1

CHAPTER I
INTRODUCTION

Overview of insurance industry
The insurance industry is a flourishing in world economy today, one need to keep in mind
that financial viability/stability of the insurance company is a major consideration at the time
of purchasing insurance contract. The viability factor is important because many a times, an
insurance premium paid currently provides coverage for losses in distant future and there are
instances where a number of insurance companies have gone insolvent, thus leaving their
policyholders with little helpful or no coverage. Therefore, even if the global industry is
strengthening more and more, the weak links are also co-existent and blind faith can lead to a
severe downfall. There are also independent rating agencies for insurance companies which
could be helpful in providing sound information on financial viability of various insurance
companies.
Wherever there is uncertainty there is risk. We do not have any control over uncertainties
which involves financial losses. The risks may be certain events like death, pension,
retirement or uncertain events like theft, fire, accident, etc.
Insurance is a financial service for collecting the savings of the public and providing them
with risk coverage. The main function of Insurance is to provide protection against the
possible chances of generating losses. It eliminates worries and miseries of losses by
destruction of property and death. It also provides capital to the society as the funds
accumulated are invested in productive heads.
IDBI Bank Limited is an Indian government-owned financial service company, formerly
known as Industrial Development Bank of India, headquartered in Mumbai, India. It was
established in 1964 by an Act of Parliament to provide credit and other financial facilities for
the development of the fledgling Indian industry.
It is currently 10th largest development bank in the world in terms of reach, with 2678
ATMs, 1477 branches, including one overseas branch at Dubai, and 996 centers, including
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two overseas centers at Singapore & Beijing. IDBI Bank is on a par with nationalized banks
and the SBI Group as far as government ownership is concerned. It is one among the 26
commercial banks owned by the Government of India.
The Bank has an aggregate balance sheet size of INR 3.2 trillion as on 31 March 2013.
The Industrial Development Bank of India Limited, now more popularly known as IDBI
Bank, was established as a wholly-owned subsidiary of Reserve Bank of India. The
foundation of the bank was laid down under an Act of Parliament, in July 1964. The main
aim behind the setting up of IDBI was to provide credit and other facilities for the Indian
industry, which was still in the initial stages of growth and development. In February 1976,
the ownership of IDBI was transferred to Government of India. After the transfer of its
ownership, IDBI became the main institution, through which the institutes engaged in
financing, promoting and developing industry were to be coordinated. In January 1992, IDBI
accessed domestic retail debt market for the first time, with innovative Deep Discount Bonds,
and registered path-breaking success
The following year, it set up the IDBI Capital Market Services Ltd., as its wholly-owned , to
offer a broad range of financial services, including Bond Trading, Equity Broking, Client
Asset Management and Depository services
In September 1994, in response to RBI's policy of opening up domestic banking sector to
private participation, IDBI set up IDBI Bank Ltd., in association with SIDBI. In July 1995,
public issue of the bank was taken out, after which the Government's shareholding came
down (though it still retains majority of the shareholding in the bank). In September 2003,
IDBI took over Tata Home Finance Ltd, renamed IDBI Home finance Limited, thus
diversifying its business domain and entering the arena of retail finance sector
The year 2005 witnessed the merger of IDBI Bank with the Industrial Development Bank of
India Ltd. The new entity continued to its development finance role, while providing an array
of wholesale and retail banking products (and does so till date). The following year, IDBI
Bank acquired United Western Bank (which, at that time, had 230 branches spread over 47
districts, in 9 states). In the financial year of 2008, IDBI Bank had a net income of Rs 9415.9
crores and total assets of Rs 120,601 crores
3

The Present Today, IDBI Bank is counted amongst the leading public sector banks of India,
apart from claiming the distinction of being the 4th largest bank, in overall ratings. It is
presently regarded as the tenth largest development bank in the world, mainly in terms of
reach. This is because of its wide network of 509 branches, 900 ATMs and 319 centers.
Apart from being involved in banking services.

Profile of the company
IDBI Federal Life Insurance Co Ltd. is a joint-venture of IDBI Bank, India's premier
development and commercial bank, Federal Bank, one of India's leading private sector banks
and Ageas, a multinational insurance giant based out of Europe. In this venture, IDBI Bank
owns 48% equity while Federal Bank and Ageas own 26% equity each. Having started in
March 2008, in just five months of inception, IDBI Federal became one of the fastest
growing new insurance companies by garnering Rs.100 Cr in premiums. Through a
continuous process of innovation in product and service delivery IDBI Federal aims to
deliver world-class wealth management, protection and retirement solutions that provide
value and convenience to the Indian customer. The company offers its services through a vast
nationwide network 2,308 partner bank branches of IDBI Bank and Federal Bank in addition
to a sizeable network of advisors and partners. As on 31st December 2013, the company has
issued nearly 5.5 lakh policies with a sum assured of over Rs. 32,110.48 crores.
IDBI Bank Ltd. is today one of India's largest commercial Banks. For over 40 years, IDBI
Bank has essayed a key nation-building role, first as the apex Development Financial
Institution (DFI) (July 1, 1964 to September 30, 2004) in the realm of industry and thereafter
as a full-service commercial Bank (October 1, 2004 onwards). As a DFI, the erstwhile IDBI
stretched its canvas beyond mere project financing to cover an array of services that
contributed towards balanced geographical spread of industries, development of identified
backward areas, emergence of a new spirit of enterprise and evolution of a deep and vibrant
capital market. On October 1, 2004, the erstwhile IDBI Bank converted into a Banking
company (as Industrial Development Bank of India Limited) to undertake the entire gamut of
Banking activities while continuing to play its secular DFI role. Post the mergers of the
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erstwhile IDBI Bank with its parent company (IDBI Ltd.) on April 2, 2005 (appointed date:
October 1, 2004) and the subsequent merger of the erstwhile United Western Bank Ltd. with
IDBI Bank on October 3, 2006, the tech-savvy, new generation Bank with majority
Government shareholding today touches the lives of millions of Indians through an array of
corporate, retail, SME and Agri products and services.
Headquartered in Mumbai, IDBI Bank today rides on the back of a robust business
strategy, a highly competent and dedicated workforce and a state-of-the-art
information technology platform, to structure and deliver personalized and innovative
Banking services and customized financial solutions to its clients across various
delivery channels.
As on March 31, 2014 IDBI Bank has a balance sheet of Rs.3, 28,997 crore and
business size (deposits plus advances) of Rs.4,33,460 crore. As an Universal Bank,
IDBI Bank, besides its core banking and project finance domain, has an established
presence in associated financial sector businesses like Capital Market, Investment
Banking and Mutual Fund Business. Going forward, IDBI Bank is strongly
committed to work towards emerging as the 'Bank of choice' and 'the most valued
financial conglomerate', besides generating wealth and value to all its stakeholders.











5

History of the Company

History of IDBI
2006: IDBI Bank, Federal Bank and Belgian-Dutch insurance major Fortis Insurance
International NV signed a MoU to start a life insurance company
2008: IDBI Fortis Life Insurance Co. Ltd., which started its operations in March 2008
2008: IDBI Fortis opens its second branch in Andhra Pradesh in Vijayawada
2008: IDBI Fortis Life positive on assured return products
2008: IDBI Fortis launches the Bondsurance Plan
2009: IDBI Fortis announces Rs 250cr capital infusion
2009: Nimbus ropes in IDBI Fortis as title sponsor of IndiaSri Lanka series
2009: 'IDBI Fortis' Boss-Ka-Boss receives PRCI Award
2009: IDBI Fortis launches Retiresurance Pension Plan
2009: IDBI Fortis scores with Goalsurance
2009: IDBI Fortis reaches the banks of Hoogly
2009: IDBI Fortis launches Incomesurance Immediate Annuity
2009: IDBI Fortis Life Insurance uses an interactive application to help users easily
calculate their taxes
2009: IDBI Fortis reaches the City of Eastern Light
2009: IDBI Fortis receives bronze Dragon at 'PMAA 2009'
2009: IDBI Fortis Life Insurance introduces financial inclusion plan in rural Orissa
2009: IDBI Fortis launches Termsurance Protection Plan
2009: IDBI Fortis redefines endowment & money back with Incomesurance
2009: IDBI Fortis to open 65 more branches; raise headcount by 1,000
2010: IDBI Fortis now renamed as IDBI Federal Life Insurance Company

6

Competitor Information
As we know that this time insurance sector in on boom. Reason is that it gives more profit
not only to the company but also to the investor. Today company invest money not only in
government securities and bonds but also in the equity which gives more return than the
government securities and bonds, and bank deposits. In the market lots of insurance company
who are trying to capture more and more market share. There are seventeen insurance
companies in the market which are launching plans after plans for capturing market share.
These insurance companies are thus:-
No. Name Of Insurance Company
1. Life Insurance Corporation Of India (LIC)
2. ICICI Prudential Life Insurance Company Limited
3. Reliance General Life Insurance Company Limited
4. Bajaj Allianz Life Insurance Company Limited
5. Birla Sun Life Insurance Company Limited
6. SBI Life Insurance Company Limited
7. Max Life Insurance Company Limited
8. Tata AIA Life Insurance Company Limited
Table no. 1: Competitors Information






7

Life Insurance Corporation of India
Every day we wake up to the fact that more than 220 million lives are part of our
family called LIC. We are humbled by the magnitude of the responsibility we carry
and realise that the lives that are associated with us are very valuable indeed.
Although this journey started five decades ago, we are still conscious of the fact that,
while insurance may be a business for us, being part of millions of lives every day for
the past 50 years has been a process called TRUST.

ICICI Prudential Life Insurance Company Limited
ICICI Insurance has two faces - ICICI Prudential Life Insurance Company and ICICI
Lombard General Insurance Company Limited. ICICI Prudential Life Insurance is a
74:26 joint venture between ICICI Bank India Ltd. and Prudential PLC based in UK.
Established in 2000, today ICICI Prudential has 735 offices, 22 Bank assurance
partners and over 2.4 lakh advisors. Having won public accolade as the most trusted
private life insurer in India, ICICI Prudential Life Insurance Co Ltd brings a wide
array of life insurance products to the customers.
In addition to these insurance policies, ICICI Prudential bring to you easy premium
payment solutions by cheque or cash at the branches, cheque payments at the drop
boxes, ECS, credit card payment and online payment options. Login to the ICICI
Prudential website and on the homepage find online premium payment option. You
also get an online asset allocator, inflation index calculator, human life value
calculator and life stage profiler.
ICICI Prudential offers you an opportunity to buy the desired insurance policy online
or get full details from an insurance agent or broker send to you or even get first hand
direct information at the helpdesks in the ICICI Prudential branches.
ICICI Lombard General Insurance Company Limited is a 74:26 JV between ICICI
Bank India ltd. - the second largest private sector bank in India and Lombard Canada
Ltd. - a Fairfax Financial Holdings Ltd group company that is a 26 billion USD
Company.
ICICI Lombard started their general insurance businesses in August 2001. It is India's
No.1 private general insurance company. It is also the first general insurance
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company to be awarded ISO 9001:2000 certification. They bring to you express fast
policy issuance and claims settlements.

Reliance General Life Insurance Company Limited
Reliance General Life Insurance Company is a Reliance Capital Ltd. product. Under
the guidance of Anil Dhirubhi Ambani Group, reliance insurance company has
secured the position of the top insurers in India. Reliance General Insurance is one of
the first non-life companies to get the license from the IRDA. The risks covered
under general insurance include property, marine, casualty and liability. Wide ranges
of products are available at Reliance Standard Insurance for both group and
individual customers. Each insurance policy is customized so as the customers feel as
if it was made for their needs. The distribution channels include branch network,
individual and specially trained insurance agents and insurance brokers and online
purchases of the insurance policies.
A completely customer centric company, Reliance Insurance Co Ltd aims at making
insurance affordable and accessible to all. The interests of the policyholders are
protected to the best of their capabilities and complete cooperation is provided in
insurance claims. A pan India presence of Reliance Standard Insurance brings the
insurance policy best suited to your requirements right to a branch near you.

Bajaj Allianz Life Insurance Company Limited
Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest
Insurance Company and Bajaj Finserv.
Allianz SE is a leading insurance conglomerate globally and one of the largest asset
managers in the world, managing assets worth over a Trillion (Over INR. 55, 00,000
Crores). Allianz SE has over 119 years of financial experience and is present in over
70 countries around the world.
At Bajaj Allianz Life Insurance, customer delight is our guiding principle. Our
business philosophy is to ensure excellent insurance and investment solutions by
offering customised products, supported by the best technology.

9

Birla Sun Life Insurance Company Limited
Birla Sun Life under the management of Mr. Nani B. Javeri as the CEO is a Rs.180
crore equity capital company. Birla Sun Life Insurance Co. Ltd is a 26:74 joint
venture between Sun Life Financial Services Canada and Aditya Birla Group. Just
four years down the industry pipeline, Birla Sun Life Insurance or BSLI has secured a
lead in private life insurance market. The distribution channels by BSLI include direct
sales force, alternate channels, IT systems and groups to ensure convenience of the
potential customers. Highly professional dealing, corporate governance and complete
transparency have earned Birla Sun Life Insurance Co Ltd the trust of its customers.
The many pioneering activities by Birla Sun life include Unit Linked Life Insurance
Solutions, Investment Linked Insurance Products and Web-Based Insurance Policies
sale. Birla Sun Life Insurance Company Limited also offers MF (Mutual Fund),
international equity funds and dream plans in insurance products that give you
complete transparency and value-for-money.

Max Life Insurance Company Limited
Max Life Insurance, one of the life insurers, is a joint venture between Max India Ltd.
and Mitsui Sumitomo Insurance Co. Ltd. Max India is a leading Indian multi-business
corporate, while Mitsui Sumitomo Insurance is a member of MS&AD Insurance
Group, which is amongst the top general insurers in the world. Max Life Insurance
offers comprehensive life insurance and retirement solutions for long-term savings
and protection to thirty lakh customers. It has a country-wide diversified distribution
model including the country's leading agent advisors, exclusive arrangement with
Axis Bank and several other partners.
In the financial year 2011-12 Max Life Insurance ranked fourth among private life
insurers with a market share of 8.6%. The Company has been one of the fastest
growing life insurance companies with total revenue of Rs.6,391 crore and enterprise
profit of Rs.733 crore for the Financial Year 2011-12. The Companys share capital
of Rs. 2,127 crore with a solvency margin of 534% is indicative of its financial
strength and stability. As on 31 March 2012, Max Life Insurance had assets under
management of Rs.17,215 crore.
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Tata AIA Life Insurance Company Limited
Tata AIA Life Insurance Company Limited (Tata AIA Life) is a joint venture
company, formed by Tata Sons and AIA Group Limited (AIA). Tata AIA Life
combines Tatas pre-eminent leadership position in India and AIAs presence as the
largest, independent listed pan-Asia life insurance group in the world spanning 16
markets in Asia Pacific. Tata Sons holds a majority stake (74 per cent) in the
company and AIA holds 26 per cent through an AIA Group company. Tata AIA Life
Insurance Company Limited was licensed to operate in India on February 12, 2001
and started operations on April 1, 2001.











11

SWOT Analysis of the Industry
IDBI Federal Life Insurance Ltd. Co.
Strengths
Domestic image of IDBI supported by Prudentials international image is
strength of the company.
Strong and well spread network of qualified intermediaries and sales person.
The company provides customer service of the highest order.
Huge basket of product range which are suitable to all age and income groups
Large pool of technically skilled manpower with in depth knowledge and understanding
of the market.
Weaknesses
Heavy management expenses and administrative costs.
Low customer confidence on the private players.
Poor retention percentage of tied up agents.
Opportunities
Insurable population According to IRDA only 10% of the population is
insured, which represents around 30% of the insurable population. This suggests more
than 300m people, with the potential to buy insurance, remain uninsured.
Ther e wi l l be i nfl ow of manageri al and f i nanci al expert i se f rom t he
worl d l eadi ng insurance markets. Further the burden of educating consumers
will also be shared among many players.

Threats
Other private insurance companies also trying to capture the same uninsured population.
Poaching of customer base by other companies. Most of the people dont understand the
need or are not willing to take insurance policies in general.
12

SBI Life Insurance Ltd. Co.
Strengths
Domestic image of SBI supported by BNP Paribas Cardifs international image
is strength of the company.
Strong capital and reserve base.
High customer confidence on the company.
Huge basket of product range which are suitable to all age and income groups.
The company also provides innovative products to cater to different needs of different
customers.
Strong and well spread network of qualified intermediaries and sales person.
Weaknesses
Heavy management expenses and administrative costs.
Vertical hierarchical reporting structure with many designations and cadres leading to
power politics at all levels without any exception.
Poor retention percentage of tied up agents.

Opportunities
Insurable population According to IRDA only 10% of the population is
insured, which represents around 30% of the insurable population. This suggests more
than 300m people, with the potential to buy insurance, remain uninsured.
International companies will help in building world class expertise in local
market by introducing the best global practices.
Threats
Other private insurance companies also trying to capture the same uninsured population.
Poaching of customer base by other companies.

13

Objectives of the study

The first & foremost step in any Study work is to identify the problems or objectives on
which the researcher has to work on. There are types of objectives met in this study, as
explained below:
To study the different plans and products offered by IDBI Federal and SBI Life Insurance
companies.
To Identify the companies which are key players and features or services that influences
the customer while he /she is into buying any product or services of insurance also to
know the customers perception regarding the products provided by the IDBI Federal and
SBI Life Insurance companies.
To study the growth and expansion of private sector industry.
To come out with conclusion and suggestions based on the analysis and the interpretation
of data.

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Scope of the study

The study is totally based on respondents behavior and knowledge available about the
products and plans offered by IDBI Federal and SBI Life Insurance Companies.
This project helps in understanding the various aspects of insurance sector as well as life
insurance i.e. the terms and conditions related to policies, mode of payment, level of return,
amount of premium.
The research is on present market scenarios of IDBI Federal and SBI Life Insurance
Companies and it is supported by latest data. For the collection of data requires the
questionnaire was drafted in order to get the information from 50 respondents in Delhi and
NCR.


15

Methodology

There are two method used for data collection:-
Primary Data
Primary research consists of the collection of original primary data. It is often undertaken
after the researcher has gained some insight into the issue by reviewing secondary research or
by analyzing previously collected primary data. It can be accomplished through various
methods, including questionaries and telephone interviews in market reaserch, or
experiments and directions and observations in the physical sciences, amongst others.

Secondary Data
Secondary data, is data collected by someone other than the user. Common sources of
secondary data for social science include censuses, organisational records and data collected
through qualitative methodologies or qualitative research. Primary data, by contrast, are
collected by the investigator conducting the research.
Secondary data analysis saves time that would otherwise be spent collecting data and,
particularly in the case of quantitative data, provides larger and higher-quality databases that
would be unfeasible for any individual researcher to collect on their own. In addition,
analysts of social and economic change consider secondary data essential, since it is
impossible to conduct a new survey that can adequately capture past change and/or
developments.




16

Primary Source of Data Collection: Questionnaire
Secondary Source of Data Collection:
Books
Websites
Data Presentation Tools:
The tools used for data presentation are:
Tables
Graphs:
o Pie Chart
o Bar Graph
Sample Size: 50
Research Design: Descriptive
Sampling Design: Probability Sampling
Sampling Technique: Simple Random Sampling
Sampling Unit: Students, Employees, etc.



17

CHAPTER 2
CONCEPTUAL FRAMEWORK

A conceptual framework is an analytical tool with several variations and contexts. It is used
to make conceptual distinctions and organize ideas. Strong conceptual frameworks capture
something real and do this in a way that is easy to remember and apply. A theoretical
structure of assumptions, principles and rules that holds together the ideas comprising a
broad concept.
India is gradually integrating with the world economy and the world is becoming more and
more interdependent. Gradually Globalization of financial markets is taking place. Highly
independent markets in financial instruments operate 24 hours a day. In the cyber tech
globalized world, money has become free of its place and it has become product which is
brought and sold. The trends envisaged during the next decade may be like; digital signatures
will be accepted in most countries, emergence of a world currency (presently VISA and
MASTER card allow people to buy around the world without conversion of local currency),
technology will be the prime driver of change (this includes telemetric as computer,
communications and electronics), global interdependence to increase, spectacular growth of
on-line banking, internationally recognized smart cards to bring the world closer to global
currency ,huge growth of wireless banking and payment services using next generation
mobile phones etc.
But going by near double digit growth of Indian economy and opportunities that are
emerging banking in India is likely to witness exponential growth in business, products and
services and delivery channels. The banking sector in India has undergone remarkable
changes since the economic reforms were initiated in 1991-92. One of the remarkable reforms
found crucial to study is emphasizes of public sector banks on retail banking.


18

Banking
A bank is a financial intermediary that accepts deposits and channels those deposits
into lending activities, either directly by loaning or indirectly through capital markets. A
bank links together customers that have capital deficits and customers with capital surpluses.
Due to their importance in the financial system and influence on national economies, banks
are highly regulated in most countries. Most nations have institutionalized a system known
as fractional reserve banking, under which banks hold liquid assets equal to only a portion of
their current liabilities. In addition to other regulations intended to ensure liquidity, banks are
generally subject to minimum capital requirements based on an international set of capital
standards, known as the Basel Accords.
Banking in its modern sense evolved in the 14th century in the rich cities of Renaissance
Italy but in many ways was a continuation of ideas and concepts of credit and lending that
had its roots in the ancient world. In the history of banking, a number of banking dynasties
notably the Medicis, the Fuggers, the Welsers, the Berenbergs, and the Rothschildshave
played a central role over many centuries. The oldest existing retail bank is Monte dei Paschi
di Siena, while the oldest existing merchant bank is Berenberg Bank.
Types of banking
You may hear of different types of banks: investment banks, retail banks, commercial banks,
online banks, and others. What do all the words mean? Different types of banks specialize in
different lines of business. See the basics on each type of bank.
Banks come with a variety of names, and one bank can function as several different types of
banks. Some of the most common types of banks are:
Retail banks
Commercial banks
Investment banks
Central banks
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Credit unions
Online banks
Savings and loans









20

Product offer by IDBI
General Insurance Plan
IDBI Bank has entered into an agreement with Bajaj Allianz General Insurance Co.
Ltd (BAGIC) to provide Non-life or General Insurance requirement. Apart from
other products, you have the choice of BAGICs three specially designed co-branded
products. These products offer comprehensive covers at a competitive price
exclusively through IDBI Bank branches and Point of Sales (POS).
"Family Care" for your health insurance requirements
"Home Care" for your home insurance requirements
"Business Care" for your shop and office insurance requirements
Life Insurance Plan
Investing in life insurance is one of the most important decisions in a person's life. Life
Insurance is a long term product that provides you many benefits and ensuring that your
loved ones are taken care of after you. At IDBI Bank, we've made that decision easier for
you and we recommend a policy thats best for you and will meet your financial
liabilities.
IDBI Bank Life Insurance Advantage
Hassle-free enrolment, with no medical tests or lengthy documentation
Life Cover of up to Rs. 3 lakhs and additional accidental death cover, equal to the
Sum Insured
Guaranteed additions of Rs. 50 per 1000 sum insured for first 3 policy years
Reversionary bonuses from 4th policy anniversary onwards and a terminal bonus
added at the time of maturity, or on earlier death

21

Mutual Fund
Mutual fund is made up of pools of funds collected from many investors for the
purpose of investing in securities such as stocks, bonds, money market etc. for capital
gain. With IDBI Bank you can invest in Mutual funds with a view to achieve and
accomplish your financial goals/objectives.

22

Product offer by SBI
Pension plan
Introduction:
Retirement - means giving up work and continuing to Celebrate Life! SBI Life - Saral
Pension is an Individual, Participating, Non Linked, Traditional Pension Plan, which
offers you complete safety from market volatility, by providing you a secure future and a
joyous retirement.

Key feature:
Guaranteed Bonus: Guaranteed simple reversionary Bonuses for first 5 years; @
2.50% for first three years and @2.75% for the next two years, of the Sum
Assured. Guaranteed bonus will be applicable only to in-force policies.

Vesting (Maturity) benefit: Sum Assured plus vested simple reversionary
bonuses plus terminal bonus, if any. The sum assured carries an implicit
guaranteed interest rate of at least 0.25% p.a. compounding annually on the total
premiums.

Death Benefit: Higher of total premiums paid accumulated at an interest rate of
0.25% p.a. compounded annually plus vested reversionary bonus plus terminal
bonuses, if any or 105% of total premiums paid.
23

Life Cover: Option of additional life cover through SBI Life - Preferred Term
Rider (UIN: 111B014V02).
On Vesting, you can buy immediate annuity from your entire proceeds or commute
upto one-third of the policy proceeds and buy annuity with the rest.


Product Snapshot

Age^ at
Entry
Min: 18 years
Max:
For Single premium: 65
years,

For Regular premium: 60
years

Age^ at
Vesting
Min: 40 years Max: 70 years
Policy
Term
Min:
For Single premium: 5
years,

For Regular premium: 10
years

Max: 40 years
Sum
Assured**
Min: Rs.1,00,000/- Max: No Limit
Premium
Frequency
Single / Yearly / Half-yearly / Monthly
#

The premiums for various modes as percentage of annual
premium are given below:
Monthly Premium- 8.4% of annual premium
Half-yearly Premium- 50.2 % of annual premium

Premium Min: Rs.7,500 p.a. Max: No Limit

Figure no. 1 : Product Snapshot

24

Saving Plan

Introduction:
SBI Life - Smart Money Back Gold is a savings plan with added advantage of life
cover and cash inflow at regular intervals. It is a participating traditional money back
insurance plan, meeting your various financial obligations at crucial junctures by its
wide range of policy terms. Regular payments of Survival benefits are made at
different durations during the policy term. In the unfortunate event of death at any
time within the Policy Term, your nominee would receive the full Sum Assured plus
Simple Reversionary Bonus & Terminal Bonus (if any), irrespective of Survival
Benefits already paid.

Child insurance
Introduction:

Life begins afresh when you become a parent. Its a joy you never felt and a feeling
you never experienced. When your child takes baby steps towards you, nothing seems
more blissful.

With this divine happiness comes a new sense of responsibility thats close to your
heart. You want to make your childs life a bed of roses or a tender cushion.

At SBI Life, we understand your needs and provide you with a flexible and all-
encompassing solution: SBI Life - Smart Scholar, a non participating Unit Linked
Insurance Plan.

Secure your childs future by gaining from the financial markets. Our specially
crafted Smart Scholar Plan is as accommodating as you are to your child.




Key Features:

Secure your childs future by gaining from the financial markets and much
more.

Dual protection for your family, in case you are not around -
Payment of base Sum Assured and
25

Inbuilt Premium Pay or Waiver benefit to ensure continuance of your policy

In addition, Accident Benefit which includes Accidental Death benefit and
Accidental Total and Permanent Disability (Accidental TPD) benefit, is an
integral part of the plan

Depending upon the term of the policy, Loyalty Additions would be paid
periodically, for in-force policies.

Enhanced investment opportunity through 7 varied fund options

Twin benefits of market linked return & insurance benefit

Liquidity through partial withdrawal(s)


Product Snapshot :

Age at Entry * Child: Min: 0 years Max: 17 years
Proposer: Min: 18
years
Max: 57 years
Max. Age* at
Maturity
65 years
Policy Term
Min: 8 years
Max: 25 years less childs age at entry
On Maturity, the age of child should be between 18 to 25
years)
Premium Payment
Terms (PPT)
Single Premium (SP)
5 to 25 years (subject to the limits of policy term)
Premium
Amounts(x100)
Minimum:
PPT Frequency Minimum(Rs)
SP Single 75,000
5 years to 7 years Yearly 50,000
Half Yearly 25,000
Quarterly 12,500
Monthly 4,500
8 years or more Yearly 24,000
Half Yearly 16,000
Quarterly 10,000
Monthly 4,000
Maximum : No Limit
Sum Assured For Single Premium:
Minimum Maximum
Across all ages Age<45 years Age=>45 years
26

1.25 * SP 5 * SP 1.25 * SP
For other PPTs:
Minimum Maximum
Age<45 years Age=>45 years Across all ages
Higher of: 10 * AP
or * T * AP
7 * AP 20 * AP


All the references to age are age as on last birthday
Figure no. 2 : Product Snapshot

Information Technology (IT) is very powerful in todays world, and financial institutions are
the backbone of the Indian economy. Indian Banking Industry today is in the midst of an IT
revolution. Nearly, all the nationalized banks in India are going for information technology
based solutions. The application of IT in Banks has reduced the scope of traditional or
conventional banking with manual operations. Nowadays banks have moved from disbursed
to a centralized environment, which shows the impact of IT on banks. Banks are using new
tools and techniques to find out their customers need and offer them tailor made products and
services. The impact of automation in banking sector is difficult to measure. The literature
available to the researcher on the application of Information technology in Indian banks are
classified according to the related topics as mentioned below:
1. Technological development in banking sector
1. Application of IT in banking
2. IT framework for Indian banking
3. Technological developments in cooperative banks
4. Indian banking sector: challenges and opportunities







27

Technological development in the banking sector
The technological development in the banking sector began with the use of Advanced Ledger
Posting Machines (ALPM) in the 1980s and nowadays banks are using core banking solution
(CBS) for providing better services to their customers. Over the years several studies have
been conducted both at the industry and academic level to examine the impact of IT on
banking productivity and profitability.
Dos et al. [1993] studied statistical correlation between IT spending and performance
measures such as profitability or stocks value. It is found that there is an insignificant
correlation between IT spending and profitability measures, implying thereby that IT
spending is unproductive.
Brynjolfsson and Hitt [1996][3], however, cautioned that these findings do not account for
the economic theory of equilibrium which implies that increased IT spending does not imply
increased profitability. More recent firm level studies, however, point a more positive picture
of IT contributions towards productivity. These findings raise several questions about mis
measurement of output by not accounting for improved variety and quality and about
whether IT benefits are seen at the firm level or at the industry level. Such issues have been
discussed in detail by Brynjolfsson [1993] and to a lesser extent by Brynjolfsson and Hitt
[1996].
The study conducted by Gotlieb, and Denny [1993], is one of the studies that deals with the
impact of IT on banking productivity per se. Computerization is one of the factors which
improves the efficiency of the banking transactions. They concluded that higher performance
levels have been achieved without corresponding increase in the number of employees. Also,
it has been possible for Public Sector Banks and Old Private Banks to improve their
productivity and efficiency by using IT.

Committee Reports
Information Technology and the Communication Networking Systems have revolutionized
the functioning of banks and other financial institutions all over the world. Reserve bank of
India has played an important role in implementation of information technology in banking
sector. Various researchers have also contributed in this regard. In addition to the work done
by various scholars in the area of Information Technology and Banking organization, RBI
28

had appointed various committees to work in this area. The reports of various committees are
briefly summarized below:

Conceptual framework applied to Banking sector
Concepts evolve through time and over time they assume different meanings. The concept of
competition is no exception. This paper discusses the evolution of the concept of competition
in general with a view to derive a theoretical framework for analyzing competition in
banking industry. Starting from the classical notions of competition it proceeds to some of
the latest approaches (Northcott (2004), Neuberger (1998), Toolsema (2003), Bolt and
Tieman (2001)). The ordinary Structure-Conduct-Performance approach does not involve
any analysis of market dynamics. Our approach introduces various aspects of industry
dynamics and growth. It provides a methodology to arrive at the market form in banking
industry through an analysis of all the aspects of basic conditions, structure, conduct and
performance. It is argued that sustained growth and dynamics of the industry is not price led.
Growth arises out of changing basic conditions and dynamics arises out of sharing the new
market created by basic conditions. Hence the prime mover of competition is rivalry among
firms to control market share and to internalize externalities rather than adjustments brought
about by the price mechanism. The present authors have noticed, in the industrial
organization literature, a tendency to conceptualizes and measures competition by resorting
to a simplistic framework. In recent literature, at one end of the spectrum, there are studies
like Demstez (1995) that virtually rules out conceptualization and measurement of concept.
And at the other end of the spectrum, there are certain studies that seek the convenient
position of equating concentration with competition.
Inclusion of housing loans within the priority sector. Direct finance up toRs.10
-
lakhs in
case of rural and semi-urban areas now form part of the priority sector advances. This
promoted banks to go for housing loans in a big way as it helped them to attain their
targets of priority sector lending.
29

Reduction in risk weight age bank's extending loans for acquisition of residential
house properties to 50 per cent from 100 per cent. Reduction in Capital Adequacy Ratio
requirement has effectively doubled the credit disbursement capacity of banks.
Banks have elongated repayment periods of retail loans years to 50/20 years besides
quoting fixed/ variable rate of interests based on their asset liability management
structure and study of behavioral pattern of demand and time deposits.
Deregulation of interest rate with option to quote fixed/ variable interstate.
Continuous reduction in bank rate, which resulted in reduction in lending rates as well.
South ward movement in CRR and SLR ratios increasing lending capacity of banks.
Characteristics Of Banking Firm And Industry
Financial institutions may be defined as economic agents specializing in the activities of
buying and selling at the same time financial contracts and securities. Banks may be seen as a
subset of the financial institutions, which are retailers of financial securities: they buy the
securities issued by borrowers and they sell them to lenders. In view of varied and complex
operations of a bank, an operational definition of a bank may be provided as follows. A bank
is an institution whose current operations consist in granting loans and receiving deposits
from the public. Definition of Banking as per the Banking Regulation Act, 1949 says-
banking means the accepting, for the purpose of lending or investment, of deposits of
money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft,
order or otherwise. The Act defined the functions that a commercial bank can undertake and
restricted their sphere of activities.


30

Approaches To The Study Of Banking
Analysis of a bank as a financial institution, and its relationship to economic development.
Study of a bank from the point of view of financial management.
A monetary economics approach which basically focuses on the relationship between
central and commercial bank.
Industrial Organization Approach We shall now discuss the above approaches to find
out their relevance fro study of competition in banking. The first approach is based
on institutional economics and does not provide a framework for studying
competition. The second approach relates to the internal management of finances in
the case of the individual banking firm. Wherever, we have considered asset
management, it is only in relation to industrial dynamics and not as an independent
study of finance. The third approach relates to pure theory of fractional reserve
banking which treats banks as mere passive entities leading to a mechanical modeling
of their responses.

IDBIS Approach To Competition And Banking
The extant approaches to competition in industry in general and banking industry in
particular invoke the industrial organisation paradigm with two arguments. The first is based
on price cost margins, (Gerosky (1989), Mueller (1986), Shaffer, (1993)) while the second
takes recourse to oligopoly (Molnar-Marton and Horvath, 2007, Uchida and Tsutsui, 2004,
Capie and Billings, 2004).






31

Evolution Of The Concept Of Competition
In the following section we have undertaken a study of the process of evolution of the
concept of competition. Such a study would obviously be very vast and cannot be completed
in a single paper. Therefore, we have restricted ourselves to gleaning out a notion of
competition that is appropriate in the context banking. The following review of the concept
seeks to bring out the major elements in the process of evolution of the concept, which
deserve a detailed consideration. The literature on competition is vast and so the review had
to be selective. It covers the major contributions to the concepts of competition due to Smith
(1976), Chamberlain
(1933), Schumpeter (1934), Hayek (1948) and Stigler (1995).
Problems, Prospects And Achievements Of Indian Banks
Indian banking sector is facing some problems during the post reform period due to the LPG
policy, and as a result the stiff competition raised within such problems are: lack of integrity,
increase in administrative expense, lack of professional behavior non-performing assets, low
profitability and productivity, loss making branches, scandals, attraction of customer,
customer orientation, market orientation, less satisfied customer, lack of marketing approach,
managerial expertise, technological staff, less friendly approach with customers and poor
capital base.

The Vision For The Next Decade
India is gradually integrating with the world economy and the world is becoming more and
more interdependent. Gradually Globalization of financial markets is taking place. Highly
independent markets in financial instruments operate 24 hours a day.
Macro-Economic Factors:
Shift in the pattern of GDP from hitherto agriculture and manufacturing sectors to services
sector with increase per capita income especially that of the younger generation. [India's
industrial sector accounted for about 21.8% of GDP, where as the services sector
32

accounted for around 56.1 of GDP in 2002-03 as per revised estimates released by
Central
.
Statistical Organization
Favorable Role of RBI:
Inclusion of housing loans within the priority sector. Direct finance up toRs.10
-
lakhs in case
of rural and semi-urban areas now form part of the priority sector advances. This promoted
banks to go for housing loans in a big way as it helped them to attain their targets of priority
sector lending.
Factor Affecting While Choosing Life Insurance Policy
Your Age.
This is an incredibly important factor. All other things being equal, the younger you
are the lower your rate will be. This is simply because you are less likely to pass away
when you are younger. This is why insurance experts recommend buying a policy
young.

Your Health History.
Your medical records will be an important deciding factor in your rate. If you have a
history of any kind of chronic disease or other potential health problems it makes you
a higher risk for the insurance company, resulting in higher rates.

Your Current Health.
You will generally have to go through a medical exam to look for things like high
blood pressure or other health concerns that might be a sign of future problems.
People who are currently in good health will see lower rates.

Your Weight.
If you are overweight or obese based on a height to weight ratio scale, you may pay
more for health insurance. Being overweight is known to come with potential health
problems that could result in earlier death. That means a higher risk for the insurance
company.
33


Your Occupation.
If you happen to be a race car driver, insurance companies have good reason to see
your job as a bit risky. Certain dangerous occupations may result in an increase in
rates or even denial of coverage because they carry such a heavy risk of accidental
death.

Smoking.
Smokers pay more for life insurance simply because of the many risks to health and
life inherent in the habit of smoking. If you quit smoking, you can qualify for lower
rates within a year just one of the good reasons to quit.

Drinking.
Heavy alcohol consumption can also take a major toll on your health. That is why
insurance companies ask about your drinking habits as well as smoking habits. Those
who drink more are likely to pay more for their insurance rates.

Your Family History.
Those with a major family history of serious illnesses such as heart disease and
cancer, which can be hereditary, may find themselves paying more for life insurance.
Genetically speaking, they are more likely to be diagnosed with the same terminal
illness and to die from it.

Your Gender.
Gender equality is a good thing, but your gender does say something about your life
expectancy. Women live longer than men as a general rule, which means they will
pay generally lower rates for life insurance.

The Policy Itself.
The longer the term of the policy and the larger the amount of the death benefit the
more you will pay for it. Simply put, this is because the risk that you will die during
34

the policy term is much higher when they are covering you for a longer time period.
And the more they will have to pay out on your death, the more they will charge you
for that coverage. Short term policies are more expensive than long terms, and whole,
or permanent life insurance is generally more expensive that any length of term.


35

Promotional Strategies Adopted In IDBI Federal

Following are the main ways in which IDBI Federal life Insurance company ltd promotes its
products/services and creates awareness in the market.

Newspaper: IDBI Federal has attained notice through many articles and
advertisements published in various national and regional newspapers in India like
the Economic Times, Times of India, The Hindu , Samachar Jagat, Vir Arjun,
Meghalaya Guardian etc. IDBI Federal spends around Rs 1040 per sq.cm for
promotional activities through newspapers. They position the ads and articles in such
a way that it catches the eye of the reader as soon as they start reading the newspaper
(See appendix for the articles).
Hoardings: IDBI Federal has also tried making their potential customer aware of
their products and policies through billboards and hoardings by positioning them in
strategic locations. As of now, the total number of hoardings which are put up in
Hyderabad region counts to a good 17 number. The total expenses spent by the
company for this promotional activity is Rs 4 lakh.
Pamphlets: Pamphlets are distributed across India at least 5 times in a month without
any cost. Its done to create maximum awareness about the products/services.
Magazines: There is no specific magazine in which advertisement is given. Its given
in magazines depending upon their sales and reputed magazines like Outlook, Money
etc. The advertisement is given every month at least once in any magazine.
Television: Mainly, the advertisement is shown on cricket channels, Star channels.
The main promotions were done during FEB & MARCH to:
Highlight the tax benefits
To combat competition as all the insurance companies would advertise during
this time at a great frequency. Also the company will soon start displaying
their advertisements on Satellite TV like SUN network, etc.
Distributors: A strong network of distributors and parent advisors also helps a lot in
promoting products/services of IDBI Federal by word of mouth. A Viral campaign is
also run on the Internet by wherein flash videos of working of products are explained
36

in a very humorous manner.
Local Events: The overall costs associated with such events totals to Rs. 2,00,000 per
annum such events are mainly conducted in Apartments, Schools, etc. Building an
engagement process around the solution being offered gives an additional boost to
this cause. Spelling Bee was a specially created spelling contest created to connect
with children. The engagement started with the spelling contest for kids and gave
their IRMs a natural opening for a discussion with parents about financial planning
for their childrens future needs like education. This is a sort of channel marketing
which IDBI Federal had adopted to create awareness as well as to educate the future
generation about the company and the importance of saving.

Also IDBI Federal involved them in developing their business by joining hands with
SAMHITA, a community development organization based out of Bhopal which works
towards bringing financial literacy to the underprivileged population in Madhya Pradesh.
They believe that such financial literacy among the under banked population will help bring a
holistic change in the way people perceive and understand financial products and their utility
at various stages in their life. This will ultimately help bring them closer to financial
inclusion.



37

7 Ps In Banking

Product
A product means what we produce. If we produce goods, it means tangible product
and when we produce or generate services, it means intangible service product. A
product is both what a seller has to sell and a buyer has to buy. Thus, an Insurance
company sells services and therefore services are their product. In India, the Life
Insurance Corporation of India (LIC) and the General Insurance Corporation (GIC)
are the two leading companies offering insurance services to the users. Apart from
offering life insurance policies, they also offer underwriting and consulting services.

Pricing
With a view of influencing the target market or prospects the formulation of pricing
strategy becomes significant. The pricing in insurance is in the form of premium
rates. The three main factors used for determining the premium rates under a life
insurance plan are mortality, expense and interest. The premium rates are revised if
there are any significant changes in any of these factors.

Place
This component of the marketing mix is related to two important facets
Managing the insurance personnel, and
Locating a branch.
The management of agents and insurance personnel is found significant with the
viewpoint of maintaining the norms for offering the services. This is also to process
the services to the end user in such a way that a gap between the services- promised
and services offered is bridged over. In a majority of the service generating
organizations, such a gap is found existent which has been instrumental in making
worse the image problem. The transformation of potential policyholders to the actual
policyholders is a difficult task that depends upon the professional excellence of the
personnel. The agents and the rural career agents acting as a link, lack
professionalism.
38

Promotion
The insurance services depend on effective promotional measures. In a country like
India, the rate of illiteracy is very high and the rural economy has dominance in the
national economy. It is essential to have both personal and impersonal promotion
strategies. In promoting insurance business, the agents and the rural career agents
play an important role.Due attention should be given in selecting the promotional
tools for agents and rural career agents and even for the branch managers and front
line staff. They also have to be given proper training in order to create impulse
buying. Advertising and Publicity, organization of conferences and seminars,
incentive to policy holders are impersonal communication. Arranging Kirtans,
exhibitions, participation in fairs and festivals, rural wall paintings and publicity drive
through the mobile publicity van units would be effective in creating the impulse
buying and the rural prospects would be easily transformed into actual policyholders.

People
Understanding the customer better allows to design appropriate products. Being a
service industry which involves a high level of people interaction, it is very important
to use this resource efficiently in order to satisfy customers. Training, development
and strong relationships with intermediaries are the key areas to be kept under
consideration. Training the employees, use of IT for efficiency, both at the staff and
agent level, is one of the important areas to look into. Human resources can be
developed through education, training and by psychological tests. Even incentives can
inject efficiency and can motivate people for productive and qualitative work.

Process
The process should be customer friendly in insurance industry. The speed and
accuracy of payment is of great importance. The processing method should be easy
and convenient to the customers. Installment schemes should be streamlined to cater
to the ever growing demands of the customers. IT & Data Warehousing will
smoothen the process flow. IT will help in servicing large no. of customers efficiently
and bring down overheads. Technology can either complement or supplement the
39

channels of distribution cost effectively. It can also help to improve customer service
levels. The use of data warehousing management and mining will help to find out the
profitability and potential of various customers product segments.3 | Journal of
Management and Science - JMS ISSN 2250-1819 (Online) / ISSN 2249-1260
(Printed)

Flow of activities: All the major activities of banks follow RBI guidelines.
There has to be adherence to certain rules and principles in the banking
operations. The activities have been segregated into various departments
accordingly.
Standardization: Banks have got standardized procedures got typical
transactions. In fact not only all the branches of a single-bank, but all the
banks have some standardization in them. This is because of the rules they are
subject to. Besides this, each of the banks has its standard forms,
documentations etc. Standardization saves a lot of time behind individual
transaction.
Customization: There are specialty counters at each branch to deal with
customers of a particular scheme. Besides this the customers can select their
deposit period among the available alternatives.
Number of stores: numbers of steps are usually specified and a specific pattern
is followed to minimize time taken.
Simplicity: In banks various functions are segregated. Separate counters exist
with clear indication. Thus a customer wanting to deposit money goes to
deposits counter and does not mingle elsewhere. This makes procedures not
only simple but consume less time. Besides instruction boards in national
boards in national and regional language help the customers further.

Physical distribution
Distribution is a key determinant of success for all insurance companies. Today, the
nationalized insurers have a large reach and presence in India. Building a distribution
network is very expensive and time consuming. Technology will not replace a
40

distribution network though it will offer advantages like better customer service.
Finance companies and banks can emerge as an attractive distribution channel for
insurance in India. In Netherlands, financial services firms provide an entire range of
products including bank accounts, motor,home and life insurance and pensions. In
France, half of the life insurance sales are made through banks. In India also, banks
hope to maximize expensive existing networks by selling a range of products.
The physical evidences include signage, reports, punch lines, other tangibles,
employees dress code etc.
Tangibles: banks give pens, writing pads to the internal customers. Even the
passbooks, cheque books, etc reduce the inherent intangibility of services.
Punch lines: punch lines or the corporate statement depict the philosophy and attitude
of the bank. Banks have influential punch lines to attract the customers. Banking
marketing consists of identifying the most profitable markets now and in future,
assessing the present and future needs of customers, setting business development
goals, making plans-all in the context of changing environment.







41

Problems Faced By IDBI
Net profit dropped.
Decline in sanction and disbursements.
Lack of proper leadership.
Break up of deal between DPS(Dhabol Power Corporation) and Maharashtra
Government.
IDBIs NPA increased rapidly.
Improper business practices.
ICRA downgraded IDBIs rating in 2001.
Failed to retain its top rated customers.
IDBI was not triple-A-rated entity.
High cost of funds.
Investors confidence in IDBI has come down drastically.




42

CHAPTER 3
DATA ANALYSIS & INTERPRETATION
Q.1 From how long you are using Insurance Policy?
S.No. Options No. of Respondents Percentage
1 1 Year 10 20
2 2 Years 15 30
3 More Than 2 Years 25 50
TOTAL 50 100
Table 2: Represent the Using of Insurance Policy


Figure 3: Represent the Using of Insurance Policy

Analysis and Interpretation: 20% of respondents responded that they having an insurance
policy from last 1year, 30% of respondents responded that they having an insurance policy
from last 2years, and 50% of respondents responded that they having an insurance policy
from more than 2years.

1
20%
2
30%
3
50%
43

Q.2 How important is to take an insurance policy according to you?
S.No. Options No. of Respondents Percentage
1 Very Important 35 70
2 Important 10 20
3 Not Important 03 06
4 Don't Know 02 04
TOTAL 50 100
Table 3: Represent the Importance of Insurance


Figure 4: Represent the Importance of Insurance

Analysis and Interpretation: 70% of respondents think that insurance is very important
because it secured our life from future uncertainty, 20% of respondents think that insurance
is important, only 6% of respondents think that insurance is not important and rest 4% of
respondents think that insurance neither important nor not important. From this chart it is
inferred that almost 90% people think that insurance is important.

70%
20%
6%
4%
Very Important Important Not Important Don't Know
0%
10%
20%
30%
40%
50%
60%
70%
80%
44

Q.3 Why do you want to take an insurance policy?
S.No. Options No. of Respondents Percentage
1 Investment 15 30
2 Tax Saving 10 20
3 Retirement 05 10
4 Security 15 30
5 Others 05 10
TOTAL 50 100
Table 4: Reason for Taking Insurance policy


Figure 5: Reason for Taking Insurance policy

Analysis and Interpretation: 30% of respondents take the insurance policy for the reason of
investment purpose, 20% of respondents take the insurance policy for the reason of tax
saving purpose, 10% of respondents take the insurance policy for the reason of retirement
purpose, 30% of respondents take the insurance policy for the reason of security purpose and
10% of respondents take the insurance policy for the others reason.

30%
20%
10%
30%
10%
Investment Tax Saving Retirement Security Others
0%
5%
10%
15%
20%
25%
30%
35%
45

Q.4 Which Insurance Company would you prefer?
S.No. Options No. of Respondents Percentage
1 IDBI Federal 17 34
2 SBI Life 16 32
3 LIC 12 24
4 Others 05 10
TOTAL 50 100
Table 5: Represent the Company Preferred


Figure 6: Represent the Company Preferred

Analysis and Interpretation: 34% of respondents prefer IDBI Federal as their insurance
company, 32% of respondents prefer SBI Life as their insurance company, 24% of
respondents prefer LIC as their insurance company and rest 10% of respondents prefer other
insurance companies.


1
34%
2
32%
3
24%
4
10%
46

Q5. ULIP depends upon the market conditions considering this factor in mind which
company would you prefer?
S.No. Options No. of Respondents Percentage
1 IDBI Federal 20 40
2 SBI Life 20 40
3 Others 10 20
TOTAL 50 100
Table 6: Represent the Company Preferred for ULIP


Figure 7: Represent the Company Preferred for ULIP

Analysis and Interpretation: 40% of respondents choose Unit Linked Insurance Plan of
IDBI Federal Life Insurance Company; next 40% of respondents choose Unit Linked
Insurance Plan of SBI Life Insurance Company and rest 20% respondents choose Unit
Linked Insurance Plan of other companies.

1
40%
2
40%
3
20%
47


Q6. If you want to take an insurance policy considering retirement benefits in mind which
plan would you prefer?
S.No. Options No. of Respondents Percentage
1 IDBI Federal Life personal Pension
Plus Plan
15 30
2 SBI Life Saral Pension Plan 20 40
3 Others 15 30
TOTAL 50 100
Table 7: Represent the Company Preferred for Retirement Plan


Figure 8: Represent the Company Preferred for Retirement Plan

Analysis and Interpretation: 30% of respondents choose Retirement Plan of IDBI Federal
Life Insurance Company; next 40% of respondents choose Retirement Plan of SBI Life
Insurance Company and rest 30% respondents choose Retirement Plan of other companies.
1
30%
2
40%
3
30%
48


Q7. If you want to take insurance policy for your children which plan would you prefer?
S.No. Options No. of Respondents Percentage
1 IDBI SL Young Star Super Premium 20 40
2 SBI Life Smart Scholar 15 30
3 Others 15 30
TOTAL 50 100
Table 8: Represent the Insurance Policy for Children Plan


Figure 9: Represent the Insurance Policy for Children Plan

Analysis and Interpretation: 40% of respondents choose insurance policy for their children
of IDBI Federal Life Insurance Company; next 30% of respondents choose insurance policy
for their children of SBI Life Insurance Company and rest 30% respondents choose insurance
policy for their children of other companies.

1
40%
2
30%
3
30%
49

Q8. If protection is your major concern which protection insurance policy would you focus
on?
S.No. Options No. of Respondents Percentage
1 IDBI Term Assurance Plan 23 46
2 SBI Life Smart Shield Plan 16 32
3 Others 11 22
TOTAL 50 100
Table 9: Represent the Protection Plan


Figure 10: Represent the Protection Plan

Analysis and Interpretation: 46% of respondents choose Protection Plan of IDBI Federal
Life Insurance Company; next 32% of respondents choose Protection Plan of SBI Life
Insurance Company and rest 22% respondents choose Protection Plan of other companies.


1
46%
2
32%
3
22%
50

Q.9 Rank the services rendered by IDBI Federal Life Insurance.
S.No. Options No. of Respondents Percentage
1 Extremely Satisfied 25 50
2 Satisfied 10 20
3 Neither Satisfied Nor Dissatisfied 05 10
4 Dissatisfied 05 10
5 Extremely Dissatisfied 05 10
TOTAL 50 100
Table 10: Represent the Service of IDBI Federal Life Insurance


Figure 11: Represent the Service of IDBI Federal Life Insurance

Analysis and Interpretation: 50% of respondents are extremely satisfied with the service of
IDBI Federal Life Insurance, 20% of respondents are satisfied with the service of IDBI
Federal Life Insurance, 10% of respondents are neither satisfied nor dissatisfied with the
service of IDBI Federal Life Insurance, 10% of respondents are dissatisfied with the service
of IDBI Federal Life Insurance and 10% of respondents are extremely dissatisfied with the
service of IDBI Federal Life Insurance.

1
50%
2
20%
3
10%
4
10%
5
10%
51

Q.10 Rank the services rendered by SBI Life Insurance.
S.No. Options No. of Respondents Percentage
1 Extremely Satisfied 20 40
2 Satisfied 10 20
3 Neither Satisfied Nor Dissatisfied 10 20
4 Dissatisfied 05 10
5 Extremely Dissatisfied 05 10
TOTAL 50 100
Table 11: Represent the Service of SBI Life Insurance


Figure 12: Represent the Service of SBI Life Insurance

Analysis and Interpretation: 40% of respondents are extremely satisfied with the service of
SBI Life Insurance, 20% of respondents are satisfied with the service of SBI Life Insurance,
20% of respondents are neither satisfied nor dissatisfied with the service of SBI Life
Insurance, 10% of respondents are dissatisfied with the service of SBI Life Insurance and
10% of respondents are extremely dissatisfied with the service of SBI Life Insurance.

1
40%
2
20%
3
20%
4
10%
5
10%
52

Q11. Except IDBI Federal Life Insurance and SBI Life Insurance which of the following
company would you prefer?
S.No. Options No. of Respondents Percentage
1 ICICI Prudential Life Insurance 10 20
2 Tata AIA Life Insurance 05 10
3 Life Insurance Corporation of India 25 50
4 Max New York Life Insurance 05 10
5 Others 05 10
TOTAL 50 100
Table 12: Represent the Other Insurance Company Preferred


Figure 13: Represent the Other Insurance Company Preferred

Analysis and Interpretation: 20% of respondents prefer ICICI Prudential Life Insurance,
10% of respondents prefer Tata AIA Life Insurance, 50% of respondents prefer Life
Insurance Corporation of India, 10% of respondents Max New York Life Insurance and 10%
of respondents prefer other insurance company after IDBI Federal Life Insurance and SBI
Life Insurance.

20%
10%
50%
10% 10%
0%
10%
20%
30%
40%
50%
60%
ICICI Prudential
Life Insurance
Tata AIA Life
Insurance
Life Insurance
Corporation of
India
Max New York Life
Insurance
Others
Insurance Companies
53

Q12. Who is providing better services?
S.No. Options No. of Respondents Percentage
1 IDBI Federal Life Insurance 27 54
2 SBI Life Insurance 13 26
3 Others 10 20
TOTAL 50 100
Table 13: Represent the Better Services


Figure 14: Represent the Better Services

Analysis and Interpretation: 54% of respondents think better services of IDBI Federal Life
Insurance Company; next 26% of respondents think better services of SBI Life Insurance
Company and rest 20% respondents think better services of other companies.


1
54%
2
26%
3
20%
54

CHAPTER IV
SUMMARY AND CONCLUSION

Result of the study
Most of the respondents prefer IDBI federal Life as their insurance company because
their pricing, innovative products and high customer services as compared to SBI Life
and other insurance companies.
34% of respondents prefer IDBI federal Life as their insurance company, 32% of
respondents prefer SBI Life as their insurance company, 24% of respondents prefer
LIC as their insurance company and rest 10% of respondents prefer other insurance
companies.

40% of respondents choose insurance policy for their children of IDBI federal Life
Insurance Company because of their innovative products which match their needs;
next 30% of respondents choose insurance policy for their children of SBI Life
Insurance Company and rest 30% respondents choose insurance policy for their
children of other companies.

30% of respondents take the insurance policy for the reason of investment purpose,
20% of respondents take the insurance policy for the reason of tax saving purpose,
10% of respondents take the insurance policy for the reason of retirement purpose,
30% of respondents take the insurance policy for the reason of security purpose and
10% of respondents take the insurance policy for the others reason.

50% of respondents are extremely satisfied with the service of IDBI federal Life
Insurance whereas 40% of respondents are extremely satisfied with the service of SBI
55

Life Insurance and 10% of respondents are extremely satisfied with the service of
other insurance companies.













56

Limitations of the Project
Time limit is the major constraint.
Sometime respondents refuse to co-operate.
Sometime respondents gave incomplete information.
The survey was conducted in very general way as no other variable such as their
education level, occupation and sex has been studied.
Since the study is based on limited sample size ie:50. It is not sufficient to cover
opinion of entire population.












57

Suggestions and Recommendations
Customers should be made aware of the brand name of Insurance Company through
advertisement.
The fear in the customer mind should be removed by company.
The i ns ur ance compani es s houl d t r y t o nur t ur e t hei r br and name
t i mel y and attractive facility provide to customer.
Advertise about the company and its products it motivates individuals to purchase
insurance.
Create a positive perception about insurance.
Speak about the good features a plan offers like high returns, life cover, tax benefits,
indexation and accident cover while prospecting customers.
Try to sell the product/plan which the consumer requires and not the plan where the
advisors benefit is higher.
Improve the efficiency in operations.
Bring out policies with small premiums payable for short periods of time Rs.5000
Rs.10000 per annum for 10 years.
Attract the youth of India with higher returns on investment as returns are the motivating
factor which influence purchase of insurance.