Professional Documents
Culture Documents
Submitted By:
Mr. Rajeev Singh Rathod
The MBA training helps the students to understand and gain knowledge about
the industry and market environment. It develops skills of analyzing and
interpreting problems through application of concepts and techniques of
management.
Basically when we are playing with computer in every part of life, I used it in my
project not for the ease of my but for the ease of result explanation to those who
will read this project. The project presents the role of financial system in life of
persons.
I had toiled to achieve the goals desired. Being a neophyte in this highly
competitive world of business, I had come across several difficulties to make the
objectives a reality. I am presenting this hand carved efforts in black and white.
If anywhere something is found not in tandem to the theme then you are
welcome with your valuable suggestions.
Acknowledgement
(Signature of Student)
RAJEEV SINGH
Name of the Student
DECLARATION
Of
PGDM
To
CIMR
Affiliated to
AICT
Is my original work & not submitted for the award of any other Diploma,
fellowship or other similar title or prizes.
Table of Contents
2.11 SWOT
2.12 Conclusion
Almost every person existing in this world is associated with insurance, directly or
indirectly. Directly, in the sense that he / she has insured his/her life by some kind of insurance
policy from any company. Indirectly, in the sense they must have insured the assets of their
won for example their house, car, or any thing else.
Insurance being transacted by an English company, the European and the Albert. The
first insurance company the Bombay Mutual Assurance Society Ltd. formed in 1870. The
Oriental Life Assurance Co. in 1874 and the Empire of Indian of 1897 followed this.
Later, the Hindustan Cooperative was formed in Calcutta, the United Nations in Madras,
the Bombay Life in Bombay, the National in Calcutta, the New India in Bombay, and the A
Jupiter in Bombay and the Lakshmi in the New Delhi.
These were all Indian companies, started as a result of the Swadeshi movement in the
early 1900's by the year 1956, when the life insurance business was nationalized and the Life
Insurance Corporation of India (LIC) was formed on the Its September 1956, there were 170
companies and 75 provident fund societies transaction life insurance business in India. After
amendments to the relevant law in 1999, the LIC did not have the exclusive privilege of doing
life insurance business in India. By 31-3-2002, 11 new insurers had been registered and had
begun to transact life insurance business in India.
Ancient Indian history has preserved the earliest traces of insurance in the form of
marine rade loans or carriers contracts. These can be found in KaLIClya's Arthashastra,
Yajnyavalkya's Dharmashastra and Manu's Smriti. These works show that the system of credit
and the law of interest were well developed in India. They were based on a clear appreciation
of the hazard involved and the means of safeguarding against it.
The Indian Life Assurance Companies Act, 1972 as the first statutory measure to
regulated life insurance business. Later in 1928, the Indian insurance companies act was
enacted, to enable the govt. To collect statistical information about both life and non-life
insurance business transacted in Indian-by-Indian and foreign insurers, including the provident
insurance society. Comprehensive, arrangements were, however, brought into effect with the
enactment of the insurance act, 1938.
Efforts in this direction continued progressively and Act was amended in 1950, making
for reaching charges, such as requirement of equity capital for companies carrying on life
insurance business, stricter controls on investment of life insurance companies, ceiling on the
expenses of management and agency commission etc.
By 1956, 154 insurers, 16 non-Indian insurers and 75 provident societies were carrying
on life insurance business of India. On 19th January 1956, the management of the entire life
insurance business of 29 Indian insurers and provident insurance societies and the Indian life
insurance business of 16 non-Indian insurance companies then is operating in India. Insurance
Corporation came into existence.
An ordinance was passed in 1968 to amend the insurance Act to regulate/ control non-
life insurance resulting in set up of GIC in 1973. Malhotra committee submitted its report in
1994 and recommended means to reintroduce an element of competition by with drawing the
exclusivity of LIC and GIC. In 1997, Insurance Regulatory Authority (IRA) was established
which was later re-styled as IRDA in 1999.
PRESENT SCENARIO OF THE INSURANCE SECTOR
Liberalization
commitments of the country to help in disciplining future economic policies will include the
insurance reforms. When the world over, insurance, markets have been opened up, India
cannot remain in isolation. Globalization is the new economic reality, which is here to stay,
heralding a new era of insurance in India. With the opening of the insurance industry, India
stands to gain the following major advantages:
Globalization will provide improved opportunities to the customers for better products,
It will secure for India larger inflows of foreign capital needed to sustain our GDP
growth.
The term “market” is simply a term to “describe the facilities for buying and selling
As with any other market that for insurance consist of
Buyers
Sellers
Intermediaries
THE BUYERS
The buyers of the insurance or the insuring public include every one who requires insurance.
Firstly, there are private individuals who buy life insurance policies, household insurance
Secondly, there are persons who buy industrial life assurance, which appeals to the
wage-earners (as distinct from the salaried class) or the lower income members of the
community.
Thirdly, there are buyers who seek insurance with Lloyd’s underwriters, through Lloyd’s
brokers.
Finally, the rest of the buyers comprise all persons, association, Firm joint stock
THE SELLERS
Then there are sellers of insurance who are known as insurers, and have huge overseas
connections besides their home business. Insurers my be divided into several groups,
according to their constitLICon. The principal groups are:
Mutual insurers
Cooperative Societies
Lloyd’s underwriters
Self-insurers
State insurance
INTERMEDIATE
Like any other market, the intermediate bring the buyers& sellers together but it is possible to
approach an insurance company directly & arrange insurance counter, except in case of
Lloyd’s. Generally the business of insurance is sold by agent or middle man to call at the
homes of the would be policy holders.
insurance agent
insurance broker
Lloyd’s broker
Reforms in the Insurance sector were initiated with the passes of the IRDA Bill in Parliament in
December 1999. The IRDA since its incorporation as a statutory body in April 2000 has
fastidiously such to its schedule of framing regulations and registering the private sector
insurance companies.
The other d4ecisoin taken simultaneously to provide the supporting systems to the insurance
sector and in particular the life insurance companies was the launch of the IRDA online service
for issue and renewal of licenses to agents.
Types of insurance
Any risk that can be quantified can potentially be insured. Specific kinds of risk that may give
rise to claims are known as "perils". An insurance policy will set out in detail which perils are
covered by the policy and which are not. Below are (non-exhaustive) lists of the many different
types of insurance that exist.
A single policy may cover risks in one or more of the categories set out below. For example,
auto insurance would typically cover both property risk (covering the risk of theft or damage to
the car) and liability risk (covering legal claims from causing an accident).
A homeowner's insurance policy in the U.S. typically includes property insurance covering
damage to the home and the owner's belongings, liability insurance covering certain legal
claims against the owner, and even a small amount of coverage for medical expenses of
guests who are injured on the owner's property.
Business insurance
Can be any kind of insurance that protects businesses against risks. Some principal subtypes
of business insurance are (a) the various kinds of professional liability insurance, also called
professional indemnity insurance, which are discussed below under that name; and (b) the
business owner's policy (BOP), which bundles into one policy many of the kinds of coverage
that a business owner needs, in a way analogous to how homeowners insurance bundles the
coverage’s that a homeowner needs.
Auto Insurance
Auto insurance protects you against financial loss if you have an accident. It is a contract
between you and the insurance company. You agree to pay the premium and the insurance
company agrees to pay your losses as defined in your policy. Auto insurance provides
property, liability and medical coverage:
Property coverage pays for damage to or theft of your car.
Liability coverage pays for your legal responsibility to others for bodily injury or property
damage.
Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost
An auto insurance policy is comprised of six different kinds of coverage. Most countries require
you to buy some, but not all, of these coverage’s. If you're financing a car, your lender may
also have requirements.
Most auto policies are for six months to a year. Your insurance company should notify you by
mail when it’s time to renew the policy and to pay your premium.
Home Insurance
Home insurance provides compensation for damage or destruction of a home from disasters.
In some geographical areas, the standard insurances exclude certain types of disasters, such
as flood and earthquakes that require additional coverage. Maintenance-related problems are
the homeowners' responsibility.
The policy may include inventory, or this can be bought as a separate policy, especially for
people who rent housing. In some countries, insurers offer a package which may include
liability and legal responsibility for injuries and property damage caused by members of the
household, including pets.
Health Insurance
Health insurance policies by the National Health Service in the United Kingdom (NHS) or other
publicly-funded health programs will cover the cost of medical treatments. Dental insurance,
like medical insurance, is coverage for individuals to protect them against dental costs. In the
U.S., dental insurance is often part of an employer's benefits package, along with health
insurance.
Disability Insurance
Disability insurance policies provide financial support in the event the policyholder is
unable to work because of disabling illness or injury. It provides monthly support to help
Disability overhead insurance allows business owners to cover the overhead expenses
disabled and can no longer work in their profession, often taken as an adjunct to life
insurance.
Workers' compensation insurance replaces all or part of a worker's wages lost and
Casualty Insurance
Casualty insurance insures against accidents, not necessarily tied to any specific property.
Crime insurance is a form of casualty insurance that covers the policyholder against
losses arising from the criminal acts of third parties. For example, a company can obtain
Political risk insurance is a form of casualty insurance that can be taken out by
businesses with operations in countries in which there is a risk that revolLICon or other
Life Insurance
Annuities provide a stream of payments and are generally classified as insurance because
they are issued by insurance companies and regulated as insurance and require the same
kinds of actuarial and investment management expertise that life insurance requires.
Annuities and pensions that pay a benefit for life are sometimes regarded as insurance against
the possibility that a retiree will outlive his or her financial resources. In that sense, they are the
complement of life insurance and, from an underwriting perspective, are the mirror image of life
insurance.
Certain life insurance contracts accumulate cash values, which may be taken by the insured if
the policy is surrendered or which may be borrowed against. Some policies, such as annuities
and endowment policies, are financial instruments to accumulate or liquidate wealth when it is
needed.
In many countries, such as the U.S. and the UK, the tax law provides that the interest on this
cash value is not taxable under certain circumstances. This leads to widespread use of life
insurance as a tax-efficient method of saving as well as protection in the event of early death.
In U.S., the tax on interest income on life insurance policies and annuities is generally
deferred.
However, in some cases the benefit derived from tax deferral may be offset by a low return.
This depends upon the insuring company, the type of policy and other variables (mortality,
market return, etc.). Moreover, other income tax saving vehicles (e.g., IRAs, 401(k) plans, Roth
IRAs) may be better alternatives for value accumulation. A combination of low-cost term life
insurance and a higher-return tax-efficient retirement account may achieve better investment
return.
Property Insurance
This tornado damage to an Illinois home would be considered an "Act of God" for insurance
purposes
Property insurance provides protection against risks to property, such as fire, theft or weather
damage. This includes specialized forms of insurance such as fire insurance, flood insurance,
earthquake insurance, home insurance, inland marine insurance or boiler insurance.
Automobile insurance
known in the UK as motor insurance, is probably the most common form of insurance and may
cover both legal liability claims against the driver and loss of or damage to the insured's vehicle
itself. Throughout the United States an auto insurance policy is required to legally operate a
motor vehicle on public roads. In some jurisdictions, bodily injury compensation for automobile
accident victims has been changed to a no-fault system, which reduces or eliminates the ability
to sue for compensation but provides automatic eligibility for benefits. Credit card companies
insure against damage on rented cars.
Driving School Insurance insurance provides cover for any authorized driver whilst undergoing
tuition; cover also unlike other motor policies provides cover for instructor liability where both
the pupil and driving instructor are equally liable in the event of a claim.
Aviation insurance insures against hull, spares, deductibles, hull wear and liability risks.
machinery.
Builder's risk insurance insures against the risk of physical loss or damage to property
during construction. Builder's risk insurance is typically written on an "all risk" basis
covering damage due to any cause (including the negligence of the insured) not
Crop insurance "Farmers use crop insurance to reduce or manage various risks
associated with growing crops. Such risks include crop loss or damage caused by
insurance policies feature a high deductible. Rates depend on location and the
A fidelity bond is a form of casualty insurance that covers policyholders for losses that
Flood insurance protects against property loss due to flooding. Many insurers in the
U.S. do not provide flood insurance in some portions of the country. In response to this,
the federal government created the National Flood Insurance Program which serves as
Landlord insurance is specifically designed for people who own properties which they
rent out. Most house insurance cover in the U.K will not be valid if the property is rented
out therefore landlords must take out this specialist form of home insurance.
Marine insurance and marine cargo insurance cover the loss or damage of ships at sea
or on inland waterways, and of the cargo that may be on them. When the owner of the
cargo and the carrier are separate corporations, marine cargo insurance typically
compensates the owner of cargo for losses sustained from fire, shipwreck, etc., but
excludes losses that can be recovered from the carrier or the carrier's insurance. Many
marine insurance underwriters will include "time element" coverage in such policies,
which extends the indemnity to cover loss of profit and other business expenses
principal.
terrorist activities.
Credit Insurance
Credit insurance repays some or all of a loan when certain things happen to the borrower such
as unemployment, disability, or death.
• Mortgage insurance insures the lender against default by the borrower. Mortgage
insurance is a form of credit insurance, although the name credit insurance more often
is used to refer to policies that cover other kinds of debt.
INDUSTRY OVERVIEW
LIFE INSURERS :
GENERAL INSURERS
For more details, please contact our branch or divisional office. An LIC it will be glad to help
you choose the life insurance plan to meet your needs and render policy servicing.
Banks v/s Insurance
BANKS INSURANCE
If there is some one who would suffer economic hardship if you died, then the answer is
yes............you need life insurance! Families with young children have a clear need of life
insurance. If both spouses work, the loss of one income will cause the family immediate
economic hardship and make it harder for them to realize future goals, such as paying for the
children's education.
But even if one spouse works 'inside the home' and doesn't being in a formal income, his or
her death will require the surviving spouse to hire child care, housekeepers and other
professional to help run the house hold and that can be a significant new expense.
If you are married without children or single, then you may need life insurance to protect your
partner or surviving family members against the costs associated with your death. Funeral
expenses, probate and administrative fees, outstanding debts, special obligations to charities
and federal and state taxes are costs that all of us must consider. And, they can add up
quickly. Unless you already have sufficient financial resources, your survivors will probably
need life insurance to cover these expenses.
Along with your savings and investment strategy, life insurance should be a part of your long
term financial planning. You may not like to think about it, but your death can be costly to your
loved ones. At the very least, there will be funeral and burial costs.
There may also be estate taxes and outstanding debts to pay, such as medical expenses not
covered by health insurance. If you have dependents, they will have to cope up with these
costs while no longer having your income to rely on. The proceeds from a life insurance policy
can be of tremendous value at this time.
THE BEGINNINGS OF LIFE INSURANCE
Life assurance can be traced back to the sixteenth century, when shot – term assurance were
usually affected as collateral security for loans, indeed, the first life assurance were marine
insurance underwriters; policies often being written on the life of a merchant sailing with his
goods. The first recorded life policy was in 1583, which was subject to an underwriters of
England on June 18, 1583, for “12 months” for $382.6s.8d.
On the life of fine William Gigots. “Through, the policy concluded with the words, “ God send
the said William Gibbons health and life”, he died on may 9, 1584. the underwriters contended
that the policy period of “12 months” related to lunar months, which had expired. But the court
ruled out that payment must be made and the underwriter paid the sum assumed. Besides, in
the sixteenth and seventeenth centuries, evidences of the existence of shot – term policies are
available, which cover the risk of death within a limited period only.
They were particularly used for merchants and others on voyages or on the lives of debtors as
security against loan. In the seventeenth and eighteenth centuries mutual assurance the
Amicable Society, the Equitable Life Assurance Society and Westminster Society have and
important place, Subsequently Life Assurance Act. 1774 and Life Assurance Companies Act,
1870 were passed to established the business. In India the first Insurance Act was passed in
1912, which was replaced by a comprehensive Insurance Act of 1938
.
This Act was amended in 1950. Finally, the Government of India nationalized the entire life
insurance business in the year 1956 by passing the life Insurance corporation Act, 1956. Thus
at present the entire the insurance boniness in being transacted by the Life Insurance
Corporation of India, which is popularly known as LIC.
The Corporation is an autonomous body and run on sound business principles. Its central
offices are located in Bombay and there are Zonal, Divisional, Branch and sub-offices both in
India and aboard. Thus, we see that in last 2 years a large pool of private as well as other
financial InstitLICon have come forward to provide this very service of insurance like ICICI
PRUDENTIAL, BIRLA SUN LIFE INSURANCE, SBI LIFE INSURANCE, HDFC STANDARD
LIFE INSURANCE etc. the share of private life insurance players has also increased
marginally.
Endowment policy
Term Policy
Annuity Policy
ENDOWMENT POLICY
Endowment insurance is a type of life insurance contract, which provides for the sum assured
to be paid wither at death or after a fixed number of years. Whichever comes first? The
assured when affecting a policy selects the number of years.
Thus, under this plan the company promises to pay a stated amount of money to the
beneficiary at one. If the inured dies during the life of the policy (called the endowment period)
or to the insured himself if he survives up to the end of the endowment period. I
n other words, an endowment policy provides for the payment of the insured amo9unt either on
death or on the attainment of a certain age, whichever is earlier. Suppose, a man takes an
endowment policy for 20 years or even after a few weeks or days of taking lout the policy, the
sum assured becomes payable to his dependents. As against this if he survives this periods,
they policy “matures” and he will himself receive the payment of the sum assured on tehexpiry
of 20 years.
A term insurance policy is the oldest form of the policy. here the insurer makes the payments
only if the insured dies within the the “ term “ of the policy of specified policy. In other words it
is conflicts between the insured & the insurer whereby he company promise pay the face
amount of the policy to a third party if the insured die before a certain or age however if
insured doesn’t die during the specified time the contract expired & is treated a cancelled the
insurer pay nothing on the policy .
thus , this contract run only for a temporary specified period of time & that a little or no cash
value accumulated as saving or emergency fund for the policyholder . The policy may be
written for assured a period of one year & may be issued for; longer period 5, 10, 20 years.
This is plan of special interest to those who need extra protection for a short duration like
businessmen on journey, for as temporary cover to secure as an outstanding debt.
TERM INSURANCE POLICIES ARE
Ordinary Policy
Convertible Policy
Decreasing Policy
4. Tax Relief:
The Indian Income-Tax allows deduction of certain portion of the taxable income,
which is diverted to payment of life insurance premiums from the total income tax liability.
When this tax relief is taken into account, it will be found that the assured is in effect paying a
lower premium for his insurance.
.
Research
Methodology
Objective of Study
Project study which is being conducted by me for the Eight weeks is not only a formality for
the fulfillment of the two year full time course of BACHLOR OF BUSINESS
ADMINISTRATION But being a management student I tried my best to extract best of the
information available in the market for the use of society and people. The professional
objectives which are being covered by me in this project are as following-
To know the perception and conception of customers towards insurance products and
MARKETING RESEARCH
Marketing research is the
function which likes the consumers, customers & public t the marketer through information
which is used to identify & define marketing opportunities & problems, generate, refine &
evaluate marketing action; monitor marketing performances & improve understanding of
marketing as a process.
EXPLORATORY RESEARCH –
It seeks to discover new relationships. All marketing research projects start with it. This is a
preliminary phase & is absolutely essential in order to obtain a proper definition of problems
at hand. The major emphasis is on the discovery of ideas & insight.
CONCLUSIVE RESEARCH-
Conclusive research provides information that helps the execLICve so that he can make a
rational decision. This study has done well while attempting to arrive at a more clear
description of an apparent problem.
In the initial stage, up to the final discussion of the questionnaire, we conducted our research
through exploratory research. It includes the survey of related literature and articles, depth
interview and public opinion through questionnaire. It focuses on the discovery of new ideas.
For this type of research respondents should be given sufficient time express themselves. This
type of research can be conducted to find out the possible causes like the sales might increase
due to advisors efficiency.
Sample Design:
LOTTERY METHOD in which individual units are picked up from whole group not deliberately
by some mechanical process. The result obtained from probability, we can measure the errors
of estimation or the significance of results obtained from a random sample and their facts
brings out the superiority design over the rest sampling design. The sample will have the same
ON the basis of our survey in Alwar market, insurance is a growing industry & the easiest
mean to earn more & more money.
LIC
Allianz bajaj
SBI life
Aviva
SAMPLE SIZE: Arbitrary kept at 150 for convince and timeliness.
TIME: 1st Nov. - 15th Dec. 2008
Collection of Data
This step helps in deciding and selecting the techniques that shall be used to collect relevant
information which can be used to solve the research problem.
Primary data
1. Secondary data
2. Tertiary data
1 PRIMARY DATA
The primary data are those which are collected afresh and for the first time, and thus happen
to be original in character.
Primary data are:
♦ Interview method
♦ Questionnaire method
2 SECONDARY DATA
Secondary data means data are already available i.e., they refer to the data, which have
already been collected and analyzed by someone else.
♦ Books
♦ Magazines
♦ Newspapers
♦ Report
Each and every project study along with its certain objectives also has scope for future. And
this scope in future gives to new researches a new need to research a new project with a new
scope. Scope of the study not only consist one or two future business plan but sometime it also
gives idea about a new business which becomes much more profitable for the researches then
the older one.
Scope of the study could give the projected scenario for a new successful
strategy with a proper implementation plan. Whatever scope I observed in my project are not
exactly having all the features of the scope which I described above but also not lacking all the
features.
Research study could give an idea of network expansion for capturing more market and
customer with better services and lower cost, with out compromising with quality.
In future customer requirements could be added with the product and services for getting
Consumer behavior could also be used for the purpose of launching a new product with
extra benefits which are required by customers for their account (saving or current) and/or
Factors which are responsible for the performance for company can also be used for the
Competitors
Customer Behavior
Current Scenario
Governmental Policy
Economic conditions
As the movement throughout the city is not possible due to certain constraints so the
Lack of knowledge about the products of ICICI Prudential and their total
Some respondents did not take the Survey seriously and did not give appropriate
time.
The analysis has been classified on the basis of view expressed by respondents.
It was not possible to understand thoroughly about the different marketing aspects of
As stipend money was not given it was difficult to continue the project work
All the work was limited in some limited areas of Alwar so the findings should not be
generalized.
Statistical Analysis
In this segment I will show my findings in the form of graphs and charts. All the data which I got
form the market will not be disclosed over here but extract of that in the form of information will
definitely be here.
Detail:
Area :INDORE
: 2. Secondary
Industry : Insurance
Respondent : Customers
Company profile
Shriram Group
Group Profile
Shriram Group, established in 1974, is among the leading corporate houses in India and is
a major player in the Indian financial services sector. The Shriram Group’s focus is on
financial services that reach out to a large number of common people – providing them
opportunities to improve their prosperity. Financial Services constitute the core business
of the Group, with Shriram being a clear leader in the truck financing and chit business.
Shriram Transport Finance Company, is the flagship company of the Group, It is the
largest Commercial Vehicle Financing NBFC in the country. Chit Fund Business of the
Shriram Group is Numero Uno in the industry across India. In Consumer Finance, the
Shriram Group has major presence in South India.
Shriram Group had entered the insurance business with a long term focus and to provide
better value and service to the customer. It has partnered with Sanlam, a leading insurer
in South Africa, for both Life and Non Life Insurance business. The Group had entered in
the life Insurance business in December’05 and will be launching its Non-Life insurance
business in July’08.
The Group is currently focusing in a major way in the distribLICon of financial products
including stock broking business and wealth management. Shriram Group has been
pursuing diversification in areas other than financial services. Currently the group has
presence in project engineering, property development, auto ancillaries and software
services and is also looking to enter other industries.
The group has partnered with many domestic and foreign partners. Due to its large size,
reach and reputation it enjoys the patronage of a large number of banks and financial
institLICons.
Shriram Network is one of its kinds in India having presence in virtually every state in the country with
high level of penetration in the Southern States.
Network Size at a Glance
Components Strengths
Assets Under Management (Rs Cr) Over 32,570
Branch Network (Nos.) Over 1,600
Manpower Strength (Nos.) Over 31,800
Customer Base (Nos.) Over 56,00,000
• Life Insurance
• Non-LifeInsurance
• Insurance Policy
There are 3 Registrars who records all the transactions of Insurance Policy in India.
Providing timely and accurate information is their main obligation.
They are as follows:
1. CAMS (Computer Age Management Services Pvt. Ltd )
2. Karvy
3. Franklin
1. CAMS
Computer Age Management Services Pvt. Ltd. (CAMS) offers a comprehensive
package of Transaction Processing and Customer Care services to the Insurance
Policy industry, and has been constantly raising the bar in customer service since1995.
Working of CAMS
Similarly Karvy & Franklin also provide such services to the Distributer
companies.
Working of SFSL
Since it is a distributor Company., it is entitled to get commission from the Companies.
for which it works. Every month large number of transactions takes place so for that huge
data, MIS is maintained by the Company. Then for commission purpose Company first of
all download the data of transactions from these registrars & then match it with our own
data. Each company has an ARN (AMFI Registration number) (45888) so that it can
download only its own data. It is match on either of the following parameters:
Application
Folio Number
Investor Name
Cheque Number
PAN Number
Investment Amount etc.
On the basis of above mentioned criteria if the data tally with downloaded information
then the approved commission is granted to concerned person.
Temporary Receipt: (This is the key term). The receipt which is given by our agent to
investor for assurance that the business has been logged in by Shriram Fortune SolLICons
Ltd, It works like acknowledgement that SFSL recd the investment amount from investor.
MIS is maintained by the Company on the basis of all the data send by States TR
(Temporary Receipt) on MS Excel & Idea. This Excel is send to Head Office for
commission purpose. Then company compiles all the data.
Process -02
Now the company has two data:
1. TR which is provided by State.
2. Company MIS (Online downloaded or Received with respective companies).
Process -03
Matching both the data with either of the following parameters:
Cover Note
Policy Number
Application no.
Folio Number
Investor Name
Cheque Number
PAN Number
Investment Amount etc.
Respective Company Name
Scheme
Location
Branch
Agent Code
Process-04
After matching if:
Matched: Available for Payment
Cancelled / Rejected: Cheque Bounce / Policy Cancelled
Unmatched: Unmatched / Incomplete
Process -05
Insurance Policy: KFC(Karvin, Franklin, CAMS) provide the facility to check the
transaction status.
Life Insurance: Shriram Life Insurance Company provides online access to check
transaction status.
General Insurance: Trying to get online access (under process).
Process -06(01)
Still Unmatched data :
Data send to respective state operations on weekly basis to provide additional/correct
information.
ACTION TO BE TAKEN BY STATE OPS
Try to collect investment details like cheque number /cheque amount.
Try to collect Vehicle number or RC number in case of GI.
Try to Collect Pan no in case of MF.
Process -06(02)
STILL UNMATHCED DATA
MF: Data send to Respective AMCs for provide status.
GI: Data send to Respective GI companies.
LI: Data send to SLIC.
Output
Not in SFLS business code.
Provided information are Incomplete / Incorrect.
Unable to trace with given details.
UPDATED TR MASTER
Provide weekly basis to respective state operations /state heads/ Regional ops
manager.
To check the current status of TR.
To provide the information about pending cases reasons(hold for agency
code/investor name mismatched/agency name mismatched)
To provide incomplete cases details which are not able to process due to
information was wrong or incomplete.(where company reference number not
mentioned)
ANALYSIS
&
INTERPRETATION
OF
DATA
DATA ANALYSIS AND INTERPRETATION
Occupation Respondents
Private Job 32
Govt. Job 20
Business 26
Retired 22
Chart:4.1
35
30
25
Private Job
20 Govt. Job
15 Business
Retired
10
Interpretation:
32% of the respondents were in Private Job, 20% of the respondents were in Govt. Jobs, 26% of the
respondents were doing Business and 22% of the respondents were Retired persons. Thus the research
work includes people from varying fields.
Yes 88
No 12
Chart: 4.2
Interpretation:
88% of the respondents say yes they invest their money to grow. This shows that the main aim of most
of the investors is to grow their idle funds so that they can overcome the problems of inflation, etc.
Insurance Policy 30
Equity 20
Commodity market 6
Fixed deposits 22
Bonds 16
Property 4
Others 2
Insurance Policy
30
25 Equity
20 Commodity
market
15
Fixed deposits
10
Bonds
5
Property
0
Percentage of respondents
Others
Interpretation:
Most of the respondents invest their money in Fixed Deposits, Insurance Policy and Equity Market only
6% of the respondents invest their money in Commodity Market. This shows investors preference for
higher returns providing assets.
TABLE 4.4 OPTIONS WHICH GET THE BEST RETURNS
Insurance Policy 20
Equity 22
Commodity market 16
Fixed deposits 18
Bonds 8
Property 14
Others 2
Insurance Policy
25
Equity
20
Commodity
15
market
Fixeddeposits
10
Bonds
5
Property
0
Percentage of respondents
Others
Interpretation:
Most of the respondents say they will get more returns in Equity Market. Statistics also shows that
equity market is the highest fluctuating investment option but at the same time carries maximum returns
as compared to other investment options.
TABLE:4.5 BASIC OBJECTIVE AT THE TIME OF INVESTMENT
Options % of respondents
Regular returns 52
Capital appropriation 22
Chart:4.5
Interpretation:
52% of the respondents say basic objectives at the time of investment is Regular returns, 26% of the
respondents say basic objectives at the time of investment. Thus the main objective of investment by
these individual is regular returns
TABLE: 4.6 PREFERENCES WHILE INVESTING.
Options % of respondents
More benefits 22
More security 62
Chart 4.6
Interpretation:
22% of the respondents say they get more benefits, 62% of the respondents say they would like more
security. Thus the investors have more likeliness for security than benefits.
TABLE 4.7 PREFERRED INVESTMENT OPTION, IF IT IS INSURANCE
POLICY OR SHARES
Options % of respondents
Insurance Policy 68
Share 22
Both 10
70
60
50
40 Insurance Policy
30 Share
Both
20
10
0
%of respondents
Chart 4.7:
Interpretation:
68% of the respondents say they would go for Insurance Policy, 22% of the respondents say they would
prefer shares.
TABLE: 4.8 THE MOST IMPORTANT PARAMETER WHILE INVESTING
Options % of respondents
Returns 26
Risk 28
Credit rating 10
Inflation 8
Company 18
Lock in period 10
Chart:4.8
Interpretation:
28% of the respondents see that the investment is risk free, 26% of the respondents look for returns
before investing, and 18% go for the company’s position before investing. Thus we see a balanced
examination of almost regular factors of the investment made.
Options % of respondents
Yes 46
No 54
Chart 4.9
Interpretation:
46% of the respondents are planning to invest in Insurance Policy. This may be due a large number of
factors that individuals do not have higher inclination towards investment. The next question gives the
answer to the reason for such non-investment.
TABLE: 4.10 REASONS FOR SUCH DENIAL FOR INVESTMENT:
OPTIONS % OF RESPONDENTS
Lack of awareness 30
Risk 24
Fluctuating returns 26
Chart: 4.10
Interpretation:
30% of the respondents don’t want to invest in Insurance Policy because of Lack of Awareness, 24% of
the respondents were not investing in Insurance Policy because of risk. Thus there is a need to give
proper knowledge about investment options to large number of people so that the investment market
could show a significant increase.
TABLE: 4.11 PREFERRED SCHEME FOR INVESTMENT IN INSURANCE
POLICY
Options % of respondents
Equity 30
Debt 26
Balanced 24
Gilt 20
Index 0
Chart 4.11
Interpretation:
30% of the respondents have invested in Equity funds, 26% of the respondents have invested in Debt
Funds, 24% of the respondents have invested and Balanced funds, 20% of the respondents have invested
in Gilt Funds. Thus we see that there is higher inclination towards equity funds as they draw higher
returns.
HDFCSL 14
LIC 18
30
25
20 HDFCSL
LIC
15 ICICI PRU LIFE
SBI Insurance Policy
10 Tata –AIG Insurance Policy
Chart:4.12
Interpretation:
14% of the respondents were planning to invest in HDFC Insurance Policy, 18% of the Respondents say
LIC Insurance Policy, 22% of the respondents say ICICI PRUDENTIAL, 20% of the respondents say
they prefer to invest in SBI Insurance Policy, 26% of the respondents prefer Franklin Templeton
Insurance Policy as it is giving maximum Returns.
TABLE: 4.13 THE REASON FOR PREFERRING ICICI PRUDENTIAL
Options % of respondents
Returns 20
Risk 16
Credit rating 12
Inflation 14
Company 30
Lock in period 8
Chart: 4.13
Interpretation:
20% of the respondents want to invest in ICICI PRUDENTIAL due to more returns, 30% due to its
reputation in market.
Options % of respondents
Equity 30
Debt 26
Balanced 24
Gilt 20
Index 0
Interpretation:
30% of the respondents have invested in Equity funds, 26% of the respondents have invested in Debt
Funds, 24% of the respondents have invested n balanced funds, and 20% of the respondents have
invested in Gilt Funds.
OBSERVATIONS & FINDINGS
Most of the respondents of the given questionnaire were from private jobs. Since the data
collection was done randomly it is observed that higher number of people came from private jobs
where their income is satisfiable and due to this they have an inclination towards investment.
Most of the respondents say that they invest their money. This investment can be either in fixed
assets or any kind of purchase of security. But as per the outcome of the result most of them have
more or less interest in shares and online trading.
There are very less number of investors who invest in the commodity market as compared to
other investment option. This may be due to lack of knowledge and accessibility.
Most of the investors said that equity trading gives the highest returns. Statistical data proves the
same. There are high fluctuations in the equity share market. If on one side it fetches high
returns, on the other it can bring similar losses. Thus it is more of a riskier investment but good
players do invest in these.
Most of the investors prefer regular returns than taking the advantage of tax benefits or capital
appropriation. This is because they have more inclination towards returns than availing any other
benefit out of the investment.
Just like investors have higher preference for regular returns, they also prefer having more
security given to them for their investment. Most of the respondents favoured more security of
their asset than anything else.
Majority of the investors have higher inclination towards Insurance Policy investment. The
reason so assumed is low risk and regular and better returns than other available options for
investment.
The main idea of every investor is to firstly examine the company’s profile and related issues and
then invest. Most of them look for risk and return factors before investing.
There were a good percentage of respondents who were further planning to invest in Insurance
Policy. This may be due to favourable market conditions, government subsidies and money
control methods or growth of the Insurance Policy industry.
Among those who had no plans for investing in Insurance Policy said that the reason for the
same is that they are not much aware of the Insurance Policy concepts and related industry. Also
they felt that it carries a moderate risk which they were not ready to bear.
Most of the respondents invested their money in equity market. Although there was a similar
number of people who invested equally in debt, balanced and gilt funds.
There was higher number of investors who preferred ICICI PRUDENTIAL but not the highest.
The respondents were planning to invest in ICICI PRUDENTIAL because of its higher returns
and goodwill in the market. ICICI PRUDENTIAL also carries lower risks and thus preferred by
investors.
CONCLUSIONS
Investors maturity has increased as today investors are willing to accept the fact that Insurance
Policy can lose money because fund manager are not infallible. Market is becoming complex & it
means that the individual investor will not have the time to play stock game on his own. The
penetration of Insurance Policy have increased this will further help Insurance Policy to reach to
every region of India. Newer options & new schemes have created new markets which could be
explored in future. Last but not the least Insurance Policy regulations will help to boast up the
investor confidence. Investors prefer ICICI PRUDENTIAL because of more returns and low risk.
Systematic Investment Plans are also available.
Winning with stocks means performing at least as well as a major market index over the long haul.
If one can sidestep the common investor mistakes, then one has taken the first and biggest step in the
right direction. The most important consideration while making investment decision was Return
aspect followed by Safety, Liquidity and Taxability. Diversified stock portfolios have offered
superior long term inflation Protection. Equities are especially important today with people living
longer and retiring early. To understand stock funds, one needs to be familiar with the characteristics
of the different types of companies they hold. Portfolio managers have done a fairly good job in
generating positive returns. It may lead to gain investors confidence. On the basis of the analysis the
performance of the schemes during the study period can be concluded to be good.
Those who want to eliminate the risk element but still want to reap a better then it would be
advisable to go for debt or arbitrage schemes which ensure both safety and returns.
So the future of Insurance Policy in India is bright, because it meets investor s needs perfectly. This
will give boost to Indian investors and will attract foreign investors also.
SUGGESTIONS
The insurance industries should try to minimize their risk factor and try their best to enhance
their return percentage.
The Company should try improving their customer service and other schemes to attract more
investors.
Proper assistance should be provided to the customer at the time of claim settlement.
All the relevant and necessary details about the company should be properly disclosed to the
customers.
The Company can try to find new markets especially in the rural areas.
Name: Gender:
C. Business D. Retired
A. YES B. NO
Q.3 what are the various investment options that u choose from?
C. capital appropriation.
Q.7 which is the most preferred investment option amongst Insurance Policy and shares?
Q.8 what are the parameters that you judge on before investing?
Returns Risk
C. Debt D. Gilt
E. Index
Q.12. which are the companies that you choose to invest in?
Options
HDFCSL
LIC
A. Equity B. Debt
C. Gilt D. Index
E. Balanced
BIBLIOGRAPHY
BOOKS:
• Khan & Jain(1997), Financial Management and Policy, Tata Mc Graw Hill, New
Delhi
• Prasanna Chandra (1999), Financial Management, Tata McGraw Hill, New Delhi.
• Sharma & Gupta (2001), Financial Management, Kalyani Publication, New Delhi
WEBSITES
• www.karvy.com
• www.investopedia.com
• www.icicipru.com
• http://www.icicipruamc.com/aboutus1.html
• www.appuonline.com.
• www.valuesearchonline.com
• www.shriraminvestment.com