A SUMMER INTERNSHIP REPORT

On

Distribution Channel Management and Agency Network Development in Rural Areas: A study of SBI Life Insurance
SUBMITTED TO KURUKSHETRA UNIVERSITY, KURUKSHETRA
IN PARTIAL FULLFILMENT FOR THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

Session (2013-2014)
Submitted To: Kurukshetra University Kurukshetra Submitted By: Ravinder Narwal ROLL NO. BBA-4TH SEM

NARAINI GROUP OF INSTITUTION CHIRAO, KARNAL

(Affiliated to Kurukshetra University, Kurukshetra and approved by AICTE)

DECLARATION
I, hereby declare that the project titled Distribution Management and Developing Agency Channel in Rural Areas: A study of SBI Life Insurance is a record of critical and independent work carried out by me under the supervision and guidance of experts. This has not been previously submitted for the award of any other diploma, degree or other similar title.

(Ravinder Narwal)

ACKNOWLEDGEMENT
Theory is the first and important step which acts as a base, but practical knowledge is that aspect which bridges the gap between imaginations and realities. Research is the integral part of the work situations and is closely related to the career and promotion structures. So practical knowledge is very important for development of thoughts and giving shape to them. Thus practical training could be taken as a beginning of a process of indoctrination into the ways of a business organization and it is the first positive step which would be helpful in future prospect. No dissertation is complete without a mention of all those who contributed its very existence. However an expression of thanks, no matter how extensive it is, is never complete or adequate. This acknowledgement is no exception. I wish to express my appreciation to all those, with whom I have worked, interacted and whose thoughts and insights have helped me in furthering my knowledge and understanding of subject. I wish to express my gratitude and sincere thanks to my guide Mr. Davinder Kapoor for his keen interest and guidance offered in an amicable and pleasant manner through this project work. I express my utmost sense of gratitude to MR.PANKAJ SHARMA .Director, NECs Group of Institution and Dr. R.S. Kundu, (Principal) Mr. Gurmit (H.O.D), NECs College Of Management. who had been a pillar of support for me. I owe much to my family and friends for their blessings and encouragement.

Executive Summary
The project titled Distribution Management & Developing Agency Channel in Rural
Areas Undertaken in SBI life insurance, Karnal Branch.

The Project contains: Developing Agency Channel in Rural Areas. Training and Selection Process. Retaining and Rejoining Process. Developing Agency Channel in Rural Areas: This part of the project include the marketing survey in Rural Areas. This is the Personal form of survey done in the villages which are under Dt. Karnal. The Primary data collection is done through Questionnaire. Selection and Training Process: This part of the project includes the invitation to those sample population who were ready to work with SBI Life as a response of marketing survey under project 1. The Training includes the IC33 Exam and SBI LIFEs Product Training. Those who clear the IC33 exam are eligible for financial advisor post and would undergo product training. Retaining and Rejoining Process: This part of the project includes: To find out the reasons for Termination of the Advisors. To motive them to rejoin SBI Life. To remove any Grievances between UMs and their Advisors.

The project report is about Recruitment & Selection Process + Retaining Process which is an important part of any organization. In fact, recruitment and selection gives a home ground to the organization acumen that is needed for proper functioning of the organization. It gives a organizational structure of the company. It.s a methodology in which the particular organization works and how a new candidate could be recruited in such a way that he/she would be fitted for the right kind of career. There are two types of factors that affect the Recruitment of candidates for the company . Internal factors . External factors The objective of selection decision is to choose the individual who can most successfully perform the job from the pool of qualified candidates. Selection process or activities typically follow a standard patter, beginning with an initial screening interview and concluding with final employment decision.

CONTENT
Page No.
Acknowledgements Declaration Executive summary i ii iii

CHAPTER I Introduction to Life Insurance Company Profile CHAPTER II Research Methodology Chapter III Data Analysis and Interpretation Chapter IV Findings 38 29 23
1

Bibliography Annexure Questionnaire

40

1.1

Objectives of the Study

To create an awareness about insurance company and policies. To identify the potential policy holders among end users and to create a relationship between the companies and potential customers. To find out the customer satisfaction level among the go with their respecting insurance companies in which they hold the polices. To find out the awareness of people about insurance policies.

To offer suggestions based on findings

INTRODUCTION TO LIFE INSURANCE

LIFE INSURANCE
The business of insurance is related to the protection of the economic values of assets. Every asset is expected to last for a certain period of time during which it will perform. After that the benefit may not be available. There is a life time for a machine in a factory or a cow or a motor car. None of them will last for ever. The owner is aware of this and he can so manage his affairs that by the end of that period or lifetime, a

substitute is made available. Thus, he makes sure that the value or income is not lost. However, the asset may get lost earlier. An accident or some other unfortunate event may destroy it or make it non functional. In that case the owner and those depriving benefits there from would be deprived of the benefits and the planned substitute would not have been ready. There is an adverse or unpleasant situation. Insurance is a mechanism that helps to reduce the effect of such adverse situations.

Need for insurance: Modern life insurance caters to multiple needs for insurance, which can be broadly classified as under:
Cash and income needs on an immediately following death. Family income needs. Income needs of a widow on the death of her husband. Cash and income needs of a husband on the death of his wife. Retirement income needs. Education needs.

BRIEF HISTORY OF INSURANCE

The business of insurance started with marine business. Traders, who used to gather in the Lloyds coffee house in London, agreed to share the losses to their goods while being carried by ships. The losses used to occur because of pirates who robbed on the high seas or because of bad weather spoiling the goods or sinking the ship. The first

insurance policy was issued in 1583 in England. In India, insurance began in 1870 with life insurance being transacted by an English company, the European and the Albert. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. Today LIC functions with 2048 fully computerized branch offices 100, 21,449 Agents, 109 divisional offices, 8zonal offices, 992 satellite offices and the corporate office. LICs Wide Area Network covers109 divisional offices and connects all the branches through a Metro Area Network. Info Centers have been commissioned at Mumbai, Ahmadabad, 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

What is contract of insurance?

A contract of insurance is a contract of utmost good faith, technically known as uberimafides. The doctrine of disclosing all material facts is embodied in this important principal that applies to all forms of insurance. The purpose, who is one of the parties to the contract, is

presumed to have means of knowledge that are not accessible to the corporation who is the other party to the contract. Therefore, the purpose is bound to tell the insurer every thing affecting the judgment of the insurer. In all the contracts of insurance the proposes is bound to make full disclosure of all material facts and not merely, those which he thinks material Misrepresentation non-disclosure or fraud in any document leading to the acceptance of the risk automatically discharges the corporation from all liability under the contract. Although Section 45 of the Insurance Act, 1938 provides that no policy can be called in question after a period of two years from the date of its issue on the ground that any statement in proposal or a related document was false or inaccurate (making the policy indisputable), This provision is not applicable if the corporation can prove that misrepresentation or non-disclosure was on a material fact and was fraudulently made and that the policyholder knew at the time that statement he made was false. It is, therefore, in the interest of the policyholder to disclose all the material facts to the corporation to avoid any complication when the claim arises. It is equally obligatory on an agent to see that the assured doesnt obtain the contract by means of untrue representation or concealment in any respect. It is the duty that the agent owes both to his client and to the corporation

HOW LIFE INSURANCE WORKS

The mechanism of insurance is very simple. People who are exposed the same risks together and agree that, if any one of them suffers a loss, the others will share the

loss and make good to person who lost. All people who send goods by ships are exposed to the same risks, which are related to water damage, sinking of vessel, piracy, etc. In other words, the risk is spread among the community and the likely big impact on one is reduced to smaller manageable impacts on all. Insurance helps to spread the costs or risks.

The Human Asset

A human being is an income generating asset. Ones income generating ability depends on ones skills, (manual, professional, problem solving, entrepreneurial, etc).

These are assets. The value of the asset can be measured by considering the income hat is generated by the persons concerned. The concept of Human Life Values, provides scientific ways to determine the asset value of the human life and therefore, the amount of life insurance required. These techniques, kike other techniques related to selling, will have to be leant on the job. These assets also can be lost through unexpectedly early death or through sickness and disabilities caused by accidents. Accidents may or may no happen. Death will happen, but he timing is uncertain. If it happens around the time of ones retirement, when it could be expected the income will normally cease, the person concerned could have made some other arrangements to meet the continuing needs. But if it happens much earlier when the alternate arrangements are not in place, there can be losses to person and dependents. Those dependent on the income are helped to overcome their difficulties, by insurance.

Living too long can be as much a problem as dying too young

Thus, the risks in the case of a human being are related to

Early death Living too long Disabilities Sickness

COMPANY PROFILE

Company Profile:
SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Assurance. SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%. SBI Life Insurance has an authorized capital of Rs. 2,000 crores and a paid up capital of Rs 1,000 crores.

SBI Life Insurance has:

More than 40,000 insurance advisors work with SBI Life Insurance in India. SBI Life Insurance is known for qualities like trustworthiness, ambition, innovation, dynamism and excellence in its area of specialization.

The SBI Group owns more than 14,500 branches located across the country of India.

The corporate headquarters of SBI is located in Mumbai

ROLE OF LIFE INSURANCE: An act to provide for the establishment of an authority to protect the interests industry and for matters connected therewith for incidental thereto and further to amend, the Life Insurance Corporation Act, 1956 and the insurance Act, 1938 and General Insurance Business Act 1972. Spread Life Insurance much more widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in .the country and providing them adequate financial cover against death at a reasonable Cost. Maximize mobilization of people's savings by making insurance Linked savings adequately attractive. Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds in trust, without losing sight of the interest of the; community as a whole; the funds to be

deployed to the best advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return.

Act as trustees of the insured public in their individual and collective capacities. Meet the various life insurance needs of the community that would arise in the changing social and economic environment. Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy. Promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with ded1cat1on towards achievement of Corporate Objective

The Insurance Players

SBI Life Insurance Company Limited HDFC Standard Life Insurance Company Limited Birla Sun Life Insurance Company Limited TATA AIG Life Insurance Company Limited Max New York Life Insurance Company Limited Kodak Mahindra Old Mutual Life Insurance Limited ING Visy Life Insurance Company Limited Bajaj Allianz Life Insurance Company Limited ICICI Prudential Life Insurance Company Limited MetLife Life Insurance Company Limited Aviva Life Insurance Company Limited

Reliance Life Insurance Company Limited Sahara India Life Insurance Limited Shri ram Life Insurance Company Limited

SBI Life Guiding Principles

Recruit the best. Accept Personal Responsibility. Build an empowered Team. Build a shared vision and Purpose. Leadership Development. Reward and Recognition.

Introduction of State Bank of India

State Bank of India enjoys the largest banking franchise in India. Along with its 6 Associate Banks, State Bank Group has the unrivalled strength of over 16,000 branches across the country, arguably the largest in the world. BNP Paribas is the 1st largest French company and ranks 5th in the banking industry worldwide, 1st bank in Euro Zone as per Global 2000 Forbes' 2008. It is 6th most valuable international banking brand as per Brand Finance 2008.BNP Paribas Assurance is the insurance arm of BNP Paribas - Euro Zone's leading Bank. BNP Paribas, part of the world's top 10 group of banks by market value and part of Europe top 3 banking companies, is one of the oldest foreign banks with a presence in India dating back to 1860. BNP Paribas Assurance is the fourth largest life insurance company in France, and a worldwide leader in Creditor insurance products offering protection to over 50 million clients. BNP Paribas Assurance operates in 41 countries mainly through the banc assurance and partnership model. SBI Life Insurance is registered with an authorized capital of Rs 2000 crores and a Paidup capital of Rs 1000 Crores. SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%.State Bank of India enjoys the largest banking franchise in India. Along with its 7Associate Banks, SBI Group has the unrivalled strength of over 14,500 branches across the country, arguably the largest in the world.BNP Paribas Assurance is the life and property & casualty insurance unit of BNP Paribas- Euro Zones leading Bank. BNP Paribas, part of the worlds top 6 group of banks by market value and a European leader in global banking and financial services, is one of the oldest foreign banks with a presence in India dating back to 1860.

BNP Paribas Assurance is the fourth largest life insurance company in France, and a worldwide leader in Creditor insurance products offering protection to over 50 million clients. BNP Paribas Assurance operates in 41 countries mainly through the banc assurance and partnershipmodel.SBI Life has a unique multi-distribution model encompassing Banc assurance, Agency and Group Corporate.SBI Life extensively leverages the SBI Group as a platform for cross-selling insurance products along with its numerous banking product packages such as housing loans and personal loans. 9

Key Milestone
Financial Year 09-10: Reported a robust Net Profit of Rs.276 Crores. Crossed Rs.10,000 Crores in Gross Written Premium (GWP). Ranked No.1, in New Business Premium, amongst private life insurance companies. Assets Under Management (AUM) grew by 96% to Rs.28, 551 Crores. Globally topped the prestigious MDRT 2009 for having Maximum number of MDRT Members. ICRA reaffirmed iAAA rating to SBI Life indicating highest claims paying ability. Awarded ISO Certification (ISO/IEC 27001:2005) for Information Security Management System (ISMS). Retained ISO 9001:2000 certificate for superior claim settlement process.

Financial Year 08-09: Ranked among global top three in terms of number of Million Dollar Round Table (MDRT) members.

Bagged the coveted personal finance award-Outlook Money NDTV Profit "Best Life Insurer 2008".

CRISIL, country's leading rating agency, reaffirmed its highest financial rating AAA/Stable to SBI Life. In 2007, SBI Life became the first life insurer in India to receive this rating from CRISIL.

ICRA assigned iAAA rating indicating highest claims paying ability to SBI Life Insurance. 10

Retained ISO 9001:2000 certificate for superior claim settlement process.

Financial Year 07-08: Ranked amongst global top five life insurance companies in the number of MDRT members. Rated as the 'The Most Trusted Private Life Insurer' according to a survey conducted by Brand Equity in association with AC Nielsen ORG-MARG and the Economic Times Intelligence Bureau. Became first life insurer in India to receive the highest financial rating 'AAA' from CRISIL, the countries best known rating agency in 2007. Forayed into micro insurance with the launch of 'Grameen Shakti' in Bhubaneswar, Orissa for the economically underprivileged sections of society. Received ISO 9001: 2000 certification for superior claim settlement process. Became the only domestic life insurer to achieve CMMI Level 3 certification for IT processes and software development capabilities.

Financial Year 06-07: Second consecutive year of Profitability

Leads Private Life Insurance Companies in Lives covered: 6.49 Million lives covered

Financial Year 05-06: Became the first Life Insurer to make Profits 11

Multi-distribution Channel
SBI Life has a unique multi-distribution model encompassing vibrant Banc assurance, Retail Agency, Institutional Alliance and Corporate Solutions distribution channels. SBI Life extensively leverages the State Bank Group relationship as a platform for crossselling insurance products along with its numerous banking product packages such as housing loans and personal loans. SBIs access to over 100 million accounts across the country provides a vibrant base for insurance penetration across every region and economic strata in the country, thus ensuring true financial inclusion. Agency Channel, comprising of the most productive force of over 65,000 Insurance Advisors, offers door to door insurance solutions to customers.

Mission and Values

Mission: "To emerge as the leading company offering a comprehensive range of life insurance and pension products at competitive prices, ensuring high standards of customer satisfaction and world class operating efficiency, and become a model life insurance company in India in the post liberalization period". Values: Trustworthiness Ambition

Innovation Dynamism Excellence

12

17

INDUSTRY PROFILE

INDUSTRY PROFILE
Insurance sector in India is one of the booming sectors of the economy and is growing at the rate of 15-20 per cent annum. Together with banking services, it contributes to about 7 per cent to the country's GDP. Insurance is a federal subject in India and Insurance industry in India is governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business (Nationalization) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts. The origin of life insurance in India can be traced back to 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. It was conceived as a means to provide for English Widows. In those days a higher premium was charged for Indian lives than the non-Indian lives as Indian lives were considered riskier for coverage. The Bombay Mutual Life Insurance Society that started its business in 1870 was the first company to charge same premium for both Indian and non-Indian lives. In 1912, insurance

regulation formally began with the passing of Life Insurance Companies Act and the Provident Fund Act. By 1938, there were 176 insurance companies in India. But a number of frauds during 1920s and 1930s tainted the image of insurance industry in India. In 1938, the first comprehensive legislation regarding insurance was introduced with the passing of Insurance Act of 1938 that provided strict State Control over insurance business. Insurance sector in India grew at a faster pace after independence. In 1956, Government of India brought together 245 Indian and foreign insurers and provident societies under one nationalised monopoly corporation and formed Life Insurance Corporation (LIC) by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs.5 crore. The (non-life) insurance business/general insurance remained with the private sector till 1972. There were 107 private companies involved in the business of general operations and their operations were restricted to organised trade and industry in large cities. The General Insurance Business (Nationalisation) Act, 1972 nationalised the general insurance business in India with effect from January 1, 1973. The 107 private insurance companies were amalgamated and grouped into four companies: National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. These were subsidiaries of the General Insurance Company (GIC). In 1993, the first step towards insurance sector reforms was initiated with the formation of Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N. Malhotra. The committee was formed to evaluate the Indian insurance industry and recommend its future direction with the objective of complementing the reforms initiated in the financial sector.

Key Recommendations of Malhotra Committee

Structure

Government stake in the insurance Companies to be brought down to 50%.

Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations.

All the insurance companies should be given greater freedom to operate.

Competition

Private Companies with a minimum paid up capital of Rs.1billion should be allowed to enter the industry. No Company should deal in both Life and General Insurance through a single Entity.

Foreign companies may be allowed to enter the industry in collaboration with the domestic companies.

Postal Life Insurance should be allowed to operate in the rural market. Only one State Level Life Insurance Company should be allowed to operate in each state. 20

Regulatory Body

The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance should be made independent.

Investments

Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company.

Customer Service

LIC should pay interest on delays in payments beyond 30 days Insurance companies must be encouraged to set up unit linked pension plans.

Computerization of operations and updating of technology to be carried out in the insurance industry.

Malhotra Committee also proposed setting up an independent regulatory body - The Insurance Regulatory and Development Authority (IRDA) to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. Insurance sector in India was liberalized in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. There is a 26 percent equity cap for foreign partners in an insurance company. There is a proposal to increase this limit to 49 percent. The opening up of the insurance sector has led to rapid growth of the sector. Presently, there are 16 life insurance companies and 15 non-life insurance companies in the market. The potential for growth of insurance industry in India is immense as nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be well below international standards.

22

REASEARCH METHODOLOGY

REASERCH METHODOLOGY
In everyday life human being has to face many problems viz. social, economic, financial problems. These problems in life call for acceptable and effective solutions and for this purpose, research is required and a methodology applied for the solutions can be found out. Research was carried out In Rural Areas to find out the next best force of financial advisors. Basically the purpose to select rural areas is to target the whole range of NRIs living in the villages and to provide self employment to the villagers. DATA COLLECTION: Primary Data: Primary data was collected through survey method by distributing Questionnaires. The questionnaires were carefully designed by taking into account the parameters of study.

Secondary Data: Data was collected through the records of the organization. It is the data which has been collected by individual or someone else for the purpose of other than those of our particular research study. Or in other words we can say that secondary data is the data used previously for the analysis and the results are undertaken for the next process AIM: Developing Agency Channel in Rural Areas. Process: We start with the marketing survey in Rural area, for that we selected the population for survey then define the Research Design

Research Design o Descriptive Design 23

POPULATION S PACE o Jundla, Thari, Shekhpura o Ravar, Amritpur, Ganjugari o Pundri, Dabri, Sitamah

 Sample Design o Survey Design Sample Space o Sikh Community Biased Sampling Non Probability Sampling

At RAWAR Road
The journey started with the first part of the project i.e. Development of Agency Channel in Rural Areas. We have started our journey from Ranwar Road, and the villages are selected according to density of Sikh Community. We selected three villages: Ranwar Amritpura 24

Ganjugari

Some facts which were disclosed are: They are to work for SBI. They are to work within the premises of their respective villages. There is no need of special qualification. Though we managed to fill 32 Questionnaire but only 25 of them were ready to work with S.B.I Life Insurance. While filling Questionnaire we have not told them that they have to work as financial advisor. But still the response was poor.

Response Check
The quintessential reason for the poor response in these villages is: Most of them Landlord Interaction problem illiteracy

Bar Chart Showing Responses 25

The survey was conducted on ad hoc or practical approach and though the result are poor but the purpose of the survey was to reach to the illiterate people with so much opportunity in their hands even they himself dont know about them.

Flicert Scale:
(High Intd.) intd.) (less Intd.) NC (less non-intd.) (Non-

12

Index for villages situated at Rawer Road

At ASSAND Road
The next sample spaces were taken from as sand Road, and the villages taken are those which is dense in Sikh Community. We selected three villages. Those were: Jundla Thari Shekpura

Some facts which were disclosed are: They are to work for SBI. They are to work within the premises of their respective villages. There is no need of special qualification.

Though I managed to fill 30 Questionnaire but only 22 of them were ready to work with S.B.I Life Insurance. While filling Questionnaire I have not told them that they have to work as financial advisor. But still the response was good

Response Check
The quintessential reason for the poor response in these villages is: Most of them Landlord Interaction problem illiteracy

Bar Chart Showing Responses The survey was conducted on ad hoc or practical approach and though the result are poor but the purpose of the survey was to reach up to illiterate people with so much opportunity in their hands even they himself dont know about them.

Flicert Scale:
(High Intd.) intd.) (less Intd.) NC (less non-intd.) (Non-

14

Index for villages situated at Rawar Road

AT NISSING Road
The next sample space was taken from Nissing Road, and the villages taken are those which is dense in Sikh Community. Three villages selected were: Pundari Dabri Sitamahi

Note: The project was stopped because of the flood at that time but now
this project started again with the help of Unit mangers as said by Asst. Branch Manager. So we would analyze only the previous data taken from survey

28

Data Analysis & Interpretation

ANALYSIS AND INTERPRETATION

The primary data collected through the questionnaire from government officials were complied using spss package and the analysis are presented below.

TABLE 4.1 RESPONDENTS PROFILE OF AGE Frequency/ Percentage

4 25 66 5

Age(In Years)
25-35 35-45 45-55 >55

Total
(Source: Primary Data)

100

Table 4.1 shows, among the 100 sample respondents, the majority of 66% of the respondents fall in the age group of 45-55 years. Another 25% fall in the category of 3545 years. There are 5% of the respondents who fall in the age group of above 55 years, while the remaining 4% are in the age group of 25-35 years. Thus, from the analysis it can be concluded that the majority (66%) of respondents fall in the age group of 45-55.

TABLE 4.2 GENDER PROFILE OF RESPONDENT Gender

Male Female

Frequency/ Percentage
73 27

Total (Source: Primary Data)

100

Table 4.2 shows, the 100 sample respondents, the majority of 73% of the respondents are Male, while the remaining 27% are female. Thus, from the analysis it can be concluded that the male respondents constituted the major position (73%)

TABLE 4.3 MARITAL STATUS OF RESPONDENTS Marital Status

Married Unmarried

Frequency/ Percentage
99 1

Total (Source: Primary Data)

100

Table 4.5 shows, among the 100 sample respondents, the majority (99%) of the respondents are married while the remaining 1% is unmarried among the respondents. Thus, from the analysis it can be concluded that the majority (99%) of respondents who are married.

TABLE 4.4 EXPERIENCE PROFILE OF RESPONDENTS

Experience of respondent
Less Than 10 10-20

Frequency/ percentage
11 27

20-30 >30

57 5

Total (Source: Primary Data)

100

As it could be seen in Table 4.4, among the 100 sample respondents, the highest of 57% of the respondents fall in the experience group of 20-30 years. Another 27% fall in the category of 10-20 years. There are 11% of the respondents who fall in the experience group of less then 10 years, while the remaining 5% are in the experience group of above 30 years. Thus, majority (57%) of respondents are in the experience group of 20-30.

TABLE 4.5 ANNUAL INCOME LEVEL OF RESPONDENTS

Frequency/ Annual income percentage

Less Than 180000 180000-300000 300000-420000 >420000

27 50 14 9

Total (Source: Primary Data)

100

Table 4.5 shows, out of 100 sample respondents, the majority 50% of the respondents earn annual income between 180000-300000.Another 27% of respondents are less than 180000. There are 14% of the respondents who earn between 300000420000, the remaining 9% among the respondents earn above 420000. Thus, from the analysis it can be concluded that the respondents who earn between 180000-300000 constituted the major position (50%).

TABLE 4.5

HOLDING OF INSURANCE POLICY

Particulars
Yes No

Holding Policies
98 2

Total
(Source: Primary Data)

100

CURRENT POLICY YES NO

98

As it could be seen in Table 4.23 among the 100 sample respondent 98% of respondents are currently having policies and 2% of the respondents are not having policies. Thus from the analysis it can be concluded that 98% of respondents are currently having policies.

TABLE 4.6 AWARENESS ABOUT LIFE INSURANCE POLICIES

Awareness
Yes No

Frequency/ percentage
100 0

Total (Source: Primary Data)

100

As it could be seen in table 4.6 among the 100 sample respondent all of them were aware of the life insurance policies, (i.e.) 100%. Thus from the analysis it can be concluded that 100% of respondents are aware of the life insurance policies.

TABLE 4.7 SOURCE OF INFORMATION

SOURCE
Agent Employer Press Relatives T.V Internet Bankers Brokers Friends Mobile

YES
85 15 24 10 37 10 21 4 23 3

NO
15 85 76 90 63 90 79 96 77 97

(Source: Primary Data)

1 00

Rows
YES NO

75

respondent

50

25

0 A GE NT Cou n t REL A TIV ES Co u nt B ANKE RS Co un t M OB ILE Co u nt E MP LO Y ER Co u nt T V Cou n t B RO KE RS Cou nt P RE SS Cou n t INT E RNE T Cou n t FRIE NDS Co un t

source

As it could be seen in table 4.7, among the 100 sample respondent, it is clear that most of the respondents came to know about the insurance through agents (85%) and the second highest source are the T.V (37%). None of the respondents have come to know about the insurance through mobile. Thus, from the analysis it can be concluded that 85% of the respondents came to know about insurance polices through agents.

TABLE 4.8 AWARENESS ABOUT THE INSURANCE COMPANY Company name

LIC Birla SBI Bajaj ICICI HDFC Sriram Kotak Aviva Reliance Tata AIG Metlife Max Newyork Sahara Barathi ING Vysya (Source: Primary Data)

Yes
100 26 75 27 55 55 18 6 3 12 19 0 5 3 0 16

No
0 74 25 73 45 45 82 94 97 88 81 100 95 97 100 84

O THER

Rows
YES NO

S HRIRA M L IFE

SBI L IFE

compan ies

ICICI PRUDE NT IAL

B AJA J A LL IA NZ

HDFC S T ANDARD L IFE

B IRL A S UNL IFE

L IC 0 25 50 75 1 00

respondent

As it could be seen in table 4.8 among the 100 sample respondent, it is clear that 100% of the respondents are aware of LIC. And SBI has ranked first (75%) and followed by ICICI (55%), BAJAJ (27%), BIRLA (26%). None of the respondent has come to know about Metlife and Max Bharati AXA life insurance. Thus most of the respondents are aware of LIC and in the SBI Life insurance

TABLE 4.9 PURPOSE OF TAKING POLICIES

Purpose
tax saving investment life risk regular returns health maintenance retirement benefits Others (Source: Primary Data)

Yes
57 38 46 22 19 6 1

No
43 62 54 78 81 94 99

O THERS Co u nt

Rows
YES NO

RET IRE ME NT B ENE FIT S Co un t

PURPOSE

HEA L TH MA INT ANA NCE Co un t

REG UL A R RET URNS Co un t

L IFE RIS K COV E RA GE Cou n t

INV E ST ME NT Cou n t

T AX SA V ING Co un t

25

50

75

1 00

RESPONDENT

As it could be seen in table 4.9 among the 100 sample respondents, 57% have opted Tax saving as the major purpose of taking life insurance policies and Life risk coverage, Investment are also the purpose of taking life insurance policies. Thus from the analysis it can be concluded that most of the respondents are preferred to take policies for the purpose of Tax Savings.

TABLE 4.10 AWARENESS OF THE POLICIES

Policies Name
Endowment Whole life Money back With profit Joint life Children's Convertible Without profit Variable Insurance Annuity policy Retirement policy Salary saving scheme NON ULIP (Source: Primary Data)

Yes
83 41 84 24 30 41 2 2 0 7 24 36 18

No
17 59 16 76 70 59 98 98 100 93 76 66 82

OTHERS Coun t

Rows
YES NO

CHIL DRE N'S PO LICY Co unt

JOINT L IFE PO L ICY Co u nt

POLICIES

WIT H P ROFIT P OL ICY Cou n t

M ONEY BA CK P OL ICY Co u n t

WHO LE L IFE P OLICY Co unt

E NDOWME NT P OL ICY Cou nt

25

50

75

RESPONDENT

Table 4.10, shows among the 100 sample respondents, 84% of the respondent are preferred money back policy and 83% of respondent are preferred endowment policies. None of the respondents are preferred to Variable insurance, without profit policy and. Thus from the analysis it can be concluded that most of the respondents are preferred to take money back and endowment policies

TABLE 4.11 RANKING FOR POLICIES POLICIES

Endowment Whole life Money back With profit Joint life Children's RANK RANK RANK RANK RANK RANK RANK 1 21 8 46 5 4 5 2 27 15 15 8 9 13 13 3 20 8 10 1 12 27 21 4 11 8 12 16 18 17 21 5 15 34 7 13 21 7 3 6 3 22 9 36 17 11 1 7 3 5 1 21 19 20 29

Others 12 (Source: Primary Data)

O THERS Co un t

Rows
RANK1 RANK2 RANK3 RANK4 RANK5 RANK6 RANK7

CHIL DRE N'S PO LICY Co un t

JOINT L IFE POL ICY Co u nt

POLICIES

WIT H PROFIT POL ICY Cou n t

M ONEY BA CK POL ICY Co u n t

WHO LE L IFE PO LICY Co unt

E NDOWME NT POL ICY Cou n t

10

20

30

40

RESPONDENT

As it could be seen in table 4.11 among the 100 sample respondents, the respondents preferred Money Back policy as rank 1 (46%) and Endowment policy has been ranked as 2 (27%) and Children's policy has ranked as 3 (27%). Thus from the analysis it can be concluded that most of the respondents are ranked money back policy as first.

TABLE 4.12 PREFERRED PREMIUM PERIOD Period

Annual Half yearly Quarterly Monthly Total (Source: Primary Data)

Frequency/ Percentage
21 16 15 48 100

50

40

30

48

T A D N O P S E R

20

10

21 16 15

0 ANNUAL HALFYEARLY QUARTERLY MONTHLY

PREMIUM PAYMENT PERIOD

Table 4.12 shows, among the 100 sample respondents, 48% of the respondents preferred monthly premium payment period and 21% of the respondents preferred annual premium payment period. Thus from the analysis it can be concluded that 48% of the respondents preferred monthly premium payment period.

TABLE 4.13 PREFERRED PREMIUM PAYMENT Mode

Salary deduction Through agent By cash By cheque Online payment

Frequency/ Percentage
58 11 7 18 6

Total (Source: Primary Data)

100

60

50

40

30

58

T A D N O P S E R
20 10
11 7 6

18

0 SALARY DEDUCTION THROUGH AGENT BY CASH BY CHEQUE ONLINE PAYMENT

MODE OF PAYMENT

Table 4.13 shows, 4.7 among the 100 sample respondents, 58% of the respondents preferred Salary Deduction as mode of payment and 18% of the respondents preferred cheque as the mode payment. Thus from the analysis it can be concluded that 58% of the respondents preferred Salary Deduction as mode of payment.

TABLE 4.14
PREFERRED DELIVERY OF POLICY DOCUMENTS

Policy Documents Online By post Through agent Personally at insurance company's Total (Source: Primary Data)

Frequency/ Percentage 3 22 43 32 100

50

40

30

T A D N O P S E R

43

20
32

10

22

0 ONLINE BY POST THROUGH AGENT PERSONALLY AT INSURANCE COMAPNY'S OFFICE

MODE OF DELIVERY

Table 4.14 shows, among the 100 sample respondents, 43% of the respondents preferred to get the documents through agent and 32% of the respondents preferred to get the documents from the insurance office itself. Thus, from the analysis it can be concluded that 43% of the respondents preferred to get the documents through agent.

TABLE 4.15

PREFERRED MODE OF SETTELEMENT

Mode
By cash By cheque On account transfer

Frequency/ Percentage
19 75 6

Total

100

(Source: Primary Data)

80

60

40
75

T A D N O P S E R
20

19 6

0 BY CASH BY CHEQUE ON ACCOUNT TRANSFER

MODE OF SETTLEMENT

Table 4.15 shows, among the 100 sample respondents, 75% of the respondents preferred to get the claims settlement through by cheque and 19% of the respondents preferred to get the claims settlement through cash. Thus from the analysis it can be concluded that 75% of the respondents preferred to get the claim settlement through cheque.

TABLE 4.16

RANKING THE DETAILS EXPECTED FROM AGENT

DETAILS
Features of policy Premium amount Period of premium Mode of payment Terms & condition Other benefits Other services Settlements (Source: Primary Data)

R1
21 24 21 9 21 1 1 3

R2
13 30 27 7 20 0 0 4

R3
24 14 18 18 17 2 0 7

R4
17 16 12 17 13 11 0 15

R5
16 8 11 23 13 15 9 6

R6
5 2 3 17 9 28 23 12

R7
3 2 6 5 4 32 40 6

R8
1 4 2 4 3 11 27 47

SET TLEMENT OF CLAIMS AND IT S CONDITIONS Count

Rows
RANK1 RANK2 RANK3 RANK4 RANK5 RANK6 RANK7 RANK8

OTHER SERVICES Count

OTHER BENEFIT S Count

T ERMS AND CONDITIONS Count

DETAILS

M ODE OF PAYM ENT OF PREM IUM Count

PEROID OF PAYMENT Count

PREMIUM AMOUNT Count

FEAT URES OF T HE POLICY Count 10.00 20.00 30.00 40.00

RESPONDENT

Table 4.16 shows, among the 100 sample respondents, the respondents are expecting the details about premium amount because it has been ranked as 1 (24%) and period of premium has been ranked as 2 (27%) and features of policy has ranked as 3 (24%). Thus from the analysis it can be concluded that most of the respondents ranked premium amount as first detail followed by period of premium and feature of policy.

TABLE 4.17

PREFERRED INSURANCE COMPANY

Sector
Public sector Private sector

Frequency
75 25

Total (Source: Primary Data)

100

PREFERRED SECTOR IN INSURANCE COMPANY PUBLIC SECTOR PRIVATE SECTOR

25

75

Table 4.17 shows, among the 100 sample respondent 75% of respondents are preferred public sector and 25% of the respondents are preferred private sector. Thus from the analysis it can be concluded that 75% of respondents are preferred public sector.

TABLE 4.18
RANKING FOR SELECTING AN AGENT

Details
Knowledge of policy Investment advice Convincing approach Premium details Handling documents Nominee details Claim settlement (Source: Primary Data)

R1
41 21 13 21 0 2 1

R2
24 20 29 17 5 0 6

R3
9 33 19 16 6 5 12

R4
22 16 13 27 7 5 10

R5
2 3 12 11 41 19 12

R6
1 4 6 8 22 46 13

R7
1 2 8 0 19 23 46

CLAIM SET TLEMENT SERVICES Count

Rows
RANK1 RANK2 RANK3 RANK4 RANK5 RANK6 RANK7

CHANGE OF NOMINEE SERVICES Count

HANDLING OVER OF POLICY DOCUMENT Count

DETAILS

PAYMENT OF PREMIUM Count

CONVINCING APPROACH Count

INVESTMENT ADVICES FOR SELECT ING APPROPRIATE POLICIES Count

KNOWLEDGE ABOUT T HE POLICIES Count 10.00 20.00 30.00 40.00

RESPONDANT

As it could be seen in table 4.18 among the 100 sample respondents, the respondents are selecting the agent first to know about the knowledge of the policy because it has been ranked as 1 (41%) and convincing has been ranked as 2 (29%) and investment advice has ranked as 3 (33%). Thus from the analysis it can be concluded that

most of the respondents are selecting the agent's by knowledge of policy followed by convincing approach and investment advice

TABLE 4.19

PREFERENCE FOR FUTURE POLICY

Particulars

No. of Respondents

Yes No

34 66

Total (Source: Primary Data)

100

PREFERENCE FOR FUTURE POLICY YES NO

34

66

Table 4.20 shows, among the 100 sample respondent 66% of respondents are preferred to take policy in future and 34% of the respondents are not preferred to take policies in future. Thus from the analysis it can be concluded that 66% of respondents are preferred to take policy in future.

TABLE 4.20 PREFERRED INSURANCE COMPANY IN FUTURE

Company
LIC

Respondent
55 9 1 1

SBI
BAJAJ ICICI

Total
(Source: Primary Data)

66

Table 4.22 shows, among the 66 sample respondents, 55 respondents are preferred to take LIC as there company and 9 respondents are preferred to take HDFC as there company. Thus from the analysis it can be concluded that 55 of the respondents preferred to take LIC as there company and among the private company HDFC as their company.

TABLE 4.24

CURRENT INSURANCE COMPANY

Current company
LIC LIC AND HDFC LIC AND ICICI HDFC OTHERS

Respondent
64 27 4 1 2

Total
(Source: Primary Data)

98

Table 4.24 among the 98 sample respondents, 64 respondents is having policies in LIC and 27 of respondents are having policies in both LIC and HDFC and 4 respondents are having in HDFC. Thus from the analysis it can be concluded that 64 of the respondents are having policies in LIC and HDFC is in the second place when compared to others private players.

TABLE 4.25

NO. OF POLICIES

No. of Policies
1 2 3 4

Respondent
6 45 36 11

Total

98

(Source: Primary Data)

Table 4.25 shows, among the 98 sample respondents, 45 respondents are having two policies and 36 of respondents are having three policies. Thus from the analysis it can be concluded that 45 of the respondents having two policies.

TABLE 4.26

CURRENT TYPE OF POLICY

Policies
Endowment Joint Life Whole Life Children Money Back ULIP (Source: Primary Data)

Yes
57 28 14 50 54 24

No
41 70 84 48 44 74

Table 4.26 shows, among the 98 sample respondents, 57 respondents are having Endowment policies and 54 respondents are having Money Back policies and 50 respondents are having Children's policy. Thus from the analysis it can be concluded that 57 respondents having Endowment policy.

FIGURE 4.15 CURRENT TYPE OF POLICY

Rows
75

YES NO N IL

RESPONDANT

50

25

0 ENDOWMENT P OLICY Cou nt CHILDREN'S PO LICY Co un t JOINT L IFE PO L ICY Co u nt M ONEY BACK P OL ICY Cou n t WHO LE LIFE PO LICY Co unt UNIT LINKE D INSURANCE P OLICY Co unt

POLICIES

TABLE 4.28

CURRENT PREMIUM PAYMENT PERIOD

Period
Annual Half yearly Quarterly Monthly One time

Respondent
13 13 20 51 1

Total (Source: Primary Data)

98

Table 4.28 shows, among the 98 sample respondents, 51 respondents are paying monthly premium payment and 30 respondents are paying quarterly premium payment. Thus from the analysis it can be concluded that 51 respondents are paying monthly premium payment.

TABLE 4.29

CURRENT PREMIUM AMOUNT PAID ANNUALLY

Amount
< 3000 3000-5000 5000-7000 >9000

Respondent
23 34 22 19

Total
(Source: Primary Data)

98

Table 4.29 shows, among the 98 sample respondents, 34 respondent's annual premium payment is in between Rs 3000-5000 and 23 respondent's annual premium payment is below Rs 3000. Thus from the analysis it can be concluded that 34 respondent's annual premium payment is in between Rs 3000-5000.

TABLE 4.30

SATISFACTION LEVEL FOR PRESENT AGENT

Agent Service
Knowledge about policies Investment advices Convincing approach Payment of premium Claim settlement Change of nominee Handling over the documents (Source: Primary Data)

H. S
42 8 4 9 6 6 4

S
50 83 82 83 37 68 34

C. S
4 5 10 5 55 21 60

D
1 1 2 1 0 2 0

H. D
1 1 0 0 0 1 0

Tot al
98 98 98 98 98 98 98

Table 4.30 shows, among the 98 sample respondents, the respondents are satisfied with agent services like Knowledge about the policies, Investment Advices, Convincing Approach, Payment of Premium and Change of Nominee but the respondents are not aware of their own Claim settlement and Handling over the Documents, so its comes under can't say category. Thus from the analysis it can be concluded that the respondents are satisfied with the current agent services.

TABLE 4.31

SATISFACTION LEVEL SCORES FOR AGENT SERVICE

Satisfaction Level
Highly Dissatisfied Dissatisfied Can't Say Satisfied Highly Satisfied (Source: Primary Data)

Scores
Exactly 7 8 14 15 21 22 28 29 35

No. of Respondents
0 0 1 86 11

Table 4.31 clearly shows that 86 respondents are got scores in between 22 28, thus, the respondents are satisfied with the agent service.

TABLE 4.32

SATISFACTION LEVEL FOR INSURANCE COMPANY

Insurance company
Brand name Product & service Customer needs Attractive advertisement Terms & procedures Sales promotion Premium amount Period of premium payment Mode of payment of premium Availability of rider clause Online service Loans against policies Settlement of claims (Source: Primary Data)

H. S
34 17 9 6 9 1 17 15 18 4 2 3 3

S
56 80 81 81 80 67 74 79 70 42 31 27 26

C. S
6 1 5 8 8 30 6 4 10 50 65 67 69

D
1 0 2 3 1 0 1 0 0 2 0 1 0

H. D
1 0 1 0 0 0 0 0 0 0 0 0 0

Tot al
98 98 98 98 98 98 98 98 98 98 98 98 98

Table 4.32 shows, among the 98 sample respondents, the respondents are satisfied with the company services like Brand name, Availability of Product and Services, Fulfillment of Customer needs, Attractive advertisement, Terms and

Procedures, Sales Promotion measures, Premium amount, Period of premium payment, Mode of payment of premium but the respondents are not aware of Claim settlement, Loans against policies, Online services and Availability of rider clause, so its comes under can't say category. Thus from the analysis it can be concluded that the respondents are satisfied with the current company services.

TABLE 4.33

SATISFACTION LEVEL SCORES FOR INSURANCE COMPANY

Satisfaction Level
Highly Dissatisfied Dissatisfied Can't Say Satisfied

Scores
Exactly 13 14 26 27 39 40 52

No. of Respondents
0 0 0 87

Highly Satisfied (Source: Primary Data)

53 65

11

Table 4.33 clearly shows that 87 respondents are got scores in between 40 52, Thus, the respondents are satisfied with the insurance company.

CHAPTER V

SPECIFIC FINDINGS

Majority (66%) of respondents fall in the age group of 45-55. The male respondents constituted the major position (73%). Majority (99%) of respondents who are married. Majority (57%) of respondents are in the experience group of 20-30. The respondents who earn between 180000- 300000 constituted the major position (50%). 100% of respondents are aware of the life insurance policies. 85% of the respondents came to know about insurance polices through agents. Most of the respondents are aware of LIC and in SBI Life insurance. Most of the respondents are preferred to take policies for the purpose of Tax Savings.

 Most of the respondents are preferred to take money back and endowment policies. Most of the respondents are ranked money back policy as first. 48% of the respondents preferred monthly premium payment period. 58% of the respondents preferred Salary Deduction as mode of payment. 43% of the respondents preferred to get the documents through agent.
75% of the respondents preferred to get the claim settlement through cheque.

Most of the respondents ranked premium amount as first detail followed by period of premium and feature of policy. 75% of respondents are preferred public sector.
Most of the respondents are selecting the agent's by knowledge of policy followed by convincing approach and investment advice. Most of the respondents are selecting the insurance company first to fulfillment of customer needs followed by availability of product and services and brand name.

66% of respondents are preferred to take policy in future. 28 respondents preferred to take Children's policy.
55 of the respondents preferred to take LIC as there company and among the SBI. 98% of respondents are currently having policies. 64 of the respondents are having policies in LIC and SBI is in the second place when compared to others insurance players. 45 of the respondents having two policies. 57 respondents having Endowment policy. 59 respondents are having policies for the purpose of tax savings.

51 respondents are paying monthly premium payment. 34 respondent's annual premium payment is in between Rs 3000-5000. The respondents are satisfied with the current agent services.
86 respondents are got scores in between 22 28, so the respondents are satisfied with the agent service.

 The respondents are satisfied with the current company services.

87 respondents are got scores in between 40 52, so the respondents are satisfied with the insurance company.

SUGGESTIONS

 In view of the competition from LIC and other insurance players in the market, SBI Life should organize more awareness campaigns to create awareness and to promote their existing products. More new products and services should be innovated through financial engineering process to tap rural and social sectors. To retain old customers and to attract new customer's products with adds-on features should be introduced besides attractive

advertisements. To reach out more customers, tie-ups with companies, in various sectors can be arranged to cover the insurance needs of their employees. As the awareness level among the government officials for some insurance policies like ULIP, Money back plan, Endowment plan, Children's plan, Protection plan, etc. are very low, periodical

awareness programs in the respective government officials with concurrence of higher officials should be conducted.

Limitation

Limitations: 1. The scope of the project is limited to conceptual and marketing aspects of Life Insurance Companies and doesnt include Claim Settlement and the underwriting part of the operations which are equally important aspect of learning. 2. Project is limited to sadder branch of SBI Life Insurance Company Ltd at, Nagpur. 3. The major limitation was in terms of collecting the right information as the insurance players resist in revealing their marketing strategies, etc.

38

Bibliography

Books

Khan. M. Y, FINANCIAL SERVICES, Tata Mcgraw Hill, New Delhi Gordon and Natarajan, Financial Markets and Services, Himalaya Publishing House, Mumbai V.A Avadhani, Marketing of Financial Services, Himalaya Publishing House, Mumbai

WEBSITES

 www.sbilifeinsurance.com www.irda.com

REPORTS IRDA Reports