A SUMMAR TRAINING PROJECT REPORT ON Distribution Analysis and Agency Business

AVIVA LIFE INSURANCE COMPANY

THE PARTIAL FULLFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

UNDER THE KIND BY: GUIDENCE OF: KUMAR MISS. DUPINDER KAUR 90212233193

SUBMITTED MUKESH Roll No

LECTURER (CTIMS) (SEM.) SHAHPUR JALANDHAR (SESSION 2009-2011)

MBA 3RD

SUBMITTED TO: CT.INSTITUTE OF MANAGEMENT STUDIES JALANDHAR (AFFILATE TO PUNJAB TECHNICAL UNIVERSITY JALANDHAR (PUNJAB)

STUDENT DECLARATION

I hereby declare that the work presented in this project entitled Distribution analysis of agency business with Aviva life insurance company submitted towards completion of project in started 3rd semester of M.B.A at the CT Institute of Management Studies Shahpur Jalandhar, is an authentic record of my original work carried out under the guidance of lecturer Miss Dupinder kaur . I hereby declare that all the information given by me in this project is true to the best of my knowledge.

MUKESH KUMAR

GUIDE CERTIFICATE

This is to certify that Mukesh kumar of MBA 3rd semester bearing university roll no 90212233193 has completed his summer training project under my guidance.

ject Guide Kaur

Pro Miss Dupinder

ACKNOWLEDGMENT
Nothing concrete can be achieved without an optimal combination inspiration and preparation. No work can be accompanied without taken the guidance of experts. It is only critics from in generous that help transform a product into a quality product.
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For this, I am grateful to Mr. Shive Nair Narayan for his constant encouragement and invaluable critical

suggestions given during the review meetings. His timely advice and help proved his commitment and welfare of his students and the institute as a whole. Last but not the least, our sincere thanks to all the members who were a vital trust to our thoughts and needs throughout the functions assigned to group to get done and prove our best. Finally thanks to others at CTIMS, who put in numerous hours to make the tangible.

INDEX Chap. No
TOPICS

PAGE NO
5

1 2 3 4 5 6 7 8 9

INTRODUCTION

9-16

STUDY TOPIC- DISTRIBUTION ANALYSIS 17-38 AND AGENCY BUSINESS REVIEW OF LITERATURE OBJECT NEED AND SCOPE OF STUDY RESEARCH METHODOLOGY DATA ANALYSIS & INTERPRETATION SUGESTION AND RECOMMANDATION ANNEXURE BIBLIOGRAPHY

39-50 51-53 54-56 56-65 66-68 69-72 73-74

TABLE LIST
6

Sr.No 1. 2. 3. 4. 5. 6. 7. 8.

Table no Figure no -1.1 Figure no -1.2 Figure no -1.3 Figure no -1.4 Figure no -1.5 Figure no -1.6 Figure no -1.7 Figure no -1.8

Page No 58 59 60 61 62 63 64 65

EXECUTIVE SUMMARY
I have done my summer Internship Project from Aviva life insurance company the real life situation. This project work helped me to apply theoretical knowledge into practical aspects on collected data which was a worthy experience and during the discussion with company guide I realized that how important the project report is for the company and me. I also realized how team work, goal orientation and managing interpersonal relationships are integral part of professional life. In addition, I understood products of my company and its targeted customers. Also I got information what are the basic categories of Insurance products which are sold in the market and what are basic criteria for becoming the advisors of Aviva life insurance Company limited. I understood about the competitors of my company such as TATA AIG, Bajaj Allianz, MetLife etc and their products, after collecting data and analyzing it. There are a lot of insurers from both home and abroad, coming to Indian insurance market with their innovative products and services, which were previously not
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India Limited, Jalandhar. During my Winter

Internship Project; I implemented many concepts of marketing in

available to the individuals. What came as a boon for insurance was

a paradigm shift in consumer perception and preference due to a rainbow of benefits for exigencies like critical illness, disability and Accidental death, which were unthinkable. As my project titled Distribution Analysis and Agency Business in this topic I studied so many things I Studied the customer preferences towards for becoming advisors of Aviva Life Insurance Company & Recruitment of Insurance advisors requestionnaire a full understanding of the organizations goals and mission. Since Aviva believes in getting business from its team of unit managers, the advisors who are working under the unit managers are re-questionnaires to deliver their best. The unit managers the key activity is to recruit Insurance advisors. These advisors are the individual agents. The key areas of work are to
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build a team, arrange for their training at the organization, company them on their visits to clients and most importantly motivate them. In this regard the team of advisors with which each unit manager works with is carefully chosen and this indeed becomes a monthly task.

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INTRODUCTION
Aviva Life Insurance Company Limited was incorporated on July 20, 2000. The authorized capital of the company is Rs.2300 Million and the paid up capital is Rs. 1500 Million. The Company is a joint venture of Dabur (74%) and Aviva UK (26%). The Company was granted Certificate of Registration for carrying out Life Insurance business, by the Insurance Regulatory and Development Authority on may 24, 2002. It commenced commercial operations on june 1, 2002, becoming one of the first
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few private sector players to enter the liberalized arena. The Company is now operational in Mumbai, New Delhi, Pune, Chennai, Kolkata, Bangalore, Chandigarh, Ahmedabad, Hyderabad, Lucknow, Nasik, Jaipur, Cochin, Meerut, Mangalore, Ludhiana & Jalandhar. Till March 31,2002 the Company has issued 100,000 polices translating into a Premium Income of around Rs. 1,200 Million and a sum assured of over Rs.15,000 Million.

The Company recognizes that the driving force for gaining sustainable competitive advantage in this business is superior customer experience and investment behind the brand. The Company aims to achieve this by striving to provide world class service levels through constant innovation in products, distribution channels and technology based delivery. The Company has already taken significant steps to achieve this goal..

Vision and Mission

Their vision is to make Aviva Life Insurance Company the dominant new insurer in the life insurance industry. They hope they achieve their goals and targets through their commitment to excellence, focus on service, speed and innovation, and leveraging our technological expertise.
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The success of the Organization will be founded on its strong focus on values and clarity of purpose. These include: Understanding the needs of customers and offering them superior products and service Building long lasting relationships with their partners Providing an enabling environment to foster growth and Learning for their employees.

Management
Board of Directors The AVIVA Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad.

Name TR Ramachandran

Designation Chief Executive Officer & Managing Director 13

Rajeev Arora Monica Agrawal Vishal Gupta Sumit Behl Ravi Bhadani Munish Sharda Rishi Piparaiya Sandip Mallik Jyoti Vaswani K K Dharni Snehil Gambhir Rajiv Sehgal

Director, Finance & Actuarial Director, Corporate Initiatives Director, Marketing Director, Business Risk & Internal Audit Company Secretary and Senior Vice President- Compliance & Legal Director, Direct Sales Force Director, Bancassurance Director, HR Chief Investment Officer & Director, Fund Management Appointed Actuary Sr. Vice President, Transformation & Services Chief Information Officer & Sr, Vice President, IT

Vijayalakshmi Natarajan Senior Vice President, Operations

Corporate Office: Aviva life insurance company India Ltd Aviva tower sector road opp.course DLF phase-5 Sector 43 Gurgaon 122003 Telephone Number: 1800-180-2244 or 0124-2709046 SMS AVIVA to 5676737 Website: http://www.Avivaindia.com

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Claiming process Aviva life insurance

is committed to securing the future of

your loved ones, particularly in their time of need. Towards this end, we have developed and implemented a claim process to ensure the payment of genuine and legitimate claims at the earliest and to without false claim to protect the interests of our other policyholders. In line with our philosophy of easing the financial burden on policyholders and their nominees AVIVA insurance with make a

15

claim payment within a working days from receipt of the last requestionnaires. Claim process Documentation Forms Claim Process :Our claim is 1. Handled personally 2. Easy to understand 3. Flexible enough for speedy decisions. 4. Simple documentation

Aviva have four step claim process

1. Claim out to intimate to Aviva insurance about the

claim.
2. Aviva life insurance to help the claim out to complete

the documentation.
3. Claim out to submit the questionnaire documents. 16

4. Aviva insurance company to take decision on the claim.

Documentation:
Standard

documents

re-questionnaire

for

claim

processing. Written intimation of the claim. Original policy document. Death certificate / hospital certificates.
Claimants statements with discharge form.

Depending on the facts and circumstances of the claim, the company documents. Forms The form below will help you file action Critical illness/major surgical Assistance intimation. Death claim intimation. may requestionnaires for some additional

Claimants statements (Accidental death claim) Claimants statements (Non- Accidental death claim)
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18

Insurance Solutions for Individuals

19

Aviva life insurance has a wide array of insurance plans that have been designed with the philosophy that different individuals are bound to have differing insurance needs.

The ideal insurance plan is one that addresses the exact insurance needs of the individual that will depend on the age and life stage of the individual apart from a host of other factors.

Savings & Wealth Creation Solutions

Wealth Creation Plans give the customer the dual benefit of protection along with the potentially higher returns of marketlinked instruments. The most important benefit of ULIPs is the flexibility they give the customer in choosing the premium amount and also choosing the underlying fund in which this money is to be invested. Wealth creation plans also offer the customer more liquestionuidity options as compared to

traditional plans. As such,

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ULIPs are ideal for customers who want the protection of a life cover to be allied to the returns of market linked instrument giving them an unmatched combination of benefits.

Cash Plus is a transparent, feature-packed savings plan that

offers 3 levels of p33333rotection as well as liquestionuidity options.

SavenProtect is a traditional endowment savings plan that

offers life protection along with adequestionuate returns.

CashBack is an anticipated endowment policy ideal for

meeting milestone expenses like a childs marriage, expenses for a childs higher education or purchase of an asset. It is available for terms of 15 and 20 years.

LifeTime Super & LifeTime Plus are unit-linked plans that

offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. Each offer 4 fund options ? Preserver, Protector, Balancer and Maximiser.
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Life Link Super is a single premium unit linked insurance Plan

which combines life insurance cover with the opportunity to stay invested in the stock market.

Premier Life Gold is a limited premium paying plan specially

structured for long-term wealth creation.

Invest Shield Life New is a unit linked plan that provides

premium guarantee on the invested premiums and ensures that the customer receives only the benefits of fund appreciation without any of the risks of depreciation.

Invest Shield Cash back is a unit linked plan that provides

premium guarantee on the invested premiums along with flexible liquestionuidity options.

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Protection Solutions
The sole objective of these plans, as their name indicates, is to serve the protection needs of the customer and by doing so, safeguard ones family from the financial implications of

unfortunate circumstances than one cannot foresee. Under the Protection Plans platform, Aviva life insurance brings the following products:

Life Guard is a protection plan, which offers life cover at very

low cost. It is available in 3 options level term assurance, level term assurance with return of premium and single premium.

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Home Assure is a mortgage reducing term assurance plan

designed specifically to help customers cover their home loans in a simple and cost-effective manner.

Child Plans
Education insurance under the AVIVA YOUNG SCHOLAR brand provides guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the childs life. Aviv young scholar plans are also available in unit-linked form ? both single premium and regular premium.

Retirement Solutions

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The primary objective of a retirement plan is to help you provide for your financial needs in your post retirement years. Forever Life is a traditional retirement product that offers guaranteed returns for the first 4 years and then declares bonuses annually.

Life Time Super Pension is a regular premium unit linked

pension plan that helps one accumulate over the long term and offers an annuity option (guaranteed income for life) at the time of retirement.

LifeLink Super Pension Is a single premium unit linked

pension plan.

Health Solution
Under Health Product Suite Aviva insurance offers plans under the following major need categories:

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Hospital

Care :

Get

benefit

amount

if

you

are

hospitalized for more than 24 hours i.e. at least 2 consecutive nights and must be charged for 2 days room expenses. The benefit amount is fixed and will be paid irrespective of actual hospitalization expenses .

DHCB is payable for hospitalization up to 90 days per policy year, which includes any days spent in Intensive Care Unit.

Health Assure and Health Assure Plus: Health Assure is a

regular premium plan which provides long term cover against 6 critical illnesses by providing policyholder with financial

assistance, irrespective of the actual

medical expenses. Health Assure Plus offers the added

advantage of an equestionuivalent life insurance cover .

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Cancer Care: is a regular premium plan that pays cash

benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions.

Group Insurance Solutions

AVIVA insurance also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees.

Group Gratuity Plan: Aviva some plans helps employers fund

their statutory gratuity obligation in a scientific manner. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations.

Group Superannuation Plan: Aviva offers both defined

contribution (DC) and defined benefit (DB) superannuation schemes to optimise returns for the members of the trust and rationalise the cost. Members have the

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option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement.

Group Immediate Annuities: In addition to the annuities to existing superannuation customers, we offer

offered

immediate annuities to superannuation funds not managed by us.

Group Term Plan: Aviva flexible group term solution helps

provide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death.

Flexible Rider Options

Aviva Life offers flexible riders, which can be added to the basic policy at a marginal cost, depending on the specific needs of the customer. Accident & disability benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary

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receives an additional amount equestionual to the rider sum assured under the policy. If the death occurs while

traveling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit.

Critical Illness Benefit: protects the insured against financial

loss in the event of 9 specified critical illnesses. Benefits are payable to the insured for medical expenses prior to death.

Income Benefit: This rider pays the 10% of the sum assured

to the nominee every year, till maturity, in the event of the death of the life assured. It is available on SmarKid and CashPlus

Waiver of Premium: In case of total and permanent

disability due to an accident, the future premiums continue to be paid by the company till the time of maturity. This rider is available with LifeTime Super, LifeTime Super Pension and CashPlus.

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Organizational Structure (Sales Division) of AVIVA Company

Chief Executive Officer

Head of Sales

Head of Sales

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Branch head or Sales Manager Zonal Manager

Front Line Unit Managers

Insurance Advisors

Insurance Advisors

RECRUITMENT PERSPECTIVE
Globalization and the knowledge economy have created profound impact on the structure and operation of organization. The third generation reforms, using second generation tools for employing first generation are at best an organizational anachronism. Obviously a great deal of innovation and fresh perspective on the entire body of organizational philosophy is critical for the success of the New Age of digital business environment.
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Manpower is critical for sustained competitive advantage in an organization. The recruitment process acts connects the organization and as the link that The growing

employees.

competitive environment among organization has result in demand to recruit highly skilled employees. As a result the recruitment strategies of firms have also undergone a paradigm shift. Expectation level of employees have shifted focus from the traditional perspective of contractual employment. Employees seek specialized generalists rather than generalized specialist. Skill based recruitment is the norm of present times. As a consequestionuence, job seekers need to mould and

constantly update themselves to remain employable in the fast changing workplace.

With the change in perception of employment philosophy, recruitment have become innovation in their method of
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recruitment. The response of the potential job seekers to the situational demand is termed as behavioral response. Research of human psychology indicates that such response is likely to be replicated in the actual job situation. Hence, there is a strong case for the behavioral recruitment model likewise, the employee has expectations from the organization and expects the

employee to be the best employee.

Employment is all about a pro arrangement between the employer and the job seeker, where both parties negotiate their respective expectation of each other in the transaction called employment.

With recruitment goes an old saying if you fail to plan you plan to fail. Hiring of candidates should be based on a correct notion of what is re-questionnarisd

33

for the best organization. Likewise, the organization should also understand the individual needs and interests of the prospective employees. In other words, goal congruence of the organizational and the individual is a critical input to insure motivational drive committed performance by an employee.

The best companies city a number reasons why recruiting and hiring are the most important practice areas for creating and retaining high performers The value of a good hire will continue to multiply throughout an organization, where a bad hire will

diminish value good people attract other good people. There is a strong correlation between good hires and positive corporate

results. Good hiring reduces the cost of turnover. And most important, appropriate recruitment and hiring is becoming even more critical as there is dearth of highly skilled employees.

Best organization succeed not because of their people, but because they have the right people.

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Being an Aviva insurance advisor can be an enriching and exciting career option. Its an opportunity to associate with an industry leader, be in touch with the and finest insurance practices from around the globe, and grow both personally and professionally.

ROLE OF THE RECRUITER

The Unit Manager who is the recruiter needs to understand that the insurance advisors are the keys of insurance business.

To generate more business company will

and number of

insurance advisors.

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 There requirements of recruitment that a manager make in

to the company fold is of great importance.

The manager follows the n number theory whereby more and more insurance advisors are inducted in to the company.

The Unit manager has to constantly motivate his team of advisors so that the company gets maximum business out of them.

The

business

each

insurance

advisor

bring

clearly

distinguishes between a performing Unit Manager and an over performing Unit Manager.

BENEFITS OF BEING AN INSURANCE ADVISOR

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Unlimited earning potential A clear career path

All round support through exclusive advertising, your ownin-hours consultant, and world-class training

A comprehensive benefit package

WHAT DOES IT TAKE TO BE AN BE INSURANCE ADVISOR?

Training Careers Rewards and Recognition

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Training at Aviva life insurance

At Aviva, we understand the importance of training in a dynamic business environment. Our advisors go through both generic and specific, professional programs that help them remain wellinformed and knowledgeable about the

companys products in the market. There is a further focus on soft skills, such as communication, managing long-term relationships and selling skills, which are very relevant in a service-driven industry like life insurance. State of the art infrastructure training facilities coupled with an excellent faculty, guarantee an exceptional

learning

environment.

For

advisors

who

might

be

occupied with their daily businesses/professional routines, Aviva life insurance also offers convenient training options such as online and self learning.

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A 17-day training schedule covers the mandatory IRDA training re-questionnaires and Aviva life insurance producttraining modules. Revision session ensure that the candidates thoroughly understand the course contents and are well prepared for the licensing examination training is interspersed with practical appointment settings with potential customers, giving advisors a feel of how their business will work from the very first day. All through the advisors to the advisors in achieving independence towards generating business.

Career Development
At Aviva life insurance , career development is emphasized upon from the very day the advisor joins the system. Though individual meetings with his or her manager, the advisor can discuss various issues related to business development and career enhancement. Expectations

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From the organization in terms of chalking a career in the insurance industry are also discussed Tiger Team: Aviva life insurance offers the Tiger Team programmed for identified high potential advisors. Handpicked by the management, these advisors are placed on fast track career path and recognized as Tiger trainers. The advisors can participate in this programmed, subject to certain criteria being fulfilled. Pinnacle Program: Absorption into the management is another career enhancement option provided at Aviva life insurance through the pinnacle program. The program helps advisor build

a fulltime career as a unit manager in the organization. Offering great potential for managing a team of advisors and personal development .Fast track pinnacle program is also available to advisors who are able to meet the performance criteria within the stipulated time.

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Reward and recognition:

Aviva life insurance advisors are constantly recognized and rewarded for their performance. Numerous contests all year round promote healthy competition amongst advisors and recognition for their efforts. Depending on level of business the advisor achieve in a year He or she can become a member of various clubs such as the Presidents club, Aviva life insurance Star International and the Aviva life insurance Star India club Each of these clubs have specific performance criteria for criteria for questionualification and members of these club are business the advisor achieves in a year , he or she can becomes a member of various clubs such as the Presidents club ,Aviva life insurance Star International and the Aviva life insurance Star India club

.Each of these clubs have specific performance criteria for questionualification and members of these clubs are entitled to
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attend seminars held at exotic international and domestic locations each year .Advisors can also questionualify for the renowned MDRT (Million Dollar Round Table ), an exclusive international insurance advisor club. While gathering information about prospective candidates we also make assumption of the type and the nature of business he or she will bring. Each advisor has his own domain where he

functions, taps the resources and brings business. Often the team of advisor who work with a particular unit manager work with a spirit of togetherness and also have the challenging spirit to meet the targets as given by their manager or the team leader. A unit manager may have several advisers working under him. The number can be more than hundred or two hundred. But the real chunk of business is brought by the small group of advisor who are constantly on move, making calls, seeking appointments and delivering result. This is the reason why stress has not been made to gather highly qualified advisers nor very
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experienced once. What Aviva aims at to tap the right people who can do business, bring business and retain the Business? More than having good education qualification, if an adviser can advise and adopt sound marketing he can do business.

Superior Products

High Quality Management

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Extensive Training Extenstion

Growth and prosperity of the advisers at Aviva

Strong Reputation

Excellent Customer

Attractive payments and Benefits

(Diagram showing the prospects for growth and prosperity of Insurance advisors at AVIVA insurance )

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AN OVERVIEW OF INSURANCE INDUSTRY 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.
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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 and c) Post Nationalization. Life Insurance was the first to nationalize 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 year of 2000.

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What is Life Insurance?

Life insurance is a guarantee that your family will receive financial support, even in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It thus permanently protects your family from financial crises. In addition to serving as a protective cover, life insurance acts as a flexible money-saving scheme, which empowers you to accumulate wealth-to buy a new car, get your children married and even retire comfortably. On the topic of distribution analysis and agency

business I find no any one single person did search.

Key Benefits of Life Insurance

Need for Life Insurance

Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed instruments, mutual income

funds and of course, life insurance. Given the plethora of choices, it becomes

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imperative to make the right choice when investing your hardearned money. Life insurance Is a unique investment that helps you to meet your dual needs ? saving for life's important goals, and protecting your assets.

Asset Protection
From an investor's point of view, an investment can play two roles asset appreciation or asset protection. While most financial instruments have the underlying benefit of asset appreciation, life insurance is unique in that it gives the customer the reassurance of asset protection, along with a strong element of asset appreciation. The core benefit of life insurance is that the financial interests of Ones family remains protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance
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occupies a unique space in the landscape of investment options available to a customer.

Goal based savings

Each of us has some goals in life for which we need to save. For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for one's retirement will begin to take precedence. Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the

new life stage. Life insurance is the only investment option that offers specific products tailor-made for different life stages. It thus ensures that the benefits offered to the customer reflect the needs of the customer at that particular life stage, and hence ensures that the financial goals of those life stages are met. The table below gives a general guide to the plans that are appropriate for different life stages.
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Life Stage Primary Need Life Insurance Product Young & Single Asset creation Wealth creation plans Young & JustAsset creation &Wealth creation and married protection mortgage protection plans Children's education,Education insurance, Married with Asset creation andmortgage protection & kids protection wealth creation plans Middle aged Planning for retirementRetirement solutions & with grown up & asset protection mortgage protection kids Across all lifeHealth plans Health Insurance stages

INSURANCE MARKET IN INDIA:

The India Insurance market despite having a highly elaborate history spanning almost two centuries, has come of age only in last 50 years after the formation of the Life Insurance Corporation (LIC) of India in 1956 and the entry of private companies into the market in 2000. Traditionally the Indian Insurance Market had centered on the life insurance

until recently, a host of other insurance policies covering a diverse range of issues and objects like Medical Insurance, Accident Insurance, Fire Insurance,
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Automobile Insurance and other policies which fall under the category of general insurance are being provided by various private insurance companies.

A) PERFORMANCE OF THE INDIAN INSURACE MARKET-A REPORT:

The following points will provide you an insight into the insurance market in India and its fast expanding prospects. The report is well supported by data based on detailed analysis that would help investors, financial service providers and global banking players to venture into the Indian insurance market.

Taking into account the changing socioeconomic demographics rate of GDP growth, behavior of consumers, and occurrences of natural calamities at regular intervals the market of Life Insurance in India is expected grow to the value around US $ 41.44 billion by the year 2009. The Market is expected to
51

grow at a compounded annual growth rate (CAGR) of more than 200% year over year (YOY) from year 2006 onwards.

in automobile insurance, public sector covers a substantial 68% of the total market value. Among individual companies that are worthy of mentioning, Aviva Lombard enjoys a whopping 53% market share in Accident Insurance while the remaining 47% is shared by New India Assurance and United India Insurance both belonging to the public sector The other key players of the market include:

A) In Public Sector:
Life insurance Corporation(LIC) of India, National Insurance Company Limited, Oriental Company Insurance Limited, New India Assurance

Limited and United India insurance Company Limited.

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B) In Private Sector:
ICICI prudential Life Insurance, Bajaj Allianz, SBI Life, HDFC Standard, Birla Sun life, Aviva Life Insurance, Kotak Mahindra old mutual, Max New York Life and Met life, Tata AIG Life, ING Vysya. Thus, the ever increasing population of the country will ensure constant boom in the India Insurance market in the distant future.

Superior to an ordinary savings plan as it provides full protection against Risk of death. Encourages and forces compulsory savings unlike other saving Instruments, wherein the saved money can be easily withdrawn. Provides loan to tie over a temporary difficult phase and is also acceptable as security for a commercial loan. Offers tax relief to policyholders.
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NEED FOR INSURANCE:

 Hedges risk against uncertainty. For a policy taken under the MWP Act 1874, (Married Women's Property Act), a trust is created for wife and children as beneficiaries. Based on the concept of sharing of losses, the society will benefit as catastrophic losses are spread globally.

NEED FOR LIFE INSURANCE:

Life brings with it many surprises, some pleasant and some not so and a Life Insurance Plan ensures that you are better prepared to face uncertainties. In a number of ways:

A) Protection:
You need life insurance to be there and protect the people you love, making sure that your family has a means to look after itself after you are gone. It is

a thoughtful business concept designed to protect the economic value of a

54

human life for the benefit of those financially dependent on him. That is a good reason. Supposing you are suffered by an injury that keeps you away from earning? Would you like to be a financial burden on your family, already losing out on your salary? With a life insurance policy, you are protected. Your family is protected.

B) Retirement:

Life insurance makes sure that have regular income after retire and also helps to maintain standard of living. It can ensure that your postretirement years will be spent in peace and comfort.

C) Savings and Investments:

Insurance is a means to Save and Invest. The periodic premiums are like Savings and you are assured of a lump sum amount on maturity. A policy

can come in really handy at the time of your childs, education or marriage! Besides, it can be used as supplemental retirement income.
55

D) Tax Benefits:

Life insurance is one of the best tax saving options today. Tax can be saved twice on a life insurance policy-once when you pay your premiums and once when you receive maturity benefits. Money saved is money earned

History of Life Insurance:

The earliest type of life Insurance was started by the Greeks and Romans. All surviving members contributions for the burial cost of a member. In case of the death of a member the cost of burial was made of the contributed fund. In the 17th century, the Tontine Annuity system was introduced where associations of individuals were formed without any reference to age, and a fund was created by equal contributions from each member. The sum collected was invested, and at the end of each year the interest was divided

56

among the survivors. The last remaining survivor received both the years interest and the entire amount of the principal.

The first organized life Insurance company was founded in 175 in Philadelphia, in north America. Subsequently, over the past three centuries, numerous life Insurance companies sprung up, making life Insurance a popular tool for protection coupled with investment.

INSURANCE IN INDIA The British introduced Insurance in India in the beginning of the 19th century. In 1818 a British film called as Bombay Life Insurance Company was established. Later the, the Bombay Life
57

Insurance Company was established in 1823. in 1874, the oriental Government Security Life Insurance Company was set up. The mismanagement of funds let to nationalization of Insurance business in 1956. today there are over 14 life Insurance companies in India.

HUMAN LIFE VALUE:Human life is the most valuable assets. This is easily proved if we were to assign a monetary values to our life. This values depends on our income-earning potential or the so called Human Life Values(HLV).A person income supports his family, helps them to get the most out of life .Month after month, year after year , his dependents lives the best way they can using the money that person earns .This money enables his household to run

smoothly ,children to go to college, takes care of medical bills, vacations and helps maintain the life styles . On the basis of a persons income or earning potential , human Life Values can be calculated .A simple rule of thumb to compute it is as follows :

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HLV=Present Annual Income * number of years until a person plans to retire If something were to happen to the person ,hear are a few possible ways of dealing with the financial implications: i) Draw from savings. But how long would the funds last? A lifetime of savings could be used up in a few months. ii) borrow from others : who will lend the money? Even family and friends can only help to an extent. Any anyway, this

would only be a short term solution. Borrow from others: who will lend the money? Even family and friends can only

help to an extent. And anyway, this would be a short- term solution. iii) Sell the assets: what price will one get or his assets? Would one like to iv) sell his home? His car?

Transfer the risk to an insurance company?

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It is recommended that should be transferred to an insurance company as its chapter, safer and smarter in the long run.

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OBECTIVES OF STUDY
The objective behind the conducting project exercise was to get useful insight about the insurance sector. I have prepared this report with some specific objectives. The objective is as under: 1. To understand the fundamentals of insurance.
2. Identify the diverse customer

and identify the various life

insurance products, which have been developed from time to time to meet the re-questionnarisment.
3. Learning how to Sell insurance professionally.

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4. As I was working under the FSC my main objective was to solve out the matter pertaining to the closing of the policies such as life time pension and life time. 5. Apart from this, I had to generate the leads through recruiting the new advisors for the company to generate business. NEED OF STUDY THE main need of the study is to find out the role of an agent in of society. That an agent perform his role in a good manor or not, then I find that all the agents are working in the company as a off role job, so they never think that a customer s facing how many difficulties, when he adopt an policy, on the behalf of a agent. So, my study clears that how a agent perform their duties.

SCOPE AND LIMITATION

The main purpose of the project is recruit Insurance advisors. Efforts have been made to understand the customers perception about the company and the role they associate with the job of an
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Insurance advisor. The scope of the project is two parts. First it means inducting of candidates who will bring business prospects for the company and secondly it was a tremendous opportunity to understand the Insurance market scenario in jalandhar. A major limiting factor of project was the perception of the people regarding the job of the Insurance advisor who are perceived as low paid Insurance agents. People fail to identify the challenges and the opportunities underlying this job.

SOURCES OF DATA

Primary Data: Personal discussion with Insured people & Uninsured people. Secondary Data: Books, Websites, data from company officials, and from existing customers.

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METHODOLOGY Research design is a framework or blue print for conducting the market research. It specifies the procedure for obtaining the information needed to the structure or solves the research problem. SOURCES OF DATA Data may be collected by many methods but we use only some methods for the data collection which are as under:PRIMARY DATA This data is collected by the interacting with various people in our society. The researcher originates primary data for the specific purpose of addressing the researcher problem or for selecting the best course of action to take in a given situation. Questionnaires are used for collecting the primary data. SECONDARY DATA This data is collected through various web sites, magazines, and prospects .Secondary data is collected for some purpose other than the problem at hand and the data is provision of insight into and comprehension of the problem situation confronting the researcher or for selecting the best course of action to take in a given situation.
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SAMPLING PLAN SAMPLE SIZE Sample sizes are 150 responders. Sampling size refer to the number of elements to be included in the study. We have taken general public as our respondents for the study because the whole society is being affected by foreign university. SAMPLE TECHNIQUE We have used techniques of random sampling. STATISTICAL TOOLS Percentage, graph, pie charts and tables are used for analysis of collected data. SAMPLE SOURCES Questionnaire Internet

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QUESTION:-1 Do you know about Aviva life insurance?

(a) (b)

yes. no.
CUSTOMERS

( (
In Percentage

) )

Consumer Response

Yes No Figure no -1.1

100 50

67% 33%

Findings-:
(a) (b)

67% people say we know about Aviva life insurance 33% people say he not know about Aviva life insurance

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QUESTION:-2. Is Aviva life insurance provides better services of insurance? (a)Yes (b)No
CUSTOMERS

( ) ( )
In Percentage

Yes No

90 10

90% 10%

Figure no -1.2 Findings-: (a)84%people say aviva life insurance company provide better insurnce company (b)16%people say aviva life insurence company not provide better service.

QUESTION:-3. Are you satisfied with your present Insurance Service? (a)Yes
(b)

( ) ( )
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No

Consumer Response

CUSTROMERS

In Percentage

Yes 75 75% No 25 25% Figure no -1.3 Finding-: (a) 75%people say he satisfied with aviva life insurance company services. (b) 25%people say he not satisfied with aviva life insurance service.

QUESTION:-4.What are the important features which satisfied the consumer provided by Aviva life insurance? (a)Good return. (b)Secure future
(c)

( ) ( ) ( )
In Percentage

Other benefits
Frequency

Consumer Response

Good return Secure future Other benefits

Figure no -1.4 Findings-:
(a) (b)

55 28 17

55% 28% 17%

55%people say good return is important feature of Aviva life insurance. 28% people say secure future is important feature of Aviva life insurance. 70

(c)

17% people say other feature is important of Aviva life insurance Company.

QUESTION:-5 Did you face any difficulty while using the Aviva life insurance policy? (a)Yes (b)No
Consumer Response Customers

( ) ( )
In Percentage

Yes No

3 22

12% 88%

Figure no -1.5 Findings-: (a) 12% people say he face problem with life insurance service. (b) 88% people say he not face problem with life insurance service.

QUESTION:-6 Is Aviva life insurance successful in the Backward & Rural Areas.? (a)Yes ( )
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(b)No
Consumer Response customers

( )
In Percentage

Yes No

14 11

56% 44%

Figure no -1.6 Findings-: (a) 56% people say Aviva life insurance successful in rural areas. (b) 44% people say Aviva life insurance not successful in rural areas.

QUESTION:-7 Is Aviva life insurance scheme are more economic. (a)Yes (b)No
Consumer Response customers

( ) ( )
In Percentage

Yes No

19 6

76% 24%

Figure no -1.7 Findings-: (a) 76%people say aviva life insurance scheme more economic. (b) 24% people say aviva life insurance scheme not more economic.
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QUESTION:-8 Do you think that, which policies provided by Aviva life insurance that helping to change your life? (a)Yes (b)No
Consumer Response CUSTOMERS

( (
24 1 96% 4%

) )

In Percentage

Yes No

Figure no -1.8 Findings-: (a) 96% people say aviva life insurance company change his life. (b) 4% people say he not feel change in life.

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FINDING AND RECOMMANDATION

With the help of a questionnaire we have tried to assimilate information that can throw light on the customers perception about the job. The questionnaire has been so designed that it not only understands the customers perceived notion on the role of an insurance advisor but also the market position of Aviva life insurance.

Finding : A major finding was regarding the mindset of people who perceive the Insurance advisor as low paid Insurance agents. People do not see the challenges and the opportunity to understand customers

perception which is available in this job. Most of the interviews were not aware of the player in the Insurance sector. Senior citizen and middle aged

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employees still believe that insuring and working worth a government company is less risky and reliable. Most of the interviews ranked reliability more important than profitability when asked about reason for choosing a particular Insurance company.

Since the Insurance advisors are not the employees of

the company, people had several misconception on the career prospects of this job. Following table shows the market position of the several private players in the market.

RECOMMENDATION :
Open some more branches in semi urban and rural areas. .

Improve customer service in all branches.

Introduced new ULIP PLAN for customer.

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 Provide most modern method of training.

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CHAPTER NO: 8

ANNEXURE

QUESTIONUESTIONNAIRE
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This questionnaire is prepared to study the project titled The comparative study of the consumer satisfaction towards Aviva life insurance Company as a compulsory part of M.B.A. program. NAME:-. AGE :- ... GENDER :- .. CONTACT No :-.
1

Do you know about Aviva life insurance.? (a) yes. (b) No. ( ( ) )

2. Is Aviva life insurance provides better service of insurance? (a)Yes (b)No ( ) ( )

3.

Are you satisfied with your present insurance service?

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(a)Yes (b)No

( ) ( )

4. What are the important features which satisfied the consumer provided by Aviva life insurance? (a)Good return. (b)Secure future (c)Other benefits insurance policy? (a)Yes (b)No
1.

( ) ( ) ( )

5. Did you face any difficulty while using the Aviva life ( ) ( )

Is Aviva life insurance successful in the Backward & Rural areas? (a)Yes (b)No ( ) ( )

Is Avivas insurance scheme more Economic.

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(a)Yes (b)No 8

( ) ( )

Do you think that Aviva life insurance policy is changing (a)Yes (b)No ( ( ) )

your life?

9. Do you have any suggestion for the improving services of Aviva life insurance?

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BIBLIOGRAPHY IRDA Journal. Aviva life insurance company magazines. Business news paper and magazines.

WEBSITE www.avivalife insurance.com www.google.co.in/indian insurance industry www.irdaindia.org www.ssrn.com www.insuranceguide.com www.financialexpress.com

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