CONTENTS

CHAPTER INDEX PAGE NO

1 Introduction

1.1 Introduction

1.2 Definitions of insurance

1.3 Definitions of Insurance

1.4 Basic concepts of Insurance

1.5 Principles of Insurance

1.6 Insurance in India

1.7 History of Insurance

1.8 Types of Insurance

1.9 Life insurance

2 2.Company profile

2.1 About SBI life insurance Co. Ltd.

2.2 Departmental hierarchy

2.3 Product overview

2.4 Interesting plans

2.5 Premium payment modes

2.6 Policy documents

3 Findings, Suggestions and conclusions

3.1 Operations of the company

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Introduction

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 CHAPTER-1
INTRODUCTION

1.1 Introduction:-

Insurance is a means of protection from financial loss. It is a form of a risk

management primarily used to hedge against the risk of contingent, material loss.

An entry which provides insurance is known as insurer, insurance company or

insurance carrier. A person or entity who buys insurance is known as insured or
policy holder. The insurance transaction involves the insured assuming a guaranteed
and known relatively small loss in the form of payment to the insurer in exchange for
the insurer’s promise to compensate the insured in the event of covered loss. The
loss may or may not be financial but it must be reducible to financial terms. And
must involve something in which the insured has an insurable interest established by
ownership, possession or pre-existing relationship.

The insured receives a contract called insurance policy which details the
conditions and circumstances under which the insured will be financially
compensated. The amount of money charged by the insurer to the insured for
coverage set forth in the insurance policy is called the premium. If the insured
experiences a loss which potentially covered by the insurance policy the insured
submits a claim to the insurer for processing by a claim adjuster.

1.2 Definition of insurance:-

Insurance is contract between two parties where by one party called insurer
undertakes in exchange for fixed sum called premium to pay the other party
happening of a certain event. Insurance is a contract whereby in return for the
payment of premium by the insured insurer pay financial losses suffered by the
insured as a result of the occurrence of unforeseen events. With the help of the
insurance large number of people exposed to a similar risk make contributions to a
common fund out of which the losses suffered by the unfortunate few, due to
accidental events are made good in this particular of insurance area.

In the words of John Magee, insurance is a plan by which the large numbers of
people associate themselves and transfers to the shoulders of all, risks that attach to
individuals.

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Insurance is

The process of transferring the risk from the owner ( Insured person) to
another party ( Insurer) who can bear the risk in return for consideration ( Premium)

Fundamental definition:-

In the word of D.S. Hoansel insurance may be defined as a social device

providing financial compensation for the effects of misfortune, the payment being
made from the accumulated contributions of all parties participating in this scheme.
Insurance companies may be classified into two groups.

1. Life insurance companies, which sell life insurance, annuities and pension products

2. Non-life or general or property by / causality insurance companies, hich sell other

type of insurance

General insurance companies can be further divided into these sub categories

1. standard life

2. Excess lines

3. Life insurance has no competition from any other business

4. it is the only and best possible way for family protection. There is no other way

5. The terms of life are hard and terms of insurance are easy

6. it enhances the exciting standards of living

7. Helps people live financially solvent life

8. It perpetuates liberty and pursuit of happiness.

9. It is not surpassed by any other savings or investment instrument.

How does insurance work:-

Life insurance can protect the family from financial hardship in the event that
the untimely death of an individual leads to a loss of income

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Basic concepts of insurance:-

Risk:-

A situation where the probability of variable ( Such as burning down of a

building ) is known but when a mode of occurrence or actual value of the occurrence.
( weather the fire will occur at a particular property ) is not.

Uncertainty:-

Situation where the current state of knowledge is such that the order or
nature of the things is unknown the consequences, extent, or magnitude of
circumstances conditions or events its unpredictable and credible probabilities to
possible outcomes can not be assigned. Although too much uncertaininty is
undesirable, manageable uncertainty to make creative decision

Loss:-

Reduction in the value of an insured property due to an insured peril amount

sought in an insurance claim or amount paid under an insurance contract.

Peril:-

Probable cause ( Such as an earth quake, fire, theft) that exposes a person or
property to the risk of damage injury or loss and against which an insurance cover (
policy ) is purchased

Hazard:-

Condition or situation that creates or increases chance of loss in an insured

risk, separated into two kinds, Physical hazard:- physical environment which could
increase or decrease the probability or severity of a loss. It can ba managed through
risk improvement, insurance policy terms and premium rates.

Principles of insurance:-

There are six basic principles of insurance:-

1. Utmost good faith

2. Insurable interest

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 3. Indemnity

4. Subrogation

5. Contribution

6. Proximate cause

1. Utmost good faith:-

A positive duty voluntarily to disclose, accurately, and fully all fact materials to
the risk being proposed weather request or not. Every relevant fact or information
which has bearing on the decision making of the contract binding on both parties .
duty of full discloseure rests on insurer and insured.

2. Insurable interest:-

The lega right to insure arising out of a financial relationship recognized by

law between the insured and the subject matter of insurance. A contract of
insurance affected without insurable interest is void

3. Indemnity:-

A contract of insurance contained is a contract of indemnity. This means that

the insured. In case of loss against which the policy has been insured shall be paid
the actual amount of loss not exceeding the amount of the policy.

4. Contribution:-

The right of an insurer to call up on other similarly, but not necessarily equally
liable to the same insured to share the cost of an indemnity payment.

5. Subrogation:-

The right of one person having indemnified another under a legal obligation to
do so, to stand in the place of that other and avail himself of all the rights and
remidies of that other weather already enforced or not.

6. Proximate cause:-

a. Doctrine based on cause and effect

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b. it is direct

c. It is most dominant

d. it is closely connected to loss in efficiency and effectiveness

Insurance in India:-

Insurance is a federal subject in India and has a history dating back to 1818.
Life and general insurance in India is still a nascent sector with huge potential for
various global players with the life insurance premium accounting to 2.5% of the
country’s GDP while general insurance premiums to 0.65 % of India’s GDP The
insurance sector in India has gone through a number of phases and changes
particularly in recent years when the Govt. of India in 1999 opened up the insurance
sector by allowing FDI up to 26%

Ever since Indian insurance sector is considered as a booming market with

every other global insurance company wanting to have a lion’s share. Currently the
largest life insurance company in India is still owned by the government.

Mile stones in the life insurance business in India

Year Mile stone in the life insurance business

in India
1912 The Indian life assurance companies Act
enacted as the first statue to regulate the
life insurance business
1928 The Indian insurance companies Act
enacted to enable the government to
collect statistical information about both
life and non-life insurance businesses
1938 Earlier regulations consolidated and
amended by the insurance act with the
objective of protecting the interests of
the insuring public
1956 245 Indian and foreign insurers and
provident societies taken over by the
central government and nationalized LIC
formed by an Act of parliament viz LIC
Act 1956, with a capital contribution of
Rs. 5 crore from the government of India

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​Mile stones in the general insurance business in India

Year Mile stones in the general insurance

business in India
1907 The Indian Mercantile Insurance Ltd. Set
up the first company to transact all
classes of general insurance business
1957 General Insurance Council, a wing of the
insurance association of india, frames a
code of conduct and sound business
practices
1968 The insurance act amended to regulate
investments and minimum solvency
margins and TAC was set up
1972 The General Insurance Business (
Nationalization) Act 1972 nationalized the
general insurance business in India with
effect from 1​st January 1973107 insurers
amalgamated and grouped into four
companies viz the national insurance
company Ltd. The New India assurance
company Ltd. The oriental insurance
company Ltd. And United india insurance
company ltd. GIC incorporated as a
company
1994 Liberalization of Indian insurance market
was recommended by Malhotra
committee including that this sector
should be opened up to private sector
participation and competition initially and
then to foreign players also.
1999 Government passed the Insurance
Regulatory and development Authority (
IRDA ) Act

History of Insurance In India:-

Insurance in India has its history dating back till 1818. When oriental life
insurance company was started up by Europeans in Kolkata to cater to the needs of
European community. Pre independent era in India seen discrimination among the
life on foreigners and Indians with higher premium being charged for the later. It was
only in the year 1870 Bombay Mutual Life assurance society. The first Indian

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insurance company covered Indian lives at normal rates. At the time of the twelfth
century insurance companies started mushrooming up. In the year 1912 made it
necessary that the premium rate tables and periodical valuations of companies
should be certified by an actuary. however the disparage still existed as
discrimination between Indian and foreign companies. The oldest existing insurance
company in India is National insurance company Ltd. Which as founded in 1906 and
is doing business even today. The insurance industry earlier consisted only two state
insurers: Life insurers i.e. Life insurance corporation of India ( LIC ) and general
insurance i.e. General insurance corporation of India ( GIC ) GIC had four subsidiary
companies.

With effect from December 2000 these subsidiaries have been de-linked from
parent company and made as independent insurance companies: Oriental insurance
company Ltd. New India Assurance company Ltd. National insurance company Ltd.
And United insurance company Ltd.

Types of Insurance:-

Insurance is broadly classified into two types namely Life insurance and general
insurance

Life insurance:-

Life insurance is a contract between an insurer and insured where the insurer
promises to pay designated beneficiary a sum of money in exchange for a premium
up on the death of an insured person or when the policy gets matured. Depending on
the contract other events such as terminal illness can also trigger payment

General insurance industry:-

Every assets has value and the business of general insurance is related to the
protection of economic value of assets. Assets would have been created through the
efforts of owner which can be in the form of building, vehicle, machinery and other
tangible properties since tangible property has a physical shape and consistency. It is
subject to many risks ranging from fire, allied perils to theft and robbery

Definition of Life Insurance

Life insurance has been defined by different authors differently as given below:

R.S. Sharma: Life insurance is a contract whereby the insurer, in consideration of a

premium paid either in lump sum or in periodical installments, undertakes to pay an

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annuity or a certain sum of money either on death of the insured or on the expiry of
a certain number of years.

D.S. Hansell: Life insurance is a contract in which a sum of money is paid by the
assured in consideration of insurer’s incurring the risk of paying a large sum upon a
given contingency.

J.H. Magee: The life insurance contract embodies an agreement in which broadly
stated, the insurer undertakes to pay a stipulated sum upon the death of insured or
at some designated time to a designated beneficiary.

Insurance Act 1938: Life Insurance Business means the business of effecting contracts
of insurance upon human life, including any contract whereby the payment of money
is assured on death (except death by accident only) or the happening of any
contingency dependent on human life, and any contract which is subject to payment
of premiums for a term dependent on human life and shall be deemed to include-

The granting of disability and double or triple indemnity accident benefits, if so

provided in the contract of insurance;

The granting of annuities upon human life; and

The granting of superannuation allowances and annuities payable out of any fund
applicable solely to the relief and maintenance of persons engaged or who have been
engaged in any particular profession, trade or employment or of the dependents of
such persons.

Objective of the study:-

Different operations are performing under life insurance industry by TATA AIA

Limitations of the study:-

Companies are not providing required information to know actuval

performance of their operation’s

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Company profile

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 COMPANY PROFILE:-
Tata AIA Life Insurance Company Limited (Tata AIA Life) is a joint venture
company, formed by Tata Sons Ltd. and AIA Group Ltd. (AIA). Tata AIA Life combines
Tata’s pre-eminent leadership position in India and AIA’s presence as the largest,
independent listed pan-Asian life insurance group in the world spanning 18 markets
in the Asia Pacific region. Tata AIA Life has written retail new business weighted
premium of INR 733 crores for the first half of financial year 2018-19. For the same
period, the 13th month persistency of the company was at 83.5% and, the retail
claims settlement ratio was 98%.One of the fastest growing companies in the Life
Insurance sector, Tata AIA Life is now ranked at no. 5, based on individual weighted
new business premium.
Branches
There are nearly 300+ branches currently operating in India
company Mission

To provide the best and simplest life and health insurance solutions.

company Vision

To be the pre-eminent protection provider - enabling dreams, inspiring healthier

and happier lives

consumer obsession

Consumer is paramount in everything we do

Innovate solutions and services to delight our customers
Transparently deliver on promise

company Values Passion for excellence

● Set and achieve the highest standards

● Do the Right things in the Right way
● Take accountability and drive results
● Pioneer Change
people – our core
● Inspire myself & my colleagues to be and deliver the very best

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● Create and take distinctive opportunities for development
● Demonstrate courageous leadership at all times
● Exceptionally reward outstanding performance and right behaviour

Key people:-

1. Mr. Rishi srivastava (CEO & M.D)

2. Mr. Prithesh chaubey (Vice President & Actuary)
3. Mr.H.Venkatachalam iyer (CDO)
4. Ms. Kristyl Pais Bhesania (HR Training & capability developmet)
5. Mr.S.Swaminathan (CS)
6. Mr.Subhash Pillai (CFO)

2.2PROFITS & PREFERENCES

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2.3 products

PRODUCTS
Savings Child’s future ● Guarenteed monthly income
● Smart incomeplus

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 ● Gold income plan
● Fortune guarentee

Golden retirement
● Guarenteed monthly income
● Smart incomeplus
● Gold income plan
● Fortune guarentee
Regular income

● Guarenteed monthly income

● Smart incomeplus
Savings ● Gold income plan

● Guarenteed monthly income

● Smart incomeplus
● Gold income plan
● Fortune guarentee

Protection Protection required ● Sampoorna raksha

● Sampoorna raksha plus

Human life value

● Sampoorna raksha
● Sampoorna raksha plus

Retirement Smart annuity plan

Health Vitall core pro
Combo Saatt saath
Others Saath saath

2.4Awards & recognitions

● Award testimony to the culture of ownership and performance orientation built
diligently over last two years
● Tata AIA becomes the only Life Insurance company to win this honor twice in a
row

2.5 New challenges

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Challenge​:​ Tata AIA operates in a sensitive and highly regulated environment where
any data loss or leakage results in financial penalties and harms reputation. However,
sending files via FTP/SFTP sites is cumbersome, time-consuming and lacks reporting
and tracking capabilities.

“Our IT department takes advantage of Vaultize’s end-to-end security, privacy and

compliance features that are critical for the insurance industry.”

Solution​:​ Vaultize provided Tata AIA with a secure file sharing alternative through
the use of secure links that let users send, receive and collaborate on files without
the need to manage the exchange through an FTP site. These links can be
password-protected and set to auto-expire based on user settings and IT policies,
enabling the secure enterprise file sharing and data loss prevention the company
requires.

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Findings,suggestions
& conclusion

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FINDINGS
1.Tata aia company logo has been changed recently

2. In internship period I met different type of customers.

On that time I can understand behaviour of different type of customers while selling
the product.

3. In company they r selling nearly 20-25 policies per month in that branch itself.

4. Company following secure life app to give details about there products

5. Amoung life insurance product purchases, most of the customers are getting
products through direct marketing

Suggestions

Tata AIA company limited should reach the less educated and rural mass. They
should get information regarding life insurance policies in order to get
benefits
They can bring awareness & influencing public to cover under life insurance
through appointment of celebrities as brand ambassadors
Services are the part of the promotion strategy, company can conduct
workshop and welfare event to reach the target customers
The companies should use proper distribution channel and tough efforts to
reach maximum number of population.

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 The benefits of the life insurance should be explained clearly to illiterate
peoples.
Policy terms and conditions should be in simple language, even a
layman should be able to understand.

Conclusion

Although family Life insurance is not a new concept and the people are
getting
aware about it, but this awareness has not yet reached the level of
subscription.
Agents play a vital role in Life insurance industry. Most of the customers are
influenced by Agents.
Premium affordability is mainly depends upon the Occupation and monthly
income
of the people.
Premium rate of the policy and reputation of the company is the most
affecting
factor in the purchasing decision towards family Life insurance policy.

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