A SUMMER INTERNSHIP REPORT

ON
DYNAMIC STUDY OF INSURANCE
CONDUCTED AT
KOTAK OLD MUTUAL LIFE
INSURANCE
SURAT.
SUBMITTED BY
KHUSHBOO BHATT
MBA 2009-11 BATCH
ROLL NO: - MFO9004

INDIAN INSTITUTE OF
MANAGEMENT TRAINING

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 EL-34/5, MIDC, BHOSARI, PUNE-
400026.

ACKNOWLEDGEMENT

First of all I am profoundly grateful to INDIAN INSTITUTE OF

MANAGEMENT TRAINING for giving me such an opportunity to
make a report that has helped me understand the applications of what
I have learnt, in professional life.

I would especially like to thank and express my cordial gratitude to

Mr. KRUNAL CHAUDHARI and Mr. SATYEN NAIK who
provided me this opportunity to work in such a prestigious
organization, which enhanced my knowledge base and allowed me to
understand the practical application of the various aspect of insurance
Sector

I am thankful to SATYEN NAIK and KRUNAL CHAUDHARI who

guided me at every step and solved my difficulties at the KOTAK
OLD LIFE INSURANCE, during my internship time.

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Moreover, I am deeply thankful to my faculty Mr. R.K.RAY. for all
his help and support in form of resources sharing, guiding, motivating
and helping me to complete and compile my project report.

Last but not least I am extremely thankful to my parents, family

members and friends for their help and cooperation to overcome my
difficulties during my report preparation.

PREFACE:

To be an MBA student is a matter of pride because you are in a field

which helps you to develop from a normal human being into a
disciplined and dedicated professional. In the management field you
cannot create success stories if you are not a good learner. You need
to be a good learner to sharpen your knowledge in the particular field
to achieve and attain the desired goals and heights.

Mere bookish or theoretical knowledge cannot help you in any field

whether it is management, technology, research, or any other field.
The only thing that can help you is having a sound practical
knowledge of the concerned field. As part of my learning in
management field and also a requirement of the MBA programme, I
have been very fortunate to receive practical knowledge in KOTAK
OLD MUTUAL LIFE INSURANCE COMPANY

I received my training at Kotak as a requirement of the MBA

curriculum. This training has made me clear the difference between
the theoretical knowledge and the practical scenario, making me
aware of the importance of practical working conditions/situations.
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 The objective of my training was to study the insurance company
dealing in general insurance and life insurance. To know the role of
IRDA in insurance sector. Formalities and procedures needed in
settling claims. To give comparative analysis of claim settlement
procedure followed by premium insurance company in India.

DECLARATION

I, MS BHATT KHUSHBOO hereby declare that this

project report is the record of authentic work carried

out by me during the period from 25th MAY 2010 TO

25TH JULY 2010 and has not been submitted to any

other University or Institute for the award of any degree

/ diploma etc.

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BHATT KHUSHBOO

TABLE OF CONTENTS:

SR NO. TOPIC PAGE NO.

1. INSURANCE 6
HISTORY OF INSURANCE 7
INSURANCE IN INDIA 8
2. REGULATORY BODY OF INSURANCE IN 12
INDIA
MISSION OF IRDA 12
EXCEPTION FROM IRDA 13
3. TYPES OF INSURANCE 14
4. HISTORY OF LIFE INSURANCE 15
LIFE INSURANCE IN INDIA 17
5. BASIC TERMS USED IN INSURANCE 19

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6. INSURANCE SECTOR REFORMS 29
7. LIST OF COMPANIES REGISTERED WITH 30
IRDA
8. TYPES OF LIFE INSURANCE POLICY 31
9. KOTAK MAHINDRA 34
10. OLD MUTUAL 36
11. KOTAK OLD MUTUAL LIFE INSURANCE 38
12. TYPES OF PRODUCT 41
13. DIFFERENCE BETWEEN TRADITIONAL 43
AND ULIP
14. ORGANISATIONAL STRUCTURE AND 44
FLOW
15. OPERATIONS AT KOTAK 46
16. POLICY MAKING AND RECEIVING 47
PROCEDURE
17. LAPSATION AND REVIVAL PROCEDURE 50
18. CLAIM SETTLEMENT 55
19. ISSUES IN CLAIM SETTLEMENT 56
20. PROCEDURE OF CLAIM SETTLEMENT 57
21. COMPARATIVE ANALYSIS OF PREMIUM 61
INSURANCE COMPANY IN INDIA
22. RESEARCH METHODOLOGY 67
23. ANALYSIS 71
24. FINDINGS 92
25. RECOMMENDATIONS 93
26. CONCLUSIONS 94
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27. LIMITATIONS 95
28 BIBLIOGRAPHY 96
29 ANNEXURE 97

CHAPTER 1. INSURANCE
Insurance Business is related with securities of monetary value of
assets. Every asset has a value for its owner because its owner earns
something by using it. This earning may be in monetary terms or may
not be. For example a factory owner or a cow owner can earn money
by selling their respective production. And a car owner gets facility of
easy travelling, the car using cannot return into monetary term. But if
a car owner using his car as a taxi then he can earn in monetary term.

Every asset has a fix time period in which only they can be
productive. After end of their fixed age they will get expire and they
will not be productive. The owners of assets know about that thing
and therefore he arranges things by which he can earn after expiry of
his current assets. But there are chances that the assets can expire
before their respective age. This can be happen by accidents or any
natural calamities. If assets expire before their life end time than it can
be inversely affect their owner and other persons also who are the
beneficial of these assets.
Insurance is such a system by which the bad results of such type of
accidents and natural calamities can be reduced. Insurance is not
securing the assets and also it cannot stop any kind of natural
calamities or accidents. It only can reduce the burden of loss on their
owners and other beneficially.
Logically the Insurance procedure is easy. The people who have the
same type of risk are get together and decide among themselves that if
any one member get loss than all the other member will divide it
equally. For example the all persons who transport goods by ship has
the risk related to marine like pirates and bad weather etc. But the
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persons who are the owner of factories they are not having any risk
from the marine but they are having different risk like fire earthquake
theft etc…

HISTORY OF INSURANCE
In some sense we can say that insurance appears simultaneously with the
appearance of human society. We know of two types of economies in human
societies: money economies (with markets, money, financial instruments and
so on) and non-money or natural economies (without money, markets,
financial instruments and so on). The second type is a more ancient form than
the first. In such an economy and community, we can see insurance in the
form of people helping each other. For example, if a house burns down, the
members of the community help build a new one. Should the same thing
happen to one's neighbour, the other neighbours must help. Otherwise,
neighbours will not receive help in the future. This type of insurance has
survived to the present day in some countries where modern money economy
with its financial instruments is not widespread.
Turning to insurance in the modern sense (i.e., insurance in a modern money
economy, in which insurance is part of the financial sphere), early methods
of transferring or distributing risk were practised by Chinese and Babylonian
traders as long ago as the 3rd and 2nd millennia BC, respectively. Chinese
merchants travelling treacherous river rapids would redistribute their wares
across many vessels to limit the loss due to any single vessel's capsizing. The
Babylonians developed a system which was recorded in the famous Code of
Hammurabi, c. 1750 BC, and practised by early Mediterranean sailing
merchants. If a merchant received a loan to fund his shipment, he would pay
the lender an additional sum in exchange for the lender's guarantee to cancel
the loan should the shipment be stolen or lost at sea.
Insurance business is started by marine business. All businessmen were
gathered at Lloyd’s House of London and decided that if their goods, which
were transported by ship, will damage, than all member will equally divide
this loss. This loss can be happen by many reasons like by pirates, bad
weather etc…

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The first insurance policy was issued in the year 1583 in England. In India an
English European Company and Albert Company started the insurance
business. These companies were doing Life Insurance.

INSURANCE IN INDIA
The business of life insurance in India in its existing form started in
India in the year 1818 with the establishment of the Oriental Life
Insurance Company in Calcutta.

The story of insurance is probably as old as the story of mankind. The

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

Life Insurance in its modern form came to India from England in the
year 1818. Oriental Life Insurance Company started by Europeans in
Calcutta was the first life insurance company on Indian Soil. All the
insurance companies established during that period were brought up
with the purpose of looking after the needs of European community
and these companies were not insuring Indian natives. However, later
with the efforts of eminent people like Babu Muttylal Seal, the
foreign life insurance companies started insuring Indian lives. But
Indian lives were being treated as sub-standard lives and heavy extra
premiums were being charged on them. Bombay Mutual Life
Assurance Society heralded the birth of first Indian life insurance
company in the year 1870, and covered Indian lives at normal rates.
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Starting as Indian enterprise with highly patriotic motives, insurance
companies came into existence to carry the message of insurance and
social security through insurance to various sectors of society. Bharat
Insurance Company (1896) was also one of such companies inspired
by nationalism. The Swadeshi movement of 1905-1907 gave rise to
more insurance companies. The United India in Madras, National
Indian and National Insurance in Calcutta and the Co-operative
Assurance at Lahore were established in 1906. In 1907, Hindustan
Co-operative Insurance Company took its birth in one of the rooms of
the Jorasanko, house of the great poet Rabindranath Tagore, in
Calcutta. The Indian Mercantile, General Assurance and Swadeshi
Life (later Bombay Life) were some of the companies established
during the same period. Prior to 1912 India had no legislation to
regulate insurance business. In the year 1912, the Life Insurance
Companies Act, and the Provident Fund Act were passed. The Life
Insurance Companies Act 1912 made it necessary that the premium
rate tables and periodical valuations of companies should be certified
by an actuary. But the Act discriminated between foreign and Indian
companies on many accounts, putting the Indian companies at a
disadvantage.
The first two decades of the twentieth century saw lot of growth in
insurance business. From 44 companies with total business-in-force
as Rs.22.44 crore, it rose to 176 companies with total business-in-
force as Rs.298 crore in 1938. During the mushrooming of insurance
companies many financially unsound concerns were also floated
which failed miserably. The Insurance Act 1938 was the first
legislation governing not only life insurance but also non-life
insurance to provide strict state control over insurance business. The
demand for nationalization of life insurance industry was made
repeatedly in the past but it gathered momentum in 1944 when a bill
to amend the Life Insurance Act 1938 was introduced in the
Legislative Assembly. However, it was much later on the 19th of
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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 re-
organization servicing functions were transferred to the branches, and
branches were made accounting units. It worked wonders with the
performance of the corporation. It may be seen that from about 200.00
Crores of New Business in 1957 the corporation crossed 1000.00
Crores only in the year 1969-70, and it took another 10 years for LIC
to cross 2000.00 crore mark of new business. But with re-organization
happening in the early eighties, by 1985-86 LIC had already crossed
7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices,
100 divisional offices, 7 zonal offices and the corporate office. LIC’s
Wide Area Network covers 100 divisional offices and connects all the
branches through a Metro Area Network. LIC has tied up with some
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Banks and Service providers to offer on-line premium collection
facility in selected cities. LIC’s ECS and ATM premium payment
facility is an addition to customer convenience. Apart from on-line
Kiosks and IVRS, Info Centers have been commissioned at Mumbai,
Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi,
Pune and many other cities. With a vision of providing easy access to
its policyholders, LIC has launched its SATELLITE SAMPARK
offices. The satellite offices are smaller, leaner and closer to the
customer. The digitalized records of the satellite offices will facilitate
anywhere servicing and many other conveniences in the future.
From then to now, LIC has crossed many milestones and has set
unprecedented performance records in various aspects of life
insurance business. The same motives which inspired our forefathers
to bring insurance into existence in this country inspire us at LIC to
take this message in providing security to their families.

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REGULATORY BODY OF
INSURANCE IN INDIA
The Insurance Regulatory and Development Authority (IRDA) is
a national agency of the Government of India, based in Hyderabad. It
was formed by an act of Indian Parliament known as IRDA Act 1999,
which was amended in 2002 to incorporate some emerging
requirements.
In 2010, the Government of India ruled that the Unit Linked
Insurance Plans (ULIPs) will be governed by IRDA, and not the
market regulator Securities and Exchange Board of India.

MISSION OF IRDA
“To protect the interests of the policyholders, to
regulate, promote and ensure orderly growth of the
insurance industry and for matters connected therewith
or incidental thereto.”

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EXCEPTION FROM IRDA
The law of India has following expectations from IRDA
1. To protect the interest of and secure fair treatment to
policyholders.
2. To bring about speedy and orderly growth of the insurance
industry (including annuity and superannuation payments), for
the benefit of the common man, and to provide long term funds
for accelerating growth of the economy.
3. To set, promote, monitor and enforce high standards of
integrity, financial soundness, fair dealing and competence of
those it regulates.
4. To ensure that insurance customers receive precise, clear and
correct information about products and services and make them
aware of their responsibilities and duties in this regard.
5. To ensure speedy settlement of genuine claims, to prevent
insurance frauds and other malpractices and put in place
effective grievance redressal machinery.
6. To promote fairness, transparency and orderly conduct in
financial markets dealing with insurance and build a reliable
management information system to enforce high standards of
financial soundness amongst market players.
7. To take action where such standards are inadequate or
ineffectively enforced.

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 8. To bring about optimum amount of self-regulation in day to day
working of the industry consistent with the requirements of
prudential regulation.

TYPES OF INSURANCE

TYPE OF INSURANCE

LIFE INSURANCE GENERAL INSURANCE

TRADITIONAL ULIPs FIRE MARINE CASULATY

TYPES OF INSURANCE:
Life Insurance
Insurance against risk of loss to one's life is covered under Life
Insurance. Life insurance is also known as long term insurance or life
assurance. It includes Whole Life Assurance, Endowment Assurance,
Assurances for Children, Term Assurance, Money Back Policy etc.

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General Insurance
Insurance against risk of loss to assets like car, house, accident etc. is
covered under General or Non-life Insurance. General insurance
includes fire insurance, marine insurance, motor insurance, theft
insurance, health insurance, personal accident insurance etc.

HISTORY OF LIFE INSURANCE

➢ Life insurance reflects one of the best parts of human beings;
caring for others. One buys life insurance because he or she
loves their spouse and children. There are benefits while living
but the real reason is to make sure others are financially taken
care of.
➢ One of the first records of life insurance was in Rome. There,
groups came together called Fraters (burial clubs). These were
set up by the poor to pay for the funerals of the members and to
help the surviving family members financially.
➢ The middle ages had guilds for the various types of highly
skilled labor. There are accounts that show that these guilds
helped their members with various types of insurance including
life insurance and disability insurance.
➢ Life insurance came into its own in England in the late1600's
and became popular from that time on. During this time period
Lloyd's of London was growing. Lloyd's whose name came
from Lloyd's Coffee House where insurance was transacted by
ship owners with the underwriters (backers) who met to put
together insurance contracts and other shipping and merchant
related business.
➢ Almost 4,500 years ago, in the ancient land of Babylonia,
traders used to bear risk of the caravan trade by giving loans that
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 had to be later repaid with interest when the goods arrived
safely. In 2100 BC, the Code of Hammurabi granted legal status
to the practice, perhaps, was how insurance made its beginning.
➢ As European civilization progressed, its social institutions and
welfare practices also got more and more refined. With the
discovery of new lands, sea routes and the consequent growth in
trade, Medieval guilds took it upon themselves to protect their
member traders from loss on account of fire, shipwrecks and the
like.
➢ Since most of the trade took place by sea, there was also the fear
of pirates. So these guilds even offered ransom for members
held captive by pirates. Burial expenses and support in times of
sickness and poverty were other services offered. Essentially, all
these revolved around the concept of insurance or risk coverage.
That's how old these concepts are, really.
➢ In 1347, in Genoa, European maritime nations entered into the
earliest known insurance contract and decided to accept marine
insurance as a practice.
The first step…
➢ Insurance as we know it today owes its existence to 17th century
England. In fact, it began taking shape in 1688 at a rather
interesting place called Lloyd's Coffee House in London, where
merchants, ship-owners and underwriters met to discuss and
transact business. By the end of the 18th century, Lloyd's had
brewed enough business to become one of the first modern
insurance companies.
Insurance & myth…
➢ Back in the 17th century. In 1693, astronomer Edmond Halley
constructed the first mortality table to provide a link between the
life insurance premium and the average life spans based on
statistical laws of mortality and compound interest. In 1756,
Joseph Dodson reworked the table, linking premium rate to age.

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MILESTONES IN THE LIFE
INSURANCE BUSINESS IN
INDIA ARE:
➢ 1850 Non life insurance debuts with triton insurance company.
➢ 1870 Bombay Mutual Life Assurance society is the first Indian
owned life insurer
➢ 1912 The Indian Life Assurance Companies Act enacted as the
first statute 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 legislation consolidated and amended to 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,
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➢ With a capital contribution of Rs. 5 Crore from the Government
of India.
➢ The General insurance business in India, on the other hand, can
trace its roots to the Triton Insurance Company Ltd., the first
general insurance company established in the year 1850 in
Calcutta by the British. Some of the important milestones in the
general insurance business in India are:
➢ 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 for ensuring fair
conduct and sound business practices.
➢ 1968 The Insurance Act amended to regulate investments and
set minimum solvency margins and the Tariff Advisory
Committee set up.
➢ 1972 The General Insurance Business (Nationalization) Act,
1972 nationalized the general insurance business in India with
effect from 1st January 1973. 107 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 the United India
Insurance Company Ltd. GIC incorporated as a company.

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BASIC TERMS USED IN INSURANCE
Accident

A sudden and unintentional happening leading to a loss. In the context

of life insurance, it is a sudden and unforeseen happening that causes
disability or death of the policyholder.

Simple meaning:- “when sudden & unpredictable happen to policy

holder, die or causes disability is called as accident”

Accidental Death Benefit

An add-on benefit in which the benefit is payable in the event of death

of the life insured as a result of an accident provided he has opted for
this benefit.

Simple meaning:- Additional benefit given on accident that called as

Accident Death Benefit.

Accumulation Period

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The time interval between the commencement of the policy and the
time when benefits are paid out. It is established by the insured.
Simple meaning: - Time duration between starting of policy &
benefits are paid out is called as Accumulation period.

Actuary

A professional with expertise in technical aspects of insurance. An

actuary is a statistician and mathematician by training.
Simple meaning:- A person expert in technical knowledge of
insurance.

Actuarial Cost Method

A method that determines contributions that would be made under an

insurance plan.
Simple meaning:- contribution determination of insurance plan is
done by actuarial cost method.

Agent (Life Advisor)

A representative of an insurance company authorized to sell insurance

policies.

Age limits

The maximum and minimum ages above or below which an insurance

company will not accept applications for insurance from or will not
renew a policy with a person.

Annuitant

The person who will receive annuity benefits at stipulated intervals of

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time like yearly / half yearly/ quarterly / monthly intervals.

Annuity

The amount paid under an annuity scheme at stipulated intervals like

yearly/half yearly/quarterly/monthly intervals.

Annuity Certain

An insurance contract that provides an annuity for a certain number of

years, irrespective of whether the insured is alive or dead.

Annuity Consideration
The payment that an annuitant makes for an annuity.

Assignee

The person to whom the benefits of the life insurance policy are
assigned.

Assignment

A transfer of the rights and benefits of an insurance policy from one

person to another.

Authority

The Insurance Regulatory and Development authority established

under sub-section (1) of section 3 of the Insurance Regulatory and
Development Authority Act, 1999.

Benefit Period

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The time for which an insurance company covers the designated
insured or dependents for the benefits.

Beneficiary

The person who receives the benefit of a policy in case of death

during the term or the policyholder who receives the benefit on
maturity.

Benefit Period

The time for which an insurance company covers the designated

insured or dependents for the benefits.

Bonus

Bonus is the amount added to the basic sum assured under a with-
profit life insurance policy.

Buying price

This is the price at which you enter a fund, based on the market value
per unit, increased by the relevant trading costs associated with
buying the assets.
During the term of the plan, your financial requirements could
change. And you may want switch between funds. Your units in the
fund would be sold at the selling price and other units bought at the
buying price as per your instructions.

Claim

A request for payment of the contractual benefits by the insurer that is

made by the insured or the beneficiary.

Concealment

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When an applicant withholds critical information from the insurance
company, it is called concealment. For instance, if the applicant is
suffering from a terminal disease and he does not notify the company
of this, he is concealing information.

Simple meaning:- when a person hides some critical information from

insurance company that called as concealment.

Dating Back

Dating Back or Back Dating is an option that allows the assured to get
the benefits of lower age by commencing the policy from a date
earlier than the date on which the proposal form was signed. Back
Dating is permissible only within the same financial year.

Death Benefit

The benefit received by the beneficiary (ies) on the death of the

insured.

Endowment Plan

A plan in which the amount is paid to a policyholder if he outlives the

tenure of the contract or to the beneficiary if the insured person dies
before the date on which the policy matures.

Simple meaning:- when a policy holder long live then contract or

beneficiary gets after death of policy holder that called as endowment
plan.

Managing agent
An agreement with the company by which a person, firm or company
is entitled to the management of the whole affairs of a company under
the control and direction of the directors unless provided for in the
agreement, and includes any person, firm or company occupying such
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position by whatever name called.

Maturity Date
The date on which the policy term expires.

Money Back Plan

A plan in which part of the sum assured is paid back to the
policyholder at regular intervals.

Free look period

A free look period gives the client an option to review the terms and
conditions of the policy within 15 days from the date of receipt of the
policy document. Where he disagrees with the terms and conditions
stated in the policy, he has the option to return the policy, stating the
reasons for objection. In such a case the Policy would then be
cancelled and the premium paid by the client would be refunded to
him, after deducting: proportionate risk premium for the period on
cover, expenses incurred by the Insurance Company on medical
examination of the client and stamp duty charges.

Group Life Insurance

Life insurance of a group of people under a policy. This group should

already be in existence and should not have come together only for
the purpose of insurance.

Human Life Value

The present value of the family's share of the breadwinner's future

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earnings is considered as Human Life Value, for purposes of life
insurance.

IRDA

The acronym for the Insurance Regulatory and Development

Authority of India, it is the apex body overseeing the insurance
business in India. It protects the interests of the policyholders,
regulates, promotes and ensures orderly growth of the insurance
industry and for matters connected therewith or incidental thereto.

Lapse

The termination of an insurance policy due to non-payment of premia.

Last Birth Day

Age at last birthday.

Level Premium Life Insurance

Life insurance for which the premium remains unchanged year after
year.

License

Permission granted by IRDA to the applicant for commencement and

operation of the insurance business in India.

Life Insurance

A contract provided for the payment of a sum of money to the person

assured or failing him, to the person entitled to receive the same, on
the happening of certain event for the consideration. Here, sum of
money refers to sum assured/benefits; certain event refers to
contingent event; consideration refers to premium.
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Nomination

A provision by which a policyholder can designate any person to

receive the policy money in the event of his death.

Nominee

A person selected by the policyholder to receive the benefit in case of

death of the life insured.

Non Forfeiture Option

A clause whereby the insurers do not generally forfeit all the premia
paid, in case of a lapse of policy. This benefit is accorded to policy
holders because of higher premia paid during the early years and the
interest earned on these premia by the insurance companies.

Non Participating policies

These are also called "non-par policies" or “policies without

participation in profits". These policies are not entitled for any share
in surplus (profits) during the term of the policy

Non-Standard Life

An individual who cannot be granted a policy under normal rates of

premia.

Participating policies

These are also called "par policies" or "policies with participation in

profits". These policies are not non-par policies and are entitled for
any share in surplus (profits) during the term of the policy.

Policyholder

The person who owns the policy, in this case, a life insurance policy.
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Premium

The amount paid by a policyholder to the insurance company, in order

to be covered under a policy.

Prospect

A potential new customer who can be approached for buying an

insurance policy.

Reinstatement

To restore the policy after the insurance policy has lapsed.

Reinsurance

The transfer of part or whole of the risk by the original insurance

company to one or more reinsures.

Rider

An add-on benefit available at the option of the policyholders that

may alter certain features of a policy by increasing or restricting
benefits.

Rural sector

In accordance with the Insurance Act, 1938, any place under the latest
census, which has
1) A population of not more than five thousand
2) A density of population of not more than four thousand per square
kilometer and
3) At least 75 per cent of the male working population is engaged in
agriculture.

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Selling price

This is the price at which you can sell units, based on the market
value per unit, less the relevant trading costs associated with selling
the assets.

Social sector

In accordance with the Insurance Act, 1938, this includes unorganized

sector, informal sector, economically vulnerable or backward classes
and other categories of persons, both in rural and urban areas.

Surrender Value

A value payable if you want to surrender the plan before a claim

arises.

Term

The tenure of the policy.

Term Cover

A type of life insurance where the sum assured is payable only in the
event of death of the insurer during the specified term. In the case of
survival, the contract expires and the premium is not paid back to the
insured.

Whole Life Insurance

A life insurance policy where benefits are payable to a beneficiary on
death of the insured, whenever that occurs. The premium payment can
happen for a specified number of years or throughout life.

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INSURANCE SECTOR REFORMS
In 1993, Malhotra Committee, headed by former Finance Secretary
and RBI Governor R. N. Malhotra, was formed to evaluate the Indian
insurance industry and recommend its Future direction.
The Malhotra committee was set up with the objective of
complementing the reforms initiated in the financial sector. The
reforms were aimed at “creating a more efficient and competitive
financial system suitable for the requirements of the economy keeping
in mind the structural changes currently underway and recognizing
that insurance is an important part of the overall financial system
where it was necessary to address the need for similar reforms…” In
1994, the committee submitted the report and some of the key
recommendations included.`
➢ Insurance regulator IRDA set up.

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 ➢ IRDA starts giving licenses to private insurers: Kotak Life
Insurance ICICI prudential and HDFC Standard Life insurance
first private insurers to sell a policy.
➢ Royal Sundaram Alliance first non life insurer to sell a
policy 2002 Banks allowed selling insurance plans.

LIST OF COMPANIES REGISTERED WITH

IRDA

➢ Aegon Religare Life Insurance Company Ltd.

➢ Aviva Life Insurance Co. India Ltd.
➢ Bajaj Allianz Life Insurance Company Limited
➢ Bharti AXA Life Insurance Company Ltd.
➢ Birla Sun Life Insurance Company Ltd.
➢ Canara HSBC Oriental Bank of Commerce Life Insurance
Company Ltd.
➢ DLF Pramerica Life Insurance Company Ltd.
➢ Future Generali India Life Insurance Company Limited

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 ➢ HDFC Standard Life Insurance Company Ltd.
➢ ICICI Prudential Life Insurance Company Ltd.
➢ IDBI Fortis Life Insurance Company Ltd.
➢ ING Vysya Life Insurance Company Private Limited
➢ Kotak Mahindra Old Mutual Life Insurance Limited
➢ Life Insurance Corporation of India
➢ Max New York Life Insurance Co. Ltd.
➢ Metlife India Insurance Company Ltd.
➢ Reliance Life Insurance Company Limited.
➢ Sahara India Life Insurance Co, Ltd.
➢ SBI Life Insurance Company Limited .
➢ Shriram Life Insurance Company Ltd.
➢ Star Union Dai-ichi Life Insurance Co. Ltd.,
➢ Tata AIG Life Insurance Company Ltd.

TYPES OF LIFE INSURANCE POLICY

Term Insurance Policy
➢ A term insurance policy is a pure risk cover for a specified
period of time. What this means is that the sum assured is
payable only if the policyholder dies within the policy term. For
instance, if a person buys Rs 2 lakh policy for 15-years, his
family is entitled to the money if he dies within that 15-year
period.
➢ What if he survives the 15-year period? Well, then he is not
entitled to any payment; the insurance company keeps the entire
premium paid during the 15-year period.

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 ➢ So, there is no element of savings or investment in such a
policy. It is a 100 per cent risk cover. It simply means that a
person pays a certain premium to protect his family against his
sudden death. He forfeits the amount if he outlives the period of
the policy. This explains why the Term Insurance Policy comes
at the lowest cost.

Whole Life Policy

➢ As the name suggests, a Whole Life Policy is an insurance cover
against death, irrespective of when it happens.
➢ Under this plan, the policyholder pays regular premiums until
his death, following which the money is handed over to his
family.
This policy, however, fails to address the additional needs of the
insured during his post-retirement years. It doesn't take into account a
person's increasing needs either. While the insured buys the policy at
a young age, his requirements increase over time. By the time he dies,
the value of the sum assured is too low to meet his family's needs. As
a result of these drawbacks, insurance firms now offer either a
modified Whole Life Policy or combine in with another type of
policy.
Endowment Policy
Combining risk cover with financial savings, endowment policies is
the most popular policies in the world of life insurance.
➢ In an Endowment Policy, the sum assured is payable even if the
insured survives the policy term.
➢ If the insured dies during the tenure of the policy, the insurance
firm has to pay the sum assured just as any other pure risk
cover.
➢ A pure endowment policy is also a form of financial saving,
whereby if the person covered remains alive beyond the tenure
of the policy; he gets back the sum assured with some other
investment benefits.

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In addition to the basic policy, insurers offer various benefits such as
double endowment and marriage/ education endowment plans. The
cost of such a policy is slightly higher but worth its value.
Money Back Policy
➢ These policies are structured to provide sums required as
anticipated expenses (marriage, education, etc) over a stipulated
period of time. With inflation becoming a big issue, companies
have realized that sometimes the money value of the policy is
eroded. That is why with-profit policies are also being
introduced to offset some of the losses incurred on account of
inflation.
➢ A portion of the sum assured is payable at regular intervals. On
survival the remainder of the sum assured is payable.
➢ In case of death, the full sum assured is payable to the insured.
➢ The premium is payable for a particular period of time.

Annuities and Pension

In an annuity, the insurer agrees to pay the insured a stipulated sum of
money periodically. The purpose of an annuity is to protect against
risk as well as provide money in the form of pension at regular
intervals.
Over the years, insurers have added various features to basic
insurance policies in order to address specific needs of a cross section
of people.

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CHAPTER 2. KOTAK MAHINDRA

One of India's leading financial institutions was born in 1985 as

Kotak Capital Management Finance Limited. This company was
promoted by Mr.Uday Kotak, Mr. Sidney A. A. Pinto and Kotak &
Company. Industrialists Mr. Harish Mahindra and Mr. Anand
Mahindra took a stake in 1986, and that's when the company changed
its name to Kotak Mahindra Finance Limited. It's been a steady and
confident journey to growth and success.
In October 2005, Kotak Group acquired the 40% stake
in Kotak Prime held by Ford Credit International (FCI)
and FCI acquired the stake in Ford Credit Kotak
Mahindra (FCKM) held by Kotak Group.

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In May 2006, Kotak Group bought 25% stake held by
Goldman Sachs in Kotak Capital and Kotak Securities.
Kotak Mahindra is one of India's leading financial
institutions, offering complete financial solutions that
encompass every sphere of life. From commercial
banking, to stock broking, to mutual funds, to life
insurance, to investment banking, the group caters to
the financial needs of individuals and corporates.

The group has a net worth of over Rs. 2,900 crore,

employs around 8,800 people in its various businesses
and has a distribution network of branches,
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franchisees, representative offices and satellite offices
across 282 cities and towns in India and offices in New
York, London, Dubai and Mauritius. The Group services
around 2 million customer accounts.

OLD MUTUAL

Old Mutual was established

more than 150 years ago and
has developed into an International financial services
group whose activities are focused on asset gathering
and asset management. The Old Mutual Group offers a
diverse range of financial services in three principal
geographies: South Africa, the United States and the
United Kingdom. The company is listed on the London
Stock Exchange with a market capitalization of
approximately $6 billion and is a member of the elite
FTSE 100 index. In the 2003 rankings of the World's
500 largest corporations by Fortune magazine, Old
Mutual climbed 87 places to position number 366 and
was also listed as the 14th largest insurance company
in the world.

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Old Mutual is the largest financial services business in
South Africa, through its life insurance, asset
management, banking and general insurance
operations. The company serves 4 million life insurance
policyholders and employs over 13 000 South Africans
in its local operations.
In the USA, Old Mutual is one of the top ten fixed
annuity businesses offering an array of specialist asset
management skills through its 23 asset management
businesses. The company’s US Life business recorded
sales of $4 billion at the end of 2002.
Operations in the United Kingdom are focused on
wealth management, through Gerrard as one of the
leading private client stock broking businesses in the
UK.
The Old Mutual Group has the ability to cater for a
variety of consumer segments and offers a
comprehensive and innovative range of products for all
income groups.

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KOTAK OLD MUTUAL LIFE
INSURANCE
Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture
between Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc. At
Kotak Life Insurance, we aim to help customers take important
financial decisions at every stage in life by offering them a wide range
of innovative life insurance products, to make them financially
independent.
Kotak Mahindra Old Mutual Life Insurance is the 74:26 joint ventures
between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak
Mahindra Old Mutual Life Insurance is one of the fastest growing
insurance companies in India and has shown remarkable growth since
its inception in 2001.

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VISION
Kotak Life Insurance has a deep rooted commitment to
improve the quality of life of its customers, employees
and stakeholders. We aim at improving the long term
value in our relationship by continuous innovation and
improvements. We do this by our three-prong effort
which strives to make Kotak Life Insurance a corporate
with values.

Increase Customer Value

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Kotak Life Insurance has gone to the heart of its
customer's requirements and developed products
which are unique and serve the customer needs
perfectly. We built a relationship of mutual trust and
benefit to serve the Indian customer. At Kotak Life
Insurance the customer always comes first.

Cohesive Work Environment

We form long-term partnership with our employees by
offering them an invigorating work experience. We not
only demand loyalty, sincerity and values but also give
it back in equal measures. Kotak Life Insurance will like
to offer its employees space to grow, innovate and
build a long-term career.

Work with Honor

Kotak Life Insurance delivers everyday services in the
marketplace with the high sense of duty and
commitment. Our employees strive to build the long-
term value for all those come in contact with Kotak Life
Insurance. Our consumers, distributors, employees,
shareholders and the nation have our commitment that
we will uphold the values of trust, integrity and a Sense
of Honor in every thought, act and deed in order to
positively contribute to individual, society and nation
growth.

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MISSION
➢ We focus on the needs of our customers and create confidence,
trust and loyalty by offering a wide range of innovative
insurance solutions.
➢ Strengthened by our commitment to professional management,
we ensure the continued growth and advancement of our
employees.

GROUP COMPANIES
➢ Kotak Mahindra Bank Ltd.
➢ Kotak Mahindra Capital Company Ltd.
➢ Kotak’s International Business
➢ Kotak Mahindra Prime Ltd.
➢ Kotak Securities Ltd.
➢ Kotak Mahindra Asset Management Company
➢ Kotak Mahindra Old Mutual Life Insurance Ltd
➢ Kotak Private Equity Group (KPEG)
➢ Kotak Realty Fund

TYPES OF PRODUCT

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There two major categories under which all life insurance plans can
be categorized. These categories are as follows:

• Traditional plans – Traditional life insurance plans make

sure that the investments made by the policy holders are not
exposed to equities. They are also called as non-unit linked
insurance plans. Such plans are suited for customers looking for
pure risk protection. These plans are also suitable for those who
are totally risk averse and want complete safety of their
investments.

• Unit Linked Insurance plans (ULIPs) –ULIPs, as

the name suggests, allows for the investments made by the
policyholders to get exposed to equities. They may also be
called as market linked life insurance plans. ULIPs are suited for
customers who aim for wealth creation over a long term. The
level of equity exposure can be as per your risk appetite thus
making ULIPs highly flexible.

TRADITIONAL PLANS IN KOTAK

LIFE INSURANCE
• Kotak preferred term plan.
• Kotak money back plan.
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 • Kotak internal life.
• Kotak capital multiplier.
• Kotak endowment plan.

UNIT LINKED PLANS OF KOTAK

LIFE INSURANCE
• Kotak single investment plan.
• Kotak super advantage plan.
• Kotak head start future protect.
• Kotak long life secure plan.
• Kotak pension retirement plan.
• Kotak platinum advantage.
• Kotak second inning plan.
• Kotak guaranteed pension builder.

DIFFERENCE BETWEEN
TRADITIONAL AND ULIP PRODUCT
ULIPs TRADITIONAL PLANS

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The premiums, in excess All the premiums go into a common
of risk cover, is invested as fund and are invested at the insurer’s
desired by the discretion.
policyholder,
The investment return may There are two categories of benefits –
vary depending on the guaranteed and non-guaranteed. For
market movements and the guaranteed benefits, the insurer bears the
investment risk is borne investment risk. However, non-
entirely by the guaranteed benefits, depends on the
policyholder. performance of the insurer.
Withdrawals are allowed. Surrender are allowed but at a loss.
Loss, if any depends on Loans may be provided.
NAV. Loans is not
allowed.
There are no bonuses, For participating policies, bonuses are
except loyalty bonus in payable.
some cases.
The amount of the The premium amount used for insurance
premium used for coverage, other charges and investment
insurance coverage, other are bundled and not known.
charges and the purchases
of units are unbundled and
transparent.
Benefits are variable. Benefits are pre-determined.
Loss is likely. Loss in unlikely.
Gains likely depending on Gains unlikely except through bonuses.
market movements.

ORGANISATIONAL STRUCTURE
AND FLOW

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 AREA MANAGER

BRANCH MANAGER

Asst. Br.

MANAGER

SALES AGENCY CORPORATE

MANAGER MANAGER EXECUTIVES

CORPORATE
LIFE
BANK
ADVISORS

ORGANIZATIONAL FLOW:

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 MD

NATIONAL HEAD

VICE HEAD

AREA MANAGER

BRANCH SALES MANAGER

AGENCY MANAGER
SALES MANAGER

LIFE ADVISORS LIFE ADVISIORS

OPERATIONS AT KOTAK

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LIFE ADVISOR
 ➢ Life advisors meet the prospects and make them understand the
policy plan. When they are ready to take the policy form is filled
up by them.
➢ After that, details are entered in computer and it is send to
verification at branch level.
➢ Branch manager check the required details and if everything
proper, it is forwarded to head office for the verification.
➢ At the head office, actuary checks the required details like
premium to be paid, age of the applicant, his income etc. if
required any more details he asks for such details like medical
certificate, may declare life as sub standard and demand more
premium etc.
➢ After verification, policy is issued in name of applicant and it is
send to the required branch in name of the life advisor.
➢ The advisor collects it from the branch and hand it over to the
prospect.

POLICY MAKING AND RECEIVING

PROCEDURE
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In Kotak life insurance, they first conduct survey to know preferences
of people about policy they would like to take. They make the
questionnaire of question related with insurance policy. They ask
people about what type of policy they would like to buy. After the
survey they do mutual discussion with different marketing mangers,
financial managers, actuaries and experts of insurance industry. They
all do discussion about how they can make the best policy as people
want. After this they send guidelines of making policy product to
head office at Bombay to chief marketing manager, chief financial
manager, and BOD for their final approval.
As they give final approval to this most preferred policy by people.
They make policy product to give satisfaction to people. As this the
policy making is done.
As the policy product has been made the information related with the
product will send to different branches by mail. The branches get the
name, features and the date when the new product will be launched.
Like this, the branches receive information about new product to be
launch in future.

DOCUMENTS NECESSARY FOR TAKING POLICY IN

KOTAK LIFE INSURANCE
Kotak life insurance take documents for KYC which is short form of
“Know Your Customer” to know that whether the person who wants
to take policy is eligible to pay premium or not. The documents
necessary to take policy for any person are as follows:
➢ Photo of the Person who wants to take policy
➢ PAN Card of the Person who wants to take policy
➢ Address Proof of the Person who wants to take policy
➢ Identity Card of the Person who wants to take policy

FORMAT OF RECEIPT OF POLICY TAKING AND PAYMENT OF

RENEWAL PREMIUM IN KOTAK LIFE INSURANCE

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The receipt of policy taking is a confidential document
which is dispatch with the documents of policy. As this
the Kotak Life Insurance also gives one slip for payment
of premium in cash.

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[FORMAT OF RECEIPT OF POLICY TAKING

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LAPSATION AND REVIVAL
PROCEDURE
INTRODUCTION
A life insurance policy lapses when the subscriber does not pay the
premium within the grace period. When a policy lapses, the holder
forfeits the premium paid and the insurance cover. The agent loses the
renewal commission. It also impacts the growth of the insurance
business and solvency margins of the insurer. Lapsation of a life
insurance policy is discontinuation of premium payment by the
policyholder during the period of operation of the policy, due to any
reason other than the death of the policyholder. The length of life of a
lapsed policy can be defined as the period between the month when
the last premium installment was paid and the month the policy was
issued.

WHEN DOES A POLICY LAPSE?

For a unit-linked policy, which is less than three years old, the chance
of a lapse begins as soon as you skip a premium. Typically, the
insurer sends a reminder and gives a grace period of a month. During
this time the life insurance cover would continue, so if the
policyholder died during the grace period, the nominee would still be
able to get the benefit. However, once the grace period is over, the
insurer will send a letter saying the policy has lapsed. But this threat
does not hold water for a single-premium policy, since the entire
amount is, by definition, paid upfront. For a policy, which is more
than three years old, the policy assumes a paid-up value. This would
mean that even as further premium flow stops, the policy would
continue to be in force. Once the policy becomes paid up, it will
continue to be in force as long as the fund value is sufficient to meet
the expenses specified of the policy. Fund value is the total money
invested minus charges, the insurer dips into this corpus to meet its
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expenses if the policyholder does not pay fresh premiums. However,
if you have the money, then a good idea would be to continue paying
up premiums since the charges would eat into your fund value,
pulling the returns down.

PROCEDURE OF LAPSATION:
Suppose if policy is taken on 1st Jan 2009 premium renewal is on 1st
Jan 2010 but the person fails to pay premium on that date, then notice
is being sent to the policy holder.
After that grace days of 30 days is given to pay the due premium to
avoid lapsation.
If premium is not paid within these grace days also than 0 .75% is
charged on payment of premium till 6 months.
If premium is not paid till the end of six months than policy will be
lapsed.
It’s the role of advisor to inform their clients about premium and save
their client’s policy from lapsation.
In kotak as per the data available 80% of clients who have not paid
premium on due date have paid their premium within grace days.
DETERMINANTS OF LAPSE RATE
To form the lapse rate for a specific life insurer, the value of lapsed
policies for ordinary life products is divided by the average total life
insurance in force during the time period. This ratio is multiplied by a
scaling factor of 100. Ordinary life policies include the following
types of insurance plans: level term life; decreasing term; renewable
term; traditional whole life; interest sensitive whole or universal life;
and graded-premium whole life. One of the major causes for the
growing lapsation ratio is forced selling by agents to achieve their
targets. Agents also sell policies without taking customers’ needs into
account. Interest in lapse rate determinants has become more
prominent in recent years as some financial service firms have applied
securitization techniques to life insurance policies held by individuals.
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Under securitization arrangements, the insured person conveys the
payment rights of the policy to the firm structuring the securitization
product. In return, the insured person receives a onetime cash
payment. The securitizing firm pools these policies, using them as the
basis for asset-backed securities. Insurance companies, too, may
engage in the securitization of their life insurance liabilities by
transferring life policies and the assets that back them.
FINDINGS ON LAPSE POLICIES

As per IRDA findings the lapse rates for the non-linked products and
linked products over the last three years were as follows:

➢ Lapse rate for seven companies out of sixteen exceeded the

industry average (simple arithmetic mean) of 18% (lapse rate by
number) and 11.9% (lapse rate by premium amount). However,
majority of the companies exceeded the industry average rate
(weighted average with weights being premium exposed to risk)
by a considerable margin.
➢ Age at entry, mode of premium payment, duration elapsed
since policy inception, policy type and type of underwriting are
found to be the most significant factors affecting the lapse rates.
➢ Lapse rate with respect to age at entry showed a decreasing
trend from age group 18-22 to around 60 years and lapse rate
tended to increase from the range below 18 to age group 18-22.
➢ Lapse rate (by number of policies) with respect to mode of
premium payment tended to be higher with the frequency of
premium payment and lower for monthly and salary deduction
modes.
➢ It was observed that the trends in lapse rate with respect to both
number and premiums were almost similar to each other.

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REVIVAL OF LAPSED POLICIES

For a lapsed policy, the insurer gives up to four years to revive the
policy. However, revival becomes difficult because, for the insurer,
the policyholder becomes a greater risk with the passage of years. The
later you revive, the older you get, which naturally increases the risk
for the insurer. Also, you will have to undergo medical tests. The
revival process is easy up to six months from the date of lapsation—
all you have to do is pay the premiums. But after six months you will
not only have to pay a specified amount as interest, which may be 12-
18 per cent of the premium or a charge of up to Rs 500, but may also
have to undergo a medical check-up as per the insurer’s
specifications. This is paid for by the policyholder. After the
revival period is over, the contract shall terminate and the fund value,
with the charges subtracted from it, would be paid at the end of the
third policy year, or at the expiry of the revival period, whichever is
later. It is in your best interests to pay your premiums regularly.
In case you forgot to pay your premiums, pay them as soon as
possible. And remember: the cover is no longer active when the
policy is lapsed.

PROCEDURE OF REVIVAL:
You can revive your lapsed policy, by making an
application to Kotak Life Insurance, within a period of
five years from the due date of the first unpaid
premium and before the maturity of the policy.

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Any request for revival after this may be accepted or
declined at Kotak Life Insurance’s discretion or subject
to such terms and conditions as it deems fit.
The revival of the policy will be effective after Kotak
Life Insurance’s approval is communicated in writing to
you.

Terms and conditions

The policy may be revived on the following terms:
➢ If the request is made within six months from the due date of the
first unpaid premium then evidence of good health will not be
required but is subject to a payment of the premiums in arrears
and 6% of the premiums in arrears as administration charges.
➢ If the request is made after 6 months but within 5 years from the
due date of the first unpaid premium, proof of good health will
have to be submitted and evidence of that there is no adverse
change in the personal or family history or occupation will also
have to be given. In such event, premiums will be re-calculated.

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CLAIM SETTLEMENT
Claims and loss handling is the materialized utility of insurance; it is
the actual "product" paid for, though one hopes it will never need to
be used. Claims may be filed by insureds directly with the insurer or
through brokers or agents. The insurer may require that the claim be
filed on its own proprietary forms, or may accept claims on a standard
industry form such as those produced by ACORD.
Insurance company claims departments employ a large number of
claims adjusters supported by a staff of records management and data
entry clerks. Incoming claims are classified based on severity and are
assigned to adjusters whose settlement authority varies with their
knowledge and experience. The adjuster undertakes a thorough
investigation of each claim, usually in close cooperation with the
insured, determines if coverage is available under the terms of the
insurance contract, and if so, the reasonable monetary value of the
claim, and authorizes payment. Adjusting liability insurance claims is
particularly difficult because there is a third party involved, the
plaintiff, who is under no contractual obligation to cooperate with the
insurer and may in fact regard the insurer as a deep pocket. The
adjuster must obtain legal counsel for the insured (either inside
"house" counsel or outside "panel" counsel), monitor litigation that
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may take years to complete, and appear in person or over the
telephone with settlement authority at a mandatory settlement
conference when requested by the judge.
If a claims adjuster suspects underinsurance, the condition of average
may come into play to limit the insurance company's exposure.
In managing the claims handling function, insurers seek to balance the
elements of customer satisfaction, administrative handling expenses,
and claims overpayment leakages. As part of this balancing act,
fraudulent insurance practices are a major business risk that must be
managed and overcome. Disputes between insurers and insureds over
the validity of claims or claims handling practices occasionally
escalate into litigation..

ISSUES IN CLAIM SETTLEMENT

The claim is the demand that the insurer should redeem the promise
made in the contract. The insurer has then to perform his part of
the contract i.e. settle the claim after satisfying himself that all
the conditions and requirements for settlement of claim have
been complied with. In particular he should check

• Whether insured event has taken place.

• What are the obligation assumed under the contract, which are
required to be performed. These may be payment of bonus,
payment of sum assured in installments, waiver of future
premiums, etc.
• Whether the policyholder has performed his part. The policy
status with regard to premium position, age admission,
outstanding loan and interest, survival benefit, if any legal
requirement such as MWP Act ( Married Women’s Property
Act), foreign exchange regulations, report of investigations,
police reports, etc.

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 • Who are the person entitled to demand performance.
Nomination, assignment, income tax notice, prohibitory orders,
officials assignee notice – are all relevant.

PROCEDURE OF CLAIM
SETTLEMENT
Death Claim
In case of unfortunate event of the death of the Life Insured the
following standard documents need to be submitted to the Claims
Department :
• Duly filled Claim Intimation Form[please ensure all the fields
are completely filled up].
• Original policy document.
• Original Death certificate issued by the requisite authority.
• Last Attending Physician's Certificate in original.
• Past & Present Hospitalisation / Medical Documents.
• Cremation / Burial Certificate.
• From the Beneficiary :
 Photo ID with Date of Birth with relationship with the
Insured.
 Proof of legal title to the claim proceeds (e.g. legal
succession paper, assignment deed)

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Reason for delay in intimation, if any
If the death has occurred due to any Unnatural cause, in addition to
the above, the following documents should also be submitted :
• Duly Certified Police Report
• Duly Certified Police Inquest Report / Panchnama Report
• Duly Certified Post Mortem Report
• Duly Certified Chemical Analysis (Viscera) report, if any.
• Newspaper Cuttings with the photograph of the Accident, if
available.

Critical Illness Claim

In case of a Critical Illness Claim, the rider amount will be paid if the
Life Insured is diagnosed to be suffering from any one of the twelve
illnesses as specified in the Policy contract and the criteria as laid
down for claiming the rider is satisfied. The following documents
need to be submitted :
• Duly Filled Claim Intimation Form
• Original Policy Contract
• Questionnaire to be completed by the Doctor / Hospital treating
the Life Insured.
• All related Medical Examination Reports in Original*, e.g.
○ Laboratory test reports.
○ X-Ray / CT Scan / MRI Reports & Plates.
○ Ultrasonography Report.
○ Histopathology Report.
○ Clinical / Hospital Reports.
○ Angiography Reports & Plates.
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 ○ Others (as may be required for the particular illnesses).
* these can be returned back on request. Note:
1. The Company has a right to require medical examination of the
Life Insured and confirmation of the diagnosis of an Insured
Critical Condition by a medical practitioner appointed by the
Company.
2. The Claim for Critical Illness Rider benefit has to be lodged by
the Life Insured within 30 days from the date of diagnosis.
3. The CIB Rider gets terminated automatically on admittance of
the CIB claim.
4. The Rider is subject to the conditions and the exclusions as laid
down in the "Annexure CIB" to the policy contract.
5. The Rider is subject to the conditions and the exclusions as laid
down in the "Annexure CIB" to the policy contract.
6. "Annexure CIB" to the policy contract.

Permanent Disability Claim

In case of Disability Claims, the entire Rider Amount will be paid to
the Life Insured where the Life Insured becomes Totally and
Permanently Disabled and satisfies the disability criteria as laid down
in the Annexure to the Policy Contract. The following documents
need to be submitted :
• Duly Filled Claim Intimation Form
• Original Policy Contract
• Questionnaire to be completed by the Doctor / Hospital treating
the Life Insured.
• All related Medical Examination Reports in Original*, e.g.
 Laboratory test reports.
 Surgery Reports, if any
 X-Ray / CT Scan / MRI Reports & Plates.
 Clinical / Hospital Reports.
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  Others (as may be required for the particular illnesses).
Notes:
1. The Life Insured will have to undergo the required Medical
Tests by the Company specified Doctors.
2. The Company should be intimated with the relevant details :
○ within 30 days of the accident and
○ within 120 days after the happening of disability with
proof.
3. The PDB Rider gets terminated automatically on admittance of
the PDB claim.
4. The Rider is subject to the conditions and the exclusions as laid
down in the "Annexure PDB" to the policy contract.

Waiver of Premium Claim

A. Death of the Policy Holder In case of Claims for Waiver of
Premiums i.e. where the Policy Holder has availed of the Life
Guardian Benefit and the policy holder has passed away the future
premiums, as mentioned in the contract, will be waived. The
following documents need to be submitted :
• As mentioned above in Death Claims

Notes:
1. The Company should be intimated of the death within one year
of the occurrence of death.
2. The Accidental Disability Guardian Benefit, if availed, will
cease automatically on the admittance of the Claim under the
Life Guardian Benefit.

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 3. The Rider is subject to the conditions and the exclusions as laid
down in the "Annexure LG" to the policy contract.
B. Disability of the Policy Holder In case of Claims for Waiver of
Premiums i.e. where the Policy Holder has availed of the Accidental
Disability Guardian Benefit and the policy holder has become totally
and permanently disabled the Basic Premium amount will be waived.
The following documents need to be submitted :
• As mentioned above in Permanent Disability Claims

Notes:
1. The Life Insured will have to undergo the required Medical
Tests by the Company specified Doctors.
2. The Company should be intimated with the relevant details :
○ within 30 days of the accident and
○ within 120 days after the happening of disability with
proof.
3. The Life Guardian Benefit, if availed, will cease automatically
on the admittance of the Claim under the Life Guardian Benefit.

CHAPTER 21. COMPARATIVE

ANALYSIS OF PREMIUM
INSURANCE COMPANY IN INDIA
COMPARATIVE ANALYSIS

Definition
Item by item comparison of two or more comparable alternatives, processes,
products, qualifications, sets of data, systems, etc. In accounting, for example,
changes in a financial statement's items over several accounting periods may be

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presented together to detect the emerging trends in the firm's operations and
results.

Purpose
• The foremost purpose of comparative analysis is to set a
benchmark for a company.
• To set a strategy to overcome a gap that is created.
• To know the loopholes of company function and work on it.
• To know the status of company.

CLAIMS REPUDIATION OF LIFE INSURERS

Source: Annual Report - IRDA

Repudiation Ratio %
Life insurer 2007-08 2008-09

No
Aegon Religare Claims 71.43
Aviva 23.96 19.33
Bajaj Allianz 13.02 8.35
Bharti Axa 38.46 44.83
Birla Sunlife 7.47 10.37
No
Future Generali Claims 30
ICICIPru 6.57 5.2
ING Vysa 14.01 7.81
Kotak Mahindra 25.32 9.23
Max New York 9.42 7.77
MetLife 21.42 22.77

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 Reliance Life 8.47 5.67
Sahara Life 4.84 12.3
SBI Life 7.1 15.09
Shriram 19.19 24.27
Tata AIG 24.82 27.78
HDFC SL 4.22 4.8
LIC 1.13 3.4

COMPARATIVE ANALYSIS IS CARRIED OUT

BETWEEN THREE INSURANCE COMPANIES
LIFE INSURANCE CORPORATION OF INDIA,
BAJAJ ALLIANCE LIFE INSURANCE AND
KOTAK OLD MUTUAL LIFE INSURANCE

OUTSTANDSING CLAIMS

LIC BAJAJ KOTAK

13058 7097 200

INTERPRETATION: Lic is
having 13058 claims outstanding.
Kotak is having 1.53% less than lic
and bajaj is having 11.83% less than
lic.
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 CLAIMS REPUDIATED

BAJAJ KOTAK
549 165

INTERPRETATION: the claim

repudiation in terms of percentage
bajaj is 332.73% more than kotak life
insurance. As lic deals in traditional
plans so claims repudiation case in
lic will be almost nil.

CLAIMS SETTLED AND PAID

LIC BAJAJ KOTAK

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 664619 11626 3100

INTERPRETATION: It is clearly
indicated that lic has largely settled
claims than others.

ADDITIONAL INFORMATION
ACQUIRED

• Total claims booked with LIC are 661083 in 2009-10

578795 in 2008-09 and 547919 in 2007-08.
• Total claims payable with LIC are 674141 in 2009-
10 590392 in 2008-09 and 547419 in 2007-08.
• Claims intimated with BAJAJ ALLIANCE is 6624.

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 • Claim settlement ratio of BAJAJ ALLIANCE is
95.5%.
• KOTAK paid 93 crores rupees claims in 2008-09
and 191 crores in total. This indicates that 91 crores
are paid in this year i.e. 2009-10.
• 75% of claims are paid in 7 days. 98% of claims are
paid in 15 days. And lastly 100% claims are settled
in 3 weeks.

CHAPTER 3. RESEARCH
METHODOLOGY
RESEARCH OBJECTIVES:
1. Primary Objective:
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Main objective of the study is to know the perspective of investors
towards Investments and Insurance in special Regards with ULIPS.
2. Secondary Objective:
The objective of my training was
to study the insurance company dealing in general insurance
and life insurance. To know the role of IRDA in insurance
sector. Formalities and procedures needed in settling claims. To
give comparative analysis of claim settlement procedure
followed by premium insurance company in India.

REASEARCH METHOD:
The method includes the data collection method,
nature and format of questionnaire. My survey had 21
questions. Research method contains at least five
parts. Research design, sample design, data collection,
data analysis and limitations of the study.
The research is conducted to collect the needed
information and develop a research plan. Generally the
following types of research are conducted.

➢ Exploratory research:-
An exploratory research focuses on the discovery of ideas and is
generally based on secondary data.
➢ Descriptive research:-
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 A descriptive study is undertaken when the researcher wants to
know the characteristics of certain group such as age, sex,
education level, income, occupation, etc.
➢ Causal research:-
A causal research is undertaken when the researcher is
interested in knowing the cause and effect relationship between
two or more variables. Such studies are base on reasoning along
where tested lines.

In my study, I have used exploratory research design.

SAMPLING DESIGN
When the researcher has decided to carry out a field survey, one has
to decide whether it is to be a census or sampling survey. In my case,
census survey was almost impossible within time span of two months.
Hence, I used sample and my sample size is 200 investors of Surat
city.

First of all, a broad choice is to be made between probability

sampling and non-probability sampling. I have chosen Non-
probability sampling. In Non-probability sampling, further I have
selected convenient sampling for my survey.

Convenient sampling, as name suggest, is based on the convenience

of the researchers who is to select a sample. This type of method is
also called “accidental sampling” as the respondents are included
merely on account of being available on the spot where the survey
was in progress.

Sources of data:
There are basically two types of data used for the project study:
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Primary data:
Primary data are those which are collected afresh and for the first
time, and thus they are original data. Primary data are collected
through questionnaire method, which is filled by respondents.
Secondary data:
Secondary data means data which is readily available from television,
newspaper, magazine etc various secondary data which are used for
the study, they are following
• Websites
• Magazines
Research instrument:
Questionnaire:
Research instrument is concerned with how sampling units be
approached for obtaining the desire information. Here research
instrument is questionnaire. Questionnaire is a set of questions with or
without blank space for recording the answers. Here close ended
questions are used..

BENEFITS OF THE STUDY:

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 ➢ Study helps to know the interest of people towards ULIPS
➢ Study helps to know the investor’s portfolio according to their
age group and occupation.
➢ Study helps to gain in-depth knowledge about the various
investment avenues available to the investors and the psyche of
the investors regarding the investments in the same.

LIMITATIONS OF THE STUDY:

➢ Because of time, constrains all the areas of the city were not
covered for carrying out the survey.
➢ As the topic is very vast, I have not covered sub parts of the
investment avenues.
➢ An exhaustive analysis could not be done due to unwillingness
of the investors to divulge information about their perception
and needs due to some reason.

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 CHAPTER 4. : DATA ANALYSIS
1) Gender:

Gender Frequency Percentage

Male 160 80
Female 40 20
Total 200 100

Interpretation:
As shown in table, I have surveyed 200 people, from which 70 %
were male, while the number of female was 30%

2)AGE:

Objective: To Find out the Preferences in different investment avenues on the

basis of age group

Freque Percent
AGE Group ncy age
18 - 30 114 57

31 - 45 60 30

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 46 - 59 16 8

60 and above 10 5

Total 200 100

Interpretation:With the view of investment, the age group of 18 – 30 and 31 –

45 are the most actively investing group. While senior citizens are defensive
investors in terms of fix returns from their investments..

Frequenc Percenta 3)Occupat

Particulars y ge ion:
Self Employed 20 10

Businessman 46 23
Objective : To
Professional 54 27 Find out the
Salaried 80 40 Preferences in
Total 200 100 different
investment
avenues on the basis of age occupations

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Interpretation:
The Graph depicts that the respondents are from diversified
occupation. Each groups more or les invests their earnings in certain
investment avenues.

4)Annual Income:

Objective: To Find out the Preferences in different investment

avenues on the basis of Investors Income Group.

Frequenc Percenta
Particulars y ge

Less 1,00,000 14 7

1,00,000 to
5,00,000 80 40

5,00,000 to
7,00,000 60 30

more than
7,00,000 46 23

Total 200 100

Interpretation:
The respondents who were surveyed, from that
➢ 7% have annual income of less than 1,00,000,
➢ 40% have income of 1,00,000 to 5,00,000,
➢ 30% have income of 5,00,000 to 7,00,000,
➢ 23% have income of more than 7,00,000.

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 5) investor education about Investment.
Objective: To find out whether the people have idea about what
investment is or they are still unaware for the same?

Frequenc Percenta
Particulars y ge

Yes 78 39

No 98 49

Cant Say 24 12

Total 200 100 Interpretation:

It could be known
that majority of the people are confused about what investment
actually is and how can one do proper investments.

6)Priority of investment in preferred sector.

Objective: To See Clients perceptive about his/her investing habits.

Percenta
Particulars ge

Insurance 25
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 Equity 12

Commodity 5

PPF 9

Mutual Funds 35

Fixed Deposits 8

Real Estate 3

Others 3
Percenta
Particulars
Total ge 100

Insurance 14

Equity 15

Commodity 6
Interpretation:
PPF 11
As we can see from
Mutual Funds 32
table, Majority of the
Fixed Deposits 8 people prefer investing
Real Estate 10 in equity based
Others 4
instruments such as
Direct Stocks, Mutual
Total 100 Funds and Insurances.
7)Kindly
mention proportion of investment that you
are investing in different sectors? (In %)
Objective: To check out the proportion of investments of different
investors based on their appetite.

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Interpretation:
Again, a clear Frequenc Percenta
trend can be Particulars y ge
visible whereby Yes 170 85
clients prefer
No 30 15
equity
instruments over Total 200 100
debt
instruments.

8) Do you have knowledge about Life Insurance?

Objective: To Check out the awareness amongst people regarding

the concept of Life Insurance.

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Interpretation: Majority of the People are aware about what the
concept of Life Insurance is. As per the survey around 85% people
agreed that they had a clear idea about Life Insurance.

9) IF yes, than have you invested in Life Insurance Products?

Objective: To see the gap between the people who know about life
insurance and people who have invested in Life Insurance.

Frequenc Percenta
Particulars y ge

Yes 114 57

No 30 43

Total 200 100

Interpretation:
Out of the 85% that has knowledge about Life Insurance product,
only 57% has made investment in Life Insurance Product. Hence a
huge demand – supply gap is visible easily.

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 10) Which plan in Insurance do you mostly prefer?

Objective: To study what sort of plan, do the investors still prefer to

buy.

Particulars Frequency Percentage

Traditional 76 38

Safe Invest 34 17

Endowment Plan 44 22

ULIPS 30 15

Others 16 8

Total 200 100

Interpretation:
Even today, majority of the people prefer buying Traditional plans as
compared to other insurance products. Hence, it is quite visible that
the main focus is on saving instead of investing.
11) What amount you pay for premium per year?

Objective: Just to know the willingness to invest in Insurance against

their yearly income

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 Amount of Freque Percent
Premium ncy age
5,000 - 10,000 20 10
10,000 - 25,000 40 20
25,000 - 75,000 104 52
75,000 or more 36 18
Total 200 100
Reference Frequenc Percenta
y ge

Friends 78 39

Relatives 60 30

Insurance
Agents 22 11

Office Staff 40 20

Total 200 100

Interpretation:
➢ 10% of the respondents pay premium of 5000 – 10,000,
➢ 20 % pay premium of 10,000 to 25,000,
➢ 52% pay premium of 25,000 – 75,000,
➢ 18% pay premium of 75,000 or more.

12) Which reference group affects your decision in buying

insurance?

Objective: To see the source of the client in buying an insurance

product.

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 Frequenc Percenta
Interpretation: Particulars y ge

Yes 196 98
Majority of the
people from the No 4 2

survey rely on Total 200 100

either friends or
relatives while making a decision.

13)Do you have any idea about Private Life

Insurance Companies?
Objective: To see if the people know the difference between
Private and Public Life Insurance Company

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Interpretation:
From the survey I found that 98% have knowledge of private life
insurance companies and 2% don’t have idea about private life
insurance companies.

14) Which company’s Life Insurance Policy do you have?

Objective: To check the trend going on in the market regarding different companies.

Frequenc Percenta
L.I. Companies y ge

LIC 84 42

ICICI Pru 18 9

Birla Sunlife 16 8

Max Newyork 14 7

Bajaj allianz 16 8

Kotak 20 10

Tata AIG 10 5

Reliance 6 3

HDFC
Standard Life 14 7

Others 2 1

Total 200 100

Interpretation:

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As per the graph, even today the maximum investment is done through LIC only, followed
by Kotak and ICICI Prudential.

15) Do you have any idea about Kotak Life

Insurance Company?

Objective: To Know the awareness amongst people regarding Kotak

Life Insurance Company.
Frequenc Percenta
Particulars y ge

Yes 184 92

No 16 8

Total 200 100

Interpretation:
From the above graph, it is seen that 92% of the people surveyed had
an idea about Kotak Life Insurance Company and 8% people did not
had any idea.

16) Rank the factors which affect your

investment from 1 to 3 in respect with 1 as
highest and 3 as the lowest?

Objective: To study the factors which influence the client

the most while investing.
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 Percentag
Particulars e

Reputation 45

Aggressive Marketing 22

Behaviour or
representative 33

Total 100

Interpretation:
It is seen from the graph that the most important factor among the
three which affects the investment is Reputation (45%), then it is the
behaviour of the representative (33%) and lastly aggressive marketing
(22%) plays role.

17) What is your objective behind purchasing this Insurance

policy?
Objective: To Study the main purpose behind buying an insurance product.

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 Frequenc Percenta
Particulars y ge

Tax benefit 50 25

Provision for higher

studies 26 13

Investments 56 28

Protection for Marriage

expenses 28 14

Repayment of Loan 14 7

Retirement Planning 26 13

Total 200 100

Interpretation:

From the above graph, it is observed that the main objective behind purchasing insurance
policy is investment purpose (28%) and then it moves on to tax benefit contributing 25%.
Then the objective of Protection for Marriage expense (14%) comes into the picture.
Retirement planning and Provision for higher studies both (13%) being the fourth important
objective and lastly repayment of loan contributing just 7%.

18) Which is your preferred mode or time

period for paying premium amount?

Objective: To check out the preference of the client as

compared to their earnings.

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 Frequenc Percenta
Mode of Payment y ge

Monthly 70 35

Quarterly 60 30

Half - Yearly 40 20

Yearly 30 15

Total 200 100

Frequenc Percenta
Particulars y ge

Very Secured 74 37

Secured 94 47

unsecured 30 15

Very Unsecured 2 1

Total 200 100

Interpretation:
Here it is seen that the most preferred time period for paying premium
amount is Monthly(35%) then it goes to quarterly(30%), half-
yearly(20%) and then finally Yearly(15%).

19) What do you think, is your money secured in

Insurance (ULIPS)?
Objective: To see how much does the customer trust the insurance
product.

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Interpretation:
From the survey
Frequenc Percenta
Particulars y ge
conducted, it is observed
that 47% of the people
Yes 164 82 surveyed think that their
No 36 18 money is secured in
Total 200 100
Insurance(47%) and
37% people think that
their money is Very
secured. 15% of the respondents feel that their money is Unsecured
and only 1% respondents feel that it is very unsecured.

20) Are you getting timely reminder of your

premium paying from your agents?
Objective: To check out the services provided by the Life Advisors,
once the policy has been issued.

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Interpretation:
From the survey conducted, 82% respondents agreed that they
are getting timely reminder for paying premium by agents and
only 18% did not agree to it.

Level of Frequenc Percenta

Satisfaction y ge

Excellent 16 8

Very Good 30 15 21) What is

Good 54 27
your overall
satisfaction
Satisfactory 64 32
level in
Poor 24 12 respect to
Very Poor 12 6 investment
Total 200 100 in ULIPS?
Objective: To see
how much is the client satisfied with the investment in ULIPS

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Interpretation:
Overall, it seems that people are quite satisfied with their investment
in ULIPS; only a small number of people seem to be dissatisfied with
ULIPS.

CHAPTER 5: FINDINGS &

SUMMARY

FINDINGS

➢ The young investors generally prefer putting their investments

into Equity and Equity Based Instruments.
➢ The Investors with above the age of 46 prefer a safer investment
avenue as compared to the young investors.
➢ Business class people are seems to be more indulged towards
Real Estate and Commodities, however the salaried class are
more indulged towards Mutual Fund, PPF, Direct Stocks Etc.
➢ Majority of the Income group are between 1 to 5 Lacs or 5 to 7
lacs, however as compared to the annual income, the investment
towards Insurance is too less.
➢ It was also observed that majority of investors included bank
Deposits in their investments portfolio.
➢ Despite Surat being a developed city, it was observed that
people still prefer to invest through govt backed companies like
LIC instead of going for the Pvt. Insurance Companies.
➢ Majority of the respondent preferred paying premium on
monthly basis, showing a clear indication that the salaried are
the one who put their investment into insurance.
➢ The most reliable source of information is Family and Friends.

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 ➢ One of the major reasons for buying an insurance policy is to
take the benefit of Income Tax under Sec 80C.

RECOMMENDATIONS

RECOMMENDATIONS:

➢ Women need to be more aware and should actively participate in the investment
process
➢ More transparency should be kept from the side of the Pvt insurance companies so
that people can start trusting them and invest with them.
➢ It is been said that higher the risk, higher the return. So one needs to convince the
people to start investing in different Equity Related Products (Specially ULIPS) so
that they can achieve a higher return in a short time span as compared to traditional
investments.
➢ Proper education regarding ULIPS should be spreaded across so that the common
man can be aware about ULIPS and its benefits
➢ Compared to the annual income, the amount invested in insurance is not adequate, so
the life advisors should explain people the concept of “human life value” (HLV) and
should convince them to take insurance of adequate amount as calculated by HLV.
➢ Still L.I.C dominates the market and people have more faith on it. So the private
companies like Kotak need to create confidence among masses regarding the private

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 players. They need to felt their presence in the market, so they must go for media
advertisement or any other way of publicity.
➢ During the survey I found that, Muslim community are not so much interested in
insurance sector, so some efforts need to be made to attract those people, provided
their religious sentiments should not be hurt.
➢ Study can be conducted on different topic like ULIPS Vs MUTUAL FUND, impact
of private insurance companies on people views, details study and pros and cons of
ULIPS plan with Traditional plan.

CONCLUSIONS

CONCLUSION:

➢ The money one earns is partly spent and the rest saved
for meeting future expenses. Instead of keeping the
savings idle one may like to use savings in order to
generate returns on it in the future.
➢ Thus we can conclude that the investors of Surat City are
very cautious about their future and make their
investments very carefully
➢ The various investment avenues available in the market
are known to majority of the customers
➢ The investors of Surat city are very far – sighted and so
they plan their future uncertainties beforehand only.

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 ➢ The investors are very reliable they pass on all the
positive and negative news to friends and relatives as the
graph suggested. Hence special care should be taken as
this mode can be very useful to develop the business.
➢ Insurance awareness is found in population of surat but
not exactly what is insurance.

CHAPTER 27. LIMITATION

• The basic limitation was time duration. Two months are not
enough to carry out a project on huge topic.
• According to IRDA rule no individual can have details of clients
dealing with particular company.
• Many a times it so happened that guide was busy and proper
information was not gathered.
• Staff use to quote everything is on website but in actual nothing
was there on site.

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BIBLIOGRAPHY

• WWW.GOOGLE.CO.IN
• WWW.IRDA.GOV.IN
• WWW.WIKIPEDIA.COM
• WWW.KOTAKLIFEINSURANCE.COM
• A BOOK THAT IS PRINTED FOR ADIVISOR NAMELY IC-
33 LIFE INSURANCE BOOK.
• WWW.FINWINONLINE.COM
• WWW.LICINDIA.COM
• EVEN I AM THANKFUL TO MRS SKRUTI VAIDYA WHO
PROVIDE ME THE INFORMATION OF LIFE INSURANCE
CORPORATION AND MR. PARITOSH DESAI WHO
PROVIDE ME THE DETAILS OF BAJAJ ALLIANCE
PERTANING TO CLAIMS SETTLEMENT PROCEDURE.

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ANNEXURE

Questionnaire

To study the “Awareness regarding Insurance and Investment in people and customers
thinking regarding the investment in ULIPS.”.

Name:

Contact No.:

1) Gender:

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 A) Male [ ]
B) Female [ ]

1) Age:

A) 18 – 30 [ ]

B) 31 – 45 [ ]

C) 46 – 59 [ ]

D) 60 & Above [ ]

3) Occupation:

A) Self Employed [ ]

B) Salaried [ ]

C) Professional [ ]

D) Businessman [ ]

4) Annual Income:

A) Less than 1,00,000 [ ]

B) 1,00,000 to 5,00,000 [ ]

C) 5,00,000 to 7,00,000 [ ]

D) above 7,00,000 [ ]

5) Do you have any idea about Investment?

[ ] Yes [ ] No [ ] Can’t say

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6) If yes, then in which sector are you investing, rank them

Chronologically?

[ ] Insurance [ ] Mutual Funds

[ ] Equity [ ] Fixed Deposits

[ ] Commodities [ ] Real Estate

[ ] PPF [ ] Others

7) Kindly mention proportion of investment that you are

investing in

different sectors? (In %)

[ ] Insurance [ ] Mutual Funds

[ ] Equity [ ] Fixed Deposits

[ ] Commodities [ ] Real Estate

[ ] PPF [ ] Others

8) Do you have about Life Insurance?

[ ] Yes [ ] No

9) IF yes, than have you invested in Life Insurance Products?

[ ] yes [ ] no

10) Which plan in Insurance do you mostly prefer?

[ ] Traditional [ ] Safe investment plan

[ ] Endowment plan [ ] ULIP
[ ] Others ___________

11) What amount you pay for premium per year?

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 [ ] 5,000-10,000 [ ] 10,000-25,000
[ ] 25,000-75,000 [ ] 75,000 & above

12) Which reference group affects your decision in buying insurance

Policy?

[ ] Friends [ ] Insurance agents

[ ] Relatives [ ] office group

13)Do you have any idea about Private Life Insurance

Companies?

[ ] Yes [ ] No

14)Which company’s Life Insurance Policy do you have?

[ ] LIC [ ] ICICI Pru [ ] Birla Sun Life

[ ] Max Newyork [ ] Bajaj Allianz [ ] Kotak Life Insurance
[ ] Tata AIG [ ] Reliance [ ] HDFC Standard Life
Mention others, if any :

15) Do you have any idea about Kotak Life Insurance Company?

[ ] Yes [ ] No

16)Rank the factors which affect your investment from 1 to 3 in respect with 1 as
highest and 3 as the lowest?

[ ] Reputation of the company

[ ] Knowledge and behavior of the representatives
[ ] Aggressive Marketing

17) What is your objective behind purchasing this Insurance policy?

[ ] Tax benefit
[ ] Provision for higher studies
[ ] Investment
[ ] Retirement Planning
[ ] Repayment of loan
[ ] Protection for marriage expenses
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18) Which is your preferred mode or time period for paying
premium amount?

[ ] Monthly [ ] Quarterly
[ ] Half-yearly [ ] Yearly

19) What do you think, is your money secured in Insurance (ULIPS)?

[ ] Very secured [ ] Secured

[ ] Unsecured [ ] Very unsecured

20) Are you getting timely reminder of your premium paying from your agents?

[ ] Yes [ ] No

21) What is your overall satisfaction level in respect to investment in ULIPS?

[ ] Excellent
[ ] Very Good
[ ] Good
[ ] satisfactory
[ ] poor
[ ] very poor

Thank You

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