SUMMER TRAINING PROJECT REPORT

ON

“ANALYSIS OF CUSTOMER SATISFACTION OF TATA AIG’S PRODUCTS & SERVICES”

CARRIED ON AT

(TATA AIG LIFE INSURANCE COMPANY)

SYNOPSIS

SUBMITTED IN

PARTIAL FULFILLMENT OF

BACHELOR OF BUSINESS MANAGEMENT

TO

‘INTERNATIONAL COLLEGE FOR GIRLS’

SUPERVISED BY: SUBMITTED BY:

DR.POONAM MADAN MS.ANITA SINGHAL

(HEAD OF MANAGEMENT STUDIES BBM (SEM-V)

DEPARTMENT) ICG/2008/8236

ROLL NO.-81000
 TABLE OF CONTENTS

Table Of Contents
S.NO. TOPIC

1. Acknowledgement
2. Preface
3. Introduction
4. Company Profile
-Introduction to Company
-History
-Awards and Recognition
-Product and Services
5. Project Profile
-Market analysis of
company
-Products/Services
 Swot Analysis
6. Research Methodology
-Scope
-Objective
 ACKNOWLEDGEMENT

An endeavor to transform itself into success needs efforts. These efforts are
individual,standing in isolation. Such individual efforts require 3things for their further
development.These 3 things being-“reason,rationality and self-esteem.”The combination
of these 3 basic traits delivers productivity. However time and again this productivity
requires encouragement and guidance. This much requisite support comes in the form
of individuals furthering in development of amateurs. This acknowledgement is an effort
to recognize these professionals who have made this project a combination of the 3
fundamentals.

This project report and the learning process behind it would not have been
possible without the manager of ‘TATA AIG Ltd.’of India who introduced me to the
marketing strategies of insurance and what goes behind it and under whose able
guidance and leadership I was able to enhance my marketing knowledge as well as my
inter-personal skills . He imparted me with the right approach that my training required
for its successful implementation.

I also avail the opportunity for expressing my deep gratitude to the

senior manager of ‘TATA AIG Group’(Divisional branch) for his able guidance and
valuable suggestions during the course of completion of the project work. It will not be
out of place to mention my deep and sincere gratitude to the entire staff of the company
lead by the senior divisional manager who had cooperated with me through out my
training period. I also wish to place on record my gratitude to Dr.Poonam Madan(Head
of management studies department) which inspired me to take up this ambitious project.
PREFACE
 INTRODUCTION TO INSURANCE

Life Insurance is the only tool to secure our life in future. It also provide a safe guard to
the uncertainity of our life. Life insurance is the cheapest investment tool in which we
can earn more in a short time. “Insurance may be defined as a social device providing
financial compensation for the effect of misfortune,the payment being made from the
accumulated contribution of all the parties participating in the scheme” – D.S Hansell.

The function of insurance is to protect you against

loses you cannot afford. Insurance reduces anxiety of a possible loss and absorbs the
financial brunt of its consequences. India has traditionally been a high savings oriented
country being on par with the thrifty Japan. In sector in the United States of America is
as big in size as the banking industry there. This gives us a notion of how important the
sector is. In India where infrastructure is said 2 be of critical importance,this sector will
bring the nation’s own money for the nation.

Once Frank.H.Knight said “Risk is uncertainity and

uncertainity is one of the fundamental fact of life.” Insurance is the modern method by
which men make the uncertainity certain and the unequal,equal. It is the means by
which success is almost guranteed. Through its operation,the strong contribute to the
support of the weak and weak secure,not by favour sent by right duly purchased and
paid for,the support of the strong.

Under a plan of insurance,a large number of people

associate themselves by sharing risks attached to individuals. As in private life,in
business also there are dangers and risks of different kinds. The aim of all type of
insurance is to make provision against such dangers. Thus,collective bearing of risks is
 HISTORY

The story of insurance is probably as old as the story of mankind. The same instinct that
prompts modern businessman today to secure themselves against loss and disaster
existed in primitive men also. They to 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 LI started by Europeans in ‘Calcutta’ was the first insurance on
Indian soil. 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.

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
parliament of India passed the life Insurance Corporation act on the 19 th 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.
 AWARDS AND RECOGNITION OF TATA AIG CO.

Brand Equity Most Trusted Brand 2009 Top in Insurance Category

 PRODUCTS & SERVICES

INSURANCE PLAN:-

1. Children Plans:
 Jeevan kishore
 Jeevan anurag
 Komal Jeevan
 Child future plan

2. Endowment Assurance Plans:

 Jeevan Aanand
 New janraksha plan

3. Wholelife Plans:
 The whole life policy
 Jeevan anand
 Jeevan tarang

4. Term Insurance Plans:

 2Yr. temporary assurance policy
 The convertible term assurance policy
 Amulya Jeevan

5. Joint Life Plan:

 Jeevan Saathi
 UNIT PLANS:-
 Jeevan Plus
 BIMA Plus
 Market Plus
 Money Plus

SPECIAL PLANS:-
 Golden Jubilee Plans:
 Bima Gold
 New Bima gold

 Special Plans:
Group Schemes :- Group Insurance scheme is life insurance protection to groups of
people. This scheme is ideal for employees, associations, societies etc.and allows you
to enjoy group benefits at really low costs.

GROUP SCHEMES
 Group Schemes:-
 Group Term Insurance Scheme
 Group Insurance Schemes in lieu of EDLI
 Group Gratuity Scheme
 Group Super Annuation Scheme
 Group Savings Linked Insurance Scheme
 Group Mortgage Redemption Assurance Scheme

 Social Security Schemes :-

 Janashree Bima Yojana
 WHY INSURANCE
We need insurance because the need for income continues for those who are
financially dependent on us,but there is no gurantee of our ability to earn consistency
and for the rest of our life, insurance can help us safe guard the financial needs of our
family.

Following Are The reason:-

1. Replacement of income
2. Life style maintenance
3. Retirement expenses
4. Cost of education
5. Mortagage and debt protection
6. Hardships protection

Characteristics of Insurance:-
 Insurance is a cooperative device to share the burden of risk which may fall on
happening of some unforseen events,such as death of head of the family or on
the happening of marine perils or loss by fire.
 It is a cooperative form of distributing a certain risk over a group of persons who
are exposed to it.
 On the happening of specified event,the insurance company is bound to make
payment to the insured.
 The amount of payment in indemnity insurance depends on the nature of losses
occurred,subject to a maximum of the sum insured.
 Insurance is not a Gambling.
 It is not a charity too.
 Insurance is a plan of social welfare and protection of interests of people.
 Insurance is a contract based on good faith between the parties.
 Insurance is a legal contract between the insurer and the insured under which
the insurer promises to compensate the insured financially within the scope of
 Why is it superior to other forms of savings?

 Protection: Savings through ‘life insurance’ guarantee financial protection

against risk of death of the policy holder.

 Aid to thrift: Life insurance encourages ‘thrift’. Long term savings can be
made in a relatively ‘painless’ manner because of the ‘easy instalment’ facility.

 Liquidity: Loans can be raised on endoument type and whole life policies as
per policy conditions on the sole security of a policy which has acquired a paid-
up value.

 Tax Relief: Tax relief in income tax is available for amounts paid by way of
premium for life insurance subject to the income tax rules in force.

 Money When You Need It: A suitable insurance plan or a combination of

different plans can be taken to meet specific needs that are likely to arise in
future, such as- Children’s education, Start-in-life or Marriage provision or even
periodical needs for cash over a predetermined stretch of time.
 SWOT ANALYSIS
The Insurance industry has been in existence for so long in India. After the year 2000,
government allowed private players in insurance industry. Naturally, ‘TATA AIG LIFE’
acquired some strength and but there are some short comings also. There is also some
opportunities and threats for ‘TATA AIG Life insurance’ company. The detailed SWOT
Analysis is in following:-

 STRENGTHS :
 TATA AIG have relation with customers since long time and have a very good
brand image in the mind of around 2 million customers, also in point of view trust
and service.
 The prices of some popular TATA AIG products are less compare to its other
competitors.
 The agent and advisor of the company are its major strength due to their
professional approach and the consultancy and service they give to the
customers.

 WEAKNESSES:
 The policies are designed in such a way to cater the needs of middle class and
higher class people only. So the needs of other people remain unfulfilled by the
company.
 Still TATA AIG life insurance has not shown its presence in rural market of India.
 Not a very aggressive marketing strategy that was adapted by major of the
private players, the company dosen’t go for the advertisements on media.

 OPPORTUNITIES:
 At present there is around 23% insurable population in India, there is huge
untapped market for ‘TATA AIG’ life insurance.
 Total insurable population is more than 300 million and only 60 to 80 millions
have insurance and that also cover only 25% of their needs.
 The government is educating the customers through advertisements in form of
documentaries to go for private life insurance companies also.
 The rise in the concept of the ULIP in the people’s mind. The need of getting
 RESEARCH METHDOLOGY

SCOPE:
The wide scope of research is very dynamic and it covers the vast knowledge
which includes search of new facts and observations. In this synopsis I have
covered the scope related to the growing demand of TATA AIG Co. which works
for insurance sector. The new protection, saving, retirement policies that works
well for the common public. TATA AIG is the old name in this industry hence the
range is wide and extravagant. Scope defines the systematized effort to gain new
knowledge and to get the desired result.

OBJECTIVE:
The objective is exploratory in nature. Which says that how can we see the
increasing value of Life insurance.The formulation of research problem is this
only. To cover the objective, from the whole population sample are taken and a
framed questionnaire is there which helps in knowing the basic framework of
individuals what their view is and how much they prefer this policy.

HYPOTHESIS: The assumption which we make for any study.

 NULL HYPOTHESIS(Ho):- The Statement which says that there is no

significant difference between the Sample statistics and Population
parameter. It needs to be rejected to accept Alternative one.

Here the Null Hypotheses(Ho) is that the customers are not satisfied with
TATA AIG’s products & policies.

 ALTERNAIVE HYPOTHESIS(H1):-This statement says that there is the

significant difference between the Sample statistics and Population
parameter.

Here the Alternative hypotheses(H1) is that the customers are best satisfied with
TATA AIG’s products & policies given to them.
 Review Of Literature

A Literature Review is a body of text that aims to review the critical points of current
knowledge including substantive findings as well as theoretical and methodological
contributions to a particular topic. Literature reviews are secondary sources, and as
such, do not report any new or original experimental work.

Most often associated with academic-

oriented literature, such as ‘theses’, a literature review usually precedes a research
proposal and results section. Its ultimate goal is to bring the reader up to date with
current literature on a topic and forms the basis for another goal, such as future
research that may be needed in the area.

A well structured literature review is characterized

by a logical flow of ideas, current and relevant references with consistent, appropriate,
referencing style, proper use of terminology, and an unbiased and comprehensive view
of the previous research on the topic.
 NAME OF ARTICLE:-‘FEATURES OF TATA AIG CO’

MR.NAVEEN JAIN HAS ANALYSED THE WHOLE ARTICLE BY KEEPING ALL THE
VARIED POINTS IN MIND.

According to my view, you may not find Electricity or Drinking Water in the
remotest part of India, but you will surely find an insurance Agent. So famous is
insurance that even well educated

People associate the term Life Insurance with TATA AIG Co. So if they have to
buy life insurance, they will say "Mujhe Life insurance karvana hai". Such a
powerful brand is insurance.

Let me make it clear that I am a of employee of TATA AIG Co. and having the idea
of all goods and bads of that corporation

I wish to make a note of the Positive side of TATA AIG as well as Negative side of
TATA AIG. I encourage other readers to correct me if I am wrong and also add
light to any point that I may have missed.

First lets talk about the Positive side of TATA AIG:

1. TATA AIG is not owned by the government but it is company

besides the PPF that has the sovereign guarantee of the govt. of
India.  It is a different story that today LI has become so powerful
that the govt. leans on LI every time that the Stock Market
crashes. Imagine having an Asset base of over Rs 6 Lac Crore. .
That’s a 14 digit number!  No company in India can boast of such
figures. Mind boggling.

2. TATA AIG is the Company,making profits. Most of the Private

Insurers including the self proclaimed market leaders like ICICI
and Bajaj Allianz are booking heavy losses. Check IRDA website
in the Annual Report column. The point is that if an insurance
company makes losses year over year, then how will they manage
to pay the Claim amount? After all no Insurance company is here
to do charity business.

3. When it comes to paying claims, again TATA AIG is in the top

list numbers with the claims settlement ratio of more than 99%.
Other Private Insurers cannot match TATA’s ability on claims
settlement. Again, please visit IrDA’s website to see the claims
settlement performance of various companies.

4. TATA has the world’s largest sales force, yes over 10 lac
agents and now universities in western countries are trying to
study how a company managed to appoint such a large sales
force. A sales force of over 1 million! Truly a remarkable
achievement.

5. Many people argue that TATA AIG has not been able to
penetrate the market as it has insured only 15% of the population.
My point is, in a poor country like India where there are so many
people living below the poverty line, so many people who die of
starvation, so many people who don’t have access to basic
medication, so many people who don’t have basic necessities of
life like food, shelter, education and clothing. Will such a person
first feed his children or buy Insurance? Let’s not forget that a
majority of the Indian population is poor and a substantial
percentage is living below the poverty line. At a personal level i
feel that TATA AIG has done a satisfactory job of insuring people.
 RESEARCH DESIGN AND INSTRUMENT

The formidable problem that follows the task of defining the research problem is the
preparation of the design of the research project, popularly known as the “research
design”. This design is the arrangement of conditions for collection and analysis of data
in a manner that aims to combine relevance to the research purpose with economy in
procedure. It includes the outline of what the researcher will do from writing the
hypothesis.

A good design is often characterized by adjectives like flexible, appropriate, efficient,

and economical and so on. Following factors are been considered:

 The means of obtaining information.

 The availability and skills of the researcher
 The objective of the problem to be studied.
 The availability of time and money.

The instrument that has been used is:

For the design is questionnaire that shows the pattern of response the individual make
for the questions that has been framed. Each question mainly focuses on the customer
satisfaction through the TATA AIG’s services. This could be said like survey also.

This has been done with those who have some knowledge regarding that policies,
rewards etc. A set of questions was there which covers all the points and different idea.

Through this design and used instrument, it is easy for me to held the survey done on
‘customer satisfaction’ of TATA AIG’s customers.
 SAMPLING TECHNIQUE
This technique has been defined as the procedure that researcher would
accept or adopt in selecting items for the sample. This is done before the
data is been collected. Some steps followed are:

1. Type of universe-The whole set of objects and infinite values.

2. Sampling unit—Taken as geographical one, state, house, flat etc.

3. Source list-Reliable comprehensive list required.

4. Size sample-The size should be neither long nor short. Number of

sample is equal to 20.

5. Parameters of interest- Knowing the proportion of persons their

characteristics.

6. Budgetary constraint-Cost is the deciding factor.

7. Sampling procedure-The most imp thing which technique to be used.

(In this I have taken ‘Simple Random Sampling’)

In this sampling we must make sure that in successive drawings each of

the remaining elements of the population has the same chance of being
selected. The probability will also be same for the sample.

1. No biasness will be there.

2. Each sample getting equal chance
3. The nature will be very random.
4. The individual are taken of suitable age and those who prefer insurance
policies.
5. This form is also based on systematic sampling.
(where randomly the first person is selected than equivalently the
followers.)
 DATA COLLECTION

The task of data collection begins after a research problem has been defined and
design been made. the data is need to be considered as the primary data and the
secondary data.

Primary data-The raw data which will be collected at the spot and time which is not
copied from anywhere else. It has its own nature, content.

Secondary data-Those data which has already been collected by someone and which
has been passed through some process.

The methods of collecting primary and secondary data differ as the primary one focuses
on the prime data collection while secondary one the main work is that of compilation.

Collection Of Data Through Questionnaires:

This method of data collection is quite popular, particularly in case of big comparison,
enquiry etc .it is being adopted by private individuals, research workers, and private
public organizations and even by government. A questionnaire consists of a number of
questions printed or typed in a definite order on a form or set of forms. It is the heart
survey operation .hence it should be very carefully constructed. If it is not properly set
up then the survey is bound to fail. The fact requires us to study the main aspects of a
questionnaire viz. the general form, question sequence and question formulation and
wording.
 BIBLIOGRAPHY

WEB REFERENCE:-
 WWW.GOOGLE.COM

 WWW.WIKIPEDIA.COM

 WWW.TATAAIG.COM

NEWSPAPERS & MAGAZINES:-

 “THE TIMES OF INDIA” (Page No.3, article no. 34.)

 Magazines:- INDIA TODAY, THE WEEK ETC.

BOOK REFERENCE:-
 “RESEARCH METHDOLOGY” book by C.R KOTHARI.
 “INSURANCE WORLD” book by J.THOMAS.

OTHERS:-

 The training in TATA AIG Co.greatly helped.

 Agents and workmen in the company helped me in knowing all things better.
 QUESTIONNAIRE
NAME-

AGE-

SEX-

ADDRESS-

Q1. WHAT IS THE OCCUPATION OF THE POLICY HOLDER?

1. PRIVATE JOB

2. GOVERNMENT JOB

3. OWN BUSINESS

4. SPECIFIC SECTOR.

Q2.WHICH COMPANY IS BETTER ACCORDING TO YOU?

1. TATA AIG

2. ING VYSYA

3. BAJAJ ALLIANZ

Q3.WHAT IS THE MONTHLY INCOME SLAB OF THE POLICY HOLDER?

1. ABOVE 50,000

2. ABOVE 80,000

3. ABOVE 1, 50,000
Q4.HOW YOU GET TO KNOW ABOUT THESE INSURANCE?

1. NEWSPAPER

2. ADVERTISMENT

3. AGENTS

4. CATALOGUE

Q5.FROM HOW LONG YOU ARE GIVING PREFERENCE TO INSURANCE

POLICIES?

(MENTION TIME PERIOD ACC.TO YOU)

Q6. REASONS FOR TAKING LIFE INSURANCE POLICIES?

1. RISK FACTOR

2. INVESTMENT

3. TAX PURPOSE

4. PENSION

Q7.WHICH TYPE OF INSURANCE POLICY DO YOU HOLD?

1. TERM PLAN

2. ENDOWMENT

3. WHOLE LIFE

4. PENSION

Q8.HOW FREQUENTLY DO YOU PAY THE PREMIUM?

1. MONTHLY

2. QUATERLY
3. HALF YEARLY

4. ANNUALLY

Q9.DO YOU THINK ‘TATA AIG’ IS SATISFYING IT’S CUSTOMERS THROUGH ITS
BEST SERVICES AND POLICIES?

1. YES
2. NO

Q10.IS INSURANCE SECTOR HELPING YOU IN BETTER GROWTH?

1. YES

2. NO