INTRODUCTION

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance
Corporation Act, 1956 and General Insurance Business (Nationalisation) Act, 1972,
Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other
related Acts. With such a large population and the untapped market area of this
population Insurance happens to be a very big opportunity in India. Today it stands
as a business growing at the rate of 15-20 per cent annually. Together with banking
services, it adds about 7 per cent to the country’s GDP .In spite of all this growth the
statistics of the penetration of the insurance in the country is very poor. Nearly 80%
of Indian populations are without Life insurance cover and the Health insurance.
This is an indicator that growth potential for the insurance sector is immense in India.
It was due to this immense growth that the regulations were introduced in the
insurance sector and in continuation “Malhotra Committee” was constituted by the
government in 1993 to examine the various aspects of the industry. The key element
of the reform process was Participation of overseas insurance companies with 26%
capital. Creating a more efficient and competitive financial system suitable for the
requirements of the economy was the main idea behind this reform.

Since then the insurance industry has gone through many sea changes. The
competition LIC started facing from these companies were threatening to the
existence of LIC. since the liberalization of the industry the insurance industry has
never looked back and today stand as the one of the most competitive and exploring
industry in India. The entry of the private players and the increased use of the new
distribution are in the limelight today. The use of new distribution techniques and
the IT tools has increased the scope of the industry in the longer run.

1
WHAT IS A JOINT VENTURE?

Joint Venture companies are the most preferred form of corporate entities for Doing
Business in India. There are no separate laws for joint ventures in India. The
companies incorporated in India, even with up to 100% foreign equity, are treated
the same as domestic companies. A Joint Venture may be any of the business entities
available in India.

WHAT IS INSURANCE?

Insurance is basically risk management device. The losses to assets resulting from
natural calamities like fire, flood, earthquake, accident etc. are met out of the
common pool contributed by large number of persons who are exposed to similar
risks. This contribution of many is used to pay the losses suffered by unfortunate
few. However, the basic principle is that losses should occur as a result of natural
calamities or unexpected events which are beyond the human control. Secondly
insured person should not make any gains out of insurance.

It is natural to think of insurance of physical assets such as motor car insurance or

fire insurance but often be forget that creator all these assets is the human being
whose effort have gone along way in building upto assets. In that scene human life
is a unique income generating assets. Unlike physical assets which decreases with
the passage of time. The individual become more experience and mature as he
advances in age. This raises his earnings capacity and the purposes of life insurance
is to protect the income to individual and provide financial security to his family
which is dependent of his income in the event of his pre mature death. The individual
also himself also himself also needs financial security for the old age or on his
becoming permanently disabled when his income will stop. Insurance also has an
element of saving in certain cases.

Insurance is 400 billion rupees business in India and yet its spread. In the country is
relatively thin. Insurance as a concept has not being able to make headway in India.

2
Presently LIC enjoys a monopoly in Life Insurance business while GIC enjoys it in
general insurance business. There has been very little option before the customer to
decide the insurer. A successful passage of the IRDA bill have clear the way of
private sector operators in collaboration with their overseas partner. It is likely to
bring in a more professional and focuses approach. More over the foreign players
would bring sophisticated actuarial techniques with them which would facilitate the
insurer to effectively priced the product. It is very important that the trained
marketing professionals who are able to communicate specific features of the policy
should sell the policy. In the next millennium all the activities would play a crucial
role in the overall development and maturity of the insurance industry.

MEANING OF INSURANCE
Insurance is a contract between two parties whereby one party called insurer
undertakes in exchange for a fixed sum called premium, to pay the other party called
insured a fixed amount of money on the happening of certain event. Insurance
indemnifies assets and income. Every asset (living and non-living) has a value and
it generates income to its owner. The income has been created through the
expenditure of effort, time and money.
Every asset has expected lifetime during which it may depreciate and at the end of
life period it may not be useful, till then it is expected to function. Sometimes it may
cease to exist or may not be able to function partially or fully before the expected
life period due to accidental occurrences like burglary, collisions, earthquakes, fire,
flood, theft, etc. These types of possible occurrences are “risks”
Future is uncertain; nobody knows what is going to happen? It may or may not?
Insurance is the concept of risk management – the need to manage uncertainty on
account of above stated risks.
Insurance is a way of financing these risks either fully or partially. Insurance
industry has both economic and social purpose and relevance Insurance business in
India can be broadly divided into two categories such as Life Insurance and General
Insurance of Non-life insurance.

3
 RESEARCH METHODOLOGY

PRIMARY DATA:
 The primary data was collected by a survey based on the questionnaire. It
was formulated on the basis of information gathered by me with the help of
Miss. who provide useful guidelines and objective of our study.
 Information collected with the help of Questionnaire for analyzing Bank
service. Questionnaire with an existing customers. Personal interview was
done with the walk in.
 Observation method was used for understanding various products and their
features.

SECONDARY DATA:

 Understanding the product and the features .

 Information collected form guidance of superior managers and employs
 To know about the requirement habits of the people in the region of patiala.
 To know about the views of people regarding various Insurance Companies.
 Position of the Insurance companies in the mind of the consumer.
 Position of the Insurance Competition regarding various Insurance
Companies.
 To find out the position of Insurance Companies in the market.

4
 HISTORY OF INSURANCE IN INDIA

Insurance has a long history in India. Life Insurance in its current form was
introduced in 1818 when Oriental Life Insurance Company began its operations in
India. General Insurance was however a comparatively late entrant in 1850 when
Triton Insurance company set up its base in Kolkata. History of Insurance in India
can be broadly bifurcated into three eras:
a) Pre Nationalization,
b) Nationalization
c) Post Nationalization.

Life Insurance was the first to be nationalized in 1956. Life Insurance Corporation
of India was formed by consolidating the operations of various insurance companies.
General Insurance followed suit and was nationalized in 1973. General Insurance
Corporation of India was set up as the controlling body with New India, United
India, National and Oriental as its subsidiaries. The process of opening up the
insurance sector was initiated against the background of Economic Reform process
which commenced from 1991.

For this purpose Malhotra Committee was formed during this year who submitted
their report in 1994 and Insurance Regulatory Development Act (IRDA) was passed
in 1999. Resultantly Indian Insurance was opened for private companies and Private
Insurance Company effectively started operations from 2001.

5
 GLOBALISATION

Globalization means linking the economy of a country with the economies of other
countries by means of free trade, free mobility of capital and labor, etc. it also means
inviting multinational corporations to invest in India. Economic Reforms assume
that Indian economy should have close link with the world economy. As a result,
there will be unrestricted flow of goods and services, technology and expertise
among different countries of the world. These will be creased cooperation of Indian
economy with different economies across the world. Capital and technology will
flow from the developed countries of the world towards India

EFFECTS OF GLOBALIZATION ON INDIAN

ECONOMY

(1) INCREASE IN FOREIGN TRADE: As a result of foreign trade policies

adopted in the wake of globalization, India’s share in the world trade has gone up.
In 1990-91, India’s share in world trade was 0.53 per cent. In 1995-96, it rose to
0.60 per cent. In 2005-06 it further increased to 1.0 per cent.

(2) INCREASE IN FOREIGN INVESTMENT: As a consequence of

globalization, there has been a considerable increase in foreign direct investment as
well as foreign portfolio investment.

(A) FOREIGN DIRECT INVESTMENT (FDI): Foreign Direct Investment is

made by foreign companies in order to establish wholly owned companies
in another country and to manage them or to purchase share of companies in
another country for the purpose of managing such companies. The main
characteristic of foreign direct investment is that native companies are
managed by the foreign companies or new companies are set up in India by

6
 foreign companies. In this type of investment, it is the foreign investor who
takes risk and is solely responsible for profit/loss of such company

(B) PORTFOLIO INVESTMENT: Under this type of investment, foreign

companies/foreign institutional investor (FIIs) buy shares/debentures of
native companies, however management and control remain vested with the
native companies themselves. There is significant increase in foreign
investment in India. In the year 1990-91, total foreign investment (FDI and
Portfolio investment) was US$ 103 million. In the year 2005-2006 amount
of foreign investment increase to US$ 20,155 million. Because of significant
increase in foreign investment, India began to experience a surplus balance
of payments and very remarkable improvement in foreign exchange reserves.

(3) INCREASE IN FOREIGN COLLABORATION: Globalization has promoted

collaboration of foreign companies with many India companies. These collaboration
agreements can be technical collaboration. Financial collaboration or both. In
financial collaboration, foreign technology is provided by foreign companies.
Foreign companies are setting up many enterprises in India in collaboration with
Indian companies.

(4) INCREASE IN FOREIGN EXCHANGE RESERVES: As a result of

globalization of Indian economy, foreign exchange reserves have also increased
substantially. In 1991, foreign exchange reserves of India amounted to Rs.4,388,
crore which in 2015-16 increased to Rs.7,96,000 crore (US$ 185.1 billion). Thus,
there has been an increase of 181 times in foreign exchange reserves of India.

(5) EXPANSION OF MARKET: Globalization has expanded the size of market.

It has permitted Indian business units to expand its business in the whole world. Now
multinational corporations have no national boundaries. Indian companies like
Infosys. Tata Consultancy, Wipro, Tata Steel etc, doing their business in many
countries.

7
(6) TECHNOLOGICAL DEVELOPMENT: Globalization has enabled the
inflow of foreign technology, which is very superior and advance. Now Indian
business units use this modern technology.

(7) BRAND DEVELOPMENT: Globalization has promoted the use of branded

goods. Now branded goods are not only durable goods but products of daily use like
soap, cold-drinks, tooth-paste, garments, food grains, etc., are also branded. Foreign
brands are very popular among Indian consumers. Brand-development has led to
quality improvement.

(9) DEVELOPMENT OF SERVICE SECTOR: Globalization has helped in

growth of service sector. With the entry of foreign companies, tremendous
improvement has been witnessed in various services like telecommunication,
insurance, banking, e.g. now mobile phones are very cheap and popular in India.

(10) INCREASE IN EMPLOYMENT: Globalization has promoted employment

opportunities. Foreign companies are establishing their production and trading units
in India. It has increased employment opportunities for Indian, e.g. many Indians are
presently employed in foreign insurance companies, mobile companies, etc.

(11) REDUCTION IN BRAIN DRAIN: As a result of globalization, many

multinational corporations have set up their business units in India. These MNCs
provide attractive salary package and good working conditions to efficient, skilled
Indian engineers, managers, professionals, etc. Now Indians get good employment
opportunities in India. It has resulted in reduction of brain drain.

(12) IMPROVEMENT IN STANDARD OF LIVING: As a result of

globalization, the standard of living of Indian population has improved. Now Indian
get better quality goods at low prices.Globalisation has resulted in reduction of
prices many products particularly electronic items like television, A.C., mobile

8
phones, refrigerator, etc. now middle-income group also uses these luxury products,
why joint venture (often abbreviated JV) is an entity formed between two or more
parties to undertake economic activity together. The parties agree to create a new
entity by both contributing equity, and they then share in the revenues, expenses,
and control of the enterprise. The venture can be for one specific project only, or a
continuing business relationship such as the Fuji Xerox joint venture. This is in
contrast to a strategic alliance, which involves no equity stake by the participants,
and is a much less rigid arrangement.

9
 INVESTING IN INDIA’S INSURANCE SECTOR

The Indian Parliament recently enacted changes to the Insurance Act of 1938, which
raise the foreign direct investment (FDI) cap in Indian insurance companies from 26
percent to 49 percent. Since by law only domestic insurance companies are allowed
to carry out the business of insurance, FDI through a joint venture is the typical
process by which foreign companies acquire ownership of Indian insurance
companies.

The change in the FDI cap, designed to bring investment to India’s under-capitalized
insurance sector, has encouraged insurance companies worldwide to consider
opening or expanding operations in India. But as recent regulatory issues and failed
joint ventures suggest, companies will want to bear in mind the financial
implications of entering into a joint venture. This article provides some
considerations for entering the market, along with an overview of life and non-life
insurance sector financial performance.

JOINT VENTURE CONSIDERATIONS

With the widening of the Indian insurance sector to foreign investors, the insurance
market has become a tempting fruit to foreign companies looking to do business in
India. However, given the risks of failure when entering into a joint venture in
India’s insurance sector, companies should carefully consider the following
challenges inherent in the market.

FOREIGN OWNERSHIP RESTRICTIONS

In India, the only way that a foreign insurance company can set up a business is by
establishing a licensed local insurer through a joint venture with one or more local
partners. The Insurance Act as amended requires that the Indian insurance company
should be Indian owned and controlled at all times. The term “control” has been

10
defined as the right to appoint a majority of the directors or to direct management
and policy decisions.
Businesses considering entering the Indian market via joint venture should be
mindful that these same restrictions could reduce the list of potential purchasers in
the joint venture, should it decide to exit the Indian insurance market. Purchasers
may not want to take a minority stake of a foreign insurer; nor will domestic
companies want to enter into a joint venture with rival local insurers.

LIMITS ON PROMOTING INSURANCE BUSINESSES

The definition of insurance company under Indian law provides that the sole purpose
of an Indian insurance company is to conduct insurance business. Therefore, insurers
are only permitted to undertake activities that are incidental to or supplement the
provision of insurance.
Further, under Indian law a foreign firm can have a stake in only one domestic
insurer in the same space. This provision reduces the market share that a foreign
firm can assume and could therefore hinder its ability to raise sufficient capital and
diversify operations.

REGULATORY APPROVALS
Prior government approval is required when a shareholder in an insurance company
sells, or otherwise transfers, more than 5 percent of the total paid-in capital of the
company. Regulations also require insurers to provide a statement indicating any
shareholding changes over 1 percent of the insurer’s issued capital within 15 days
of the end of every quarter. Additionally, insurers must carry on all core functions
themselves. Only non-core activities can be outsourced.
The government has occasionally used outsourcing of external services to create a
permanent establishment for a foreign insurer, resulting in taxation on the foreign
insurer’s worldwide income. Most recently, Swiss Re won a case of against this
practice in the Mumbai High Court in May 2015. However, the added cost of doing
business from regulatory requirements may affect the commercial attractiveness of
investment in a joint venture.

11
PRICE RESTRICTIONS
In India, the price of shares in a transfer from a foreign insurer to an Indian resident
cannot exceed fair value, which is determined by a chartered accountant or merchant
bank. This sets a ceiling on the maximum price an outgoing foreign shareholder can
achieve for its shares in the joint venture, thus limiting a profit on sale.

REGULATORY BURDENS
In view of the regulatory burden placed on insurance companies, it is perhaps not
surprising that many foreign companies entering the Indian insurance market have
faced significant difficulties in turning a profit. This is true of joint ventures in both
the life insurance and non-life sectors.

12
 INDIAN PROMOTER IN INSURANCE JOINT
VENTURES: IRDA
The Insurance Regulatory and Development Authority of India has mandated a
minimum 26% equity holding by the Indian promoter in any insurance company to
ensure that the local investor does not use the liberal foreign investment and listing
policy to dilute accountability.

The regulator insists that the mandatory 26% stake to be held by the local promoter
will ensure that there is accountability and that the management does not rest with
the foreign company alone in the event of a single block of holding falling below
25% when a company goes for listing.

"Indian investors jointly shall not hold more than 25% of paidup equity share capital
of the insurance company," said Irda. As a result of this move, the insurance
regulator aims to control transfer and dilution of ownership in insurance companies
similar to what the Reserve Bank of India (RBI) does with banks, to prevent financial
investors from flipping investments for shortterm gains that may hurt longterm
prospects.

IRDA has mandated no single entity or group of investors can hold more than 10%
of paid-up equity capital in an insurance company. Amendment to the Insurance Bill
had allowed all insurance companies to access capital markets.

The government had started off with the process of listing some of the public-sector
general insurance companies. "The regulator wants a promoter in an insurance
company, as they have given the licence to a promoter and not just to investors,"
said AmitabhChaudhry, managing director and CEO, HDFC Life.

HDFC Life, a joint venture with UK-based Standard Life, is likely to be the first of
the insurance companies to list its shares on the stock exchanges.

13
 LIST OF JOINT VENTURE INSURANCE
COMPANIES IN INDIA
A joint venture is a business relationship in which two or more persons combine
their labor or property for a single undertaking and share profits and losses equally,
or as otherwise agreed.

The following list of Joint Venture Insurance Companies in India will be useful for
various insurance sector recruitment exams while also serving as a reference for
building GK for exams and otherwise. We hope this list of important Insurance Joint
Venture proves helpful for reading and revising study material for insurance and
banking sector.

List of Important Joint Venture Insurance Companies in India :

STAR UNION DAI-ICHI LIFE INSURANCE CO. LTD. ( SUD LIFE ) is a joint
venture of Bank of India, Union Bank of India and Dai-ichi Life, which is a leading
life insurance company of Japan.

ICICI PRUDENTIAL LIFE INSURANCE COMPANY (ICICI

PRUDENTIAL LIFE) is a joint venture of ICICI Bank, which is India’s largest
private sector bank, and Prudential plc , which is a leading international financial
services group with its headquarters in the United Kingdom.

CHOLAMANDALAM MS GENERAL INSURANCE COMPANY (CHOLA

MS) is a joint venture between the Murugappa Group, an Indian conglomerate, and
the Mitsui Sumitomo Insurance Group (MSIG), which is a Japanese assurance
company.

FUTURE GENERALI LIFE INSURANCE is a joint venture of three leading

groups: Future Group – a leading retailer of India ; Generali Group – a global
insurance group which features among the top 50 largest companies of world and
the Industrial Investment Trust Limited (IITL) – a leading investment company.

14
ICICI LOMBARD GENERAL INSURANCE COMPANY LIMITED is a joint
venture between the ICICI Bank Limited, India’s second largest bank and the
Fairfax Financial Holdings Limited, which is a Canada based diversified financial
services company.

IFFCO TOKIO GENERAL INSURANCE is a joint venture between the Indian

Farmers Fertiliser Cooperative (IFFCO) and the Tokio Marine and Nichido Fire
Group.

TATA AIG GENERAL INSURANCE COMPANY LIMITED is an Indian

general insurance company. Which is a joint venture between the Tata Group and
the American International Group (AIG). The Tata Group holds 74 % stake in the
insurance venture with AIG holding 26 %.

HDFC LIFE -It is a joint venture between the Housing Development Finance
Corporation (HDFC), which is one of India’s leading housing finance institution and
the Standard Life plc., which is a leading provider of financial savings & investments
services in United Kingdom. HDFC Ltd. holds 72.37 percent and Standard Life
(Mauritius Holding) Ltd. holds 26 per cent of equity in this joint venture, while rest
is held by others.

IDBI FEDERAL LIFE INSURANCE CO. LTD,(formerly known as IDBI Fortis

Life Insurance) is a joint venture between three financial companies – Industrial
development and commercial bank (IDBI Bank) which is India’s public sector bank
; Federal Bank and the European insurer Ageas (formerly Fortis). In this joint
venture, IDBI Bank owns 48% equity while Federal Bank and Ageasowns 26 per
cent equity each.

HDFC ERGO General Insurance Company is a 74:26 joint venture between the
HDFC, which is India’s premier Housing Finance Institution and the ERGO
International AG, the primary insurance entity of Munich Re Group.

EGON RELIGARE LIFE INSURANCE is a joint venture of AEGON, Religare

and Bennett, Coleman & company.

15
AVIVA INDIA is an Indian life assurance company, and a joint venture between
the Aviva plc., which is a British assurance company, and the Dabur Group, an
Indian conglomerate.

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED is a joint venture

insurance company between the Bajaj Finserv Limited (which recently emerged
from the Bajaj Auto Limited) and the Allianz.

BIRLA SUN LIFE INSURANCE COMPANY LIMITED ( BSLI ) is a joint

venture between the Aditya Birla Group, an Indian conglomerate and the Sun Life
Financial Inc, which is a leading international financial services organization of
Canada.

MAX LIFE INSURANCE, is a joint venture between Max India Ltd, is an Indian
multi-business corporate, and Mitsui Sumitomo Insurance Co. Ltd., which is a
member of MS&AD Insurance Group, a general insurer.

LIBERTY VIDEOCON GENERAL INSURANCE is a joint venture between the

Boston based insurance company Liberty Mutual Insurance Group and India based
Videocon Industries. It is based in Mumbai.

MAGMA HDI GENERAL INSURANCE CO Ltd .is a joint venture of Magma

Fincorp Ltd, Kolkata and the Germany based HDI-Gerling Industries Versicherung
AG.

SBI GENERAL INSURANCE COMPANY Limited is a joint venture of the State

Bank of India and Insurance Australia Group (IAG). In this, SBI owns 74 per cent
of the total capital and IAG owns the remaining 26 per cent.

BHARTI AXA GENERAL INSURANCE COMPANY LTD is a joint venture

between the Bharti Enterprises, which a leading Indian business group and AXA,
which is a world leader in financial protection. This joint venture company has a 74
per cent stake from Bharti and 26 per cent stake from the AXA Group.

16
EDELWEISS TOKIO LIFE INSURANCE is a Life Insurance joint venture
between Edelweiss Financial Services, Mumbai & Tokyo Marine Holdings Inc.,
Japan.

MAX BUPA HEALTH INSURANCE COMPANY LIMITED is a joint venture

insurance company between Max India Limited and Bupa Finance plc., based in UK
.

STAR HEALTH AND ALLIED INSURANCE CO LTD is a joint venture

between the Oman Insurance Company UAE, along with leading NRIs and an Indian
company. It is a special purpose vehicle formed by a group of business tycoons for
working in the health insurance sector.

CIGNA TTK is an Indian health insurance firm which is established as a joint

venture between the Cigna, a global insurance player and the TTK Group, which is
an Indian conglomerate.

CANARA HSBC ORIENTAL BANK OF COMMERCE LIFE INSURANCE

CO LTD was launched on 16 June 2008 and is a Joint Venture between the Canara
Bank (which holds 51 per cent stake), HSBC Insurance(Asia Pacific) Ltd (holding
26 per cent stake), which is the Asian insurance arm of the world’s largest banking
and financial services group and the Oriental Bank of Commerce (which holds 23
per cent stake).

EXIDE LIFE INSURANCE COMPANY LIMITED is a Bengaluru based life

insurance company founded in 2001, formerly known as ING Vysya Life Insurance
Company Limited. It began as a joint venture between ING VysyaBank and Exide
Industries Ltd. after ING Vyasya divested from it, it is now fully owned by Exide
Industries Ltd.

This is all with the compilation of the list of Joint Ventures Insurance companies in
India.

17
 ICICI LOMBARD GENERAL INSURANCE

ICICI Lombard is India's number one private general insurance company which has
a 74:26 joint venture between ICICI Bank Limited and the Canada based $ 26 billion
Fairfax Financial Holdings Limited. It is a first general insurance company in India
to be an ISO 9001:2000 certified.

ICICI Lombard General Insurance Company received regulatory approvals to

commence general insurance business in August 2001.

FEATURES OF ICICI LOMBARD

 First general insurance company in India to be ISO 9001:2000 certified

 Highest brand recall
 Simple and fast documentation
 Lightning fast claims settlement
 Instant online policy issuance
 Comprehensive product line
 Highest security level offered through 128-bit encryption in case of online data
exchange.
 First company to provide digitally signed documents through an online interface.
 Achieved financial breakeven in first full year of operations
 Achieved underwriting breakeven in second year of operations

18
PRODUCT

Car Insurance: ICICI Lombard brings a comprehensive Package Policy for your four-
wheelers, which covers Third Party Liability (TPL) for bodily injury and/or death, Personal
Accident cover for owner-driver and loss or damage to the vehicle insured (Own Damage
or OD).

POLICY COVERAGE

a) Loss or damage to your vehicle: The policy covers you against any loss or damage
caused to the vehicle or it’s accessories due to the following natural and manmade
calamities.

b) Natural Calamities – Fire, explosion, self-ignition or lightning, earthquake, flood,

typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide,
rockslide.

c) Manmade Calamities – Burglary, theft, riot, strike, malicious act, accident by

external means, terrorist activity, any damage in transit by road, rail, inland
waterway, lift, elevator or air. The rates of the vehicle and its parts are subject to
depreciation as per the schedule provided by the Indian Motor Tariff.

d) Personal accident cover: The motor insurance provides compulsory personal

accident cover for individual owners of the vehicle while driving. You can also opt
for a personal accident cover for passengers.

Key Benefits

 A digitally signed policy is issued immediately through online facility.

 You can claim towing charges up to Rs 1,500 through 24*7 call centers.
 Cashless claim settlement at network garages all across India.

19
TRAVEL INSURANCE: To ensure Travel exciting and happy , ICICI Lombard
offers a comprehensive range of travel insurance plans , catering to specific individual needs
, covering any eventually.

FEATURES

 ICICI Lombard General Insurance has introduced overseas travel cover for
senior citizens aged between 71 years and 85 years under its Globetrotter
Overseas Travel Insurance umbrella.
 The policy is aimed to meet the needs of approximately one lakh senior
citizens per year, who mainly travel to the US, Europe and West Asia, said
a press release.
 "We are happy to introduce a policy for senior citizens. With life
expectancies going up, we are becoming older as a nation. The need for
adequate protection through insurance is also on the rise. But senior citizens
have limited insurance options available to them," said the release, Head
Marketing, ICICI Lombard General Insurance
 “With the increasing number of Indians going abroad for studies and work,
the number of parents going to visit them is also on the rise. Our research
showed that there was a strong felt need to make insurance policies available
for senior citizens,"

HOME INSURANCE: Home is where the heart is. There are no truer words than
these. However natural calamities & man-made dangers can threaten the security of our
home. Painful as it can be we need to secure it and provide for re-creating it, in case of
damage due to unforeseen circumstances. So that insurance company has introduced Home
insurance to guarantee absolute peace of mind form all uncertainties in our day-to-day life
with this unique policy.

ICICI Lombard Home Insurance Policy has a comprehensive range of covers to protect your
Home and your life.

20
What Does The Policy Cover?

1. Structure Cover : The compensation under this cover will be paid to repair
damages to the structure caused by natural and man-made calamities.

2. Contents cover : This is for the possessions inside the home. If these are
damaged or burgled then the insurance covers the loss incur for the same.

3. Personal Accident Cover : Death of Insured person on account of an

Accident.

HEALTH INSURANCE: Life is full of surprises….some bitter some sweet.

For Medical emergencies like surgeries, accidents and sudden illnesses. ICICI
Lombard General Insurance Company Limited brings Family Protect, a complete
Health Insurance Plan that is flexible enough to cover all members of the family.

PRODUCT BENEFITS

 Cover medical expenses during hospitalization – Cost of bed, medical care,

doctors’ fees, medicines as per the doctors’ recommendations.
 Medical expenses for a 30- day period immediately before hospitalization
 Medical expenses for a 60- day period immediately after hospitalization.
 Cashless Hospitalization at 3400+ hospitals pan- India.
 Modern Day care treatments covered.
 Plans available: Individual, and Floater: 2Adults, 2 Adults + 1 Kid, 2 Adults
+ 2 Kids.
 No Sub-Limits for coverages except for Cataract.
 Income tax benefit under Section 80 D up to Rs 15,000/

21
VISION

All poor households, especially those served by ICICI LOMBARD, will have access to risk-
management services covering their lives and livelihoods, and insurance companies will
provide these services willingly on a financially sustainable basis.

SWOT ANALYSIS
STRENGTH:

1)the company has good and advance staff and work environment.

2) icici lombard is considered as a reliable and easy to approachable environment.

3)the company value the customers and is having the best customer oriented
approach and system.

4)they have the best follow up system for its prospects.

WEAKNESS:

The company is privately driven company and people rely on companies which are
in association or wholly governed by any govt. organization like LIC of India.

OPPORTUNITIES:

1. Indian market is still untapped so large audience is major opportunity for the
company.

2. High market share in Indian market than the other market players.

3. Company has a good reputation among the audience due to its high yearly
returns and market share.

22
THREATS:

1. High competitive market situation due to entering of local as well as major

firms like tata and bharti insector.

2. High level of involvement of government in financial sector due to fraud

cases reported in year 2015

REWARDS

 ICICI Lombard General Insurance has been consistently recognised for its
customer-centric approach and innovative solutions at different award
forums. These awards are a testimony to the trust reposed in the company by
its customers.

 ICICI Lombard received the Fintelekt Insurance Awards for Bancassurance

Leader (General Insurance – Large Category) and Technology Initiative of
the Year in 2017. We were also conferred the Asia Quality Excellence &
Leadership Awards in the year 2017

 ICICI Lombard received the Golden Peacock Award for Business

Excellence and the Claim Service Leader Award in 2016. We were also
conferred the Technology Innovation Award at the Indian Insurance Awards
2016. In 2015, we were awarded the Golden Peacock Innovation
Management Award. At the 5th annual edition of the Indian Insurance
Award, 2015, we were conferred with the ‘E-Business Leader’ Award in the
General Insurance Category

23
 HDFC AND STANDARD LIFE

HDFC and Standard Life commenced discussions about possible joint venture, to
enter the life insurance market, in Jan. 1995. On Oct. 1995 the HDFC and Standard
Life companies signed a 3 year joint venture agreement. Around this time standard
life purchased a 5% stake in HDFC, Further strengthening the relationship.

Insurance Oct. 1998, the joint venture agreement was renewed and additional
resources made available. Around this time Standard Life purchased 2%
infrastructure Development Finance Company Ltd. (IDFC) standard life also started
to use the services of the HDFC Treasury department to advise them upon their
investments insurance India.

Around this time Standard Life purchased a further 5% stake in HDFC and a 5%
stake insurance HDFC bank. Insurance further development standard life to
participate insurance the Assets Management Company promoted by HDFC to enter
the mutual fund market. HDFC are main shareholders insurance HDFC standard
Life Insurance Company Limited with 81.4% while standard Life own 18.6 given
Standard Life’s existing investment in the HDFC Group. This is max. investment
allowed under current regulations.

24
HDFC recently sold 9 percent of its stake in HDFC Standard Life to its British
partner, Standard Life for over Rs1, 700 crore. This has led to an increase in the
foreign investor’s existing share from 26 percent to 35 percent. This stake sale to
Standard Life was proposed in August 2015 to happen for the said amount, as the
government of India has permitted up to 49 percent FDI in the insurance sector of
the country.

MISSION AND VALUES OF HDFC STANDARD LIFE:-

MISSION:-
HDFC Standard Life have clearly on several occasions that they aim to be
the top new life insurance company in the market. This does not just mean being the
largest or the moist proactive company insurance the market, rather it is a
combination of several things.
 Professionalism
 Value of money
 Customer services
 Innovative Product
 Use of Technology
 Market Share

VISION
“The Most successful and admired life insurance company, which means that we are
the most trusted company, the easiest to deal with, offer the best value for money,
and set the standards in the industry. In short, “The most obvious choice for all”.
 Team Work
 Customer Centric
 People Care
 Innovation

25
  Integrity
 Joy and Simplicity

RETIREMENT PLANS

HDFC Standard Life offers different types of retirement plans also called pension
plans which take care of the income post retirement by regular flow of annuity
payments for as long as the annuitant is alive. The variety of retirement plans offered
by HDFC Standard Life are as follows:

HDFC LIFE PERSONAL PENSION PLANS- This is a plan taken on a single life
basis with easy EMI options and flexible premium frequency options. The
investments can be selected anywhere from 10 to 40 years tenure and also offers an
assured benefit of about 101% of the paid premiums at the time of death or also
vesting.

HDFC CLICK TO RETIRE ULIP- This is an online Unit Linked Plan (ULIP)
offering assured vesting benefits with a wide option of premium payment like
regular, limited or single pay. This plan can be started as early as 18 years and also
provides tax benefits under Section 80C and Section10(10A) of the Income Tax Act
1961.

HDFC LIFE PENSION SUPER PLANS- This is a unit linked pension-plan that
offers benefits to the customers post their retirement. It involves extra premium
distribution rate of 102.5% from the 11th year onwards and also includes vesting
benefits on maturity. It helps the customers to choose the term of the policy on their
own wish with flexible retirement date and also guaranteed income on the annuity
purchased through them.

26
HDFC LIFE SINGLE PREMIUM PENSION PLANS- It is a unit-linked single
premium policy plan that helps the customer in getting income post retirement. It
involves the benefits of vesting on maturity with an extra advantage of flexibility to
choose single premium with an option to opt for top-up premiums. It also guarantees
regular income on the purchased annuity and offers freedom to plan the retirement
date suitable to the customer.

HDFC LIFE GUARANTEED PENSION PLANS- This in a one of a kind plan

that helps the customers to save and develop their retirement fund that can be used
post retirement. It provides assured benefit of 3% of the assured sum each year with
premium payment tenure of 5, 7, and 10 years. The term of the policy ranges from
10 to 20 years and is taken on a single life basis.

HDFC LIFE NEW IMMEDIATE ANNUITY PLAN- This plan is a non-linked

traditional annuity plan that provides financial independence by offering assured
income even after retirement for as long as the customer as well as their spouse lives.
It offers a host of annuity options with the flexibility to choose from the different
annuity options like monthly/quarterly/half-yearly/or annually.

HDFC LIFE INSRUANCE HEALTH PLANS :_The rising cost of medicine has
mandated the coverage of a health plan to take care of any medical expense which
might arise if an individual suffers from any medical contingency. The company
issued various types of health insurance plans which are mentioned below:

HDFC LIFE CANCER CARE PLAN- This plan is a best-in-class and

comprehensive Cancer insurance policy that helps the customer as well as their
family to remain financially and mentally stable in case of Cancer diagnosis and at
an Early Stage and also Major Cancer. It generally involves three options like Silver,
Gold and Platinum and an added advantage of premium waiver of cancer diagnosis
at an early stage. Under platinum option, a monthly income is provided in case of

27
major cancer. The plan issuance process is simple without undergoing any medical
check-ups.

HDFC LIFE HEALTH ASSURE PLAN- it is a comprehensive plan which

reimburses all the medical expenditures incurred in case of hospitalization. These
plans are generally of two types namely Individual and Family Floater Plan with two
major options to choose from like Gold and Silver Option. Even after the claim is
made, it guarantees the customers of premium for 3 more years and the cover gets
doubled after 3 claim free years. The reimbursement process is trouble-free and also
offers cashless claim service.

SAVINGS & INVESTMENT PLANS BY HDFC LIFE

These plans provide the facility of saving and wealth creation while at the same time
providing life insurance benefit in case of unfortunate death. The plan also earns tax
reliefs and as such is great for creating good savings corpus. The range of saving
plans offered by the company include:

HDFC LIFE INVEST PLANS- This is a type of online unit-linked plan that
provides insurance coverage on life. It has 8 fund options with a structure that is
non-chargeable.

HDFC LIFE SANCHAY- It is a non-participating traditional plan with a premium

payment term of 5, 8 and 10 years. The policy term ranges between 15 to 25 years
and offers added advantage of 8% or 9% of sum assured on maturity.

HDFC LIFE SUPER INCOME PLAN- This is a participating regular income plan
with an assured income for 8 to 15 years ranging from 8% to 12.5% of the sum
assured on maturity.

28
HDFC LIFE CHILD INSURANCE PLANS
These plans are built with the sole aim of securing the child’s future against the
unfortunate death of the parent. The company offers two types of child plans which
are:

HDFC SL YOUNGSTAR SUPER PREMIUM- This plan helps the customers to

develop funds in order to meet different needs of the children like education,
marriage, house or car that might arise in the future. It offers 4 types of funds with
limitless maximum premium amount. It also offers flexibility of tenure and sum
assured.

HDFC LIFE YOUNG STAR UDAAN- This is a traditional participating insurance

plan for parents with maturity benefits like academics, aspirations, career etc. The
bonuses are accrued and payable at maturity and also offer tax benefits.

HDFC Life Woman’s Insurance Plans

These plans cater to a wide variety of financial needs and requirement of woman
arising at different stages of their lives. The type of plan under this are as follows:

HDFC LIFE SMART WOMAN PLAN- This is a type of life insurance policy for
women that help in the growth of their savings. It offers 4 different fund options and
3 benefit options. It also provides flexibility to choose the assured sum and the policy
term ranges from 10 to 15 years.

SWOT ANALYSIS

SWOT Analysis of HDFC Standard Life with USP, Competition, STP

(Segmentation, Targeting, Positioning) - Marketing Analysis

Parent Company HDFC LTD & STANDARD life plc

29
STRENGTHS

1. Customised and Flexible Insurance Solutions and large product portfolio

2. Robust Risk control Framework

3. Network of 500 branches and agents across 700 cities

4. Strong Financial Expertise and popular advertising

5. Globally, Standard Life plc has 1.5 million shareholders in more than 50 countries
and over 6 million customers

6. Alliance between HDFC and Standard Life giving a strong brand backing

WEAKNESSES

1. Less penetration in rural areas

2. Controversies like job cuts, racism and data loss have affected image

OPPORTUNITIES

1. Growing rural market and better opportunities in the semi-urban areas

2. Group Insurance through large employers

THREATS

1. Economic instability and global crisis

2. Entry of new NBFCs in the sector

30
COMPETITORS

1. Bajaj Allianz

2. Sahara Life Insurance

3. Reliance Life Insurance

PREMIUM ALLOCATION CHARGE

This is a premium based charge. After deducting this charge from your premiums,
the remainder is invested to buy units. The tables given below will help show how
percentage of your premium is used to buy units. This percentage is called the
Allocation Rate. the allocation rates are guaranteed for the entire duration of the
policy term.

Premium Paid During Year (Rs.) Allocation Rate

1st year 2nd year

onwards

Upto 199999 40% 99%

Regular From 200000 to 499999 60% 99%

Premiums
From 500000 to 999999 70% 99%

From 1000000 to 1999999 80% 99%

From 2000000 and above 90% 99%

Single Premium Top-Up(s) 97.50% 99%

31
FUND MANAGEMENT CHARGE (FMC)
In the long term, the key to building great maturity values is a low FMC. The daily
unit price already includes our low fund management charge of only 0.80% per
annum of the fund’s value.

SURRENDER CHARGE
This is the charge we will apply when the policy is surrendered. It is equal to 60%
of the difference between the regular premiums expected and received in the first
year of the contract.

OTHER CHARGES
The following is the set of other charges that we will take from your policy.
Charges Explanation
Policy A charge of Rs. 20 per month is charged to
Administration cover regular administration costs. We take
Charge the charge by canceling units
proportionately from each of the funds you
have chosen.
Mortality and other Every month we make a charge for
Risk Benefit providing you with the death or critical
Charges* illness cover (which includes the SA plus a
value of the future premiums payable) in
your policy. The amount of the charge taken
each month depends on your age. We take
the charge by canceling units
proportionately from each of the funds you
have chosen.
Switching Charge 24 switching will be given free in a policy
year and any additional switch will be
charged Rs. 100 per switch

32
Partial Withdrawal 6 partial withdrawal requests will be free in
charge a policy year and any additional partial
withdrawal request will be charged Rs. 250
per request
Revival Charge A charge of Rs. 250 is charged for revival to
cover for administrative expenses
Miscellaneous This is a charge levied for any alterations
Charge within the contract like premium redirection
or adhoc policy servicing. 12 premiums
redirection request will be free in a policy
year and any additional premium
redirection request will be charged Rs. 250
per request. 6 policy servicing requests will
be free in a policy year and any additional
policy servicing request will be charged Rs.
250 per request.

REWARD
 HDFC Life was adjudged one of India's Best Companies to Work for in The
India's Best Companies to Work for study conducted by The Economic
Times & Great Place to Work Institute.India's Best Companies to Work For
- The India's Best Companies to Work for study is conducted by The
Economic Times & Great Place

 HDFC Life received the ICAI Awards - Gold Shield for Excellence in
Financial Reporting for the Annual Report 2015-16
 HDFC Life received the Indian Insurance Awards for Best Product Innovation
(Life Insurance) by Fintelekt.

33
 TATA AIG LIFE INSURANCE COMPANY
LIMITED

Tata AIG is a joint venture that is backed by the Tata Group, one of the India’s most
respected Industrial Conglomerates, with revenue of over Rs. 40,000 cores, and
American International Group, Inc. (AIG), the leading US based international
insurance & Financial Services Organization.

 THE TATA GROUP 74%

 AIG 26%

Tata AIG offers a gamut of innovative products in the Life Insurance Sector. Tata
AIG General Insurance Company, which started its operations in India on 22
January 2001, provides insurance to individuals and corporates. It offers a range of
general insurance products including insurance for automobile, home, personal
accident, travel, energy, marine, property and casualty as well as specialized
financial lines. The company's products are available through distribution channels
like agents, brokers, banks, and direct channels like telemarketing, digital marketing,
worksite etc.

34
American International group Inc. (AIG), the leading US Based International
Insurance and Financial Services Organization with a presence in over 149countries
and jurisdiction throughout the world. AIG is the largest Insurance Co., founded in
1919 and it has successful 84 years of history.AIG global business also includes
financial services and asset management, financial products, consumer finance etc.

Mission and Vision

To win the trust of individuals, trade, industry and commerce and protect citizens,
corporate, cooperatives and international investors in India.

To be the industry leader by building customer satisfaction through fairness,

transparency and quick response.

AIG is amongst the few ‘AAA’ rated companies in the world

Sales Force of 115,000 World Wide.

Revenue $ 62.4 billion (Rs. 3,12,000 crores)

Net Income$ 7.66 billion (Rs. 38,300 crores)

Assets$ 492.98 billion (Rs. 24,64,900 crores)

SWOT ANALYSISS TRENGTHS:

1. No. 1 Private Player in the insurance industry in India

2. Life Insurance linked with Investments

3. Tax benefits

4. Security against loans

5. Helps in future planning and provides financial consultancy.

6. Covers risk.

35
WEAKNESS:

1. Negativity relating insurance and ‘Agents’

2. No fixed Salary.

OPPORTUNITIES:

1. High Network Individuals (HNI)

2. A clear career path

3. All round support through exclusive advertising, own in house consultant,

andworld-class training.

4. A comprehensive benefit package.

PRODUCT DETAILS

1. TATA AIG LIFE COMPREHENSIVE SUPERANNUATION SCHEME

POLICY

 Meaning

Our traditional Superannuation product acts as a valuable tool to enhance the

company’s image whilst providing for a dignified retired life for the
employees.

 Key Features
1) Plan design and advice on Trust Formation/Deed of Variation.
2) Actuarial valuation for Defined Benefit Scheme as per internationally
accepted practices once in a year.
3) Scheme registration and ongoing legislative compliance.
4) Investment management and reporting to trustees.
5) Administration services and benefit payments.

36
2. TATA AIG LIFE RETIREMENT ASSURE GROUP GRATUITY
SCHEMEPOLICY

 Meaning
As per the Payment of Gratuity Act 1972, an employer is obliged to pay
gratuity to an employee after he/she has rendered a continuous service of at
least 5 years. Gratuity is payable to such an employee on:

1) Normal retirement
2) Resignation/early retirement

Death or disablement due to accident or disease (completion of 5 years of

service is not necessary in such cases).

 How will the Employer/Trustee contribute to the Gratuity Scheme?

Employer/Trustee of the Gratuity Scheme shall fund for gratuity liability by:

1) Remitting the recommended contribution for the past service and an

annual contribution for the future service
2) Transferring existing assets if any to Tata AIG Life based on
mutually agreed asset valuation

 How does the Unit Linked Gratuity Plan Structure work?

1) The Fund will be managed on a unitized basis.
2) Any contribution received will be converted into units based on the
applicable fund unit price.
3) The fund value of the Gratuity Fund at any given time is based on the
unit price declared at the close of business on the date on which the
units are allocated.

37
3. TATA AIG LIFE ASSURE GOLDEN YEARS PLAN

 Meaning
Tata AIG Life Assure Golden Years(Assure Golden Years) is an endowment
policy that provides both safety and steady returns. In the unfortunate event
of your death, your dependants will receive the sum assured; otherwise your
savings will continue to grow. Should you live past the term of the policy,
you will receive both the sum assured as well as a host of bonuses.

 Key Features
1) A guaranteed addition of 10% of the sum assured if the policy has
been in force for 10 years or more, is payable on death or maturity.
2) A reversionary bonus is payable on death or maturity.
3) A Terminal bonus paid on maturity or death if the policy has been in
force for a minimum 10 years.
4) Reversionary and Terminal bonuses are non-guaranteed and are
dependent on Company performance.
 Tax Benefits, Riders and Age Eligibility
1) Premiums paid under this plan are eligible for tax benefits under
Section 80C of the Income Tax Act, 1961. Any sum received under
this plan is exempt from tax under section 10(10D) of the Income
Tax Act, 1961.*
2) Term, Accident, Disability and Critical Illness riders are available for
added protection.
3) Policy duration runs from the time of purchase up to age 60.
4) Policy is available for persons between 18 to 50 years of age.

38
4. TATA AIG LIFE MAHALIFE GOLD PLAN

 Meaning

This unique policy is an ideal planning vehicle to fund your retirement. It

provides a steady income and insurance coverage for life. Premiums are
payable only for the first 15 years, and can be used to cover the future
expenses of your children.

 Key Features
1) A guaranteed annual coupon of 5% of the sum assured every year for
the rest of the insured’s term from the 10th policy anniversary.
2) Yearly cash dividends are available from the 6th policy anniversary
onwards (depending on Company performance).
3) The entire sum assured is paid tax-free as per current Income Tax
Laws.

5. TATA AIG LIFE NIRVANA PLUS PLAN

 Meaning

The Tata AIG Life Nirvana Plus (Nirvana Plus) policy is India’s first and
only pension policy with a guaranteed addition of 10% of the sum assured
every 5 years. You can choose from three levels of cover, which is your
amount of Sum Assured: Rs. 1 lakh, 2 lakhs & 4 lakhs. You can also decide
the age you want to retire: 55, 58 or 60 years of age.

 Key Features
1) 10% of sum assured is added to your sum assured for every 5 years of
paid premiums.
2) Rs. 1 lakh will be paid directly to you should you be diagnosed with a
covered critical illness (after a 30 day survival period) for first 3 years of
the policy.

39
 3) Deaths that occur during the period of the policy will result in an
immediate payment of the full sum assured to your beneficiary, plus
guaranteed additions and bonuses (if any).
4) Deaths that occur due to accidental causes during the plan period will
result in an immediate payment of double the sum assured, plus
guaranteed additions and bonuses (if any).
5) Payment of up to one third of your Sum Assured as lump sum cash upon
reaching your chosen retirement age. The remainder is used to buy a
monthly income plan that will generate a monthly cash income.

REWARD
Mumbai, 20 Feb, 2017: Tata AIA Life Insurance has won the Golden Peacock
Award for Risk Management.

Gallup Great Workplace Award : Tata Capital, the financial services arm of the Tata
Group, is proud to announce that it has received the 2015 Gallup Great Workplace
Award. The award was created by Gallup, one of the world's leading performance
management consultancies, to recognize organizations for their extraordinary ability
to create an engaged workplace culture that drives business outcomes.

The Communicator Awards: Tata Capital's Half Stories initiative, part of the 'Do
Right' initiative, has won the Award of Excellence (Gold) in the Integrated
Campaign category at The Communicator Awards 2014. The Communicator
Awards is the leading international awards program recognizing big ideas in
marketing and communications.

CII HR Excellence Awards: Tata Capital, the financial services arm of the Tata
Group, has been awarded the CII HR Excellence Recognition in the category of
'Strong Commitment to HR Excellence'. The prestigious award ceremony was held
on 24th September, 2013 at the CII National HR Excellence Award Confluence in

40
 CLAIMS PROCESS IN INSURANCE

 Filing a Life Insurance Claim

 Claim settlement is one of the most important services that an insurance
company can provide to its customers. Insurance companies have an
obligation to settle claims promptly. You will need to fill a claim form and
contact the financial advisor from whom you bought your policy. Submit
all relevant documents such as original death certificate and policy bond to
your insurer to support your claim. Most claims are settled by issuing a
cheque within 7 days from the time they receive the documents. However,
if your insurer is unable to deal with all or any part of your claim, you will
be notified in writing.

41
 COMPARATIVE ANALYSIS OF PRODUCTS
OFFERED BY VARIOUS INSURANCE COMPANIES

Indivdual Family Personal

Company cover floater Accident
name policies Policies policies Group policies
Bajaj Individual Family Floater 1.Personal 1.Group Health Guard,
Health Guard Health Guard Guard, 2.Group personal
Alliaanz GIC
2.Sankat accident,
Mochan 3.Group critical illness,
4.Workmen's
compensation

Reliance Reliance 1.Reliance Reliance 1.Group med claim,

Individual HealthWise Individual 2.Groupersonal
general
Mediclaim Policy, - Standard Personal accident
insurance Insurance Policy Plan,2.Reliance Accident Policy
HealthWise Policy

TATA AIG Individual N.A 1.Accident Tata AIG Group

Accident and Guard, Personal Accident
GIC
Sickness 2.Income Guard, Insurance( P.A Cover)
Hospital Cash 3.Secured
Income Plan,
4.Maharaksha
Personal Injury
Plan

ICICI Health Family Floater Individual N.A

Advantage Plus Health Insurance Personal
Lombard
Insurance Accident
GIC Insurance

42
IFFCO Individual Swasthya Kavach Group Personal Group Personal
Medishield (Family Health Accident Accident Insurance
TOKIO GIC
Insurance Policy Insurance) Policy Insurance policy(P.A. cover)
policy(group
only)

MAX BUPA HEART BEAT- Family first( for N.A

INDIVIDUAL( joint families),
silver , gold and Family
platinum) floater(nuclear Employee First Health
families) Insurance
Future Health N.A
FUTURE
Suraksha – Future Health Future Accident
GENERALI Individual Suraksha Family Suraksha

The table provides the following data-

Future Generali is having only 3 products in the health insurance segment.

 Other companies are offering many products which are especially desgined
for health insurance segment.

 Future Generali is providing one product each for individual cover, family
floater and personal accident insurance.

 For the personal accident section, Future Generali is having a ssingle

product, whereas many other companies are providing more than one
product, and thus it becomes clear that they have designed different products
for the personal accident market also covering different situations.

 If we take a look at the table we can see majority of companies are providing
more than one product especially designed for at least one of the segments
i.e individual, family cover or P.A cover.

 Future Generali has no product in group medicalim policy section, whereas

many other companies are providing this cover and are getting advantage

43
 One big opportunity lies in the Group health policies as the market is still
very wide open, and in a developing nation like India full of national and
multinational companies, an opportunity for gaining advantage in the group
health insurance market is always there

 Since it has been previously discussed that Group polcies are getting popular
now with big corporate houses and institutes providing cover to their
employees and students respectively. So this segment of the health insurance
business is still untapped for Future Generali.

 We can see in this particular section of the health insurance market

companies design special product for the customers like tax saving, extra
care, parents health care etc.

 Future Generali has no product in the special benefit segment.

 Companies like Bajaj Allianz, Relaince, Tata AIG and ICICI Lombard are
gaining advantage in the market by providing these kinds of products.

 It’s a part of the market which has got no proper definition to it, so every
company has got the opportunity to design a product in some unorthodox
manner and place it in the market and gain profits.

 For every new company this particular zone in the health insurance market
is a brilliant opportunity to succeed and establish itself, and thus Future
Generali must capitalize on this aspect.

44
 QUESTIONAIRE
Consumer Behavior towards Insurance company.

Name Age

Occupation

Q.1 Do you know what Joint Venture Insurance Company is?

a. YES b. NO

Q.2 Which Joint Venture Insurance Company comes into your mind when you think
about investing?

a. ICICI Lombard General Insurance

b. HDFC And Standard Life

c. TATA AIG Life Insurance Company Limited

d. Other

Q.3 What do you think Insurance Is?

1. Necessity for Protection and security Ø

2. Imposition as an Extra Burden on expenditure Ø

3. A compulsory Tool for Tax Saving Ø

Q.4 Do you have any insurance policy?

a. YES b. NO

Q.5 What are the main considerations that a you look at, while purchasing an
insurance policy?

 Tax Ø Saving Ø Protection Ø Pension Ø Investment Ø

45
Q.6 Are you aware of brand name of TATA AIG Life Insurance Company Limited
and its products?

a. YES b. NO

Q.7 What would you see while purchasing an Insurance Policy from a Company?

1. Standing and Goodwill of the Company Ø

2. Product range of the Company Ø

3. Advertisement being given by the company Ø

4. Services beings given by the Company Ø

Q.8 Do you think India is growing in the market of insurance?

a. YES b. NO

Q.9 Have you ever visited any insurance company?

a. YES b. NO

Q.10 How would you rate the services of insurance company in India?

a. Good b. Bad c. Still more to improve d. excellent

46
 DATA ANALYSIS

Q.1 Do you know what Joint Venture Insurance Company is?

33%
YES
NO
67%

33% of people are not aware about the joint venture insurance company,and
what joint venture is.

Q.2 Which Joint Venture Insurance Company comes into your mind when you think
about investing?

ICICI Lombard general insurance HDFC And Standard life

TATA AIG Life insurance company other
15 14

10
8
7

1
0

Most of them are aware of HDFC And Standard LIFE and leas number of people
are aware of TATA AIG Life Insurance Company. And 7% refer other companys.

47
Q.3 What do you think Insurance Is?

Necessity for Protection and security Imposition as an Extra Burden on expenditure

A compulsory Tool for Tax Saving
30

25

20

15

10

More then 86% of people think insurance is necessity for protection and security
then tax saving and other service.

Q.4 Do you have any insurance policy?

33%
YES
NO
67%

67% of people have insurance policy in different insurance company.

48
Q.5 What are the main considerations that a you look at, while purchasing an
insurance policy?

TAX SAVING PROTECTION PENSION INVESTMENT

20

15

10

Most of the people consider to purchase insurance for protection and saveing.

Less are aware about the pension and investment and tax saving insurance policy.

Q.6 Are you aware of brand name of TATA AIG Life Insurance Company Limited
and its products?

17%
YES
NO

83%

83% of people are aware of brand name TATA AIG Life Insurance Company
Limited and its products. But when it comes to investment less no of people invest
in TATA AIG as compared to HDFC And Standard Life.

49
Q.7 What would you see while purchasing an Insurance Policy from a Company?

Standing and Goodwill of the Company Product range of the Company

Advertisement being given by the company Services beings given by the Company
15

10

While purchasing people see the goodwill and the service offered by the insurance
company, so to be success in insure the company has to focus on goodwill and the
services.

Q.8 Do you think India is growing in the market of insurance?

7%

YES
NO

93%

As per the survey 93% of people thing that there is a growth in insurance market in
India. And 7% don’t agree with the growth.

50
Q.9 Have you ever visited any insurance company?

37%
YES
NO
63%

Most of the people have visited the insurance company for various insurance related
activities.

Q.10 How would you rate the services of insurance company in India?

Good Bad Still more to improve excellent

18
16
14
12
10
8
6
4
2
0

Most of the people thing that the insurance company and its policy services is still
more to improve, for the betterment of the customer.

51
 CONCLUSION

Finding Joint venture partners has not been easy until now. Everyone knows
that joint ventures are the number one, fastest growing, most profitable form
of marketing strategy in the world, however building joint venture alliances
can be time consuming and unproductive if you don't know what to do or
where to find them. More importantly though, is the ingredient that makes a
joint venture become profitable and work and that is to actually have a joint
venture partner to create a joint venture alliance with.90% people know
about LIC Insurance Company. 75% people know about HDFC
Insurance Co. and 15% people know about other companies. Some
people preferred to the private companies because of their better
services.

52
 BIBLIOGRAPHY

Study Material HDFC Standard Life Insurance

Study Material LIC

Study Material ICICI Prudent

Websites

www.hdfcinsurance.com

www.iciciprulife.com

www.licindia.com

www.bimaonline

53