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CHAPTER-1
INSURANCE INDUSTRY IN INDIA
THE MEANING OF INSURANCE:-
Insurance is a policy from a large financial institution that offers a person, company,
or other entity reimbursement or financial protection against possible future losses or
damages. Insurance is important to understand for anybody that is considering buying an
insurance policy or simply understanding the basics of finance. Insurance is a
hedging instrument used as a precautionary measure against future contingent
losses. This instrument is used for managing the possible risks of the future.
Insurance is bought in order to hedge the possible risks of the future which may or
may not take place. This is a mode of financially insuring that if such a incident
happens then the loss does not affect the present well-being of the person or theproperty insured. Thus, through insurance, a person buys security and protection.
A simple example will make the meaning of insurance easy to understand. A
biker is always subjected to the risk of head injury. But it is not certain that the
accident causing him the head injury would definitely occur. Still, people riding bikes
cover their heads with helmets. This helmet in such cases acts as insurance by
protecting him/her from any possible danger. The price paid was the possible
inconvenience or act of wearing the helmet; this i.e. equivalent to the insurance
premiums paid.
Though loss of life or injuries incurred cannot be measured in financial terms,
insurance attempts to quantify such losses financially. Insurance can be defined as
the process of reimbursing or protecting a person from contingent risk of losses
through financial means, in return for relatively small, regular payments to the
insuring body or insurance company.
Insurance can range from life to medical to general (residential, commercial
property, natural incidents, burglary, etc).
Concept of Insurance / How Insurance Works
The concept behind insurance is that a group of people exposed to similar risk come together and
make contributions towards formation of a pool of funds. In case a person actually suffers a loss
on account of such risk, he is compensated out of the same pool of funds. Contribution to the
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pool is made by a group of people sharing common risks and collected by the insurance
companies in the form of premiums.
List of Life Insurers
Apart from Life Insurance Corporation, the public sector life insurer, there are 22 other private
sector life insurers, most of them joint ventures between Indian groups and global insurance
giants.
Life Insurer in Public Sector
1. Life Insurance Corporation of India
Life Insurers in Private Sector
1. SBI Life Insurance
2. Metlife India Life Insurance
3. ICICI Prudential Life Insurance
4. Bajaj Allianz Life
5. Max New York Life Insurance
6. Sahara Life Insurance
7. Tata AIG Life
8. HDFC Standard Life
9. Birla Sunlife
10.Kotak Life Insurance
11.Aviva Life Insurance
12.Reliance Life Insurance Company Limited- Formerly known as AMP Sanmar LIC
13. ING Vysya Life Insurance
14.Shriram Life Insurance
15.Bharti AXA Life Insurance Co Ltd
16.Future Generali Life Insurance Co Ltd
17. IDBI Fortis Life Insurance
18.AEGON Religare Life Insurance
19.DLF Pramerica Life Insurance
20.CANARA HSBC Oriental Bank of Commerce LIFE INSURANCE
21. India First Life insurance company limited
http://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_Indiahttp://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_Indiahttp://sbilife.co.in/http://sbilife.co.in/http://www.metlife.co.in/http://www.metlife.co.in/http://www.iciciprulife.com/public/default.htmhttp://www.iciciprulife.com/public/default.htmhttp://www.bajajallianzlife.co.in/http://www.bajajallianzlife.co.in/http://www.maxnewyorklife.com/http://www.maxnewyorklife.com/http://www.saharalife.com/http://www.saharalife.com/http://www.tata-aig-life.com/http://www.tata-aig-life.com/http://www.hdfclife.com/http://www.hdfclife.com/http://www.birlasunlife.com/http://www.birlasunlife.com/http://www.kotaklifeinsurance.com/http://www.kotaklifeinsurance.com/http://www.kotaklifeinsurance.com/http://www.avivaindia.com/http://www.avivaindia.com/http://www.avivaindia.com/http://en.wikipedia.org/wiki/Reliance_Life_Insurance_Company_Limitedhttp://en.wikipedia.org/wiki/Reliance_Life_Insurance_Company_Limitedhttp://en.wikipedia.org/wiki/Reliance_Life_Insurance_Company_Limitedhttp://www.inglife.co.in/http://www.inglife.co.in/http://www.inglife.co.in/http://www.bharti-axalife.com/http://www.bharti-axalife.com/http://www.bharti-axalife.com/http://en.wikipedia.org/wiki/IDBI_Fortis_Life_Insurancehttp://en.wikipedia.org/wiki/IDBI_Fortis_Life_Insurancehttp://en.wikipedia.org/wiki/IDBI_Fortis_Life_Insurancehttp://www.aegonreligare.com/http://www.aegonreligare.com/http://www.aegonreligare.com/http://www.canarahsbclife.com/http://www.canarahsbclife.com/http://www.canarahsbclife.com/http://www.canarahsbclife.com/http://www.aegonreligare.com/http://en.wikipedia.org/wiki/IDBI_Fortis_Life_Insurancehttp://www.bharti-axalife.com/http://www.inglife.co.in/http://en.wikipedia.org/wiki/Reliance_Life_Insurance_Company_Limitedhttp://www.avivaindia.com/http://www.kotaklifeinsurance.com/http://www.birlasunlife.com/http://www.hdfclife.com/http://www.tata-aig-life.com/http://www.saharalife.com/http://www.maxnewyorklife.com/http://www.bajajallianzlife.co.in/http://www.iciciprulife.com/public/default.htmhttp://www.metlife.co.in/http://sbilife.co.in/http://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_India -
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22.Star Union Dia-ichi Life Insurance Co. Ltd
Products Of Insurance:-
Life Insurance:-
It insures the life of the person buying the Life Insurance Certificate. Once a
Life Insurance is sold by a company then the company remains legally entitled to
make payment to the beneficiary after the death of the policy holder
Medical Insurance:-
This is also known as mediclaim. Here, the policy holder is entitled to receive
the amount spent for his health purposes from the insurance company.
General Insurance:-
This insurance type involves insuring the risks associated with the general life
such as automobiles, business related, natural incidents, commercial and residential
properties, etc.
INDIAN INSURANCE MARKETHISTORY
The insurance sector in India has come a full circle from being an open competitive
market to nationalization and back to a liberalized market again. Tracing the
developments in the Indian insurance sector reveals the 360-degree turn witnessed
over a period of almost two centuries.
A BRIEF HISTORY OF THE INSURANCE SECTOR:-
The business of life insurance in India in its existing form started in India in the year
1818 with the establishment of the Oriental Life Insurance Company in Calcutta.
Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute
to regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the
government to collect statistical information about both life and non-life
insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act
with the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by
the central government and nationalised. LIC formed by an Act of Parliament,
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viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the
Government of India.
The General insurance business in India, on the other hand, can trace its roots to the
Triton Insurance Company Ltd., the first general insurance company established in
the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to
transact all classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of
India, frames a code of conduct for ensuring fair conduct and sound business
practices.
1968: The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalisation) Act, 1972
nationalised the general insurance business in India with effect from 1st
January 1973.
107insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance Company
Ltd. GIC incorporated as a company.
Life Insurance is the fastest growing sector in India since 2000 as Government allowed Private
players and FDI up to 26%. Life Insurance in India was nationalised by incorporating Life
Insurance Corporation (LIC) in 1956. All private life insurance companies at that time were
taken over by LIC.
In 1993 the Government of Republic of India appointed RN Malhotra Committee to lay down a
road map for privatisation of the life insurance sector.
While the committee submitted its report in 1994, it took another six years before the enabling
legislation was passed in the year 2000, legislation amending theInsurance Actof 1938 and
legislating theInsurance Regulatory and Development Authority Actof 2000. The same year that
the newly appointed insurance regulator - Insurance Regulatory and Development Authority
IRDA --started issuing licenses to private life insurers.
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What is Consumer Buying Behaviour?
Consumer Buying Behaviour refers to the buying behavior of the ultimate consumer. A firm
needs to analyze buying behavior for:
Buyers reactions to a firms marketing strategy has a great impact on the firms success. The marketing concept stresses that a firm should create aMarketing Mix(MM) that
satisfies (gives utility to) customers, therefore need to analyze the what, where, when andhow consumers buy.
Marketers can better predict how consumers will respond to marketing strategies.
Buying Behavior is the decision processes and acts of people involved in buying
and using products.
Stages of Consumer Buying Behaviour
There are six stages of consumer buying behaviour
The 6 stages are:
1. Problem Recognition(awareness of need)--difference between the desired state and theactual condition. Deficit in assortment of products. Hunger--Food. Hunger stimulatesyour need to eat.Can be stimulated by the marketer through product information--did not know you were
deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition thatyou need a new pair of shoes.
2.Information search--
o Internal search, memory.o External search if you need more information. Friends and relatives (word of
mouth). Marketer dominated sources; comparison shopping; public sources etc.
A successful information search leaves a buyer with possible alternatives, the evoked set.
Hungry, want to go out and eat, evoked set is
o Chinese foodo Indian foodo Burger king etc
3.Evaluation of Alternatives--need to establish criteria for evaluation, features the buyerwants or does not want. Rank/weight alternatives or resume search. May decide that you
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want to eat something spicy, Indian gets highest rank etc.If not satisfied with your choice then returns to the search phase. Can you think of anotherrestaurant? Look in the yellow pages etc. Information from different sources may be treateddifferently. Marketers try to influence by "framing" alternatives.
4.Purchase decision--Choose buying alternative, includes product, package, store, method ofpurchase etc.
5.Purchase--May differ from decision, time lapse between 4 & 5, product availability.
6.Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. CognitiveDissonance, have you made the right decision. This can be reduced by warranties, after salescommunication etc.After eating an Indian meal, may think that really you wanted a Chinese meal instead.
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Company Profile
MetLife: A Life Insurance Giant:-
With over 140 years of experience in Insurance business Metlife has been named by
Forbes as the Best Managed Insurance Co. in the Industry for 2008, an honour
based on the track record of the financial performance, innovation,
leadership and execution shown by Metlife over years.Metlife has also been ranked 43 on the Fortune 500(2008), the MetLife
27 companies are one of the worlds largest, strongest and most respected financial
organizations. To add to its cap is another feather in the form of its No.1 ranking in
several group product areas, including life, disability, auto and home, as well as
institutional annuities.
Metlife serves over 90 of the top 100 FORTUNE 500 companies. It has around
$558.6 Billion Assets under Management, more than 49,400 employees worldwide
and more than 70 million customers around the world.
Metlife is a truely global organization with distribution access to over 47 countries,
some of which include The Americas (Argentina,Brazil,Chile,Mexico, United States,
Uruguay);(EMEIA) (Belgium,Ireland, Poland, UK (3), India);Asia Pacific (Australia,
China, Hong Kong, Japan, South Korea, Taiwan)
MetLife India Insurance Company Limited (MetLife):-
MetLife or Metropolitan Life Insurance Company, an MNC founded on March 24,1868. .
MetLife entered Indian insurance sector in 2001 and is now ranked 88th on the "FORTUNE 500
companies" list. MetLife India Insurance Co. Pvt. Ltd is a joint venture between MetLife
International Holdings Inc. and its Indian partners including J&K Bank, M. Pallonji and Co,
Karnataka Bank, Karvy Consultants, Geojit Securities, Way2Wealth, Bonanza Insurance (Pvt)
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Ltd. and Mini Muthoothu with 25% stake in the hands of MetLife International and the
remaining 75% stake with its Indian Partners.
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 inforce), 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 in India enjoys a Pan India Geographical Presence with over 192 branches in
over 131 cities. The company was incorporated in 2001 and is based in Bangalore,India with a
registered office in Gurgaon, India. The company, which started its operations in India in the
year 2002, is today one of the fastest growing life insurance companies in the country, with a
presence in over 690 locations and a market share of 3.5%.
Performance of MetLife based on Key Parameters
Parameters 2008 August 2011
Offices 49 131
Agency Units 101 277
Paid Up capital( in crores) 536 1480
AFYP (in Crores) 220 555.2
Market share 1.8% 3.5%
Banca tie ups 3 5
Agent base
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Name of the company : MetLife India Insurance Co.Ltd
Address : B-8, Gujrawala town, Opp.Model Town-II
New delhi-110009
Telephone number : +91-11-39815400
Email address : www.metlife.co.in
Registered Office
MetLife India Insurance Company Limited.
5th Floor Orchid Centre Golf Course Road Sector 53
Gurgaon
Phone : 0124-4179000
Fax : 0124-2572748
Pin : 122002
Company Vision and mission
To build financial freedom for everyone. To be recognized as the financial services firm of choice in the communities we serve,
today and tomorrow
Goals Of MetLife India
Our ultimate goal at MetLife India, simple in concept and impressive in breadth, is to build
financial freedom for our customers. For our customers that means providing products and
services that allow them to enjoy life and trust in the fact that we will be there for them
.
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MetLife: Core Values
"Coming into your own", are
performing as a Leader to be
really effective and successful by
acting and making decisions
independently to get results.
It's all about People, MetLife's key
resource. MetLife will succeed
because we are winning from
within.
Functioning productively in teams
towards a common purpose;
realizing the collective power of
diverse work-groups.
Operating with an intense
dedication to managing monetary
resources for strong business
results.
Conducting all business
endeavors with truth, sincerity
and fairness.
Continuously creating and
introducing new and original
ideas and ways of doing things.
Products range of the company:-
An individual buy an insurance product to meet its various requirements such as for planning for
his child`s education or his marriage or for his own retirement so that he can lead the same
standard of life even when he is not working without any tension and uncertainty and thus
making his as well as his family`s future secured and making his financial condition strong.
MetLife provides highly customized financial solutions to individuals as each human being has
his own sets of needs and requirements which may differs from others.
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Protection Plans
You stay cool when your beloveds are safe. Maintain the cool demeanour and cover yourself and
your beloveds with protection plans. MetLife offers:
Met Suraksha Met Suraksha TROP
Met Suraksha Plus
Met Mortgage Protector Plus
Savings Plan
Life becomes meaningful when you materialize your dream. A beautiful house, a car or a
comfortable life in general-all these are obvious aspirations of a person. Never let tenuous
savings keep you away from your dreams. Take up a savings plan and drive your life as you
wish. Savings plans by MetLife are enlisted here:
Met Sukh
Met Suvidha
Met Saral
Met 100
Investment Plans
Life is ever changing. You go through different phases of life and the needs and requirements of
your family keep changing with time. Investment plans help you reach the best of your life,
always. Investment plans offered by MetLife are given below:
Met Smart Platinum
Met Smart one
Met Easy Super
Child Plans
Children grow fast and their educational requirement grows even faster. Child plans are designed
for those parents who plan the future of their children. The child plans at MetLife are:
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Met Bhavishya
Met Junior Endowment
Met Junior Money Back
Retirement Plans
Pension plans are the key to a happy post-retirement life. To this end, MetLife offers "Met
Pension Par" so that you continue to live your life the way you want to-even after retirement.
Health Plans
People often insure their house, vehicles and properties, invest for their retirement and plan for
the educational requirement of their children but overlook health. Considering health only when
something goes wrong in not a very healthy practice! MetLife offers "Met Health Care" so that
you stay prepared for whatever comes your way with respect to your, and your family's, health.
Rural Plans
The soul of India lives in its villages. And hence, MetLife takes special care for rural people by
way of special plans. Improper financial planning often wrecks havoc for the rural population.
These rural plans are designed to help the villagers live a tension-free life with profitable
investments.
Met Vishwas
Met Suvidha
Met Grameen Ashray
Monthly Income Plan
This is a special plan which is designed to create a monthly income for the policy holders. This
plan ensures guaranteed monthly income on a regular basis. Lump sum bonus is awarded at the
completion of the term. The monthly plans offered by MetLife are:
Met monthly Income Plan
Met Monthly Income Plan 7 Pay
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Group Plans
Met life offers group insurance policies ideal for corporate and other organizations. These plans
are designed to offer maximum benefits to the policy holders.
Met Loan Assure Met Group Life
Met Flexi shield
Met Group deposit Administration Scheme
Met Group Gratuity
Size of Organization (Manpower and Turnover)
MetLife India has 277 branches spread across 181 cities in India having skilled and dedicated
staff of around 40 thousand. It posted a net profit of 353.5 mn for the financial year ended
March31,2011.The company registered flat total revenue at Rs.26.95 bn for the financial year
ended March 31,2011.The renewal income has also witnessed a 22% jump. Positioned as a long
term player, the company has developed a strong corporate governance model based on the core
values of personal responsibility, people count, partnership, integrity and honesty, innovation
and financial strength.
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Met Life Partners:-
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MetLife India Management Structure
Rajesh Relan -Managing Director
Phanesh M S V S Appointed Actuary
Girish Malhotra Director - Agency
Nick Taket -Chief Financial Officer
Sameer Bansal Director - BA & BP
K R Anil Kumar Director - Financial Planning & Controller
Sankaran P S Director - Business Support
K S Raghavan Chief Administrative Officer
Gaurav Sharma Director - Customer Service & Operations
Amita Maheshwari Director - Human Resources
Preetinder Chadha Deputy Director - Corporate Sales & Sales Training
Vijay Raghavan Director - Marketing & Strategy
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Metlife appoints Rajesh Relan as India Country Manager
MetLife announced the appointment of Rajesh Relan as Country Manager and Managing
Director for India succeeding Venky Mysore who will take on expanded responsibilities in a role
supportingMetLife's International business. Mr. Relan's appointment is subject to regulatory
approvals by the IRDA but has received the unanimous support of the company's shareholders.
With those approvals, Mr. Relan should take over his new responsibilities on July 1, 2006.
Mr. Relan was formerly with Aviva Plc where he was a member of that company's start up team.
There as the Director - Banc assurance and Business Partnerships, he was responsible for sales
and strategy. This included path-breaking work done on developing the channel into a
sustainable business model for the industry. In this role, he was also responsible for launching
their business in the Middle East and the Sri Lankan markets and has worked on developing the
pensions capabilities for that organization.
Market share and position of the company.
MetLife India has a market share of 3.5%.Among the 23 insurance MetLife India is ranked
13th.With planned stratergies,skilled work force and new partners, the company plan to be among
the top leading life insurance companies over the next 3 to 5 years.
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Chapter-2
2.1 OBJECTIVES OF STUDY
To determine Customers preference forLife Insurance To study the preference of the customer among the selected private
insurance companies viz. Bajaj Allianz, ICICI Prudential, Reliance Life as
compared to Metlife India.
To determine the parameters on which the life insurance plans ofMETLIFE need
Improvement
To find out whether people were really aware of life insurance.
2.2 RESEARCH METHODOLOGY OF THE STUDY:
The basic concept ofresearch methodologyrefers to the way in which companies conduct
their research and how they collect the data they need. Whenever a company or organization
needs to investigate a particular area of theirbusinessdealings, they need to adapt the most
suitable research methodology for the job.
Research methodology typically involves a full breakdown of all the options that have been
chosen by a company in order to investigate something. This would include the procedures and
techniques used to perform the research; as well as any of the terminology and explanations of
how these methods will be applied effectively.
A company may need to decide what format of research they want to use before the investigation
begins. For example, if a company that sells a particular product needs to launch research to findout how effective or desirable a new product is, they will need to conduct what is known as
primary research. This method means that the company will collect data and information
themselves first hand.
However, research methodology is not always pin-point specific. Many areas of research
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methodology may simply be referring to a generic path or method that a company will apply in
order to retrieve the information they need.
Research methodology is the way in which researchers specify how they are going to retrieve the
all-important data and information that companies will need to make vital decisions
2.2.1 RESEARCH METHODOLOGY:
Research Design : Descriptive Research
Research Instrument : Structured, un-disguised, close ended
Sample Method : Non-Probability Sampling
Sample Size : 50
Sampling Design : Convenience Sampling
Sources of Data
Primary Data : Structured close ended Questionnaire
Secondary Data : Reference from Internet and Brochures
The whole study is based upon primary and secondary data. Therefore, information has been
collected from interacting with different policy holders and from various magazines, journalsand websites.
2.2.2 METHOD USED IN COLLECTION OF DATA:
1. Personal Interview: In personal interview, the investigator questions the respondents in
a face-to-face meeting. Personal interviews were conducted on a personal visit basis in
public offices. The usual approach for the interviewer is to identify himself to a potential
respondent and attempt to secure the respondent's co-operation in answering a list of
predetermined questions. These answers may be written down by the interviewer.
Advantages
a) It requires relatively shorter period of time to complete.
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b) The amount of information procured on each aspect is larger.
c) Researcher can procure many different types of information.
d) The results can be projected to the relevant universe with a greater degree of accuracy.
Disadvantages
a) The cost per completed interview is relatively higher as compared to other methods.
b) The investigator may have to face relatively more difficulties in administering the
interview schedule.
c) The investigators themselves may involve in cheating which is very difficult to detect.
2.2.3 RESEARCH DESIGN
Research designs are concerned with turning theresearch questioninto a testing project. The
best design depends on your research questions. Every design has its positive and negative sides.
The research design has been considered as a "blueprint" for research, dealing with at least four
problems: what questions to study, what data are relevant, what data to collect, and how to
analyze the results. In my project report I have used the method of Descriptive Research to
further provide a detailed description about the subject matter on which I am focusing.
Descriptive research design is a scientific method which involves observing and describing the
behavior of a subject without influencing it in any way. Many scientific disciplines, especially
social science and psychology, use this method to obtain a general overview of the subject .
2.2.3.2 Sample Size
The sample size taken in the project work is 100. The area selected was Rohini, Vikas Puri and
its adjoining areas.
Convenience sampling method was used in this study because of the constraints like cost and
time.
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2.2.3.3 TYPE OF SAMPLING USED:
I used non-probability type of sampling.
In non-probability sampling, the chance of any particular unit in the population being selected is
unknown. Since randomness is not involved in the selection process, an estimate of the sampling
error cannot be made. But this does not mean that the findings obtained from non-probability
sampling are of questionable value. If properly conducted their findings can be as accurate as
those obtained from probability sampling.
Convenience Sampling
As the name implies, a convenience sample is one chosen purely for expedience (e.g., items are
selected because they are easy or cheap to find and measure.
While few analysts would find credibility in conclusions from such extreme cases, the
inappropriateness of using convenience sampling to estimate universe values is not widely
recognized. The major problem with this (and other non-probability method) is that one is
unable to draw objective inference about a rigorously defined universe. In practice, it is often
found that the response given by "convenient" items in a universe differ significantly from the
responses given by universe items that are less accessible. As a result, unless one is dealing with
a known highly homogeneous universe (virtually all items responding alike), convenience
sampling should not be used to estimate universe values.
2.2.4 INSTRUMENT FOR COLLECTING DATA:
PERSONAL INTERVIEW IN STRUCTURED FORM QUESTIONNAIRE
A structured interview(also known as a standardized interview or a researcher-
administered survey) is a quantitative research method commonly employed in survey research.
The aim of this approach is to ensure that each interview is presented with exactly the same
questions in the same order. This ensures that answers can be reliably aggregated and that
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comparisons can be made with confidence between sample subgroups or between different
survey periods.
Structured interviews are a means of collecting data for a statistical survey. In this case, the data
is collected by an interviewer rather than through a self-administered questionnaire. Interviewers
read the questions exactly as they appear on the survey questionnaire. The choice of answers to
the questions is often fixed (close-ended) in advance, though open-ended questions can also be
included within a structured interview.
A close ended questionnaire is one in which the respondent has a limited choice to answer from.
There are a fixed number of choices for every respondent. A respondent cannot give a different
answer from the ones mentioned.
2.2.5 LIMITATIONS:
Some of the difficulties and limitations faced by me during my training are as
follows:
1. Lack of awareness among the peopleThis is the biggest limitation
found in this sector. Most of the people are not aware about the importance
and the necessity of the insurance in their life. They are not aware how
useful life insurance can be for their family members if something happens
to them.2. Perception of the people towards Insurance sectorPeople still
consider insurance just as a Tax saving device. So today also there is
always a rush to buy an Insurance Policy only at the end of the financial year
like January, February and March making the other 9 months dry for this
business.
3. Insurance does not give good returnsStill today people think that
Insurance does not give good returns. They are not aware of the modern
Unit Linked Insurance Plans which are offered by most of the Private sector
players. They are still under the perception that if they take Insurance they
will get only 5-6% returns which is not true nowadays. Nowadays most of the
modern Unit Linked Insurance Plans gives returns which are many times
more than that of bank Fixed deposits, National saving certificate, Post office
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deposits and Public provident fund.
4. Lack of awareness about the earning opportunity in the Insurance
SectorPeople still today are not aware about the earning opportunity that
the Insurance sector gives. After the privatization of the insurance sector
many private giants have entered the insurance sector. These private
companies in order to beat the competition and to increase their Insurance
Advisors to increase their reach to the customers are giving very high
commission rates but people are not aware of that.
Others:-
Time constraints
Small sample size
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SWOT ANALYSIS
STRENGTHS:-
1. Distribution network is wide as
compared to others.
2. Met life has a unique service & scheme.
3. Healthy relationship with customer.4. Good commission in selling of product.
5. Varied range of products &
services
WEAKNESSES:-
1. Comparatively less awareness in the
market
2. Delivery problem
3. Cases of fraud and cheat withcustomers
OPPORTUNITIES:-
1. Product is different as compare to others
2. Rural area is untapped
3.Diversifying portfolios for
customers
4.Acquisitions and JVs
s.New Emerging markets
THREATS:-
1. Competitors are offering better
services
2.Changing government
regulations and financial crisis like
recessions
3.Natural disasters
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Why Met Life Insurance should be your first choice?
Met Life Insurance presents a very innovative plan for the entire family including
children,dependant parents and in-laws too. Met Life Insurance cares for you and
assures to stand by you during those difficult times of physical and mental stress
so that you are able to be hassle free during your & your family's health relatedemergencies by providing you with a 3 year health cover with guaranteed
renewability and guaranteed renewable discount plus a guarantee of fixed premium
for 3 years. We also cover Pre-existing illnesses after 4 continuous years of
membership and Maternity Benefit under family floater cover. You and your
family members will have guaranteed coverage upto the age of 75 years (21 years
in case of children) irrespective of claim experience and change in your health
condition.
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Data Analysis And Interpretation
1.Do you think Insurance is Important?
Particulars No. Of Respondents Percentage
Yes 93 93
No 7 7
TOTAL 100 100
Particulars*Respondent Sex Cross tabulation
Particulars Respondents Sex Total
Male Female
Yes 57 36 93
No 3 4 7TOTAL 60 40 100
Particulars*Respondent Age Cross tabulation
Particulars Respondents Age Total
18-25 26-35
36-45
46 &
Above
Yes 16 38 29 10 93
No 4 2 1 0 7TOTAL 20 40 30 10 100
Particulars*Respondent Occupation Cross tabulation
Particulars Respondents Occupation Total
Service Busine
ss
Profession
al
Self
Employ
ee
Retire
d
Other
sYes 59 7 9 3 7 8 93
No 1 1 1 2 0 2 7
TOTAL 60 8 10 5 7 10 100
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NO. Of Respondents
93%
7%
Yes
No
Particulars*Respondent Income Cross tabulation
Particulars Respondents Income Total
0-1.5
lac
1.5-3 lac 3-5
lac
5 lac
&Above
Yes 8 59 11 15 93
No 2 1 2 2 7TOTAL 10 60 13 17 100
ANALYSIS:
From the survey it was found that amongst 100 respondents
a) 93% of the respondents say Insurance is Important.
b) 7% of the respondents say Insurance is not important.
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2.Are you currently insured?
Particulars No. of Respondents Percentage
Yes 90 90
No 10 10
TOTAL 100 100
Particulars*Respondent Sex Cross tabulation
Particulars Respondents Sex Total
Male Female
Yes 55 35 90
No 5 5 10
TOTAL 60 40 100
No. Of Respondents
Yes
90%
No10%
ANALYSIS:
From the survey it was found that amongst 100 respondents
a) 90% of the respondents say that they are currently insured.
b) 10% of the respondents say that they are not currently insured.
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3. What factors do you consider for choosing an Insurance policy? Please rank in
order of preference on a 1 to 6 scale.
Particulars No. of Respondents Percentage
Brand Name 10 10
Service 16 16
Advisor 24 24
Policy Scheme 15 15
Term of the plan 10 10
Return of the plan 25 25
TOTAL 100 100
Factors of Insurance
10
16
24
15
10
25
0 10 20 30
Brand Name
Service
Advisor
Policy Scheme
Term of the plan
Return of the plan
No.Of Respondents
NO. OF
RESPONDENTS
ANALYSIS:
From the survey it was found that amongst 100 respondents
a) 10% of the respondents say that the factor consider of Insurance is Brand Name.b) 16% of the respondents say that the factor consider of Insurance is Service
c) 24% of the respondents say that the factor consider of Insurance is Advisor
d) 15% of the respondents say that the factor consider of Insurance is Policy scheme.
e) 10% of the respondents say that the factor consider of Insurance is Term of the plan.
f) 25% of the respondents say that the factor consider of Insurance is Return of the plan.
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4. Do you have any idea about the amount of Insurance you require
Particulars No. of Respondents Percentage
Yes 55 55
No 45 45
TOTAL 100 100
No. Of Respondents
Yes
55%
No
45%Yes
No
PARTICULARS Respondents Sex Total
Male Female
Yes 45 10 55
No 45 30 45
TOTAL 60 40 100
ANALYSIS:
From the survey it was found that amongst 100 respondents
a) 55% of the respondents say that they know the amount of Insurance they require.
b) 45% of the respondents say that they have no idea about the amount of Insurance they require.
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5. Do you know about the MetLife India Life Insurance Policy?
Particulars No. of Respondents Percentage
Yes 60 60
No 40 40
TOTAL 100 100
Particulars*Respondent Sex Cross tabulation
PARTICULARS Respondents Sex Total
Male Female
Yes 35 25 60
No 25 15 40
TOTAL 60 40 100
No. Of Respondents
60%
40%
Yes
No
ANALYSIS:
From the survey it was found that amongst 50 respondents
a) 60% of the respondents say that they know about the MetLife India LifeInsurance Policy.
b) 40% of the respondents say that they dont know about the MetLife India Life Insurance
policy .
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6. Please rank following Insurance Company in order of your preference on a
1 to 8 scale.
Particulars No. of Respondents PercentageMetLife 7 7
ICICI Prudential 10 10
HDFC 8 8
Birla sun life 5 5
Bajaj Allianz 11 11
LIC 46 46
Tata AIG 6 6
Reliance Capital 7 7
TOTAL 100 100
05
101520253035404550
MetLife
ICIC
IPruden
tial
HDFC
Birla
sunlife
BajajAll
ianz
LIC
TataAIG
Relia
nceCap
ital
Insurance Companise
No.OfRespondents
ANALYSIS:
From the survey it was found that amongst 50 respondents
a) 7% of the respondents likes MetLife. b) 10% of the respondents likes ICICI.
c) 8% of the respondents likes HDFC. d) 5% of the respondents likes Birla Sun
Life.
e)11% of the respondents likes Bajaj Allianz.
f) 46% of the respondents likes LIC
g) 6% of the respondents likes Tata AIG
h) 7% of the respondents likes Reliance Capital
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7. What is the purpose of Insurance?
Particulars No. of Respondents Percentage
A tax saving plan 43 43
A tax saving scheme with good return 17 17
A financial security for the family. 14 14
Risk coverage 10 10
All the above 16 16
TOTAL 100 100
Particulars*Respondent Occupation Cross tabulation
Particulars Respondents Occupation Total
Service Business Professional
Self
Employee Retired
Others
A tax saving plan 35 0 3 2 0 3 43
A tax saving scheme
with good return 10 3 1 1 1 1 17
A financial security
for the family.
11 0
0
0 0 3
14
Risk coverage2 2
30 2 1
10All the above 2 3 3 2 4 2 16
TOTAL 60 8 10 5 7 10 100
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0
5
10
15
20
25
30
35
40
45
1
No.of Respondents
Purpose of Insurance
A tax saving plan
A tax saving
scheme with good
return
A financial
security for the
family.
Risk coverage
All the above
ANALYSIS:
From the survey it was found that amongst 100 respondents
a) 12% of the respondents say that they prefer Term Insurance.
b) 19% of the respondents say that they prefer Child policy
c) 8% of the respondents say that they prefer Endowment policy.
. d) 2% of the respondents say that they prefer Retirement policy
e) 31% of the respondents say that they prefer Money back policy
f) 28% of the respondents say that they prefer ULIP
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8. Does your agent provide adequate information about the policy?
Particulars No. of Respondents Percentage
Yes 70 70
No 30 30
TOTAL 100 100
Particulars Respondents Sex Total
Male Female
Yes 35 35 70
No 25 5 30
TOTAL 60 40 100
NO. Of Respondents
70%
30%Yes
No
ANALYSIS:
From the survey it was found that amongst 50 respondents
a) 70% of the respondents say that their agent provides adequate information
about the policy.
b) 30% of the respondents say that their dont agent dont provides adequate
information about the policy
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9. How will you prefer to buy an Insurance Policy?
Particulars No. of Respondents PercentageDirect from company 21 21
Broker 11 11
Agent 68 68
TOTAL 100 100
Particulars*Respondent Income Cross tabulation
Particulars Respondents Income Total0-1.5 lac 1.5-3 lac
3-5 lac5 lac &Above
Direct from company 2 8 3 8 21Broker 1 6 2 2 11
Agent 7 46 8 7 68
TOTAL 10 60 13 17 100
10. Which type of return do you prefer?
NO. Of Respondents
21%
11%
68%
Direct from
company
Broker
Agent
ANALYSIS:
From the survey it was found that amongst 50 respondents
a) 21% of the respondents say that they prefer to buy an Insurance Policy direct from
company . .
b)11% of the respondents say that they prefer to buy an Insurance Policy
from Broker.
c) 68% of the respondents say that they prefer to buy an Insurance Policy
from Agent.
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11. Are you satisfied with?
Particulars No. of Respondents PercentageReturn On Investment Yes 79 79
No 21 21
TOTAL 100 100
Company service Yes 86 86
No 14 14
TOTAL 100 100
Agent service Yes 89 89
No 11 11
TOTAL 100 100Process & Scheme Yes 71 71
No 29 29
TOTAL 100 100
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FINDINGS
On an analysis and evaluation of the data collected from the respondents the
following findings were found:
there is a wide scope for private concerns to enter in to market.
Total 100 respondents have been approached out of which 75 are thepotential respondents who have shown interest for investment and financeplan.
About 18% of respondents are not interest to give their personal records.
About 52% of respondents have already been covered by other insurancecompanies.
About 10% of respondents have given invalid records.
About 10% of respondents are newly employed or trainees.
About 10% of respondents interested for investment plan after knowingMetLife India Insurance Co. Ltd.products.
cover while only a few of the respondent take it as a saving option. Thereason for this is lack of knowledge of insurance benefits among the people.
A Majority of the respondent buy insurance products because of the needreason while rest of the respondents buy for the brand purpose.
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