A PROJECT REPORT

ON

MARKETING STRATEGY

OF

TATA AIG INSURANCE

COMPANY
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE
AWARD OF THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION
(BBA)

TO
GURU GOVIND SINGH INDRAPRASTHA
UNIVERSITY
(SESSION 2008-2011)

SUBMITTED TO SUBMITTED BY
Miss. SAVITA IMRAN KHAN
Designation: Lecturer Enrollment No.0912051708

BLS INSTITUTE OF TECHNOLOGY

MANAGEMENT
Delhi-Rohtak Road, NH-10 ,Jakhoda ,Bahadurgarh
 (Haryana)

STUDENT UNDERTAKING:

“THE PROJECT IS SUBMITTED TO MISS.SAVITA STUDIES AS MAJOR

PROJECT FOR BACHELOR OF BUSINESS ADMINISTRATION (B. B. A)
2008-2011”

PROJECT GUIDE

B Y:
 ACKNOWLEDGEMENT

Interdependence
Interdependence is something, which is very essential in today’s world for
competition of any task. This is also being completed by the joint effort of so many
people, so I wish to pay my gratitude to all those people who have directly or
indirectly contributed towards the completion of this project. First of all, I owe my
gratitude to all might GOD and my parents because of whom I am able to complete
this project successfully. I am deeply indebted and grateful to Miss. Savita (Business
Associate) who granted the permission to do this project, this project has successfully
taken place.
 TABLE OF CONTENTS

Sr. No. Topic

1- INTRODUCTION TO INSURANCE
AND TATA AIG

2- COMPANY PROFILE AND SWOT

ANALYSIS OF THE COMPANY

3- OBJECTIVE OF STUDY

4- RESEARCH METHODOLOGY

5- DATA ANALYSIS AND

INTERPRETATION

6- FINDING AND ANALYSIS

7- RECOMMENDATIONS AND
SUGGESTION:CONCLUSION

8- LIMITATION

9- QUESTIONNAIRE

10- BIBLOGRAPHY
 INSURANCE

INTRODUCTION

The business of insurance is related to the protection of the economic value of assets.
Every asset has a value.

The asset gets lost earlier, being destroyed or made non-functional, through an
accident or other unfortunate event, the owner and those deriving benefits there from
suffer. Insurance is a mechanism the helps to reduce such adverse consequences.

PURPOSE & NEED OF INSURANCE

• Assets are insured, because they are likely to be destroyed or made non-
functional, through an accidental occurrence. Such possible occurrences are
called perils. Fire, floods, breakdowns, lightning, earthquakes, etc, are perils.

• Risk : A possibility of loss or damage. It may or may not happen. There has to be
an uncertainty about the risk. Insurance is done against the contingency that it
may happen.

• Insurance : People/Assets must be exposed to the same risks

• Insurance : Risk is spread among the community and the likely big impact on one

is reduced to smaller manageable impacts on all.

• Insurance companies: collect money in advance and create a fund from which the

losses are paid.

• A human life is also an income generating asset. This asset also can be lost
through unexpectedly early death – Accidents may or may not happen.

• Living too long can be as much as problem as dying too young. These are risks
which need to be safeguarded against.

• Insurance covers economic or financial loses – tangible and intangible assets.

HOW INSURANCE WORKS

People facing common risks come together and make their small contributions to a
common fund. The contribution to be made by each person is determined on the
assumption that while it may not be possible to tell beforehand, which person will
suffer, it is possible to tell, on the basis of past experiences, how many persons, on an
average, may suffer losses.

Insurance is about

• Sharing the same risk

• Paying out compensation (claims)

Insurer ensures: no body takes undue advantage.

BUSINESS OF INSURANCE

• The business of insurance done by insurance companies, called insurers, is to

bring together persons with common insurance interests collecting the share or
contribution from all of them and paying out compensations to those who suffer.

• The business of insurance is nothing but one of sharing. It spreads losses of an

individual over the group of individuals who face common risk.

• It ensures that nobody takes undue advantage of the arrangement.

FUNDAMENTAL PRICIPLES

• Life Insurance Contracts

A contract may be defined as an agreement between two or more parties to do or

to abstain from doing an act, with an intention to create a legally binding
relationship. A simple contract to be enforceable must have following
essentials :-

- Offer and acceptance

- Consideration

- Capacity to contract

- Consensus ‘ad idem’

 - legality of object

• Commercial contracts

Commercial contracts are normally subject to the principle of caveat emptor i.e.
let the buyer beware. In most of these contracts each party to the contract can
examine the item or service. Which is the subject matter of contract.

• Insurance contracts

As for insurance contracts, the product sold is intangible. It cannot be seen or

felt. Moreover, most of the facts relating to health, habits, personal history,
family history are known to one party only, the proposer.
PRINCIPLE OF UTMOST GOOD FAITH (Uberrimae Fides)

• Proposer must disclose every material known to him. This type of contract is
called Uberrimae Fides i.e. contract of utmost good faith.

• Facts that would influence the judgement of a prudent insurer in fixing the
premium or determining whether he will take the risk. Therefore, facts regarding
age, height, weight, build, previous medical history, smoking / drinking habits,
operations, non-disclosure of earlier insurances, ‘hazardous’ occupation must be
disclosed.

• There are certain circumstances, a facts which need not be disclosed. For example
:

(1) Facts which every one is supposed to know.

(2) Facts of common knowledge.

(3) Facts which lessen the risk.

(4) Facts which could be reasonably discovered, by reference to previous policies,

records of which are available with the insurer.
INSURABLE INTEREST

All risks are not insurable. In order to be insurable, the risk must be capable to
financial measurement, there must be sufficient number of similar risks, the risk must
be capable of statistical (actuarial) estimation. It must not be against public policy,
and there must be insurable interest in the property to be insured/risk to be covered.

The Insurance Act, 1938 does not define insurable interest. Insurable interest is said
to exist when the person insuring stands to lose if the event insured against occurs.

Person has insurable interest in his own life to an unlimited extent. Insures take into
account a proposer’s capacity to pay premiums and his need for insurance, while
granting the sum insured.
Instances of Insurable Interest

• Common people having insurable interest

- Spouses have insurable interest in each other.

- Partners can insure each other’s lives.

- Creditors have insurable interest in debtors

- Employers have insurable interest in the life of employees.

• The legal position about children’s assurances is not quite clear. It is presumed
that parents have insurable interest in the life of a child as a child i.e. so long as he
is a child. Therefore most of the LIC’s children’s policies incorporate a vesting
clause, whereby the policy vests in the child on attainment of majority.
 CAREER OPPORTUNITY

DISCOVER A WORLD OF GREAT OPPORTUNITY WITH THE LEADING

SERVICE INDUSTRY

THE INSURANCE SECTOR

• NATIONALISED IN 1956 :

• LIC WAS THE ONLY PLAYER TILL 2000

• GOVERNMENT HAS DE-REGULATED THE INDUSTRY

• THE FASTEST GROWING BUSINESS IN India TODAY

• LIFE INSURANE PENETRATION IN India IS 1.4%

• PER CAPITA SPEND IN India – Rs. 235.00

 LIFE INSURANCE : THE

FASTEST GROWING INDUSTRY

• A Rs. 30,000 CRORE BUSINESS

• GROWING AT 20% EVERY YEAR

• ONLY 1.4 % OF THE India IS INSURED

• HUGE INCOME POTENTIAL FOR YOU

 OBJECTIVES

THE MAIN OBJECTIVES OF THE STUDY ARE AS FOLLOWS :

• To present an overview of Tata AIG Insurance company with its marketing

strategies.

• To study the history of Tata AIG.

• To assess the nature of Joint Venture, Investment Pattern, Entry Strategies and
product of Prudential Tata AIG Insurance Company.

• To collect Data through market survey.

• To analyze the comparative marketing strategies of Tata AIG with other

Companies.

• To change the profile of Insurance Agents.

• To analyze a data collected using factor analysis.

 COMPANY PROFILE

VSERV- A PROFILE

As the name suggests VSERV is here to serve its people, promote ease to its client &
insure the best of its service to all.

Established in March 99 by Mr. Herpreet Singh. VSERV was initially formed

distributing mutual funds & bonds. The company slowly broadened its horizon & in
the year 2001 when insurance fell into the hands of Pvt. sector VSERV entered into
life & general Insurance with TATA AIG. By April 2001 there were two companies
founded under the banner of VSERV namely, VSERV CAPITAL SERVICES PVT
LTD.& VSERV INSURANCE SERVICE PVT LTD, both catering to the insurance
needs of its customers.
VSERV CAPITAL SERVICES PVT LTD.

Incorporated under companies act 1956, VSERV CAPITAL SERVICES PVT LTD
is the sister concern of VSERV that deals in investment , stock brooking ,
management consulting & recruiting & training activities as business associates for
TATA AIG.

The company under the administration of its board of directors comprising of Mr.
Harpreet Singh , Harpreet Kaur & Vir Singh Veer operate through a team of
people of which 300 are directly employed & over 2000 indirect employees . The
company has an extensively networked area of operation which covers states of Delhi
, Punjab , Haryana , Rajasthan , Uttar Pradesh & the metropolitan city of Chennai .

As the " Annual Convention 2003 ", Dubai, puts it - VSERV is the number 1 Business
Associate with TATA AIG for past 3 years
VSERV INSURANCE SERVICES PRIVATE LTD.

Incorporated in the same year, April 2001, under the companies act 1956, the
company is headed by a directorial panel under Mr. Harpreet Singh and Mr. Vir Singh
Veer.

This company deals in both life and general insurance and is operative in the capital
city, Delhi.

CLIENTS

VSERV proudly assests its cliental to over 10,000 accounts in the past three years. It
has over 20 co-operate clients serving names like HCL Group & Barista.

STRENGTHS

"When it comes to service we don’t look at the cost"

The company lives by this Motto. It practices a highly customer focus approach &
believes in retaining clients by providing them with exceptional services.

To achieve this state of professionalism the company has experienced & qualified
professionals at its disposal. Along with this the company also has a well recruited
managing team & staff with trained & knowledgeable personnel who are well versed
in the fields of insurance & financial services.
Tata-AIG Life Insurance

PROFILE

Tata-AIG Life Insurance company is a joint venture between the Tata Group and
American International Group Inc (AIG), the leading US-based international
insurance and financial services organisation and the largest underwriter of
commercial and industrial insurance in America.

Its member companies write a wide range of commercial, personal and life insurance
products through a variety of distribution channels in approximately 130 countries
and jurisdictions throughout the world. AIG’s global businesses also include financial
services and asset management, including aircraft leasing, financial products, trading
and market making, consumer finance, institutional, retail and direct investment fund
asset management, real estate investment management, and retirement savings
products.

Areas of business

Tata-AIG Life Insurance products include a broad array of life insurance coverage to
both individuals and groups. For groups, the company has life products whereas for
individuals, it has term products, endowment products as well as money-back
products. For groups and individuals, various types of add-ons and options are
available to give consumers flexibility and choice.
 INTRODUCTION

TATA GROUP

The Tata Group is the most respected industrial business house serving India for 123
years with reventues of over Rs. 42,000 crores, with 80 companies present in seven
business sectors.

The Group had a long association with India’s Insurance sector, having been the
largest Insurance Company in India prior to nationalization of Insurance.

Specialty Group Companies :

TELCO

TATA INFOTECH

TATA CONSULTANCY SERVICES

TATA STEEL (TISCO)

TATA HOTELS (TAJ)

AND MANY MORE

Deep routed commitment towards Indian society.

 AIG: A LEADER IN THE

INSURANCE BUSINESS

• American International group Inc. (AIG), the leading US Based International

Insurance and Financial Services Organization with a presence in over 149
countries and jurisdiction throughout the world.

• AIG is the largest Insurance Co., founded in 1919 and it has successful 84 years of
history.

• AIG global business also includes financial services and asset management,
financial products, consumer finance etc.

AIG IS AMONGST THE FEW ‘AAA’ RATED COMPANIES IN THE

WORLD

• Sales Force of 115,000 World Wide.

 Revenue $ 62.4 billion (Rs. 3,12,000 crores)

 Net Income $ 7.66 billion (Rs. 38,300 crores)

 Assets $ 492.98 billion (Rs. 24,64,900 crores)

• Cutting Edge Training

• Outstanding Rating

 4 in Forbes 500

 12 in fortunes 500

“Every cent of Premium we collect must one day be returned to our Policy
Holders”

- C.V. Starr, founder of AIG.

 TATA AIG

INTRODUCTION

Tata AIG is a joint venture that is backed by the Tata Group, one of the India’s most
respected Industrial Conglomerates, with revenue of over Rs. 40,000 crores, and
American International Group, Inc. (AIG), the leading US based international
insurance & Financial Services Organization.

• THE TATA GROUP 74%

• AIG 26%

Tata AIG offers a gamut of innovative products in the Life Insurance Sector. Tata
AIG is one of the few partnership in the Indian Insurance Industry that brings you
arrange of Insurance Products : from automobile to life Insurance, from travel to
personal accident coverage, and more.
 TATA AIG LIFE

A joint venture bringing to household names together, launched in April 2001 in

Mumbai, Delhi, Kolkata, Chennai, Banglore, Hyderabad and expending rapidly.

In the Private Insurance Market Tata AIG life is :

• Fastest growing new life insurance co. in India.

• Presence in 14 cities and expanding constantly.

• The leading Whole of Life provider with 50% of all policyholders choosing
Mahalife

• Number One in Providing Term assurance

• Our biggest seller is the Money Back Plan with 29% market share

• Last year our annual bonus was amongst the largest paid in the industry @ 5%
compounded.
 AREA OF BUSINESS

Tata AIG like Insurance products include a broad array of Life Insurance coverage to
both individual and groups.

For groups, the company has life products whereas for individual, it has term
products, endowment products as well as money back products. For groups and
individuals, various types of options are available to give consumers flexibility and
choices.
 TATA AIG – VISION

Profitably

Deliver consistently excellent

Service and develop our

People in a constantly

Changing environment.

• Bidest range of products to cater to needs of all segments

• A unique career progression structure for advisors.

Not offer by all other companies in India.

 HISTORY

TATA HISTORY - FAMILY TREE

JAMSETJI TATA

• Founder of India’s largest and

internationally best non group of companies.

• Began with a textile mill in central

India in the 1870s.

SIR DORABJI TATA SIR RATAN TATA

Sir Dorabji Tata

Trust (1932)

JEHANGIR RANTANJI

DADABHOY TATA

(1904 – 1993)

• Pioneered civil aviation

on the subcontinent in 1932

• Funding Dr. Homi

Bhabha

RATAN N. TATA

Group Chairman
TATA HISTORY : 1868 – 1960

Operations expand to include Expansion into Commercial

Hotels, Metals and the first of Printing. Airlines, Commercial

3 electric companies. In 1907, vehicles as well as Tata Industries

Tata expands globally with the which was created for the

Formulation to Tata Limited, promotion and development of

London. Hi-tech industries.

1900 – 1910 1930 – 1950

1968 – 1900 1910 – 1920 1950 - 1960

JN Tata starts a The Tatas enter the Tata is asked to

private trading firm consumer goods with the manufactures

laying the Tata oil mills Companies in

foundation for the Company making soaps, India. India’s

Tata empire. First detergents and cooking Major

operation include oils. Manufacturing

textiles, spinning and engineering

and weaving organization,

companies Voltas, is

in 1887, Tata and Sons established.

is established
TATA HISTORY : 1960 – 1990

Tata moves into the fields of Ratan N. Tata appointed

Publishing, Techno - Chairman of Air India long

Economic research & after J.R.D. Tata, founder of

Engineering Product. Tata Air India, Ceased to occupy

Opens the World’s largest that post

Palm Oil processing facility

1970 – 1980 1986

1960 – 1970 1980 – 1990 1980 - 1990

Tata exports and Marked by Tata watches

Tata Switzerland collaborations with launches its

formed to promote Hands Motor Co. Rs. 22 crores.

the export of and Honey well Tata Central

Indian Products. International. Archives

Tata expands into first 500 MW is created.

Tea, Nuclear and Power plant Tatamobile and

Aeronautical commissioned. Tata 406 by

Consulting. Tata Tata Engineering.

consultancy

services is formed
TATA HISTORY : 1990 – 1998

Seven major Tata New Tata Group

Group companies corporate logo and

formality adopt the mark are launched.

Tata Group code of

conduct.

1998 1998

1991 1998 1998

After 50 years at The first Tata electric

The helm, JRD Tata indigenously companies

steps Down as designed, acquire power

Chairman of developed and facilities from

Tata sons. He is manufacture ACC.

replaced by the car is introduced

present chairman, by Tata Indica.

Ratan N. Tata.
TATA HISTORY : 1998 – PRESENT

Tata Tea acquires Tata Steel becomes

the Tetley group, UK. The first Tata Group Co.

this is the first major to win the JRD QV award

acquisition of an Tata.

international brand by

an Indian Group.

2000 2000

2000 2000 2001

The Aditya Birla Significant changes Tata announces

Group, AT&T announced in the a partnership

and Tata Tata Sons board with AIG to offer

industries to improve corporate insurance and

sign an MOU governance. financial

to merge their services products

cellular properties in India

into a joint venture

AIG HISTORY : 1919 – PRESENT

1919 : C.V. Starr founds Americal Asiatic under writers.

1921 : Asia life insurance Co. is formed.

1926 : AAU opens American International under writers.

1930’s : AIU begins a Worldwide expansion.

1939 : Headquarters moved to New York.

1940’s : Latin America penetration begins

1946 : AIU becomes the first foreign insurance operation allowed back into
Japan & Germany after W WII.

1950’s : AIU’s presence includes over 75 offices Worldwide.

1960’s : Acquisition. Basic structure in place for DBG.

1967 : M.R. Greenberg becomes president and CEO. AIG established as a

holding Co.

1969 : AIG goes public.

1970’s : AIG acquires and creates specialty companies.

1984 : AIG lists its shares on the New York Stock Exchange.

1990’s : Expansion in China, Latin America, Israel, and the former Eastern Bloc.

1990 : Financial Services begins expansion.

1992 : AIG becomes the first foreign the first foreign insurance organization
to receive an operating license from the Chinese government.
1994 : AIG enters the untapped markets of Russia and Uzbekistan.

1996 : The Asian Infrastructure Fund raises $ 1.1 billion.

1998 : Reopening of the Bund Building.

1999 : Acquisition of Sun America Inc.

2001 : AIG Acquires American General AIG’s net income rises to a record high of
$ 7.66 Bn. Consolidated assets approximate $ 492B.
 SWOT ANALYSIS

STRENGTHS:

1. No. 1 Private Player in the insurance industry in India.

2. Life Insurance linked with Investments
3. Tax benefits
4. Security against loans
5. Helps in future planning and provides financial consultancy.
6. Covers risk.

WEAKNESS:

1. Negativity relating insurance and ‘Agents’.

2. No fixed Salary.

OPPORTUNITIES:

1. High Network Individuals (HNI)

2. A clear career path
3. All round support through exclusive advertising, own in house consultant, and
world-class training.
4. A comprehensive benefit package.
THREATS:

1. Dynamic environment
2. Increasing Competition
3. Non-creativity
4. An Unfocused approach
5. Complacency and arrogance
 METHODOLOGY
Data can be classified under the two main categories, depending upon the sources
used for the collection purposes, i.e., ‘Primary data’ and ‘Secondary data’. The
validity and accuracy of final judgement is most crucial and depends heavily upon
how well the data is gathered in the first place. The methodology adopted for data
gathering also affects the conclusions drawn there from.
Primary data: Primary data are those data, which are collected by the investigator
himself for the purpose of a specific enquiry or study. Such data are original in
character and are generated by surveys conducted by individuals or research
institutions. Thus we can say that the data that is being collected for the first time is
called primary data.
Methods that can be used for collection of primary data are as follows:
♣ Direct personal observation: Under this method, the
investigator presents himself personally before the informant
and obtains first hand information. This method provides
greater degree of accuracy.
♣ Telephone survey: Under this method the investigator,
instead of presenting himself before the informants, contacts
them on telephone and collects information from them.
♣ Indirect personal interview: Under this method, instead of
directly approaching the informants, the investigator
interviews several third persons who are directly or indirectly
concerned with the subject – matter of the enquiry and who
are in possession of the requisite information. This method is
highly suitable where the direct personal investigation is not
practicable either because the informants are unwilling or
reluctant to supply the information or where the information
desired is complex or the study in hand is extensive.

♣ Questionnaire method: Under this method, the investigator

prepares a questionnaire containing a number of questions
 pertaining to the field of enquiry. Under this method, the
investigator directly contact the person and collect the
information through questionnaire related to the data. The
aims and objectives of collecting the information, and
requesting the respondents to cooperate by furnishing the
correct replies and fill the questionnaire with correct
information. The success of this method depends upon the
proper drafting of the questionnaire and the cooperation of the
respondents.
Secondary data: When a person uses data, which has already been collected by
someone else, then such data is known as secondary data. Secondary data should be
used with extra caution since someone else has collected it for his/her use. Before
using such data the investigator must be satisfied with regard to the reliability,
accuracy, adequacy and suitability of the data to the given problem under
investigation.
Methods that can be used for collection of secondary data are as follows:
♣ Published sources: There are a number of national
organisations and international agencies, which collect and
publish statistical data relating to business, trade, labour,
price, consumption, production, etc. These publications of the
various organisations are useful sources of secondary data.
♣ Unpublished sources: The records maintained by private
firms or business houses who may not like to release their data
to any outside agency are known as unpublished sources of
collection of secondary data.
Both ‘Primary data collection methods’ and ‘Secondary data collection methods’ have
various advantages as well as limitations. Thus it would be prudent to use both these
methods to one’s advantage.

More of the primary data has been used in this project.

 INSURANCE ADVISOR

IRDA TRAINING

The Insurance Act, 1938 lays down that an insurance agent will be issued a license
under section 42 of the Act, by the IRDA of an officer authorized by it in this behalf.

Tata AIG offices and approved by INSURANCE REGULATORY AND

DEVELOPMENT AUTHORITY (IRDA). A licence issued by the IRDA will be
valid for three years. The licence may be to act as an agent for a life insurer, for a
general insurer or as a “Composite Insurance Agent” working for a life insurer as well
as a general insurer.

An Insurance agent have undergone practical training for at least 100 hours in life or
general insurance business. He should have also passed the pre-recruitment
examination conducted by the Insurance Institute of India.

An Insurance Agent have to give a demand draft for Rs. 1000 payable in favor of Tata
AIG Life Insurance Co. Limited.
 COMPETITION DISTRIBUTION STRATEGIES

TATA AIG AGENCY

Managing Director

Director - Agency Director –

alternate channels

Asst. Director – Agency

(Three Zones)

Zone Head

Agency
Manager

Management
Business Associate

Senior Business
Associate

Business Associate
• Recruit and manage sales teams
• Future to grow
• Earn – BIG !!!!! Insurance Advisor
 CAREER GROWTH CHART

MANAGEMENT BUSINESS (4% of SBA)

ASSOCIATES

SENIOR BUSINESS (8% of BA)

ASSOCIATES

(CAN’T GO BUSINESS ASSOCIATES (25% of Total Advisors)

BEYOND THIS)

AGENTS (Upto 30%) ADVISORS (Upto 40%)

OTHER INSURANCE TATA AIG INSURANCE

COMPANIES COMPANIES

COMPARISION
Comparison between Tata AIG and other Insurance Company

COMPARISION OF GROWTH OF
AGENTS OF DIFFERENT INSURANCE
COMPANIES

100
80 Tata AIG
60 Insurance Co.
40 Others
20 Insurance Co.
0
0 20 40 60
 MARKETING STRATEGIES OF
TATA AIG INSURANCE

TATA AIG HEALTH FIRST

Quality healthcare is expensive; you need a policy that covers all

contingencies. HealthFirst provides you with security by
guaranteeing a lump sum irrespective of your medical bills. You can
purchase this policy while your existing medical insurance policy is
still in force and renew it until age 64 without additional medical
examinations.
Key features include:

THE BENEFITS SHOWN BELOW ARE FOR A POLICY

PURCHASED FOR 10 UNITS

 Daily Hospitalization Benefit (DHB): During hospitalization, we

will pay an allowance of Rs. 2,500 per day.
 Surgical Benefit: A lump sum of Rs. 1,25,000 is paid for
specified surgical procedures. We pay the complete amount,
even if the procedures costs less. This benefit is payable only
if DHB is payable.
 Post-hospitalization Benefit: After hospitalization, we will pay
Rs. 1,250 a day for follow-up treatment (up to a maximum of 3
days). This benefit is payable only if DHB is payable.
 Critical Illness Cover: You get Rs. 12.50 lakhs in the case of
first diagnoses of specified of the 12 critical illnesses.
 Death Benefit: In the unfortunate event of your death,
coverage of Rs. 10,000 is provided to protect your family.This
benefit is payable if no other benefit has been claimed for.
 Policy can be purchased from 1 to 10 units.

TAX BENEFITS AND AGE ELIGIBILITY

 Premiums paid for Health Insurance Benefits are eligible for

tax benefits under section 80D, while premiums for Life
Insurance Benefits are eligible for tax benefits under section
80C of the Income Tax Act, 1961.*
 Policy available for persons between 18 and 60 years of age.
 Treatment must occur at a pre-approved hospital.
MAHALIFE GOLD

This unique policy is an ideal planning vehicle to fund your

retirement. It provides a steady income and insurance coverage

for life. Premiums are payable only for the first 15 years, and can

be used to cover the future expenses of your children.

Key features include:

 A guaranteed annual coupon of 5% of the sum assured

every year for the rest of the insured’s term from the 10th

policy anniversary.

 Yearly cash dividends are available from the 6th policy

anniversary onwards (depending on Company

performance).

 The entire sum assured is paid tax-free as per current

Income Tax Laws.

INVESTASSURE GOLD

InvestAssure Gold is a non-participating Whole Life Unit Linked

insurance plan, which offers you the unique advantage of

combining the protection and tax advantages of life insurance

with the attractive prospects of investing in different kinds of

securities through multiple fund options. With this plan, you

can direct the investments by creating your own investment

fund portfolio from a range of options to suit your needs and

preferences.

Key features include:

 Flexibility to choose your premium payment term: 5

years or for the entire duration of the policy.

 Benefit period: For the entire life till 100 years of age.

 Facility to increase the premium through Top up

Premium.

 Provides security to your family in case of your

unfortunate death.

 Facility to increase the Sum Assured through Top up

Premium.

 Gives you the flexibility to choose your fund based on

your risk profile - Whole Life Mid Cap Equity, Whole Life
 Aggressive Growth, Whole Life Stable Growth, Whole

Life Income, and Whole Life Short Term Fixed Income.

You may choose to switch between the funds, anytime

subject to certain conditions.

 Enables you to enjoy market-linked returns with a

potential for higher growth.

 Opportunity to bring you additional income on funds

that might have otherwise given you minimum returns

in your savings account, subject to market performance.

 Loyalty Benefit: Additional 0.25% of units under the

Regular Premium Account every 5 years provided the

policy is in force.
INVESTASSURE PLUS

InvestAssure Plus is a single premium Unit Linked insurance plan

especially designed for the investment-savvy. It gives you the

flexibility of choosing your own investment strategy, besides

providing protection to your loved ones in case of a misfortune.

This plan gives you an opportunity to make the most of good

market returns, albeit with an increased investment volatility. At

the same time, it does not compromise the security that you

want to provide to your loved ones.

Multiple benefits of Invest Assure Plus:·

 Provides security to your family in case of your unfortunate

death.

 Gives you the flexibility to choose your fund based on your

risk profile.

 Enables you to enjoy market-linked returns with a potential

for higher growth.

 Key features include:

 Policy terms of 15, 20, 25 or 30 years.

  No penalty charges for surrendering the policy any time

after the 3rd year.

 Flexibility to choose your Sum Assured, depending on your

age profile and your needs.

 You have a choice of premium multiples to choose from.

 Any premium not deducted for coverage and charges will

be invested in the funds chosen by you viz. Equity Fund,

Income Fund, Aggressive Growth Fund, Stable Growth Fund

and a Short Term Fixed Income Fund.

 Flexibility to switch between funds and partial withdrawal.

 InvestAssure Plus also offers Top-ups premiums and the

facility to have a Sum assured on the Top-up premium as

well.

Tax Benefits

 Premiums paid under this plan are eligible for tax benefits

under Section 80C of the Income Tax Act, 1961. Any sum

received under this plan is exempt from tax under section

10(10D) of the Income Tax Act, 1961.*

 Age Eligibility
Term of Policy Minimum Age

Maximum Age

15 years 30 days 60

years

20 years 30 days 55

years

25 years 30 days 50

years

30 years 30 days 45

years Maturity and Death

Benefits
LIFE PLUS

If you outlive the 20-year term of a LifePlus policy, all of your

premium payments will be refunded; if you die by natural causes

while the policy is in force, your beneficiaries will receive the sum

assured; should you die due to accidental causes, your

beneficiaries will receive double the sum assured.

Key features include:

 All premiums paid are returned (without interest) in the

event you outlive the policy’s 20-year term.

 Premiums are payable only for the first 15 years of the 20-

year term.
ASSURE 21 YEARS MONEY SAVER

This savings plan gives you the cash payments at specified

intervals to fund your family’s needs at critical milestones or

support your financial obligations. You get the dual benefits of

life insurance coverage plus the flexibility of periodic payments.

Key features include:

 10% of the sum assured is paid on survival on the 3rd /6th /

9th /12th /15th and 18th policy anniversaries.

 40% of the sum assured will be paid on maturity (i.e. on

the 21st anniversary of this policy).

 The entire sum assured is distributed to your beneficiaries,

irrespective of cash payments already made, in the

unfortunate event of your death before the end of the

policy’s term.

 A 10% Guaranteed Addition is payable on death or

maturity, if the policy has been inforce for 10 years.

 A reversionary and terminal bonus payable on death or

maturity. Terminal bonus is available only if policy is in

force for more than 10 years.

 Bonuses are paid depending on performance of the

company.
MAHALIFE

This distinctive policy provides a steady income and insurance

coverage for life. Premiums are payable only for the first 12

years. You can even use this to cover future expenses of your

children.

Key features include:

 A guaranteed annual coupon of 5% of sum assured,

every year for the rest of the insured’s life from the 12th

policy anniversary onwards.

 If Tata AIG Life performs well, you get yearly cash

dividend from the 6th policy anniversary onwards.

 On death or at maturity at age 100, the entire sum

assured will be paid tax-free according to current

Income Tax Laws.

SHUBHLIFE

Have you been delaying getting life insurance because you

cannot afford to pay high monthly premiums? Then we have

the ideal product for you.

ShubhLife provides you 100% life insurance protection and a

range of bonuses but the premiums you pay are among the

lowest of any similar endowment policy.

Key features include:

 Term policies just give you death cover. This policy

gives you bonuses along with death cover.

 You can choose a term of 10, 15, 20, 25 or 30 years.

 Apart from full premium paying term, you can pay your

premiums over 3, 5, 7 or 10 years.

 Guaranteed addition of 3% of sum assured of the Basic

Policy is added on the first (1st) policy anniversary and

on every alternate policy anniversary thereafter up till a

maximum of half the policy term. The GA will be payable

if the insured dies while the policy has been in force or if

the policy matures.

  A simple reversionary bonus will be credited from the

sixth policy anniversary until the end of the plan term

depending on the performance of our Company.

TAX BENEFITS, RIDERS AND AGE ELIGIBILITY

 Premiums paid under this plan are eligible for tax

benefits under Section 80C of the Income Tax Act, 1961.

Any sum received under this plan is exempt from tax

under section 10(10D) of the Income Tax Act, 1961.*

 Attach Disability, Accident, Term, Waiver of premium

and Critical Illness riders to this policy for added

protection.

Endowment Plan Age Eligibility

10 Years 18 to 65 Years

15 Years 18 to 60 Years

20 Years 18 to 55 Years

25 Years 18 to 50 Years

30 Years 18 to 45 Years
ASSURE GOLDEN YEARS PLAN

Assure Golden Years is an endowment policy that provides

both safety and steady returns. In the unfortunate event of

your death, your dependants will receive the sum assured;

otherwise your savings will continue to grow. Should you live

past the term of the policy, you will receive both the sum

assured as well as a host of bonuses.

Key features include:

 A guaranteed addition of 10% of the sum assured if the

policy has been in force for 10 years or more, is payable

on death or maturity.

 A reversionary bonus is payable on death or maturity.

 A Terminal bonus paid on maturity or death if the policy

has been in force for a minimum 10 years.

 Reversionary and Terminal bonuses are non-guaranteed

and are dependent on Company performance.

TATA AIG LIFE NIRBHAY LIFE

Tata AIG Life has a whole new participating plan which will

surprise you continually with its remarkable benefits.

Premiums are payable only for the first 9 years, after which

you will receive all your money and much more!

You can opt for a policy that lasts 12, 15 or 20 years.

During the term of the policy, you will receive 130% of the

sum assured.

Tax Benefits, Additional Benefits and Age Eligibility

 Premiums paid under this plan are eligible for tax

benefits under Section 80C of the Income Tax Act,

1961. Any sum received under this plan is exempt

from tax under section 10(10D) of the Income Tax

Act, 1961.*

 For insured age of less than 18 years, the Payor

benefit is inbuilt.

 For insured age of 18 years and above, waiver of

premium and accidental death benefit are inbuilt.

 Anyone in the age group 6 years - 55 years is eligible

for the policy.

 FINDINGS
QUESTIONNAIRE ANALYSIS

Q.1. Have you taken life Insurance for you?

Yes No
57% 43%

Yes
No

INFERENCE:
 57% of the Respondents had taken the life insurance
 However 43% of the Respondents had not taken any policy
Q.2. Who is your Insurer
LIC Private Sector Insurer Both
75% 19% 6%

LIC

Private Sector
Insurer
Both

INFERENCE:
 75% of the respondents felt that the lic os best policy
 While 19% of respondents thought it was not so good, 6%
thought that both policy are good
Q.3. What made you buy from Private Sector?

Better Service Attractive Better Returns Agent known Other

Plans
22% 27% 37% 9% 5%

Better Service
Attractive Plans
Better Returns
Agent known
Other

INFERENCE:
22% people said that they buy from private sector because of better service,27%
thought because of attractive plans 37% because of better returns and 9% because of
agent known to them and 5 % of some other factor
 Q.4. Who is your Agent?

Old family agent Professional Acquaintance/So Friend/Family Other

for years meone referred member/relative
17% 27% 12% 42% 2%

Old family agent for

years
Professional

Acquaintance/Someone
reerred
Friend/Family
member/relative
Other

INFERENCE:

17% agent are old family agent, 27% are professional,12% are acquaintance, 42% are family
and friends while 2% are others
Q.5. How much is the maximum annual income a layman can think of for an
Insurance Agent?

Upto Rs. 5 lacs Rs. 5 to Rs. 10 Rs. 10 to Rs. 50 Rs. 50 lacs +

lacs lacs
77% 16% 6% 1%

Upto Rs. 5 lacs

Rs. 5 to Rs. 10 lacs
Rs. 10 to Rs. 50 lacs
Rs. 50 lacs +

INFERENCE:

77% People think that an insurance agent has 5lacs salary annually, 16% thinks that it
is upto 10 lacs, 6% thinks that it is upto 50 lacs and 1 % thinks that it is above 5o lacs
Q.6. Given an opportunity, would you like to earn a big and stable income by being
a part of Tata AIG?

Yes No
87% 13%
We

Yes
No

INFERENCE:
87% people said that they will be part of tata aig in future
13% said that they will not be the part of tata aig
 RECOMMENDATIONS

RECOMMENDATIONS

• More emphasis should be on promotional activities.

• Plenty of advertisement should be done through T.V,

Newspaper and Radio as these media’s are having maximum
recall value.

• Total financial planning and advice should be given to every

customer.

• More business opportunity seminars should be conducted to

make people aware of the offer given.

• The company should quite frequently send their agent to the

customer so that they should be aware of the latest offer.

• The company should attempt to open more and more of its

branches in the country so as to promote their product
publicity.
 CONCLUSION

After making an in depth study about the Tata AIG Insurance Co., have come to the
conclusion that there has been tremendous changes in the Insurance History. And
with it there has been continuous growth in this sector both in Indian as well as world
context. The opening up of Insurance Sector has changed the whole look of Insurance
Industry.

A joint venture between Tata and AIG has shown a positive progress in Insurance
Industry. Tata AIG has been growing year after year and this company has made a
strong position in India. It has become the number one company in customer
satisfaction.

The game is old but the rules are new and still developing. The same strategy adopt
by Tata AIG. Insurance Agent has a career growth opportunity in this Insurance Co.
as compare to other Insurance Co. An Insurers advisor of Tata AIG can earn a big and
stable income by being a part of Tata AIG Insurance Company.
 LIMITATIONS

Every study has to have limitations in terms of time cost, human error & so on the
best efforts were put in to get information from the company. During the entire
research period witch spanned for 2 months there were certain constraints faced
because of circumstances and capabilities. The research conducted was under the
following constraints :

 There are - neck to neck competition between Insurance Companies.

 As the project had a time limit of 8 weeks. Getting appointments from the
respondents takes time.

 Non participation of the respondents in the research process due to fear of

disclosing the details about the influencers.

 Time and distance were another factor that sewed as the limitation since located in
outskirts of Delhi.

 The company did not gave any information regarding the finance.
 QUESTIONNAIRE
CHANGING PROFILE OF INSURANCE AGENT
A PRACTICAL CASE STUDY
Respondent Details
Name: Date of Birth:
Age:
Address:

Telephone: (Mobile) (off) (Resi)

Marital status: Single / Married Sex: M / F
Education: Undergraduate / Graduate / Post Graduate Occupation:
Annual Income (Rs.): Up to 1 lakh/1 - 2 lakh/2 - 3 lakh/3 - 5 lakh/5 - 10 lakh/10
lakh +
TICK IN THE APPROPRIATE ANSWERS GIVEN BELOW.

(1) Have you taken Life Insurance for you? Yes / No

(IF YES MOVE TO SET 1 ; IF NO MOVE TO SET 2)

SET 1

(2) Who is your Insurer?

a (a) LIC
b (b) Private Sector Insurer
c (C) Both
(if the choice is (b) or (c) for question number 2 then answer 3 otherwise move to
4)

(3) What made you buy from private sector?

a) Better service
d b) Attractive plans
e c) Better returns
f d) Agent known

(4) Who is your agent?

(a) Old family agent for years
g b) Professional
h c) Acquaintance / someone referred
i d) Friend / family member / relative

(5) What do you think is expected of an Insurance Agent?

a) Better service
 b) Knowledge of product & competition
c) Analysing needs & suggest right product
d) Must be well-known

(Move to set III)

Set - II
(6) What is the reason of your not being Insured?
a) I am too young to have Life Insurance
j b) Cannot afford
k c) Do not need Insurance - no Dependents
l d) No one ever guided me properly

(7) If you think of buying an Insurance policy, what qualities would you look for in
the Agent?
a) Better service
b) Knowledge of product & competition
m c) Analyze need & suggest right product
d) Must be well-known

(move to set III)

Set - III
How much is the maximum annual income you can think of for an Insurance Agent?
a) Up to Rs. 5 lakhs
b) Rs. 5 to 10 lakhs
c) Rs. 10 - 50 lakhs
d) Rs. 50 lakhs +

Prompt: Are you aware that AIG has a large number of insurance advisor who are
making many times more than Rs. 50 lakhs per annum and in TATA AIG, in India,
there are advisor who have started touching the 50 lakhs figure and are slated to
achieve much more than that within this year.

(8) Are you aware of a large number of successful insurance advisor of a company
growing up the value change and becoming leaders with stable earning of much
more than Rs. 50 lakhs per annum?
Yes / No

Prompt: AIG offers a growth plan to its advisor worldwide and a large number of
such business partner earn more than one million dollars per annum. Similar plan in
India makes the advisor grow into Business Associate, who recruit, develop and
manage large sales team. Successful Business Associate are earning up to more than
Rs. 25 lakhs per annum, with the income growing rapidly every year. The day of
Indian Millionaires (In US dollar terms) is not far.

(9) Do you think that future lives in service & knowledge sectors?
Yes / No
(10) Do you believe you have the capability to get fresh knowledge and use it in
betterment of the society by analzing their needs & providing right solutions?

Yes / No

(11) Do you believe you have the capability of successfully leading a team?
Yes / No

(13) Given an opportunity, would you like to earn a big and stable income by being
a part of Tata AIG?
Yes / No

Prompt: TATA AIG is a joint venture of the well-known, well respected and the
most trusted TATA Group of India & AIG (American International Group) the
biggest insurer in the world by market value. Present in over 130 countries, AIG has
assets of over $ 600 billion & annual income of over $ 10 billion. AIG ranks among
the top in FORBES & FORTUNE 500 companies & is the only AAA rated company
in the world.

(14) Do you know someone who could be interested in taking up insurance selling
as a career?
Yes / No

(if answer to question number 14 is Yes please take the details on a separate
sheet)

Trainee Name……………………City………………Institute………………..
Remarks……Very Interested / Interested / Not Interested Follow
UPdate……………..
 BIBLIOGRAPHY

 WWW.TATAAIGINSURANCE.COM

 WWW.TATA.COM

 WWW.AIG.COM

 WWW.INSURANCE.COM

 WWW.GOOGLE.COM

 WWW.YAHOO.COM

 COMPANY PROVIDED MATERIAL

 TEXT BOOK FOR LIFE INSURANCE PRESCRIBED BY IRDA.

 TATA AIG BROSHERS

 MAGAZINES AND NEWSPAPERS

 COMPANY LITERATURE

 MARKETING RESEARCH