Professional Documents
Culture Documents
S
SS
SS
j
j
j
j
c
]
]
S S ! !
"#
g
"
$
$#
#
S
I would like to thank AVIVA Life Insurance India Ltd. for providing me with this unique
It has been a highly enriching experience to do my Internship at AVIVA Life Insurance India
Ltd. during the summers of 2010. It has been possible to achieve the perfect blend of the
valuable experience gained from the work place and the indispensable knowledge gathered
from there. My initial days at AVIVA Life Insurance India Ltd., has given me a new
India Ltd. for giving me this chance to work on this project and extending all support to
for guiding me throughout the project and providing me constant moral support & invaluable
feedback.
I would also like to thank entire team of AVIVALifeInsuranceIndiaLtd. who have been a
!
"#!$
ÿ
4
{
OBJECTIVE
I had made some extensive objectives for my study which are as listed below.
2. To find out the customers response towards Aviva Life Insurance Company.
3. To study the satisfaction level of customers in different attributes of Aviva Life Insurance
Company.
ë
<
S
%&! '
! ()
1. COMPANY PROFILE 7
3. RESEARCH METHODOLOGY 55
4. DATA ANALYSIS 62
5. FINDINGS 79
7. LIMITATION 86
8. CONCLUSION 88
9. GLAOSSARY 90
10. BIBLIOGRAPHY 96
11. ANNEXURE 98
m
S
Aviva is UK¶s largest and the world¶s fifth largest insurance Group. It is one of the leading
providers of life and pensions products to Europe and has substantial businesses elsewhere
around the world. With a history dating back to 1696, Aviva has a 35 million-customer base
In India, Aviva has a long history dating back to 1834. At the time of nationalisation it was the
largest foreign insurer in India in terms of the compensation paid by the Government of India.
Aviva was also the first foreign insurance company in India to set up its representative office
in 1995.
In India, Aviva has a joint venture with Dabur, one of India's oldest, and largest Group of
In accordance with the government regulations Aviva holds a 26 per cent stake in the joint
venture and the Dabur group holds the balance 74 per cent share.
With a strong sales force of over 12,000 Financial Planning Advisers (FPAs), Aviva has
initiated an innovative and differentiated sales approach to the business. Through the
³Financial Health Check´ (FHC) Aviva¶s sales force has been able to establish its credibility
in the market. The FHC is a free service administered by the FPAs for a need-based analysis
of the customer¶s long-term savings and insurance needs. Depending on the life stage and
c
earnings of the customer, the FHC assesses and recommends the right insurance product for
them.
Aviva pioneered the concept of Bancassurance in India, and has leveraged its global expertise
in Bancassurance successfully in India. Currently, Aviva has Bancassurance tie-ups with ABN
Amro Bank, American Express Bank, Canara Bank, Centurion Bank of Punjab, The Lakshmi
Vilas Bank Ltd. and Punjab & Sind Bank, 15 Co-operative Banks in Gujarat, Rajasthan,
Jammu & Kashmir, Bihar, West Bengal and Maharashtra and one regional Bank in Sikkim.
When Aviva entered the market, most companies were offering traditional life products. Aviva
started by offering the more modern Unit Linked and Unitised With Profit products to the
customers, creating a unique differentiation. Aviva¶s products have been designed in a manner
to provide customers flexibility, transparency and value for money. It has been among the first
companies to introduce the more modern Unit Linked Products in the market. Its products
include: whole life (Life Long), endowment (Life Saver, Easy Life Plus), and child policy
(Young Achiever) single premium (Life Bond and Life Bond Plus), Pension (Pension Plus),
Term (Life Shield), fixed term protection plan (Freedom Life Plan) and a tax efficient
investment plan with limited premium payment term (LifeBond5). Aviva products are modern
and contemporary unitised products that offer unique customer benefits like flexibility to
Aviva¶s Fund management operation is one of its key differentiators. Operating from Mumbai,
Aviva has an experienced team of fund managers and the range of fund options includes
cc
Unitised With-Profits Fund and four Unit Linked funds: - Protector Fund, Secure Fund,
Aviva has 112 Branches in India (including rural branches) supporting its distribution
network. Through its Bancassurance partner locations, Aviva products are available in 378
Aviva is also keen to reach out to the underprivileged that have not had access to insurance so
far. Through its association with Basix (a micro financial institution) and other NGOs, it has
been able to reach the weaker sections of the society and provide life insurance to them.
For three consecutive years in 2007, 2008 and 2009, Aviva has had relatively high scores on
the parameters of Credibility, Respect, Fairness, Pride and Camaraderie in the survey
administered by Grow Talent Company Ltd. along with Great Places to Work® Institute, Inc.
c]
c
WHO IS AVIVA
S
A professionally managed company, it is the country's leading producer of Founded in 1884,
Dabur is one of India's oldest and largest group of companies with consolidated
SS
Aviva is UK¶s largest and the world¶s fifth largest insurance Group. It is one of the leading
providers of life and pensions products to Europe and has substantial businesses elsewhere
around the world. With a history dating back to 1696, Aviva has a 35 million-customer base
Aviva - where exceeding expectations through innovative solutions is "the" way of life This is
the compelling vision that Aviva India has created through the active contribution of its
employees. These lines not only define the way we live and work but also serve as a reminder
to deliver the best to our customers, shareholders, colleagues, partners & employees at all
times.
Embedded in this vision are the core values of Integrity, Customer centricity, Passion for
winning, Innovation and Empowered team that we have collectively defined and committed to
working towards.
cÿ
PARTNERS
Aviva is committed to helping our customers get 'Kal par Control' and make the most out of
their lives. It is the constant endeavour to ensure that our customers have easy access to Aviva
Aviva has pioneered bancassurance in the country through its tie-ups with 22 leading private
and nationalised Banks in the country. Aviva also focuses on bancassurance worldwide and
c{
partnerships with leading banks across the globe. Aviva is a leading bancassurer in countries
consumer and commercial banking gaining a competitive edge on the chosen markets and
client segments. ABN AMRO Bank (India) ventured into the Indian market in 1920 primarily
to finance the diamond trading business and evolved by mid 1990¶s into a fastest growing
The Bank is recognized as one of the most successful consumer banking outfits in the county,
known for its innovation and aggression. ABN India consumer banking pioneered the
distribution of third party financial products like mutual funds, bonds and life insurance.
Aviva's relationship with ABN India commenced in June 2002 under which the bank
introduces its customers to Aviva for insurance and provides access to its affluent customer
cë
American Express Bank
American Express Company is a diversified worldwide travel and financial services company
founded in 1850. It is the world¶s largest single card issuer, based on purchase volume
generated of nearly 55 million cards worldwide. Present in India since 1921, American
Express provides high quality travel related and financial services in India.
Aviva Life Insurance entered into a strategic alliance with American Express for distribution
of Life Insurance in June 2002 to offer top-of the line saving-cum-protection plans to Amex
Aviva offers tailor-made investment solutions to the high net worth clients of the Wealth
Management channel. The retail card segment is being tapped through outbound calling to the
Amex cardholders. The American Express Inbound call center also pitches Aviva products to
its callers.
The Lakshmi Vilas Bank Ltd, based out of Karur, is among the top private banks in India. It
has 221 branches with a customer base of 1.2 million, across 10 states. Currently Aviva
c<
C B i one of t e l est ret il banks in India wit 2,513 branches spread across 25
States and 4 Union Territories. The customer base of Canara Bank exceeds 27 million. With a
net profit of INR 1110 Crores, deposits of over INR 96,908 Crores, 47389 employees for the
year ending Mar 2009, Canara Bank is truly a Bank to be reckoned with for the sheer
magnitude of coverage it offers its clients. Canara Bank has tied up with Aviva as a Corporate
Agent for its Life Insurance Products. Aviva products are currently offered in 1030 Canara
Punjab & Sind Bank was established in the year 1908. Based on the principles of social
commitment to the people, help the farmers, and the weaker sections of the society to raise
their standard of living and play a significant role in the development of the country. Even
after 96 years of its inception, Punjab & Sind Bank stands committed to honor the high ideals
of its founding fathers. Punjab and Sindh Bank has a network of 759 branches and 132
extension counters all over the country with close to 9,765 employees. 42 per cent of its
In line with spirit of liberalisation the Bank has laid special emphasis on International banking,
c
6ire purchase, Leasing, Tele-banking and Credit card facilities. The bank has also started their
cm
Tech Agricultural Branches, Specialised Locker Branches, Industrial Finance and SSI
branches, besides Housing Finance Branch for the convenience of its customers.
retail and corporate banking products and services. It holds leadership positions in retail two-
wheeler loans and commercial vehicle loans. It has been among the earliest banks to offer a
technology-enabled customer interface that provides easy access and superior customer
service.
RBI has approved the merger between Centurion Bank and Bank of Punjab effective from
October 1st, 2005. The merged entity, named Centurion Bank of Punjab, has a strong
nationwide franchise of 241 branches and extension counters and 389 ATMs. With strengths
in the retail, SME and agriculture businesses the bank is well poised to capture the
opportunities that exist in the Indian market. The combined bank¶s 3,500 employees will
continue to provide support and an enhanced banking experience to our customers, as part of a
bigger, stronger bank. ³Aviva¶s key strength is its fund management capabilities with an
The much-awaited correction finally materialised in the quarter ended June 2006. The BSE
Sensex, which peaked at 12612 levels on 10th May 2006, has corrected to around 10000
levels. After three years of sustained Bull Run, the recent correction has been a timely
reminder that the markets, in the short term, may see downsides too. Compared to the rise in
]
]c
the market, the downtrend has not been very large though it has been quicker than
expectations. Even post this 20% or so correction from its peak, the Sensex is up 12.9% year
to date. This much-needed correction has weeded out some of the euphoria and the focus on
value is back. Does this correction reflect any change in the key fundamentals of India? We
do not think so. The three-year rally was in the first place due to appreciation of India¶s
sustainable growth story. The second reason was an improvement in the global liquidity as
investor¶s appetite for risk iSriganganagareased. The India growth story remains intact and
the GDP growth in the last few quarters is an evidence of this. We expect GDP to grow by
investment destination. The major reason for the correction has been liquidity moving out of
the markets. This has been caused by fall in the commodity prices from their peak, rising
global interest rates and high crude prices causing worries about inflation and a global
meltdown. With the tightening of global liquidity and reduced risk appetite of investors,
there have been outflows from emerging markets including India. Secondly, valuations in
India were among the highest in emerging markets and hence witnessed a greater
compression. One of the major fears globally is that of a slowing economy in the US
and China. India is highly resilient to global meltdowns as private consumption accounts
population and improved disposable income in the hands of the consumer, this resilience
will only improve. This coupled with superior growth and demographics will drive flows back
to India in the long term. In the short term, the markets could continue to witness volatility as
the direction would be determined by global liquidity, progress of monsoons and the
2006. We believe, for the long-term investor, this correction would provide a good opportunity
]]
to participate in the India growth story. However, expectations of returns from equity should
FIXED INCOME
Is virtuous cycle turning vicious? Inflation has touched one year high of 5.44%, and INR has
touched 2 year low of 46.04. Aligning with these movements, yield on benchmark 10 year
Government Bond also went up to a four year high of 8.10%. The latest balance of payments
numbers for 2005-06 show an overall balance of $15 bn, helped by a less-than-expected deficit
on the current account ($10.6 bn). This was essentially due to strong invisibles (private
remittance and net software exports) providing cover for a trade deficit, which was itself
moderated by a strong 28% y-o-y growth in exports. Net inflows on the capital account stood
at $24.7 bn with $5.7 bn coming from net FDI and $12.5 bn being accounted for by portfolio
inflows. Though headline inflation recently has picked up with prices of food and non food
articles in the µprimary goods¶ category rising, the government has taken short-term measures
in the form of liberalizing imports of wheat and sugar and banning exports of pulses in order
to ease the supply situation. Core inflation, that is, excluding the more volatile primary and
fuel categories, has picked up a bit in comparison to last year. However it is expected to
remain in a manageable range. RBI seems committed to containing inflation and would thus
expectations and in response to various central banks hiking rates globally. This has led to a
few banks raising lending rates in addition to getting reflected in the money and bond
markets. GDP growth for 2007-08 came in at a better than expected 8.4%, propped up
by improved agriculture performance. For 2008-09 also, despite inflationary pressures, the
GDP is expected to grow at over 7%. Going forward, monetary tightness will weigh on the
S,-(' ./00 1! ' (, in the ancient land of Babylonia, traders used to bear risk of the
caravan trade by giving loans that had to be later repaid with interest when the goods arrived
safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice that, perhaps,
Life insurance had its origins in ancient Rome, where citizens formed burial clubs that would
meet the funeral expenses of its members as well as help survivors by making some payments.
As European civilization progressed, its social institutions and welfare practices also got more
and more refined. With the discovery of new lands, sea routes and the consequent growth in
trade, Medieval guilds took it upon themselves to protect their member traders from loss on
Since most of the trade took place by sea, there was also the fear of pirates. So these guilds
even offered ransom for members held captive by pirates. Burial expenses and support in
times of sickness and poverty were other services offered. Essentially, all these revolved
around the concept of insurance or risk coverage. That's how old these concepts are, really.
]ÿ
In 1347, in Genoa, European maritime nations entered into the earliest known insurance
Insurance as we know it today owes its existence to 17th century England. In fact, it began
taking shape in 1688 at a rather interesting place called Lloyd's Coffee 6ouse in London,
where merchants, ship-owners and underwriters met to discuss and transact business. By the
end of the 18th century, Lloyd's had brewed enough business to become one of the first
Back to the 17th century. In 1693, astronomer Edmond 6alley constructed the first mortality
table to provide a link between the life insurance premium and the average life spans based on
statistical laws of mortality and compound interest. In 1756, Joseph Dodson reworked the
"#
The first stock companies to get into the business of insurance were chartered in England in
1720. The year 1735 saw the birth of the first insurance company in the American colonies in
Charleston, SC. In 1759, the Presbyterian Synod of Philadelphia sponsored the first life
insurance corporation in America for the benefit of ministers and their dependents. 6owever,
it was after 1840 that life insurance really took off in a big way. The trigger: reducing
The 19th century saw huge developments in the field of insurance, with newer products being
devised to meet the growing needs of urbani ation and industriali ation. In 1835, the infamous
]{
New York fire drew people's attention to the need to provide for sudden and large losses. Two
years later, Massachusetts became the first state to require companies by law to maintain such
reserves. The great Chicago fire of 1871 further emphasi ed how fires can cause huge losses
in densely populated modern cities. The practice of reinsurance, wherein the risks are spread
There were more offshoots of the process of industriali ation. In 1897, the British government
passed the Workmen's Compensation Act, which made it mandatory for a company to insure
its employees against industrial accidents.With the advent of the automobile, public liability
insurance, which first made its appearance in the 1880s, gained importance and acceptance.
In the 19th century, many societies were founded to insure the life and health of their
Even today, such fraternal orders continue to provide insurance coverage to members as do
most labour organi ations. Many employers sponsor group insurance policies for their
employees, providing not just life insurance, but sickness and accident benefits and old-age
pensions. Employees contribute a certain percentage of the premium for these policies.
&&
Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of
Life Insurance Corporation of India's corporate headquarters, is derived from the Rig Veda.
The term suggests that a form of "community insurance" was prevalent around 1000 BC and
practised by the Aryans.Burial societies of the kind found in ancient Rome were formed in the
]ë
Buddhist period to help families build houses, protect widows and children.
Bombay Mutual Assurance Society, the first Indian life assurance society, was formed in
1870. Other companies like Oriental, Bharat and Empire of India were also set up in the 1870-
90s. It was during the swadeshi movement in the early 20th century that insurance witnessed a
big boom in India with several more companies being set up.
1950s, there were around 170 insurance companies and 80 provident fund societies in the
country's life insurance scene. However, in the absence of regulatory systems, scams and
As a result, the government decided nationalise the life assurance business in India. The Life
Insurance Corporation of India was set up in 1956 to take over around 250 life companies. For
years thereafter, insurance remained a monopoly of the public sector. It was only after seven
years of deliberation and debate - after the RN Malhotra Committee report of 1994 became the
first serious document calling for the re-opening up of the insurance sector to private players --
The Insurance Regulatory & 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 may be described as a social device to reduce or eliminate risk of loss to life and
property. Insurance is a collective bearing of risk. Insurance spreads the risks and losses of few
people among a large number of people as people prefer small fixed liability instead of big
Insurance can be defined as a legal contract between two parties whereby one party called
insurer undertakes to pay a fixed amount of money on the happening of a particular event,
which may be certain or uncertain. The other party called insured pays in exchange a fixed
sum known as premium. The insurer and the insured are also known as Assured, or
Underwriter, and Assured, respectively. The document which embodies the contract is called
the policy.
i)
+&, (* -(' ((# *%2 It means maximum truth. All material information
regarding the subject matter of insurance should be disclosed by both the parties- the
insurer and the insured. This duty of full disclosure rests more heavily on the insured than
the insurer. The insurer has a right to avoid the contract if the insured fails to make the full
disclosure.
ii)
+&,! (* #!-1: This means that if the insured suffers a loss against which the
policy has been made, he shall be fully indemnified only to the extent of loss. In other
]
words, the insured is not entitled to make a profit on his loss.
iii) (+ ! (* '3 ((: This means the insurer has the right to stand in the place of the
insured after settlement of claims in so far as the insured right of recovery from an
alternative source is involved. The purposes of subrogation are to hold the negligent third
party any loss payments made to the insured. The purposes of subrogation are to hold the
negligent persons responsible for the loss and prevent the insured from collecting twice for
iv)
+&,! (* +'! & (4-2 The cause of loss must be direct and an insured one in order
v)
+&,! (* ' 3,! ! !'2 The life or property insured. Insurable interest is that
interest which considerably alters the position of the assured in the event of loss taking
place and if the event does not take place, he remains in the same old position. One who
has to lose as a result of loss may be said to have insurable interest in the life or property
insured. If this principle is absent, the insurance contract degenerates into a wagering
contract. It is taken as given that an individual has insurable interest in his\her own life or
property. Cases where no proof of insurable interest is required are that of a husband¶s
interest in his wife¶s life and wife¶s interest in her husband¶s life. In cases of business and
A Life insurance
A General insurance
]m
WHAT IS LIFE INSURANCE?
Life insurance is a contract for payment of money to the person assured (or to the person
entitled to receive the same) on the occurrence of the event insured against.
occurs earlier.
Periodical payment of insurance premium by the assured, to the corporation who provides the
insurance.
Any person above 18 years of age, who is eligible to enter into a valid contract,
Subject to certain conditions, a policy can be taken on the life of a spouse or children.
When most people think of life insurance, they think of a traditional whole life policy. These
are the simplest policies to understand: You pay a fixed premium every year based on your
age and other factors, you earn interest on the policy's cash value as the years roll by, and your
insurance policies are valuable because they provide permanent protection and accumulate
cash values that can be used for emergencies or to meet specific objectives. The surrender
value gives you an extra source of retirement money if you need it.
Unlike whole life, an endowment life insurance policy is designed primarily to provide a
living benefit and only secondarily to provide life insurance protection. Therefore, it is more
of an investment than a whole life policy. Endowment life insurance pays the face value of the
policy either at the insured's death or at a certain age or after a number of years of premium
payment.
Endowment life insurance is a method of accumulating capital for a specific purpose and
protecting this savings program against the saver's premature death. Many investors use
endowment life insurance to fund anticipated financial needs, such as college education or
retirement. Premium for an endowment life policy is much higher than those for a whole life
policy.
c
This is basically an endowment policy for which a part of the sum assured is paid to the
policyholder in the form of survival benefits, at fixed intervals, before the maturity date. The
risk cover on the life continues for the full sum assured even after payment of survival benefits
and bonus is also calculated on the full sum assured. If the policyholder survives till the end of
the policy term, the survival benefits are deducted from the maturity value.
S
Life insurance is designed to protect you and your family against financial uncertainties that
may result due to unfortunate demise or illness. You can also view it as a comprehensive
financial instrument ± as a part of your financial planning offering you savings & investment
facilities along with cover against financial loss. By choosing the right policy as per your
needs i.e. customized solutions, you will be able to plan for a secure future for yourself and
Identifying the right plan basis your needs is the first crucial step towards insurance planning.
At aviva we help you through this decision by identifying your various needs and offering
plans that are customized for you. You may also choose a plan for yourself by
]
, '$
!",,"%$""" ,,, ()
""
*#
*$
"
Once you have analyzed your needs as per above classification, you need to then ascertain
important factors such as type of cover, insurance amount as per one's income, life stage and
dependents
*
1. To spread life insurance and provide life insurance protection to the masses at
reasonable cost.
3. To invest the funds to serve the best interests of both the policy holders and the nation.
4. To conduct business with maximum economy, always remembering that the money
5. To act as trustees of the policy holders and protect their individual and collective
interests.
"
General (non-life) insurance provides a short-term coverage, usually for a period of one
year. General insurers transact fire insurance, motor insurance, marine insurance, and
miscellaneous insurance business. Among these categories fire and motor insurance
business are predominant. Motor vehicle insurance is compulsory in India and the motor
insurance industry. Moreover, motor insurance due to third party liability claims has
", "
(-
Fire Insurance is a comprehensive policy which covers loss on account of fire, earth
quake, riots, floods, strikes, and malicious intent. It can be taken only by the owner of the
premises to be insured.
""()The coverage is :
In motor insurance, the rates were revised. Upwards twice, once in 1982 and then
in1990 as the high cost of repairs coupled with third party claims had adversely affect the
insured loss ratio. Motor insurance is Mandatory leading to good amount of premium
collection but it is not being fancied upon as it could lead to litigation problem.
a. C a r g o in Transit.
b. C a r g o Declaration policy.
Vessels, fishing and scaling vessels, freight at risk, construction of ships, voyage insurance
ÿ
of various vessels, ship breaking insurance,oil and energy in respect of onshore and
agriculture, hut, other livestock. Besides the traditional products, general insurers introduced
longer-term contracts such as deferred health insurance and project insurance erection risk
Life Insurance to the rural areas and to the Socially and economically backward classes
with a view to reach all insurable persons in the country and providing them adequate
2. Conduct business with utmost economy and with the full realization that the money to
the public.
3. Meet the various life insurance need of the community that would arise in the changing
adequately attractive.
5. Involve all people working in the corporation to the best of their capability in
furthering the interests of the insurance public by providing efficient service with
{
courtesy.
6. Bear in mind, the investment of funds, the primary obligation to its policy holders,
whose money it holder in trust, without losing sight of the interest of the community 29
ë
community as whole, keeping in view national as well as the community attractive
return.
Relief in income tax is available for amount paid by way of premium for life insurance.
investment qualifying for rebate viz. insurance premia, premium paid toward annuity
plans for life insurance are specified under section 88(2) of the income tax Act.
(2) *!1:
the police holder. In life insurance, on death, the full sum assured is payable (with
bonuses wherever applicable) whereas in other saving scheme, only the amount (saved
(3) >#12
Loans can be raised on sole security of the policy which has acquired a paid-up
value. Besides, a Life Insurance policy is also generally accepted as security for even a
Life Insurance encourages µthrift¶ Long term saving can be made in a relatively
painless manner because of µeasy installment facility¶ (Premium can be made through
<
popularly known as SSS provide a convenient method if paying premium each month
through deduction from one¶s salary. The salary saving scheme can be introduced in
specific needs that are likely to arise in future such as children¶s education, start in-life
or marriage provision or even periodical needs for cash ones a predetermined stretch of
tine. Alternatively, policy money can be so arranged to be used for other investments
subject to certain conditions, loans are granted to policy holders for house or for
purchase of flats.
The security is the prime motivating factor. The security ends the tension and finally leads to
peace to mind.
At the death of husband or the father or any lead person, the family would suffer a lot. The
insurance is here to assist then like to provide adequate amount at the time of suffering. The
\\\
In most of the life policies, element of saving is predominant, this policies combine of
programme of Insurance and saving. Saving with insurance has certain extra advantage.
For the growth of the country insurance provides string hand and mid to protect against
loss of death. From the insurance government get more financial resource and utilize
Aviva
Bajaj Allianz
ICICI prudential
m
ING vysya
Metlife India
Om Kotak Mahindra
Reliance life insurance
Tata AIG
SS
The life insurance joint venture company between Dabur india and the Aviva UK.
Dabur is one of the India¶s oldest and largest group of companies with consolidated Annual
products.
Aviva Plc is UK¶s largest and the world¶s fifth largest insurance group. It is one of the leading
providers of life & pension products to Europe and has substantial business elsewhere around
the world.
::S,,=
Bajaj Allianz Life Insurance co. Ltd. Is a joint venture between Allianz AG, and Bajaj Auto,
one of the biggest 2 & 3 wheeler manufacturer in the world. Bajaj Auto Ltd, the Flagship
Company of the Rs. 8000 crores Bajaj group is the largest manufacturer of two-wheelers and
ÿ
S,,=
Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000
employees. At the top of the holding company, Allianz AG, with its head office in Munich.
1'1
ING Vysya Life Insurance company private Limited entered the private life insurance
industry in India in September 2001, and in a short span pf 3 years has established itself as a
distinctive Life insurance brand with an innovative, attractive and customer friendly product
portfolio and a professional advisor force. It also distributes products in close cooperation with
Birla sun Life Insurance is the coming together of the Aditya Birla group & Sun Life Financial
of Canada to enter the Indian insurance sector. The Aditya Birla Group, a multinational
conglomerate has over 75 business units in India and Overseas with operations in Canada, US,
Sun life assurance, sun life financials primary insurance business, has excellent rating with the
world¶s top rating agencies. With assets under management as on September 30, 2000 totaling
more than CDN billion, it ranks amongst the largest international financial service
ÿc
organizations in the world.
S
International Holdings, inc. Jammu & Kashmir Bank, M Pallonji & Co and other private
investors. MetLife India is headquartered in Bangalore with offices and presence in major
Indian cities, and an additional 1000 outreach points through its channel partner.
#!, *! ' +!
ICICI Prudential Life insurance is a joint venture between the ICICI group and Prudential Plc,
of the UK. ICICI standard off its operation in 1955 with providing finance for industrial
development, and since then it has diversified into housing finance, consumer finance , mutual
funds to being a Universal Bank and its latest venture Life insurance.
Foreign Partner
Established in 1848, Prudential plc. Of U.K has grown to be the largest life insurance and
mutual fund Company in U.K. Prudential plc. Has had its presence in Asia for the past 75
years catering to over 1 million customers across 11 Asian countries. Prudential is the largest
ICICI and prudential came together in 1993 to provide mutual fund product in India and
today are the largest private sector mutual fund company in India.
ÿ]
Their largest venture ICICI Prudential Life plans to take care of the insurance needs at various
stages of life.
SB
Max India Limited is a multi-business corporation that has business interest in telecom
service, bulk pharmaceuticals, electronic components and specialty products. It is also the
!6 ( 7 *!
New York Life has grown to be a fortune 100 company and an expert in life insurance. It
was the first insurance company to offer cash dividends to policy owners. In 1894, New York
Life pioneered then unheard-of-concept of insuring women at the same rate as men.
unemployment insurance in 1992 and complete customer care of the web in 1998.
Today New York Life has over US billion in assets under management and over 30,000
agents and employees worldwide. The October 2000 fortune survey named New York Life
amongst the top three most admired life and health insurance companies worldwide. With
over 3 million policyholders, New York Life is a leading provider of insurance in a host of
countries worldwide.
ÿ
The Life insurance Corporation was established about 44 years ago with a view to provide
an insurance cover against various risks in life. A monolith then, the corporation, enjoyed a
Its main asset is its staff strength of 1.24 lakh employed and 2,048 branches and Over
six lakh agency force.LIC has hundred divisional offices and has established extensive
training facility. At all levels, At the apex, is the Management Development Institute, seven
At the industry level, along with the Government and the GIC, it has helped establish the
group Insurance business, social security schemes and Pensions, grants housing loans
through its subsidiary and markets savings and Investment products through its mutual fund.
ÿÿ
Established in 1985 as Kotak capital management finance promoted by Uday kotak the
company has come a long way since its entry into corporate finance. It has dabbled in leasing,
auto finance, hire purchase, investment banking, consumer finance, broking etc. the company
got its name Kotak Mahindra as industrialists Harish and Anand Mahindra picked a stake in
the company. Kotak mahindra is today one of India¶s leading Financial institute.
,28
Old mutual plc is an international Financial service group in london with expanding operations
in life assurance, asset management, banking and general insurance. OLD Mutual is listed on
the London Stock Exchange and also on the south-African, Namibian, Malawi, and Zimbabwe
OM Kotak Mahindra is the coming together of Kotak Mahindra Finance Ltd. and Old Mutual
plc to enter the Indian insurance arena to offer a wide rang of innovative life insurance
products.
Anil Dhirubhai Ambani Group. Reliance Capital is one of India¶s leading private sector
Financial services Companies, and ranks among the top 3 private sector financial services and
banking companies, in terms of net worth. Reliance capital has interests in asset management
ÿ{
and mutual funds, stock broking, life and general insurance, proprietary investments, private
equity and other activities in financial services. Reliance Capital Ltd is a Non-Banking
Financial company (NBFT) registered with the Reserve Bank Of India under section 45-1A of
the Reserve Bank of India Act, 1934.Reliance Capital sees immense Potential in the rapidly
growing Financial service sector in India And aims to become a dominant player in this
Industry and offer fully integrated financial services. Reliance Life Insurance is another step
forward for Reliance Capital Ltd to offer need based Life Insurance solution to individual and
corporate.
SBI Life Insurance Company Ltd is a joint venture between India¶s largest bank, State Bank
State bank of India is a household name, and it stands as the last world for financial strength
and security in the country. SBI¶s background dates back to the year 1806 when it started
business, as a presidency bank, known as bank of Bengal. Over the long journey, it has learnt
to combine the best of banking practices handed down from the imperial management with the
more Dynamic ways of doing banking in the modern India. It has grown as a responsible giant
in the banking field over the years. Cardiff came into being in the year 1973. Since then it has
grown into a vibrant insurance company specializing in personal lines such as long-term
saving, protection products and creditor insurance. Cardiff had a premium income of over US$
4 billion in 1999. And more than US$ 23 billion of funds under its management. Cardiff has
been specializing in the art of selling insurance products through Commercial bank in France
SBI Life Insurance Company Ltd is registered as a life Insurance Company with the Insurance
Regulatory & Development Authority of India and has been issued License number 111 on
ÿë
ÿ<
29th March 2001. the Company¶s authorized capital is Rs. 250 crore, and the paid up
capital at present Is Rs.125 crore. SBI owns 74% of the total equity , and Cardiff the balance
26%.
SS S
The TATA AIG joint venture is a tie up between the established Tata Group and
American International Group Inc. The TATA Group is one of the largest and most
respected industrial houses in the country, while AIG is a leading US based insurance
and financial service company with a presence in over 130 countries and jurisdiction around
the world.
S S
S3( %! S
As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority
(IRDA, which was constituted by an act of parliament) specify the composition of Authority
ÿ
The Authority is a ten member team consisting of
(a) A Chairman;
!'
(6! ' # +(' (*
S
Section 14 of IRDA Act, 1999 lays down the duties, powers and functions
of
IRDA
.
(1) 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
(2) Without prejudice to the generality of the provisions contained in sub-section (1),
(a) issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or
(b) protection of the interests of the policy holders in matters concerning assigning of
surrender value of policy and other terms and conditions of contracts of insurance;
(c) specifying requisite qualifications, code of conduct and practical training for
ÿm
(d) Specifying the code ofconduct for surveyors and loss
insurance business;
(f) promoting and regulating professional organisations connected with the insurance and
(g) Levying fees and other charges for carrying out the purposes of this Act;
(h) Calling for information from, undertaking inspection of, conducting enquiries and
(i) control and regulation of the rates, advantages, terms and conditions that may be 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); (j) 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
companies;
(o) Specifying the percentage of premium income of the insurer to finance schemes
(p) Specifying the percentage of life insurance business and general insurance business to
{c
{]
S
systematic search for pertinent information on a specific topic, infect research is an art of
various steps that are generally adopted by researchers in studying their research problem. It is
necessary for researchers to know not only know research method techniques but also
technology.
The research problem consists of series of closely related activities. At times, the first step
determines the native of the last step to be undertaken. Why a research has been defined, what
data has been collected and what a particular methods have been adopted and a host of similar
other questions are usually answered when we talk of research methodology concerning a
research problem or study. The project is a study where focus is on the following points:
S
acquiring the Information needed. It is a plant or organizing framework for doing the study
and collecting the data. Designing a research plan requires decisions all the data sources,
1. Exploratory research.
2. Descriptive studies
3. Casual studies
B
S S
The major purposes of exploratory studies are the identification of problems, the
more precise Formulation of problems and the formulations of new alternative courses of
action. The design of exploratory studies is characterized by a great amount of flexibility and
ad-hoc veracity.
amount about the research problem. Perhaps as a Result of an exploratory study, before the
design.
SS B
S
A casual design investigates the cause and effect relationships between two or
more variables. The hypothesis is tested and the experiment is done. There are following types
of casual designs:
44
{{
IV. Four groups, six studies design
Research Institute
! (# (* #12
This study has been carried out for a maximum period of 8 weeks.
S ! (* '#1: The study is exclusively done in the area of marketing. It is a process requiring
care, sophistication, experience, business judgment, and imagination for which there can be no
{ë
45
{<
-&,
!': The random sampling is done because any probability sampling procedure
would require detailed information about the universe, which is not easily available further, it
-&,!
(+!# !: In this study ³random sampling procedure is used. Random sampling is
preferred because of some limitation and the complexity. Area sampling is used in
combination with random sampling so as to collect the data from different regions of the city
(33,1-&,
It is also known as random sampling. Here, every item of the universe has an equal chance or
-&,!#(--&,
A simple random sample gives each member of the population an equal chance of being
chosen. It is not a haphazard sample as some people think! One way of achieving a simple
random sample is to number each element in the sampling frame (e.g. give everyone on the
Electoral register a number) and then use random numbers to select the required sample.
{
46
{m
Random numbers can be obtained using your calculator, a spreadsheet, printed tables of
random numbers, or by the more traditional methods of drawing slips of paper from a hat,
This is random sampling with a system! From the sampling frame, a starting point is chosen
With stratified random sampling, the population is first divided into a number of parts or
'strata' according to some characteristic, chosen to be related to the major variables being
studied. For this survey, the variable of interest is the citizen's attitude to the redevelopment
scheme, and the stratification factor will be the values of the respondents' homes. This factor
was chosen because it seems reasonable to suppose that it will be related to people's attitudes
,'! E S ! -&,
Cluster sampling is a sampling technique used when "natural" groupings are evident in a
statistical population. It is often used in marketing research. In this technique, the total
population is divided into these groups (or clusters) and a sample of the groups is selected.
Then the required information is collected from the elements within each selected group. This
may be done for every element in these groups or a subsample of elements may be selected
ë
within each of these groups.
47
ëc
(
(33,1 -&,
It is also known as deliberate or purposive or judge mental sampling. In this type of sampling,
every item in the universe does not have an equal, chance of being included in a sample.
It is of following type:
(;!!+! -&,
A convenience sample chooses the individuals that are easiest to reach or sampling that is
done easy. Convenience sampling does not represent the entire population so it is considered
bias.
( -&,
In quota sampling the selection of the sample is made by the interviewer, who has been given
F#-! -&,
(,,!+( : -
Data is collected from various customers through personal interaction. Specific questionnaire
is prepared for colleting data. Data is collected with mere interaction and formal discussion
with different respondents and we collect data in Aviva Life Insurance Company India Ltd.
ë]
48
ë
and face to face contact with the persons from whom the information is to be obtained (known
as informants). The interviewer asks them questions pertaining to the survey and collects the
desired information. Thus, the we collect data about the working conditions of the workers of
Aviva Life Insurance Company India Ltd.; we worked at Aviva Life Insurance Company India
Ltd. and contact the workers and obtain the information. The information obtained are first
ëÿ
49
ë{
S
C .
SS SS
ëë
50
ë<
SS SS
c
c(&
&
'
&' ' )
(
ë
51
ëm
)G) !'&(#! +(-! (& "&! 1! $
]& c
*
c
c ]
&&
] +]
<
52
<c
)D) !'&(#!H'
(*!''(
] ]]
*
,
&c ]
<]
53
<
) .) S ! 1( 6 ! 3( ,*! ' +!5
&
-
.
'&
<ÿ
54
<{
) /) (6 -1 -3! ' (* +(-&!' ,*! ' +! ! 1( 6 ! (*5
c(
]
/
0
]c 0
1
&
<ë
56
<<
)?)
( 1( 7(6 3( SS S5
&&
-
.
'
<
57
<m
)@) ( +!' (* 6 !!'' (* SS S5
]
&c
"
2 ! #$ %#&#'
0 $#'! ( $(#
*
0 )& &#&+#$
03 ,24%4%2
c
]&
58
c
) I)
( 1( %;! 1 ,*! ' +! &(,+1 1 +(-&15
]
-.
-
/
.
&
]
59
)A)
( 1( %;! 1 ,*! ' +! &(,+1 SS S5
&]
-01
.2
'(
ÿ
60
{
)<0) %+% 1&! (* ,*! ' +! &(,+1 #( 1( %;!5
c&
]&
, 34 56 47, 87
, 579 47,87
:
%7 59 ;57 ,87
&& :
8 7<,87
&c
ë
61
<
)<<) S ! 1( ''*!# 6% SS S
,'5
c]
] ==> = ?@
5
2
A?B>C?
]' > = ?@
CD E > = ?@
6
&&
62
m
)<G) S ! 1( ''*!# 6% +'(-! '! ;+!' ;! 31 %! SS
S5
]&
FFG F
5 HI
J G
&& 2 HK LH
G F
HI
MN G F
6L HI
&
m
63
mc
) <.)
( 1( 7(6 3( 1 )) (* SS S5
](
O
- P
Q
.
]
m]
64
m
)</) %1 #( 1( ;!' ,*! ' +!5
UV
0 RSS T RWXS
]]
](
0 RS YWXT ZXY
[ \\
0 RST X SX
\
SX SY
[
] 0 RS ]^XYX T
]c
mÿ
66
m{
S
C /
më
67
m<
After analyzing and interpreting the collected data. The findings are as under.
1.
2
a. ,,1&(%!'':
The null hypothesis is rejected because the result of survey in areas
insurance sector then our assumption, i.e. more than 80% of people are
S,! !1&(%!''2
The alternate assumption was right. According to this peoples are more
3) ,,1&(%!''2
Null hypothesis is rejected because it says that ³Most of the population
S,! !1&(%!''2
Alternate hypothesis is accepted; because it says that 70% population which has
The people who know about the IRDA these are mostly professional
like as
m
While interacting with people of rural areas I found that a large portion of
Till today people do not have a right concept about insurance sector, they relate it with
Although a big percentage of population is aware about the private insurance companies.
Out of which only 70% are aware about an AVIVA life insurance company.
The people who have the life insurance policy of any company their percentage is very
high it is 69% and only 31% people in SRIGANGANAGAR don¶t have any type
In the SRIGANGANAGAR there are percentage of people who know the AVIVA is very
high but ratio of people have the life insurance policy are very low only 19% of
people have the policy of AVIVA and rest 81% don¶t have the policy of AVIVA
50% of the surveyed people have satisfied perception regarding AVIVA, while 29% have
mm
69
c
S
C ?
S S
cc
70
c]
S E
Followings are the recommendations and the suggestions not only for the Aviva life
insurance company but also for other private life insurance companies if the want
1+ !
(';! -!
Private companies should try their level best to create positive and favorable image in the
³Customer is a king´. In formal words we can say that if can customers more loyal towards
the company.
c
71
cÿ
6. +% **+! S;,3,1
There must be the branch offices in each20-30 Km. areas;
7. **+! !-!
The management appointed must be that much capable that it can control the whole team
The marketing department must be so aggressive that it can have a close watch on the
competitors¶ activities. Not only this but also it must take care of the need and wants of the
customers also.
for the agents. The scheme of permanent job placement must be introduce for those F.C.
10. s o l u t i o n o f p r o b l e m s
There must regular meetings with the financial consultants and agents to motivate them
c{
72
cë
S
C@
S
c<
73
c
S
Although every effort has been in to collect the relevant information through the sources
± -!2
The time duration could not provide ample opportunity to study every detail of the company.
± 6 !!''2
Executives were unaware of many terms related to same while asking to them.
in some cases separate accounts of division are not separately maintained thereby, leading to
restrictions in study.
cm
74
cc
S
C I
ccc
75
cc]
The size of the market has grown and size of the insurable population in India is needed vast
and the existing player has managed to cover amount one ± fourth of it. The opportunities
Life Insurance has today become a mainstay of any market economy since it offers plenty of
scope for garnering large sums of money for long periods of time. A well ± regulated Life
Insurance industry which moves with the times by offering its customers tailor made products
to satisfy their financial needs is, therefore, essential if we desire to progress towards a worry
free future.
People used to buy Insurance for tax exemption but time has changed now, advertising has
made the people understand the need of Life Insurance in their lives and people are taking
initiatives to buy it. Urge of people to have Insurance and strong marketing can really make
cc
76
ccÿ
S
((7' !*! !#
www.avivaindia.com
Aviva Investor
cc{
SB
ccë
84
cc<
S
NAME OF
RESPONDENT:«««««««««««««««««««««««
« GENDER:««««««««««««««««««««««««««
ADDRESS:«««««««««««««««««««««««««
CONTACT NUMBER:««««««««««««««««««««
18-30( ) 30-45( )
45-60( ) 60<( )
!'&(#!H'
(*!''(
Serviceman( ) Businessman(
) Professionals( ) others( )
cc
"%",
Yes( ) No( )
" ""%"
Yes( ) No( )
1( ) 2-4( )
4-8( ) >8( )
Yes( ) No( )
""%"
Yes( ) No( )
ccm
c]
( 1( %;! 1 ,*! ' +! &(,+1 SS S
Yes ( ) No( )
Dissatisfied ( ) Average ()
satisfied () highly satisfied ( )
S ! 1( ''*!# 6% +'(-! '! ;+!' ;! 31 %! SS
S5
Dissatisfied( ) Average ()
satisfied () highly satisfied ( )
7 %! SS S 6% (%! ' +! (-&!' (#)
Best ( ) Good ( )
Average ( ) Bad ( )
Yes ( ) No ( )
c]c
d! " "*,,
c]]
For risk cover ( )
For investment ( )
For safe future return ( )
For tax benefits ( )
!- 7'JJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJ
JJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJ
JJJJJJJJJJJJJJ))
!8
,+!8 !'&(#!' !
c]
c]ÿ