A COMPREHENSIVE PROJECT REPORT

ON
Factors

Affecting Consumer Purchase Decision of Laptops

Pr ep ar ed B y

Anil Rukeja(097440592016) &UmeshThawani (097440592035)

M.B.A. Sem4Marketing

A c ad em i c Y ear
2009 - 2011

Submitted To
Gujarat technological University

Submitted For
Partial fulfillment for the award of the Master in Business Administration (MBA)

G u i d ed B y
MrNileshLimbasiya

R K COLLEGE OF BUSINESS MANAGEMENT (RKCBM)

Affiliated with Gujarat Technological University - MBA Program Recognized by All India Council for Technical Education (AICTE) Kasturbadham, Rajkot-Bhavnagar Highway, Rajkot-360020

DECLARATION

We, ANIL C. RUKEJA& UMESH THAWANI, student of R.K. COLLEGE OF BUSINESS MANAGEMENT, RAJKOT hereby declare that the project work presented in this report is my own work and has been accomplished under the supervision ofMr. NILESH LIMBASIAof M.B.A. DEPARTMENT, R.K. COLLEGE OF BUSINESS MANAGEMENT,Gujarat Technological University.

The report has not been previously submitted to any other university for any other examination.

DATE: PLACE:

PREFACE
A man without practical knowledge is just like a rough diamond. To shine like a real diamond one must have practical exposure of what he has learnt. For the students of management theoretical knowledge is just like lock without key so practical knowledge is of so much important.

It is quite true that world outside; your cozy home is many times quite different from what you have perceived. Similarly it is possible that theoretical knowledge acquired in the classroom may differ from the practical knowledge.

Practical knowledge is the best experience and on this basis, we can easily understand about what they want to say. Firstly each student knows about the theory, so that on the basis of theory, he can easily learn how to do the work and what is the best way to achieve satisfaction. That is why we can say that theory is guidelines for practical.

As a curriculum part of course of M.B.A., I have taken my practical training and conducted a research project at SHRIRAM LIFE INSURANCE CO. LTD.

It is my pleasure to present this project work after I had finished my 45 days of training at SHRIRAM LIFE INSURANCE CO. LTD. This training has expanded my horizon of knowledge in practical as well as theoretical, which is vital for student in management level studies. Only the basic understanding of the principles of management is not sufficient but their application is also equally important. Such type of training promotes a student to boost his potentialities and the inner qualities and thereby students come to know about how the theoretical knowledge works in actual sense in any unit. And this has indeed proved to be very useful to students.
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ACKNOWLEDGEMENT

I am heartily thankful to Shriram Life Insurance Co Ltd., which gave me an opportunity to take training in the company.

I am also very thankful to Mr. PrashantNamdeoRegional Manager, Rajkot, and Mr. MehulDodiyafor their kind support and valuable guidance.

I am also thankful to my professors and especially to my project guide Ms. VarshaVirani She had guided me a lot during the summer training and also to Director of R.K College of Business management Dr. N.M.Khandelwaal.

At last, I am grateful to all those respondents without whose co-operation my research would have not been completed.

EXECUTIVE SUMMARY
I feel pleasure to present this project report as a part of curriculum of M.B.A. course. The objective of this research project is to know the consumer awareness of Shriram Life Insurance Company Ltd. This research project with Shriram Life has been very informative and inspirational.

For this project the random respondents are taken various areas of Rajkot. I had to meet them and to collect information through structured questionnaire by taking interview of responsible person in the respondent companies. I visited 50respondents of Rajkot and gathered information about this project.

Consumer awareness of Shriram Life is present among the people of Rajkot. However it is quite lower than the public sector general insurance companies.

From this research project the awareness level of consumer about Shriram Life Insurance is known which would be helpful to the company

INDEX No
1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2 2.1 2.2 2.3 2.4 2.4.1 2.4.2 2.4.3 2.5 2.6 2.7 3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 4 5.1 5.2 6

Content
OVERVIEW OF INDUSTRY History of insurance Introduction to Insurance Sector Reforms of Insurance Sector What is Insurance? Functions of Insurance Life Insurance Life Insurance Scenario In India Current Status Insurance Regulatory Authority COMPANY INFORMATION Introduction to Shriram Life Insurance Joint Venture with Sanlam Group Vision of the Company Functional Departments Finance Department Marketing Department Human Resource Department Products Major Players In Life Insurance SWOT Analysis RESEARCH METHODOLOGY Introduction to Research Topic Research Problem Literature Review Rationale of the Study Hypothesis Source of Data Research Instrument Sampling Process Scope of the Study Limitation RESULTS AND INTERPRETATION FINDING AND RECOMMENDATIONS CONCLUSION LEARNING FROM SIP Bibliography Appendix Questionnaire
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Page No
8 11 13 15 16 19 23 25 27 30 31 32 33 35 37 41 43 44 46 47 48 50 51 51 51 51 52 52 53 69 71 73 75 77

OVERVIEW OF INDUSTRY

HISTORY OF INSURANCE
Insurance has been around since ancient times. The Babylonians and Phoenicians had ocean marine insurance to protect a merchant against losses incurred when a ship did not reach its intended destination with its load of goods or did not return with payment. This form of insurance, called Respondentia, evolved because the goods on board often were used as collateral for a loan. The lender charged the borrower interest on the loan and levied an additional sum, the premium, to cover the cost of the respondentia contract. If the ship reached its destination and returned, the merchant received payment for the goods and in turn paid the moneylender. If the ship failed to return, the debt was cancelled. This system was profitable to lenders because many respondentia contracts were sold, and debts were paid more often than cancelled. In ancient Rome, associations had a form of insurance for their members. Each member made regular payments to the association in return for coverage of funeral expenses or for assistance to family members who were injured or ill. Insurance also existed in 17th-century England, which was then one of the world's principal maritime powers. Those seeking marine insurance would post a list of their cargo and voyages in a London coffee house owned by Edward Lloyd. Private investors would examine the list and sign their name by the entries they were willing to guarantee for a fee. These private investors were the first insurance underwriters, and the coffee house became the world center of marine insurance. Today the organization is known as Lloyds of London, and it brings together individuals, most often working in syndicates, who write all types of insurance. Insurance in the modern form originated in the Mediterranean during 14th century. The earliest references to insurance have been found in Babylonia, the Greeks and the Romans. The use of insurance appeared in the account of North Italian merchant banks who then dominated the international trade in Europe at that time. Marine insurance is the oldest form of insurance followed by life insurance and fire insurance. The patterns that have been used in England followed in other countries also in these kinds of insurance

The oldest and the earliest records of marine policy relates to a Mediterranean voyage in 1347. In the year 1400, a book written by a merchant of Florence, indicates premium rates charged for the shipments by sea from London to Pisa. Marine Insurance spread from Italy to trading routes in other countries of Europe. Fire insurance has its origin in Germany where it was introduced in municipalities for providing compensation to owners of the property, in return for an annual contribution, based on the rent of those premises. The fire insurance in its present form started after the most disastrous fire in human history known as the 'Great Fire' in London, which had destroyed several buildings. It drew the attention of the public and the first fire insurance commercially transacted in 1667. The Industrial Revolution (1720-1850) gave much impetus to fire insurance. The Nineteenth century marked the development of fire insurance. Due to the increasing demands of the time, different forms of insurance have been developed. Industrial Revolution of 19th century had facilitated the development of accidental insurance, theft and dacoits, fidelity insurance, etc. In 20th century, many types of social insurance started operating, viz., unemployment insurance, crop insurance, cattle insurance, etc. This way the business of insurance developed simultaneously with human and social development. Today, the use of computers in the field of insurance is frequently increasing. Insurance becomes an inseparable part of human development. The early developments of life insurance were closely linked with that of marine insurance. The first insurers of life were the marine insurance underwriters who started issuing life insurance policies on the life of master and crew of the ship, and the merchants. The early insurance contracts took the nature of policies for a short period only. The underwriters issued annuities and pension for a fixed period or for life to provide relief to widows on the death of their husbands. The first life insurance policy was issued on 18th June 1583, on the life of William Gibbons for a period of 12 months. The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows. Interestingly in those days a higher premium was charged for Indian lives than the non-Indian lives as Indian lives were considered more riskier for coverage.
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The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same premium for both Indian and non-Indian lives. The Oriental Assurance Company was established in 1880. The first general insurance company- Tital Insurance Company Limited was established in 1850. Till the end of nineteenth century insurance business was almost entirely in the hands of overseas companies. Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912 and the Provident Fund Act of 1912. Several frauds during 20's and 30's sullied insurance business in India. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over insurance business. The insurance business grew at a faster pace after independence. Indian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon. The Government of India in 1956, brought together over 240 private life insurers and provident societies under one nationalized monopoly corporation and LIC was born. Nationalization was justified on the grounds that it would create much needed funds for rapid industrialization. This was in conformity with the Government's chosen path of State- led planning and development.

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INTRODUCTION TO INSURANCE SECTOR

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. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost 190 years. The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1912

The Indian Life Assurance Companies Act enacted as the first statute to regulate

the life insurance business. 1928 The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938 Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crores from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

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Some of the important milestones in the general insurance business in India are:

1907 The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957 General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968 The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972 The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

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REFORMS OF INSURANCE SECTOR

In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at "creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms" In 1994, the committee submitted the report and some of the key recommendations included: 1 STRUCTURE : Government stake in the insurance Companies to be brought down to 50% Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate 2 COMPETITION: Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies Postal Life Insurance should be allowed to operate in the rural market. Only One State Level Life Insurance Company should be allowed to operate in each state.

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REGULATORY BODY : The Insurance Act should be changed An Insurance Regulatory body should be set up Controller of Insurance (Currently a part from the Finance Ministry) should be made independent

INVESTMENTS : Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50% GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time)

CUSTOMER SERVICE : LIC should pay interest on delays in payments beyond 30 days Insurance companies must be encouraged to set up unit linked pension plans. Computerization of operations and updating of technology to be carried out in the insurance industry The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.

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WHAT IS INSURANCE?
Insurance is a contract that provides compensation for specific losses in exchange for a periodic payment. An individual contract is known as an insurance policy and the periodic payment is known as the insurance premium. Insurance provides a mechanism for shifting risk from a person, business, or organization to an insurance company in exchange for the payment of the insurance premium. There are many types of insurance and our guide provides information about the most common types. The most important ones for most individuals are health insurance, life insurance, and auto insurance. Health insurance provides protection against sickness and bodily injury. Auto insurance provides can pay for injuries or damage resulting from an auto accident or when an auto is vandalized or stolen. Life insurance makes a payment to your beneficiaries in the event of your death. Life insurance pays a specified sum to the beneficiaries upon the death of the insured. It is generally used to provide cash to your family in the event of your death. There are several types of life insurance policies. The most common types are whole life insurance and term life insurance. Whole life insurance provides a lifetime of protection as long as you pay the premiums to keep the policy active. They also accrue a cash value and thus offer a savings component. Term life insurance provides protection only during the term of the policy and the policies are usually renewable at the end of the term.

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FUNCTIONS OF INSURANCE

The functions of Insurance can be bifurcated into two parts: 1. Primary Functions 2. Secondary Functions 3. Other Functions The PRIMARY FUNCTIONS of insurance include the following: Provide Protection The primary function of insurance is to provide protection against future risk, accidents and uncertainty. Insurance cannot check the happening of the risk, but can certainly provide for the losses of risk. Insurance is actually a protection against economic loss, by sharing the risk with others. Collective bearing of risk Insurance is a device to share the financial loss of few among many others. Insurance is a mean by which few losses are shared among larger number of people. All the insured contribute the premiums towards a fund and out of which the persons exposed to a particular risk is paid. Assessment of risk Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. Risk is the basis for determining the premium rate also.

Provide Certainty Insurance is a device, which helps to change from uncertainty to certainty. Insurance is device whereby the uncertain risks may be made more certain.
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TheSECONDARY FUNCTIONSof insurance includes the following: Prevention of Losses Insurance cautions individuals and businessmen to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions; installation of automatic sparkler or alarm systems, etc. Prevention of losses cause lesser payment to the assured by the insurer and this will encourage for more savings by way of premium. Reduced rate of premiums stimulate for more business and better protection to the insured.

Small capital to cover larger risks Insurance relieves the businessmen from security investments, by paying small amount of premium against larger risks and uncertainty.

Contributes towards the development of larger industries Insurance provides development opportunity to those larger industries having more risks in their setting up. Even the financial institutions may be prepared to give credit to sick industrial units which have insured their assets including plant and machinery.

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TheOTHER FUNCTIONSof insurance include the following:

Means of savings and investment Insurance serves as savings and investment, insurance is a compulsory way of savings and it restricts the unnecessary expenses by the insured's For the purpose of availing income-tax exemptions also, people invest in insurance. . Source of earning foreign exchange Insurance is an international business. The country can earn foreign exchange by way of issue of marine insurance policies and various other ways.

Risk Free trade Insurance promotes exports insurance, which makes the foreign trade risk free with the help of different types of policies under marine insurance cover.

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LIFE INSURANCE
Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. Essentially, a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed upon sum of money to the insured's named beneficiary so long as the insured's premiums are current. Life insurance is a guarantee that your family will receive financial support, even in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It thus permanently protects your family from financial crises.

In addition to serving as a protective cover, life insurance acts as a flexible money-saving scheme, which empowers you to accumulate wealth-to buy a new car, get your children married and even retire comfortably. Usually the insurance contract provides for the payment of an amount on the date of maturity or at specified dates at periodic intervals or at unfortunate death if it occurs earlier. Obviously, there is a price to be paid for this benefit. Among other things, the contract also provides for the payment of premiums by the assured. Life Insurance is universally acknowledged as a tool to eliminate risk, substitute certainty for uncertainty and ensure timely aid of the family in the unfortunate event of the death of the breadwinner. In other words, it is the civilized world's partial solution to the problems caused by death. In a nutshell, life insurance helps in two ways: premature death, which leaves dependent families to feed for itself and old age without visible means of support.

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TYPES OF LIFE INSURANCE Whole Life Insurance

Whole life insurance, also known as traditional, straight, or permanent life insurance is a policy that is kept in force for a person's whole life as long as the scheduled Premiums are paid. Whole insurance policies can be a great value because they accrue cash value--you get savings as well as insurance. Some even pay a dividend which depending on how well the insurance is doing. If the company is doing well then the premiums are paid backto the policyholder in the form of dividends. The policyholder can use the dividend to offset his premiums, to purchase more insurance, or to purchase additional term life insurance.

Term Life Insurance

Term life insurance is a low-cost form of life insurance that covers the insured for only a certain period of time (the term), not for his entire life. If the insured dies during the coverage period, the beneficiary receives the death benefit. If the insured survives the time period, the policy expires and no benefit is paid. Term life insurance is best when coverage is only needed for a certain period of time or the short-term cost is the most important factor. In early years, term life insurance costs significantly less than whole life or other types of policies. It becomes increasingly expensive, as the insured grows older. Based on a "risk profile" created by the insurance company, you will be offered an insurance "premium" (monthly or yearly cost) for the amount of life insurance coverage you request. This risk profile takes into consideration a number of factors (including your age, weight, gender, personal health history, family health history, smoking/drinking habits, where you live, and various other aspects about your life like your marital status). Like other forms of insurance, saving money on Life Insurance is really just about shopping around for the best quote (since different companies have different opinions on risk profiles).

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BENEFITS OF LIFE INSURANCE

Superior to Any Other Savings Plan

Unlike any other savings plan, a life insurance policy affords full protection against risk of death. In the event of death of a policyholder, the insurance company makes available the full sum assured to the policyholders' near and dear ones. In comparison, any other savings plan would amount to the total savings accumulated till date. If the death occurs prematurely, such savings can be much lesser than the sum assured. Evidently, the potential financial loss to the family of the policyholder is sizable.

Encourages and Forces Thrift

A savings deposit can easily be withdrawn. The payment of life insurance premiums, however, is considered sacrosanct and is viewed with the same seriousness as the payment of interest on a mortgage. Thus, a life insurance policy in effect brings about compulsory savings.

Easy Settlement and Protection against Creditors

A life insurance policy is the only financial instrument the proceeds of which can be protected against the claims of a creditor of the assured by effecting a valid assignment of the policy.

Administering the Legacy for Beneficiaries

Speculative or unwise expenses can quickly cause the proceeds to be squandered. Several policies have foreseen this possibility and provide for payments over a period of years or in a combination of installments and lump sum amounts.

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Ready Marketability and Suitability for Quick Borrowing

A life insurance policy can, after a certain time period (generally three years), be surrendered for a cash value. The policy is also acceptable as a security for a commercial loan, for example, a student loan. It is particularly advisable for housing loans when an acceptable LIC policy may also cause the lending institution to give loan at lower interest rates.

Disability Benefits
Death is not the only hazard that is insured; many polices also include disability benefits. Typically, these provide for waiver of future premiums and payment of monthly installments spread over certain time period.

Accidental Death Benefits

Many policies can also provide for an extra sum to be paid (typically equal to the sum assured) if death occurs as a result of accident.

Tax Relief
Under the Indian Income Tax Act, the following tax relief is available

a) 20 % of the premium paid can be deducted from your total income tax liability. b) 100 % of the premium paid is deductible from your total taxable income. When these benefits are factored in, it is found that most polices offer returns that are comparable/ or even better than other saving modes such as PPF, NSC etc. Moreover, the cost of insurance is a very negligible.

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LIFE INSURANCE SCENARIO IN INDIA

Life Insurance in its existing form came to India from the United Kingdom with the establishment of a British firm Oriental Life Insurance Company in Calcutta in 1818 followed by Bombay Life Assurance Company in 1823. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life insurance business. Later in 1928 the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life insurance business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938 with a view to protecting the interest of insuring public earlier legislation was consolidated and amended by the Insurance Act 1938 with comprehensive provisions detailed and effective control over the activities of insurers. The Act was amended in 1950 resulting in far reaching changes in the insurance sector. These included a statutory requirement of equity capital for companies carrying on life insurance business, ceiling on share holdings in such companies, stricter control on investments, submission of periodical returns relating to investments and such other information to the controller. The controller could also call for appointment of administrators and put a ceiling on expenses of management and agency commission for mismanaged companies. By 1956, 154 Indian insurers, 16 foreign insurers and 75 provident societies were carrying on life insurance business in India. Life insurance business was concentrated in urban areas and confined to the higher strata of the society. On January 19, 1956, the management of life insurance business of 245 Indian and foreign insurers and provident societies then operating in India was taken over by the Central Government. Life Insurance Corporation was formed in September 1956 by an Act of Parliament, viz. LIC Act 1956 with a capital contribution of Rs.50 mn.

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The then Finance Minister Mr. C. D. Deshmukh while piloting the bill for nationalization outlined the objectives of LIC thus: "To conduct the business with utmost economy with the spirit of trusteeship; to charge premium no higher than warranted by strict actuarial considerations; to invest the funds for obtaining maximum yield for the policy holders consistent with safety of capital; to render prompt and efficient service to policy holders thereby making Insurance widely popular." Since 1956, with the nationalization of insurance industry, the state-run Life Insurance Corporation of India (LIC) has held the monopoly in that country's life insurance sector. General Insurance Corporation of India (GIC), with its four subsidiaries, was its counterpart in the casualty sector. Over time, taking advantage of its monopoly and virtual prerogative in establishing premiums, LIC has evolved into a monolith. With around 600,000 agents in every nook and corner of the vast country, it has created an enviable brand name, particularly among the rural population of the country. It has around $40 billion as its life fund and is a strong player in the financial sector. With a huge unionized, rigid workforce mostly in the clerical category, LIC runs the risk of high fixed cost, which will be the deciding factor in productivity in the competitive scenario. The new players, with the state-of-the-art technology under their belt, will be in an advantageous position. 80% of LIC's business is procured by 20% of its ill-trained agent force. The well-publicized failures of world famous consumer goods companies like Electrolux, Whirlpool, Reebok, Nike etc. to gauge the Indian psyche and sentiments demonstrate the concept. They failed in the areas of realistic pricing, product promotion and reaching to the consumer. The foreign companies need to know the "ground realities" to the details. Today the Life Insurance Corporation of India has 2046 branches. It is made up of 100 divisions, which are divided, into 7 zones. There are 558,000 LIC agents in the country.

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CURRENT STATUS

The IRDA bill had been introduced in the LokSabha during the Vajpayee governments last tenure with the expected mixed reactions. Surprisingly, the Congress chose to keep mum on the issue. The left parties staged a walkout registering strong protest. While the eager international and domestic players have to continue waiting in the wings for the curtains to rise, the government has made another landmark announcement. It is expected to be introduced again during the ongoing winter session of the parliament The Banking Regulation Act is to be modified to allow banks to become active players in the insurance sector. This comes as a major move and a precursor to the sweeping insurance reforms that have been opposed by the swadeshi bandwagon and the various labour unions operating in the insurance sector. The takeout of the amendment made to Section 6 (0) of the Banking Regulation Act, 1949 is this: The current act does not permit banks to handle insurance products. The proposed change will permit banks to either distribute or to market insurance products. In addition to this, banks will also be allowed entry to the insurance sector through the joint venture route and bank assurance. It is understood that only strong banks with three-year track records will be allowed to enter the business - entry is a strict no-no to the weaker banks. The Insurance Regulatory and Development Authority (IRDA) Bill provides for three levels of players - An Insurance Company, Insurance Broker and an Agent. Banks will work as agents and brokers in this proposed structure. This is an attempt to make the insurance sector more dynamic - this is likely to happen as banks will use their formidable branch network to market and distribute the insurance products. This amendment could also forge alliances in the banking sector. Initial reports indicate that the State Bank of India and Bank of Baroda have expressed interest in entering into joint ventures. ING Barings, who already has a 20%, stake in Vysya Bank, plans to broad base its alliance to add on insurance-based activities.

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This could be a timely move - one that will allow the domestic players to prepare for the competition ahead. It would also bring them on par with international players who are accustomed to operate in a liberalized environment. This is also a sensible move by the government to allay the fears of its more conservative and swadeshi-oriented allies and cement cracks, if any have appeared, given the BJP's new pro-liberalization avataar. A closer look at the amendment indicates that it is tantamount to creating stronger public sector monopolies with behemoths like SBI and BOB entering the fray. It is unlikely that the private sector banks would contemplate entering the business, as they may not have the requisite capital to meet the prescribed capital adequacy for the insurance sector. The government may have made a move that could be counter-productive in that the protests against entry of foreign players will only get more vociferous and strong with many more strong arms entering the rally. The manner and style of operations of the public sector banks leaves a lot to be desired. In an industry where service quality at the moment of truth or the moment of service delivery is nonexistent for the public sector players, one wonders what vibrancy these players will impart to the insurance business. The insurance agent as stereotyped currently is but the personification of a nationalized bank. Any marketing professional and every consumer will describe such a person as a semi-retired, balding, sloppy individual who drags his feet as he walks. One shudders to even conjure up images of insurance marketing in a nationalized bank branch. One has to search for a semblance of marketing in the existing set-up for student loans and housing finance. Business school aspirants and young couples will bear witness to this fact. I have recently been both and have strained my eyes searching for the proverbial needle in a haystack.

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INSURANCE REGULATORY AUTHORITY

On the recommendation of Malhotra Committee, an Insurance Regulatory DevelopmentAct (IRDA) passed by Indian Parliament in 1993. Its main aim is to activate an insurance regulatory apparatus essential for proper monitoring and control of the Insurance industry. Due to this Act several Indian private companies have entered into the insurance market, and some companies have joined with foreign partners.

In this economic reform process the Insurance Companies will boost the socio-economic development process. The huge amount of funds that will be at the disposal of Insurance Companies will be directed as desired avenues like housing, safe drinking water, electricity, primary education and infrastructure. The growth of the debt market will also get a boost. Above all the policyholders will get better pricing of products from competitive insurance companies.

The Government of India (GOI) opened the insurance sector to private players on October 24, 2000, thus unraveling a new chapter in this field. This new policy of the GOI is an outcome of Indias policy of liberalization and also the result of its obligation as a signatory to the WTO to conform to its principles and guidelines relating to the reduction of barriers to trade in services. This epoch-making decision has ushered in a new era that has transgressed four decades of complete control by the public sector over the insurance sector (life insurance was nationalized in 1956 by merging 245 private insurance companies to form the Life Insurance Corporation of India (LIC) while general insurance was nationalized with the formation of the General Insurance Corporation (GIC) in 1972).

This decision of the GOI has been accompanied by a set of laws and regulations governing this domain. Accordingly, the Insurance Regulatory and Development Authority Act, 1999 (the
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IRDA Act) was enacted with the predominant aim of setting up an autonomous body known as the Insurance Regulatory and Development Authority (IRDA) to regulate, promote and ensure orderly growth of the insurance industry. Further, the Insurance Act, 1938 has been significantly amended so as to bring it in conformity with the IRDA Act. The IRDA has a twin role, i.e., regulation as well as development of the insurance sector. Insurance is a federal subject in India and the legislation that governs insurance in India is: 1. The Insurance Act, 1938; and 2. The IRDA Act. Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies were the launch of the IRDAs online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered.

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COMPANY INFORMATION

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SHRIRAM LIFE INSURANCE CO LTD

The Shriram group is one of the largest and well respected financial services conglomeratsin India. The groups main line of activities in financial services include, chit funds, truck financing, consumer durable financing, stock broking, insurance broking, and life insurance. The group has a customer base of 30 lack chit subscribers and investors and operates through a network of 630 offices all over the country. The group has the largest agency force in the privet sector consisting of more than 75000 loyal and dedicated agents.

Shriram Life insurance Co Ltd. was launched in January 2006. India currently accounts for 16% of the worlds population. 70% of the populations is below 35 years of age. Between 2001 and 2006, Indian demography has changed with the higher income classes constituting about 79%. This presents huge market for insurance products.

This is amply reflected in the growth of insurance industry in the last recent years. However this growth has not reached to rural and semi urban areas. Shriram group with its network of branches particularly in these areas a unique opportunity for reaching out a wider audience and sustain the growth story of the insurance industry. Most of the products of Shriram life were designed by advisors working in the field and based on need analysis done through intense market research.

During the first year of operation the company earned a profit of 2 crores which doubled to 4 crores in the subsequent year. For the fiscal ended march 2009 the company earned a profit of 8 crores adding the total premium at the end of 2008-09 stood at 1000 crores. The company aims to garner new business premium of Rs 1000 crores in the next 3-4 years. The company also intends to increase in 100 cities in next couple of years.
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THE JOINT VENTURE

Shriram Life Insurance Company Ltd is a joint venture of Shriram group and Sanlam with South Africa holding 26% of the stack. Sanlam Life insurance Limited, a part of the Sanlam Group, is one of the largest providers of life insurance in South Africa with 3.2 million individuals policies under administration It has a significance presence across South Africa, United Kingdom and Namibia and is a major provider of life insurance, retirement annuities, saving and investment products, personal loans, home loans and trust services to individuals. The shareholder's funds of Sanlam Life equates to USD 4.4 billion . The Sanlam Group was established in 1918 and has a leadership position in financial services in South Africa. Demutualized in 1998, the group is listed on the JSE Securities Exchange in Johannesburg and on the Namibian Stock Exchange. It has a current market capitalization of USD 5.4 billion. The Sanlam Group also operates in the areas of group schemes, retirement funds, short-term insurance, asset management and other financial services. It has employee strength of 8,000 and has shareholder funds in excess of USD 4.6 billion. On 31st December 2004 it had more than USD 48 billion assets under management .

31

VISION OF THE COMPANY

The Shriram Life Insurance Company is set out with the objective of reaching out to the common man with a host of products and services that would be helpful to him in his path to prosperity. Efficiency in operations, integrity and a strong focus on catering to the needs of the common man, by offering him high quality and cost-effective products and services, are the values driving the organization. These core values are deep-rooted within the organization and have been strongly adhered to over the decades. The company prides itself on its perfect understanding of the customer. Each product or service is tailor-made to perfectly suit the needs of the customer. It is this guiding philosophy of putting people first that has brought the Company closer to the grassroots and has made it the preferred choice for all the truck financing requirements amongst the customers

32

FUNCTIONAL DEPARTMENTS

FINANCE DEPARTMENTS
Something must be direct the how of economic activity and facilities its smooth operation. Finance is the agent that produces this result. Nature of financial management refers to its functions, scope and objectives. Financial management is that managerial activity which is concerned with the planning and controlling of the firms financial resources. In modern times finance is the life-blood of the business. No matter, whether the business is big or small financial is the equally important. The financial resources must proper planned and control in order to achieve the best out of available. So, financial resources should be very properly Generally, financial planning means deciding in advance, the financial activities are to be carried on to achieve the objective of the firm. In broader sance, in the words of Walker and Boughn as; financial planning includes the determination of firms financial objectives, formulating and promulgating financial polices and developing and procedures. Financial planning is necessary to achieve both long term and short term objectives. A sound financial planning includes how much need of funds for both the terms. Then from where they are to be received and utilized. Shriram life would evaluated different proposal placed before them and selects the best out of them. It estimates how much capital is going to be required for various proposals and how much is the return on the capital employed. The financial manager lays down the estimate on the capital of cash per week, per month and per year.

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CAPITALIZATION At the time of incorporation of any business, it is the first problem before the promoters to decide how much capitalization should be made in a business. The amount of capital of any time should not exceed nor less than the amount required. So, it is necessary to have proper capitalization for the success of the enterprise. But Gerstenberg defines it as; The total accounting value of all capital regularly employed in business, it includes owners capital, borrowed capital and any other sources. Thus term includes; 1. The value of ordinary and preference shares 2. The value of all surplus earned and capital 3. The value of bonds and security still not redeemed 4. The value of long term loans However the modern view includes short term funds or liabilities under the firm. It should be properly capitalized. Shriram Life Insurance issue shares. So, all these terms do apply.

FUND OPTIONS There are six funds having different proportional investment in equity, debt, market money and cash. The funds are Preserver, Defender, Balancer, Maximus, Accelerator, and Tyaseer.

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MARKETING DEPARTMENT
Traditionally, insurance products have been promoted and sold principally through agency systems in most countries. With new developments in consumer behaviour, evolution of technology and deregulation, new distribution channels have been developed successfully and rapidly in recent years.

Shriram Life Insurancemake use of various distribution channels:     Career Agents Advertisements Direct Response Internet

The main characteristics of each of these channels are:  Career Agents: Career Agents are full-time commissioned sales personnel holding an agency contract. They are generally considered to be independent contractors. Consequently an insurance company can exercise control only over the activities of the agent, which are specified in his contract. Despite this limitation on control, career agents with suitable training, supervision and motivation can be highly productive and cost effective. Moreover their level of customer service is usually very high due to the renewal commissions, policy persistency bonuses, or other customer service-related awards paid to them. Many insurance companies, however avoid this channel, believing that agents might oversell out of their interest in quantity and not quality. Such problems with career agents usually arise, not due to the nature of this channel, but rather due to the use of improperly designed remuneration and/or incentive packages.

35

 Direct Response: In this channel no salesperson visits the customer to induce a sale and no face-to-face contact between consumer and seller occurs. The consumer purchases products directly by responding to the company's advertisement, mailing or telephone offers. This channel can be used for simple packaged products, which can be easily understood by the consumer without explanation.

 Advertisements: This very popular medium among the entire medium any person can see this advertisement of the products and buy the product from nearest branch. Internet: Internet banking is already securely established as an effective and profitable basis for conducting banking operations. The reasonable expectation is that personal banking services will increasingly be delivered by Internet banking. Company can also feel confident that Internet banking will also prove an efficient vehicle for cross selling of insurance savings and protection products. It seems likely that a growing proportion of the affluent population.

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HUMAN RESOURCE DEPARTMENT

HUMAN RESOURCE MANAGEMENT Human Resource Management function that helps managers recruits select, train and develop members for an organization. Obviously, HRM is concerned with the peoples dimension in organizations In all business concerns, there is one common element. i.e. HUMAN RESOURCE. Work force of an Organization is one of the most important inputs of components. It is said that people are our single most important assets. Because of the unique importance of HUMAN RESOURCE and its complexity due to ever changing psychology, behavior and attitudes of men and women at work, personnel function, i.e., manpower management function is becoming increasingly specialized. The personnel function or system can be broadly defined as the management of people at work- management of managers and management of workers. Personnel function is particularly interested in personnel relationship and interaction of employees-human relations.

In a sense, management is personnel administration. Management is the development of people, and not mere direction of material resources. Human capital is the greatest asset of a business enterprise. The essential ingredient of management is the leadership and direction of people. Each manager of people has to be his own personnel man. Personnel management is not something you really turn over to personnel department staff.

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MANPOWER PLANNING Human Resource Planning is the process by which an organization ensures that it has the right number and kind of people, at the right place, at the right time, capable of effectively and efficiently competing those tasks that will help the organization achieve its overall objectives. Human Resource Planning translates the organizations objectives and plans into the number of workers meet those objectives. Without a clear-cut planning, estimation of an organizations human resource need is reduced to mere guesswork Manpower planning is needed with respect to persons who can work as sub-broker for the companies. Companies focus on Advisors of Mutual Fund product and ELSS schemes of Shriram and focused on Insurance Advisor and post office agent, Tax consultants and CAs for making sub-broker.

Shriram Life Insurance follows the following process: The first step is forecasting the need of man power in terms of divisions, department or functions. Along with the estimate of the number of the people required in different departments it is also decided that at which level they will be needed. After estimating the man power requirement, next step is to have a look at the current human resource. The current human resource is assessed so as to know whether the requirement can be filled by the existing personnel or not. At last detailed policies for recruitment, selection, training, promotion, retirement, replacement etc.

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EXCLUSIVE EMPLOYMENT The employee position is that of full time employed with Shriram Life. The company strictly prohibits the employees from seeking employment of any nature with any other entity. The employees have to take prior approval from the superior and the Human Resource department before engaging in activities like addressing seminars, teaching etc. and ensure that these official duties do not suffer on this account and no monetary benefit is derived there from. The employee or its relatives should also not be empanelled as an authorized / unauthorized distributor / agent / broker or in any other similar capacity of any entity engaged in distribution and selling of financial products.

RECRUITMENT & SELECTION The upper level members like zonal managers, regional managers, branch managers and senior executives are recruited by publishing recruitment advertisement in leading national level newspaper. The qualified applicant are then called for interview and selected. The regional manager has authority to select lower level employee like peon, marketing executives, financial accountant etc. by approval of zonal manager.

PERFORMANCE APPRAISAL Objective of Performance appraisal if for Developmental uses for agents and financial consultants, for wages, transfer, promotion, for documentation and for organizational purpose like Human Resource Planning, Job analysis and for training and development

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TRAINING Continuous training and upgrading technical, behavioral and managerial skills is a way of life in Shriram. Shriram Life encourages agent or sub-broker to hone their skills regularly to enable them to face the challenges of the changing requirements of customers that fit market up and down The successful candidates of the AMFI Exam are given the product training. The primary purpose is to become quite conversant with the product that one sells. In other words, product knowledge is very important for any advisor. Product knowledge is not just about knowing the broad terms and conditions of the various schemes of policies. The advisors are explained about the schemes, the terms related with it, the benefits it provides to investor. This training is aimed at making the advisors fully equipped with the companies product information. This training is aimed at making the advisors experts in selling the products

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PRODUCTS
Broadly, insurance plans can be distinctly divided into ULIPs and traditional plans. A brief detail of both segments:

Unit Linked Insurance Products

ULIPs have gained high acceptance due to attractive features they offer. These include:

1. Flexibility
1. Flexibility to choose Sum Assured. 2. Flexibility to choose premium amount. 3. Option to change level of Premium /Sum Assured even after the plan has started. 4. Flexibility to change asset allocation by switching between funds

2. Transparency
1. Charges in the plan & net amount invested are known to the customer
2. Convenience of tracking ones investment performance on a daily basis.

3. Liquidity
1. Option to withdraw money after few years (comfort required in case of exigency) 2. Low minimum tenure. 3. Partial / Systematic withdrawal allowed

4. Fund Options
1. A choice of funds (ranging from equity, debt, cash or a combination) 2. Option to choose your fund mix based on desired asset allocation

ULIP Plans:
1. Future Wealth 2, 2. Pension Plan 2, 3. Shri Plus 2,

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4. ShriVidya Plus 2, 5. ShriVikas 2, 6. ShriVishram 2.

TRADITIONAL PLANS
These are the oldest types of plans available. These plans cater to customers with a low risk appetite. Some of the common features of traditional plans are:

1. Steady Investment
1. Major chunk of investible funds are in debt instruments 2. Steady and almost assured returns over the long term

2. Features
1. Death benefit is Sum Assured + guaranteed & vested bonus 2. Helps in asset creation as they are for a long tenure 3. Premium to Sum Assured ratios are fixed for each plan and age. 4. Generally withdrawals are not allowed before maturity 1.ShriLaabh, 2.Shri Life, 3.ShriRaksha, 4.AkshyaNidhi, 5.ShriSurksha, 6.ShriVidya, 7.ShriVivah
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MAJOR PLAYERS IN LIFE INSURANCE

Sr. No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Name of the Company

Bajaj Allianz Life Insurance Company Limited Birla Sun Life Insurance Co. Ltd HDFC Standard Life Insurance Co. Ltd ICICI Prudential Life Insurance Co. Ltd ING Vysya Life Insurance Company Ltd. Life Insurance Corporation of India Max New York Life Insurance Co. Ltd Met Life India Insurance Company Pvt. Ltd. Kotak Mahindra Old Mutual Life Insurance Limited SBI Life Insurance Co. Ltd Tata AIG Life Insurance Company Limited Reliance Life Insurance Company Limited. Aviva Life Insurance Co. India Pvt. Ltd. Sahara India Life Insurance Co, Ltd. Bharti AXA Life Insurance Company Ltd.

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SWOT ANALYSIS Strength:

y y y y Quality of products Quality of services Highly cooperative and efficient staff & crew members Wide distribution network across the whole country.

Weakness: y Less promotional activities

y y Less advertising efforts Low market share compared to PSUs

Opportunities:
y By making some good promotional efforts Shriram can gain more number of customers who will be loyal. y y Increasing awareness will result in increase in customer base. Company has already proved its strength in market so, soft work required to launch this product y Huge potential of insurance business in India.

Threats:
y y y y y Challenges posed by other competitor in the market. Lower customer base may hinder prompt service Social scenario. Government policies Aggressive Marketing strategy by competitors
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Research Methodology

45

INTRODUCTION TO RESEARCH TOPIC

For my research work the selected topic is of consumer awareness. Consumer awareness refers to the familiarity of the brand, company or product among the customers. For any company it is very essential that the company should be present in awareness set in the minds of customers. Products of any company will not be sold until buyers of those products or services are aware about it. Hence brand awareness plays crucial role for the success of any company in the market. And so new companies spend lot of efforts for making their brands aware among mindset of customers. Once customers get aware about the brand then the brand will come into the consideration set followed by choice set and finally it will get purchased by the customers. Hence the finally purchase decision greatly depends on the brand awareness. So companies heavily advertise their brands and products through different means to make their brands familiar with target market.

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RESEARCH PROBLEM
The Government of India (GOI) opened the insurance sector to private players on October 24, 2000, thus unraveling a new chapter in this field. Before that there were only 4 public sector government hold companies were in the general insurance business in India. Then private companies entered in the general insurance business. And at presently 4 public sector companies and more than 12 private sectors companies are doing business of life insurance in Indian market. All these companies entered after the year of 2000. And so their business is many times less then PSUs. At present 4 PSUs have 90 % market share in India and privateplayers together account for only remaining 10%. As many firms and industrial persons are not aware about these private companies and their insurance services.

Shriram Life Insurance entered in the Indian market in the year 2006. Among the all private players with market share is it is quite less compare to all public sector companies. Many reasons are behind it but one of them is unawareness of people about Shriram Life Insurance. Many industrialists and entrepreneurs are not aware about the presence of Shriram Life Insurance in the insurance business and if they are aware about it then they do not know about the policies and services offered by the company.

Hence the research work has been done to check the consumer awareness of Shriram Life Insurancein the Rajkot city. Efforts have been put to know at what extent they are aware about the company and the services of the company

47

LITERATURE REVIEW
Kirchler and Angela-Christian Hubert (1999) found that the present study aims at describing spouses relative dominance in decisions concerning different forms of investment. As determinants of spouses dominance, partnership characteristics, such as partnership role attitudes, marital satisfaction and individual expertise in relation to different investments, were considered. A questionnaire on spouses dominance in making decisions on various investments, on the characteristics of particular investments and on partnership characteristics was completed by 142 Austrian couples. Basically, wives appeared to adapt to the dominance exerted by their husbandsinsavings and investment decisions. Wives dominance was highest in egalitarian partnerships, whereautonomic and wife-dominated decisions were reported more frequently than in traditional partnerships. Additionally, spouses relative expertise in relation to the investments in question showed strong effects on dominance distribution: Spouses with higher expertise than their partners exerted more dominance in decision-making processes. Evan Mills, Ph.D. (1999) Studied the insurance industry is rarely thought of as having much concern about energy issues. However, the historical involvement by insurers and allied industries in the development and deployment of familiar technologies such as automobile air bags, fire prevention/suppression systems, and anti-theft devices, shows that this industry has a long history of utilizing technology to improve safety and otherwise reduce the likelihood of losses for which they would otherwise have to pay. We have identified nearly 80 examples of energy-efficient andrenewable energy technologies that offer loss-prevention benefits, and have mapped these opportunities onto the appropriate segments of the very diverse insurance sector (life, health, property, liability, business interruption, etc.).

Slovic, Fischhoff, Lichtenstein,Corrigan, and Combs (1977) found thatsubjects were more likely to buyinsurance against small, high-probabilitylosses than insurance against large,

lowprobabilitylosses, Hershey andSchoemaker (1980) reported theopposite result.

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Michael L. Walden (1985) told that the option's package view of the whole life insurance policy suggests that a whole life policy is a package of options, each of which has value and is expected toinfluence the price of the policy. This viewpoint implies the general hypothesis that price differences between whole life policies can be explained by differences in policy contract provisions anddifferences in selected company characteristics. The option's package 3 theories were empirically investigated using regression analysis on data from a sample of policies marketed in NorthCarolina. The results suggest support for the options package theory.

Roger. A. Formisano (1981) examined, via consumer interviews, the impact of the National Association of Insurance Commissioner's Model Life Insurance Solicitation Regulation as implemented in New Jersey. A substantial portion of the insurance buyers sampled did not become aware of the provisions of the regulation aimed to improve their buying ability. Further, many life insurance buyers were not well informed concerning the nature and operation of life insurance contracts, and in particular, the life insurance policies that they had purchased.

Michael L. Smith (1982) said that a typical life insurance contract provides a package of options or rights to the policy owner that is not precisely duplicated by any other combination of commonlyavailable contracts. Viewed from this perspective, life insurance enjoys a unique position in the field of investments and should be judged in this light. The paper shows that an options viewpoint provides a more complete explanation of policy owner behavior towards life insurance than theconventional savings-and-protection view.

49

RATIONALE OF THE STUDY

After government opened the doors for the private insurance players to conduct insurance business in Indian market in the year 2000, many private life and non-life (general) insurance companies entered in Indian market. And at present there are 4 public sector companies and more than 12 private sector companies are doing business of life insurance in Indian market. However till the date public sector companies are in dominant position and private general insurance companies have very less market share as compared to PSUs. The reason behind this less business of private insurance companies is the lack of awareness among the people about these private general insurance companies. Shriram has started its operation in Rajkot in the recent years. It is essential to know for the company that at what extent industrial areas of Rajkot are aware aboutShriramLife Insurance Co. Ltd. and familiarity of industries with the insurance products and services offered by the company. So this research study is conducted with the objective to know the Consumer Awareness of Shriram Life Insurance Co. Ltd among the people of Rajkot.

OBJECTIVE OF THE STUDY

y y y To know awareness of people in Rajkot about insurance. To know awareness of people in Rajkot about Shriram Life Insurance. To know the general preference of people for investment.

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HYPOTHESIS
Null Hypothesis: There is significance difference between Male and Female for awareness about Shriram Life insurance. Alternative Hypothesis: There is no significance difference between Male and Female for awareness about Shriram Life insurance

SOURCE OF DATA
Primary Data: For my project primary data I have collected through structured questionnaire and interview with respondents from different location in areas of Rajkot city. Secondary Data: For this project secondary data is the information collected from catalogues of the Company, Internet, books, articles, magazines and interaction with company professionals.

RESEARCH INSTRUMENT
For this project research instrument is the personal interview with the structured questionnaire containing related questions for the selected topic of the research study

SAMPLING PROCESS
For this research project random respondents are taken from areas of Rajkot city Sampling universe: Rajkot city Sampling technique: Random sampling Sample size: 50 respondents Research instrument: Personal interview with structured questionnaire
51

SCOPE OF THE STUDY

This project study is helpful in following aspects. y It will be helpful to the professionals of Shriram life insurance co. ltd. to know the level of brand awareness among the industrial units of Rajkot city. y y It will be helpful in knowing awareness about the competitors. It will be helpful in knowing the awareness level about the policies offered by Shriram life insurance. y It will be helpful to know the satisfaction level of the customers to the insurance companies.

LIMITATION OF THE STUDY

There are some limitations of this study are as follows: Personal Bias:Some respondents may have biasness towards some other insurance company, so they may have not given correct information, which may affect the conclusion of this study Time Limit: Time for this research work was limited otherwise more information could have been collected. Area:The area for this research work was limited to Rajkot only, so we cannot know about other customers outside this area. Sample Size: The sample size for this research is of only of 50 respondents which may not reveal adequate and correct information

52

ANALYSIS AND INTERPRETATION

53

RESULTS AND INTERPRETATION Demographic Profile of Respondents:

The demographic profile of the respondents includes Gender, Age, Income, Occupation, and Education Level. GENDER The Gender ratio is 88% (44) males and 12% (6) of females.

Gender
Female 12%

Male 88%

AGE For the analysis purpose, the age of respondents has been classified into four categories 17 to 3052%of people, 31 to 40-20%, 41 to 50-12%, and 51 to 60-16%.

Age
51-60 16% 41-50 12% 31-40 20%

17-30 52%

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INCOME Income has been measured as monthly income ranging from Below Rs.10000-16% (8), Rs10000 to 20000-38% (19), Rs20000 to 30000- 18% (9), more than Rs.30000-20% (10).

Income
More than 30000 22% Below 10000 17%

20000-30000 20%

1000020000 41%

OCCUPATION The occupation status of respondents has been grouped as Business 40% (20), Service 52% (26), None 8% (4).

None 8%

Occupation

Buisness 40% Service 52%

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EDUCATION LEVEL The education level of respondents has been measured in terms of Undergraduates 38% (19), Graduates 44% (22), and Postgraduates 18% (9).

Education Level
Post Graduate 18% Undergraduate 38%

Graduate 44%

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INVESTMENT PREFERENCE
Question: When it was asked to respondents where would they like to invest their money,among Insurance, Real Estate, Mutual Fund, Share Market, Banks & Post. The following results were obtained Insurance Real Estate Mutual Fund Share Market Banks & Post 16% 14% 18% 26% 26%

Invetment Preference
Banks & Posts 26% Insurance 16% Real Estate 14% Share Market 26% Mutual Funds 18%

Interpretation:The results shows that there is higher group of people who are conservative and save their money in banks and posts and also there are more number of people who wants aggressive investing like in share market, but there is mixed opinion for insurance, mutual funds and real estate.

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PREFERENCE TO BUY INSURANCE

Question: The respondents were asked that which company would they prefer to buy an insurance policy among these companies Birla Sun Life, LIC, Max New york Life insurance 8%, ICICI, SBI, ING Vysya, TATA AIG, Bajaj Allianz, Other,and following results obtained Birla Sun Life Insurance LIC Max Newyork Life ICICI Prudential SBI . 22% 18% 8% 4% 14% TATA AIG Bajaj Allianz ING Vysya Others 6% 10% 2% 16%

Preference on Buying Insurance

Other 16% Bajaj 10% TATA 6% ING 2%

Birla 22%

LIC 18% SBI 14% ICICI 4% MNYL 8%

Interpretation:The results shows that public sector companies are more preferred than private sector companies, but still in private sector reputed companies like Birla Sun Life and Bajaj Allianz is also preferred.

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CURRENT INSURANCE POLICY

Question:When respondents were asked that which companys insurance policy they have, among these companies MNYL, LIC, Birla, SBI, ICICI, Shriram, HDFC, Reliance Life Insurance, Bajaj Allianz, TATA AIG, MetLife, ING Vysya.. The Following Results were obtained

MNYL LIC Birla Sun Life SBI ICICI Prudential Shriram

10% 26% 28% 8% 10% 2%

HDFC Reliance Life Bajaj Allianz TATA AIG MetLife ING Vysya

4% 4% 6% 4% 6% 2%

Current Insurance Policy

Metlife ING 6% 2% TATA 8% Bajaj 6% Reliance 4% HDFC 4% Shriram 2% ICICI 9% SBI 8% BIRLA 17% LIC 25% MNYL 9%

Interpretation:The result shows that public sector companies like LIC, SBI as well as private sector companies like Birla Sun Life Insurance, ICICI, and MNYL have more policy holders.
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ANNUAL PREMIUM
Question: When respondents were asked how much premium do they pay annually. Option give to them were below Rs.3000, Rs.3000-5000, Rs.5000-7000, more than 7000. The following results are obtained Below 3000 Rs. 3000-5000 Rs 5000-7000 Rs. 28% 42% 20%

More than 7000 Rs. 10%

More than 7000 10%

Annual Premium

5000-7000 20%

Below 3000 28%

3000-5000 42%

Interpretation: The result shows that people prefer to pay 3000 to 5000 Rs. So Companies should form such policies.

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PURPOSE OF INVESTMENT
Question:When respondents were asked what is the basic purpose to invest in insurance policy. In the following options Cover future uncertainty, Tax deduction, Future investment, other .The following result was obtained Cover Future Uncertainty Tax Deduction Future Investment Other 34% 26% 36% 4%

Other 4%

Purpose of Investment

Future investment 36%

Cover Future Uncertainty 34%

Tax Deduction 26%

Interpretation: The result shows that people are investing in insurance for future investments or cover future uncertainty rather than tax deduction.

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FEATURE OF POLICY
Question: The respondents were asked that which feature of their policy attracted them to buy that policy and options were: Trusted Nameor Reputation of the Company, Friendly Services, Good Plans, and Low Premium. The followings results were obtained Trusted Name or Reputation of Company Friendly Services Good Plans Low Premium 40% 16% 24% 20%

Features of Policy

Low Premium 20% Trusted Name or Reputation 40% Good Plans 24%

Friendly Services 16%

Interpretation:The results shows that people while buying insurance prefer trusted name or reputation of the company than low premium, good plans, and friendly services. So company should create good reputation for it self.
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AWARENESS ABOUT SHRIRAM LIFE INSURANCE

Question: The respondents were asked whether they are aware about Shriram Life Insurance. The following results were obtained YES NO 42% 58%

Awaress about Shriram Life Insurance

Yes 42% No 58%

Interpretation: The result shows that more people are not aware about Shriram Life Insurance. So more marketing is required from the side of the firm.

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TESTING HYPOTHESIS:
HYPOTHESIS Null Hypothesis: There is significance difference between Male and Female about awareness about Shriram Life insurance. Alternative Hypothesis: There is no significance difference between Male and Female about awareness about Shriram Life insurance Particulars Aware about Shriram Life Insurance (A) Not aware about Shriram life Insurance (B) Total Male (a) 19 25 44 Female(b) Total 2 21 4 6 29 50

On the basis of this hypothesis, the expected frequency corresponding to the number of respondent and other are as follows. Expected frequency Expected of (AB) = (A B)/N 1) Aa = 2) Ba = 3) Ab = 4) Bb = 21*44/50 44*29/50 21*6/50 29*6/50 = 18.48 = 25.52 = 2.52 = 3.48

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Calculation of Chi Square: Group Observed Frequency (Oij) Expected Frequency (Eij) (Oij-Eij) (Oij-Eij)2 (Oij-Eij)2 Eij

Aa Ba Ab Bb
2

19 25 25 4

18.48 25.52 2.52 3.48

0.52 -0.52 -0.52 0.52

0.2704 0.2704 0.2704 0.2704

0.0146 0.0105 0.1071 0.0775 0.2097

Here,

calculated value is 0.2097

Degree of freedom in this case = (r-1) (c-1) = (2-1) (2-1) = 1 The table value of
2

for 1 degree of freedom at 5% level of significance is 3.841. The calculated

value is less than the table value and hence the test is accepted and shows that there is significant difference between Male and Female about awareness about Shriram Life insurance. The result shows that males are more aware about Shriram Life Insurance than female.

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AWARENESS THROUGH CHANNELS

Question: 18 Respondents who were about Shriram Life insurance were asked through which medium they were aware about the company and the options were News Papers, T.V,Contacted by Agents, Friends or Reference. The following results were obtained News Papers Television Contacted By Agent Friends or Other Reference 20% 0% 29% 51%

Awareness Through Medium

News Papers 20% Friends or Reference 51%

Contacted by Agents 29%

Interpretation: The result shows that the respondents who know about Shriram Life Insurance, knows from friends, reference or contacted by agents so marketing is inadequate because very few people know through newspapers and no one through Television.
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AWARENESS ABOUT SERVICES/PRODUCTS OF THE COMPANY

Question: 18 respondents who were about Shriram Life Insurance were asked if they know about the products of the company and following results were obtained YES NO 69% 31%

Awareness About Products

No 31% Yes 69%

Interpretation: The result shows that who respondents who knew about Shriram Life Insurance, most of them knew about their products because mainly they were contacted by agents or reference.

SATISFACTION WITH THE SERVICES

13 respondents who were aware about the service or products were asked whether the services were good enough to satisfy or not and all of them replied positively. This shows that products of the company are very good.

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FINDING, RECOMMENDATION AND CONCLUSION

68

FINDING AND RECOMMENDATIONS TO THE COMPANY

On the basis of the research project work I did, there are some findings and recommendations that have been mentioned under.  Public sector insurance companies have very large business as compared to private general insurance companies. So private companies have to go long for more and increased business.

 These private companies have to build a strong image as the PSUs have to increase their business. People put more trust on government hold companies than private insurance companies so private insurance companies have to win confidence of people and have to create strong corporate image.

 This is clear from the research that more people want to invest in banks and mutual funds then insurance, shares or other investments.

 Even in private companies Birla Sunlife Insurance, Max New York life Insurance, TATA AIG and HDFC with trusted name are more preferred to buy insurance.

 This is observed that people are willing to invest 3000-5000 Rs. So Companies should develop plans having such premiums.

 People are more willing to invest for future investments then tax deduction so such plans should be developed.

 Respondents were willing to buy policies on the basis on trusted names, good plans and low premiums.

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 Consumer awareness of Shriram Life Insurance is less as compared to the PSUs. So efforts should be made to increase the awareness of the company.

 Awareness towards the advertisement of Shriram Life Insurance is found very less among the People and most people know about the company through agents of reference. So it is advised to the company to go for more advertisements through different medias to increase the awareness of the company.

 The respondents who know about Shriram Life insurance, most of them Knew about the products.

 People who were about the services or products though that products were good enough to satisfy needs. So it shows that products are good to meet needs of people.

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CONCLUSION
India has traditionally been a high savings oriented country - often described as being on par with the thrifty Japan. Insurance sector in the US of A is as big in size as the banking industry there. This gives us an idea of how important the sector is. Insurance sector channelizes the savings of the people to long term investments. In India where infrastructure is said to be of critical importance, this sector will bring the nations own money for the nation. In 3 years time we would expect the 10% of the population to be under some sort of an insurance cover. This assuming a premium of Rs. 5000 on an average, amounts to 100 million x Rs.5000 = Rs. 500 bn. This has made the sector the hottest one in India after IT. With social security and security to the public at large being the agenda for opening the sector, the role of the regulator becomes all the more serious and one that would be carefully watched at every step. India has an enormous middle-class that can afford to buy life, health, and disability and pension plan products. The low level of penetration of life insurance in India compared to other developed nations can be judged by a comparison of per capita life premium. Clearly, there is considerable scope to raise per capita life premium if the market is effectively tapped. There has been tremendous change in the insurance history. And with it there has been continuous growth in this sector both in Indian as well as world context. The opening up of the insurance sector has changed the whole look of the industry. While the LIC in order to face the competition is coming with new strategies and new players like Shriram are leading the sector due to their strategic management and tailored made projects. From our study also we conclude that though the awareness and people opting for LIC plans are more as compare to Shriram but the later are gaining momentum in the market day by day. The demand for insurance is likely to increase with rising per-capita incomes, rising literacy rates and increase of the service sector, as has been seen from the example of several other developing countries. In fact, opening up of the insurance sector is an integral part of the liberalization process being pursued by many Developing countries.

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Insurance is a Rs.400 billion business in India and yet its spread in the country is relatively thin. Insurance as a concept has not been able to make headway in India. There has been a strong fall in insurance business in recent years. Furthermore, it can be observed that non-life business is not increasing as strongly as life business. On the other hand, growth fluctuations have been relatively small with growth rates varying between 1% and 5%. Life insurance business by contrast achieved average growth rates of 6%, although the actual rates ranged from 0% to 13%. This shows on the one hand the increasing significance of life insurance as an instrument for old age provisions and on the other hand indicates the sensitivity of life insurance to changes in the institutional and economic environment. So lets conduct this business with utmost economy with the spirit of trusteeship; thereby making insurance widely popular

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LEARNING FROM SIP

A man without practical knowledge is just like a rough diamond. To shine like a real diamond one must have practical exposure of what he has learnt. For the students of management theoretical knowledge is just like lock without key so practical knowledge is of so much important.

The summer internship project has given the opportunity to learn and know about real corporate experience and understand working environment. Practical knowledge is the best experience and on this basis, we can easily understand about what they want to say. Firstly each student knows about the theory, so that on the basis of theory, he can easily learn how to do the work and what is the best way to achieve satisfaction. That is why we can say that theory is guidelines for practical.

During my internship what we learnt in theories about financial management, human resource management, and also about marketing, I experienced all those functional departments working in the real situations which was quite amazing.

The working of the functional departments helped me like financial department allocated funds, human resource department providing training, and selection of new candidates, performance appraisal motivating employees.

Summer Internship Project also helped me to understand interaction with employees and customers and approaches to the customers.

It was really helpful for me because Shriram Life Insurance Company is based on insurance policy as product which is a push based product, so it helped me to learn about real marketing exposure.

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During our summer internship project, I did research about consumer awareness about Shriram Life Insurance, which helped me to learn general preference of people for investment, awareness about all insurance companies, preference for buying insurance and also awareness about Shriram life Insurance and their products.

The summer internship project also helped to analyze how a company is working with such competition and also with competitors doing their business.

The experience with Shriram Life Insurance was really handful and very cooperative with employees and heads of the company.

At the end it has helped that how work in real life exposure, which will ultimately help me to work when I start working in the corporate sector.

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BIBLIOGRAPHY

Books:
y I.M.Pandey: Basic Text Book of Financial Management: 9th Edition(2008): Vikas Publication y y C.B.Gupta: Human Resource Management: 4th Edition(2007): Sultanchand and Sons Kotler, Keller, Koshy and Jha: Marketing Management: 6th Edition(2007): Pearson Education y y y C.R.Kothari: Research Methodology: 4th Edition (2004): New Age International Limited Khan and Jain: Financial Management: 4th Edition (2004): Tata McGraw Hill Cooper and Schindler: Business Research Method: 9th Edition (2006): Tata McGraw Hill

Magazines & Journals:

y Walden, Michael L. (1985); The Journal of Risk and Insurance:Whole life policy is a package of options (Vol.52 no.1,pp44-58). y Slovic, Fischhoff, Lichtenstein, Corrigan and Combs, (1977) Decision Research: Insurance against small, high-probabilitylosses (vol.2, issue 2, pp83-93). y Formisano, Roger A. (1981); The Journal of Risk and Insurance: Awareness of the provisions of the regulation (Vol.48 no.1, pp59-79) y Smith, Michael L.(1982); The Journal of Risk and Insurance,Policy owner behavior towards life insurance (Vol.49 no.4, pp583-601) y Kirchler and Angela Christian Hubert:Spouses relative dominance in decisions concerning different forms of investment (.1999; accepted 1999; Available online 1999); Institute of Psychology, University of Vienna.

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Websites:
www.shriram.com www.irda.com www.apnapaisa.com www.indiainfoline.com www.sanlam.com

Other Materials:
The Hindu- Business Line, Catalogs, Broachers, Business Operation Prospects

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QUESTIONNAIRE:
A Study on Consumer Awareness about Shriram Life Insurance
1. Name:

2. Age: 3. Gender: 4. Occupation: Male Business Female Service Graduate None Postgraduate

5. Education Undergraduate 6. Monthly Income: Below 10000

10000-2000020000-30000

more than 30000

7. Where do you prefer to invest your money? Insurance Real Estate Bank & Post Mutual Funds

Share MarketOthers 8. Which companys insurance policy you prefer the most? Birla SunlifeLICMax New York Life ICICI Prudential SBIING VysyaTATA AIG Bajaj Other

9. In which you have any insurance policy? Write the name of the company 10. How much do you pay annually? Below 3000 3000-5000 5000-7000 More Than 7000 11. What is the basic purpose of your investment in Insurance? Cover Future Uncertainty Tax DeductionFuture Investment Other 12. Which feature of your policy attracted you to buy it? Good Plans Friendly Services Low Premium
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Trusted Name or Reputation of Company

13. Are you aware about Shriram Life insurance? Yes No If yes then through which medium, Newspapers Television Contacted By Agent Friends or other Reference 14. Are you aware about services/products of Shriram Life Insurance? Yes No 15. Are you satisfied with the services? YesNo

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