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A GRAND PROJECT REPORT ON Potential of Life Insurance in Ahmedabad At A Project Report

A

GRAND PROJECT REPORT

ON

Potential of Life Insurance in Ahmedabad

At

REPORT ON Potential of Life Insurance in Ahmedabad At A Project Report Submitted In Partial Fulfillment
REPORT ON Potential of Life Insurance in Ahmedabad At A Project Report Submitted In Partial Fulfillment

A Project Report Submitted In Partial Fulfillment of MBA Degree

Under The Project Guidance of

Mr. SMITH MEHTA

Roll No

:

Submitted By: - JAGDISH J GONDALIYA -

520842696

Submitted To:-

IDEA Institute of Management & Technology

Ahmedabad-1535

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CONTENTS PARTISULARS Page No. Acknowledgement Executive Summary 4 5 Introduction (7-24)  

CONTENTS

PARTISULARS

Page No.

Acknowledgement Executive Summary

4

5

Introduction

(7-24)

 

Introduction of the Industry

Life Insurance

7

Function of insurance

10

 

13

 

Players in Indian insurance industry

Seven p’s of insurance industry

Various types of Life Insurance Policies

16

23

Introduction of the Company

25

Company Profile

27

Vision and mission

28

Values

29

Management

30

partners

32

Insurance Plans/Products

50

S.W.O.T analysis

Research Methodology

(54-59)

Objective

55

Scope of study

56

Sampling Methodology

57

Limitations

59

Survey

(60-81)

Graph Analysis & Data Interpretation

61

Findings & recommendations

(82-84)

Findings & Recommendations

82

Growth Potential

83

Conclusion

84

Bibliography

(85)

2

Annexure (86-87) ∑ Questionnaire 87 LIST OF GRAPHS Particulars Page No. [Fig 1] No of

Annexure

(86-87)

Questionnaire

87

LIST OF GRAPHS

Particulars

Page

No.

[Fig 1] No of People Having Insurance

61

[Fig 2] Types of Insurance Policy Respondents Have

62

[Fig 3] Preferance of Respondents of Insurance Co’s

63

[Fig 4] Benefits of Insurance Perceived by Respondents

64

[Fig 5] Features of Insurance Policy That Attracted Respondents

65

[Fig 6] Peoples Perception About Insurance

66

[Fig 7] Persons Having Insurance For

67

[Fig 8] Reasons Behind Taking Insurance Policies

68

[Fig 9] Satisfaction of Respondents With Respect to Policies

69

[Fig 10] Satisfaction of Respondents With Respect to Agents

70

[Fig 11] No of Respondents Paying Tax

71

[Fig 12] Respondents Perception About Best Form of Investment

72

[Fig 13] People’s Perception of Appropriate Age For Buying Insurance

73

[Fig 14] Peoples Opinion About Insurance Companies in India

74

[Fig 15] What People Look For in Insurance Companies

76

[Fig 16] People Interested In Going For Insurance Away From Their City

77

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[Fig 17] People Planning For New Investment 78 ACKNOWLEDGEMENT I am thankful to MetLife India

[Fig 17] People Planning For New Investment

78

ACKNOWLEDGEMENT

I am thankful to MetLife India Insurance Co. Ltd. for providing me an opportunity to undertake project in their esteemed organization. I would like to special thanks to my project manager Mr. Smeet Mehta (Sales Manager) and Mr sarvin Dalal (Agency manager) at MetLife India Insurance Co. Ltd,Ahmadabad. who helped me throughout the project and also encouraged me to take this project in future course for my career. I am also thankful to all the staff members of MetLife India Insurance Co. Ltd to make my project successful.

I am also thankful to Pro. Arnash mem (faculty members) for providing me guidance in preparing my project report.

Last but not the least I am thankful to my parents and god for helping me a

Lot.

.

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JAGDISH J GONDALIYA. EXECUTIVE SUMMARY In today’s corporate and competitive world, I find that insurance

JAGDISH J GONDALIYA.

EXECUTIVE SUMMARY

In today’s corporate and competitive world, I find that insurance sector has the maximum growth and potential as compared to the other sectors. Insurance has the maximum growth rate of 70-80% while as FMCG sector has maximum 12-15% of growth rate. This growth potential attracts me to enter in this sector and MET LIFE INDIA INSURANCE CO. LTD. has given me the opportunity to work and get experience in highly competitive and enhancing sector.

The success story of good market share of different organizations depends upon the availability of the product and services near to the customer, which can be distributed through a distribution channel. In Insurance sector, distribution channel includes only agents or agency holders of the company. If a company like MET LIFE INDIA INSURANCE CO. LTD, MAX NEW YORK LIFE, BAJAJ ALLIANZ, TATA AIG, etc has adequate agents in the market they can capture big market as compared to the other companies.

Agents are the best way for a company of Insurance sector through which policies and benefits of the company can be explained to the customer.

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INTRODUCTION  Introduction of the Industry  Players in Indian insurance industry  7ps of
INTRODUCTION  Introduction of the Industry  Players in Indian insurance industry  7ps of
INTRODUCTION
 Introduction of the Industry
 Players in Indian insurance industry
 7ps of Insurance industry
 Introduction of the Company
Company Profile
Vision and mission
Core value
Management
Insurance Plans

6

THE HISTORY OF INDIAN INSURANCE INDUSTRY The story of insurance is probably as old as

THE HISTORY OF INDIAN INSURANCE INDUSTRY

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 1818 the British established the first insurance company in India in Calcutta, the Oriental Life Insurance Company. First attempts at regulation of the industry were made with the introduction of the Indian Life Assurance Companies Act in 1912. A

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number of amendments to this Act were made until the Insurance Act was drawn up

number of amendments to this Act were made until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were the power given to the Government to collect statistical information about the insured and the high level of protection the Act gave to the public through regulation and control. When the Act was changed in 1950, this meant far reaching changes in the industry. The extra requirements included a statutory requirement of a certain level of equity capital, a ceiling on share holdings in such companies to prevent dominant control (to protect the public from any adversarial policies from one single party), stricter control on investments and, generally, much tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance companies. Business was heavily concentrated in urban areas and targeted the higher echelons of society. “Unethical practices adopted by some of the players against the interests of the consumers” then led the Indian government to nationalize the industry. In September 1956, nationalization was completed, merging all these companies into the so-called Life Insurance Corporation (LIC). It was felt that “nationalization has lent the industry fairness, solidity, growth and reach.”

Insurance may be described as a social device to ensure protection of

economic value of life and other assets. Under the plan of insurance, a

large number of people associate themselves by sharing risks attached to

individuals. The risks, which can be insured against, include fire, the perils

of sea, death and accidents and burglary. Any risk contingent upon these,

may be insured against at a premium commensurate with the risk involved.

Thus collective bearing of risk is insurance.

Insurance is a contract whereby, in return for the payment of premium by

the insured, the insurers pay the financial losses suffered by the insured as

a result of the occurrence of unforeseen events. The term "risk" is used to

describe the possibility of adverse results flowing from any occurrence or

the accidental happenings, which produce a monetary loss.

Insurance is a pool in which a large number of people exposed to a similar

risk make contributions to a common fund out of which the losses suffered

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by the unfortunate few, due to accidental events, are made good. The sharing of risk

by the unfortunate few, due to accidental events, are made good. The sharing of risk among large groups of people is the basis of insurance. The losses of an individual are distributed over a group of individuals.

Definitions:

General definition:

In the words of John Magee, “Insurance is a plan by themselves which large number of people associate and transfer to the shoulders of all, risks that attach to individuals.”

Fundamental definition:

In the words of D.S. Hansell, “Insurance accumulated contributions of all parties participating in the scheme.”

Contractual definition: In the words of justice Tindall, “ Insurance is a contract in which a sum of money is paid to the assured as consideration of insurer’s incurring the risk of paying a large sum upon a given contingency.”

Characteristics of insurance

Sharing of risks

Cooperative device

Evaluation of risk

Payment on happening of a special event

The amount of payment depends on the nature of losses incurred.

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∑ The success of insurance business depends on the large number of people insured against

The success of insurance business depends on the large number of people insured against similar risk.

Insurance is a plan, which spreads the risk and losses of few people among a large number of people.

The insurance is a plan in which the insured transfers his risk on the insurer.

Insurance is a legal contract which is based upon certain principles of insurance which includes, utmost good faith, insurable interest, contribution, indemnity, causas proxima, subrogation, etc.

The scope of insurance is much wider and extensive.

Functions of insurance:

Primary functions:

1. Provide protection:- Insurance cannot check the happening of the risk, but can provide for the losses of risk.

2. Collective bearing of risk: - Insurance is a device to share the financial losses of few among many others.

3. Assessment of risk: - Insurance determines the probable volume of risk by evaluating various factors that give rise to risk.

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4. Provide certainty: - Insurance is a device, which helps to change from uncertainty to

4. Provide certainty: - Insurance is a device, which helps to change from uncertainty to certainty.

Secondary functions:

1. Prevention of losses: - Insurance cautions businessman and individuals to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions.

2. Small capital to cover large risks: - Insurance relives the businessman from security investment, by paying small amount of insurance against larger risks and uncertainty.

3. Contributes towards development of larger industries.

Other Function:

Means of savings and investment:

Insurance companies are business houses. The product they sell is financial protection. To succeed and survive, they must cover their costs, which

include payments to cover the losses of policyholders, as well as sales and administrative expenses, taxes and dividends.

Insurance companies have two sources of income for covering these costs: premiums and investment income. The premiums are collected on a regular basis and invested in Government Bonds, Gilt, stocks, mutual funds, real estates and other conservative avenues. However, investment income depends on market conditions, interest rates, economy etc. and varies from year to year. Because of the uncertainty associated with the

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investment income, insurance companies must generate enough income from premiums to cover the bulk of

investment income, insurance companies must generate enough income

from premiums to cover the bulk of their expenses.

Some of the important milestones in the life insurance business in India are:

1818 : Oriental Life Insurance Company, the first life insurance company on

Indian soil started functioning.

1870 : Bombay Mutual Life Assurance Society, the first Indian life 'Insurance

company started 'Its business,

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 pubic.

1956 : 245 Indian and foreign insurance and provident societies are taken over by

the central government and nationalized. LIC formed by an Act of Parliament, viz.

LIC Act, 1956, with a capital contribution of Rs. 5 chores from the Government of

India.

Liberalization of Indian Insurance

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1994: Insurance sector invited private participation to induce a spirit of competition

1994:

Insurance

sector

invited

private

participation

to

induce

a

spirit

of

competition

amongst

the

various

insurers

and.

to

provide

a

choice

to

the

consumers.

1997: Insurance regulator IRDA was set up as there felt the Feed:

To set up an independent regulatory body, that provides greater autonomy to insurance companies in order to improve their performance, In the first year of insurance market liberalization (2001) as much as 16 private sector companies including joint ventures with leading foreign insurance companies have entered the Indian insurance sector. Of this, 10 were under the life insurance category and six under general insurance. Thus in all there are 25 players (12-life insurance and l3- general insurance) in the Indian insurance industry till date.

PLAYERS IN INDIAN INSURANCE INDUSTRY

6.1 LIFE INSURERS

Insurance industry, as on 1.4.2000, comprised mainly two players: the state

insurers:

Life Insurance Corporation of India (LIC)

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6.2 GENERAL INSURERS: ∑ General Insurance Corporation of India (GIC) Dec'2000, a National Reinsure) (with

6.2 GENERAL INSURERS:

General Insurance Corporation of India (GIC) Dec'2000, a National Reinsure)

(with effect from

GIC had four subsidiary companies, namely ( with effect from Dec'2000, these subsidaries have been de-linked from the parent company and made as independent insurance companies.

1. The Oriental Insurance Company Limited

2. The New India Assurance Company Limited,

3. National Insurance Company Limited

4. United India Insurance Company Limited.

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Yr: 2000-2007 : Insurance Industry in the year 2000-2001 had 15 new entrants, namely: Life

Yr: 2000-2007: Insurance Industry in the year 2000-2001 had 15 new entrants, namely:

Life Insurers:

S.No.

Name of the Company

1

Max New York Life Insurance Co. Ltd.

2

HDFC Standard Life Insurance Company Ltd.

3

ICICI Prudential Life Insurance Company Ltd.

4

Om Kotak Mahindra Life Insurance Co. Ltd.

5

Birla Sun Life Insurance Company Ltd.

6

Tata AIG Life Insurance Company Ltd.

7

SBI Life Insurance Company Limited

8

ING Vysya Life Insurance Company Private Limited

9

Allianz Bajaj Life Insurance Company Ltd.

10

Metlife India Insurance Company Pvt. Ltd.

11

Reliance Life Insurance Company Ltd.

12

Shriram Life Insurance Company Ltd.

13

Sahara India Life Insurance Company Ltd.

14

Bharti AXA Life Insurance Company Ltd.

15

Aviva Life Insurance Company Ltd.

General Insurers:

S.No.

Name of the Company

15

1 Royal Sundaram Alliance Insurance Company Limited 2 Reliance General Insurance Company Limited. 3 IFFCO

1

Royal Sundaram Alliance Insurance Company Limited

2

Reliance General Insurance Company Limited.

3

IFFCO Tokio General Insurance Co. Ltd

4

TATA AIG General Insurance Company Ltd.

5

Bajaj Allianz General Insurance Company Limited

6

ICICI Lombard General Insurance Company Limited.

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SEVEN P’s OF INSURANCE SECTOR : Wherever there is uncertainty there is risk. We do

SEVEN P’s OF INSURANCE SECTOR:

SEVEN P’s OF INSURANCE SECTOR : Wherever there is uncertainty there is risk. We do not

Wherever there is uncertainty there is risk. We do not have any control over uncertainties which involves financial losses. The risks may be certain events like death, pension, retirement or uncertain events like theft, fire, accident, etc. Insurance is a financial service for collecting the savings of the public and providing them with risk coverage. The main function of Insurance is to provide protection against the possible chances of generating losses. It eliminates worries and miseries of losses by destruction of property and death. It also provides capital to the society as the funds accumulated were invested in productive heads. Insurance comes under the service sector and while marketing this service, due care is to be taken in quality product and customer satisfaction. While marketing the services, it is also pertinent that they think about the innovative promotional measures. It is not sufficient that you perform well but it is also important that you let others know about the quality of your

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positive contributions. The creativity in the promotional measures is the need of the hour. The

positive contributions. The creativity in the promotional measures is the need of the hour. The advertisement, public relations, word of mouth communication needs due

care and personal selling requires intensive care.

INSURANCE MARKETING: The term Insurance Marketing refers to the marketing of Insurance services with the aim to create customer and generate profit through

customer satisfaction. The Insurance Marketing focuses on the formulation of an ideal

mix for Insurance business so that the Insurance organisation survives and thrives in

the right perspective.

MARKETING --MIX FOR INSURANCE COMPANIES: The marketing mix is the combination of marketing activities that an organisation engages in so as to best meet the needs of its targeted market. The Insurance business deals in selling services and therefore due weight-age in the formation of marketing mix for the Insurance business is needed. The marketing mix includes sub-mixes of the 7 P's of marketing i.e. the product, its price, place, promotion, people, process & physical attraction. The above mentioned 7 P's can be used for marketing of Insurance products, in the following manner:

1.Product:

A product means what we produce. If we produce goods, it means tangible product

and when we produce or generate services, it means intangible service product. A

product is both what a seller has to sell and a buyer has to buy. Thus, an Insurance company sells services and therefore services are their product. In India, the Life Insurance Corporation of India (LIC) and the General Insurance Corporation (GIC) are the two leading companies offering insurance services to the users. Apart from offering life insurance policies, they also offer underwriting and consulting services. When a person or an organisation buys an Insurance policy from the insurance company, he not only buys a policy, but along with it the assistance and

advice of the agent, the prestige of the insurance company and the facilities of claims

and compensation. It is natural that the users expect a reasonable return for their

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investment and the insurance companies want to maximize their profitability. Hence, while deciding the product

investment and the insurance companies want to maximize their profitability. Hence, while deciding the product portfolio or the product-mix, the services or the schemes should be motivational. The Group Insurance scheme is required to be promoted, the Crop Insurance is required to be expanded and the new schemes and policies for the villagers or the rural population are to be included. The Life Insurance Corporation has intensified efforts to promote urban savings, but as far as rural savings are concerned, it is not that impressive. The introduction of Rural Career Agents Scheme has been found instrumental in inducing the rural prospects but the process is at infant stage and requires more professional excellence. The policy makers are required to activate the efforts. It would be prudent that the LIC is allowed to pursue a policy of direct investment for rural development. Investment in Government securities should be stopped and the investment should be channelized in private sector for maximizing profits. In short, the formulation of product-mix should be in the face of innovative product strategy. While initiating the innovative process it is necessary to take into consideration the strategies adopted by private and foreign insurance companies.

2.Pricing:

In the insurance business the pricing decisions are concerned with:

i) The premium charged against the policies,

ii) Interest charged for defaulting the payment of premium and credit facility, and iii) Commission charged for underwriting and consultancy activities. With a view of influencing the target market or prospects the formulation of pricing strategy becomes significant. In a developing country like India where the disposable income in the hands of prospects is low, the pricing decision also governs the transformation of potential policyholders into actual policyholders. The strategies may be high or low pricing keeping in view the level or standard of customers or the policyholders. The pricing in insurance is in the form of premium rates. The three main factors used for determining the premium rates under a life insurance plan are mortality, expense and interest. The premium rates are revised if there are any significant changes in any of

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these • Mortality (deaths in a particular area): When deciding upon the pricing strategy the

these

• Mortality (deaths in a particular area): When deciding upon the pricing strategy the

average rate of mortality is one of the main considerations. In a country like South Africa the threat to life is very important as it is played by host of diseases.

• Expenses: The cost of processing, commission to agents, reinsurance companies as

well as registration are all incorporated into the cost of installments and premium sum and forms the integral part of the pricing strategy

factors.

• Interest: The rate of interest is one of the major factors which determines people's

willingness to invest in insurance. People would not be willing to put their funds to invest in insurance business if the interest rates provided by the banks or other financial instruments are much greater than the perceived returns from the insurance premiums.

3.Place:

This component of the marketing mix is related to two important facets -- i) Managing the insurance personnel, and

ii) Locating a branch. The management of agents and insurance personnel is found significant with the viewpoint of maintaining the norms for offering the services. This is also to process the services to the end user in such a way that a gap between the services- promised and services -- offered is bridged over. In a majority of the service generating organizations, such a gap is found existent which has been instrumental in making worse the image problem. The transformation of potential policyholders to the actual policyholders is a difficult task that depends upon the professional excellence of the personnel. The agents and the rural career agents acting as a link, lack professionalism. The front-line staff and the branch managers also are found not assigning due weight-age to the degeneration process. The insurance personnel if not managed properly would make all efforts insensitive. Even if the policy makers make

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provision for the quality upgrading the promised services hardly reach to the end users. It

provision for the quality upgrading the promised services hardly reach to the end users. It is also essential that they have rural orientation and are well aware of the lifestyles of the prospects or users. They are required to be given adequate incentives to show their excellence. While recruiting agents, the branch managers need to prefer local persons and provide them training and conduct seminars. In addition to the agents, the front-line staff also needs an intensive training program to focus mainly on behavioral management. Another important dimension to the Place Mix is related to the location of the insurance branches. While locating branches, the branch manager needs to consider a number of factors, such as smooth accessibility, availability of infrastructural facilities and the management of branch offices and premises. In addition it is also significant to provide safety measures and also factors like office furnishing, civic amenities and facilities, parking facilities and interior office decoration should be given proper attention. Thus the place management of insurance branch offices needs a new vision, distinct approach and an innovative style. This is essential to make the work place conducive, attractive and proactive for the generation of efficiency among employees. The branch managers need professional excellence to make place decisions productive.

4. Promotion:

The insurance services depend on effective promotional measures. In a country like India, the rate of illiteracy is very high and the rural economy has dominance in the national economy. It is essential to have both personal and impersonal promotion strategies. In promoting insurance business, the agents and the rural career agents play an important role. Due attention should be given in selecting the promotional tools for agents and rural career agents and even for the branch managers and front line staff. They also have to be given proper training in order to create impulse buying. Advertising and Publicity, organisation of conferences and seminars, incentive to policyholders are impersonal communication. Arranging Kirtans, exhibitions, participation in fairs and festivals, rural wall paintings and publicity drive through the

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mobile publicity van units would be effective in creating the impulse buying and the rural

mobile publicity van units would be effective in creating the impulse buying and the rural prospects would be easily transformed into actual policyholders.

5. People:

Understanding the customer better allows to design appropriate products. Being a service industry which involves a high level of people interaction, it is very important to use this resource efficiently in order to satisfy customers. Training, development and strong relationships with intermediaries are the key areas to be kept under consideration. Training the employees, use of IT for efficiency, both at the staff and agent level, is one of the important areas to look into.

6. Process:

The process should be customer friendly in insurance industry. The speed and accuracy of payment is of great importance. The processing method should be easy and convenient to the customers. Installment schemes should be streamlined to cater to the ever growing demands of the customers. IT & Data Warehousing will smoothen the process flow. IT will help in servicing large no. of customers efficiently and bring down overheads. Technology can either complement or supplement the channels of distribution cost effectively. It can also help to improve customer service levels. The use of data warehousing management and mining will help to find out the profitability and potential of various customers product segments.

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7. Physical evidence : Distribution is a key determinant of success for all insurance companies.

7. Physical evidence:

Distribution is a key determinant of success for all insurance companies. Today, the nationalized insurers have a large reach and presence in India. Building a distribution network is very expensive and time consuming. If the insurers are willing to take advantage of India's large population and reach a profitable mass of customers, then new distribution avenues and alliances will be necessary. Initially insurance was looked upon as a complex product with a high advice and service component. Buyers prefer a face-to-face interaction and they place a high premium on brand names

and reliability. As the awareness increases, the product becomes simpler and they become off-the-shelf commodity products. Today, various intermediaries, not necessarily insurance companies, are selling insurance. For example, in UK, retailer like Marks & Spencer sells insurance products. The financial services industries have successfully used remote distribution channels such as telephone or internet so as to reach more customers, avoid intermediaries, bring down overheads and increase profitability. A good example is UK insurer Direct Line. It relied on telephone sales and low pricing. Today, it is one of

the

Technology will not replace a distribution network though it will offer advantages like better customer service. Finance companies and banks can emerge as an attractive distribution channel for insurance in India. In Netherlands, financial services firms provide an entire range of products including bank accounts, motor, home and life insurance and pensions. In France, half of the life insurance sales are made through banks. In India also, banks hope to maximize expensive existing networks by selling a range of products. It is anticipated that rather than formal ownership arrangements, a loose network of alliance between insurers and banks will emerge, popularly known as bancassurance. Another innovative distribution channel that could be used are the non-financial organisations. For an example, insurance for consumer items like fridge and TV can be offered at the point of sale. This increases the likelihood of insurance sales. Alliances with manufacturers or retailers of consumer goods will be possible and insurance can be one of the various incentives offered

largest

motor

insurance

operator.

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Various types of life insurance policies:- ∑ Endowment policies: This type of policy covers risk

Various types of life insurance policies:-

Endowment policies: This type of policy covers risk for a specified period, and at the end of the maturity sum assured is paid back to policyholder with the bonuses during the term of the policy.

Money back policies: This type of policy is for periodic payments of partial survival benefits during the term of the policy as long as the policy holder is alive.

Group insurance: This type of insurance offers life insurance protection under group policies to various groups such as employers-employees, professionals, co-operatives etc it also provides insurance coverage for people in certain approved occupations at the lowest possible premium cost.

Term life insurance policies: This type of insurance covers risk only during the selected term period. If the policy holder survives the term, risk cover comes to an end. These types of policies are for those people who are unable to pay larger premium required for endowment and whole life policies. No surrender, loan or paid up values are in such policies.

Whole life insurance policies: This type of policy runs as long as the policyholder is alive and is covered for the entire life of the policyholder. In this policy the insured amount and the bonus is payable only to nominee on the death of policy holder.

Joint life insurance policies: These policies are similar to endowment policies in maturity benefits and risk cover, but joint life policies cover two lives simultaneously such as married couples. Sum assured is payable on the first death and again on the death of survival during the term of the policy.

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∑ Pension plan: a pension plan or annuity is an investment over a certain number

Pension plan: a pension plan or annuity is an investment over a certain number of years but does not provide any life insurance cover. It offers a guaranteed income either for a life or certain period.

Unit linked insurance plan: ULIP is a kind of insurance plan which provides life cover as well as return on premium paid over a certain period of time. The investment is denoted as units and represented by the value called as net asset value (NAV).

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COMPANY PROFILE MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and

COMPANY PROFILE

COMPANY PROFILE MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and was

MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and was incorporated as a joint venture between MetLife International Holdings, Inc., The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors. MetLife is one of the fastest growing life insurance companies in the country. It serves its customers by offering a range of innovative products to individuals and group customers at more than 600 locations through its bank partners and company-owned offices. MetLife has more than 50,000 Financial Advisors, who help customers achieve peace of mind across the length and breadth of the country.

MetLife, Inc., through its affiliates, reaches more than 70 million customers in the Americas, Asia Pacific and Europe. Affiliated companies, outside of India, include the number one life insurer in the United States (based on life insurance enforce), with over 140 years of experience and relationships with more than 90 of the top one hundred FORTUNE 500® companies. The MetLife companies offer life insurance, annuities, automobile and home insurance, retail banking and other financial services to individuals, as well as group insurance, reinsurance and retirement and savings products and services to corporations and other institutions.

MetLife Inc.:-

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Celebrating 140 years, MetLife, Inc. is a leading provider of insurance and financial services with

Celebrating 140 years, MetLife, Inc. is a leading provider of insurance and financial services with operations throughout the United States and the Latin America, Europe, and Asia Pacific regions. Through its domestic and international subsidiaries and affiliates, MetLife, Inc. reaches more than 70 million customers around the world and MetLife is the largest life insurer in the United States (based on life insurance in-force).

The MetLife companies offer life insurance, annuities, auto and home insurance, retail banking and other financial services to individuals, as well as group insurance and retirement & savings products and services to corporations and other institutions.

FACT SHEET

FACT SHEET

Founded

2001

Started Operation

FY 2001-02

Headquarters

Bangalore, India

World Wide Web Address

www.metlife.co.in

Managing Director

Rajesh Relan

Employees

7688

Financial Advisors

56,072

Bancassurance Tie-Ups

5 (J&K Bank/Axis Bank/Dhanalakshmi Bank/Karnataka Bank/Barclays)

Number Of Products

Over 20 products

Presence Through MetLife Offices

192 offices in 131 cities

Presence Through Bank Partners

1910 offices in 686 cities

Through MetLife Offices 192 offices in 131 cities Presence Through Bank Partners 1910 offices in 686

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Vision and Mission Build financial freedom for all through leadership in providing financial advice and

Vision and Mission

Build financial freedom for all through leadership in providing financial advice and building long-term relationships through innovative protection, accumulation and retirement products, robust underwriting processes and creating world-class customer service experience for our customers

.

We want to provide customers in India with world-class solutions for financial security, and in the process add significant value to our shareholders, associates and society.

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Our Core Values ∑ We lead through Innovation to offer world class and competitive products

Our Core Values

We lead through Innovation to offer world class and competitive products to our customers

We build Long Term Relationships with our customers by creating a world class service experience through operational excellence and the innovative use of technology

We create a Customer Centered and Result Focused Vision that inspires each one of our Associates and has their buy-in

We are committed to creating a High Performance Organization by creating an environment that allows each one of our Associates to perform at their peak. As a result we will also be recognized as an Employer of Choice

We are committed to Partnering with our internal and external Customers for mutual success

We work with Integrity, Fairness and Financial Prudence in all our dealings keeping the interests of our Shareholders, Customers and Associates paramount

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∑ Rajesh Relan Managing Director ∑ MSVS Phanesh Murthy Appointed Actuary ∑ Shilpa Vaid Deputy

Rajesh Relan Managing Director

MSVS Phanesh Murthy Appointed Actuary

Shilpa Vaid Deputy Director- Human Resources

Gaurav Sharma Director - Customer Service and Operations

Girish Malhotra Director- Agency

KR Anil Kumar Director - Financial Planning & Controller

KS Raghavan Chief Administrative Officer

Preetinder Chadha Deputy Director - Corporate Sales & Training

P. S. Sankaran Director – Business Support

Sameer Bansal Director- BA & BP

Vijay Raghavan Director - Marketing & Strategy

30

Partners:- 31

Partners:-

Partners:- 31
Partners:- 31
Partners:- 31
Partners:- 31
Partners:- 31
Partners:- 31
Partners:- 31
Partners:- 31
Partners:- 31

31

Corporate Social Responsibility:- MetLife has always been committed to making a positive difference in the

Corporate Social Responsibility:-

MetLife has always been committed to making a positive difference in the lives of the individuals and communities. Today, that commitment drives volunteer work and philanthropy across the globe. Working with non-profit organizations, MetLife supports programs that provide young people with the skills they need to succeed in life and create opportunities for people of all ages.

MetLife’s core values are personal responsibility, people count, partnership, integrity and honesty, innovation and financial strength. These values also shape the responsibility to the communities where the organization conducts its business.

32

Child Plan :- Met Bhavishya MetLife offers 'Met Bhavishya' - a guaranteed money back plan
Child Plan :- Met Bhavishya MetLife offers 'Met Bhavishya' - a guaranteed money back plan

:-

MetLife offers 'Met Bhavishya' - a guaranteed money back plan that pays out funds to help to meet the education and career milestones of children. With this plan, the

Life Insured is that of the parent. The plan also has inbuilt guaranteed additions to

add

value

to

the

policy

over

its

term.

There are two options to choose from and fixed term benefits, periodic additions & terminal additions are payable based on the option that select. The policy is suitable for parents with children between the ages 0-12 and parents in the age group of 20-50 years old.

MetLife offers 'Met Junior'- a flexible endowment plan that combines savings and security. Children's well-being is our highest priority. So MetLife offer a plan which offers both timely and efficient return on investment. All with a guarantee.

Met Junior - Non Par

On attaining maturity, the Person Insured will receive the Sum Assured. Met Junior - Par On attaining maturity, the Person Insured will receive the Sum Assured, the Reversionary Bonus and the Terminal Bonus, if any.

When child is born, a star is born in family. And, parents would like to provide

their star with all the building blocks that could develop his or her potential to the fullest. This could mean special instruction sessions for talented children, unique training gear for exceptional athletes or qualified training for born singers to

provide

that

extra-edge.

To ensure this, parents would need an investment and protection package that is

33

exclusively designed to help you plan for financial security, no matter what uncertainties life brings.

exclusively designed to help you plan for financial security, no matter what uncertainties life brings.

'Met Little Star', a Unit-Linked, regular premium, child insurance plan helps parents do just that. It secures finances for child's educational needs and ensures that plans go as planned, no matter what the circumstances.

that plans go as planned, no matter what the circumstances. MetLife offers 'Met Junior Money Back'

MetLife offers 'Met Junior Money Back' - a money back plan that combines savings and security. Child's well-being is our highest priority. So MetLife offer a money back plan which provides guaranteed periodic survival benefits at the end of 5, 10 & 15 years, along with guaranteed growth of savings.

A plan which offers both timely and efficient return on investment with payouts at different milestones.

Survival Benefit

At the end of 5 years

20% of Sum Assured

At the end of 10 years

20% of Sum Assured

At the end of 15 years

20% of Sum Assured

Upon survival to maturity

40% of Sum Assured plus total Guaranteed Additions

MetLife offers 'Met Magic', a Unit-Linked (non-medical, regular premium) life insurance plan (Non Par). Parents always want their little angel to have the best, in every sphere of life. You don't want your child to have to compromise. No matter what the circumstances. Met Magic, a unique life insurance plan, helps you secure the future of your loved one!

(IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICY HOLDER )

34

Retirement :- Met Growth MetLife offers 'Met Growth' - a Unit-Linked solution to help in

:-

Retirement :- Met Growth MetLife offers 'Met Growth' - a Unit-Linked solution to help in golden

MetLife offers 'Met Growth' - a Unit-Linked solution to help in golden years. It is specially designed to provide financial security for future requirements. This plan allows to start planning immediately by ensuring the safety of first year premiums. It also helps create retirement fund faster by giving you 100% allocation from the second year onwards, coupled with attractive loyalty additions into fund. Guaranteed.

Entry Age (in completed years)

Min – 0 years (3 months to be completed) Max – 60 years

Maturity Age

Min – 18 years Max – 75 years

Coverage Term

15 /

20 / 25 / 30 years

Premium Payment Term

Regular

Minimum Annualized Premium

 

Rs. 12,000

Basic Sum Assured

Min - 5 times the Annualized Premium ***Other Sum Assured multiples - 10 times & 20 times the Annualized Premium.

Premium Paying Modes

Monthly, Quarterly, Half-yearly, Yearly

Benefit

35

∑ Death Benefit In the unfortunate event of death, the higher of the Sum Assured

Death Benefit In the unfortunate event of death, the higher of the Sum Assured or the Fund Value would be payable. If death of the Person Insured occurs before age 7, the Fund Value plus the regular premium received by us in the first policy year is payable.

Maturity Benefit On maturity, you will receive the Fund Value including the Guaranteed Loyalty Addition or you can opt for the settlement options.

Loyalty Additions You get the guarantee of enhancing your wealth creation through guaranteed loyalty additions (up to 120% of the first year annual premium) at the end of the 10th & 15th year plus Guaranteed Additions as a % of the Fund Value.

At the end of the 10th year: 50% of the first year annualized premium

At the end of the 15th year:

MetLife offers 'Met Advantage Plus' - a Unit-Linked Pension Plan that allows to effectively and efficiently accumulate retirement needs. As the name suggests, it comes with many advantages.One can choose from eight annuity options, two life cover options and get tax benefits under Section 80 C and 10 (10 A). One can buy the plan without any hassles and invest more as you approach retirement by using the top-up functionality. All in all, it’s a plan which works harder when one stop working. For one, it ensures that you lead a comfortable lifestyle post retirement.

Entry Age (in completed years)

Min – 20 years Max – 55 years

Minimum Term

10 years

Minimum Vesting Age

45

years

Maximum Vesting Age

65

years

 

36

Minimum Premiums Single Pay: Rs. 1,00,000 Regular Premium: Rs. 10,000 Premium Paying Term Single Pay

Minimum Premiums

Single Pay: Rs. 1,00,000 Regular Premium: Rs. 10,000

Premium Paying Term

Single Pay & Regular Pay

Benefits

Death Benefit In case of death during the accumulation period, the death benefit payable is:

Under Option A: A guaranteed amount of 110% of the Fund Value is payable to the nominee. Under Option B: 100% of the Fund Value is payable to the nominee.

Vesting Benefit On the vesting date, i.e. at the end of the accumulation term,you can take one- third of your retirement kitty as a tax-free lump sum and utilize the balance to buy annuities. Or you can use the entire retirement kitty to buy annuities.

'Met Pension (Par)' serves as a friendly helping hand so one can stay financially independent even after retirement. It helps to build up a fund for golden years.

With this plan,one can ensure his\her enjoy retirement as a happy new chapter.

Entry Age (in completed years)

Min – 18 years Max – 60 years

Minimum Term

10

years

Minimum Vesting Age

45

years

Maximum Vesting Age

70

years

Minimum Sum Assured

Rs. 50,000

Maximum Sum Assured

No Limit

Minimum Annual Premium

Rs. 4000 p.a. for Regular Pay

Premium Payment Term

Single Pay, Limited Pay (3 or 5 Pay) & Regular Pay

37

Benefits Death Benefit In case of death while one is saving for retirement, the death

Benefits

Death Benefit

In case of death while one is saving for retirement, the death benefit payable is:

1. Return of premiums.

2. Accrued reversionary bonus, if any.

3. Any insurance on the life of the Insured that may be provided by riders to

this policy.

Vesting Benefit On the vesting date, you can take one third of your retirement kitty as a tax- free lump sum and utilize the balance to buy annuities or you can use the entire retirement kitty to buy annuities. The retirement fund on the date of vesting is equal to the Sum Assured plus Guaranteed Additions plus the compounded reversionary bonuses plus the terminal bonus, if any.

Guaranteed Additions

:-

plus the compounded reversionary bonuses plus the terminal bonus, if any. Guaranteed Additions Savings :- Met

38

MetLife offers 'Met Sukh'- a guaranteed money-back policy which provides guaranteed periodic survival benefits at

MetLife offers 'Met Sukh'- a guaranteed money-back policy which provides guaranteed periodic survival benefits at the end of 5, 10, 15 & 20 years and guaranteed additions of 10% of the Sum Assured for the entire term. It not only covers your life, but also guarantees you cash payments at various milestones along with guaranteed growth of your savings.

Entry Age

Min - 15 years Max - 55 years

Coverage Term

20 years

Premium Payment Term

Regular

Minimum Sum Assured

Rs. 75,000

Maximum Sum Assured

No Limit

Benefits

Death Benefit In the unfortunate event of death of the Person Insured, the Sum Assured along with the Guaranteed Additions are payable. The policyholder is entitled to Guaranteed Additions of Rs. 100 per Rs. 1,000 of the Sum Assured for each completed year.

Maturity Benefit On maturity, the life insured will receive the Survival Benefits plus the Guaranteed Addition.

Survival Benefits

At the end of 5 years

20% of the Sum Assured

At the end of 10 years

20% of the Sum Assured

At the end of 15 years

20% of the Sum Assured

Upon survival to maturity

40% of the Sum Assured plus Total Guaranteed Additions

39

Met Suvidha 'Met Suvidha' is a flexible Endowment Plan that combines savings and security. In

'Met Suvidha' is a flexible Endowment Plan that combines savings and security. In addition to providing you protection till the maturity of the plan, it helps you save for your specific long term financial objectives. This long term savings-cum- protection plan comes to a customer at affordable premiums.

Met Suvidha is available in both participating as well as non-participating versions.

Minimum Entry Age

Par: 15 years - 60 years Non-Par: 15 years - 70 years

Term

Par: - 15 years - 30 years Non-Par: 5 years - 30 years

Premium Paying Terms

Single Pay, Limited Pay (5 or 10) & Regular Pay

Minimum Annual Premium Amount

Rs. 2,500

Minimum Sum Assured

Rs. 75,000

Maximum Sum Assured

No Limit

MetLife presents 'Met Saral' - a non- participating endowment plan. As the name suggests, it’s a simple savings plan which gets customer into the savings habit without any medical tests. All need to do is fill in a simple application form and are ensured a guaranteed maturity amount of Rs 100,000, even in the case of death during the term. Take the first step towards a better financial future for customer and his family. Ensure and insure the first Lakh.

40

Met 100 'Met 100' - a whole life policy where customer pay premiums for 15,

'Met 100' - a whole life policy where customer pay premiums for 15, 20 or 25 years.

It helps create a legacy for the children, leaving money for a dependant spouse and, more importantly, provides insurance cover at affordable rates.

Met 100 is available in participating as well as non- participating versions.

 

Non-Par

Par

Minimum Entry Age

15

yrs

0 yrs

Maximum Entry Age

70

yrs for ppt of 15 yrs

70

yrs for ppt of 15

65

yrs for ppt of 20 yrs

yrs

60

yrs for ppt of 25 yrs

65

yrs for ppt of 20

 

yrs

60

yrs for ppt of 25

yrs

70

yrs for life – ppt

Premium Paying Terms

15, 20, 25 yrs

15, 20, 25 yrs

Minimum Sum Assured

Rs. 50,000

Rs. 50,000

Maximum Sum Assured

No limit (subject to UW)

No limit (subject to UW)

Minimum Annual Premium

Rs. 1,000 for issue age of < 15 yrs Rs. 2,500 for issue age of > = 15

Met 100 Gold: Rs.

2,500

 

Met 100 Platinum:

41

yrs Rs. 7,500 Death Benefit Met 100 - Par In the event of death, the
yrs Rs. 7,500
yrs
Rs. 7,500

Death Benefit Met 100 - Par In the event of death, the Sum Assured plus the Reversionary Bonus and Terminal Bonuses, if any, are payable.

:-

Met 100 - Non-Par In the event of death, the Sum Assured is payable.

Maturity Benefit Met 100 - Par On maturity of the policy, the Sum Assured plus the Reversionary Bonus and Terminal Bonuses, if any, are payable.

Met 100 - Non-Par On maturity of the policy, the Sum Assured is payable

42

Met Suraksha MetLife offers 'Met Suraksha - Term Assurance (TA)', a non participating term assurance
Met Suraksha MetLife offers 'Met Suraksha - Term Assurance (TA)', a non participating term assurance

MetLife offers 'Met Suraksha - Term Assurance (TA)', a non participating term assurance plan which provides life cover at a nominal cost. To put it simply, it is a life insurance plan that gives complete protection to enjoy life to the fullest. Customer can further customize plan with two riders – Accidental Death Benefit and Critical Illness.

MetLife offers 'Met Suraksha - Term with Return of Premium (TROP)', a non participating term assurance plan which provides life cover at a nominal cost. To put it simply, it is a life insurance plan that gives complete protection to enjoy life to the fullest. You can further customize your plan with two riders – Accidental Death Benefit and Critical Illness.

This plan which provides life cover for home loans taken for any period above 5 years. It is a decreasing term insurance with single and limited premium options. The plan covers an amount equal to the outstanding amount as per the policy schedule.

It ensures the assets that have created stays with family.

43

Rural : - None of us can be sure what tomorrow will bring. Shield your
Rural
Rural

:-

None of us can be sure what tomorrow will bring. Shield your families against the unknown. MetLife’s rural plans protect your loved ones against financial liabilities and help you save for tomorrow. All at affordable premiums

'Met Vishwas', - a single premium, micro insurance, non- participating term assurance plan which provides life cover at a nominal cost. On survival, customers get 110% or 125% of the premium.

Minimum Entry Age

18

years

Maximum Entry Age

60

years

Maximum Maturity Age

70

years

Minimum Sum Assured

Rs. 5,000

Maximum Sum Assured

Rs. 50,000

Policy Term

5 or 10 years

Premium Paying Terms

Single Pay

Met Suvidha (Rural) is a participating flexible Endowment Plan that combines savings and security. In addition to providing protection up to maturity, it helps to save for specific long term

44

financial objectives. This long term savings-cum-protection plan comes at affordable premiums. Benefits: Met Suvidha -

financial objectives. This long term savings-cum-protection plan comes at affordable premiums.

Benefits:

Met Suvidha - Par In the event of death during the term of the policy, the beneficiary will receive the base Sum Assured, the accrued reversionary bonus and terminal bonus if any.

Maturity Benefit Met Suvidha - Par On maturity of the policy, you will receive the base Sum Assured, the accrued reversionary bonus and terminal bonus if any.

It is an Endowment plan that offers both savings and life insurance.

Flexible premium paying options to suit various income cycles.

A plan which participates in the bonuses declared by the company.

Customization possible with Accident Death Benefit, Critical Illness, Term, Waiver of Premium Riders for comprehensive protection.

:-

Accident Death Benefit, Critical Illness, Term, Waiver of Premium Riders for comprehensive protection. Investment :- 45

45

 
 
 

MetLife’s Unit-Linked Insurance Plans ensure systematic enhancement of wealth. Be it higher returns or the right blend of protection and wealth optimization, they help to ensure the right choice and peace of mind.

(IN THESE POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICY HOLDER )

 

A simplified unit-linked plan which offers an opportunity to systematically build wealth and protection for you and your family.

 
 

10 years

15 years

20 years

Minimum Age at Entry

8

3

0 (3 months to be completed)

Maximum Age at Entry

55

50

50

Minimum

20,000

15,000

12,000

Premium

Maximum

6,00,000

4,00,000

3,00,000

Premium

Sum Assured

5 times the annualized regular premium

7.5 times the annualized regular premium

10 times the annualized regular premium

Premium payment modes

Yearly, Half-yearly, Quarterly, Monthly

Yearly, Half-yearly, Quarterly, Monthly

Yearly, Half-yearly, Quarterly, Monthly

 

46

(The maximum Sum Assured available in this product is based on age, at the time

(The maximum Sum Assured available in this product is based on age, at the time of buying the policy.)

Benefits-

Death Benefit In the event of death:

occurs

before

age 7, the Fund

Value

plus

the

In the 1st Policy Year: Higher of 50% of the Sum Assured or the Fund Value is payable. After the 1st

Regular

Premium

received

by

us

in

the

first

policy

year

is

payable.

Policy

Higher of 100%

Year:

of

the

Sum

Assured

 

or

Fund

Value.

If

death

of

the

Person Insured

Maturity Benefit On maturity, you will receive the Fund Value including the Loyalty Addition

or you can opt for the settlement options.

Loyalty

Additions

With

Met

Easy,

you

get

the

benefit

of

potentially enhancing your

wealth creation

with

loyalty

additions that are

added

to

your

policy

on

maturity.

MetLife offers 'Met Smart Gold'- a Unit-Linked wealth creation cum protection plan for the well-heeled. It's specially conceived so that one can get a plan to match his specific financial requirements.

If you are keen on investing lump sum amounts over a shorter horizon, this is the ideal plan for you.

'Met Smart Plus' – a Unit-Linked Whole life plan that matures at age 100. If you want to protect your family from life’s uncertainties; at the same time, you wish insurance would yield

47

higher returns on your investments. You want your insurance policy to help realize all your

higher returns on your investments. You want your insurance policy to help realize all your dreams. It’s a right plan to go with.

Entry Age (in completed years)

Min – 0 years (3 months to be completed)

Max – 70 years

Maturity Age

100 years

Premium Payment Term

Regular

Minimum Annualized Premium

Rs. 12,000

Minimum Basic Sum Assured

Rs. 60,000

Premium Payment Modes

Monthly, Quarterly, Half-yearly, Yearly

Same as Met Smart Plus Regular but premium is payable in a single term or at the time of policy taken.

MetLife offers 'Met Smart Premier' – a Unit-Linked Whole life plan that matures at age 100. You want to protect your family from life’s uncertainties; at the same time, you wish insurance would yield higher returns on your investments. You want your insurance policy to help realize all your dreams.

Payable lump sum at the time of policy taken.

48

Health :- Met Health Care UIN no: 117N048V01 Health problems strike unexpectedly. In addition to
Health
Health

:-

UIN no: 117N048V01

Health problems strike unexpectedly. In addition to causing ill health, it can also scar financial health. One need to protect himself against such a situation through a health insurance plan. In order to ensure you are well protected to face any health condition that could befall you, MetLife presents - Met Health Care, a simple health insurance policy with unique and smart advantages for you and your family#.

(# Family means spouse and two children. Every additional family member shall be underwritten as per the underwriting conditions laid by the Company from time to time.)

Met Health Care is a long term health insurance plan from

MetLife.

This

plan

covers

1. Hospitalization expenses by providing a Daily Cash benefit as

chosen

2. 10 major Critical Illnesses by providing a lump sum benefit.

3. Total & Permanent Disability due to accident by providing a

benefit.

lump

by

you.

sum

All the above benefits can be availed without the hassle of undergoing any medical examination. Just fill up the simple application form and start enjoying the unmatched benefits of Met Health Care.

Minimum/Maximum age of entry

18

years-55 years (At first entry, for the

Principal insured) 3 months-55 years (For Secondary Insured lives)

Cover ceasing age

65

years

49

No Maturity/Death Benefit payable (a) Daily Hospitalisation Cash Benefit (b) Daily ICU Cash Benefit (c)
No Maturity/Death Benefit payable (a) Daily Hospitalisation Cash Benefit (b) Daily ICU Cash Benefit (c)
No Maturity/Death Benefit payable (a) Daily Hospitalisation Cash Benefit (b) Daily ICU Cash Benefit (c)
No Maturity/Death Benefit payable (a) Daily Hospitalisation Cash Benefit (b) Daily ICU Cash Benefit (c)
No Maturity/Death Benefit payable (a) Daily Hospitalisation Cash Benefit (b) Daily ICU Cash Benefit (c)
No Maturity/Death Benefit payable (a) Daily Hospitalisation Cash Benefit (b) Daily ICU Cash Benefit (c)
No Maturity/Death Benefit payable (a) Daily Hospitalisation Cash Benefit (b) Daily ICU Cash Benefit (c)
No Maturity/Death Benefit payable (a) Daily Hospitalisation Cash Benefit (b) Daily ICU Cash Benefit (c)

No Maturity/Death Benefit payable

(a)

Daily Hospitalisation Cash Benefit

(b)

Daily ICU Cash Benefit

(c)

Recuperation Benefit

(d)

Critical Illness Benefit

(e)

Accidental Total & Permanent Disability

Illustration

Benefit

Maturity/Death Benefit

 

Benefits Offered

 

Premium paying frequency

Yearly. Half-Yearly mode is avaiable only if each of the persons insured choose a daily cash benefit of Rs. 3000 or more.

Benefit

Option 1

Option 2

Option 3

Option 4

more. Benefit Option 1 Option 2 Option 3 Option 4 Daily Hospitalisation Cash Benefit Rs. 1000

Daily Hospitalisation Cash Benefit

Rs. 1000 per day

Rs. 2000 per day

Rs. 3000 per day

Rs. 4000 per day

Daily ICU Cash Benefit

Rs. 2000 per day

Rs. 4000 per day

Rs. 6000 per day

Rs. 6000 per day

Recuperation Benefit

Rs. 3000

Rs. 6000

Rs. 9000

Rs. 10000

Critical Illness Benefit

Rs. 1 Lakh

Rs. 2 Lakh

Rs. 3 Lakh

Rs. 3 Lakh

Accidental Total & Permanent Disability Benefit

Rs. 1 Lakh

Rs. 2 Lakh

Rs. 3 Lakh

Rs. 3 Lakh

Benefits

50

Option 5

Rs. 5000 per day

Rs. 6000 per day

Rs. 10000

Rs. 3 Lakh

Rs. 3 Lakh

per day Rs. 6000 per day Rs. 10000 Rs. 3 Lakh Rs. 3 Lakh Death/Maturity Benefit
per day Rs. 6000 per day Rs. 10000 Rs. 3 Lakh Rs. 3 Lakh Death/Maturity Benefit

Death/Maturity Benefit

There is no Death/Maturity Benefit under Met Health Care. Tax Benefits

The premium paid (excluding the service tax) under this plan is eligible for Tax Benefits under Section 80 D of the Income Tax Act, 1961 as per the provisions and conditions given therein and are

subject to any changes made in the tax laws in future. Reasons to Buy 1.

subject to any changes made in the tax laws in future.

Reasons to Buy

1. Coverage for the entire family.

2. No Claim Discounts.

3. Guaranteed Cover* till age 65.

4. Payouts in addition to other Insurance Plans.

5. Multiple Claims.

S.W.O.T ANALYSIS OF METLIFE INDIA INSURANCE

51

STRENGTHS ∑ With over 139 years of experience Metlife have approximately US $ 3.3 trillion

STRENGTHS

With over 139 years of experience Metlife have approximately US $ 3.3 trillion of life insurance in force.

Brand Image , Business Experience and Innovative products

Large number of young workforce .The 40K agents which are very selectively chosen .

Service quality which is the crux of their mission.

Has tie up with banks like Axis , J&K , Barclays , Karnatka Bank and Dhanalakshmi bank.

Paidup capital of RS 1500 cr as on 2008 which shows company dependability.

Very less charges on ULIP plans as compare to other insurance players .

WEAKNESS

Many competitors in the market of same products by the title and difference in premium and offerings.

52

∑ Sustainable to risk associated with investments in money market. ∑ Very less network branches

Sustainable to risk associated with investments in money market.

Very less network branches due to which its difficult for customer to make payment easily.

Not focusing on consumer awareness mainly concentrating on personal selling .

More focusing in urban areas not touching rural area which has a very good potential market for insurance sector.

Lacking in advertisement due to which they are not able to cover a large area or large no of customer.

OPPORTUNITY

53

∑ Huge market is literally untapped . Out of estimated 320 millions insurable markets only

Huge market is literally untapped. Out of estimated 320 millions insurable markets only 20% of the population is insured.

Health insurance and pension schemes, an estimated market potential of approximately $ 15 billion.

Nearly 70% of the Indian population is without Life , Health , and Non-Life insurance.

Per Capita life insurance premium in India in 2004 was $16 as compared to the world average of $ 292.

Strong economic growth with increase in affluence and rising risk awareness leading to rapid growth in the Insurance sector.

THREATS

Players like bajaj and birla sunlife offer same plans with low premiums.

54

∑ Entry of many other private companies with equally strong experience and financial strength of

Entry of many other private companies with equally strong experience and financial strength of foreign partners making the competition difficult and saturating the urban markets (example ; idbi fortis insurance , bharti axa insurance and more.)

Current govt. policies do not encourage gross domestic savings. if the tax liability of the sevice class rises, the customer will have little money to invest.

Lic has woken up from sleep and is following competitive strategies. its huge surplus in life fund gives a capability to lodge price war.

55

MAN Concept: This concept means that before selling, the seller should make sure that the

MAN Concept:

MAN Concept: This concept means that before selling, the seller should make sure that the suspect

This concept means that before selling, the seller should make sure that the suspect should have the Money, Authority and Power to buy the product, and then only the prospect will become a Suspect. Before deciding suspect a person should identify that they should have enough money to buy that service, prospect should have authority and power of taking decision, he should also have need of buying the product. If a person have all these things than only he can become suspect of the product.

56

RESEARCH METHODOLOGY  Objective  Scope of study  Sampling methodology  Limitations 57

RESEARCH METHODOLOGY

Objective

Scope of study

Sampling methodology

Limitations

57

RESEARCH METHODOLOGY 58
RESEARCH METHODOLOGY 58

RESEARCH METHODOLOGY

58

TITLE: To Study “Potential of Life Insurance Industry in Ahmedabad”. TITLE JUSTIFICATION : The above

TITLE:

To Study “Potential of Life Insurance Industry in Ahmedabad”.

TITLE JUSTIFICATION:

The above title is self explanatory. The study deals mainly with studying the buying pattern in the insurance industry with a special focus on MetLife India Insurance Co. Ltd. The various segments of the markets divided in terms of Insurance Needs, Age groups, Satisfaction levels etc will also studied.

OBJECTIVE

Main objective of the research is to have an analysis of life insurance industry in Ahmedabad. To accomplish this objective it has been divided into five.

To determine reasons behind opting for an insurance.

To know the most preferred policy.

To determine customers perception towards private insurance companies and their expectation form private insurance companies.

To determine the feedback on services provided by an insurance agent.

To study the types of benefits provided by insurance services.

59

SCOPE OF THE STUDY A big boom has been witnessed in Insurance Industry in recent

SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industry in recent

times. A large number of new players have entered the market

and are trying to gain market share in this rapidly improving

market. The study deals with reliance in focus and the various

segments that it caters to. The study then goes on to evaluate and

analyze the findings so as to present a clear picture of trends in

the Insurance sector.

SIGNIFICANCE TO THE INDUSTRY:

This

is

a

limited

study

which

takes

into

consideration

the

responses of 100 people. This data can be explorated to take in

the trends across the industry. The significance for the industry

lies in studying these trends that emerge from the study. It is a

rapidly changing and evolving sector. People are only beginning

to

wake up to its vast possibilities. A study like this can attempt

to

guide the future of the industry based on current trends.

SIGNIFICANE FOR THE RESEARCHER:

To facilitate and provide useful information for the study of the company and the insurance industry and also provide recommendations for MetLife India Insurance Co. Ltd

60

RESEARCH DESIGN ∑ EXPLORATORY & EXPERIMENTAL RESEARCH DISCRIPTIVE The research is primarily both exploratory as

RESEARCH DESIGN

EXPLORATORY

&

EXPERIMENTAL RESEARCH

DISCRIPTIVE

The research is primarily both exploratory as well as descriptive

in nature.

The

secondary.

sources

of

information

are

both

primary

&

A well-structured

questionnaire

was

prepared

and

personal

interviews were conducted to collect the customer’s perception

and buying behavior, through this questionnaire.

SAMPLING METHODOLOGY

Sampling Technique:

Initially,

a

rough

draft

was

prepared

keeping

in

mind

the

objective of the research. A pilot study was done in order to

know the accuracy of the Questionnaire. The final Questionnaire

was arrived only after certain important changes were done. Thus

my sampling came out to be judemental and convinent

61

Sampling Unit: The respondents who were asked to fill out questionnaires are the sampling units.

Sampling Unit:

The respondents who were asked to fill out questionnaires are the

sampling units. These comprise of employees of MNCs, Govt.

Employees, Self Employed etc.

Sample size:

The sample size was restricted to only 100, which comprised of

mainly peoples from different regions of Ahmedabad due to time

constraints.

Sampling Area:

The area of the research was Ahmedabad, India.

62

LIMITATIONS OF THE RESEARCH 1. The research is confined to a certain parts of Ahmedabad

LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of Ahmedabad

and does not necessarily shows a pattern applicable to all of

Country.

2.

Some

respondents

were

reluctant

to

divulge

personal

information which can affect the validity of all responses.

3. In a rapidly changing industry, analysis on one day or in

one segment can change very quickly. The environmental

changes are vital to be considered in order to assimilate the

findings.

63

SURVEY  Graph Analysis  Data Interpretation 64
SURVEY  Graph Analysis  Data Interpretation
SURVEY
 Graph Analysis
 Data Interpretation

64

DATA ANALYSIS & INTERPRETATION NUMBER OF PEOPLE HAVING INSURANCE RESPONSE NO. OF RESPONDENTS SHARE (%)

DATA ANALYSIS & INTERPRETATION

NUMBER OF PEOPLE HAVING INSURANCE

RESPONSE

NO. OF RESPONDENTS

SHARE (%)

Yes

70

70%

No

30

30%

Total

100

100%

70 70% No 30 30% Total 100 100% INTERPRETATION ∑ Of the sample size of 100

INTERPRETATION

Of the sample size of 100 surveyed respondents 70%

of the respondents are having Insurance policy.

30% of the respondents are either not having any

Insurance policy at present or their policy is already matured.

And at present 100% of the respondents are with the

view that Insurance is a tool to protect your family.

65

TYPES OF INSURANCE POLICY RESPONDENTS HAVE POLICY TYPE NO. OF RESPONDENTS SHARE (%) LIFE POLICY

TYPES OF INSURANCE POLICY RESPONDENTS HAVE

POLICY TYPE

NO. OF RESPONDENTS

SHARE (%)

LIFE POLICY

75

75

NON LIFE

25

25

POLICY

BOTH

45

45

INTERPRETATION

75%

Policy.

of

the

respondents

have

only

Life

Insurance

While 45% of the respondents have both.

25% of the respondents have only Non- life Policy.

66

Insurance  While 45% of the respondents have both .  25% of the respondents have
[ Some of the respondents opted for two or more than two items] PREFERENCE OF

[Some of the respondents opted for two or more than two items]

PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES

 

NO.OF

 

COMPANY’S NAME

RESPONDENT

SHARE (%)

L.I.C.

74

74

Reliance Life Insurance

3

3

Metlife India Ins. Co.Ltd

2

2

Bajaj Allianze

3

3

ICICI Prudential

9

9

SBI Life

7

7

Max New York Life

2

2

TOTAL

100

100

3 3 ICICI Prudential 9 9 SBI Life 7 7 Max New York Life 2 2

67

INTERPRETATION  74% of the people contacted prefer LIC policy to any other and therefore

INTERPRETATION

74% of the people contacted prefer LIC policy to any other

and

therefore

respondents.

it

is

ranked

no.1

by

that

percent

of

BENEFITS OF INSURANCE PERCEIVED BY

RESPONDENTS

NO.OF

RESPONDENTS

BENEFITS

SHARE (%)

Cover Future Uncertainty

55

55

Tax Deductions

20

20

Future Investment

25

25

TOTAL

100

100

[Fig4] Future Investment 25% CoverFuture Tax Uncertainty Deductions 55% 20% 68
[Fig4]
Future
Investment
25%
CoverFuture
Tax
Uncertainty
Deductions
55%
20%
68
INTERPRETATION  55% of the respondents believe that covering future uncertainty is the biggest benefit
INTERPRETATION
 55%
of
the
respondents
believe
that
covering
future
uncertainty is the biggest benefit of an insurance policy.
 Whereas, 20% and 25% of them believe that the other
benefits
are
Tax
deduction
and
future
investments
respectively.
FEATURES OF INSURANCE POLICY THAT
ATTRACTED RESPONDENTS
FEATURE
NO.OF
SHARE (%)
RESPONDENTS
Money Back Guarantee
15
15
Larger Risk Coverage
37
37
Easy Access to Agents
7
7
Low Premium
30
30
Company’s Reputation
11
11
TOTAL
100
100
69
[Fig 5] MONEY REPUTATIO BACK N OF GUAARENT COMPANY EE 11% 15% LOW PREMIUM 30%
[Fig 5] MONEY REPUTATIO BACK N OF GUAARENT COMPANY EE 11% 15% LOW PREMIUM 30%
[Fig 5]
MONEY
REPUTATIO
BACK
N OF
GUAARENT
COMPANY
EE
11%
15%
LOW
PREMIUM
30%
LA
R
EASY
COV
ACCESS TO
3
AGENTS

INTERPRETATION

Majority of the respondent (37%) found larger risk

coverage as the most attracted feature of the all.

Minimum respondents (7%) opted for easy access to

agents.

PEOPLE PERCEPTION ABOUT INSURANCE

RESPONSE

NO. OF RESPONDENTS

SHARE

(%)

A saving tool

81

81%

A tax saving device

74

74%

A tool to protect your family

100

100%

70

INTERPRETATION ∑ 81% of the respondents have perception of Insurance being a saving tool. ∑
INTERPRETATION ∑ 81% of the respondents have perception of Insurance being a saving tool. ∑

INTERPRETATION

81% of the respondents have perception of Insurance

being a saving tool.

And

74%

of

the

respondents

have

perception

of

Insurance being a tax saving device.

But 100% of the respondents are with the view that

Insurance is a tool to protect your family.

[Some of the respondents opted for two or more than two items]

PERSONS HAVING INSURANCE FOR

Response

self

spouse

No of respondents

40

28

71

children 21 parents 18 all 11 INTERPRETATION Among that 42% people who having insurance, they

children

21

parents

18

all

11

children 21 parents 18 all 11 INTERPRETATION Among that 42% people who having insurance, they have

INTERPRETATION

Among that 42% people who having insurance, they have

insurance 40% for self, 28%for spouse ,21% for children and

18% for their parents and 11% for all family member.

REASONS BEHIND TAKING INSURANCE

RESPONSE

NO. OF RESPONDENTS

SHARE (%)

Tax saving

80

80%

Saving / Investment

80

80%

72

Family protection 100 100% INTERPRETATION ∑ 80% of the Respondents opted for Insurance for tax

Family protection

100

100%

Family protection 100 100% INTERPRETATION ∑ 80% of the Respondents opted for Insurance for tax saving

INTERPRETATION

80% of the Respondents opted for Insurance for tax

saving benefits and saving/investment both.

But all of them, i.e. 100% of the respondents have

opted for insurance for their family protection.

[Some of the respondents opted for two or more than two items]

73

SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY RESPONSE NO. OF RESPONDENTS SHARE (%) Satisfied 60

SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY

RESPONSE

NO. OF RESPONDENTS

SHARE (%)

Satisfied

60

60%

Not satisfied

40

40%

Not Responded

0

0.0%

Total

100

100%

40% Not Responded 0 0.0% Total 100 100% INTERPRETATION ∑ 60% of the respondents are more

INTERPRETATION

60% of the respondents are more or less satisfied with

their existing policy.

40% of the respondents are not satisfied with their

existing policy.

74

∑ In this case all of those who have taken a policy have responded. 75

In this case all of those who have taken a policy have

responded.

75

SATISFACTION OF +VE RESPONDENTS WITH RESPECT TO SERVICE AGENT RESPONSE NO. OF RESPONDENTS SHARE (%)

SATISFACTION OF +VE RESPONDENTS WITH

RESPECT TO SERVICE AGENT

RESPONSE

NO. OF RESPONDENTS

SHARE (%)

Satisfied

45

45%

Not satisfied

55

55%

Not Responded

0

0.0%

Total

100

100%

Not Responded [Fig10] 0% Satisfied 45% Not satisfied 55%
Not Responded
[Fig10]
0%
Satisfied
45%
Not satisfied
55%

INTERPRETATION

45% of the respondents are satisfied with their existing

service agent.

55% of the respondents are not satisfied with their

existing insurance agent.

76

∑ All of those who have taken a policy have responded. 77

All of those who have taken a policy have responded.

77

NUMBER OF RESPONDENTS PAYING TAX RESPONSE NO. OF RESPONDENTS SHARE (%) Paying tax 91 91%

NUMBER OF RESPONDENTS PAYING TAX

RESPONSE

NO. OF RESPONDENTS

SHARE (%)

Paying tax

91

91%

Not paying tax

9

9%

Total

100

100%

91% Not paying tax 9 9% Total 100 100% INTERPRETATION ∑ Of the sample size of

INTERPRETATION

Of the sample size of 100 respondents, 91 respondents

are paying tax.

78

RESPONDENTS PERCEPTION ABOUT BEST FORM OF INVESTMENT FOR SECURING THEIR FUTURE   NO. OF RESPONDENTS

RESPONDENTS PERCEPTION ABOUT BEST FORM

OF INVESTMENT FOR SECURING THEIR FUTURE

 

NO. OF RESPONDENTS

SHARE (%)

Fixed Assets

75

33%

Bank deposits

11

5%

Jewellery

25

11%

Securities i.e. bonds, MFs

40.

17%

Shares

10

4%

Insurance

70

30%

[Fig12] Fixed Assets, 75 80 Insuran 70 60 Bonds/Mutual 50 Funds,40 40 Jewellery, 25 30
[Fig12]
Fixed
Assets, 75
80
Insuran
70
60
Bonds/Mutual
50
Funds,40
40
Jewellery, 25
30
Bank
20
deposits, 11
Shares, 10
10
0
FixedAssets
Bank deposits
Jewellery
Bonds/Mutual
Shares
Insura

INTERPRETATION

75% of the respondents are with the view that Fixed

Assets is the best form of investment for securing their future.

70% of the respondents are with the perception that

Insurance is the best form of investment for securing their

79

future, which is 2nd highest and this shows that insurance is an important key for

future, which is 2nd highest and this shows that insurance is

an important key for securing your future.

[Some of the respondents opted for two or more than two items]

PEOPLE’S PERCEPTION ON APPROPRIATE AGE

FOR BUYING INSURANCE

RESPONSE

NO. OF RESPONDENTS

SHARE (%)

After 25 years

29

29%

After 35 years

10

10%

After 45 years

0

0%

Anytime

61

61%

10% After 45 years 0 0% Anytime 61 61% INTERPRETATION ∑ 29% of the respondents are

INTERPRETATION

29%

of

the

respondents

are

with

the

view

that

insurance should be bought after the age of 25 years.

10%

of

the

respondents

are

with

the

view

that

insurance should be buyed after the age of 35 years.

80

∑ Whereas, 61% of the respondents are with the view that buying of insurance do

Whereas, 61% of the respondents are with the view

that buying of insurance do not have anything to do with age i.e. there is no age limitations. It can be purchased any time according to the need.

81

PEOPLE OPINION ABOUT INDIAN INSURANCE COMPANIES RESPONSE NO. OF RESPONDENTS SHARE (%) Rigid plans 67

PEOPLE OPINION ABOUT INDIAN INSURANCE

COMPANIES

RESPONSE

NO. OF RESPONDENTS

SHARE (%)

Rigid plans

67

67%

Non user friendly

29

29%

Unsatisfactory services

26

26%

Non Aggressive

35

35%

Satisfactory

24

24%

Good

10

10%

Very good

0

0%

24 24% Good 10 10% Very good 0 0% INTERPRETATION ∑ 67% of the respondents have

INTERPRETATION

67% of the respondents have the opinion that Indian

Insurance Companies have Rigid plans.

82

∑ 29.5% feel that Indian Insurance companies are Non- user friendly. ∑ 26.5% feel that

29.5% feel that Indian Insurance companies are Non-

user friendly.

26.5% feel that services of Indian Insurance companies

are Unsatisfactory.

35.75% of the respondents are with the view that

Indian Insurance companies are Non-aggressive.

24% of the respondents feel that products and services

of Indian Insurance companies is Satisfactory.

Whereas only 10.25% feel that it is Good enough.

And according to the data, no single person has felt

that it is very good.

[Some of the respondents opted for two or more than two items]

83

WHAT PEOPLE LOOK FOR IN AN INSURANCE COMPANY RESPONSE NO. OF RESPONDENTS SHARE (%) A

WHAT PEOPLE LOOK FOR IN AN INSURANCE

COMPANY

RESPONSE

NO. OF RESPONDENTS

SHARE

(%)

A trusted name

82

82%

Friendly service & responsiveness

71

71%

Good plans

81

81%