A

PROJECT REPORT ON
CUSTOMER AWARENESS REGARDING MET
LIFE INDIA INSURANCE COMPANY
IN SHRI NAGAR, J&K


UNDER SUPERVISION OF:
SUBMITTED BY
NAME :

ENROLLMENT NO :

Submitted in patia! "u!"i!!ment #" t$e e%uiement& "# %ua!i"'in(
MBA
)*++
1
CUSTOMER AWARENESS REGARDING MET
LIFE INDIA INSURANCE COMPANY
IN SHRI NAGAR, J&K

Under Supervision of :
Submitted By:
Name :
Programme Code : MBA
Enrollment No. :
Name of te Study Centre :
Study Centre Code :
!egional "entre :

#
CERTIFICATE OF ORI,INALITY
$is is to "ertify tat te pro%e"t titled -CUSTOMER A.ARENESS
RE,ARDIN, MET LIFE INDIA INSURANCE COMPANY IN S/RI
NA,AR0 J123 is an original &or' of te Student and is being submitted in
partial fulfillment for te a&ard of te -Ma&te4& De(ee in Bu&ine&&
Admini&tati#n( of India ,and$i Nati#na! Open Uni5e&it'6 $is report
as not been submitted earlier eiter to tis University or to any oter
University)*nstitution for te fulfillment of te re+uirement of a "ourse of
study.
Si(natue #" Student Si(natue #" Supe5i&#
,,,,,,,,,,. ,,.,,,,,,,,,
-

AC2NO.LED,EMENT
.it Candor and Pleasure * ta'e opportunity to e/press my sin"ere tan's
and obligation to my esteemed guide,,,,,,. *t is be"ause of is able
and mature guidan"e and "o0operation &itout &i" it &ould not ave been
possible for me to "omplete my pro%e"t.
*t is my pleasant duty to tan' all te staff member of te "omputer "enter
&o never esitated me from time during te pro%e"t.
1inally2 * gratefully a"'no&ledge te support2 en"ouragement 3 patien"e of
my family2 and as al&ays2 noting in my life &ould be possible &itout 4od2
$an' 5ou6
(STUDENT NAME)
7
DECLARATION
* ereby de"lare tat tis pro%e"t &or' titled -CUSTOMER A.ARENESS
RE,ARDIN, MET LIFE INDIA INSURANCE COMPANY IN S/RI
NA,AR0 J123 is my original &or' and no part of it as been submitted for
any oter degree purpose or publised in any oter from till date.
(STUDENT NAME)
8

S6 NO6 CONTENTS PA,E NO6
1. $itle of te pro%e"t,,,,,,,,,.,,,,,,.,,.,....9
#. *ntrodu"tion to topi",,,,,,,,.,,,,,,,,,.,..:
-. ;iterature revie&,,,,,,,,,,,,,,,,,,,.-<
7. =b%e"tive of te study,,,,,,,,,...,,,..,,,,.71
8. !esear" Metodology,,.,,,,,,,,..,..,,,,...7#
>. ?ata Analysis and *nterpretation,,,,,,,,...,.,,....78
9. 1indings of te Study,,,,,,,,,,,,,..,,,,.8@
:. Con"lusion and !e"ommendations,,,,,,,..,,,.,..><
@. ;imitation of te Study,,,,,,,,,,,,,,,,,.>#

1<. Bibliograpy...,,,,...,,,,,,,,,.,,..,,,,..>-
11. Auestionnaire,,,,,,,,,,,,,,,,,,,,,.>7
>
TABLE OF CONTENTS
CUSTOMER AWARENESS REGARDING MET
LIFE INDIA INSURANCE COMPANY
IN SHRI NAGAR, J&K


9
C/APTER 7 +
INTRODUCTION
*nsuran"e is a "ontra"t bet&een t&o parties &ereby one party "alled insurer underta'es in
e/"ange for a fi/ed sum "alled premiums2 to pay te oter party "alled insured a fi/ed
amount of money on te appening of a "ertain event.(
*nsuran"e is a prote"tion against finan"ial loss arising on te appening of an une/pe"ted
event. *nsuran"e "ompanies "olle"t premiums to provide for tis prote"tion. A loss is paid
out of te premiums "olle"ted from te insuring publi" and te *nsuran"e Companies a"t
as trustees to te amount "olle"ted.
1or E/ample2 in a ;ife Poli"y2 by paying a premium to te *nsurer2 te family of te
insured person re"eives a fi/ed "ompensation on te deat of te insured.
Similarly2 in "ar insuran"e2 in te event of te "ar meeting &it an a""ident2 te insured
re"eives te "ompensation to te e/tent of damage.
*t is a system by &i" te losses suffered by a fe& are spread over many2 e/posed to
similar ris's. *nsuran"e "ompanies also earn investment profits2 be"ause tey ave te use
of te premium money from te time tey re"eive it until te time tey need it to pay
"laims. $is money is "alled te float. .en te investments of float are su""essful tey
may earn large profits2 even if te insuran"e "ompany pays out in "laims every penny
re"eived as premiums. *n fa"t2 most insuran"e "ompanies pay out more money tan tey
re"eive in premiums. $e e/"ess amount tat tey pay to poli"yolders is te "ost of float.
An insuran"e "ompany &ill profit if tey invest te money at a greater return tan teir
"ost of float.
An insuran"e "ontra"t or poli"y &ill set out in detail te e/a"t "ir"umstan"es under &i"
a benefit payment &ill be made and te amount of te premiums.
:
Classifi"ation of insuran"e
$e insuran"e industry in *ndia "an broadly "lassify in t&o parts. $ey are.
1B ;ife insuran"e.
#B Non0life CgeneralB insuran"e.
+8 Li"e in&uan9e:
;ife insuran"e "an be defined as Dlife insuran"e provides a sum of money if te person
&o is insured dies &ile te poli"y is in effe"t(.
)8 N#n:!i"e ;(enea!8 In&uan9e:
$riton insuran"e "o. ltd &as te first general insuran"e "ompany to be establised in *ndia
in 1:8<2 &ose sares &ere mainly eld by te Britis. $e first general insuran"e
"ompany to be set up by an *ndian &as *ndian mer"antile insuran"e "o. ;td.2 &i" &as
stabiliEed in 1@<9. $ere emerged many a player on te *ndian s"ene tereafter.
$e general insuran"e business &as nationaliEed after te promulgation of 4eneral
*nsuran"e Corporation C4*CB =1 *ndia undertoo' te post0nationaliEation general
insuran"e business.
./Y INSURANCE<
*nsuran"e is desired to safeguard oneself and oneFs family against Possible losses on
a""ount of ris's and perils it provides finan"ial Compensation for te losses
suffered due to te appening of any unforeseen event.
By ta'ing life insuran"e a person "an ave pea"e of mind and need not &orry about te
finan"ial "onse+uen"es in "ase of any Untimely deat.
Certain insuran"e "ontra"ts are also made "ompulsory by legislation. for e/amples2 motor
vei"les a"t 1@::2 stipulates tat a person driving a vei"le in publi" pla"e sould ave a
@
valid insuran"e pertains to te environmental prote"tion a"t2 &erein a person using or
"arrying aEardous substan"e Cas defined in te a"tB must old a valid publi" liability Ca"tB
poli"y.
./O PROVIDE INSURANCE<
*n *ndia2 insuran"e prote"tion is made available troug publi" se"tor insuran"e
"ompanies2 namely2 life insuran"e Corporation of *ndia C;*CB and oter private
"ompaniesF li'e0 *C*C* prudential2 G?1C allianE ba%a%2 birla sun life2 'ota' maindra et".
/O. TO ,ET INSURANCE<
$e simplest pro"edure to obtain insuran"e is:
o Approa" te insuran"e "ompany dire"tly.
o $roug insuran"e agent of te "on"erned "ompanies.
o *ntermediaries.
./AT IS T/E OT/ER ALTERNATIVE TO INSURANCE<
=ne alternative to insuran"e is to provide self0insuran"e i.e. te individual as to "reate a
fund to meet ris' e/igen"ies.
Spe"ified trust as also tried to provide insuran"e by a s"eme of self0 insuran"e.
Go&ever2 tese are not very popular. $e postal insuran"e "overage to all people.
$ere are many finan"ial instruments2 &i" advo"ate savings and provide future returns
at spe"ifi" intervals su" as te provident fund and pension plans. Go&ever2 none of tese
provide for life "overage.
1<
./AT ARE T/E OT/ER BENEFITS OF TA2IN, INSURANCE<
+6 Ta= e!ie":
a. Under se"tion :<C of in"ome ta/ a"t2 a portion of premiums paid for life insuran"e
poli"ies are dedu"ted from ta/ liability. Similarly2 e/empted from premiums.
b. Money paid as "laim in"luding bonus under a life poli"y is e/empted from payment
of *n"ome ta/.
En"ourage Savings: An *nsuran"e s"eme en"ourages trift among individuals. *t
in"ul"ates te abit of saving "ompulsorily2 unli'e oter saving instrument2 &erein te
saved money "an be easily &itdra&n.
1. $e benefi"iaries to an insuran"e "laim amount are prote"ted from te "laims of
"reditors by affe"ting a valid assignment.
#. 1or a poli"y ta'en under te M.P A"t 1:972 CMarried &omenFs property a"tB2 a
trust is "reated for &ife and "ildren as benefi"iaries.
-. ;ife Poli"ies are a""epted as se"urity for a loan. $ey "an also be surrendered for
meeting une/pe"ted emergen"ies.
7. Based on te "on"ept of saring of losses2 te so"iety &ill benefit as "atastropi"
losses are spread globally
+6+ ,RO.T/ AND ORI,IN OF INSURANCE SECTOR.
*nsuran"e in modern form originated in te Mediterranean during te 1-t "entury. C$e
earliest referen"es to insuran"e0 found in Babylonia2 te 4ree's and te !omansB.
Marine insuran"e is te oldest form of insuran"e follo&ed by life insuran"e and fire
insuran"e.
$e istory of life insuran"e in *ndia dates ba"' to 1:1: &en it &as "on"eived as a means
to provide for Englis .ido&s.
11
A iger premium &as "arged for *ndian lives tan te non0*ndian lives C"onsidering to
be more ris'ier for "overageB.
=riental life *nsuran"e Company &as in"orporated at Cal"utta in +>+>2 follo&ed by
Bombay ;ife Assuran"e Company in +>)? and $riton *nsuran"e Company for 4eneral
*nsuran"e in +>@*. By +A?> tere &ere 19> insuran"e "ompanies.
*nsuran"e regulation formally began in *ndia troug te passing of t&o a"ts
te ;ife *nsuran"e "ompanies A"t of 1@1# and
$e Provident 1und A"t of 1@1#.
Go&ever te first "ompreensive legislation &as introdu"ed &it te *nsuran"e A"t of
1@-: tat provided stri"t state "ontrol over insuran"e business in te "ountry. $e business
of *ndia *nsuran"e gre& at a faster pla"e as "ompetition amongst te *ndian "ompanies
intensified. $e de"ision of nationaliEation of life insuran"e business too' pla"e in 1@8>
&en #78 *ndian and foreign insuran"e provident so"ieties &ere first merged and ten
nationaliEed.
*t paved te &ay to&ards te establisment of one nationaliEed monopoly
"orporation "alled ;ife *nsuran"e Corporation C;*CB. NationaliEation &as %ustified
on te grounds tat it &ould "reate te mu" needed funds for rapid
industrialiEation and self0relian"e in eavy industries.
4eneral *nsuran"e follo&ed suit and 1@>:H
$e *nsuran"e A"t &as amended to allo& for so"ial "ontrol over te general
insuran"e business.
Subse+uently in 1@9-2 non0life insuran"e business &as nationaliEed and te 4eneral
*nsuran"e Business CNationaliEationB A"t2 1@9# &as promulgated. $ill end of 15 1@@@0
#<<<2 t&o state0run insuran"e "ompanies2 namely2 ;ife *nsuran"e Corporation C;*CB and
4eneral *nsuran"e Corporation C4*CB &ere te monopoly insuran"e providers in *ndia.
Under 4*C tere &ere four subsidiaries
National *nsuran"e Company ;td.
1#
=riental *nsuran"e Company ;td.
Ne& *ndia Assuran"e Company ;td.
United *ndia Assuran"e Company ;td.
*n fis"al #<<<0<12 te *ndian federal government lifted all entry restri"tions for private
se"tor investors. 1oreign investment insuran"e mar'et &as also allo&ed &it #> per"ent
"ap. 4*C &as "onverted into *ndiaIs national reinsure from ?e"ember2 #<<< .All te
subsidiaries &or'ing under te 4*C umbrella &ere restru"tured as independent insuran"e
"ompanies.
+6)6 A Bie" $i&t#' #" t$e In&uan9e Se9t#
$e business of life insuran"e in *ndia in its e/isting form started in *ndia in te year 1:1:
&it te establisment of te =riental ;ife *nsuran"e Company in Cal"utta.
=ne of te important milestones in te life insuran"e in *ndia isH
1@1#: $e *ndian ;ife Assuran"e
1or over 8< years2 life insuran"e in *ndia &as defined and driven by only one "ompany0
te ;ife *nsuran"e Corporation of *ndia C;*CB. .it te *nsuran"e !egulatory and
?evelopment Autority C*!?AB Bill 1@@@ paving te &ay for entry of private "ompanies
into bot life and general se"tors tere &as bound to be ne&0found e/"itement0 and ne&
su""ess stories. $oday2 %ust tree years sin"e teir entry2 teir "umulative sare as
"rossed 1-J Csour"e: *!?AB2 far e/"eeding e/pe"tations. Clearly insuran"e is on a gro&t
pat.
$e per"entage of premium in"ome to 4?P &i" &as %ust #.-J in #<<<0<1 rose to -.-J
in #<<#0<-H and life insuran"e as emerged as te dominant "ontributor to tis gro&t.
$e industry presented a uge opportunity. ;ife insuran"e penetration2 for instan"e2 &as at
an abysmal ##J of te insurable population. Go&ever2 private players ave ad to rise to
many "allenges. $ey &ere fa"ed &it attitudinal barriers to&ards te "ategory and te
per"eption tat insuran"e &as only a ta/ saving tool. *nsuran"e per se ad lost it basi"
1-
rationale: prote"tion. *t &asnFt surprising ten tat its potential lay froEen and une/ploited.
$e "allenge for private insuran"e players &as to "ange te establised "ategory driver
and get "ustomers to evaluate life insuran"e as an investment0"um0prote"tion tool.
;ife *nsuran"e se"tor is one of te 'ey areas &ere enormous business potential e/ists. *n
*ndia "urrently te life insuran"e premium as a per"entage of 4?P is 1.- per "ent against
8.# per "ent in te US2 but in te liberaliEed s"enario2 te life insuran"e
premiums &ere pro%e"ted to gro& at around 1:J to #<J from !s #18 billion in 1@@:0 @@
to !s 8@# billion in #<<70<8 and to !s 178< billion by #<<@01<. Corporate non0life
premium &as pro%e"ted to gro& from !s :7 billion in 1@@:0@@ to !s -:> billion in #<<@0
1< and personal line non0life from !s 7 billion to !s 81 billion.

+6?6 Bie" Re5ieB #" S9enai# 7 In&uan9e
In&uan9e in India &tated Bit$#ut an' Re(u!ati#n in Nineteent$ 9entu'6
It Ba& &t#' #" a t'pi9a! 9#!#nia! ea6 A "eB Biti&$ 9#mpanie& d#minated
T$e maCet m#&t!' in !a(e uban 9ente&6
*nsuran"e &as nationaliEed mainly on - "ounts 1irst2 *ndian lives &ere not insured.
Se"ond2 even if tey &ere insured2 tey &ere treated as substandard lives and e/tra
premium &as "arged. $ird2 tere &ere gross irregularities in te fun"tioning of ;ife
insuran"e &as nationaliEed in te year 1@8>2 and ten general insuran"e &as nationaliEed
in te year 1@9#. *n 1@@@2 te private insuran"e "ompanies &ere allo&ed ba"' again into
insuran"e se"tor &it ma/imum "ap of #> per"ent foreign olding.
1:1: $e Britis introdu"e to *ndia2 &it te establisment of te =riental ;ife
*nsuran"e Company in Cal"utta.
1:8< Non life insuran"e debuts2 &it $riton *nsuran"e Company.
1:9< Bombay Mutual life Assuran"e So"iety is te first *ndian0o&ned life insurer
1@<9 *ndian mer"antile *nsuran"e is te first *ndian non0life insurer.
1@1# $e *ndian life assuran"e "ompaniesF a"t ena"ted to regulate te life
insuran"e business.
17
1@-: $e insuran"e a"t2 &i" forms te basis for most "urrent insuran"e la&s2
repla"es earlier a"t.
1@8> ;ife insuran"e nationaliEed2 government ta'es over #78 *ndian and foreign
insurers and provident so"ieties.
1@8> 4overnment sets up ;*C
1@9# Non life insuran"e nationaliEed2 4*C set up.
1@@- Malotra "ommittee2 eaded by former !B* governor !.N.Malotra2 set up
to dra& up a blue print for insuran"e se"tor reforms.
1@@7 Malotra Committee re"ommends re0entry of private players2 autonomy at
PSU insurers.
1@@9 *nsuran"e regulator *!?A C*nsuran"e !egulatory and ?evelopment
AutorityB set up.
#<<< *!?A starts giving li"ensed to private insurers
#<<1 *C*C* Prudential ;ife *nsuran"e "ame into te mar'et
+6D LIST OF LIFE INSURANCE COMPANY TILL DATE
18
S6 N#6 Re(i&tati#n
Numbe
Date #"
Re(6
Name #" t$e C#mpan'
1. 1<1 #-.1<.#<<< G?1C standard ;ife *nsuran"e
Company ;td
#. 1<7 18.11.#<<< Ma/ Ne& 5or' ;ife *nsuran"e Co.
;td.
-. 1<8 #7.11.#<<< *C*C* Prudential ;ife *nsuran"e
Company ;td.
7. 1<9 1<.<1.#<<1 =m Kota' Maindra ;ife
*nsuran"e Co. ;td.
8. 1<@ -1.<1.#<<< Birla Sum ;ife *nsuran"e
Company ;td.
>. 11< 1#.<#.#<<1 $ata A*4 ;ife *nsuran"e
Company: td.
9. 111 -<.<-.#<<1 SB* ;ife *nsuran"e Company
;imited
:. 117 <#.<:.#<<1 *ng Lysya ;ife *nsuran"e
Company Private ;imited
@. 11> <-.<:.#<<1 AllianE Ba%a% ;ife *nsuran"e
Company ;td.
1<. 119 <>.<:.#<<1 Met;ife *ndia *nsuran"e Company
Pvt. ;td.
11. 1#1 <-.<1.#<<# AMP SANMA! Assuran"e
Company ;td.
1#. 1## 17.<8.#<<# Aviva ;ife *nsuran"e Co. *ndia
Pvt. ;td.
+6@ LIFE ASSURANCE OFFERS
$e term ordinary life assuran"e in used to des"ribe a parti"ular style of doing business
and is &at many people &ill re"ogniEe as being life assuran"e. $e oter style is
industrial Come servi"eB life assuran"e2 &i" relates to smaller values and normally
involves "olle"tion of te premiums from te ome of te assured person.
1>

TERM ASSURANCE
$is is simplest and oldest form of assuran"e and provides for payment of te sum assured
on deat2 provided deat o""urs &itin a spe"ified term. Sould te life assured survive to
te end of te term ten te "over "eases and no money is payable.
./OLE:LIFE ASSURANCE
$e sum assured is payable on te deat of te assured &enever it o""urs. Premiums
are payable eiter trougout te life of te assured or2 more normally2 until retirement of
te assured at age >< or >8. Even if premiums "ease at2 say age >< te poli"y is still in
for"e2 and sould te person die at age 98 te poli"y &ould provide te benefits for is
benefi"iaries.
ENDO.MENT ASSURANCE
$e sum assured is payable in te event of deat &itin a spe"ified period of bet&een 1<
and -< years. Go&ever2 if te life assured survives until e end of tis period Cuntil te
Mmaturity dateFB2 te sum assured &ill also be paid.
,ROUP LIFE ASSURANCES
Employers sometimes arrange spe"ial terms for life assuran"e for teir
employees2 &it te sum assured being payable in te event of deat of an employee
during is term of servi"e &it te employer. Membersip of te s"eme is open to al
employees &or'ing on te in"eption date2 or te anniversary date in future years.
2EY PERSON INSURANCE
Key person insuran"e is a relatively re"ent form of "over ta'en out by a "ompany on te
life of an employee &o is vital to te "ontinued profitability of te business. An e/ample
&ould be a mar'eting e/e"utive &o as valuable "onta"ts in overseas "ountries or e
MideasF person in a manufa"turing "ompany.
19
*t is diffi"ult to an a""ess te sum assured needed in su" "ir"umstan"es2 and "areful
finan"ial under&riting is re+uired. Go&ever2 te "ompany &ill be able to affe"t "over for:
N loss of profitsH and
N $e "osts of finding2 se"uring and training a su""essor.
$e most suitable type of "ontra"t is a term assuran"e2 altoug &ole0 life poli"ies
are sometimes used.
*n addition to life assuran"e2 'ey person permanent ealt insuran"e and "riti"al illness
"over is also available.
INSURED PENSION SC/EMES
$ere are over 11 million people in pension a life assuran"e s"emes2 or benefiting from
tem2 in te United Kingdom.
$ese s"emes provide a variety of benefits for members2 but teir main aim is to ensure
tat some form of pension is available on retirement. ;ife assuran"e "ompanies perform a
vital role in running su" pensionFs s"emes. $ose "onstru"ting a s"eme may approa"
a "ompany to:
N organiEe te &ole s"eme2 in"luding installation and do"umentation2
re"eipt of premium "ontributions2 investment of te funds and
administration of te pensionsH
N manage te fund of a pension s"emeH or
N Provide life assuran"e benefits for members and teir &ido& CerB s &o
dies before retirement.

ANNUITIES
An annuity is a metod by &i" a person "an re"eive a yearly sum in return for te
payment to an insuran"e "ompany of a sum of money. $is is not life assuran"e as &e
ave des"ribed it2 but it is dealt &it by life assuran"e "ompanies and is based on a"tuarial
prin"iple.
1:
INVESTMENTS
.e ave already identified te life assuran"e industry as being of "onsiderable siEe by
"onsidering te number of poli"ies in for"e and value of premiums paid ea" year. $ese
vast amounts of money are eld by "ompanies to meet future liabilities and are termed life
assuran"e funds.
$ese funds do not lay dormant &aiting for "laims to "ome inH tey are invested to
provide in"ome for te "ompanies and so assist poli"yolders and sareolders. Not only
do tese t&o groups benefits2 but te "ountry as a &ole benefits.
Su""essful finan"ial planning is li'e a tree0legged stool. =ne leg is investment planning2
one is estate planning O and te tird is insuran"e planning. $a'e one leg a&ay2 and your
ability to a"ieve your finan"ial goals is li'ely to be severely treatened.
So2 &y is aving te rigt level of insuran"e so importantP
M*nsuran"eF is basi"ally a saring advi"e. $e losses to assets resulting from natural
"alamities li'e fire2 eart+ua'e2 a""idents2 et". are met out of te "ommon pool
"ontributed by large number of persons &o are e/posed to similar ris's. $is
"ontribution of many is used to pay te losses suffered by unfortunate fe&. Go&ever te
basi" prin"iple is tat loss sould o""ur as a result of natural "alamities or une/pe"ted
events2 &i" are beyond te uman "ontrol. Se"ondly insured person sould not ma'e
any gain out of insuran"e. *t is natural to tin' of insuran"e of pysi"al assets su" as
motor "ar insuran"e or fire insuran"e but often &e forget tat "reator of all tese assets is
te uman being &ose efforts ave gone a long &ay in building up te assets. *n tat
sense2 uman life is uni+ue in"ome0generating assets. Unli'e te pysi"al assets2 &i"
de"rease in value &it passage of time2 te individual be"omes more e/perien"ed and
more matured as e advan"es in age. $is raises is earning "apa"ity and purpose of life
insuran"e is to prote"t te in"ome in te event of is premature deat. $e individual
imself also needs finan"ial se"urity for te old age or on is be"oming permanently
1@
disabled &en is in"ome &ill stop. *nsuran"e also as an element of saying in "ertain
"ases.
;ife insuran"e is "iefly a ris' management tool2 meant to offer finan"ial prote"tion to
your dependents in te unfortunate event of your deat. *f you are ade+uately insured2
your life insuran"e sould enable to your dependents Qspouse2 "ildren2 and parentsR to
maintain teir "urrent life style and pursue teir goals000till su" time as tey are in a
position to set up an attra"tive in"ome stream by temselves. $atFs te basi" purpose of
life insuran"e. But in *ndia2 as te most oter developing mar'ets2 life insuran"e as "ome
to represent more tan %ust ris' "over. $e best selling insuran"e produ"ts in te mar'et
double as investment options and offer attra"tive ta/ brea's.
T$e ,enea! In&uan9e C#p#ati#n #" India
Altoug efforts &ere made to maintain an open mar'et for te general insuran"e industry
amending te *nsuran"e A"t of 1@-: from time to time2 malpra"ti"e es"alated beyond
"ontrol. $us2 te general insuran"e industry &as nationaliEed in 1@9#. $e 4eneral
*nsuran"e Corporation C4*CB &as set up as a olding "ompany. *t ad four subsidiaries:
Ne& *ndia2 =riental2 United *ndia and te National *nsuran"e "ompanies C"olle"tively
'no&n as te N=UNB. *t &as understood tat tese "ompanies &ould "ompete &it one
anoter in te mar'et. *t did not appen. $ey &ere supposed to setup teir o&n
investment portfolios. $at did not appen eiter. *t began to appen after#@ years.
$e 4*C as a +uarter of a million agents. *t as more tan #28<< bran"es2 -<million
individual and group insuran"e poli"ies and assets of about US? 12:<< million at mar'et
value Cat te end of 1@@@B. *t as been suggested tat te 4*C sould "lose #<0#8J of its
nonviable bran"es CPatel2 #<<1B. $e 4*C as so far been te olding "ompany and re0
insurer for te state0run insurers. *t reinsured about #<J of teir business.
TB# C#mmittee Rep#t&: One 2n#Bn0 One UnCn#Bn
#<
Altoug *ndian mar'ets &ere privatiEed and opened up to foreign "ompanies in a number
of se"tors in 1@@12 insuran"e remained out of bounds on bot "ounts. $e government
&anted to pro"eed &it "aution. .it pressure from te opposition2 te government Cat te
time2 dominated by te Congress PartyB de"ided to set up a "ommittee eaded by Mr. !.
N. Malotra Cte ten 4overnor of te !eserve Ban' of *ndiaB.
Ma!$#ta C#mmittee
;iberaliEation of te *ndian insuran"e mar'et &as re"ommended in a report released in
1@@7 by te Malotra Committee2 indi"ating tat te mar'et sould be opened for private0
se"tor "ompetition2 and ultimately2 foreign private0se"tor "ompetition. *t also investigated
te level of satisfa"tion of te "ustomers of te ;*C. Curiously2 te level of "ustomer
satisfa"tion seemed to be ig. $e union of te ;*C made politi"al "apital out of tis
finding.
$e follo&ing are te purposes of te "ommittee. CaB $o suggest te stru"ture of te
insuran"e industry2 to assess te strengts and &ea'nesses of insuran"e "ompanies in
terms of te ob%e"tives of "reating an effi"ient and viable insuran"e industry2 to ave &ide
"overage of insuran"e servi"es2 to ave a variety of insuran"e produ"ts &it a ig +uality
servi"e2 and to develop an effe"tive instrument for mobiliEation of finan"ial resour"es for
development. CbB $o ma'e re"ommendations for "anging te stru"ture of
te insuran"e industry2 for "anging te general poli"y frame&or' et". C"B $o ta'e spe"ifi"
suggestions regarding ;*C and 4*C &it a vie& to improve te fun"tioning of;*C and
4*C. CdB $o ma'e re"ommendations on regulation and supervision of te insuran"e se"tor
in *ndia. CeB $o ma'e re"ommendations on te role and fun"tioning of surveyors2
intermediaries li'e agents et". in te insuran"e se"tor. CfB $o ma'e re"ommendations on
any oter matter &i" are relevant for development of te insuran"e industry in *ndiaP
$e "ommittee made a number of important and far0rea"ing re"ommendations.
CaB $e ;*C sould be sele"tive in te re"ruitment of ;*C agents. $rain tese people after
te identifi"ation of training needs. CbB $e "ommittee suggested tat te 1ederation of
*nsuran"e *nstitute2 Mumbai sould start ne& "ourses and diploma "ourses for
#1
intermediaries of te insuran"e se"tor. C"B $e ;*C sould use an MBA spe"ialiEed in
Mar'eting Ca similar suggestion for te 4*C subsidiariesB.C"B *t suggested tat settlement
of "laims &ere to be done &itin a spe"ifi" time frame &itout delay. CdB $e "ommittee
as several re"ommendations on produ"t pri"ing2 vigilan"e2 systems and pro"edures2
improving "ustomer servi"e and use of te"nology.CfB *t also made a number of
re"ommendations to alter te e/isting stru"ture of te ;*C and te 4*C. CgB $e "ommittee
insisted tat te insuran"e "ompanies sould pay spe"ial attention to te rural insuran"e
business. CB *n te "ase of liberaliEation of te insuran"e se"tor te "ommittee made
several re"ommendations2 in"luding entry to ne& players and te minimum "apital level
re+uirements for su" ne& players sould be !s. 1<< "roresCabout US? #7 millionB.
Go&ever2 a lo&er "apital re+uirement "ould be "onsidered for a "o0operative se"torsI entry
in te insuran"e business. CiB $e "ommittee suggested some norms relating to promotersF
e+uity and e+uity "apital by foreign "ompanies2 et".
MuC$eEee C#mmittee
*mmediately after te publi"ation of te Malotra Committee !eport2 a ne& "ommittee
C"alled te Mu'er%ee CommitteeB &as set up to ma'e "on"rete plans for te re+uirements
of te ne&ly formed insuran"e "ompanies. !e"ommendations of te Mu'er%ee
Committee &ere never made publi". But2 from te information tat filtered out it be"ame
"lear tat te "ommittee re"ommended te in"lusion of "ertain ratios in insuran"e
"ompany balan"e seets to ensure transparen"y in a""ounting. But te 1inan"e Minister
ob%e"ted. Ge argued Cprobably on te advi"e of some of te potential entrantsB tat it "ould
affe"t te prospe"ts of a developing insuran"e "ompany.
In&uan9e Re(u!at#' A9t ;+AAA8
After te report of te Malotra Committee "ame out2 "anges in te insuran"e industry
appeared imminent. Unfortunately2 instability in Central 4overnment2 "anges in
insuran"e regulation "ould not pass troug te parliament.
##
$e dramati" "lima/ "ame in 1@@@. =n Mar" 1>2 1@@@2 te *ndian Cabinet approved an
*nsuran"e !egulatory Autority C*!AB Bill tat &as designed to liberaliEe te insuran"e
se"tor. $e bill &as a&aiting ratifi"ation by te *ndian Parliament.
Go&ever2 te BSP 4overnment fell in April 1@@@. $e deregulation &as put on old on"e
again.
An ele"tion &as eld in late 1@@@. A ne& BSP0led government "ame to po&er. =n
?e"ember 92 1@@@2 te ne& government passed te *nsuran"e !egulatory and
?evelopment Autority C*!?AB A"t. $is A"t repealed te monopoly "onferred to te
;ife *nsuran"e Corporation in 1@8> and to te 4eneral *nsuran"e Corporation in 1@9#.$e
autority "reated by te A"t is no& "alled *!?A. *t as ten members. Ne& li"enses are
being given to private "ompanies Csee belo&B. *!?A as separated out life2 non0life and
reinsuran"e insuran"e businesses. $erefore2 a "ompany as to ave separate li"enses for
ea" line of business. Ea" li"ense as its o&n "apital re+uirements Caround US?#7
million for life or non0life and US?7: million for reinsuran"eB.
S#me Detai!& #" t$e IRDA Bi!!
=n Suly 172 #<<<2 te Cairman of te *!?A2 Mr. N. !anga"ari set fort a set of
regulations in an e/traordinary issue of te *ndian 4aEette tat detail of te regulation.
Re(u!ati#n&
$e first "overs te *nsuran"e Advisory Committee tat sets out te rules and regulation.
$e se"ond stipulates tat te TAppointed A"tuaryT as to be a 1ello& of te A"tuarial
So"iety of *ndia. 4iven tat tere as been a deart of a"tuaries in *ndia &it te
+ualifi"ation of a 1ello& of te A"tuarial So"iety of *ndia2 tis be"omes a re+uirement of
tall order. As a result2 some "ompanies ave not been able to attra"t a +ualified Appointed
A"tuary C?asgupta2 #<<1B. $e *!?A is also in te pro"ess of repla"ing te A"tuarial
#-
So"iety of *ndia by a ne&ly formed institution to be "alled te Cartered *nstitute of
*ndian A"tuaries Cmodeled after te *nstitute of A"tuaries of ;ondonB.Curiously2 for life
insurers
te Appointed A"tuary as to be an internal "ompany employee2 but e or se may be an
e/ternal "onsultant if te "ompany appens to be anon0life insuran"e "ompany.
$ird2 te Appointed A"tuary &ould be responsible for reporting to te *!?A a detailed
a""ount of te "ompany.
1ourt2 insuran"e agents sould ave at least a ig s"ool diploma along &it training of
1<< ours from a re"ogniEed institution. More tan a doEen institutions ave been
re"ogniEed by te *!?A for training insuran"e agents
1ift2 te *!?A as set up stri"t guidelines on asset and liability management of te
insuran"e "ompanies along &it solven"y margin re+uirements. *nitial margins are set
ig C"ompared &it developed "ountriesB. $e margins vary &it te lines of business
Cfor e/ample2 fire insuran"e as a lo&er margin tan aviation insuran"eB.
Si/t te dis"losure re+uirements ave been 'ept rater vague. $is as been done despite
te re"ommendations to te "ontrary by te Mu'er%ee Committee re"ommendations.
Sevent2 all te insurers are for"ed to provide some "overage for te rural se"tor.
;+8 In e&pe9t #" a !i"e in&ue2 CaB five per"ent in te first finan"ial yearH CbB seven
per"ent in te se"ond finan"ial yearH C"B ten per"ent in te tird finan"ial yearH CdB t&elve
per"ent in te fourt finan"ial yearH CeB fifteen per"ent in te fift year Cof total poli"ies
&ritten dire"t in tat yearB.
;)8 In e&pe9t #" a (enea! in&ue0 CaB t&o per"ent in te first finan"ial yearH CbB tree
per"ent in te se"ond finan"ial yearH C"B five per"ent tereafter Cof total gross premium
in"ome &ritten dire"t in tat yearB.
#7
$ree days before te deadline tat te *!?A ad set upon itself C="tober #82 #<<<B2 it
issued tree "ompanies &it li"ense papers:
#8
COMPANY OVERVIE.
Met;ife *ndia *nsuran"e Company ;imited CMet;ifeB is an affiliate of Met;ife2 *n". and
&as in"orporated as a %oint venture bet&een Met;ife *nternational Goldings2 *n".2 $e
Sammu and Kasmvvvvir Ban'2 M. Pallon%i and Co. Private ;imited and oter private
investors. Met;ife is one of te fastest gro&ing life insuran"e "ompanies in te "ountry. *t
serves its "ustomers by offering a range of innovative produ"ts to individuals and group
"ustomers at more tan ><< lo"ations troug its ban' partners and "ompany0o&ned
offi"es. Met;ife as more tan 8<2<<< 1inan"ial Advisors2 &o elp "ustomers a"ieve
pea"e of mind a"ross te lengt and breadt of te "ountry.
Met;ife2 *n".2 troug its affiliates2 rea"es more tan 9< million "ustomers in te
Ameri"as2 Asia Pa"ifi" and Europe. Affiliated "ompanies2 outside of *ndia2 in"lude te
number one life insurer in te United States Cbased on life insuran"e infor"eB2 &it over
17< years of e/perien"e and relationsips &it more tan @< of te top one undred
1=!$UNE 8<<U "ompanies. $e Met;ife "ompanies offer life insuran"e2 annuities2
automobile and ome insuran"e2 retail ban'ing and oter finan"ial servi"es to individuals2
as &ell as group insuran"e2 reinsuran"e and retirement and savings produ"ts and servi"es
to "orporations and oter institutions.
Celebrating 17< years2 Met;ife2 *n". is a leading provider of insuran"e and finan"ial
servi"es &it operations trougout te United States and te ;atin Ameri"a2 Europe2 and
Asia Pa"ifi" regions. $roug its domesti" and international subsidiaries and affiliates2
Met;ife2 *n". rea"es more tan 9< million "ustomers around te &orld and Met;ife is te
largest life insurer in te United States Cbased on life insuran"e in0for"eB.
$e Met;ife "ompanies offer life insuran"e2 annuities2 auto and ome insuran"e2 retail
ban'ing and oter finan"ial servi"es to individuals2 as &ell as group insuran"e and
retirement 3 savings produ"ts and servi"es to "orporations and oter institutions.
#>
C#p#ate S#9ia! Re&p#n&ibi!it':
Met;ife as al&ays been "ommitted to ma'ing a positive differen"e in te lives of te
individuals and "ommunities. $oday2 tat "ommitment drives volunteer &or' and
pilantropy a"ross te globe. .or'ing &it non0profit organiEations2 Met;ife supports
programs tat provide young people &it te s'ills tey need to su""eed in life and "reate
opportunities for people of all ages.
Met;ifeFs "ore values are personal responsibility2 people "ount2 partnersip2 integrity and
onesty2 innovation and finan"ial strengt. $ese values also sape te responsibility to
te "ommunities &ere te organiEation "ondu"ts its business
METLIFE /ISTORY
1or 17< years2 Met;ife as been insuring te lives of te people &o depend on us. =ur
su""ess is based on our long istory of so"ial responsibility2 strong leadersip2 sound
investments2 and innovative produ"ts and servi"es
PRODUCT OF T/E COMPANY:
C$i!d P!an
o Met Bavisya
o Met Sunior Endo&ment
o Met Sunior Money Ba"'
Retiement P!ain
o Met Pension0Par
Sa5in( P!an
o Met Su'
o Met Suvida
#9
o Met Saral
o Met 1<<
P#te9ti#n P!an
o Met Sura'sa
o Met Sura'sa $!=P
o Met Sura'sa Plus
o Met Mortgage Prote"tor Plus
Rua! P!an
o Met Lis&as
o Met Suvida0!ural
o Met 4rameen Asray
In5e&tment P!an
o Met Smart Platinum
o Met Smart =ne
o Met Easy Super
/ea!t$ P!an
o Met Gealt Care
M#nt$!' In9#me P!an
o Met Montly *n"ome Plan
o Met Montly *n"ome Plan 9 Pay
./Y C/OOSE METLIFE<
#:
.e ta'e great pride in te finan"ial solutions tat &e offer. But tatFs not all. 5our
re+uirements and "omfort are al&ays our priority. $at is &y our intera"tions are
distinguised by our e/pertise2 "ompassion and sensitivity.
$e Met;ife "ompanies are one of te &orldFs largest and most respe"ted finan"ial
servi"es organiEations. 1or over 17< years2 &eIve been elping people build finan"ial
freedom. 1or some2 tis means prote"tion for teir families. 1or oters2 it means &ealt
optimiEation or preservation. Combined &it our innovation2 tis ma'es te Met;ife
"ompanies truly formidable players in te ;ife *nsuran"e industry.

#@
C/APTER : )
LITERATURE REVIE.
*nsuran"e se"tor is a ma%or "ontributor to te finan"ial savings of te ouseold se"tor in
te "ountry2 &i" are furter "anneliEed into various investment avenues. As per te
Annual !eport #<<-0<7 of *!?A2 "ontribution of insuran"e funds to te finan"ial savings
&as 17.@ per "ent in #<<-0<72 viE #.# per "ent of te 4?P at "urrent mar'et pri"e. $e
premium under&ritten as gro&n from !s 782>99.89 "rore in #<<<0<1 to !s.:-2 >78.11
"rore in #<<-0<7. After liberaliEation of insuran"e se"tor2 te private insurers ave
introdu"ed innovative produ"t and tailor made produ"ts &i" are absolutely sit to rural
population. Efforts at in"reasing "onsumer a&areness and putting te regulatory
frame&or' for prote"tion of poli"yolderFs interest ave been made bot te industry and
regulatory level. 4lobal mar'et "onditions ave also resulted in driving do&n premium
rates)"arges in respe"t of "ertain produ"ts and in improving te +uality of servi"es
offered by te insurer. 1inally2 insuran"e se"tor as been penetrating in *ndia2 tus te
proposed seminar as +uite relevant to te so"iety.
*ndian insuran"e is on te tresold of deep and fundamental "anges. 1loodgates of
"ompetition opened up by te privatiEation of insuran"e industry did tro& a "allenge to
te &ell0prote"ted nationaliEed se"tor and it seems tey ave pi"'ed up te gauntlet. 4*C2
bot is trying to reposition tem by aving re0engineering done on te stru"ture and
operations of teir respe"tive organiEations.
*t must be empasiEed tat te opening of te insuran"e mar'et is far from a bad ting for
nationaliEed insurers. .it a strong presen"e2 a &ide net&or' and "onsiderable brand
e+uity2 tey are in a good position to tap te very same segments profitably2 &ile
improving teir produ"t and servi"e offerings. $e *ndian "ompany sould ;everage
information te"nology to servi"e large numbers of "ustomers effi"iently and bring do&n
overeads. $e"nology "an "omplement or supplement distribution "annels "ost0
effe"tively. *t "an also elp improve "ustomer servi"e levels "onsiderably.
-<
Besides tis2 oter areas "an be fo"used to gro& and survive in te *ndian Mar'et
Unde&tandin( Cu&t#me need&: Use data &areousing2 management and mining to
gauge te profitability and potential of various "ustomer and produ"t segments and ensure
effe"tive "ross selling. Understanding te "ustomer better &ill allo& insuran"e "ompanies
to design appropriate and0"ustomiEed produ"ts2 determine pri"ing "orre"tly and in"rease
profitability.
/i($:!e5e! Tainin( and De5e!#pment: Ensure ig levels of training and development
not %ust for staff but also for agents and distribution organiEations. E/isting organiEations
&ill ave to train staff for better servi"e and fle/ibility2 &ile all "ompanies &ill ave to
train employees to "ope &it ne& produ"ts and an intensive use of information
te"nology.
A!!ian9e1Tieup: $e importan"e of allian"es and tie0ups means tat "ompanies &ill ave
to integrate related but separate providers into teir systems to ensure seamless delivery.
A(ent Re!ati#n&$ip: Build strong relationsips &it intermediaries su" as agents.
MaCet Se(mentati#n: $ey must segment te mar'et "arefully to arrive at te
appropriate produ"ts and pri"ing and sould "ater te needs of every individual.
Re5amped MaCetin( State(': .orld&ide2 insuran"e produ"ts move along a
"ontinuum from pure servi"e produ"ts to pure "ommodity produ"ts ten tey "ould be
sold troug te medi"al sops2 gro"eries2 novelty stores et". =n"e "ommodiEation2
popularity and a&areness of te produ"ts are attained ten te produ"ts "an move to
remote "annels su" as te telepone or dire"t mail. *n te UK for e/ample2 retailer
Mar's 3 Spen"er no& sells insuran"e produ"ts. At tis point2 buyers loo' for lo& pri"e.
Brand loyalty "ould sift from te insurer to te seller.
Tu&t and Fait$: Being government o&ned subsidiary2 people of *ndia ave real fait and
are "onfident in parting teir valuable savings &it NationaliEed *nsuran"e Companies.
So2 tere is a big opportunity for te government "ompanies to regain teir good&ill and
reprodu"e teir poli"ies in te interest of te general publi".
-1
A99#din( t# D6Jame in )**?:
A ma%or issue is tat of produ"t innovation for rural "onte/ts. Non0life general insuran"e
as produ"ts to suit "rop2 agri"ultural e+uipment2 &eater ris's and so fort. Go&ever2
many of tese produ"ts are on an e/perimental basis and not pure "ommer"ial produ"ts.
!ural *ndia is a target mar'et for many players in te finan"ial se"tor2 and insuran"e
"ompanies are no e/"eption. Publi" se"tor insuran"e "ompanies boast tat tey ave
already "aptured tis areaH te e/tent of penetration of te insuran"e ma%ors into rural
*ndia is not yet "lear. Most of te poli"ies are said to elp te rural "ustomers but tere is
still no improvement in te rural situation. So2 in tis area tere is a need of ma'ing te
poli"ies &i" are realisti" in te rural "onditions and are made to meet te needs of te
"ustomers in rural area.
A99#din( t# M6Jean in )**@:
*ndian general insuran"e "ompanies in government se"tor are providing better poli"ies to
te "ustomers. Many of te poli"ies are very popular among te "ustomers. Poli"ies li'e
!a% !a%es&ari Maila Kalyan 5o%ana Poli"y2 Bagyasree Cild &elfare Poli"y2
National s&astya bima poli"y are a big fund of money generation for insuran"e
"ompanies. $ese poli"ies are fully supported by te government. *n different states of te
"ountry various type of poli"ies are popular and tey ave a different per"ent of sare in
overall in"ome of *ndian general insuran"e se"tor. All of tese poli"ies are su""essfully
implemented in all te states of te "ountry. $ese poli"ies are spe"ially designed to
provide ris' assuran"e to te poli"y olders. *n union territories also tese poli"ies are
su""essfully implemented and &or'ing &it a good profit.
$ese poli"ies provide a elping and to te person &o fa"es problem due to some
unforeseen event or a""ident. 4oing troug te mar'eting aspe"t te insuran"e "ompany
as to prepare te produ"t in determining its su""ess in te mar'et.
A99#din( t# S#ue!i in )**D:
-#
Auestions &eter D+uality( is aving as mu" impa"t in te finan"ial servi"es se"tor as
te eviden"e of use of +uality management te"ni+ues in te UK suggests. E/plores te
"onte/t &itin &i" D+uality( is finding a pla"e in finan"ial servi"es2 and presents te
findings of a postal +uestionnaire survey "on"erned &it te e/tent of usage and te
nature of te +uality initiatives in te finan"ial servi"es se"tor.
A99#din( t# E!ena 2a!#t'9$#ua and S#tii& IN )**F:
$e present study delves into te ban'Oinsuran"e penomenon in 4ree"e. $e paper
e/plores te mar'et0based pra"ti"es surfa"ing troug te ban'Oinsuran"e interfa"e and
delineates te possible teoreti"al "orporate stru"tures. A revie& of te various finan"ial
ventures in te domesti" mar'et is provided aiming to unveil "orporate patterns bot in a
"ross0venture and time series frame&or'. As a result of tis survey2 te e/isten"e of de
%ure limits versus de fa"to boundaries2 as e/panded by loopoles and avoidan"e a"tivities2
is establised. $e TtraditionalT subsidiary model is "omplemented by a number of multi0
ventures as ban's ma'e inroads into te insuran"e business. $e latter is asso"iated &it
te presen"e of multinational firms and foreign dire"t investment in te region. $e
analysis is furter e/tended by e/amining te drivers2 motives and operational issues
pertinent to tese finan"ial "onglomerates.
A99#din( t# Pit$5iaE Da&(upta and 2a&tui Sen(upta IN )**):
.it te advent of te *nternet2 online pro"esses are repla"ing "onventional models in our
so"iety. $e greatest impa"t in online te"nology as been a"ieved by e0"ommer"e. E0
"ommer"e is attra"tive bot to buyers and sellers as it redu"es sear" "osts for buyers and
inventory "osts for sellers. *n tis paper &e investigate te impa"t of e0"ommer"e on te
insuran"e industry in *ndia. $e re"ent gro&t of *nternet infrastru"ture and introdu"tion
of e"onomi" reforms in te insuran"e se"tor ave opened up te monopolisti" *ndian
insuran"e mar'et to "ompetition from foreign allian"es. .e study te evolving s"enario in
te insuran"e industry in *ndia and identify te features of online insuran"e tat improve
--
te "onventional insuran"e model and tus2 ma'es it more attra"tive for te *ndian
insuran"e industry to go online.
/ea!t$ P#!i9' C$a!!en(e& "# India: Pi5ate /ea!t$ In&uan9e and Le&&#n&
"#m t$e Intenati#na! E=peien9eb' AEa' Ma$a!
=ver te last fe& de"ades2 te *ndian population as e/perien"ed great advan"es in its
ealt situation. 1or instan"e2 life e/pe"tan"y at birt in"reased from 8< years in 1@9< to
an estimated ># years in 1@@8 and is possibly even greater no&. *nfant mortality rates
ave fallen as &ell2 from 1-9 per 12<<< live birts in 1@9< to >@ per 12<<< live birts in
1@@1 C.orld Ban' 1@@8B. $ese are substantial improvements2 but mu" remains to be
done2 relative to some its neigbors as &ell in terms of redu"ing differen"es in
performan"e a"ross states and so"ioe"onomi" groups. 1or instan"e2 Cina as done mu"
better2 &it its life e/pe"tan"y at birt overing around 9< years2 and *ndiaFs neigbour2
Sri ;an'a2 as a life e/pe"tan"y of nearly 9- years C.orld Ban' 1@@9B. Bot "ountries
ave mu" lo&er infant mortality rates as &ell2 and in te "ase of Sri ;an'a2 less tan one0
+uarter tat of *ndia. Again2 Kerala as infant mortality rates belo& tose in Cina2 but
states su" as Madya Prades2 =rissa and !a%astan ave infant mortality rates of &ell
over 1<< per 12<<< live birts in rural areas C?reEe and Sen 1@@8H Maal2 Srivastava
and Sanan #<<<B. Similarly2 in rural *ndia2 te infant mortality rates among te top t&o
in"ome +uintiles are nearly -7 0 8< per "ent lo&er tan te rates reported for te bottom
t&o +uintiles.1 Substantial differen"es in life e/pe"tan"ies at birt are present a"ross
states and so"io0e"onomi" groupings C?reEe and Sen 1@@8B. Anoter issue of "on"ern is
te gro&ing prevalen"e of "roni" illness in te *ndian population2 su" as obesity2 eart
disease2 diabetes2 ypertension and te li'e. $is as partly to do &it "anging dietary
abits2 from "oarse grain to energy ri" diets of meat2 mil' produ"ts2 and sugar. *t as also
to do &it an urban population gro&ing at an average annual rate of gro&t of -.# per "ent
and sedentary lifestyles often "ara"teristi". AutorFs estimate based on NCAE! survey
data.
-7
;Nati#na! In&titute #" Uban A""ai& ;NIUA8 )***0 P#pCin0 /#t#n0 2im0
Ma$a! and S$ui(a# )**+86
$us2 te prevalen"e of diabetes rates &ere nearly tree times ige among urban
residents tan among rural residents in 1@@80@>2 te prevalen"e of eart disease 9< per
"ent iger2 and te prevalen"e of ypertension more tan double. .it te urban
population e/pe"ted to gro& furter in te future2 te emergen"e of "roni" illnesses &ill
ave signifi"ant "onse+uen"es on te finan"ial "osts of providing ealt "are2 as many
illnesses are e/tremely e/pensive to treat CMaal #<<<aB.
Bu!! .#!d /ea!t$ O(an 5#!6>* n#6> ,eneba Au(6 )**):
$e findings ave impli"ations for "ommunity0based ealt insuran"e s"emes in *ndia
and else&ere. Su" s"emes "an prote"t poor ouseolds against te un"ertain ris' of
medi"al e/penses. $ey "an be implemented in areas &ere institutional "apa"ity is too
&ea' to organiEe nation&ide ris'0pooling. Su" s"emes "an "over poor people2 in"luding
people and ouseolds belo& te poverty line. A trade off e/ists bet&een maintaining te
s"emeIs finan"ial viability and prote"ting members against "atastropi" e/penditures. $o
fa"ilitate reimbursement2 administration2 parti"ularly pro"essing of "laims2 sould appen
near "laimants. 1ine0tuning te design of a s"eme is an ongoing pro"ess V a system of
monitoring and evaluation is vital.
Econo!c R"#o$% !n In&!' %!nc" ())(* H'% G$'&+',!% Wo$-"&. /0 Mon1"- S2
A3,+4',!'
5
*ndia &as a late"omer to e"onomi" reforms2 embar'ing on te pro"ess in earnest only in
1@@12 in te &a'e of an e/"eptionally severe balan"e of payments "risis. $e need for a
poli"y sift ad be"ome evident mu" earlier2 as many "ountries in east Asia a"ieved
ig gro&t and poverty redu"tion troug poli"ies &i" empasiEed greater e/port
orientation and en"ouragement of te private se"tor. *ndia too' some steps in tis
dire"tion in te 1@:<s2 but it &as not until 1@@1 tat te government signaled a systemi"
sift to a more open e"onomy &it greater relian"e upon mar'et for"es2 a larger role for
-8
te private se"tor in"luding foreign investment2 and a restru"turing of te role of
government.

*ndiaFs e"onomi" performan"e in te post0reforms period as many positive features. $e
average gro&t rate in te ten year period from 1@@#0@- to #<<10<# &as around >.<
per"ent2 as so&n in $able 12 &i" puts *ndia among te fastest gro&ing developing
"ountries in te 1@@<s. $is gro&t re"ord is only sligtly better tan te annual average
of 8.9 per"ent in te 1@:<s2 but it "an be argued tat te 1@:<s gro&t &as unsustainable2
fuelled by a buildup of e/ternal debt &i" "ulminated in te "risis of 1@@1. *n sarp
"ontrast2 gro&t in te 1@@<s &as a""ompanied by remar'able e/ternal stability despite
te east Asian "risis. Poverty also de"lined signifi"antly in te post0reform period2 and at a
faster rate tan in te 1@:<s a""ording to some studies Cas !avallion and ?att dis"uss in
tis issueB.
Go&ever2 te ten0year average gro&t performan"e ides te fa"t tat &ile te e"onomy
gre& at an impressive >.9 per"ent in te first five years after te reforms2 it slo&ed do&n
to 8.7 per"ent in te ne/t five years. *ndia remained among te fastest gro&ing developing
"ountries in te se"ond sub0period be"ause oter developing "ountries also slo&ed do&n
after te east Asian "risis2 but te annual gro&t of 8.7 per"ent &as mu" belo& te target
of 9.8 per"ent &i" te government ad set for te period. *nevitably2 tis as led to
some +uestioning about te effe"tiveness of te reforms.
F!n'nc!', S"c1o$ R"#o$% !n In&!'* Po,!c!"% 'n& P"$#o$'nc" An',0%!% 60 RaCe&$
M#$an:
As te e"onomy gro&s and be"omes more sopisti"ated2 te ban'ing se"tor as to develop
pari pasu in a manner tat it supports and stimulates su" gro&t. .it in"reasing global
integration2 te *ndian ban'ing system and finan"ial system as as a &ole ad to be
strengtened so as to be able to "ompete. *ndia as ad more tan a de"ade of finan"ial
se"tor reforms during &i" tere as been substantial transformation and liberalisation of
te &ole finan"ial system. *t is2 terefore2 an appropriate time to ta'e sto"' and assess te
effi"a"y of our approa". *t is useful to evaluate o& te finan"ial system as performed
->
in an ob%e"tive +uantitative manner. $is is important be"ause *ndiaFs pat of reforms as
been different from most oter emerging mar'et e"onomies: it as been a measured2
gradual2 "autious2 and steady pro"ess2 devoid of many flourises tat "ould be observed in
oter "ountries. Until te beginning of te 1@@<s2 te state of te finan"ial se"tor in *ndia
"ould be des"ribed as a "lassi" e/ample of Dfinan"ial repression( a la Ma"Kinnon and
Sa&. $e se"tor &as "ara"terised2 inter alia2 by administered interest rates2 large pre0
emption of resour"es by te autorities and e/tensive mi"ro0regulations dire"ting te
ma%or portion of te flo& of funds to and from finan"ial intermediaries. .ile te true
ealt of finan"ial intermediaries2 most of tem publi" se"tor entities2 &as mas'ed by
relatively opa+ue a""ounting norms and limited dis"losure2 tere &ere general "on"erns
about teir viability. *nsuran"e "ompanies O bot life and non0life 0 &ere all publi"ly
o&ned and offered very little produ"t "oi"e. *n te se"urities mar'et2 ne& e+uity issues
&ere governed by a pletora of "omple/ regulations and e/tensive restri"tions. $ere &as
very little transparen"y and dept in te se"ondary mar'et trading of su" se"urities.
*nterest rates on government se"urities2 te predominant segment of fi/ed0in"ome
se"urities2 &ere de"ided troug administered fiat. $e mar'et for su" se"urities &as a
"aptive one &ere te players &ere mainly finan"ial intermediaries2 &o ad to invest in
government se"urities to fulfill ig statutory reserve re+uirements. $ere &as little dept
in te foreign e/"ange mar'et as most su" transa"tions &ere governed by infle/ible and
lo& limits and also prior approval re+uirements. CompartmentaliEation of a"tivities of
different types of finan"ial intermediaries eliminated te s"ope for "ompetition among
e/isting finan"ial intermediaries. *n addition2 strong entry barriers t&arted "ompetition
from ne& entrants.
$e end result &as lo& levels of "ompetition2 effi"ien"y and produ"tivity in te finan"ial
se"tor2 on te one and2 and severe "redit "onstraints for te produ"tive entities2 on te
oter2 espe"ially for tose in te private se"tor. $e oter ma%or dra&ba"' of tis regime
&as te s"ant attention tat &as pla"ed on te finan"ial ealt of te intermediaries. $eir
"apitaliEation levels &ere lo&. $e la"' of "ommer"ial "onsiderations in "redit planning
and &ea' re"overy "ulture resulted in large a""umulation of non0performing loans. $is
-9
ad no impa"t on te "onfiden"e of depositors2 o&ever2 be"ause of government
o&nersip of ban's and finan"ial intermediaries.
N !avi"andran CProfessor2 **MAB: $e e"onomi" reforms initiated by te 4overnment of
*ndia rougly about a de"ade ago ave "anged te lands"ape of several se"tors of te
*ndian e"onomy. $e *ndian ban'ing se"tor is no e/"eption. $is se"tor is going troug
ma%or "anges as a "onse+uen"e of e"onomi" reforms. $e "anges affe"t te o&nersip
pattern of ban's2 availability of funds2 te "ost of funds as &ell as opportunities to earn2
range of servi"es Cfee0based andfund0basedB2 and management of priority se"tor lending.
As a "onse+uen"e of liberaliEation in interest rates2 ban's are operating on redu"ed spread.
?evelopment finan"ial institutions &ould ave a lesser impa"t on te *ndian e"onomy.
Consumerism is ere to stay. Non0ban'ing produ"ts li'e insuran"e &ould be a tremendous
opportunity. $e e"onomi" reforms ave also generated ne& and po&erful "ustomers
Cuge *ndian middle "lassB and ne& mi/ of players Cpubli" se"tor units2 private ban's2 and
foreign ban'sB. $e emerging "ompetition as generated ne& e/pe"tations from te
e/isting and te ne& "ustomers. $ere is an urgent need to introdu"e ne& produ"ts.
E/isting produ"ts need to be delivered in an innovative and "ost0effe"tive &ay by ta'ing
full advantage of emerging te"nologies.
$e ne& rules of "ompetition re+uire re"ognition of te importan"e of "onsumers and te
ne"essity to address te needs troug innovative produ"ts supported by ne& te"nology.
As a "onse+uen"e of "ompetition2 te managerial "allenges in"lude mar'et segmentation2
produ"t positioning2 innovative delivery "annels2 "ross0selling2 et". At an organiEation
level2 elaborate systems need to be evolved to manage2 assess2 and "ontain ris' Cin"luding
portfolio2 "lient2 and e/"ange rateB.
$e ban's may ave to reorient teir resour"es in te form of reorganiEed bran"
net&or's2 redu"ed manpo&er2 dramati" redu"tion in establisment "ost2 oning te s'ills
of te staff2 and innovative &ays of attra"ting talented managerial pool.$e 4overnment
of *ndia and te !eserve Ban' of *ndia C!B*B on teir part &ould strengten te e/isting
-:
norms in terms of governing and dire"ting te fun"tioning of tese ban's. Ban's needs to
strengten teir audit fun"tion. $ey &ould be evaluated based on teir performan"e in
te mar'et pla"e. *t is in tis "onte/t tat &e ave invited te "ief e/e"utive offi"ers of
*ndian ban's to respond to te issues mentioned earlier.
K L Kamat CM? and CE=2 *C*C* Ban'B: *t is said tat te ban'ing se"tor mirrors te
larger e"onomy
O its lin'ages to all se"tors ma'e it a pro/y for &at is appening in te e"onomy as a
&ole. *ndeed2 te *ndian ban'ing se"tor today as te same sense of e/"itement and
opportunity tat is evident in te *ndian e"onomy. $e fundamental stru"tural "anges in
re"ent years ave taugt us many lessons. A "ombination of developments arising from
te"nologi"al advan"ements and a liberaliEed mar'etpla"e
O ?isintermediation2 blurring of traditional roles and boundaries2 empasis on sareolder
value "reation.
O as led to a transformation of te ban'ing se"tor. $e ongoing developments in *ndian
industry and government and te integration of *ndia &it te global mar'ets also offer
myriad opportunities to te ban'ing se"tor. Companies and governments are in"reasingly
see'ing ig0+uality ban'ing servi"es to improve teir o&n operating effi"ien"y.
Companies see' to offer better "ustomer servi"e and ma/imiEe sareolder returns and
governments see' to improve te +uality of publi" servi"es. $e internationaliEation of
*ndia offers ban's te opportunity to servi"e "ross0border needs of *ndian "ompanies and
*ndia0lin'ed needs of multinationals. $e gro&ing *ndian diaspora2 &it its strong ome
"ountry lin'ages2 see's a uni+ue "ombination of *ndian etni"ity and global standards tat
offers a valuable ni"e opportunity for *ndian ban's. $e biggest opportunity for te
*ndian ban'ing system today is te *ndian "onsumer. ?emograpi" sifts in terms of
in"ome levels and "ultural sifts in terms of lifestyle aspirations are "anging te profile
of te *ndian "onsumer. $is is and &ill be a 'ey driver of e"onomi" gro&t going
for&ard. $e *ndian "onsumer no& see's to fulfil is lifestyle aspirations at a younger age
&it an optimal "ombination of e+uity and debt to finan"e "onsumption and asset "reation.
-@
$is is leading to a gro&ing demand for "ompetitive2 sopisti"ated retail ban'ing servi"es.
$e "onsumer represents a mar'et for a &ide range of produ"ts and servi"es
O e needs a mortgage to finan"e is ouseH an auto loan for is "arH a "redit "ard for
ongoing pur"asesH a ban' a""ountH a long0term investment plan to finan"e is "ildFs
iger edu"ationH a pension plan for is retirementH a life insuran"e poli"y O te
possibilities are endless. And2 tis "onsumer does not live %ust in *ndiaFs top ten "ities.
7<
C/APTER 7 ?
OBJECTIVES OF STUDY
T$e main #bEe9ti5e& Bee:
1. $o 'no& te "ustomer a&areness about ME$;*1E insuran"e "ompany.
#. $o 'no& te motive of buying an insuran"e poli"y.
-. $o 'no& te "ustomer preferen"e for different insuran"e "ompany.
7. Customer opinion about publi" and private se"tor.
71
C/APTER 7 D
RESERC/ MET/ODOLO,Y
Int#du9ti#n and Meanin(
!esear" is a "areful investigation or in+uiry espe"ially troug sear" for ne& fa"ts in
bran" of 'no&ledge or to establis relationsip bet&een effe"t and "ause. And espe"ially
mar'eting resear" tat elps in problem solving in te mar'eting field2 demands "riti"al
analysis of te problems tat are latent or potential in nature. !esear" metodology2 is
"onsidered a 'in to "lini"al operations &ere in0dept diagnosis2 pres"ription and
medi"ines are applied. !esear" metodology is te s'et" and plans to define a problem2
appropriating resear" design2 designing instrument for "olle"tion of data2 and data
interpretations et". *n general2 !esear" problem is te one tat re+uires a resear"er to
find out te best solution for te given problem tat is to find out te "ourse of a"tion2 te
a"tion te ob%e"tives "an be obtained optimally in te "onte/t of a given environment.
Re&ea9$ De&i(n
$e resear" design of tis survey &ill be "onsidered as des"riptive and e/plorative
resear" as te survey is dire"ted to&ards eli"iting publi" opinion to&ards ME$;*1E
*N?*A *NSU!ANCE. A &ell0stru"tured +uestionnaire +ualifying ob%e"tivity of te
survey is used to "olle"t data from te respondents.
Samp!in( De&i(n
Universe for tis pro%e"t is Srinagar City.
Samp!e &iGe
*n vie& of te "onstraints2 sample siEe &as restrained to 1<<.
7#
Samp!in( unit
Any person &eter olding or not olding life insuran"e poli"y2 in te age slab of #< to
>< years and residing in te Srinagar "ity.
Data C#!!e9ti#n
$o a""omplis te ob%e"tivity of tis survey2 primary data &ill be neededH o&ever2
se"ondary data of te ME$ ;*1E and oter "ompanies &ill be used for literature revie&
and to ave general inferen"es. $o eli"it data from te survey universe2 Srinagar0
stru"tured +uestionnaire &as administered. $e se"ondary data re+uired &ill be e/plored
from "ompany information bro"ures and *nternet.
7-
C/APTER 7 @
DATA ANALYSIS AND INTERPRETATION
Keeping in mind te ob%e"tives of te study2 te survey &as being done and follo&ing
interpretation &ere being dra&n.
+6 /a5e '#u $ead ab#ut Pi5atiGati#n in Li"e In&uan9e &e9t#<

TABLE 7 +

Citeia Fe%uen9' Pe9enta(e
5es 9> 9>J
No #7 #7J

77
Intepetati#n

Above figures so&ed tat out of 1<< respondents2 9> respondents are a&are of te
private "ompanies present in te insuran"e se"tor and rest of te respondentFs i.e.#7
is not a&are of private insuran"e "ompanies.
)6 /a5e '#u $ead ab#ut Pi5ate in&uan9e 9#mpan' METLIFE India Li"e<

TABLE 7 )

Citeia Fe%uen9' Pe9enta(e
5es 97 97J
No #> #>J
WW


Intepetati#n
78
$e above figure depi"ts tat out of 1<< respondents2 97 respondents are a&are of
Met ;ife *ndia *nsuran"e and rest of te respondentFs i.e. #> is not a&are of Met
;ife *ndia *nsuran"e.
?6 F#m B$ee did '#u 9#me t# Cn#B ab#ut Met Li"e India In&uan9e<
TABLE 7 ?

Citeia Fe%uen9' Pe9enta(e
Ele"troni" media >- >-J
Print media 1: 1:J
Agent 18 18J
=ters 7 7J


Intepetati#n
7>
A""ording to above data Ele"troni" Media plays a vital role in te promotion of
Met;ife *ndia. As >- of te respondents are a&are troug Ele"troni" Media2 18
troug Agents2 1: troug Print Media and 7 troug oters li'e friends and
relatives.
D6 D# '#u t$inC &e5i9e& p#5ided b' Pi5ate &e9t# Bi!! be bette t$an Pub!i9 &e9t#
9#mpanie&<
TABLE 7 D

Citeia Fe%uen9' Pe9enta(e
5es >: >:J
No -# -#J
Intepetati#n
79
$e above figure depi"ts tat >: of te total respondents agree tat private se"tor
&as providing better servi"es as "ompared to te publi" se"tor.
@6 D# '#u $a5e an' In&uan9e P#!i9'<
TABLE 7 @

Citeia Fe%uen9' Pe9enta(e
5es 9# 9#J
No #: #:J

Intepetati#n
7:

$e above evident so&s tat as most as 9# of te total respondents ave insuran"e
poli"y to "over te ris' of life and ta/. $is so&s tat most people are interested in
buying insuran"e poli"y.
H6 F#m B$i9$ 9#mpan' d# '#u $a5e In&uan9e P#!i9'<
TABLE 7 H

Citeia Fe%uen9' Pe9enta(e
;*C 8# 8#J
*C*C* #1 #1J
ME$ ;*1E 1: 1:J
G?1C standard > >J
=$GE!S - -J
Intepetati#n
7@
$e above evident so&s tat out of te total respondents 8# dealing &it ;*C2
&i" is a publi" se"tor insuran"e "ompany2 1: respondents &ere dealing &it
ME$;*1E *ndia and #1 dealing &it *C*C* 2and > respondents dealing &it
G?1C 2- respondents are dealing &it oter insuran"e "ompanies &i" in"lude
SB*2 $A$A A*4 and Ba%a% AllianE.


F6 .$at a99#din( t# '#u ae t$e m#ti5e& #" bu'in( Li"e In&uan9e P#!i9'<
TABLE 7 F

Citeia Fe%uen9' Pe9enta(e
$AX SAL*N4 8< 8#J
;*1E C=LE! #: #1J
!E4U;A! SAL*N4 1: 1:J
=$GE!S 7 >J
Intepetati#n
8<
As te above figure so&ed tat most of te respondents buy insuran"e poli"y for
te purpose of saving ta/. 8< respondents are in favor of tis. And #:respondents
are in favor of life "over and2 1: respondents are in favor of regular saving and four
respondents are in favor of oter.
>6 D# '#u $a5e an' p!an t# bu' In&uan9e P#!i9' in nea "utue<
TABLE 7 >

Citeia Fe%uen9' Pe9enta(e
5es 9< 9<J
No #< #<J
CanFt say 1< 1<J
Intepetati#n
81
As te above figure depi"ts tat mostly respondents are interested to buy insuran"e
poli"y in te future. 9< of te total respondents are in favor of tis and rest #<
respondents donFt &ant any insuran"e 1< "anFt say anyting.
A6 I" '#u $a5e an' p!an t# bu' an In&uan9e P#!i9'0 B$i9$ p#!i9' B#u!d '#u pe"e&<
TABLE 7 A

Citeia Fe%uen9' Pe9enta(e
P!=$EC$*=N P;AN 19 19J
CG*;?!EN P;AN -< -<J
PENS*=N P;AN 78 78J
=$GE!S : :J
Intepetati#n
8#
As te above evident so&s tat as most as -< of te total respondents prefer to
invest in "ildrenFs plan2 78 &ant to invest in pension plan2 19 in prote"tion plan
and rest in oters.
+*6 I" '#u ae n#t taCin( an' in&uan9e p#!i9'0 p!ea&e te!! u& t$e ea&#n& B$'<
TABLE 7 +*

Citeia Fe%uen9' Pe9enta(e
.e "ould not afford ># >#J
.e donFt see any benefit
&it te system
1< 1<J
No agent approa" us #< #<J
=ters : :J
Intepetati#n
8-
As te evident so&s tat out of 1<< respondents 2># respondent "ould not afford
it2 #< says no agent approa" us2 and nearly 1< of te respondents donFt see any
benefit &it te system2 : says oter reasons.
++6 .$at i& Cu&t#me Pe"een9e "# di""eent in&uan9e 9#mpanie&<

TABLE 7 ++

Citeia Fe%uen9' Pe9enta(e
ME$;*1E *N?*A
*NSU!ANCE
1< 1<J
G?1C S$AN?A!? ;*1E
*NSU!ANCE
18 18J
;*C 78 78J
*C*C* #8 #8J
=$GE!S 8 8J
87

Intepetati#n
$e "art so& tat out of 1<< respondents2 18 respondents are better te ME$
;*1E tan oter insuran"e "ompanies2 18 respondents are li'e te G?1C2 78
respondents are li'e te ;*C2 #8 respondents are li'e *C*C* and 8 respondents li'e
te oter "ompanies.
88
+)6 D# '#u a(ee t$at met !i"e $a5e a (##d band 5a!ue t$an #t$e 9#mpanie&<
TABLE 7 +)

Citeia Fe%uen9' Pe9enta(e
Gigly satisfied 1: 1:J
satisfied -8 -8J
intermediate #- #-J
dissatisfied 18 18J
Lery dissatisfied @ @J
8>
Intepetati#n
$e "art so& tat out of 1<< respondents 1: are igly satisfied2 -8 are satisfied2
#- are average satisfied218 people are dissatisfied and @ are igly dissatisfied.
+? B$i9$ attibute '#u 9#n&ide B$i!e taCin( p#!i9' "#m MetLi"e # #t$e 9#mpan'<
TABLE 7 +?

Citeia Fe%uen9' Pe9enta(e
Brand value -8 -8J
premium #1 #1J
Se"urity of investment -- --J
servi"es 11 11J
89
Intepetati#n
$e "art so& tat out of 1<< respondents2 -8 respondents says tat brand value is te
basis of ta'ing insuran"e and #1 people says tat premium is basis for ta'ing insuran"e
and 11 people says tey "onsider servi"es for ta'ing insuran"e and -- "onsidered se"urity
of investment.
8:
C/APTER 7 H
FINDIN,S OF T/E SURVEYS
1rom te finding of te resear" it is evident tat te most of te people in
te Srinagar are interested to ta'e te pension plan as tey are more "on"erned &it
teir future in"ome ten teir present &en tey are &or'ing and earning. $ey are
more in"lined to&ards te pension plans to ma'e te life "omfortable in teir old age
and tey &ill be independent and does not &ant to dependable on te ne/t generation.
People a&are about te ;ife *nsuran"e se"tor but tey 'no& more "ommon
players li'e ;ife *nsuran"e Corporation C;*CB of *ndia. *t is found tat less people are
a&are in te Srinagar about te Met;ife as a servi"e provider "ompany in te
insuran"e se"tor also. $ey are a&are but Met;ife as an insuran"e provider does not
able to "reate te brand image of insuran"e "ompany in te Srinagar region. At te
same time it is a good sign for te Met;ife tat reary 9>J people a&are tat private
se"tor players are also "ome in te insuran"e se"tor. *n parti"ular out of tese 9>J
people are a&are about te Met;ife Company in te insuran"e se"tor in Srinagar. But
from te finding it is establised tat 1<<J people are a&are about te ;*? as te
oldest player.
$is "learly "omes out of te survey "ondu"ted tat most of te people
"ome to 'no& about Met;ife from te Ele"troni" Media only in Srinagar. *t is
evident tat Met;ife sould go for oter "ampaign alternative also to penetrate te
;o"al Mar'et in te Srinagar.
8@
1rom te resear" it is evident te most of te time &en tin' about te
saving2 investment or insuran"e2 te first ting &i" ta/ Ysaving &i" tey &ill get
out of te poli"y ) investment. $ey people are "on"erned about te insuran"e but at
te same time tey are "on"erned tat tey &ill able to save te ta/ under se"tor so".
*t is evident from te findings tat people are "on"erned about te publi"
and private se"tor but at te same time tey are also "on"erned about. $e servi"es
tey &ill get in e return. *n Srinagar it "omes out of te study tat people tin's tat
te private se"tor players li'e te Met;ife &ill give better servi"e ten te ;*C or
oter publi" ) 4ovt. Se"tor "ompanies. People in Srinagar tin' and e/perien"e tat
private se"tor players give te better servi"es troug teir best infrastru"ture.
*n Srinagar it "omes out of te study tat te brand image of Met;ife is
intermediate2 &ere te felling and a&areness about te ;*C is very strong. 1rom te
study it is evident tat in Srinagar -8J people are ma'ing te de"ision about te
"ompany brands value- as te main "on"ern.
$e future of insuran"e "ompanies in Srinagar is very good2 be"ause it is
evident from te studies tat 9<J of te people &ants to ta'e te insuran"e poli"y in
te future. 1rom te study it "omes to te 'no&ledge tat ;*C 3 *C*C* are te strong
"ompetitors of te Met;ife in Srinagar.
><
C/APTER 7 F
CONCLUSION AND RECOMMENDATIONS
ME$;*1E *ndia is one of te largest life insuran"e "ompanies in te &orld &it insuran"e.
Met;ife *ndia is te "allenge against te oter insuran"e "ompanies in te #1
st
"entury
&it te emerging opes and aspirations. Met;ife *ndia is a bless to te man'ind &i"
as a&a'ened many ne& opes and aspirations for uman'ind a vision of a ne&2 %ust
e+uitable and fair global order governed by a time tested value system based on a noble
uman passion of love2 "ompassion2 toleran"e and mutual understanding.
4lobaliEation as opened ne& frontiers of te"nology2 'no&ledge2 "ommuni"ation and
information. Met;ife *ndia is a gift of globaliEation for te maintenan"e and development
of tese frontiers tro&s before us a daunting "allenge i.e. te utiliEation of tese
fa"ilities to "reate a brave ne& &orld in &i" a +ualitative and a "lear "ange bet&een
yesterdays and tomorro&s "an easily per"eived.
* ave done a detailed analysis of insuran"e se"tor &it spe"ial referen"e to Met;ife *ndia
as &ell as oter private "ompanies and "on"luded tat most of te people preferred to deal
&it nationaliEation insuran"e "ompanies.
About te a&areness regarding te produ"ts offered by Met;ife *ndia2 * "on"lude tat
most of te people are a&are but tey still need more publi"ity among te residents of te
"ity.
ME$;*1E *ndia as set all te strategies and mission after proper vision and is a"ieving
te targets by &or'ing in "o0operative and "o0"oordinated manner and giving te people
full servi"es and fa"ilities and ma'ing &or' easy.
>1
So2 * &ould li'e to "on"lude by saying tat ME$;*1E *ndia is a &onderful gift given to
te man'ind in te ne& era for people development and maintenan"e of te &orld as &ell
as *ndia.
$o introdu"e innovative produ"ts offering a rigt mi/ of fle/ibility)ris')return
depending2 &i" &ill suit te re+uirement of te "ustomers and sould target
spe"ifi" ni"es2 &i" are poorly served or not served at all.
Number of formalities sould redu"e2 as "ustomer feels irritated &it lots of
formalities.
$e "ompany sould also be deal &it rural areas and &it "ities not aving
autoriEed Pin "ode.
*t is seen tat till today a large portion of population is una&are of various
insuran"e plans2 tese in"lude edu"ated professionals also. $erefore2 te Private
se"tor insuran"e "ompanies sould fo"us on improving a&areness and te in"rease
te understanding about insuran"e plans tus in"reasing teir s"ope of sale.
Met ;ife *ndia *nsuran"e Company sould lay more stress on advertisements2 bot
in print as &ell as in oter media.
People of Met ;ife *ndia *nsuran"e Company sould approa" people &o belong
to age group if #80-8 and -8078 also people &o belong to servi"e O"lass as tese
are te only on"e &o are interested in pur"ase a life insuran"e poli"y in future.
>#
C/APTER 7 >
LIMITATION OF T/E STUDY
$e report may be benefi"ial to "ompany. But tere are some limitations of te
study:0
$e siEe of te resear" may not be substantial and it is limited to te Srinagar.
$ere may be la"' of time on te part of respondents.
$ere may be some bias information provide by "ompany professionals.
As only single "ities are surveyed or "overed. *t does not represent te overall vie&
of *ndian Mar'et.
*t is very mu" possible tat some of te respondents may ave given te in"orre"t
information.
>-
W
BIBLIO,RAP/Y
B##C&
1. Misra2 M.N.2 D*nsuran"e Prin"iples and Pra"ti"es(
CS.Cand 3 Co.2 ?eli2 1@@@B
#. Kotler2 Pilip2 DMar'eting Management(
CPrenti"e Gall *ndia2 #<<7B
-. Kotari2 C.!.2 D!esear" Metodology: Metods 3 $e"ni+ues(
C.is&a Publi"ation2 ?eli2 1@@<B
7. MagaEines and Sournal
=utloo'V*nsuran"e Spe"ial2 Sune 1#2 #<<8
8. $e Carted A""ountant Sournal2 Sune 1>2 #<<8
.eb &ite&
BBB6METLIFE69#m
BBB6bima#n!ine69#m
>7
IUESTIONNAIRE
?ear Sir)Madam

* am te student of MBA at doing a pro%e"t -CUSTOMER A.ARENESS
RE,ARDIN, MET LIFE INDIA INSURANCE COMPANY IN S/RI NA,AR0
J123. Please "o0operate to fill tis +uestionnaire.

1. Gave you eard about PrivatiEation in ;ife *nsuran"e se"torP

CaB 5es CbB No
#. Gave you eard about Private insuran"e "ompany ME$;*1E *ndia ;ifeP

CaB 5es CbB No
-. 1rom &ere did you "ome to 'no& about ME$ ;*1E *N?*A *NSU!ANCEP
CaB Ele"troni" Media CbB Print Media

C"B Agents CdB =ters
7. ?o you tin' servi"es provided by Private se"tor &ill be better tan Publi" se"tor
"ompaniesP
CaB 5es CbB No
*f 5es2 !emar'sZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
>8
*f No2 .y ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
8. ?o you ave *nsuran"e Poli"yP
CaB 5es CbB No
>. .it &i" "ompany do you ave *nsuran"e Poli"yP
ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
9. .at a""ording to you are te motives of buying ;ife *nsuran"e Poli"yP
CaB $a/ Saving CbB ;ife Cover
C"B ;i+uidity CdB Se"ure *nvestment


:. ?o you ave any plan to buy *nsuran"e Poli"y in near futureP
CaB 5es CbB No
@. *f you ave any plan to buy an *nsuran"e Poli"y2 &i" poli"y &ould you .prefer P
CaB Saving Plan CbB Prote"tion Plan
C"B Pension Plan CdB CildrenFs Plan

1<. *f you are not ta'ing any insuran"e poli"y2 please tell us te reasons &yP
>>
CaB .e "ould not afford
CbB .e donFt see any benefit &it te system
C"B .e donFt &ant insuran"e
CdB .e donFt understand o& system &or's
11. 1rom &i" "ompany &ould you li'e to ta'e insuran"e 1. *f you ave any plan to buy
an *nsuran"e Poli"y2 &i" poli"y &ould you .prefer P
CaB ME$;*1E *N?*A *NSU!ANCE CbB G?1C S$AN?A!? ;*1E
*NSU!ANCE
C"B ;*C CdB *C*C*
CeB =$GE!S
1#. .at are Customer Preferen"e for different insuran"e "ompaniesP
CaB ME$;*1E *N?*A *NSU!ANCE CbB G?1C S$AN?A!? ;*1E
*NSU!ANCE
C"B ;*C CdB $A$A A*4
CeB K=$AK MAG*N?!A
>9
1-. ?o you agree tat met life ave a good brand value tan oter "ompaniesP
CaB 5es CbB No
C"B CanFt say
17 &i" attribute you "onsider &ile ta'ing poli"y from Met;ife or oter "ompanyP
CaB brand CbB premium
C"B servi"es
dB Se"urity
BACK4!=UN? ?A$A
1. Name ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
#. Se/: CaB Male CbB 1emale
-. Age: CaB Belo& 1: CbB 1:0-8
C"B -808< CdB Above 8<
7. Edu"ation: CaB Under 4raduate CbB 4raduate
CCB Post 4raduate
>:
8. =""upation: CaB Servi"e CbB Profession

C"B Business CdB =ters
>. *n"ome: CaB ;ess tan !s. 8<2<<<
CbB !s. 8<2<<< to 128<.<<<
C"B !s. 128<2<<< to -2<<2<<<
CdB !s. -2<<2<<< 3 above
9. Address ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
:.Pone no. ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
[$an's for your valuable time and "o0operation[
>@