summer training report- mukesh kumar
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ASUMMAR TRAINING PROJECT
REPORTON
Distribution Analysis and AgencyBusiness
AVIVA LIFE INSURANCECOMPANY
THE PARTIAL FULLFILLMENT OF THE REQUIREMENTFOR THE AWARD OF THE DEGREE OFMASTER OF BUSINESS ADMINISTRATION
UNDER THE KIND SUBMITTEDBY:GUIDENCE OF: MUKESHKUMARMISS. DUPINDER KAUR Roll No
90212233193
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LECTURER (CTIMS) MBA 3RD
(SEM.)SHAHPUR JALANDHAR
(SESSION 2009-2011)
SUBMITTED TO:CT.INSTITUTE OF MANAGEMENT STUDIES JALANDHAR
(AFFILATE TO PUNJAB TECHNICAL UNIVERSITY JALANDHAR (PUNJAB)
STUDENT DECLARATION
I hereby declare that the work presented in this projectentitled Distribution analysis of agency businesswith Aviva life insurance company submittedtowards completion of project in started 3rd semester ofM.B.A at the CT Institute of Management StudiesShahpur Jalandhar, is an authentic record of myoriginal work carried out under the guidance of lecturerMiss Dupinder kaur .I hereby declare that all the information given by me in
this project is true to the best of my knowledge.
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MUKESH KUMAR
GUIDE CERTIFICATE
This is to certify that Mukesh kumar of MBA 3rd
semester bearing university roll no 90212233193 hascompleted his summer training project under myguidance.
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Project Guide
Miss Dupinder
Kaur
ACKNOWLEDGMENT
Nothing concrete can be achieved without an optimal
combination inspiration and preparation. No work can be
accompanied without taken the guidance of experts. It is
only critics from in generous that help transform a
product into a quality product.
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For this, I am grateful to Mr. Shive Nair Narayan for his
constant encouragement and invaluable critical
suggestions given during the review meetings. His timely
advice and help proved his commitment and welfare of
his students and the institute as a whole.
Last but not the least, our sincere thanks to all the
members who were a vital trust to our thoughts and
needs throughout the functions assigned to group to get
done and prove our best. Finally thanks to others at
CTIMS, who put in numerous hours to make the tangible.
INDEX
Chap. No TOPICS PAGENO
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1 INTRODUCTION 9-16
2 STUDY TOPIC- DISTRIBUTION ANALYSISAND AGENCY BUSINESS
17-38
3 REVIEW OF LITERATURE 39-50
4 OBJECT NEED AND SCOPE OF STUDY 51-53
5 RESEARCH METHODOLOGY 54-56
6 DATA ANALYSIS & INTERPRETATION 56-65
7 SUGESTION AND RECOMMANDATION 66-68
8 ANNEXURE 69-72
9 BIBLIOGRAPHY 73-74
TABLE LIST
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Sr.No Table no Page No
1. Figure no -1.1 58
2. Figure no -1.2 59
3. Figure no -1.3 60
4. Figure no -1.4 61
5. Figure no -1.5 62
6. Figure no -1.6 63
7. Figure no -1.7 64
8. Figure no -1.8 65
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EXECUTIVE SUMMARY
I have done my summer Internship Project from Aviva life
insurance company India Limited, Jalandhar. During my Winter
Internship Project; I implemented many concepts of marketing in
the real life situation.
This project work helped me to apply theoretical knowledge
into practical aspects on collected data which was a worthy
experience and during the discussion with company guide I
realized that how important the project report is for the company
and me. I also realized how team work, goal orientation and
managing interpersonal relationships are integral part of
professional life.
In addition, I understood products of my company and its
targeted customers. Also I got information what are the basic
categories of Insurance products which are sold in the market
and what are basic criteria for becoming the advisors of Aviva life
insurance Company limited.
I understood about the competitors of my company such as
TATA AIG, Bajaj Allianz, MetLife etc and their products, after
collecting data and analyzing it. There are a lot of insurers from
both home and abroad, coming to Indian insurance market with
their innovative products and services, which were previously not
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available to the individuals. What came as a boon for insurance
was
a paradigm shift in consumer perception and preference due to a
rainbow of benefits for exigencies like critical illness, disability
and Accidental death, which were unthinkable. As my project
titled Distribution Analysis and Agency Business in
this topic I studied so many things I Studied the customer
preferences towards for becoming advisors of Aviva Life
Insurance Company & Recruitment of Insurance advisors re-
questionnaire a full understanding of the organizations goals and
mission. Since Aviva believes in getting business from its team of
unit managers, the advisors who are working under the unit
managers are re-questionnaires to deliver their best. The unit
managers the key activity is to recruit Insurance advisors. These
advisors are the individual agents. The key areas of work are to
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build a team, arrange for their training at the organization,
company them on their visits to clients and most importantly
motivate them.
In this regard the team of advisors with which each
unit manager works with is carefully chosen and this indeed
becomes a monthly task.
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INTRODUCTION
Aviva Life Insurance Company Limited was incorporated on July20, 2000. The authorized capital of the company is Rs.2300Million and the paid up capital is Rs. 1500 Million. The Company isa joint venture of Dabur (74%) and Aviva UK (26%).
The Company was granted Certificate of Registration for carryingout Life Insurance business, by the Insurance Regulatory andDevelopment Authority on may 24, 2002. It commencedcommercial operations on june 1, 2002, becoming one of the first
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few private sector players to enter the liberalized arena.
The Company is now operational in Mumbai, New Delhi, Pune,Chennai, Kolkata, Bangalore, Chandigarh, Ahmedabad,
Hyderabad, Lucknow, Nasik, Jaipur, Cochin, Meerut, Mangalore,Ludhiana & Jalandhar.
Till March 31,2002 the Company has issued 100,000 policestranslating into a Premium Income of around Rs. 1,200 Millionand a sum assured of over Rs.15,000 Million.
The Company recognizes that the driving force for gaining
sustainable competitive advantage in this business is superiorcustomer experience and investment behind the brand. TheCompany aims to achieve this by striving to provide world classservice levels through constant innovation in products,distribution channels and technology based delivery. TheCompany has already taken significant steps to achieve thisgoal..
Vision and Mission
Their vision is to make Aviva Life Insurance Company thedominant new insurer in the life insurance industry. They hopethey achieve their goals and targets through their commitment toexcellence, focus on service, speed and innovation, andleveraging our technological expertise.
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The success of the Organization will be founded on its strongfocus on values and clarity of purpose. These include:
Understanding the needs of customers and offering themsuperior products and service
Building long lasting relationships with their partners
Providing an enabling environment to foster growth and
Learning for their employees.
Management
Board of Directors
The AVIVA Life Insurance Company Limited Board comprisesreputed people from the finance industry both from India andabroad.
Name Designation
TR Ramachandran Chief Executive Officer & Managing Director
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Rajeev Arora Director, Finance & Actuarial
Monica Agrawal Director, Corporate Initiatives
Vishal Gupta Director, Marketing
Sumit Behl Director, Business Risk & Internal Audit
Ravi BhadaniCompany Secretary and Senior Vice President- Compliance &Legal
Munish Sharda Director, Direct Sales Force
Rishi Piparaiya Director, Bancassurance
Sandip Mallik Director, HR
Jyoti Vaswani Chief Investment Officer & Director, Fund Management
K K Dharni Appointed Actuary
Snehil Gambhir Sr. Vice President, Transformation & Services
Rajiv Sehgal Chief Information Officer & Sr, Vice President, IT
Vijayalakshmi Natarajan Senior Vice President, Operations
Corporate Office:
Aviva life insurance company India Ltd
Aviva tower sector road opp.course DLF phase-5
Sector 43 Gurgaon 122003
Telephone Number: 1800-180-2244 or 0124-2709046
SMS AVIVA to 5676737
Website: http://www.Aviva india.com
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Claiming process
Aviva life insurance is committed to securing the future of
your loved ones, particularly in their time of need. Towards this
end, we have developed and implemented a claim process to
ensure the payment of genuine and legitimate claims at the
earliest and to without false claim to protect the interests of our
other policyholders.
In line with our philosophy of easing the financial burden on
policyholders and their nominees AVIVA insurance with make a
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claim payment within a working days from receipt of the last re-
questionnaires.
Claim process
Documentation
Forms
Claim Process :-
Our claim is
1. Handled personally
2. Easy to understand
3. Flexible enough for speedy decisions.
4. Simple documentation
Aviva have four step claim process
1. Claim out to intimate to Aviva insurance about the
claim.
2. Aviva life insurance to help the claim out to complete
the documentation.
3. Claim out to submit the questionnaire documents.
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4. Aviva insurance company to take decision on the claim.
Documentation:
Standard documents re-questionnaire for claim
processing.
Written intimation of the claim.
Original policy document.
Death certificate / hospital certificates.
Claimants statements with discharge form.
Depending on the facts and circumstances of the claim, the
company may requestionnaires for some additional
documents.
Forms
The form below will help you file action
Critical illness/major surgical Assistance intimation.
Death claim intimation.
Claimants statements (Accidental death claim)
Claimants statements (Non- Accidental death claim)
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Insurance Solutions for Individuals
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Aviva life insurance has a wide array of insurance plans that have
been designed with the philosophy that different individuals are
bound to have differing insurance needs.
The ideal insurance plan is one that addresses the exact
insurance needs of the individual that will depend on the age and
life stage of the individual apart from a host of other factors.
Savings & Wealth Creation Solutions
Wealth Creation Plans give the customer the dual benefit of
protection along with the potentially higher returns of market-
linked instruments. The most important benefit of ULIPs is the
flexibility they give the customer in choosing the premium
amount and also choosing the underlying fund in which this
money is to be invested. Wealth creation plans also offer the
customer more liquestionuidity options as compared to
traditional plans. As such,
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ULIPs are ideal for customers who want the protection of a life
cover to be allied to the returns of market linked instrument
giving them an unmatched combination of benefits.
Cash Plus is a transparent, feature-packed savings plan that
offers 3 levels of p33333rotection as well as liquestionuidity
options.
SavenProtect is a traditional endowment savings plan that
offers life protection along with adequestionuate returns.
CashBack is an anticipated endowment policy ideal for
meeting milestone expenses like a childs marriage, expenses for
a childs higher education or purchase of an asset. It is available
for terms of 15 and 20 years.
LifeTime Super & LifeTime Plus are unit-linked plans that
offer customers the flexibility and control to customize the policy
to meet the changing needs at different life stages. Each offer 4
fund options ? Preserver, Protector, Balancer and Maximiser.
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Life Link Super is a single premium unit linked insurance Plan
which combines life insurance cover with the opportunity to stay
invested in the stock market.
Premier Life Gold is a limited premium paying plan specially
structured for long-term wealth creation.
Invest Shield Life New is a unit linked plan that provides
premium guarantee on the invested premiums and ensures that
the customer receives only the benefits of fund appreciation
without any of the risks of depreciation.
Invest Shield Cash back is a unit linked plan that provides
premium guarantee on the invested premiums along with flexible
liquestionuidity options.
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Protection Solutions
The sole objective of these plans, as their name indicates, is to
serve the protection needs of the customer and by doing so,
safeguard ones family from the financial implications of
unfortunate circumstances than one cannot foresee.
Under the Protection Plans platform, Aviva life insurance brings
the following products:
Life Guard is a protection plan, which offers life cover at very
low cost. It is available in 3 options level term assurance, level
term assurance with return of premium and single premium.
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Home Assure is a mortgage reducing term assurance plan
designed specifically to help customers cover their home loans in
a simple and cost-effective manner.
Child Plans
Education insurance under the AVIVA YOUNG SCHOLAR
brand provides guaranteed educational benefits to a child along
with life insurance cover for the parent who purchases the policy.
The policy is designed to provide money at important milestones
in the childs life. Aviv young scholar plans are also available in
unit-linked form ? both single premium and regular premium.
Retirement Solutions
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The primary objective of a retirement plan is to help you provide
for your financial needs in your post retirement years.
Forever Life is a traditional retirement product that offers
guaranteed returns for the first 4 years and then declares
bonuses annually.
Life Time Super Pension is a regular premium unit linked
pension plan that helps one accumulate over the long term and
offers an annuity option (guaranteed income for life) at the time
of retirement.
LifeLink Super Pension Is a single premium unit linked
pension plan.
Health Solution
Under Health Product Suite Aviva insurance offers plans under
the following major need categories:
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Hospital Care : Get a benefit amount if you are
hospitalized for more than 24 hours i.e. at least 2
consecutive nights and must be charged for 2 days room
expenses.
The benefit amount is fixed and will be paid irrespective of
actual hospitalization expenses .
DHCB is payable for hospitalization up to 90 days per policy
year, which includes any days spent in Intensive Care Unit.
Health Assure and Health Assure Plus: Health Assure is a
regular premium plan which provides long term cover against 6
critical illnesses by providing policyholder with financial
assistance, irrespective of the actual
medical expenses. Health Assure Plus offers the added
advantage of an equestionuivalent life insurance cover .
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Cancer Care: is a regular premium plan that pays cash
benefit on the diagnosis as well as at different stages in the
treatment of various cancer conditions.
Group Insurance Solutions
AVIVA insurance also offers Group Insurance Solutions for
companies seeking to enhance benefits to their employees.
Group Gratuity Plan: Aviva some plans helps employers fund
their statutory gratuity obligation in a scientific manner. The plan
can also be customized to structure schemes that can provide
benefits beyond the statutory obligations.
Group Superannuation Plan: Aviva offers both defined
contribution (DC) and defined benefit (DB) superannuation
schemes to optimise returns for the members of the trust and
rationalise the cost. Members have the
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option of choosing from various annuity options or opting for a
partial commutation of the annuity at the time of retirement.
Group Immediate Annuities: In addition to the annuities
offered to existing superannuation customers, we offer
immediate annuities to superannuation funds not managed by
us.
Group Term Plan: Aviva flexible group term solution helps
provide affordable cover to members of a group. The cover could
be uniform or based on designation/rank or a multiple of salary.
The benefit under the policy is paid to the beneficiary nominated
by the member on his/her death.
Flexible Rider Options
Aviva Life offers flexible riders, which can be added to the basic
policy at a marginal cost, depending on the specific needs of the
customer.
Accident & disability benefit: If death occurs as the result of
an accident during the term of the policy, the beneficiary
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receives an additional amount equestionual to the rider sum
assured under the policy. If the death occurs while
traveling in an authorized mass transport vehicle, the beneficiary
will be entitled to twice the sum assured as additional benefit.
Critical Illness Benefit: protects the insured against financial
loss in the event of 9 specified critical illnesses. Benefits are
payable to the insured for medical expenses prior to death.
Income Benefit: This rider pays the 10% of the sum assured
to the nominee every year, till maturity, in the event of the death
of the life assured. It is available on SmarKid and CashPlus
Waiver of Premium: In case of total and permanent
disability due to an accident, the future premiums continue to be
paid by the company till the time of maturity. This rider is
available with LifeTime Super, LifeTime Super Pension and
CashPlus.
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Organizational Structure (Sales Division) of
AVIVA Company
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Chief Executive Officer
Head of Sales
Head of Sales
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Branch head or SalesManagerZonal
Manager
RECRUITMENT PERSPECTIVE
Globalization and the knowledge economy have created profound
impact on the structure and operation of organization. The third
generation reforms, using second generation tools for employing
first generation are at best an organizational anachronism.
Obviously a great deal of innovation and fresh perspective on the
entire body of organizational philosophy is critical for the success
of the New Age of digital business environment.
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Front Line Unit Managers
Insurance AdvisorsInsurance Advisors
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Manpower is critical for sustained competitive advantage in an
organization. The recruitment process acts as the link that
connects the organization and employees. The growing
competitive environment among organization has result in
demand to recruit highly skilled employees. As a result the
recruitment strategies of firms have also undergone a paradigm
shift. Expectation level of employees have shifted focus from the
traditional perspective of contractual employment. Employees
seek specialized generalists rather than generalized specialist.
Skill based recruitment is the norm of present times. As a
consequestionuence, job seekers need to mould and
constantly update themselves to remain employable in the fast
changing workplace.
With the change in perception of employment philosophy,
recruitment have become innovation in their method of
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recruitment. The response of the potential job seekers to the
situational demand is termed as behavioral response. Research
of human psychology indicates that such response is likely to be
replicated in the actual job situation. Hence, there is a strong
case for the behavioral recruitment model likewise, the employee
has expectations from the organization and expects the
employee to be the best employee.
Employment is all about a pro arrangement between the
employer and the job seeker, where both parties negotiate their
respective expectation of each other in the transaction called
employment.
With recruitment goes an old saying if you fail to plan you plan
to fail. Hiring of candidates should be based on a correct notion
of what is re-questionnarisd
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for the best organization. Likewise, the organization should also
understand the individual needs and interests of the prospective
employees. In other words, goal congruence of the organizational
and the individual is a critical input to insure motivational drive
committed performance by an employee.
The best companies city a number reasons why recruiting and
hiring are the most important practice areas for creating and
retaining high performers The value of a good hire will continue
to multiply throughout an organization, where a bad hire will
diminish value good people attract other good people. There is a
strong correlation between good hires and positive corporate
results. Good hiring reduces the cost of turnover. And most
important, appropriate recruitment and hiring is becoming even
more critical as there is dearth of highly skilled employees.
Best organization succeed not because of their people, but
because they have the right people.
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Being an Aviva insurance advisor can be an enriching and
exciting career option. Its an opportunity to associate with an
industry leader, be in touch with the and finest insurance
practices from around the globe, and grow both personally and
professionally.
ROLE OF THE RECRUITER
The Unit Manager who is the recruiter needs to understand
that the insurance advisors are the keys of insurance
business.
To generate more business company will and number of
insurance advisors.
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There requirements of recruitment that a manager make in
to the company fold is of great importance.
The manager follows the n number theory whereby more
and more insurance advisors are inducted in to the
company.
The Unit manager has to constantly motivate his team of
advisors so that the company gets maximum business out of
them.
The business each insurance advisor bring clearly
distinguishes between a performing Unit Manager and an
over performing Unit Manager.
BENEFITS OF BEING AN INSURANCE ADVISOR
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Unlimited earning potential
A clear career path
All round support through exclusive advertising, your own-
in-hours consultant, and
world-class training
A comprehensive benefit package
WHAT DOES IT TAKE TO BE AN BE INSURANCE
ADVISOR?
Training
Careers
Rewards and Recognition
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Training at Aviva life insurance
At Aviva, we understand the importance of training in a
dynamic business environment. Our advisors go through both
generic and specific, professional programs that help them
remain well- informed and knowledgeable about the
companys products in the market. There is a further focus on
soft skills, such as communication, managing long-term
relationships and selling skills, which are very relevant in a
service-driven industry like life insurance. State of the art
infrastructure training facilities coupled with an excellent
faculty, guarantee an exceptional
learning environment. For advisors who might be
occupied with their daily businesses/professional routines,
Aviva life insurance also offers convenient training options
such as online and self learning.
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A 17-day training schedule covers the mandatory IRDA
training re-questionnaires and Aviva life insurance product-
training modules. Revision session ensure that the candidates
thoroughly understand the course contents and are well
prepared for the licensing examination training is interspersed
with practical appointment settings with potential customers,
giving advisors a feel of how their business will work from the
very first day. All through the advisors to the advisors in
achieving independence towardsgenerating business.
Career Development
At Aviva life insurance , career development is
emphasized upon from the very day the advisor joins the
system. Though individual meetings with his or her manager,
the advisor can discuss various issues related to business
development and career enhancement. Expectations
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From the organization in terms of chalking a career in the
insurance industry are also discussed
Tiger Team: Aviva life insurance offers the Tiger Team
programmed for identified high potential advisors. Handpicked
by the management, these advisors are placed on fast track
career path and recognized as Tiger trainers. The advisors
can participate in this programmed, subject to certain criteria
being fulfilled.
Pinnacle Program: Absorption into the management is another
career enhancement option provided at Aviva life insurance
through the pinnacle program. The program helps advisor build
a fulltime career as a unit manager in the organization. Offering
great potential for managing a team of advisors and personal
development .Fast track pinnacle program is also available to
advisors who are able to meet the performance criteria within the
stipulated time.
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Reward and recognition:
Aviva life insurance advisors are constantly recognized and
rewarded for their performance. Numerous contests all year
round promote healthy competition amongst advisors and
recognition for their efforts. Depending on level of business the
advisor achieve in a year He or she can become a member of
various clubs such as the Presidents club, Aviva life insurance
Star International and the Aviva life insurance Star India club
Each of these clubs have specific performance criteria for criteria
for questionualification and members of these club are business
the advisor achieves in a year , he or she can becomes a member
of various clubs such as the Presidents club ,Aviva life insurance
Star International and the Aviva life insurance Star India club
.Each of these clubs have specific performance criteria for
questionualification and members of these clubs are entitled to
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attend seminars held at exotic international and domestic
locations each year .Advisors can also questionualify for the
renowned MDRT (Million Dollar Round Table ), an exclusive
international insurance advisor club. While gathering information
about prospective candidates we also make assumption of the
type and the nature of business he or she will bring. Each advisor
has his own domain where he
functions, taps the resources and brings business. Often the
team of advisor who work with a particular unit manager work
with a spirit of togetherness and also have the challenging spirit
to meet the targets as given by their manager or the team
leader. A unit manager may have several advisers working under
him. The number can be more than hundred or two hundred. But
the real chunk of business is brought by the small group of
advisor who are constantly on move, making calls, seeking
appointments and delivering result. This is the reason why stress
has not been made to gather highly qualified advisers nor very
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High QualityManagement
SuperiorProducts
experienced once. What Aviva aims at to tap the right people
who can do business, bring business and retain the Business?
More than having good education qualification, if an adviser can
advise and adopt sound marketing he can do business.
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ExtensiveTrainingExtenstion
Growth andprosperity of theadvisers at Aviva
Strong Reputation
Excellent CustomerAttractive paymentsand Benefits
(Diagram showing the prospects for growth and prosperity ofInsurance advisors at AVIVA insurance )
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AN OVERVIEW OF INSURANCE INDUSTRY
Insurance has a long history in India. Life Insurance in its
current form was introduced in 1818 when Oriental Life
Insurance Company began its operations in India.
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General Insurance was however a comparatively late
entrant in 1850 when Triton Insurance company set up
its base in Kolkata. History of Insurance in India can be
broadly bifurcated into three eras: a) Pre Nationalization
b) Nationalization and c) Post Nationalization. Life
Insurance was the first to nationalize in 1956. Life
Insurance Corporation of India was formed by
consolidating the operations of various insurance
companies. General Insurance followed suit and was
nationalized in 1973. General Insurance Corporation of
India was set up as the controlling body with New India,
United India, National and Oriental as its subsidiaries.
The process of opening up the insurance sector was
initiated against the background of Economic Reform
process which commenced from 1991. For this purpose
Malhotra Committee was formed during this year who
submitted their report in 1994 and Insurance RegulatoryDevelopment Act (IRDA) was passed in 1999. Resultantly
Indian Insurance was opened for private companies and
Private Insurance Company effectively started operations
from year of 2000.
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What is Life Insurance?
Life insurance is a guarantee that your family will receive
financial support, even in your absence. Put simply, life insurance
provides your family with a sum of money should something
happen to you. It thus permanently protects your family from
financial crises.
In addition to serving as a protective cover, life insurance acts as
a flexible money-saving scheme, which empowers you to
accumulate wealth-to buy a new car, get your children married
and even retire comfortably.
On the topic of distribution analysis and agency
business I find no any one single person did search.
Key Benefits of Life Insurance
Need for Life Insurance
Today, there is no shortage of investment options for a person tochoose from.
Modern day investments include gold, property, fixed incomeinstruments, mutual
funds and of course, life insurance. Given the plethora of choices,it becomes
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imperative to make the right choice when investing your hard-earned money. Life
insurance Is a unique investment that helps you to meet your
dual needs ?
saving for life's important goals, and protecting your assets.
Asset Protection
From an investor's point of view, an investment can play tworoles
asset appreciation or asset protection. While most financialinstruments have the
underlying benefit of asset appreciation, life insurance is uniquein that it gives the
customer the reassurance of asset protection, along with a strongelement of asset
appreciation. The core benefit of life insurance is that thefinancial interests of
Ones family remains protected from circumstances such as lossof income due to
critical illness or death of the policyholder.
Simultaneously, insurance products also have a strong inbuiltwealth creation
proposition. The customer therefore benefits on two counts andlife insurance
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occupies a unique space in the landscape of investment optionsavailable to a
customer.Goal based savings
Each of us has some goals in life for which we need to save. For ayoung, newly
married couple, it could be buying a house. Once, they decide tostart a family,
the goal changes to planning for the education or marriage oftheir children. As
one grows older, planning for one's retirement will begin to takeprecedence.
Clearly, as your life stage and therefore your financial goalschange, the
instrument in which you invest should offer correspondingbenefits pertinent to the
new life stage. Life insurance is the only investment option that
offers specific
products tailor-made for different life stages. It thus ensures thatthe benefits
offered to the customer reflect the needs of the customer at thatparticular life
stage, and hence ensures that the financial goals of those life
stages are met.The table below gives a general guide to the plans that are
appropriate for different life stages.
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Life Stage Primary Need Life Insurance ProductYoung & Single Asset creation Wealth creation plans Young & Justmarried
Asset creation &protection
Wealth creation andmortgage protection plans
Married withkids
Children's education,
Asset creation andprotection
Education insurance,
mortgage protection &wealth creation plans
Middle agedwith grown upkids
Planning for retirement& asset protection
Retirement solutions &mortgage protection
Across all life-stages
Health plans Health Insurance
INSURANCE MARKET IN INDIA:
The India Insurance market despite having a highly elaboratehistory spanning
almost two centuries, has come of age only in last 50 years afterthe formation of
the Life Insurance Corporation (LIC) of India in 1956 and the entry
of private
companies into the market in 2000.
Traditionally the Indian Insurance Market had centered on the lifeinsurance
until recently, a host of other insurance policies covering adiverse range of
issues and objects like Medical Insurance, Accident Insurance,Fire Insurance,
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Automobile Insurance and other policies which fall under thecategory of general
insurance are being provided by various private insurancecompanies.
A) PERFORMANCE OF THE INDIAN INSURACEMARKET-A REPORT:
The following points will provide you an insight into the insurancemarket in
India and its fast expanding prospects. The report is wellsupported by data
based on detailed analysis that would help investors, financialservice
providers and global banking players to venture into the Indianinsurance
market.
Taking into account the changing socioeconomic demographicsrate of GDP
growth, behavior of consumers, and occurrences of naturalcalamities at
regular intervals the market of Life Insurance in India is expectedgrow to the
value around US $ 41.44 billion by the year 2009. The Market isexpected to
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grow at a compounded annual growth rate (CAGR) of more than200% year over
year (YOY) from year 2006 onwards.
in automobile insurance, public sector covers a substantial 68%
of the total market value.
Among individual companies that are worthy of mentioning, Aviva
Lombard enjoys a whopping 53% market share in AccidentInsurance while
the remaining 47% is shared by New India Assurance and UnitedIndia
Insurance both belonging to the public sector
The other key players of the market include:
A) In Public Sector:
Life insurance Corporation(LIC) of India, National InsuranceCompany
Limited, Oriental Insurance Limited, New India AssuranceCompany
Limited and United India insurance Company Limited.
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B) In Private Sector:
ICICI prudential Life Insurance, Bajaj Allianz, SBI Life, HDFCStandard,
Birla Sun life, Aviva Life Insurance, Kotak Mahindra old mutual,Max New
York Life and Met life, Tata AIG Life, ING Vysya. Thus, the ever
increasing population of the country will ensure constant boom inthe India
Insurance market in the distant future.
NEED FOR INSURANCE:Superior to an ordinary savings plan as it provides full
protection against
Risk of death.
Encourages and forces compulsory savings unlike other saving
Instruments, wherein the saved money can be easily withdrawn.
Provides loan to tie over a temporary difficult phase and is also
acceptable
as security for a commercial loan.
Offers tax relief to policyholders.
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Hedges risk against uncertainty.
For a policy taken under the MWP Act 1874, (Married Women's
Property
Act), a trust is created for wife and children as beneficiaries.
Based on the concept of sharing of losses, the society willbenefit as
catastrophic losses are spread globally.
NEED FOR LIFE INSURANCE:Life brings with it many surprises, some pleasant and some notso and a Life
Insurance Plan ensures that you are better prepared to faceuncertainties. In a
number of ways:
A) Protection:You need life insurance to be there and protect the people youlove, making
sure that your family has a means to look after itself after youare gone. It is
a thoughtful business concept designed to protect the economicvalue of a
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human life for the benefit of those financially dependent on him.That is a
good reason. Supposing you are suffered by an injury that keeps
you away
from earning? Would you like to be a financial burden on yourfamily,
already losing out on your salary? With a life insurance policy,you are
protected. Your family is protected.
B) Retirement:Life insurance makes sure that have regular income after retireand also
helps to maintain standard of living. It can ensure that your post-retirement
years will be spent in peace and comfort.
C) Savings and Investments:Insurance is a means to Save and Invest. The periodic premiumsare like
Savings and you are assured of a lump sum amount on maturity.A policy
can come in really handy at the time of your childs, education ormarriage!
Besides, it can be used as supplemental retirement income.
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D) Tax Benefits:Life insurance is one of the best tax saving options today. Taxcan be saved
twice on a life insurance policy-once when you pay yourpremiums and once
when you receive maturity benefits. Money saved is moneyearned
History of Life Insurance:
The earliest type of life Insurance was started by the Greeks and
Romans.
All surviving members contributions for the burial cost of a
member. In case of the death of a member the cost of burial was
made of the contributed fund.
In the 17th century, the Tontine Annuity system was
introduced where associations of individuals were formed
without any reference to age, and a fund was created by equal
contributions from each member. The sum collected was
invested, and at the end of each year the interest was divided
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among the survivors. The last remaining survivor received both
the years interest and the entire amount of the principal.
The first organized life Insurance company was founded in
175 in Philadelphia, in north America. Subsequently, over the
past three centuries, numerous life Insurance companies sprung
up, making life Insurance a popular tool for protection coupled
with investment.
INSURANCE IN INDIA
The British introduced Insurance in India in the beginning of
the 19th century. In 1818 a British film called as Bombay Life
Insurance Company was established. Later the, the Bombay Life
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Insurance Company was established in 1823. in 1874, the
oriental Government Security Life Insurance Company was set
up. The mismanagement of funds let to nationalization of
Insurance business in 1956. today there are over 14 life
Insurance companies in India.
HUMAN LIFE VALUE:-
Human life is the most valuable assets. This is easily proved if we
were to assign a monetary values to our life. This values depends
on our income-earning potential or the so called Human Life
Values(HLV).A person income supports his family, helps them to
get the most out of life .Month after month, year after year , his
dependents lives the best way they can using the money that
person earns .This money enables his household to run
smoothly ,children to go to college, takes care of medical bills,
vacations and helps maintain the life styles .
On the basis of a persons
income or earning potential , human Life Values can be
calculated .A simple rule of thumb to compute it is as follows :
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HLV=Present Annual Income * number of years until a person
plans to retire
If something were to happen to the person ,hear are a few
possible ways of dealing with the financial implications:
i) Draw from savings. But how long would the funds last? A
lifetime of savings could be used up in a few months.
ii) borrow from others : who will lend the money? Even family
and friends can only help to an extent. Any anyway, this
would only be a short term solution. Borrow from others:
who will lend the money? Even family and friends can only
help to an extent. And anyway, this would be a short- term
solution.
iii) Sell the assets: what price will one get or his assets? Would
one like to sell his home? His car?
iv) Transfer the risk to an insurance company?
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It is recommended that should be transferred to an
insurance company as its chapter, safer and smarter in the
long run.
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OBECTIVES OF STUDY
The objective behind the conducting project exercise was to get
useful insight about the insurance sector. I have prepared this
report with some specific objectives. The objective is as under:
1. To understand the fundamentals of insurance.
2. Identify the diverse customer and identify the various life
insurance products, which have been developed from time to
time to meet the re-questionnarisment.
3. Learning how to Sell insurance professionally.
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4. As I was working under the FSC my main objective was to solve
out the matter pertaining to the closing of the policies such as life
time pension and life time.
5. Apart from this, I had to generate the leads through recruiting
the new advisors for the company to generate business.
NEED OF STUDY
THE main need of the study is to find out the role of an agent in
of society.
That an agent perform his role in a good manor or not, then I find
that all the agents are working in the company as a off role job,
so they never think that a customer s facing how many
difficulties, when he adopt an policy, on the behalf of a agent. So,
my study clears that how a agent perform their duties.
SCOPE AND LIMITATION
The main purpose of the project is recruit Insurance advisors.
Efforts have been made to understand the customers perception
about the company and the role they associate with the job of an
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Insurance advisor. The scope of the project is two parts. First it
meansinductingof candidates who will bring business prospects
for the company and secondly it was a tremendous opportunity
to understand the Insurance market scenario in jalandhar. A
major limiting factor of project was the perception of the people
regarding the job of the Insurance advisor who are perceived as
low paid Insurance agents. People fail to identify the challenges
and the opportunities underlying this job.
SOURCES OF DATA
Primary Data: Personal discussion with Insured people &
Uninsured people.
Secondary Data: Books, Websites, data from company
officials, and from existing customers.
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METHODOLOGY
Research design is a framework or blue print for conducting the market
research. It specifies the procedure for obtaining the information needed
to the structure or solves the research problem.
SOURCES OF DATA
Data may be collected by many methods but we use only some methods
for the data collection which are as under:-
PRIMARY DATA
This data is collected by the interacting with various people in our
society. The researcher originates primary data for the specific purpose
of addressing the researcher problem or for selecting the best course of
action to take in a given situation. Questionnaires are used for collecting
the primary data.
SECONDARY DATA
This data is collected through various web sites, magazines, and
prospects .Secondary data is collected for some purpose other than the
problem at hand and the data is provision of insight into andcomprehension of the problem situation confronting the researcher or
for selecting the best course of action to take in a given situation.
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SAMPLING PLAN
SAMPLE SIZE
Sample sizes are 150 responders. Sampling size refer to the number of
elements to be included in the study. We have taken general public as
our respondents for the study because the whole society is being
affected by foreign university.
SAMPLE TECHNIQUE
We have used techniques of random sampling.
STATISTICAL TOOLS
Percentage, graph, pie charts and tables are used for analysis of
collected data.
SAMPLE SOURCES
Questionnaire
Internet
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QUESTION:-1 Do you know about Aviva life insurance?
(a) yes. ( )
(b) no. ( )
ConsumerResponse
CUSTOMERS In Percentage
Yes 100 67%No 50 33%
Figure no -1.1
Findings-:
(a) 67% people say we know about Aviva life insurance
(b) 33% people say he not know about Aviva life insurance
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QUESTION:-2. Is Aviva life insurance provides better services
of insurance?
(a)Yes ( )
(b)No ( )
CUSTOMERS In Percentage
Yes 90 90%No 10 10%
Figure no -1.2Findings-:
(a)84%people say aviva life insurance company provide better insurncecompany
(b)16%people say aviva life insurence company not provide better
service.
QUESTION:-3. Are you satisfied with your present Insurance
Service?
(a)Yes ( )
(b) No ( )
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ConsumerResponse
CUSTROMERS In Percentage
Yes 75 75%No 25 25%Figure no -1.3Finding-:
(a) 75%people say he satisfied with aviva life insurance companyservices.
(b) 25%people say he not satisfied with aviva life insurance
service.
QUESTION:-4.What are the important features which satisfied
the consumer provided by Aviva life insurance?
(a)Good return. ( )
(b)Secure future ( )(c) Other benefits ( )
ConsumerResponse
Frequency In Percentage
Good return 55 55%Secure future 28 28%Other benefits 17 17%
Figure no -1.4Findings-:
(a) 55%people say good return is important feature of Aviva life insurance.
(b) 28% people say secure future is important feature of Aviva life insurance.
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(c) 17% people say other feature is important of Aviva life insurance Company.
QUESTION:-5 Did you face any difficulty while using the
Aviva life insurance policy?
(a)Yes ( )
(b)No ( )
ConsumerResponse
Customers In Percentage
Yes 3 12%No 22 88%
Figure no -1.5Findings-:
(a) 12% people say he face problem with life insurance service.(b) 88% people say he not face problem with life insurance service.
QUESTION:-6 Is Aviva life insurance successful in the
Backward & Rural Areas.?
(a)Yes ( )
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(b)No ( )
ConsumerResponse
customers In Percentage
Yes 14 56%No 11 44%
Figure no -1.6Findings-:
(a) 56% people say Aviva life insurance successful in rural areas.
(b) 44% people say Aviva life insurance not successful
in rural areas.
QUESTION:-7 Is Aviva life insurance scheme are more
economic.(a)Yes ( )
(b)No ( )
ConsumerResponse
customers In Percentage
Yes 19 76%No 6 24%
Figure no -1.7Findings-:
(a) 76%people say aviva life insurance scheme more economic.(b) 24% people say aviva life insurance scheme not more economic.
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QUESTION:-8 Do you think that, which policies provided by
Aviva life insurance that helping to change your life?
(a)Yes ( )(b)No ( )
ConsumerResponse
CUSTOMERS In Percentage
Yes 24 96%No 1 4%
Figure no -1.8Findings-:
(a) 96% people say aviva life insurance company change his life.(b) 4% people say he not feel change in life.
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FINDING AND RECOMMANDATION
With the help of a questionnaire we have tried to assimilate
information that can throw light on the customers perception
about the job. The questionnaire has been so designed that it
not only understands the customers perceived notion on the
role of an insurance advisor but also the market position of
Aviva life insurance.
Finding :
A major finding was regarding the mindset of people
who perceive the Insurance advisor as low paid
Insurance agents. People do not see the challenges
and the opportunity to understand customers
perception which is available in this job.
Most of the interviews were not aware of the player in
the Insurance sector. Senior citizen and middle aged
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employees still believe that insuring and working worth
a government company is less risky and reliable.
Most of the interviews ranked reliability more important
than profitability when asked about reason for choosing
a particular Insurance company.
Since the Insurance advisors are not the employees of
the company, people had several misconception on the
career prospects of this job.
Following table shows the market position of the
several private players in the market.
RECOMMENDATION :
Open some more branches in semi urban and rural areas. .
Improve customer service in all branches.
Introduced new ULIP PLAN for customer.
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Provide most modern method of training.
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CHAPTER NO: -8ANNEXURE
QUESTION UESTIONNAIRE
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This questionnaire is prepared to study the project titled The
comparative study of the consumer satisfaction towards Aviva
life insurance Company as a compulsory part of M.B.A.program.
NAME:-.
AGE :- ...
GENDER :- ..
CONTACT No :-.
1 Do you know about Aviva life insurance.?
(a) yes. ( )
(b) No. ( )
2. Is Aviva life insurance provides better service of insurance?
(a)Yes ( )
(b)No ( )
3. Are you satisfied with your present insurance service?
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(a)Yes ( )
(b)No ( )
4. What are the important features which satisfied theconsumer provided by Aviva life insurance?
(a)Good return. ( )
(b)Secure future ( )
(c)Other benefits ( )
5. Did you face any difficulty while using the Aviva life
insurance policy?
(a)Yes ( )
(b)No ( )
1. Is Aviva life insurance successful in the Backward & Rural
areas?
(a)Yes ( )
(b)No ( )
7 Is Avivas insurance scheme more Economic.
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(a)Yes ( )
(b)No ( )
8 Do you think that Aviva life insurance policy is changing
your life?
(a)Yes ( )
(b)No ( )
9. Do you have any suggestion for the improving services
of Aviva life insurance?
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BIBLIOGRAPHY
IRDA Journal. Aviva life insurance company magazines.
Business news paper and magazines.
WEBSITE www.avivalife insurance.com www.google.co.in/indian insurance industry www.irdaindia.org www.ssrn.com www.insuranceguide.com www.financialexpress.com
http://www.google.co.in/indianhttp://www.irdaindia.org/http://www.ssrn.com/http://www.insuranceguide.com/http://www.financialexpress.com/http://www.google.co.in/indianhttp://www.irdaindia.org/http://www.ssrn.com/http://www.insuranceguide.com/http://www.financialexpress.com/
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