A

Summer Training Report

On
Training Undertaken at

Titled
A STUDY ON COMPARATIVE ANALYSIS OF INSURANCE
COMPANY
Submitted in partial fulfillment for the Award of
Master of Business Administration

Submitted By

Submitted To

Geetanjali Sharma

Mr. Vikas Mahalawat

MBA 3rd Sem

HOD

15MMCXX620

Dept of Mgmt. Studies

Department of Management Studies

Modern Institute of Technology & Research Centre
6th Mile Stone, Vill: - Jharkhera, Sirmoli Road, Delhi-Tijara
Highway, Alwar (Raj.)
1

CERTIFICATE

PREFACE
The field of finance refers to the concepts of time, money and risk and how they are
interrelated. Finance is one of the most important aspects of business management.
Without proper financial planning a new enterprise is unlikely to be successful.
Managing money (a liquid asset) is essential to ensure a secure future, both for the
individual and an organization. It generally involves balancing risk and profitability,
while attempting to maximize an entity's wealth and the value of its stock.
The summer training report is basically dedicated to the practical knowledge of the
training. The main concern is to expose the industry, which I have chosen for the
purpose. Each and every angle is focused here. The details are being discussed in
this summer training report.
The main objective is to understand & focus on the functions, role and various
prospects of industry, look into its depth problems, problems in order to find out the
ideal solution and then finally make practical applications of those solutions in order
to judge the feasibility of the solution.
Since my topic of Summer Training report is A STUDY ON COMPARATIVE
ANALYSIS OF INSURANCE COMPANY therefore my major emphasis will be on
the financial aspects of the company. It includes sales, production, cost, profit,
liquidity and solvency analysis of this company. To study its Corporate Social
Responsibility and its concern towards environment and safety also formed a part of
my research area.

ACKNOWLEDGEMENT
I express my sincere thanks to my project guide, Mr. Vikas Mahalawat (HOD of
Management Deptt.) for guiding me right from the inception till the successful
completion of the project. I sincerely acknowledge him/her/them for extending their
valuable guidance, support for literature, critical reviews of project and the report and
above all the moral support he/she/they had provided to me with all stages of this
project.
I would also like to thank the supporting staff MITRC, Alwar (Raj.), for their help and
cooperation throughout our project.

(Signature of Student)
Geetanjali Sharma
MBA III sem

DECLARATION

I hereby declare that the summer training Report Titled A STUDY ON

COMPARATIVE ANALYSIS OF INSURANCE COMPANY submitted for the Degree
of Master of Business Administration is my original work and the report has not
formed the basis for the award of any degree, diploma, associate ship, fellowship or
similar other titles. It has not been submitted to any other university or Institution for
the award of any degree or diploma.

Place:

Date:

Signature of the Student

Geetanjali Sharma
MBA 3 Sem

SUMMER TRAINING EVALUATION FORM

Name of Student
Branch

College Roll No.

Class
5

Name of
Organization
Address
Place

Pin

Phone

Duration of Training Period from

Fax No.

to

No. of Working Days

1) How do you rate the overall training programme as an educational experience?

Experience (

) Very good (

) Good (

) Fair (

) Poor (

2) To what extent will it help you in future?

To large extent (

) To some extent (

) Negiligible extent (

3) Indicate subject/area ti which training was found relevant.

4) Indicate the level of interest taken by the training organization

High (

Moderate (

5) Any other comments / suggestions

Dated:

Signature of the Student

Low (

FEED BACK FORM

1. Name of the Industry
2. Concerned Group
3. Turn Over (In terms of Capital)
4. Work Force:

(in terms of Product)

Managerial & Management Staff :

Supervisory & Technical Staff

Labour

a. Skilled:

c. Un-skilled:

b. Semi skilled:

5. Description of Product Range:

6. Description of Process:

7. Area of Training:
8. Contact details of the person responsible for Summer Training Project:
a. Name of contact person :
b. Designation :
c. Communication address :
d. Phone No. with STD code :
e. Mobile No. :
f. Email Address :
Name of Student
Class

College Roll No.

B.E.

Phone No.

Branch
Mobile No.

Email

Dated:

Signature of the Student

TABLE OF CONTENT
PARTICULARS

PAGE No.

Cover Page

i
7

Certificate

ii

Preface

iii

Acknowledgement

iv

Declaration

Summer Training Evaluation Form

vi

Feedback Form

vii

Contents

viii-ix

List of Charts

x-xi

Executive Summery

xii

CONTENTS
CHAPTER NAME

PAGE No.

Chapter 1 INTRODUCTION TO THE INDUSTRY

-1-

1.1 Insurance Sector in India

-1-

1.2 Insurance Products

-4-

Chapter 2 INTRODUCTION TO THE TOPIC

-9-

2.1 Concept of Insurance

-9-

2.2 History of Insurance

- 11 -

2.3 Insurers Business Model

- 13 -

Chapter 3 INTRODUCTION TO THE COMPANY

- 15 -

3.1 Life Insurance Corporation Of India

- 15 -

3.2 Objectives of LIC

- 16 -

3.3 The Chart of Organization Structure

- 17 -

Chapter 4 RESEARCH METHODOLOGY

- 18 -

4.1 Objective

- 18 -

4.2 Types of Data

- 18 -

4.3 Data collection tools

- 18 -

4.4 Type of Study

- 18 -

Chapter 5 DATA ANALYSIS AND INTERPRETATION

- 27 -

5.1 Data Analysis regarding Policies

- 27 -

5.2 Commission Expenses

- 32 -

5.3 Comparison of ratios

- 39 -

5.4 Market share of Life Insurers

- 45 -

5.5 Claims Paid By Life Insurers

- 50 -

Chapter 6 FINDINGS AND CONCLUSION

- 54 -

BIBLIOGRAPHY

-56-

LIST OF CHARTS
Figure No.

Particulars

Page No.

Chart 5.1 Chart regarding new policies issued by insurance company

- 27 -

Chart 5.2 Chart Regarding First Year premium by insurance company

- 28 -

Chart 5.3 Chart Regarding single premium by insurance company

- 29 -

Chart 5.4 Chart Regarding Regular premium by insurance company

- 30 -

Chart 5.5 Chart Regarding Renewal premium by insurance company

- 31 -

Chart 5.6 Chart Regarding Total premium by insurance company

- 32 -

Chart 5.7 Chart Regarding First year premium commission by insurance company

- 33 -

Chart 5.8 Chart Regarding single premium commission by insurance company

- 34 -

Chart 5.9 Chart Regarding Regular premium Commission by insurance company

- 35 -

Chart 5.10 Chart Regarding Renewal premium Commission by insurance company

- 36 -

Chart 5.11 Chart Regarding Total premium Commission by insurance company

- 37 -

Chart 5.12 Chart Regarding Operating Expenses by insurance company

- 38 -

Chart 5.13 Chart Regarding Commission expense ratios of first year premium by insurance company
- 39 Chart 5.14 Chart Regarding Commission expense ratios of single premium by insurance company - 40 Chart 5.15 Chart Regarding Commission expense ratios of regular premium by insurance company - 41
Chart 5.16 Chart Regarding Commission expense ratios of renewal premium by insurance company
- 42 Chart 5.17 Chart Regarding Commission expense ratios of total premium by insurance company

- 43 -

Chart 5.18 Chart Regarding Operating expense ratios by insurance company

- 44 -

Chart 5.19 Chart Regarding Market share first year premium by insurance company

- 45

Chart 5.20 Chart Regarding Market share singlepremium by insurance company

- 46 -

Chart 5.21 Chart Regarding Market share Regular premium by insurance company

- 47 -

10

Chart 5.22 Chart Regarding Market share renewal premium by insurance company

- 48 -

Chart 5.23 Chart Regarding Market share total premium by insurance company

- 49 -

Chart 5.24 Market share in Terms of Total Premium From year 2007-08 to 2014-15

- 50 -

Chart 5.25 LIC Vs Private Insurance companies

- 51 -

Chart 5.26 Profit Comparison of LIC Vs Private Players

- 52 -

Chart 5.27 Life Fund of LIC

- 53 -

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EXECUTIVE SUMMARY
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 nonlife 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 branch offices were opened. As a result of reorganisation 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-organisation happening in the early eighties, by 1985-86
LIC had already crossed 7000.00 crore Sum Assured on new policies.

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