Faculty Guide:-

Submitted by:Sumit Dixit MBA 2nd yr

Subject

Executive Summary Objectives.. Industry Profile

Major Companies Company Profile SWOT Analysis

Significance Research Process..

Research Design

Feasibility of Sampling. Questionnaire.. Conclusion. Bibliography.

Among all the investment avenues insurance schemes are the best investment options and are giving significant return. The growth in Indian economy will lead to boom in the market in coming years. The increasing numbers of players in the life insurance industry has resulted in developing of awareness among people for getting themselves and their families insured and hence life insurance companies playa major role in the increasing taste of the customers for insurance, be it life insurance or general insurance. This report also deals with the findings and references regarding Mutual Funds and growing Mutual Fund industry, it also throws light on present economy in lieu with Mutual funds and its growth. It also helps us to know what the perception of the investor is. And with out knowing investors perception no company can stay in the market for a longer period of time.

The exclusive objective of the study is to analyze the actual effect of the onset of various life insurance industries on the sales of L.I.C. it aims at checking out if the sales of plans and schemes of LIC have gone down or up due to the onset of various private players in life insurance sector.

Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of potential financial loss. Insurance is defined as the equitable transfer of the risk of a potential loss, from one entity to another, in exchange for a premium and duty of care. The business insurance is related to the protection of the economic values of the assets. Every asset has a value. The asset would have been created through the efforts of the owner. The asset is valuable to the owner, because he expects to get some benefits from it. The benefit may be mcome or something else. It is a benefit because it meets some of its needs. Every asset is expected to last for a certain pen-od of time during which it will perform. There is a lifetime for a machine in a factory or a cow or a motorcar. None of them will last forever. The owner is aware of this and he can also manage his affairs that by the end of the period or lifetime or a substitute is made available and thus he makes sure that the value or income is not lost. However, the asset may get lost earlier. An accident or any other unfortunate event may destroy it or make it non-functional, in that case, the owner and those deriving benefits there from would be deprived from the benefit and the planned substitute would not have been ready. There is an adverse or unpleasant situation. Insurance is a mechanism that helps to reduce the effect of such adverse situations. Life insurance in India made its debut well over 100 years ago. In our country, which is one of the most populated in the world, the prominence of insurance is not as widely understood, as it ought to be. What follows is an attempt to acquaint readers with some of the concepts of life insurance, with special reference to LIC.

LIC Bajaj Allianz ICICI Prudential SBI Life HDFC Standard Max New York Reliance Life Birla Sun Life Tata AIG ING Vysya Sahara Life

Kotak Mahindra old mutual life insurance is a joint venture between kotak mahindra bank ltd., its affiliates and old mutual pIc. The companies one the fastest growing insurance companies in India and has shown remarkable growth since its inception in 2001. Kotak mahindra group believes in offering its customers a-life time of value. A commitment that has made it a leading financial services group employing around 12300 employees in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 320 cities and towns in India and offices in New York, London, Dubai, Mauritius and Singapore. The group services around 2.9 million customer accounts. Old mutual plc is an international savings and wealth Management Company based in the U.K. originated in South Africa in 1845, it is among the 50 largest companies in the ftse 100.

The group has a balanced portfolio of businesses offering asset management, life insurance, banking and general insurance services in oveer40 countries, with focus on South Africa, Europe and the United States, and a growing presence in Asia pacific. Old mutual pIc. Employs approximately 53000 employees world wide and is listed on the London and Johannesburg stock exchanges. Om kotak mahindra is a joint venture between kotak. mahindra, which is an Indian company and old mutual, which is a foreign company. It is a 74%26% joint venture between the two. It was established by Mr. Udai kotak in 1985 along with 2 other people who were great aspirants and wanted to establish themselves in the world and earn name and fame.

STRENGTH: Old mutual has 160 years experience ~ Wide Network Based on banking Best Training Procedure Pure financial Sector WEAKNESS : Penetration is low There is no health plans Ulip is not in small plans Infrastructure is low OPPORTUNITY: Opportunity in rural areas. Term plan is cheap and best. THREATS: LIC is the big competitor No availability of health plans

Customer satisfaction is the crux of the success of any company. To achieve success, the foremost thing is to be in pace with the customer needs. Clear consistent and systematic improvement is necessary to demonstrate that customer satisfaction is a strategic business objective.

Understanding The Project Firstly I was enriched with the philosophy of investment and insurance. secondly I tried to understand that what made investors comfortable in making investments in insurance sector and which are the major insurance schemes in which investors . commonly used to investment Staller Problem definition The objectives were set and sampling, methodology and determined I along with the expert guidance of my project guide prepared a well- designed' questionnaire.

Decision regarding what, where, when, how much to invest for getting higher returns with minimum risks and by what means? The research design encompasses the following information Data source: data collected was primary as it was collected by means of questionnaire consisting from various investors. Research instrument. Structured questionnaire consisting of open-ended questions were used for used for purpose of research. Contact method; personal interview Research approach; field survey Research type; conclusive (descriptive) a descriptive approach has been adopted in the study. The data has been generated through extensive survey method.

Data collection I visited the city of Kanpur. Here data collection was done by the way of questionnaire. I met various investors, direct selling, and agents and queried regarding the questions in the questionnaire. In the totality 25 respondents were visited by me. The various parameters on which the investors were: Investment in insurance schemes Most preferred insurance scheme for investment and risk cover . i- Returns of insurance schemes Dominating influence in financial decision making + Criteria for investment and insurance evaluation f Minimum time period for blocking the funds Satisfaction towards investment in insurance schemes + Risk involved investment and insurance schemes. Sampling design It encompasses the following information. Sampling universe Investors of various insurance companies.

Sample size: 50 Sample procedure: purposive, judgment, and selective sampling Samplin2: tvpe: convenient sampling Sta2: e 6th Data analvsis: Data until analyzed is of no use. Analysis was done in the order of investors visited and then a consolidated analysis was done (refer to annexure) Data interpretation: Data was interpreted and inferences were drawn and transformed to meaningful information to help management to get a vivid picture and to make accurate decision there from

The basic types of research are as follows: Descriptive vs. analytical: Descriptive research includes surveys and fact finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. In analytical research, on the other hand, the researches have to use facts or information already available and analyze these to make a critical evaluation of the material. Applied vs. fundamental: research can either be applied (or action) research or fundamental (or basic or pure) research. Applied research aims at finding a solution for an immediate problem facing a society or an industrial! Business organization, whereas fundamental, research is mainly concerned with generalizations and with the formulation of theory. Quantitative vs. Quantitative: quantitative research is based on the measurement of quantity or amount. It is, applicable to phenomena that can be expressed in terms of quantity. Qualitative research, on the other hand, is concerned with the qualitative phenomena, LIC., phenomena relating to or involving quality or kind.

Conceptual vs. empirical: conceptual research is the one that is related to some abstract idea(s) or theory. It is generally used by philosophers and thinkers to develop new concepts or to reinterpret existing ones. On the other hand, empirical research relies on experience or observation alone, often without regard for system and theory. It is data based research. Coming up with conclusions which are capable of being verified by observation 'or experiment.
Other: all other types of research are variation of one or more of the above stated approaches, based on either the purpose of research, or the time required to accomplish research, or the environment in which research is done, or on the basis of some other factor From the point of view of time, we can think of research either as one time research or longitudinal research. In the former case, the research is confined to a single time period, whereas in the latter case, the research is carried over a span of time.

Sample taken for the survey is very feasible and is used in practice for a variety of reasons such as

1.Sampling can save time and money. A sample study is usually less expensive than a census study and produces results at a relatively faster speed. 2. Sampling may enable more accurate measurements for a sample study is generally. Conducted by trained and experienced investigators. 3. Sampling remains the only way when population contains infinitely many members. 4. Sampling remains the only choice when a test involves the destruction of the. item under study. Sampling usually enables to estimate the sampling errors and, Thus, assists in obtaining information concerning some Characteristics of the Population.

Dear sir/ mam, I would request you to kindly respond to the following questionnaire. This study is meant exclusively for academiC purpose. I would like to extend my deed sense of gratitude for providing valuable insight that surely help in enriching my kn.owledge about today's investment trend and also customer's perception about the invasion of private companies in the scenario. Personal details NAMEOccupationAddressPhone number1. How Many members are there in your family? 2. How many earning members are there in your family? 3. What is the annual income of your family? 4. Are you conscious of yourself and your family? YES [ ] NO [ ]

5. Which mode of investment do you prefer the most? Insurance Gold Equity Mutual funds Others land Capital

6. Do you know about ULIP? YES [ ] NO [ ]

7. Which type of investor are you? Long term Short term Both None

8. Which sector do you prefer the most for investment? Government Private.

9.Do you think that in present scenario people are diverting players? Yes [ ] no [ ]

for" investment towards private

10.Have you taken any insurance and investment tool for your self and your family? Yes [ ] NO [ ] 11. Do you think insurance is good for future protection? Yes [] no [ ] 12. Do you have any investment with any private insurance company? YES [ ] NO [ ]

13. If yes, then why? On the basis of: Returns Services Better prod ucts Flexibility Transparency Face value of relatives Others 14. Do you think private companies have created an impact on LIe? YES [ ] NO [ ]

15. Mention any four companies in order of preference? 1) 2) 16. Have you taken any policy from lic? YES [ ] NO [

17.Do you think that the market share of lie is decreasing day by day? YES [ ] NO [ ]

18. Do you know any person who has switched from lie to any private players?

YES [ ]

NO [ ]

19.your overall experience in kotak life insurance? YES [ NO [ ]

Through the survey conducted by me, ~ reached the following conclusions: Among all the people visited by me a major proportion of the respondents were insured The people belonging to the age group 40-50 and above have a general feeling and inclination towards LIC. They have an in-depth feeling that with LIC their money is safe. People are not aware of the fact that all the insures prevailing these day, have a large part of their money invested with IRDA kept as a security and they all follow the general rule and guidelines laid down by IRDA, and that too vary strictly. On the other hand, the youngsters and the people belonging' top the age group 30-40 understand that their money will grow unto a better extent in private insurer because their management is such that they offer greater and better opportunities for exploitation and so they have invested their money in private insurers and not much in LIC if at all they have invested. A lot is stall to be done to make the people aware for insurance and to eradicate the general feeling imbibed in the people that insurance is not for their benefit but for the benefit of the company alone.

Publications: Marketing management Research methodology I Insurance in India Insurance chronicle Life Insurance Today

By-Philip kotler By- C.R.kothari By-P.S.palande ICFAI Edition Journal

WEBSITE VISITED www.Kotaklifeinsurance.com www.google.com www.insuremagic.com www.irdaindia.com www.msn.com

THANK YOU