PART - A

1. INTRODUCTION OF INSURANCE
Insurance is a contract between the insurance company (insurer) and the policyholder (insured).
In return for a consideration (the premium), the insurance company promises to pay a specified
amount to the insured on the happening of a specified event.
As the first step in helping you to gain the knowledge you need to become a professional and
successful life insurance agent, we are going to first take an overview of life insurance what it
is and why it is needed.
In seeing how life insurance works we will need to make reference to the insurance market as a
whole insurance is available for many other things, not just for human life but our focus will
remain firmly on the life insurance part of it.

How does insurance work

We can move on to understanding how insurance works exactly.

Case study:Ajay is 35 years old and works for a multinational corporation (MNC). He has a 10 year old son,
Vijay, whom he dreams will one day become a doctor. Ajays spouse is a housewife, and his
parents are retired and depend on him. Ajay has a home loan and is making monthly investments
for Vijays higher studies and marriage and his own retirement. Ajay wants to ensure that Vijay
gets the best of everything and that he himself is not depend on Vijay during his retirement in the
way that Ajays parents are on him. So far everything is going well with Ajays plans. But
imagine what will happen in the following scenario.
One day while returning home from the office Ajay has an accident and dies. What will happen?
Who will take care of the family, Vijays education and marriage, the home loan etc? What are
options available to Ajay so that his family can be taken care of in his absence?
Life insurance provides protection to a family on the untimely death of income provider. If Ajay
has adequate life insurance cover, then should he die, the money received from the life insurance
company can help to support his family. The insurance money will help to take care of the
familys living expenses, Vijays education and marriage, and the cost of the home loan etc.
2

Let us continue with our case study of Ajay. The risk of premature death described above is only
one of the risks that Ajay faces. He faces any other risks that he will need medical care at

some point, that his home may burn down, for instance. Ajay can handle these risks
in different ways.

Risk retention: One, not very wise way, of handling these risks is to retain them, i.e. for Ajay
to bear the risk that he will have to provide these situations himself, and so do nothing about
them. While times are good and none of these events happen, Ajay need not be worried. But the
moment any one of them does happen, Ajay will be in trouble. So it is definitely not wise for
Ajay retain, or handle, these risks himself.

Risk transfer: the other way of handling these risks is to transfer them to someone who can
handle them properly. In simple words, the process of transferring risks from one person who
does not have the capacity to bear them to someone who does have the capacity for them, is
known as insurance.
At this point, it may be useful to return to our definition of insurance:
Insurance is a contract between the insurance company (insurer) and the policyholder (insured).
In return for a consideration (the premium), the insurance company promises to pay a specified
amount to the insured on the happening of a specified event.
So, from the above explanation we can see that insurance is:

The process of transferring the risk from the owner (insured person);
To another party (insurer) who can bear that risk;
In for a consideration (premium).

Role of financial services and insurance: we can see from all of this that a well
developed and evolved insurance sector benefits economic development and at the same time
strengthens the risk taking ability of the country. Insurance has a role to play at the individual
level too. Some of the benefits for the policyholder are shown below:

Investment option

Insurance products are an excellent investment option where the

policyholder not only gets the advantage of insurance cover, but
3

also a return on their investments based on their risk appetite.

Protection of financial Insurance companies provide compensation in case something
happens to the assets or the individual insured, as per the terms and

security

conditions of the policy. Life insurance protects the family against

the loss of the income provider, helping to provide for the familys
needs and the childrens education and marriage. Hence the effect
of loss is considerably reduced for and individual.
Insurance offers considerable tax benefits under the income tax

Tax benefits

act 1961. Premium paid up to Rs. 1,00,000 qualifies for education

from taxable income under section 80C of the Act, subject to
certain terms and conditions. The death benefit or the maturity
benefit received by the nominee or the policyholder is tax free
under section 10 (10D) of the Act, as per prevailing laws, before
premium paid up to Rs. 1,00,000.

Planning for life stage Today the insurance products that are being offered by insurance
companies are designed to suit the needs of individuals in different

needs

age groups. This allows individuals to invest in insurance policies

to meet their various and changing priorities.
Develops the habit of An individual learns to save a certain amount of money from their
income in order to pay their insurance premium. This encourages

saving

the habit of saving among individuals.

against Individuals can also take out a loan against their insurance

Loan

insurance policy

policies, subject to the conditions and privileges of the policy,

without affecting any policy benefits.

Releases capital and When the management of a company knows that many of the risks

management

faced by the company are covered by insurance, they no longer

need to set funds aside to cover the impact of those risks taking
place. They are also free to concentrate on developing and growing
their business. This makes the company more effective, which in
turn helps to improve the overall economy of the country.

2. INTRODUCTION OF LIFE INSURANCE BUSINESS

4

Life insurance companies risks that relate to human lives. They offer different benefits
under different types of products and cover the risk of early death, as well as the risk of living
into old age. Under traditional plans, like term insurance plans, insurance companies provide
death cover. If the insured person dies within the term of policy then the nominee\beneficiary
amount (also known as sum assured).
The key objectives of the IRDA include the promotion of competition with a view to
increasing customer satisfaction through more consumer choice and lower premiums, while
insuring the financial security of the insurance market. The IRDA has the power to make
regulations under section 114A of the insurance Act 1938. Since 2000 it has introduced various
regulations ranging from the registration of companies for carrying on insurance business to the
protection of policyholders interests.
The insurance Act 1938 and GIBNA were amended which removed the exclusive
privilege of GIC and its four subsidiaries to write general insurance in Indi. As a result, general
insurance business was opened up to the private sector.

Types of Insurance Organizations

Insurance organizations are divided into three main categories, as the following figure shows. We
will look briefly at the various products the different types of insurance organizations offers
inbelowsections:

Non-Life
Insurance
Life
Insurance

Reinsuran
ce
Insura
nce

Life insurance companies

Life insurance companies cover risks that relate to human lives. A professional market
insures that the customer gets what they are looking for rather than what the company wishes to
sell them. This is called needed based selling. A customer who is confident that they will
only be sold a product that meets their needs is more likely to buy again, and recommended
insurance to others. The insurance industrys regulator (the IRDA) has been proactively trying to
address concerns about miss-selling, which is where a customer has been sold a policy that does
not meet their needs in some way. When this happens the public becomes wary and cynical about
the value of insurance.

Non life insurance companies

Non life insurance companies generally cover risks other than those relating to human
lives. The exceptions to this are personal accident and health insurance, which are provided by
non life insurance companies. Any assets their gives a monetary return (such as house given on
rent), or offers convenience can be insured. All assets are exposed to various risks: they can be
damaged or destroyed by fire, earthquake, riot, flooding, theft, cyclones etc. non life insurance
companies offer product that cover these risks and compensate the owner should the assets be
damaged by one of them. It is a product from this type of company that an individual would buy
to protect their assets.

Reinsurance companies
We saw earlier that insurance is a risks transfer mechanism. Risk is transferred from those
who are unable to bear it to those who can. However, insurance companies can only take on so
much risk. Once that limit is reached, the insurer itself is exposed to the risk of loss. When this
happens insurer look to transfer some of their risks to someone else to shield themselves from
overexposure. This is where reinsurance companies come into use. A reinsurance company is an
insurer for the insurance company. Reinsurance companies take on a certain percentage of the
risks on the insurance companys book, in return for the payment of a consideration.

Roles in the insurance industry

Agents

Corporate Agents

Intermediaries

Underwriters

Acturies

Constituents of
the insurance
market

TPAs

Surveyrs/loss
adjusters

The regulator

Training Institutes
NGOs - Protecting
the customers'
right

History of insurance
The history of insurance in India is deep rooted. Since the earliest times insurance has been
carried out in some from or other. Insurance in India has developed over time and has taken ideas
from countries England particular.

The history of insurance in India can be divided into three phases as follows:

Phase I - PreLiberalisation

Phase II - Liberalisation
Phase III - Post-Liberalisation

Phase I Pre Liberalization

1818-1829

First insurance company: in 1818 the oriental life insurance in kolkata

(then calcutta) was the first company to start a life insurance business in
India. However, the company failed in 1834. In 1829 he Madras Equitable

1870

had begun transacting life insurance business in Madras Presidency.

Following the enactment of the British insurance Act 1870, the last three
decades of the 19th century saw the creation of the Bombay mutual (1871),

1912

oriental (1874) and empire of India (1897) in the Bombay residency.

The Indian life assurance Companies act 1912 was the first statuary measure to
regulate life business.
8

1928

The Indian insurance companies Act 1928 give the government the power to
collect statistical information about both life and non life business transacted

1938

in India by Indian and foreign insurers, including provident insurance societies

To protect the interest of the insuring public, the earlier legislation was
consolidated and amended by the insurance Act 1938 which gave the

1950

government effective control over the activities of insurers.

In the 1950s, competition in the insurance business was very high and there
were allegation of unfair trade practices. The government of India therefore

1957

decided to nationalize insurance business.

Formation of the general insurance council (GIC): GIC presents the collective
interests of the non life insurance companies in India. The council speaks out
on issues of common interest participate in discussion related to policy
formation, and Acts as an Advocate for high standards of customer service in

1972

the insurance industry.

The general insurance business (nationalization) Act 1972 (GIBNA) was
passed. The general insurance corporation of Indian (GIC) was formed in
pursuance of section 9(1) of GIBNA. It was in corporate on 22 nov. 1972 under
companies Act. 1956as a private company limited by shares.

Phase II Liberalization
The international payment crisis of the 1990s forced the government to we think its industrial
policies and regulations. The government only had enough foreign currency reserves to finance a
few days of imports.

1993

1999

Malhotra committee: In 1993 the government set up a committee under the

chairmanship of R.N.Malhotra, the former governer of RBI, to make
recommendations for the reform of the insurance sector. In its report in 1994,
the committee recommended, among other things, that the private sector and
foreign companies ( but only through a joint venture with an Indian partner) be
permitted to enter the insurance industry
Formation of IRDA: following the recommendations of the Malhotra
committee report, the insurance regulatory and development authority (IRDA)
was constituted as an Autonomous body in 1999 to regulate and develop the
insurance industry. The IRDA was incorporated as a statuary body in April
2000
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Phase III Post Liberalization

As we have seen, following the recommendations of the Malhotra committees, the insurance
sector was opened to private companies. Foreign companies were also allowed to participate in
the Indian insurance market through joint ventures (JVs) with Indian companies. Under current
regulations the foreign partner cant hold more than 26% stake in the joint venture.

Recent development in the Insurance Industry

By 2010 India was the fifth largest insurance market in the world and it is still growing rapidly:

Growing importance of All insurance companies now use information technology to

IT

benefit their business and to improve convenience for their

customers. Today, customers can pay their premiums and
check the status and other details of their policies companys
website. Updates relating to the receipt of premiums or
changes to their policy or sent to the customer through mobile

Bancassurance

SMS.
Many banks have joined with insurance companies to cross
sell insurance products to their customers. Insurance
companies benefit from the wide network and loyal customers
base of banks, and the contribution that Bancassurance makes
to insurance sells has steadily grown over the last few years.
The banks benefit through being able to provide value added
products to their customers and from the fee income they
received in return from the insurance companies. Many banks

Online sells

have started their own life insurance subsidiaries.

Most of the insurance companies have now started selling
insurance products online. This eliminates the needs for an
intermediary and reduces costs. The saving can be passed to

Micro insurance

customers in the firm of reduced premium.

Micro insurance guidelines were issued by the IRDA in 2005.
Micro insurance products provide insurance protection to
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people in lower income groups, such as self help group

(SHG) members, formers, rickshaw pullers and others against
the risks that they and their assets are exposed to. The
premiums for these products me be as low as Rs. 15 and are
collected on a weekly basis. The minimum life insurance
cover specified by the regulator for this category is rupees
5.000 and the maximum cover that can be provided is rupees
50.000 people work in agriculture and allied activities are
exposed to the Hazards of nature so they need protection
against risks like monsoon failure, floods etc. this is where

Grievance redressal

micro insurance can come to their rescue.

Whenever any industry is experiencing fast growth there are
bound t be concerns, and the insurance industry is no
different. There has been an increase in complaints from
customers about the settlement their claims and customer
service in general. As we saw earlier, the IRDA has taken
steps to protect the interest of the policyholders. It has asked
insurance companies to set up internal customer grievance
redressal sells/departments, and an insurance ombudsman has
been established.
The latest initiative from the IRDA is the setting up of a call
centre which an insured can contact to seek the resolution of a
grievance they have against their insurer. The unhappy
customer can either call a toll free number (155255) or e
mail: complaints@irda.gov.in to register their complaints.

Huge scope for insurance market

11

Tags: fifth Insurance Summit of the Indian Chamber of Commerce Insurance

Regularity Development Authority
Indian insurers should think
of having ATMs like banks
for

cash

payment

surrendered
policies.

against

or

matured

Sudhin

Roy

Chowdhury, Member (Life)

of

Insurance

Development

Regularity
Authority

(IRDA) said this today while

addressing the 5th Insurance
Summit in Kolkata, organised
by

the

Indian

Chamber

of

Commerce.
ATM card can be issued to each policy-holder while signing for the policy, which they
would be able to use after surrender or maturing the policy. Otherwise, poor policy-holders of
interiors have to open bank accounts and are forced to deposit a major portion in fixed deposits
and end up with a paltry sum in their hands. He was addressing a gathering of the insurers and
other stake-holders at the fifth Insurance Summit of the Indian Chamber of Commerce in
Kolkata. The IRDA member does not consider that the Indian insurance sector is lagging behind
and tremendous scope of growth is there. He advised the players to look at Health and Pension
sector for future growth.
The LIC is currently enjoying 95 per cent of the present Pension market, which is a
negligible portion of the total market potential, he said. Advising them to think beyond captive
customers, he said, presently 24 life insurance companies and 26 non-life insurance companies
are in Indian market. Lots of mergers are expected in near future as huge foreign players are
expected to enter the market. Indian companies can survive with innovative products and world12

class customer services. He advised the players to think about One-Time Premium products as
there is strong appetite for such products.
Industry sources hinted that IRDA is likely to consider hiking the cap on FDI from present 26 per
cent to 49 per cent soon. The regulator is also considering the introduction of policy portability,
where by a policy-holder can migrate to another health insurer without incurring any loss of
benefits, said Mr. Rajiv Mundhra, the senior vice-president of Indian Chamber of Commerce.
Before him, Indian head of the Financial Services, Accenture Management Consulting Samir
Bali urged to make the industry free from frauds from their claims delivery system. Make the
claims settlement process easy, hassle-free and free from frauds which paint the whole industry
in bad light. Releasing the gist of the Knowledge Partners; Report, done by Accenture, Mr.
Bali said, Current percentage of fraudulent activities in Indian Insurance sector is about 10 to 15
percent, which is slightly less than US. The report dealt with distribution system, competition,
maintaining high growth level, maintenance of data privacy and management, digital
experiences, new segments and geographical locations and host of other areas. He feels the buzz
word in insurance sector has changed from Opportunity to Challenges.
However, Swaraj Krishnan, the Managing Director of Magma HDI general Insurance Company
Limited do not subscribe this view and feels, There is enough opportunity, but the way has to be
discovered. Its not that it is impossible. Only Insurance companies have to bring their brains
together and find out the way. But, the message has to be sent to customers that these companies
are not to cheat them, but deliver.

3. THE DECISION PROCESS

13

Appeals
If your health insurer refuses to pay a claim or ends your coverage, you have the right to appeal
the decision and have it reviewed by a third party.
You can ask that your insurance company reconsider its decision. Insurers have to tell you why
theyve denied your claim or ended your coverage. And they have to let you know how you can
dispute their decisions.

Youre right to appeal

There are two ways to appeal a health plan decision:

Internal appeal: If your claim is denied or your health insurance coverage

cancelled, you have the right to an internal appeal. You may ask your insurance
company to conduct a full and fair review of its decision. If the case is urgent,
your insurance company must speed up this process.

External review: You have the right to take your appeal to an independent
third party for review. This is called external review. External review means that
the insurance company no longer gets the final say over whether to pay a claim.

Internal Appeals
There are 3 steps in the internal appeals process:
1. You file a claim: A claim is a request for coverage. You or a health care
provider will usually file a claim to be reimbursed for the costs of treatment or
services.
2. Your health plan denies the claim: Your insurer must notify you in writing
and explain why:

Within 15 days if youre seeking prior authorization for a treatment

Within 30 days for medical services already received

Within 72 hours for urgent care cases

14

3. You file an internal appeal: To file an internal appeal, you need to:

Complete all forms required by your health insurer. Or you can

write to your insurer with your name, claim number, and health
insurance ID number.

Submit any additional information that you want the insurer to

consider, such as a letter from the doctor.

The Consumer Assistance Program in your state can file an appeal

for you.

You must file your internal appeal within 180 days (6 months) of receiving notice that your claim
was denied. If you have an urgent health situation, you can ask for an external review at the same
time as your internal appeal.
If your insurance company still denies your claim, you can file for an external review.

What papers do I need?

Keep copies of all information related to your claim and the denial. This includes information
your insurance company provides to you and information you provide to your insurance
company like:

The Explanation of Benefits forms or letters showing what payment or services

were denied

A copy of the request for an internal appeal that you sent to your insurance
company

Any documents with additional information you sent to the insurance company
(like a letter or other information from your doctor)

A copy of any letter or form youre required to sign, if you choose to have your
doctor or anyone else file an appeal for you.
15

Notes and dates from any phone conversations you have with your insurance
company or your doctor that relate to your appeal. Include the day, time, name,
and title of the person you talked to and details about the conversation.

Keep your original documents and submit copies to your insurance company.
Youll need to send your insurance company the original request for an internal
appeal and your request to have a third party (like your doctor), file your internal
appeal for you. Make sure to you keep your own copies of these documents.

What kinds of denials can be appealed?

You can file an internal appeal if your health plan wont provide or pay some or all of the cost for
health care services you believe should be covered. The plan might issue a denial because:

The benefit isnt offered under your health plan

Your medical problem began before you joined the plan

You received health services from a health provider or facility that isnt in your
plans approved network

The requested service or treatment is not medically necessary

The requested service or treatment is an experimental or investigative

treatment

Youre no longer enrolled or eligible to be enrolled in the health plan

It is revoking or canceling your coverage going back to the date you enrolled
because the insurance company claims that you gave false or incomplete
information when you applied for coverage.

How long does an internal appeal take?

Your internal appeal must be completed within 30 days if your appeal is for a
service you havent received yet.
16

Your internal appeals must be completed within 60 days if your appeal is for a
service youve already received.

At the end of the internal appeals process, your insurance company must provide
you with a written decision. If your insurance company still denies you the service
or payment for a service, you can ask for an external review. The insurance
companys final determination must tell you how to ask for an external review.

What if my care is urgent and I need a faster decision?

In urgent situations, you can request an external review even if you havent completed all of the
health plans internal appeals processes. You can file an expedited appeal if the timeline for the
standard appeal process would seriously jeopardize your life or your ability to regain maximum
function. You may file an internal appeal and an external review request at the same time.
A final decision about your appeal must come as quickly as your medical condition requires, and
at least within 4 business days after your request is received. This final decision can be delivered
verbally, but must be followed by a written notice within 48 hours.

External Review
There are 2 steps in the external review process:
1. You file an external review: You must file a written request for an external
review within 60 days of the date your insurer sent you a final decision. Some
plans may allow you more than 60 days to file your request. The notice sent to
you by your health insurance issuer or health plan should tell you the timeframe
in which you must make your request.
2. External reviewer issues a final decision: An external review either
upholds your insurers decision or decides in your favor. Your insurer is required
by law to accept the external reviewers decision.

Types of denials that can go to external review

17

Any denial that involves medical judgment where you or your provider may
disagree with the health insurance plan

Any denial that involves a determination that a treatment is experimental or

investigational

Cancellation of coverage based on your insurers claim that you gave false or
incomplete information when you applied for coverage.

What are my rights in an external review?

Insurance companies in all states must participate in an external review process that meets the
consumer protection standards of the health care law.

State: Your state may have an external review process that meets or goes beyond these
standards. If so, insurance companies in your state will follow your states external review
processes. Youll get all the protections outlined in that process.

Federal: If your state doesnt have an external review process that meets the minimum
consumer protection standards, the federal governments Department of Health and Human
Services (HHS) will oversee an external review process for health insurance companies in your
state.
Depending on your plan and where you live, the following may apply to you:

Insurance companies may choose to participate in an HHS-administered process

or contract with independent review organizations in states where the federal
government oversees the process.

If youre in an employer-sponsored health plan, you may not be eligible to

participate in a state-run external review process.

If your plan doesnt participate in a state or HHS-administered external review

process, your health plan must contract with an independent review organization.

18

How do I learn more about my states external review?

Look at the information on your Explanation of Benefits (EOB) or on the final

denial of the internal appeal by your health plan. Itll give you the contact
information for the organization that will handle your external review.

See this state list maintained by the HHSs Center for Consumer Information &
Insurance Oversight.

How long does external review take?

Standard external reviews are decided as soon as possible - no later than 60 days after the request
was received. If my health insurance company participates in the HHS-administered
external review process, how do I request an external appeal?

Submit a request via email: disputedclaim@opm.gov

Visit www.externalappeal.com. In the future, youll be able to file a request using

a secure website.

HEALTH INSURANCE

What is health insurance?

Presenting the IDBI Federal Healthsurance Hospitalisation and Surgical Plan. If youre aged 18
years to 55 years and currently in good health, this new insurance plan is designed to help you
19

manage the extra financial burden that

comes

with

hospitalisation,

by

providing a wide range of attractive

benefits.
Here are the few reasons why you
should include Healthsurance in your
financial plan.

Dont
say it
will
not happen to me -Every year, millions of adults in

India

are admitted to hospitals due to illness or injury.

Even if you think it will not happen to you, there is unfortunately a very real chance that it will.
The costs involved in even the shortest hospital stay can be difficult to meet for many individuals
and families. On top of the costs of the treatment itself, household bills still need to be paid and
there could be extra costs to cover, such as travel expenses for family visits and additional
childcare costs.
Thats why IDBI Federal Life Insurance Co. Ltd. Developed the IDBI Federal Healthsurance
Hospitalisation and Surgical Plan. If you are aged 18 years to 55 years and currently in good
health, this new insurance plan is designed to help you manage the extra financial burden that
comes with hospitalisation, by providing a wide range of attractive benefits.

A health plan without the headache

20

Every year, millions of adults in India are

admitted to hospitals due to illness or injury.
With the sharp rise in lifestyle diseases in the
country, hospitalization has now become a real
chance for most of us. Yet, when you bring up
hospitalization, It wont happen to me! is
the typical response from people at large.
It is this insight that helped us create IDBI
Federal Healthsurance Hospitalisation and Surgical Plan. This new insurance plan offers a host
of features and benefits that are designed to help you manage the extra financial burden that
comes with hospitalisation.

Why Healthsurance?
The costs involved in even the shortest hospital stay can be
difficult to meet for many individuals and families. Apart
from the costs of the treatment itself, household bills still
need to be paid and there could be extra costs to cover, such
as travel expenses for family visits or additional childcare
costs. You need a plan to help you to manage this extra financial burden.

Advantage of Healthsurance

IDBI Federal Healthsurance Hospitalization and Surgical Plan is a power packed plan with loads
of benefits that aim to keep you tension free.

21

Daily hospital cash benefit paid for each day

(24 hours) spent in an eligible hospital (from
day 2 onwards): Rs. 500, Rs. 1,000, Rs.
1,500 or Rs. 2,000 depending on your choice
of benefit level

Higher daily hospital cash benefits of Rs

3,000 and Rs. 4,000 available, subject to
suitable proof of income

Additional daily benefit equal to the daily hospital cash benefit, from day 2 onwards for
hospitalization in an Intensive Care Unit, (up to an overall maximum daily benefit of Rs.
5,000)

Additional lump sum surgery benefit paid if you undergo any of the wide range of
surgical procedures specified in this brochure: either 50 or 100 times your chosen daily
benefit, depending on the severity of the surgery

Three times your daily hospital cash benefit paid as a lump sum convalescence benefit
(maximum once per year) if your hospital stay is at least 168 continuous hours (at least 7
consecutive days)

Generous total benefit limits. Up to 500 times your daily hospital cash benefit each year;
up to 2,000 times your daily hospital cash benefit over the lifetime of your policy

Cover lasts until you are aged 65 years, provided you continue to pay your premiums in
the agreed manner and as long as your lifetime benefits limit (2,000 times your daily
hospital cash benefit) has not been reached

Your choice of nominee, to whom any outstanding benefits will be paid, in the event of
the death of the insured person

Low-cost monthly premiums that depend on your age at the outset. Your premium will
never increase because of any changes in your age, health, or the number of claims you
make. However, IDBI Federal Life Insurance Co. Ltd. does reserve the right (subject to
IRDA approval) to increase premiums in the future across all its specified plans.

Note: In this plan, "hospitalization" means any admission in hospital upon the written advice of a
medical practitioner for the purpose of necessary medical treatment of an illness or injury and
resulting in an overnight stay. Its easy to apply, and enjoy peace of mind. To apply for the
22

protection of the IDBI Federal Healthsurance Hospitalization and Surgical Plan, simply choose
the level of cover you require from the table below and complete the application form.

GLOBAL LIFE INSURANCE PREMIUMS

Non-life premium growth picked up to 2.6% in 2014, while life premiums resumed
growth, rising by 2.3%. Overall premium volume expanded, but developments in Western
Europe, China and India weighed on the result.

Premium growth will likely improve further in the near term. The gradual hardening of
prices in non-life insurance is likely to broaden and deepen. In life insurance, China and India
are expected to rebound in 2014. However, the weak economy in the Euro zone will remain a
drag on insurance demand in the region.

Asian insurance markets will continue to rise in importance over the next 10 years. In the
very long-run, projected population patterns suggest that Africa could become the next star of
the industry.

NON-LIFE PREMIUM GROWTH PICKED UP IN 2014

Premium volume for non-life business increased by 2.6% in 2014 to USD 1 992 billion
(2013: 1.9%). However, this is still less than the average pre-crisis growth rate. In
emerging markets, non-life premiums expanded by 8.6% in 2014 (2013: 8.1%). The
recovery in the advanced markets gained momentum with growth picking up to 1.5%
(2013: 0.9%), the fourth consecutive year of rising premiums following the decline in
2010.

Daniel Staib, one of the authors of the study, says: "Premium growth held up well given
the challenging economic environment. The non-life market was supported by steady
increases in risk exposures in emerging markets and by selective premium rate increases
in some advanced markets, particularly in Asia."
23

The below charts illustrate the typical benefits of platform

modernization:
24

Most insurers recognize that they need an optimized operating platform to meet these objectives
yet so many are still reliant on old systems.

4. MARKET SEGMENTATION

Market

Segmentation

This

document

prepared

and

presented

by

Business Resource Software, including , Market segmentation the purpose for segmenting a
market is to allow your marketing/sales program to focus on the subset of prospects that are most
likely to purchase your offering.
If done properly this will help to insure the highest return for your marketing/sales expenditures.
Depending on whether you are selling your offering to individual consumers or business, there
are definite differences in what you will consider when defining market segments.

Category of Need
-The first thing you can establish is a category of need that your offering satisfies. The following
classifications may help.

25

For businesses strategic: Your offering is in some way important to the enterprise mission,
objectives and operational oversight. For example, a service that helped evaluate capital
investment
this

opportunities

domain

offering

will

Operations

would

of

influence.

The

purchase

be

made

the

prospect's

your

by

offering

affects

the

fall

decision
top

level

general

for

this

into
category

executive
operating

of

management.
policies

and

procedures. To reach different markets or to promote your products to different locations or

people one has to use a method called market segmentation. "Market segmentation describes the
division of a market into homogenous groups which will respond differently to promotions,
communications, advertising and other marketing mix variable" (Cumming). Market
segmentation is extremely important for companies around the world. If a company doesn't
research the area in which they are going to market or they put a product that is either to
expensive or to elaborate in an area that can't afford that then they will fail as a company. In my
paper I will discussion why market segmentation is used in around the world, the types of
segmentation,

some

techniques

used

to

make

segmentation

work

the

Insurance distribution:
Marketing of insurance products is done through two channels:

Direct
marketing
channels

Indirect
marketing
channels

Resistance to insurance:
Lower Health Insurance Premiums to Come at Cost of Fewer Choices:
26

best.

WASHINGTON Federal officials often say that health insurance will cost consumers less
than expected under President Obamas. But they rarely mention one big reason: many insurers
are significantly limiting the choices of doctors and hospitals available to consumers.
When insurance marketplaces open on Oct. 1,
most of those shopping for coverage will be lowand moderate-income people for whom price is
paramount. To hold down costs, insurers say,
they have created smaller networks of doctors
and hospitals than are typically found in
commercial insurance. And those health care
providers will, in many cases, be paid less than
what they have been receiving from commercial insurers.
Some consumer advocates and health care providers are increasingly concerned. Decades of
experience with, the program for low-income people, show that having an insurance card does
not guarantee access to specialists or other providers.
Consumers should be prepared for much tighter, narrower networks of doctors and hospitals,
said Adam M. Linker, a health policy analyst at the North Carolina Justice Center, a statewide
advocacy group.
That can be positive for consumers if it holds down premiums and drives people to higherquality providers, Mr. Linker said. But there is also a risk because, under some health plans,
consumers can end up with astronomical costs if they go to providers outside the network.
Insurers say that with a smaller array of doctors and hospitals, they can offer lower-cost policies
and have more control over the quality of health care providers. They also say that having
insurance with a limited network of providers is better than having no coverage at all.
The networks will be narrower than the networks typically offered to large groups of employees
in the commercial market, said Joseph Mondy, a spokesman for Cigna.

27

The current concerns echo some of the criticism that sank the Clinton administrations plan for
universal coverage in 1993-94. Republicans said the Clinton proposals threatened to limit
patients options, their access to care and their choice of doctors.
At the same time, House Republicans are continuing to attack the new health law and are
threatening to hold up a spending bill unless money is taken away from the health care program.
In a new study, the Health Research Institute of PricewaterhouseCoopers, the consulting
company, says that insurers passed over major medical centers when selecting providers in
California, Illinois, Indiana, Kentucky and Tennessee, among other states.
Doing so enables health plans to offer lower premiums, the study said. But the use of narrow
networks may also lead to higher out-of-pocket expenses, especially if a patient has a complex
medical problem thats being treated at a hospital that has been excluded from their health plan.
In California, the statewide Blue Shield plan has developed a network specifically for consumers
shopping in the insurance exchange.
Juan Carlos Davila, an executive vice president of Blue Shield of California, said the network for
its exchange plans had 30,000 doctors, or 53 percent of the 57,000 doctors in its broadest
commercial network, and 235 hospitals, or 78 percent of the 302 hospitals in its broadest
network.
Mr. Davila said the new network did not include the five medical centers of the University of
California or the Cedars-Sinai Medical Center near Beverly Hills.
We expect to have the broadest and deepest network of any plan in California, Mr. Davila said.
But not many folks who are uninsured or near the poverty line live in wealthy communities like
Beverly Hills.
Daniel R. Hawkins Jr., a senior vice president of the National Association of Community Health
Centers, which represents 9,000 clinics around the country, said: We serve the very population
that will gain coverage low-income, working class uninsured people. But insurers have shown
little interest in including us in their provider networks.
28

Dr. Bruce Siegel, the president of Americas Essential Hospitals, formerly known as the National
Association of Public Hospitals and Health Systems, said insurers were telling his members: We
dont want you in our network. We are worried about having your patients, who are sick and
have complicated conditions.
In some cases, Dr. Siegel said, health plans will cover only selected services at our hospitals,
like trauma care, or they offer rock-bottom payment rates.
In New Hampshire, Anthem Blue Cross and Blue Shield, a unit of WellPoint, one of the nations
largest insurers, has touched off a furor by excluding 10 of the states 26 hospitals from the
health plans that it will sell through the insurance exchange.
Christopher R. Dugan, a spokesman for Anthem, said that premiums for this select provider
network were about 25 percent lower than they would have been for a product using a broad
network of doctors and hospitals.
Anthem is the only commercial carrier offering health plans in the New Hampshire exchange.
Peter L. Gosline, the chief executive of Monadnock Community Hospital in Peterborough, N.H.,
said his hospital had been excluded from the network without any discussions or negotiations.
Many consumers will have to drive 30 minutes to an hour to reach other doctors and hospitals,
Mr. Gosline said. Its very inconvenient for patients, and at times its a hardship.
State Senator Andy Sanborn, a Republican who is Chairman of the Senate Commerce
Committee, said, The people of New Hampshire are really upset about this.
Many physician groups in New Hampshire are owned by hospitals, so when an insurer excludes
a hospital from its network, it often excludes the doctors as well.
David Sandor, a vice president of the Health Care Service Corporation, which offers Blue Cross
and Blue Shield plans in Illinois, Montana, New Mexico, Oklahoma and Texas, said: In
the exchange, most individuals will be making choices based on costs. Our exchange products
will have smaller provider networks that cost less than bigger plans with a larger selection of
doctors and hospitals.
29

Premiums will vary across the country, but federal officials said that consumers in many states
would be able to buy insurance on the exchange for less than $300 a month and less than
$100 a month per person after taking account of federal subsidies.
Competition and consumer choice are actually making insurance affordable, Mr. Obama said
recently.
Many insurers are cutting costs by slicing doctors fees.
Dr. Barbara L. McAneny, a specialist in Albuquerque, said that insurers in the New Mexico
exchange were generally paying doctors at levels, which she said were often below our cost of
doing business, and definitely below commercial rates.
Outsiders might expect insurance companies to expand their networks to treat additional patients
next year. But many insurers see advantages in narrow networks, saying they can steer patients to
less expensive doctors and hospitals that provide high-quality care.
Even though insurers will be forbidden to discriminate against people with pre-existing
conditions, they could subtly discourage the enrollment of sicker patients by limiting the size of
their provider networks.

5. INTRODUCTION TO IRDA
30

What is IRDA:
MISSION STATEMENT OF THE AUTHORITY:
To protect the interest of and secure fair treatment to policyholders;
To bring about speedy and orderly growth of the insurance industry (including annuity
and superannuation payments), for the benefit of the common man, and to provide
long term funds for accelerating growth of the economy;
To set, promote, monitor and enforce high standards of integrity, financial soundness,
fair dealing and competence of those it regulates;
To ensure speedy settlement of genuine claims, to prevent insurance frauds and other
malpractices and put in place effective grievance redressal machinery;
To promote fairness, transparency and orderly conduct in financial markets dealing
with insurance and build a reliable management information system to enforce high
standards of financial soundness amongst market players;
To take action where such standards are inadequate or ineffectively enforced;
To bring about optimum amount of self-regulation in day-to-day working of the
industry consistent with the requirements of prudential regulation.

IRDAs Members:
1. A Chairman,
2. Five whole time members,
3. Four part time members.

31

DUTIES, POWERS AND FUNCTIONS OF IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA.
Subject to the provisions of this Act and any other law for the time being in force, the Authority
shall have the duty to regulate, promote and ensure orderly growth of the insurance business
and re-insurance business.
WWithout prejudice to the generality of the provisions contained in sub-section (1), the powers and
functions of the Authority shall include

Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend

or cancel such registration;

Protection of the interests of the policy holders in matters concerning assigning of
policy, nomination by policy holders, insurable interest, settlement of insurance
claim, surrender value of policy and other terms and conditions of contracts of

insurance;
Specifying requisite qualifications, code of conduct and practical training for

intermediary or insurance intermediaries and agents;

Specifying the code of conduct for surveyors and loss assessors;
Promoting efficiency in the conduct of insurance business;
Promoting and regulating professional organisations connected with the insurance

and re-insurance business;

Levying fees and other charges for carrying out the purposes of this Act;
Calling for information from, undertaking inspection of, conducting enquiries and
investigations

including

audit

of

the

insurers,

intermediaries,

insurance

intermediaries and other organisations connected with the insurance business;

Control and regulation of the rates, advantages, terms and conditions that may be
32

offered by insurers in respect of general insurance business not so controlled and

regulated by the Tariff Advisory Committee under section 64U of the Insurance Act,

1938 (4 of 1938);
Specifying the form and manner in which books of account shall be maintained and
statement of accounts shall be rendered by insurers and other insurance

intermediaries;
Regulating investment of funds by insurance companies;
Regulating maintenance of margin of solvency;
Adjudication of disputes between insurers and intermediaries or insurance

intermediaries;
Supervising the functioning of the Tariff Advisory Committee;
Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organisations referred to in clause (f);

Specifying the percentage of life insurance business and general insurance business

to be undertaken by the insurer in the rural or social sector; and

Exercising such other powers as may be prescribed.

Addresses of Offices of IRDA

33

Head Office :

Insurance

Regulatory

and

Development

Authority

3rd Floor, Parisrama Bhavan, Basheer Bagh HYDERABAD-500004,

Andhra Pradesh (INDIA )
Ph:(040)23381100
Fax: (040) 6682 3334

Delhi Office:

Insurance

Regulatory

Delhi

Office

Jeevan

Tara

and

Building,

Development
Gate

Authority
No.

First

3
Floor

Sansad Marg, New Delhi-110001

Ph:(011)23747648
Fax: (011) 2374 3397

Contact information:
To enable effective monitoring of Policyholder protection Regulations and Grievance
Guidelines and turnaround times thereby mandated, as well as to create a central repository of
industry-wide insurance grievances data, IRDA has implemented the Integrated Grievance
Management System (IGMS).
IGMS provides a gateway for policyholders to register complaints with insurance companies
first and if need be escalate them to the IRDA Grievance Cells. IGMS is a comprehensive
solution which not only has the ability to provide a centralized and online access to the
policyholder but complete access and control to IRDA for monitoring market conduct issues of
which policyholder grievances are the main indicators. It uses Web interface to ensure that it is
accessible at all places and is on real time. It has also a mechanism to capture complaints
34

received in physical as well as email form or voice calls received by IRDA Grievance Call
centre (IGCC).

IRDA Grievance Call Centre (IGCC) can be accessed through:

A toll free number- 155255 for voice calls & E-mail- complaints@irda.gov.in
The IGCC also provides details of the redressal systems of insurance companies whenever
policyholders require them. Further, the IGCC also educates policyholders about the Insurance
Ombudsman who provides a channel for fair disposal of complaints falling within the
jurisdiction laid down.

How IGMS works: Policy holder needs to login in to www.igms.irda.gov.in and create a
profile for registering a complaint. Policy holders can register one or more complaints. Once
the policy holder registers in to IGMS then details of complaint are passed on to
respective insurance companies. Policy holder can see the details of the branch offices of the
insurance company while registering the complaint. Policy holder receives the confirmation
email after registering the complaint along with IRDA token no which will be used by IRDA
and Insurance Company for tracking of the complaint through IGMS. A complaint registered
through IGMS flows to the insurers system as well as the IRDA repository. If the complainant
is not satisfied with the resolution provided by Insurer, he/she can escalate the complaint for a
review by IRDA for a potential violation of Regulations. All the transactions between the
Insurer, Insured and Remarks by IRDA are visible to the complainant.

6. OVERVIEW OF IDBI FEDERAL LIFE INSURANCE CO.

LTD.:
COMPANY PROFILE:

35

IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, Indias premier
development and commercial bank, Federal Bank, one of Indias leading private sector banks
and Ageas, a multinational insurance giant based out of Purpose. In this venture, IDBI Bank
owns 48% equity while Federal Bank and Ageas own 26% equity each. . Having started in
March 2008, in just five months of inception, IDBI Federal became one of the fastest growing
new insurance companies to garner Rs 100 Cr in premiums. Through a continuous process of
innovation in product and service delivery IDBI Federal aims to deliver world-class wealth
management, protection and retirement solutions that provide value and convenience to the
Indian customer. The company offers its services through a vast nationwide network of 2137
partner bank branches of IDBI Bank and Federal Bank in addition to a sizeable network of
advisors and partners. As on 28th February 2013, the company has issued over 8.65 lakh policies
with a sum assured of over Rs. 26,591Cr.
IDBI Federal today is recognized as a customer-centric brand, with an array of awards to their
credit. They have been awarded the PMAA Awards (2009) for best Dealer/Sales force Activity,
EFFIE Award (2011) for effective advertising, and conferred with the status of Master Brand
2012-13 by the CMO Council USA and CMO Asia.

IDBI BANK
IDBI Bank Ltd. is a Universal Bank with its operations driven by a cutting edge core Banking IT
platform. The Bank offers personalized banking and financial solutions to its clients in the retail
and corporate banking arena through its large network of Branches and ATMs, spread across
length and breadth of India. We have also set up an overseas branch at Dubai and have plans to
36

open representative offices in various other parts of the Globe, for encasing emerging global
opportunities.
As on March 31, 2011, the Bank had a network of 816 Branches and 1372 ATMs. The Bank's
total business, during Fey 2010-11, reached Rs. 3,37,584 Crore, Balance sheet reached Rs.
2,53,377 Crore while it earned a net profit of Rs. 1650 Crore (up by 60%).
IDBI Bank Ltd. is today one of India's largest commercial Banks. For over 40 years, IDBI Bank
has essayed a key nation-building role, first as the apex Development Financial Institution (DFI)
(July 1, 1964 to September 30, 2004) in the realm of industry and thereafter as a full-service
commercial Bank (October 1, 2004 onwards). As a DFI, the erstwhile IDBI stretched its canvas
beyond mere project financing to cover an array of services that contributed towards balanced
geographical spread of industries, development of identified backward areas, emergence of a
new spirit of enterprise and evolution of a deep and vibrant capital market. On October 1, 2004,
the erstwhile IDBI Bank converted into a Banking company (as Industrial Development Bank of
India Limited) to undertake the entire gamut of Banking activities while continuing to play its
secular DFI role. Post the mergers of the erstwhile IDBI Bank with its parent company (IDBI
Ltd.) on April 2, 2005 (appointed date: October 1, 2004) and the subsequent merger of the
erstwhile United Western Bank Ltd. with IDBI Bank on October 3, 2006, the tech-savvy, new
generation Bank with majority Government shareholding today touches the lives of millions of
Indians through an array of corporate, retail, SME and Agri products and services.
Headquartered in Mumbai, IDBI Bank today rides on the back of a robust business strategy, a
highly competent and dedicated workforce and a state-of-the-art information technology
platform, to structure and deliver personalized and innovative Banking services and customized
financial solutions to its clients across various delivery channels.
As on March 31, 2013 IDBI Bank has a balance sheet of Rs. 3,22,769 Crore and business size
(deposits plus advances) of Rs 4,23,423 Crore. As a Universal Bank, IDBI Bank, besides its core
banking and project finance domain, has an established presence in associated financial sector
businesses like Capital Market, Investment Banking and Mutual Fund Business. Going forward,
IDBI Bank is strongly committed to work towards emerging as the 'Bank of choice' and 'the most
valued financial conglomerate', besides generating wealth and value to all its stakeholders.

37

Industrial Development Bank of India

Industrial Development bank of India (IDBI) was constituted under Industrial Development bank
of India Act, 1964 as a Development Financial Institution and came into being as on July 01,
1964 vide Go I notification dated June 22, 1964. It was regarded as a Public Financial Institution
in terms of the provisions of Section 4A of the Companies Act, 1956. It continued to serve as a
DFI for 40 years till the year 2004 when it was transformed into a Bank.

Industrial Development Bank of India Limited

In response to the felt need and on commercial prudence, it was decided to transform IDBI into a
Bank. For the purpose, Industrial Development bank (transfer of undertaking and Repeal) Act,
2003 [Repeal Act] was passed repealing the Industrial Development Bank of India Act, 1964. In
terms of the provisions of the Repeal Act, a new company under the name of Industrial
Development Bank of India Limited (IDBI Ltd.) was incorporated as a Govt. Company under the
Companies Act, 1956 on September 27, 2004. Thereafter, the undertaking of IDBI was
transferred to and vested in IDBI Ltd. with effect from the effective date of October 01, 2004. In
terms of the provisions of the Repeal Act, IDBI Ltd. has been functioning as a Bank in addition
to its earlier role of a Financial Institution.

FEDERAL BANK
Federal Bank Ltd is engaged in the banking business. The Bank operates in four segments:
treasury operations, wholesale banking, retail banking and other banking operations. Treasury
operations include investment and trading in securities, shares and debentures. The Bank's
products and services include working capital, term finance, trade finance, specialized
corporate finance products, structured finance, foreign exchange, syndication services and
38

electronic banking requirements. Federal Bank Ltd was incorporated on April 28, 1931 with
the name Travancore Federal Bank Ltd. The company was established with an authorized
capital of rupees five thousand at Nedumpuram, a place near Tiruvalla in Central Travancore
under the Travancore Company's Act. The Bank was founded by K.P.Hormis. They started
business of auction -chitty and other banking transactions connected with agriculture and
industry. In May 18, 1945, the registered office of the Bank was shifted to Aluva. They
opened their first branch at Aluva and commenced operations. In the year 1946, they opened
their second branch at Angamally. In March 24, 1947, the name of the Bank was changed to
Federal Bank Ltd. In April 1947, they opened their third branch of the Bank was at
Perumbavoor. In July 11, 1959, the Bank was licensed under Sec.22 of the Banking
Companies Act, 1949. The Bank floated several kuries one after another. They also introduced
several new deposit schemes during the same period. In the year 1964, the Bank took over the
assets and liabilities of the Chalakudy Public Bank Ltd, The Cochin Union Bank Ltd and The
Alleppey Bank Ltd. In the year 1965, the St.George Union Bank Ltd was amalgamated
merged with the Bank. In the year 1968, The Marthandom Commercial Bank Ltd was
amalgamated with the Bank. In the year 1970, the Bank became a Scheduled Commercial
Bank. In the year 1973, the Bank became an Authorized Dealer in Foreign Exchange and the
International Banking Department of the bank was started functioning from Mumbai. In the
year 1975, the Bank opened 53 branches. In the year 1976, they opened 42 branches. In the
year 1982, the Bank shifted the International Banking Department to Cochin as part of
consolidation and centralization of activities.
As part of the organization redesigning recommended by National Institute of Bank
Management (NIBM), the Agricultural Finance Department was set up in head office in
November 1984. In July 1985, the Bank set up Personnel and Industrial Relations
Department. Also, they installed the first Advanced Ledger Posting Machine (ALPM-a Wipro
banker) at Br.Aluva-Bank Junction branch. In the year 1987, they inaugurated the
administrative building complex. In the year 1989, the Bank entered into the Merchant
Banking Operations. In March 1994, the Bank came out with the public issue. In February 17,
1997, the bank inaugurated their first ATM at Ernakulum North. In the year 2000, the Bank
started their Any Where Banking (ABB) at Bangalore connecting all branches located in the
Bangalore metro. They launched Depository Services in association with NSDL. Also, they
39

commenced Internet Banking under the name of 'Fed Net' with software support from Infosys
Technologies Ltd. They entered into marketing pacts with some commercial agencies for their
E-commerce business. In the year 2001, the bank made a tie up with Escortel
Communications to launch mobile banking services using SMS technology. Also, they
launched a new deposit scheme christened as 'Suraksha' for senior citizens. The bank became
a member of INFINET, the financial network supported by RBI. In February 2002, they set up
full-fledged systems for the RBI's Negotiated Dealing Systems (NDS) at the Funds &
Investment Branch in Mumbai, enabling online trading in securities. In the year 2003, the
Bank unveiled the Anywhere Banking that provided the convenience of doing transactions
from 300-plus interconnected branches.
In the year 2004, the Bank obtained the level of 100% interconnectivity among all their
branches. Also, they launched an Equity Subscription Scheme, a new retail product for
financing the IPOs and public issue applications of their own customers. The Bank joined
hands with ICICI Prudential Life Insurance Company Ltd for premium collection through
their branches and introduced new Fed e-Pay services. In the year 2005, JRG Securities Ltd
forged an alliance with the Bank for providing loans for subscribing to initial public offers
(IPOs). The bank emerged as the first bank in India to offer Real Time Gross Settlement
(RTGS) across all of their branches. In September 2, 2006, Ganesh Bank was amalgamated
with the Bank and the 32 branches of erstwhile Ganesh Bank of Kurundwad Ltd were
successfully integrated to bank's network. During the period of 2006-07, the Bank entered
into a joint venture agreement with IDBI Ltd & Fortis Insurance International N V for
incorporating a Life Insurance Company under the name of IDBI Fortis Life Insurance
Company Ltd. During the year 2007-08, the Bank opened their Representative office at Abu
Dhabi, Capital of UAE for the gateway of the bank to the whole of Middle East and also as an
interface between their existing customers of GCC countries and its Branches /Offices in
India. In March 2008, the Bank's joint venture life insurance company, IDBI Fortis Life
Insurance Company Ltd commenced their operation. During the year 2009-10, the Bank
opened 60 new branches and 115 new ATM centres. During the year 2010-11, they opened 71
new branches and 73 new ATMs. As on March 31, 2011, the total number of branches and
ATMs of the Bank increased to 743 and 805 respectively, as against 672 and 732 in the last
financial year. As of March 31, 2011, the Bank had two A category branches and 78 branches
40

designated as B category for handling the foreign exchange business.

AGEAS
Ageas is an international insurance group with a heritage spanning more than 180 years.
Ranked among the top 20 insurance companies in Europe, Ageas has chosen to concentrate its
business activities in Europe and Asia, which together make up the largest share of the global
insurance market.

These are grouped around four segments: Belgium, United Kingdom, Continental Europe and
Asia and served through a combination of wholly owned subsidiaries and partnerships with
strong financial institutions and key distributors around the world. Ageas operates successful
partnerships in Belgium, UK, Luxembourg, Italy, Portugal, Turkey, China, Malaysia, India and
Thailand and has subsidiaries in France, Hong Kong and UK.

Ageas is the market leader in Belgium for individual life and employee benefits, as well as a
leading non-life player through AG Insurance. In the UK, Ageas has a strong presence as the
fourth largest player in private car insurance and the over 50s market. Ageas employs more than
13,000 people in the consolidated entities and over 20,000 in the non-consolidated partnerships
and has annual inflows of more than EUR 21 billion.
Ageas is an international insurance group with a heritage spanning more than 180 years. Ranked
among the top 20 insurance companies in Europe, Ageas has chosen to concentrate its business
41

activities in Europe and Asia, which together make up the largest share of the global insurance
market.

These are grouped around four segments: Belgium, United Kingdom, Continental Europe and
Asia and served through a combination of wholly owned subsidiaries and partnerships with
strong financial institutions and key distributors around the world. Ageas operates successful
partnerships in Belgium, UK, Luxembourg, Italy, Portugal, Turkey, China, Malaysia, India and
Thailand and has subsidiaries in France, Hong Kong and UK.

Ageas is the market leader in Belgium for individual life and employee benefits, as well as a
leading non-life player through AG Insurance. In the UK, Ageas has a strong presence as the
fourth largest player in private car insurance and the over 50s market. Ageas employs more than
13,000 people in the consolidated entities and over 20,000 in the non-consolidated partnerships
and has annual inflows of more than EUR 21 billion.

MILESTONES

42

March 2008

IDBI Federal starts operations with two products Homesurance &

Wealthsurance.

August 2008

IDBI Federal becomes one of the fastest growing new life insurers to collect
premiums worth Rs 100 crores.

October 2008 IDBI Federal launches Bondsurance

January 2009

IDBI Wealthsurance Cup 2009 India v/s Sri Lanka held in Sri Lanka.

March 2009

collected premium of over 328 corers and 87,000 policies and a Sum
assured of Rs 2825 crores since inception
Launches Retirements & Termsurance Grameen Suraksha

November
2009
March 2010

IDBI Federal launches Incomesurance

Launches Incomesurance Endowment & Money Back Plan, Termsurance
Protection Plan & Termsurance Grameen Bachat Yojana

September

Launches Loansurance Group Life Plan & Healthsurance Hospitalization

2010

and Surgical Plan

March 2011

Launches Retirements Guaranteed Pension plan

Launches TV Campaigns for Wealthsurance jinse bhi suna, khaeed liya,
Incomesurance guaranteed income ki bhavishyavani and Retiresurance
Monthly pension, zindgi bhar

VISION
To be the leading provider of wealth management, protection and retirement solutions that meets
the needs of our customers and adds value to their lives.

MISSION

43

To continually strive to enhance customer experience through innovative product offerings,

dedicated relationship management and superior service delivery while striving to interact with
our customers in the most convenient and cost effective manner.
To be transparent in the way we deal with our customers and to act with integrity.
To invest in and build quality human capital in order to achieve our mission.

VALUES

Transparency: Crystal Clear communication to our partners and stakeholders

Value to Customers: A product and service offering in which customers perceive value

Rock Solid and Delivery on Promise: This translates into being financially strong,
operationally robust and having clarity in claims

Customer-friendly: Advice and support in working with customers and partners

Profit to Stakeholders: Balance the interests of customers, partners, employees,

shareholders and the community at large

44

We have a not so contested

market place
Created a new category-Entire
investment market available
Creating & capturing new
demand
Cuts across distributors in all
financial industry segments

Competitors of IDBI Federal Life Insurance Co. Ltd.:

1. AEGON Religare Life Insurance
2. Aviva India
3. Shriram Life Insurance
4. Bajaj Allianz Life Insurance
5. Bharti AXA Life Insurance Co Ltd
6. Birla Sun Life Insurance
7. Canara HSBC Oriental Bank of Commerce Life Insurance
8. Star Union Dai-ichi Life Insurance
9. DLF Pramerica Life Insurance

45

10. Edelweiss Tokio Life Insurance Co. Ltd

11. Future Generali Life Insurance Co Ltd
12. HDFC Standard Life Insurance Company Limited
13. ICICI Prudential
14. IDBI Federal Life Insurance
15. IndiaFirst Life Insurance Company
16. ING Vysya Life Insurance
17. Kotak Life Insurance
18. Max Life Insurance
19. PNB MetLife India Life Insurance
20. Reliance Life Insurance Company Limited
21. Sahara Life Insurance
22. SBI Life Insurance Company Limited
23. TATA AIA Life Insurance
24. Oriental insurance company
25. L&T general insurance company
26. Universal sampo general insurance company
27. National insurance company limited
28. Apollo Munich health insurance company
46

29. United India insurance company limited

30. Export credit and guarantee corporation of India Limited.

MARKETING MIX IN IDBI Federal Life Insurance Co Ltd

The term insurance marketing refers to the marketing of Insurance services with the aim to create
customer and generate profit through customer satisfaction. The Insurance Marketing focuses on
the formulation of an ideal mix for Insurance business so that the Insurance organization survives
and thrives in the right perspective.
The marketing mix is the combination of marketing activities that an organization engages in so
as to best meet the needs of its targeted market. The Insurance business deals in selling services
and therefore due weight age in the formation of marketing mix for the Insurance business is
needed.
The marketing mix includes sub-mixes of the 7 Ps of marketing i.e. the product, its price, place,
promotion, people, process & physical attraction. The above mentioned 7 Ps can be used for

47

marketing

of

Insurance

products,

in

the

following

manner:

PRODUCT
A product means what we produce. If we produce goods, it means tangible product and when we
produce or generate services, it means intangible service product. A product is both what a seller
48

has to sell and a buyer has to buy. Thus, an Insurance company sells services and therefore
services are their product. When a person or an organization buys an Insurance policy from the
insurance company, he not only buys a policy, but along with it the assistance and advice of the
agent, the prestige of the insurance company and the facilities of claims and compensation. It is
natural that the users expect a reasonable return for their investment and the insurance companies
want to maximize their profitability. Hence, while deciding the product portfolio or the productmix, the services or the schemes should be motivational. IDBI Federal provides many products
which cater to the needs of the Indian customers.

PRICING
In the insurance business the pricing decisions are concerned with:
i) The premium charged against the policies
ii) Interest charged for defaulting the payment of premium and credit facility, and
iii) Commission charged for underwriting and consultancy activities.
With a view of influencing the target market or prospects the formulation of pricing strategy
becomes significant. In a developing country like India where the disposable income in the hands
of

prospects

is

low,

the

pricing

decision

also

governs

the

transformation

of

potential policyholders into actual policyholders. The strategies may be high or low pricing
keeping in view the level or standard of customers or the policyholders. The pricing in insurance
is in the form of premium rates.
The three main factors used for determining the premium rates under a life insurance plan
are mortality, expense and interest. The premium rates are revised if there are any significant
changes in any of these factors.
Mortality (deaths in a particular area): When deciding upon the pricing strategy the average
rate of mortality is one of the main considerations. In a country like South Africa the threat to life
is very important as it is played by host of diseases.
Expenses: The cost of processing, commission to agents, reinsurance companies as well as
registration are all incorporated into the cost of instalments and premium sum and forms the
integral part of the pricing strategy.
49

Interest: The rate of interest is one of the major factors which determine peoples willingness
to invest in insurance. People would not be willing to put their funds to invest in insurance
business if the interest rates provided by the banks or other financial instruments are much
greater than the perceived returns from the insurance premiums.

PLACE
This component of the marketing mix is related to two important facets
i) Managing the insurance personnel, and
ii) Locating a branch.

The management of agents and insurance personnel is found significant with the viewpoint of
maintaining the norms for offering the services. This is also to process the services to the end
user in such a way that a gap between the services- promised and services offered is bridged
over. In a majority of the service generating organizations, such a gap is found existent which has
been instrumental in making worse the image problem. The transformation of potential
policyholders to the actual policyholders is a difficult task that depends upon the professional
excellence of the personnel.
The agents and the rural career agents acting as a link, lack professionalism. The front-line staff
and the branch managers also are found not assigning due weight age to the degeneration
process. The insurance personnel if not managed properly would make all efforts insensitive.
Even if the policy makers make provision for the quality up gradation, the promised services
hardly reach to the end users.
It is also essential that they have rural orientation and are well aware of the lifestyles of the
prospects or users. They are required to be given adequate incentives to show their excellence.
50

While recruiting agents, the branch managers need to prefer local persons and provide them
training and conduct seminars. In addition to the agents, the front-line staff also needs
an intensive training programmed to focus mainly on behavioral management. Another important
dimension to the Place Mix is related to the location of the insurance branches.
While locating branches, the branch manager needs to consider a number of factors, such as
smooth accessibility, availability of infrastructural facilities and the management of branch
offices and premises. In addition it is also significant to provide safety measures and also factors
like office furnishing, civic amenities and facilities, parking facilities and interior office
decoration should be given proper attention.
Thus the place management of insurance branch offices needs a new vision, distinct approach
and an innovative style. This is essential to make the work place conducive, attractive and
proactive for the generation of efficiency among employees. The branch managers need
professional excellence to make place decisions productive. IDBI Federal has around thousands
and thousands of insurance agents all over India to manage their regional customers effectively.
Also, IDBI Federal has over 796 branches all over India which help in increasing their customer
base.

PEOPLE
Understanding the customer better allows in designing appropriate products. Being a service
industry which involves a high level of people interaction, it is very important to use this
resource efficiently in order to satisfy customers. Training, development and strong relationships
with intermediaries are the key areas to be kept under consideration. Training the employees, use
of IT for efficiency, both at the staff and agent level, is one of the important areas to look into.
IDBI Federal has created various financial products which have been tailored according to the
needs of the customers. They have over thousands of sales personnel who are trained efficiently
to bridge in the gap between the customers and the company.

PROCESS

51

The process should be customer friendly in insurance industry. The speed and accuracy of
payment is of great importance. The processing method should be easy and convenient to the
customers. Instalment schemes should be streamlined to cater to the ever grow.

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

IDBI Federal has also adopted various promotional strategies like:

Commercial Ads
Print Ads
Events
Personnel selling
Word of mouth
Viral marketing.

They have brought out many interesting and humorous ads of their products such as
Wealthsurance, Incomesurance, Retiresurance etc which has got very good response from
customers. They have also conducted events with an aim to create interest around financial
52

planning with Life Insurance at branches which was critical to getting prospects interested in
IDBI Federal products.

7. PRODUCTS OF IDBI FEDERAL LIFE INSURANCE CO.

LTD.:
IDBI Federal provides many products which cater to the needs of the Indian customers. IDBI
Federal products: WEALTHSURANCE
INCOMESURANCE
BONDSURANCE
TERMSURANCE
HEALTHSURANCE
RETIRESURANCE
GROUP MICROSURANCE
HOMESURANCE
LOANSURANCE
CHILDSURANCE

53

WEALTHSURANCE:
The Wealthsurance Milestone Plan is a unique Insured Wealth Plan designed to help cross
different milestones in ones life. It enables customers to save and build wealth under the
protection of Insurance to meet their financial goals. The Wealthsurance Milestone Plan offers a
wide range of Investment options, Insurance options and unmatched flexibility that allows
customers to customize a plan suited to their needs. Customers can plan for their milestones like
completion of school education for their child, a marriage, acquisition of a new house and so on.
This Plan comes with a wide range of 13 investment options and 7 insurance benefits - all
packaged with a low charge structure and unmatched flexibility.

INCOMESURANCE:
IDBI Federal Incomesurance Endowment and Money Back Plan is loaded with lots of benefits
which ensure that you get Guaranteed Annual Payout along with insurance protection which will
help you to reach you goals with full confidence. Incomesurance Plan is very flexible and allows
you to customise your Plan as per your individual and familys future requirements. Moreover it
also allows you to choose Premium Payment Period, Payout Period, Payout Options and more.

54

BONDSURANCE:
The IDBI Federal Bondsurance Advantage Plan is a single premium plan where you need to
make just a one-time investment. You can choose a Maturity Period of 5, 7, 10, 15 or 20 years.
At the end of the chosen period, you will receive a guaranteed maturity amount. In case of death
of the insured person before the Maturity Date, a guaranteed Death Benefit will be paid.

TERMSURANCE:
IDBI Federal Termsurance Protection Plan (Termsurance) comes with three cover options which
you can select on the basis your requirement. Termsurance is designed with a host of benefits &
options aimed at satisfying your every need. It not only allows you to customise your plan as per
your individual and familys needs, it also comes with a host of benefits like convenient
insurance cover options, flexible premium payment terms, choice of policy term and lots more
flexible options.

HEALTHSURANCE:
Presenting the IDBI Federal Healthsurance Hospitalisation and Surgical Plan. If youre aged 18
years to 55 years and currently in good health, this new insurance plan is designed to help you
manage the extra financial burden that comes with hospitalisation, by providing a wide range of
attractive benefits.

55

RETIRESURANCE:
A retirement plan designed to accumulate money to aid a comfortable retirement. The plan
provides a guaranteed return on your investment and grows steadily over the years to ensure that
you have a corpus on your retirement date, guaranteed.

MICROSURANCE:
IDBI Federal Group Microsurance Plan provides affordable life insurance cover to groups. This
plan is extremely useful to Micro Finance Institutions, Self Help Groups and NGOs to insure the
lives of their group members and thus provide security to the group members families. The plan
can also be used for providing loan protection to the group members families.

HOMESURANCE:
IDBI Federal Homesurance Plan is a mortgage reducing term assurance plan MRTA, which
offers protection to your home from your home loan. The Plan provides a cover equal to the
outstanding balance of your home loan against any unfortunate events that may occur to you.
This plan gives you the option of a Single Premium.
56

LOANSURANCE:
Loansurance is a cost-effective way to ensure that the outstanding debt is settled in the
unfortunate event of death of the insured member. This term assurance plan provides cover to a
person directly liable for loan repayment (and the partners, in case of a partnership), as per the
benefit schedule.

CHILDSURANCE:
Whether your child wants to be a doctor, an engineer, an MBA, a sportsman, a performing artist,
or dreams of being an entrepreneur, the IDBI Federal Childsurance Dream builder Insurance
Plan will keep you future-ready against both, changing dreams and lifes twists. It allows you to
create build and manage wealth by providing several choices and great flexibility so that your
plan meets your specific needs. However, what makes Childsurance a must-have for any parent
who is looking to make their childs future shock-proof is its powerful insurance benefits.
Childsurance allows you to protect your child plan with triple insurance benefits so that your
wealth-building efforts remain unaffected by unforeseen events and your childs future goals can
be achieved without any hindrance.

Despite all these tailored products there is still scope for improvement in this field. The Group
Insurance scheme is required to be promoted, the Crop Insurance is required to be expanded and
the new schemes and policies for the villagers or the rural population are to be included. . The
introduction of Rural Career Agents Scheme has been found instrumental in inducing the rural
prospects but the process is at infant stage and requires more professional excellence. So there is
lot of potential in insurance sector which is waiting to be uncorked hence revealing to the
57

economy the benefits of insurance industry. The policymakers are required to activate the
efforts. It would be prudent that the LIC is allowed to pursue a policy of direct investment for
rural development. Investment in Government securities should be stopped and the investment
should be channelized in private sector for maximizing profits. In short, the formulation
of product-mix should be in the face of innovative product strategy, while initiating the
innovative processes it is necessary to take into consideration the strategies adopted by private
and foreign insurance companies.

58

PART B

8. OBJECTIVE OF RESEARCH PLAN:

The research plan is the main part of a grant application describing a principal investigator's
proposed research, stating its importance and how it will be conducted. This page describes the
essentials of a research plan.
A typical research plan has four main sections:
A. SpecificAims
B. BackgroundandSignificance
C. PreliminaryStudiesandProgressReport
D. Research Design and Methods
The research plan should be written to address the following questions:
59

What do you intend to do?

Why is the work important?

What has already been done?

How are you going to do the work?

Specific Aims:
The specific aim is a formal statement of the objectives and milestones of a research project in a
grant application. The purpose of this section is to clearly and concisely describe what the
proposed research is intended to accomplish.

Should include specific research objectives.

Should be hypothesis-based.

Objectives should be obtainable within the proposed timeframe.

Study aims should fit together in an overall framework.

Study should be well-focused rather than broad and diffuse.

Background and Significance

The background and significance section states the research problem including the proposed
rationale, current state of knowledge and potential contributions and significance of the research
to the field.

Critically evaluate existing knowledge, including background literature and relevant data.
60

References should reflect an updated knowledge of the field.

Specify existing gaps that the project is intended to fill.

Discussion should convey the importance and relevance of the research aims.

Highlight potential policy or practice impacts.

Highlight why research findings are important beyond the confines of the specific
research project (e.g., significance; how research results can be applied).

Preliminary Studies and Progress Reports:

The preliminary results section describes prior work by the investigators relevant to the proposed
project. In a new application, the preliminary results are important to establish the experience
and competence of the applicant to pursue the proposed research project and to provide support
for the study hypotheses and research design.
In a competing renewal application, this section becomes a progress report, describing studies
performed during the last grant period. The progress report should include a summary of the
previous application's specific aims and importance of the findings.

Discuss how previous work leads to the current proposal.

Emphasize how the previous work demonstrates feasibility of proposed methods.

If you do not have the required expertise for a specific methodology, enlist a collaborator
or consultant (include a letter of support or agreementSection J of the Research Plan).

Accuracy and overall presentation are important in figures, tables and graphs.

Research Design and Methods:

61

The purpose of the research design and methods section is to describe how the research will be
carried out. This section is critical for demonstrating that the applicant has developed a clear,
organized and thoughtful study design.

Should provide an overview of the proposed design and conceptual framework.

Study goals should relate to proposed study hypotheses.

Include details related to specific methodology; explain why the proposed methods are
the best to accomplish study goals.

Describe any novel concepts, approaches, tools or techniques.

Include details of how data will be collected and results analyzed.

Consider required statistical techniques.

Include proposed work plan and timeline.

Consider and discuss potential limitations and alternative approaches to achieve study
aims.

9. METHODOLOGY USED IN STUDY:

Sample size:The sample size of a survey most typically refers to the number of units that were chosen
from which data were gathered. However, sample size can be defined in various ways. There is
the designated sample size, which is the number of sample units selected for contact or data
collection. There is also the final sample size, which is the number of completed interviews or
units for which data are actually collected. The final sample size may be much smaller than the
designated sample size if there is considerable non-response, ineligibility, or both. Not all the
units in the designated sample may need to be processed if productivity in completing interviews
62

is much higher than anticipated to achieve the final sample size. However, this assumes that units
have been activated from the designated sample in a random fashion. Survey researchers may
also be interested in the sample size.
-

Gary M. Shapiro

Effective sample size:Complex sample surveys rarely result in a set of

independent and identically distributed observations,
because of sample design features such as stratification,
clustering, and unequal weighting that are necessary for
efficient data collection. Such features affect the
resulting variance of survey estimates.
It is immediately obvious that there is not a single
effective sample size for any one study, since the
variance for n.

DEFINING SAMPLE AND COLLECTING DATA:The Scientific Method is an Essential Tool in Research
This image lists the various stages of the scientific method.

63

The scientific method

is a body of techniques
for

investigating
phenomena, acquiring
new

knowledge,

or

correcting

and

integrating

previous

knowledge.

Key points:

Like any research paper, a sociological research report typically consists of a literature
review, an overview of the methods used in data collection, and analysis, findings, and
conclusions.

A literature review is a creative way of organizing what has been written about a topic by
scholars and researchers.

The methods section is necessary to demonstrate how the study was conducted, including
the population, sample frame, sample method, sample size, data collection method, and data
processing and analysis.

In the findings and conclusion sections, the researcher reviews all significant findings,
notes and discusses all shortcomings, and suggests future research.

64

10.
1-

QUESTIONNAIRE DESIGNING

Are you aware about insurance?

(a)

Yes

(b)

65

No

100
80
Yes

60

No

40
20
0
Yes

No

FindingEveryone knows About Insurance

2-

If yes, then life insurance or general insurance?

(a)

Life Insurance

(b)

General Insurance

100
80
60

Life Insurance

General Insurance

40
20
0
Life Insurance

General Insurance

Finding90% Prefer Life Insurance and only 10% Prefer General Insurance.

3-

Where you want your Investment in Bank or in Insurance Company?

(a)

Bank

(b)
66

Insurance Company

90
80
70
60
50

Bank

Insurance Company

40
30
20
10
0
Bank

Insurance Company

Finding-

85% People want their Investment in Bank and 15% People want their Investment in Insurance
Company.

4-

Do you have any Insurance Policy?

(a)

Yes

(b)
67

No

90
80
70
60
50

Yes

No

40
30
20
10
0
Yes

No

Finding-

90% People Have Insurance Policy & 10% People do not have Insurance Policy.

5-

Do you know about the following Life Insurance Company?

68

(a)

LIC

(b)

HDFC

(c)

IDBI FEDERAL

(d)

ICICI

(e)

Bharti AXA

(f)

Others

100
90
80
70
60
50

LIC

HDFC

IDBI FEDERAL

ICICI

Bharti AXA

Others

40
30
20
10
0
LIC

HDFC

IDBI FEDERAL

ICICI

Bharti AXA

Others

Finding-

100% People know about LIC, 60% Know about HDFC, 75% know about IDBI Federal, 6%
know about Bharti AXA & 80% know about ICICI.

69

6-

To which Company do you prefer for Insurance?

(a)

LIC

(b)

HDFC

(c)

ICICI

(d)

Bharti AXA

(e)

Other

(f)

IDBI Federal

70

60

50

40
LIC

HDFC

IDBI FEDERAL

ICICI

Bharti AXA

Others

30

20

10

0
LIC

HDFC

IDBI FEDERAL

ICICI

Bharti AXA

Othe rs

Finding-

65% People Prefer LIC, 1% Prefer HDFC, 20% Prefer IDBI Federal, 1% Prefer Bharti AXA,
10% Prefer ICICI & 3% Other Insurance Company.

70

7-

Are you satisfied with whatever services provided by IDBI Federal Life

Insurance Company Ltd.?

(a)

Yes

(b)

90
80
70
60
50
40
30
20
10
0

Yes

No

No

Yes

No

Finding-

90% People satisfied with services Provided by IDBI Federal & 10% are not satisfied.

71

8-

If yes, then why you prefer IDBI Federal products,

(a)

Low Cost

(b)

Brand

(c)

Guaranteed Returns

(d)

Others

100
90
80
70
60
50

Low Cost

Brand

Guaranteed Returns

Others

40
30
20
10
0
Low Cost

Brand

72

Guarante ed Re turns

Others

Finding-

100% People Prefer IDBI Federal Products because of Low Cost, Brand, Guaranteed Returns &
50% by others Services.

9-

Which type of scheme is provided by your Insurance Company?

(a)

Children Plan

(b)

Investment Plan

(c)

Pension Plan

(d)

Others

73

90
80
70
60
50
Children Plan

40

Investment Plan

Pansion Plan

Others

30
20
10
0
Children Plan

Investment Plan

Pansion Plan

Others

Finding-

10% Scheme for Children Plan, 85% Scheme for Investment Plan, 5% for Pension Plan, 0%
Scheme for others.

10-

According to you, which companys charge is minimum?

(a)

LIC

(b)

HDFC

(c) IDBI FEDERAL

(d)

ICICI

(e)

Bharti AXA

(f)

74

Others

70

60

50

40
LIC

HDFC

IDBI FEDERAL

ICICI

Bharti AXA

Others

30

20

10

0
LIC

HDFC

IDBI FEDERAL

ICICI

Bharti AXA

Othe rs

Finding-

65% People think that Charge of LIC is Minimum while 1% People for HDFC, 20% People for
IDBI, 10% for ICICI, 1% People for Bharti AXA & 3% People think that charge of others
Insurance company are minimum.

11-

In your opinion which companys distribution channel is best?

(a)

LIC

(b)

Bharti AXA

(c)

HDFC

(d)

ICICI

(e)

IDBI Federal

(f)

Others

75

60

50

40

30

LIC

bharti AXA

HDFC

ICICI

IDBI Federal

Others

20

10

0
LIC

bharti AXA

HDFC

ICICI

IDBI Federal

Others

Findings-

60% People think that LICs Distribution channel is best while 5% People think for Bharti AXA,
5% People think for HDFC, 10% People think for ICICI and 20% people think that the IDBIs
distribution channel is best.

12-

Which product of IDBI Federal Life Insurance Company is most

profitable?

(a)

Income insurance

(b)

76

Wealth insurance

50
45
40
35
30

Income Insurance

Wealth Insurance

25
20
15
10
5
0
Income Insurance

Wealth Insurance

Findings-

Both the Product Incomesurance & Wealthsurance life Insurance company is most profitable.

11.

SUGGESTIONS & RECOMMENDATIONS

To Give Suggestions are very easy; but Implementation is very difficult.

1.

The companys advertisement should be more in Local TV channel and News Papers.

2.

The company should be open more branches in, zonal areas.

3.

The policies amount should be taken by the company, is small installment, so that
more and more investors can take the policies of the company.
77

4.

The company should be developed more attractive product plan or policies.

5.

Attractive gift packages should be given by, company to customer, on the basis of
lottery system in every year.

6.

Attractive package of salary should be given by, company to the employee so, that
they can motivate hard work.

7.

Attractive training facility should be developed for financial adviser.

8.

Transparency should be their if an insurance company want to create good image in

the eyes of policy holder.

9.

Insurance company should be adopt modern method in place of traditional method,

which create maximum satisfaction to policy holder.

12.

LIMITATIONS

1.

I was able to survey only in DELHI city.

2.

I had selected the only 100 number of sample size, by which my survey report
analysis is not more fluctuate.

3.

Lack time respondents.

4.

Some respondent due to unawareness about new tern they cant be respondent well
manner.

5.

Change of business of research.

6.

Lack of resources.

7.

Lack of time.

8.

Change of sampling error.

13.

ANNEXURE

Personal information:1. Name:

2. Address:
3. E mail I.D.:
78

4. Phone No.:
5. Gender: Male / Female
6. Marital status: Single / Married
7. Educational qualification:
8. Occupation:
9. Income per month:
a) Below 7500/b) 7501/- 12500/c) 12501/- 17500/d) Above 17500/10. Family size (if Married):
a) Spouse: Working / Home-maker
If working, where? __________
b) No. of children and their ages:
Any other dependence
11. Are you aware about insurance?
(a)

Yes

(b)

No

12. If yes, then life insurance or general insurance?

(a)

Life Insurance

(b)

General Insurance

13. Where you want your Investment in Bank or in Insurance Company?

(a)

Bank

(b)

Insurance Company

(b)

No

14. Do you have any Insurance Policy?

(a)

Yes

15. Do you know about the following Life Insurance Company?

(a)

LIC

(b)

HDFC

(c)

IDBI FEDERAL

(d)

ICICI

(e)

Bharti AXA

(f)

Others

16. To which Company do you prefer for Insurance?

79

17.

(a)

LIC

(b)

HDFC

(c)

IDBI Federal

(d)

ICICI

(e)

Bharti AXA

(f) Others

Are you satisfied with whatever services provided by IDBI Federal Life Insurance Co.?
(a)

Yes

(b)

No

18. If yes, then why you prefer IDBI Federal products,

(a)

Low Cost

(b)

Brand

(c)

Guaranteed Returns

(d)

Others

19. Which type of scheme is provided by your Insurance Company?

(a)

Children Plan

(b)

Investment Plan

(c)

Pension Plan

(d)

Others

20. According to you, which companys charge is minimum?

(a)

LIC

(b)

HDFC

(c)

IDBI FEDERAL

(d)

ICICI

(e)

Bharti AXA

(f)

Others

21. In your opinion which companys distribution channel is best?

(a)

LIC

(b)

Bharti AXA

(c)

HDFC

(d)

ICICI

(e)

IDBI Federal

(h)

Others

22. Which product of IDBI Federal Life Insurance Company is most profitable?
(a)

Income insurance

(b)

80

Wealth insurance

14.

BIBLIOGRAPHY & WEBLIOGRAPHY

MARKETING RESEARCH- By TULL and HAWKINS.

MARKETING MANAGEMENT- By PHILIP KOTLER
Company Magazines and Manuals.
Bogan, C.E. and English, M.J. (1994) - Benchmarking for Best

Practices: Winning through Innovative Adaptation.

Kotler, Philip & Keller, L. Kevin (2012)- Marketing Management 14e,
Pearson Education Limited 2012
Zikmund, W.G.; Babbin, Barry J.; Carr, Jon C. and Griffin, Mitch
(2013)- Business Research Methods, South-Western CENGAGE
Learning, USA.
Articles in a Newspaper
Brooks Peter (2011), Indian investors are less risk taking compared to
Hong Kong, Taiwan and Indonesia: Peter Brooks, Barclays Wealth,The
Economic Times.

81

www.google.com
www.wikipedia.org
www.yahoo.com/question-answer/
www.idbifederal.com
www.ageas.com
www.federal.com
www.irda.org
http://www.swissre.com/media/news_releases/Swiss_Re_sigma_study_on_wo

rld_insurance_in_2012_shows_premium_growth__resumed.html
http://www.idbifederal.com/Products/Healthsurance/Pages/What-isHealthsurance.aspx#
http://www.studymode.com/essays/Market-Segmentation-40523.html
http://en.wikipedia.org/wiki/Q_methodology

15.

CONCLUSION:

Summer training is a best example for a trainee to learn about the company working, corporate
culture under which he is operating the functions.
IDBI Federal Life Insurance Co. Ltd. is a life insurance company under which I gained a
significant knowledge with respect to life insurance, its importance and applicability as well as
undertook the task to research and compare with global markets which is conductive for the
company to grow with more prosperity.
What I taught in the management institute utilized them fruitfully leading to the best advantage
to the company and to the best experience for mine.
At far I can conclude that life insurance is a noble service which is very important for every
citizen to learn and realize its importance because this is the only source which can remain the
status where one is with the family bread earner and ever when he is not.
With the growing financial sector, I would like to choose this industry for my future career
advancement and as an opportunity to service this industry.

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