UNIVERSITY OF MUMBAI

A PROJECT REPORT ON
“LIFE INSURANCE”

SUBMITTED BY
MR. ROHIT DHANESHCHANDRA MISHRA
UNDER THE GUIDANCE OF
PROF. HARSHADA KALBHOR

BACHELOR OF COMMERCE
(BANKING AND INSURANCE)
(SEMESTER VI)

KHAR EDUCATION SOCIETY’S

COLLEGE OF COMMERCE AND ECONOMICS

2015-2016
 DECLARATION

I MR. ROHIT DHANESHCHANDRA MISHRA, student of

KHAR EDUCATION SOCIETY’S COLLEGE OF COMMERCE
AND ECONOMICS, B.COM (BANKING AND INSURANCES)
[SEMESTER VI] hereby declare that I have completed the project
title “LIFE INSURANCE” in the academic year 2015-2016
The information submitted here in is true and original to the best of
my knowledge.

DATE: - _____________________
MR. ROHIT MISHRA
 ACKNOWLEDGEMENT

Many people have played a part in making this project study a success
by giving their valuable inputs and useful suggestions.

Firstly I would express my gratitude to the University Of Mumbai for

providing me the opportunity to study the practical aspects of banking
and insurance

I am thankful to the Principal DR. NANDINI DESHMUKH for

giving me an opportunity to work on this project

I am also thankful to our Coordinator and my Project Guide PROF.

HARSHADA KALBHOR for her immeasurable encouragement and
support

I am also particularly grateful to my Project Guide PROF.

HARSHADA KALBHOR for extending her support and time.
 : EXECUTIVE SUMMARY :

Life insurance in its modern form came to India from England in 1818 with the formation of
Oriental Life Insurance Company. The Government of India nationalized the life insurance
industry in January 1956 by merging about 245 life insurance companies and forming Life
Insurance Corporation of India (LIC), which started functioning from 01.09.1956. For years
thereafter, insurance remained a monopoly of the public sector. It was only after seven years
of deliberation and debate that R. N. Malhotra Committee report of 1994 became the first
serious document calling for the re-opening up of the insurance sector to private players. The
sector was finally opened up to private players in 2001.The Insurance Regulatory and
Development Authority, an autonomous insurance regulator set up in 2000, has extensive
powers to oversee the insurance business and regulate in a manner that will safeguard the
interests of the insured. Insurance is a federal subject in India. There are two legislations that
govern the sector- The Insurance Act-1938 and the IRDA Act- 1999. The insurance sector in
India has come a full circle from being an open competitive market to nationalization and
back to a liberalized market again. The objectives of the study are to compare cost efficiency
and financial performance of Life Insurance Corporation of India and private sector life
insurance companies in India, to understand the concept and mechanism of insurance and to
predict the volume of new business and total premium of life insurance sector in India. The
study is divided into six chapters. The first chapter is introductory in nature and deals with
history of insurance, meaning and concept of insurance principles of insurance, functions of
insurance, importance of insurance, types of life insurance policies, features of life insurance
contract and duties, power and functions of IRDA. The second chapter deals with literature
review. Research Methodology is dealth with in the third chapter which includes research
statement, hypothesis, objectives of the study, tools and methods of v data analysis, scope and
limitations of the study. The fourth chapter describes profile of twenty two private life
insurance Companies and Life insurance corporation of India. The fifth chapter deals with
data analysis. Linear trend, percentage, ANOVA (one-way) and DEA method were used. The
sixth chapter gives the conclusion of the study and gives suggestions based on findings. Both
Life insurance density and penetration have increased from 2000-01 to 2009-10. The
prediction of new business and total premium for both private and public sector life insurance
companies in India for the year 2015 shows an upward trend. This signifies that there is a lot
of scope for life insurance sector to develop in India. The financial performance of Life
Insurance Corporation of India is better than private life insurance companies in India. The
private life insurance sector has nearly grabbed 30% of the market share in terms of total
premium income. LIC’s new business premium has fallen from 99.23% in 2000-01 to
65.08% in 2009-10. Unless Life Insurance Corporation of India is alive to the emerging
trends, its performance may decline further. Hence, Life Insurance Corporation of India has
to work with renewed vigor and enthusiasm so as to retain its market share. The findings
show a significant heterogeneity in the cost efficiency scores from 2000-01 to 2009-10.It can
be seen that Life Insurance Corporation of India has consistently secured a cost efficiency
score of 1 in all the years from 2000-01 to 2009-10 and scored the highest rank for all the
years under study. Thus Life Insurance Corporation of India has consistently been a cost
efficient organization. While in the case of the private life insurance companies, the cost
efficiency score has been inconsistent except for SBI Life insurance company which has
secured a cost efficiency score of 1 in seven years out of ten years.
 INDEX

SR.NO CONTENT Pg. NO

1. Introduction to life insurance

2. History of life insurance

3. Principles of life insurance

4. Advantages & disadvantages

5. Types of life insurance

6. Life insurance plans

7. When should you buy life insurance

8. How to find future expenses to get best life insurance

9. Steps in buying life insurance

10. Life insurance claims

11. Guidelines related to life insurance

12. Right kind of life insurance

13. Top ten companies of life insurance in india

14. Importance of life insurance

15. Conclusion

16. Bibliography & webliography