a very lucid manner covering all the
aspects such as productivity, management of process, growth drivers, critical factors
for success and policy implications.

14
 CHAPTER-3

Presentation, Analysis & Findings:-

a) Based on secondary data: Based on Google Report to analysis financial conditions of

ther companies.

1) MARKET SHARE OF PUBLIC AND SOME PRIVATE

SECTOR COMPANIES BETWEEN 2014-15 AND 2015-16:-
CHART-1

MARKET SHARE

13%
2%

LIC OF INDIA
5%
SBI LIFE
5% ICICI PRUDENTIAL LIFE

5% HDFC LIFE
BAJAJ ALLIANZ LIFE

70% OTHERS LIC CO.

(Source: Secondary Data)

According to above presentation it has seen that LICI plays a vital role in Life Insurance
Industry .They hold 70% market share in between 2014-15 to 2015-
16. And other Private LIC companies like SBI LIFE, ICICI PRUDENTIAL LIFE, HDFC
LIFE, BAJAJ ALLIANZ LIFE and others LIC company hold 5%, 5%, 5%, 5%, 2%, 13%
Market Share respectively.

15
 2) CURRENT RATIO OF PUBLIC AND PRIVATE SECTOR
COMPANIES BETWEEN 2008-2012 :
CHART-2

CURRENT RATIO

3.5

3
Название оси

2.5
2

1.5

0.5

0
LIC OF INDIA SBI LIFE ICICI Prudential HDFC Standard
INSURANCE Life Insurance Life Insurance
COMPANY Company Company
2008 1.93 0.6 0.59 1.37
2009 2.48 0.39 0.57 1.06
2010 2.25 0.55 0.37 0.62
2011 3.72 0.77 0.41 0.8
2012 3.08 2.41 0.53 0.85

(Source: secondary data)

This presentation helps us to know that LIC of India has more current ratio than
any other life insurance companies in every year.

16
 3) TOTAL NO. OF EMPLOYEES OF PUBLIC AND SOME
PRIVATE SECTOR COMPANIES BETWEEN ( According to 2012)
CHART-3

NO.OF EMPLOYEES
140000

120000

100000
оси

80000
Названи

60000
е

40000

20000

0
ICICI
LIC OF HDFC KOTAK
SBI LIFE PRUDEN
INDIA LIFE LIFE
TIAL LIFE
NO.OF EMPLOYEES 119767 7355 15819 13500 5000

(Source: secondary data)

This above presentation is helpful to know that LIC OF INDIA has more employees than
other PRIVATE LIC COMPANIES.

17
LIFE INSURANCE IS NECESSARY FOR ANY
0%

Yes
NO

100%
 b) Based on primary data:
 [Questionnaire base random survey among 50 people in Baranagar
area (North Kolkata)]

4) ARE YOU AWARE OF IRDA INVESTOR PROTECTION

GUIDELINES?

Ans:- a) YES- 42 , b) No- 08

NO.OF PEOPLE AWARE THAT MANY LIFE

INSURANCE COMPANY(SBI LIFE,HDFC LIFE
ETC.) PROVIDING LIFE INSURANCE
COVERAGE APART FROM LICI

NO 8 NO.OF PEOPLE AWARE

THAT MANY LIFE
INSURANCE COMPANY(SBI
LIFE,HDFC LIFE ETC.)
YES 42 PROVIDING LIFE INSURANCE
COVERAGE APART FROM
LICI

0 10 20 30 40 50

(Source: survey data)

From the above presentation it has been cleared that majority of people (84%)
are aware that many life insurance companies (SBI LIFE,TATA AIA LIFE,
HDFC LIFE,BAJAJ ALLIANZ etc.) providing life insurance coverage apart
from LICI.

18
19
 WHICH LIFE INSURANCE COMPANY YOU LIKE

OTHERS (SBI LIFE)

TATA AIA LIFE

HDFC LIFE

LIC OF INDIA

0 10 20 30 40

OTHERS (SBI
LIC OF INDIA HDFC LIFE TATA AIA LIFE
LIFE)
WHICH LIFE INSURANCE
35 6 5 4
COMPANY YOU LIKE MOST?

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 5) Why do you like the above selected company?

Ans :- a) MORE SECURED- 30 , b) MORE BENEFITED- 11

c) EASY SYSTEM- 08 , d) OTHERS – 01

CHART-7
35

30

25

20

WHY DO YOU LIKE THE ABOVE

15 SELECTED COMPANY?

10

0
MORE MORE EASY SYSTEM OTHERS
SECURED BENEFITED

(Source: survey data)

This presentation shows us that (60%) of consumer select Life Insurance Company
for
Getting more secured, 22% for being more benefited, 16% for getting easy system
and rest are 2% for other reason.

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 6) DO YOU THINK THE SAFETY OF THE INVESTMENTS MADE IN LIFE
INSURANCE COMPANIES SHALL BE PROTECTED BY THE
REGULATORY BODY? [i.e. IRDA]
Ans:- a) YES- 36 , b) NO- 14

CHART-8

NO. OF PEOPLE THINK THE SAFETY OF THE

INVESTMENT MADE IN LIC COMPANIES YES, 36 NO, 14
SHALL BE PROTECTED BY IRDA

0 10 20 30 40 50 60

(Source: survey data)

This above presentation shows us that maximum no of consumer (72%) are
aware of safety of the investment made in Life Insurance Company shall be
protected by IRDA.

20
 7) DO YOU FEEL THAT THE PREMIUMS PAID IN PRIVATE LIFE
INSURANCE COMPANIES ARE SAFE?
Ans:- a) YES- 31 , b) NO – 19
CHART-9

NO.OF PEOPLE FEEL THAT THE

PREMIUM PAID IN PRIVATE LIFE
INSURANCE COMPANIES ARE SAFE.
35

30

25

20

15

10

0
YES NO
NO.OF PEOPLE FEEL THAT
THE PREMIUM PAID IN
31 19
PRIVATE LIFE INSURANCE
COMPANIES ARE SAFE.

(Source survey data)

This data show us that the maximum no of consumer (62%) are feeling safe about the
premium paid in Private Life Insurance Companies.

21
 NO.

NO. OF POLICY
TAKEN BY THE
MORE THAN 2

0 5 10 15 20 25 30 35 40
 8) WHY DID YOU TAKE THEM? IS IT DUE TO :
Ans:- a) AGENT FORCE – 02 , b) FOR EFFECTIVE SAVING - 22 , c) TO
MEET FUTURE EXPECTED EXPENSES – 21 , d) ANY OTHER- 05
CHART-11

30
22
20 21

10 2

0 5

AGENT FORCE
FOR EFFECTIVE
SAVING TO MEET FUTURE
EXPECTED ANY OTHER
EXPENSES

REASON BEHIND TAKEN THE INSURANCE POLICY

(Source: survey data)

It can be inferred that 44% of consumer buy the life insurance policy for effective savings,
42% of consumers buy the life insurance policy for meet future expected expenses, 4% of
consumers buy the life insurance policy for agent forces and 10% of consumers buy the life
insurance policy for other reason.

22
26
 9) WHAT DO YOU THINK WHICH COMPANY IS BETTER ACCORDING TO
SECURITY PURPOSE?
Ans :- a) LIC OF INDIA – 42 , b) PRIVATE LIFE INSURANCE COMPANIES
( SBI LIFE, HDFC LIFE, TATA AIA LIFE ETC.) – 08
CHART-13

NO. OF PEOPLE THINK WHICH COMPANY IS BETTER

ACCORDING TO SECURITY PURPOSE
LIC OF INDIA
PRIVATE LIFE INSURANCE COMPANIES ( SBI LIFE, HDFC LIFE, TATA AIA LIFE ETC.)

16%

84%

(Source: survey data)

Above presentation shows that max. no of consumers (84%) choose Life Insurance
Of India for the reason of security purpose .

23
 10) INDICATE THE LEVEL OF STATISFACTION YOU HAVE OBTAINED
ABOUT THE SERVICE FROM LIC OF INDIA.
Ans :- a) 20%-50% - 10 , b) 51%- 75% - 32 , c) 76%-100% - 08

CHART-14

STATISFACTION LEVEL

76%-100%
20%-50%
16%
20%

51%-75%
64%

(Source survey data)

From the above presentation it is clear that 64% of the consumer’s satisfaction level
about service of LIC OF INDIA is 51-75%, 20% of the consumer’s satisfaction level
is 20-50%and 16 % of the consumer’s satisfaction level is 76-100%.

24
 Findings :
a) LIC OF INDIA has a major market share of 70%.
b) Majority of consumers (84%) are aware about life insurance companies apart from
LICI.
c) 100% Consumers are aware about effectiveness of Life Insurance.
d) All the people (100%) taken a Life insurance policy
e) Majority of consumers are satisfied with the service and quality of products of
their life insurance companies.
f) Huge numbers of people work as employee in LICI.
g) Majority of consumers (84%) prefer to LIC OF INDIA on the basis of security
purpose.
h) Majority of consumers (72%) know that Life Insurance Companies are protected
by IRDA.
i) The respondents are satisfied with the current agent services.
j) LIC OF INDIA plays a major role in Life Insurance Sector.

25
 CHAPTER-4

CONCLUSION & RECOMMENDATION & SUGGESTIONS:-

CONCLUSION :-

Insurance sector is one of the most booming sectors in India. The penetration level of
insurance in India is only 2.3% when compared to 9-15% in the developed nations. There is a
huge market for the Insurance products in the future in India. The project was very useful to
the researcher to understand the life insurance business. From this study it reveals that the
consumer’s attitude towards Life Insurance Policy and Insurance Company changed a lot. A
5 years before the consumers and the general public were not interested to take Insurance
Policy but now days there are many options and choices in front of the Consumers. They are
interested to take high return policies in order to secure their lives. People are aware of all the
benefits and returns of Insurance Policies.

As a result of this new international and domestic companies are coming to the Indian
Market. From this it is found that the LIC OF INDIA is the major market share holder in the
Insurance field. Even if there are many players in this fields still it is an untapped market.
Only a few portion of Indian population is insured.
Insurance is a large investment and you will most likely purchase multiple policies
throughout your lifetime. It is essential that you know what each type of insurance covers and
how it works so you can make the best decision about what to buy. Do not base your decision
on just what is cheapest, but look at what it provides.

26
 RECOMMENDATIONS AND SUGGESTIONS :-
With regard to insurance companies, consumers respond at different rates, depending
on the consumers characteristics. Hence Insurance companies should try to bring their
new product to the attention of potential early adopters.
a) Due to the intense competition in the life insurance market, the life insurance
companies have to adopt better strategies to attract more customers.
b) Private life insurance companies should adopt effective promotional strategies to
increase the awareness level among the consumers.

c) To retain old customers and to attract new customer's products with adds-on

features should be introduced besides attractive advertisements.

d) To reach out more customers, tie-ups with companies, in various sectors can be

arranged to cover the insurance needs of their employees.

e) To utilize one of the most important marketing channel (commercial banks) very
effectively for promoting the products, steps should be taken to make the banks
incorporate successful sales tactics used by them to sell other financial services.
f) Secured investments should be made continuously by LIC of India.
g) LIC should concentrate on agents‟ training to make them updated as per market
requirements & professionalism to tackle the queries of customers & doubts raised
in their mind by other Life Insurance competitors of the market.
h) As Private Insurance companies capture the market now-a-days, therefore, LIC
should launch different kinds of plans with more facilities, so that it can increase
its income amount, especially premium amount.
i) LIC should also open more number of offices & authorized collection centers to
make its objectives achieved in true way to spread the life insurance business in
every corner of the country & to reach among the customers.
j) To enhance the satisfaction level of policyholders and to avoid losing the existing
customers periodical market surveys should be conducted.

27
BIBLIOGRAPHY :-

a) www.lic.com
b) www.irda.com
c) www.wikipedia.com
d) www.sbilife.com
e) www.hdfclife.com
f) www.pbr.co.in

IRDA report.

28
 ANNEXURE-1
~GENERAL INFORMATION~
NAME: AGE: GENDER: M F O

OCCUPATION: INCOME LEVEL (P.A.):

ADDRESS: CONTACT NO.:

1. Do you think that insurance is necessary for any individual?

a) YES b) NO

2. Are you aware that many private life insurance companies are
providing life insurance coverage to the people apart from LIC of
India?

a) YES b) NO

3. Do you feel that the premiums paid in private life insurance companies are safe?

a) YES b) NO

4. Are you aware of IRDA investor protecton guidelines?

a) YES b) NO

5. Have you taken a life insurance policy?

a) YES b) NO

6. Do you feel that the services of the life insurance companies are
satisfactory [LIC of India, Bajaj Allianz Life, HDFC Life, Tata AIA Life
& other private life insurance companies]?

a) YES b) NO
29

7. Is there any insurance office near of your location?

 a) YES b) NO

8. How many policies have you taken?

a) 1 b) 2 c)3-4 d) ABOVE

9. Do you think life insurance scheme become more effective from last few years?

a) YES b) NO c) MAY BE d) DON’T KNOW

10. Which company you like most?

a) LICI b) TATA AIA LIFE c) HDFC LIFE d) OTHER

11. Why do you like the above selected company?

a) MORE SECURED b) MORE BENEFITED c) EASY SYSTEMS

d) OTHERS

12. The agent representing the company is knowledgeable & explained all features
of the policy.

a) AGREE b) DISAGREE c) STRONGLY AGREE

d) STRONGLY DISAGREE

13. Indicate the level of satisfaction you have obtained about the service
from LIC of India.

a) 20-50% b) 51-75% c) 76-100%

14. Why you take the Life Insurance Policy?

a) AGENT FORCE b) FOR EFFECTIVE SAVINGS c) TO MEET

FUTURE EXPENSES d) OTHERS

15. What do you think which company is better according to security purpose?

a) LICI b) PRIVATE LIFE INSURANCE COMPANIES

DATE-
-------------------------------------
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