CHAPTER 1 INTRODUCTION

1.1 Introduction To The Topic

Insurance is a contract between two parties whereby one party called insurer undertakes
in exchange for a fixed sum called premiums, to pay the other party called insured a
fixed amount of money on the happening of a certain event.”

Insurance is a protection against financial loss arising on the happening of an

unexpected event. Insurance companies collect premiums to provide for this protection.
A loss is paid out of the premiums collected from the insuring public and the Insurance
Companies act as trustees to the amount collected. For Example, in a Life Policy, 1by
paying a premium to the Insurer, the family of the insured person receives a fixed
compensation on the death of the insured. Similarly, in car insurance, in the event of the
car meeting with an accident, the insured receives the compensation to the extent of
damage.

It is a system by which the losses suffered by a few are spread over many, exposed to
similar risks. Insurance companies also earn investment profits, because they have the
use of the premium money from the time they receive it until the time they need it to
pay claims. This money is called the float. When the investments of float are
successful they may earn large profits, even if the insurance company pays out in
claims every penny received as premiums. In fact, most insurance companies pay out
more money than they receive in premiums. The excess amount that they pay to
policyholders is the cost of float. An insurance company will profit if they invest the
money at a greater return than their cost of float.

An insurance contract or policy will set out in detail the exact circumstances under
which a benefit payment will be made and the amount of the premiums.
Insurance is the equitable transfer of the risk of a loss, from one entity to another in
exchange for money. It is a form of risk management primarily used to hedge against
the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is selling the
insurance; The insured, or policyholder, is the person or entity buying the insurance
policy. The amount of money to be charged for a certain amount of insurance coverage
is called the premium. Risk management, the practice of appraising and controlling risk,
has evolved as a discrete field of study and practice. The transaction involves the
insured assuming a guaranteed and known relatively small loss in the form of payment
to the insurer in exchange for the insurer's promise to compensate (indemnity) the
insured in the case of a financial
(Personal) loss. The insured receives a contract, called the insurance policy, which
details the conditions and circumstances under which the insured will be financially
compensated.
Insurance products are the basis of insurance companies for how products and their
services supplied by it to its clients which can meet the consumer’s expectations.
Consumer satisfaction is still one of the strongest areas to look after before launching
the insurance product in the market. It’s considerably more expensive to attract new
consumers than it is to keep old ones happy. In a climate of decreasing brand loyalties,
understanding consumer service and measuring consumer satisfaction are very crucial.

There is obviously a strong link between various insurance product and consumer
satisfaction and risk associated with the life. Consumer’s perception of Insurance
companies various product will determine the success of the Insurance sector in the
market.

With better understanding of consumer’s' perceptions, companies can determine the

actions required to meet the consumer’s' needs. They can identify their own

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strengths and weaknesses and put their effort to design an Insurance product where they
can stand in comparison to their competitors, chart out path future progress and
improvement. Insurance product design and management of its services helps to
promote an increased focus on future outcomes and stimulate improvements in the work
practices and processes used within the company.

Consumer expectations from insurance provider and from their products and consumer
defined attributes for your product or service you must meet or exceed to achieve
consumer satisfaction. There are many reasons why insurance products and launch of
new products in the market are necessary to meet the expectations of the society as well
as to be in the race and compete with the others insurance sector companies.

MetLife’s products also include critical illness insurance. Financial services include fee
based financial planning, retirement planning, wealth management, 529 Plans, banking,
and commercial and residential mortgages. The company also provides retirement plan
and other financial services to healthcare, education, and not for profit organizations.
The MetLife Center for Special Needs Planning is a group of planners which serve
families and individuals with special needs. In 2014, MetLife launched MetLife
Defender, a digital identity theft protection product.

WHY INSURANCE?

Insurance is desired to safeguard oneself and one’s family against Possible losses on
account of risks and perils it provides financial Compensation for the losses suffered
due to the happening of any unforeseen event.

By taking life insurance a person can have peace of mind and need not worry about the
financial consequences in case of any Untimely death.

Certain insurance contracts are also made compulsory by legislation. for examples,
motor vehicles act 1988, stipulates that a person driving a vehicle in

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public place should have a valid insurance pertains to the environmental protection act,
wherein a person using or carrying hazardous substance (as defined in the act) must
hold a valid public liability (act) policy.

WHO PROVIDE INSURANCE?

In India, insurance protection is made available through public sector insurance

companies, namely, life insurance Corporation of India (LIC) and other private
companies’ like- ICICI prudential, HDFC Allianz Bajaj, Birla sun life, kotak Mahindra
Pnb MetLife etc.

HOW TO GET INSURANCE?

The simplest procedure to obtain insurance is:

o Approach the insurance company directly.

o Through insurance agent of the concerned companies.
o Intermediaries.
WHAT IS THE OTHER ALTERNATIVE TO INSURANCE?

One alternative to insurance is to provide self-insurance i.e. the individual has to create
a fund to meet risk exigencies.

Specified trust has also tried to provide insurance by a scheme of self- insurance.
However, these are not very popular. The postal insurance coverage to all people.

There are many financial instruments, which advocate savings and provide future
returns at specific intervals such as the provident fund and pension plans. However,
none of these provide for life coverage.

WHAT ARE THE OTHER BENEFITS OF TAKING INSURANCE ?

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 Tax relief:

a. Under section 80C of income tax act, a portion of premiums paid for life insurance
policies are deducted from tax liability. Similarly, exempted from premiums.

b. Money paid as claim including bonus under a life policy is exempted from payment
of Income tax.

Encourage Savings: An Insurance scheme encourages thrift among individuals. It

inculcates the habit of saving compulsorily, unlike other saving instrument, wherein the
saved money can be easily withdrawn.

1. The beneficiaries to an insurance claim amount are protected from the claims of
creditors by affecting a valid assignment.
2. For a policy taken under the MWP Act 1874, (Married women’s property act),
a trust is created for wife and children as beneficiaries.
3. Life Policies are accepted as security for a loan. They can also be surrendered
for meeting unexpected emergencies.
4. Based on the concept of sharing of losses, the society will benefit as
catastrophic losses are spread globally

1.2 GROWTH AND ORIGIN OF INSURANCE SECTOR.

Insurance in modern form originated in the Mediterranean during the 13th century. (The
earliest references to insurance- found in Babylonia, the Greeks and the Romans).

Marine insurance is the oldest form of insurance followed by life insurance and fire
insurance.

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The history of life insurance in India dates back to 1818 when it was conceived as a
means to provide for English Widows.

A higher premium was charged for Indian lives than the non-Indian lives (considering
to be more riskier for coverage).

Oriental life Insurance Company was incorporated at Calcutta in 1818, followed by

Bombay Life Assurance Company in 1823 and Triton Insurance Company for General
Insurance in 1850. By 1938 there were 176 insurance companies.

Insurance regulation formally began in India through the passing of two acts

 the Life Insurance companies Act of 1912 and

 The Provident Fund Act of 1912.

However the first comprehensive legislation was introduced with the Insurance Act of
1938 that provided strict state control over insurance business in the country. The
business of India Insurance grew at a faster place as competition amongst the Indian
companies intensified. The decision of nationalization of life insurance business took
place in 1956 when 245 Indian and foreign insurance provident societies were first
merged and then nationalized.

 It paved the way towards the establishment of one nationalized monopoly

corporation called Life Insurance Corporation (LIC). Nationalization was
justified on the grounds that it would create the much needed funds for rapid
industrialization and self-reliance in heavy industries.

 General Insurance followed suit and 1968;

 The Insurance Act was amended to allow for social control over the general
insurance business.

Subsequently in 1973, non-life insurance business was nationalized and the General
Insurance Business (Nationalization) Act, 1972 was promulgated. Till end of FY 1999-
2000, two state-run insurance companies, namely, Life

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Insurance Corporation (LIC) and General Insurance Corporation (GIC) were the
monopoly insurance providers in India.

Under GIC there were four subsidiaries

 National Insurance Company Ltd.

 Oriental Insurance Company Ltd.

 New India Assurance Company Ltd.

 United India Assurance Company Ltd.

In fiscal 2000-01, the Indian federal government lifted all entry restrictions for private
sector investors. Foreign investment insurance market was also allowed with 26 percent
cap. GIC was converted into India's national reinsure from December, 2000 .All the
subsidiaries working under the GIC umbrella were restructured as independent
insurance companies.

The business of life insurance in India in its existing form started in India in the year
1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

One of the important milestones in the life insurance in India is;

1912: The Indian Life Assurance

For over 50 years, life insurance in India was defined and driven by only one company-
the Life Insurance Corporation of India (LIC). With the Insurance Regulatory and
Development Authority (IRDA) Bill 1999 paving the way for entry of private
companies into both life and general sectors there was bound to be new-found
excitement- and new success stories. Today, just three years since their entry, their
cumulative share has crossed 13% (source: IRDA), far exceeding expectations. Clearly
insurance is on a growth path.

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The percentage of premium income to GDP which was just 2.3% in 2000-01 rose to
3.3% in 2002-03; and life insurance has emerged as the dominant contributor to this
growth.

The industry presented a huge opportunity. Life insurance penetration, for instance, was
at an abysmal 22% of the insurable population. However, private players have had to
rise to many challenges. They were faced with attitudinal barriers towards the category
and the perception that insurance was only a tax saving tool. Insurance per se had lost it
basic rationale: protection. It wasn’t surprising then that its potential lay frozen and
unexploited. The challenge for private insurance players was to change the established
category driver and get customers to evaluate life insurance as an investment-cum-
protection tool.

Life Insurance sector is one of the key areas where enormous business potential exists.
In India currently the life insurance premium as a percentage of GDP is
1.3 per cent against 5.2 per cent in the US, but in the liberalized scenario, the life
insurance
premiums were projected to grow at around 18% to 20% from Rs 215 billion in 1998-
99 to Rs 592 billion in 2004-05 and to Rs 1450 billion by 2009-10. Corporate non-life
premium was projected to grow from Rs 84 billion in 1998-99 to Rs 386 billion in
2009-10 and personal line non-life from Rs 4 billion to Rs 51 billion.

Insurance in India started without any Regulation in Nineteenth century. It was

story of a typical colonial era. A few British companies dominated

The market mostly in large urban centers.

Insurance was nationalized mainly on 3 counts First, Indian lives were not insured.
Second, even if they were insured, they were treated as substandard lives and extra
premium was charged. Third, there were gross irregularities in

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the functioning of Life insurance was nationalized in the year 1956, and then general
insurance was nationalized in the year 1972. In 1999, the private insurance companies
were allowed back again into insurance sector with maximum cap of 26 percent foreign
holding.

 1818 The British introduce to India, with the establishment of the Oriental Life
Insurance Company in Calcutta.
 1850 Non life insurance debuts, with Triton Insurance Company.
 1870 Bombay Mutual life Assurance Society is the first Indian-owned life insurer
 1907 Indian mercantile Insurance is the first Indian non-life insurer.
 1912 The Indian life assurance companies’ act enacted to regulate the life
insurance business.
 1938 The insurance act, which forms the basis for most current insurance laws,
replaces earlier act.
 1956 Life insurance nationalized, government takes over 245 Indian and foreign
insurers and provident societies.
 1956 Government sets up LIC
 1972 Non life insurance nationalized, GIC set up.
 1993 Malhotra committee, headed by former RBI governor R.N.Malhotra, set up
to draw up a blue print for insurance sector reforms.
 1994 Malhotra Committee recommends re-entry of private players, autonomy at
PSU insurers.
 1997 Insurance regulator IRDA (Insurance Regulatory and Development
Authority) set up.
 2000 IRDA starts giving licensed to private insurers
 2001 ICICI Prudential Life Insurance came into the market

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1.3 TOP 10 LIFE INSURANCE COMPANIES IN INDIA
1. Life Insurance Corporation of India
LIC (Life Insurance Corporation of India) still remains the largest life insurance
Company accounting for 64% market share. Its share, however, has dropped from 74%
a year before, mainly owing to entry of private players with innovative Products and
better sales force.
2. ICICI Prudential Life Insurance Company Ltd.
ICICI Prudential Life Insurance Co Ltd is the biggest private life insurance company in
India. It experienced growth of 58% in new business premium, accounting for increase
in market share to8.93% in 2007-08 from 6.97% in 2006-07.
3. Bajaj Allianz Life Insurance Company Ltd.
Bajaj Allianz Life Insurance Co Ltd has reported a growth of 52% and its market
Share went up to 6.98% in 2007-08 form 5.66% in 2006-07. The company ranked
second (after LIC) in number of policies sold in 2007-08, with total market share of
7.36%.
4. SBI Life Insurance Company Ltd
SBI Life Insurance Co Ltd in terms of new number of policies sold, the company
Ranked 6th in2007-08. New premium collection for the company was Rs 4,792.66 crore
in 2007-08, an increase of 87% over last year.
5. Reliance Life Insurance Company Ltd.
Reliance Life Insurance OMCo Ltd Total collected was Rs 2,792.76 crore and its
market share went up to 2.AO96% from 1.23% a year back. It now ranks 5th in new
business premium and 4th in number of new policies sold in 2007-08.
6. DFC Standard Life Insurance Company Ltd

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HDFC Standard Life Insurance Co Ltd with an income of Rs 2,680 crore in
FY 2007-08, registering a year-on-year growth of 64%. Its market share is 2.88% and
it ranks 6th among the insurance companies and 5th amongst the private players.

7. Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance Co Ltd market share of the company increased from 1.22%
to 2.11% in 2007-08.
8. Max New York Life Insurance Company Ltd.
Max New York Life Insurance Co Ltd has reported growth of 73% in 2007-08. Total
new business generated was Rs 641.83 crore as against Rs 387.51 crore.
9. Kotak Mahindra Old Mutual Life Insurance Ltd.
Kotak Mahindra Old Mutual Life Insurance Ltd the fiscal 2007-08, the company
Reported growth of 80%, moving from the 11th position to 9th. It captured a market
share of 1.19% in 2007-08.
10. Aviva Life Insurance Company India Ltd.
Aviva Life Insurance Company India Ltd ranking dropped to 10th in 2007-08 from 9th
last year. It has presence in more than 3,000 locations across India via 221 branches and
close to 40 banc assurance partnerships. Aviva Life Insurance plans to increase its
capital base by Rs 344 crore.

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 CHAPTER 2
PROFILE OF THE ORGANISATION

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2.1 “A PROFILE OF PNB MetLife”

PNB MetLife India Insurance Company Limited (PNB MetLife) is one of the
fastest growing life insurance companies in the country, having as its shareholders,
MetLife International Holdings LLC. (MIHL), Punjab National Bank Limited (PNB),
Jammu & Kashmir Bank Limited (JKB), M. Palling and Company Private Limited and
other private investors, with MIHL and PNB being the majority shareholders. PNB
MetLife was previously known as MetLife India Insurance Company Limited and has
been present in India since 2001.

PNB MetLife brings together the financial strength of a leading global life
insurance provider, MetLife, Inc., and the credibility and reliability of PNB, one of
India's oldest and leading nationalized banks. The vast distribution reach of PNB
together with the global insurance expertise and product range of MetLife makes
PNB MetLife a strong and trusted insurance provider.

PNB MetLife is present in over 150 locations across the country and serves
customers in more than 8,000 locations through its bank partnerships with PNB,
JKB and Karnataka Bank Limited.

PNB MetLife provides a wide range of protection and retirement products through its
Agency sales of over 10,000 financial advisors and multiple bank partners, and
provides access to Employee Benefit plans for over 800 corporate clients in India.
The company continues to be consistently profitable and has declared profits for last
five Financial Years.

PNB MetLife India Insurance Company is one of India’s fastest growing insurance
providers. They offer life insurance policies that are designed to suit various needs
their customers may have. Their services range from regular term insurance plans
that provide pure and simple life cover to other plans like term return of premium
plan where the investors get the facility of having their premiums returned to them
when their policy matures. Their services also include group insurance plans which
can be taken by a group of individuals or companies that are looking for help with
settlements for gratuity, leave encashment, etc

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How Punjab National Bank and MetLife become PNB MetLife: -

The board of the Insurance Regulatory and Development Authority (IRDA) at its
meeting held on August 31 approved induction of PNB as a shareholder of the
insurance company with a 30 per cent stake, IRDA said in a statement today. "The
Board approved the proposal subject to certain conditions inter alia on appointment
of directors on the Board of the insurer by PNB, reduction in the equity stake by
some of the existing shareholder and maintaining solvency margin ...," it said.
Punjab National Bank (PNB) said it has received all regulatory approvals for
acquiring 30 percent stake in MetLife India Insurance. On closing of the transaction,
the company will be rebranded, it said. In a filing on the Bombay Stock Exchange
(BSE), PNB said the bank has received all regulatory approvals, including the
Competition Commission of India's (CCI), for acquiring 30 per cent stake in
MetLife India Insurance. Last year state run PNB had announced picking up of 30
per cent stake in MetLife India Insurance at an undisclosed sum. As per the terms of
the deal, US based MetLife will have an arrangement with the existing shareholders
and Will raise its stake to 26 per cent within 120 days of operationalisation of the
deal. Following this, the private sector life insurer would be rebranded as PNB
MetLife India Ltd. Both PNB and MetLife India had approached the fair trade
regulator for approval on December 7, 2012. State run PNB had announced picking
up of 30 percent stake in MetLife India Insurance for an undisclosed sum in 2011.
As per the terms of the deal, US based MetLife will have an arrangement with the
existing shareholders and will raise its stake to 26 per cent within 120 days of
operationalisation of the deal. Currently, MetLife India stakeholders, include
Jammu and Kashmir Bank, Shapoorji Pallonji and other investors, besides MetLife.
It is to be noted that PNB in 2010 decided to part ways with its foreign partner
Principal Financial Group in a proposed life insurance joint venture it set up four
years ago. PNB bought the entire 26 per cent stake held by Principal Financial
Group and the 32 per cent participating interest of domestic firm UK (Berger) Paints
in Principal PNB Life Insurance Company Ltd. Currently, MetLife India
stakeholders, include Jammu and Kashmir Bank, Shapoorji Pallonji and other

14
investors, besides MetLife. It is to be noted that PNB in 2010 decided to part ways
with its foreign partner Principal Financial Group in a proposed life insurance joint
venture it set up four years ago. PNB bought the entire 26 per cent stake held by
Principal Financial Group and the 32 per cent participating interest of domestic firm
UK (Berger) Paints in Principal PNB Life Insurance Company Ltd. PNB's stake in
the proposed joint venture was 30 per cent, while that of Vijaya Bank was 12 per
cent. Besides, the IRDA board also approved an amendment to the regulations to
include a Limited Liability Partnership (LLP) firm as an Indian promoter. With this
regulatory change, domestic LLP would be able to pick up stake in an existing
insurance venture or can float a new venture. "Such an LLP can, however, neither
be a foreign LLP nor should any of the partners in the LLP be foreign entities," IRA
said.

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Management Team

Tarun Chugh joined PNB MetLife in February 2014 to lead the India business. He
brings over 20 years of experience in the BFSI sector to his role at PNB MetLife,
fvwith extensive work experience within the insurance industry. Tarun is a part of the
Asia Leadership Group (ALG) with key responsibilities of driving growth and
development of the India business.

About the Management Team

PNB MetLife has a Management Team who are established experts in their field of
work with Mr. Tarun Chugh at the helm. Each of the Management Team members
have worked across the BFSI category and are specialists with a strong focus on
Customer Centricity.

PNB MetLife Values

PUT CUSTOMERS FIRST

Caring for and respecting customers is core to everything we do. It defines our work and
shapes t radiating out to our shareholders and communities.

BE THE BEST

We are relentless in our search for new and better ways of doing things. As a leader
in our industry, we constantly raise the bar, take calculated risks and learn quickly
from our mistakes.
MAKE THINGS EASIER

Products in our industry aren't always easy to understand. That's why we are always looking
for simpler ways to connect customers to the best solutions. By doing this, we aim to exceed
their expectations and build trust.

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SUCCEED TOGETHER

United by our purpose, we live by a collective commitment to honesty, integrity and

diversity. We are open and inclusive, proudly taking and applying the best ideas from
every part of our company.

Corporate Social Responsibility at PNB MetLife

“PNB MetLife has taken the first step in giving back to the local communities and
launched its CSR initiative. The company has joined hands with bank partners,
Jammu & Kashmir Bank Limited (JKB) and Karnataka Bank Limited (KBL) to
support the cause of education and development of underprivileged children.”

Our Approach

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2.2 HISTORY OF METLIFE
Organized by a group of New York City businessmen in 1863, the National Union
Life and Limb Insurance Company began business in July 1864 insuring Civil War
sailors and soldiers against wartime-related disabilities. It was a difficult beginning.
By the end of 1864, National Union had written only 17 life and 56 accident policies,
and was in last place among the 27 life companies operating in New York State
and was running a deficit of $1,400.

After five difficult years in business and several reorganizations and name changes,
President James R. Dow, (a medical doctor) And the board of directors decided to
drop the casualty business and focus solely on life insurance business. And so
began Metropolitan Life Insurance Company.

When MetLife opened for business on March 24, 1868 (selling a small number of
policies on that date) the telephone had not yet been invented and electric lights
were still uncommon. The population of the United States was approximately 37
million, and there were 37 states in the country. The company’s first home office
consisted of two rooms − enough space for its six employees.
This new venture also faced difficulties. A severe business depression that began in
the early 1870s rapidly put half of the 70 life insurance companies operating in New
York State out of business. Only very large, long-established ordinary life insurance
companies remained strong. Policy lapses over successive years forced the company
to contract until it reached its lowest point in the late 1870s.
In 1879, MetLife President Joseph F. Knapp turned his attention to England, where
"industrial" or "workingmen's" insurance programs were widely successful.
American companies had not bothered to pursue industrial insurance up to that time
because of the expense involved in building and sustaining an agency force to sell
policies door to door and to make the weekly collection of five- or ten-cent
premiums.
By importing English agents to train an American agency force, MetLife quickly
transferred successful British methods for use in the United States. By 1880, the
company was signing up 700 new industrial policies a day. Rapidly increasing
volume quickly drove down distribution costs, and the new program proved
immediately successful.
The MetLife agent became an important person in the lives of these striving
families. Manuals instructed agents to call at a home at the same time each week to
ensure familiarity and contact. In the process of collecting premiums, insurance
agents listened to the problems, concerns, and hopes of their clients. So successful
was this approach that by 1909, MetLife became the nation's largest life insurer in
terms of insurance in force, a leadership position we continue to hold today in North
America.

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Why Consumer should Choose MetLife?

We take great pride in the financial solutions that we offer. But that’s not all. Your
requirements and comfort are always our priority. That is why our interactions are
distinguished by our expertise, compassion and sensitivity.

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The MetLife companies are one of the world’s largest and most respected financial
services organizations. For over 140 years, we've been helping people build
financial freedom. For some, this means protection for their families. For others, it
means wealth optimization or preservation. Combined with our innovation, this
makes the MetLife companies truly formidable players in the Life Insurance
industry.

Why one should need insurance?

Today, there is no shortage of investment options for a person to choose from.

Modern day investments include gold, property, fixed income instruments, mutual
funds and of course, life insurance. Given the plethora of choices, it becomes
imperative to make the right choice when investing your hard-earned 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. Let us look at these unique
benefits of life insurance in detail.

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.

Term Life Insurance

Offer your employees a fundamental part of their overall benefits program with
basic, supplemental, and dependent term life insurance products to protect
themselves and those they love.

Permanent Life Insurance1

Some employees may need a different type of protection to support their insurance
and estate tax-planning needs. Permanent Life insurance can help provide the right
solution for highly compensated employees and the broader based population.

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Accidental Death Dismemberment

MetLife offers a variety of AD&D products—basic, supplemental, dependent and

voluntary—that provide valuable insurance protection, as well as "benefits" that your
employees can take advantage of today.

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A Brief History of MetLife:

Type Public
Traded as NYSE: MET
(https://www.nyse.com/quote/XNYS:MET)
S&P 500 Component
Industry Financial services
Founded 1868
Headquarters 1095 Avenue of the Americas New
York City, New York, U.S.
Key people Steven A. Kandarian
(President, Chairman, and CEO)
Products Insurance, Annuities, Employee Benefits,
Banking
Revenue US$ 52.717 billion (2010)[1]
Operating income US$ 3.958 billion (2010)[1]
Net income US$ 2.786 billion (2010)[1]
Total assets US$ 730.906 billion (2010)[1]
Total equity US$ 48.996 billion (2010)[1]
Number of employees 66,000 (2010)[1]
Website MetLife.com (https://www.metlife.com/)

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2.3 REVIEW OF LITERATURE

Corporate Governance provides for the rules, procedures, systems and processes using which a company is
controlled and directed. This study aims in finding out how significant corporate governance is in building a
brand for a company with the overview of customers and employees of PNB MetLife. As last decade has
seen a remarkable change and upgrade in the way companies look for its corporate governance processes
and procedures as this involves balancing the interests of all the stakeholders- shareholders, management,
customers, suppliers, financiers government and the community. This study also intends to seek and show
how a company can build its brand of the products and services by having a good control over its internal
and external processes and procedures for work. Interview of senior officials at PNB MetLife has been
undertaken, and also the data of 80 employees were undertaken to complete this study. The findings of the
study suggest that the company has prospered and has been able to deliver good performances with regards
to its corporate governance. Customers and employees are being aware and are assertively looking forward
to deal with companies that are following corporate governance religiously.

--Rajesh K. Yadav,2009

The paper probes in to the Indian Economy and observes the characteristics of Insurance Industry in India
based on Strength of Insurance Industry in India and Weakness of Insurance Industry in India. Further
making literature survey, it is essential to re-look into the Private and Public Players in insurance industry in
India as insurance companies are mushrooming after liberalisation. Further, increase in the foreign direct
investment from 26% to 49% shows that insurance business will grow in India but facing tough competition
from rest of the world and specifically the Asian countries. Hence, there is a chance that there may be some
difference observed in between the private and public insurance firms. Thus, in this study, an attempt has
been made to make the comparison of Private and Public firms in Insurance industry in India will be done
based on Insurance Education, Mergers and Acquisitions, Percentage of Foreign investments in Insurance
sector, Premium, Performance Evaluation. The performance will be evaluated using the Key Performance
Indicators (KPIs) in the Insurance Industry such as operating expenses, commission expenses, retention
ratio, new policies issued, registered insurers, premium underwritten, distribution of offices of life insurers,
market share, incurred claims ratio, investment income and leverage. The period of study will be taken as

23
2000-01-2014-15. An attempt is made to clarify the results and generalize them to insurance industry
performance. The study will be carried on making content analysis from the data collected from various
secondary sources such as anuual reports of insurance companies, Insurance Regulatory Development
Authority (IRDA) journal, and insurance journal. The statistical tools used in the study will be descriptive
statistics, percentage analysis, growth trends. The hypothesis of the study is that there is no difference in the
growth and performance between the public and private firm in insurance industry. The study is explorative,
descriptive and empirical in nature.

Mrunal Jain,2007

In India life insurance sector opened for private as well for foreign players after new industrial policy 1991.
But effectively new players could be operative only after the Insurance Regulatory and Development
Authority (IRDA) incorporated as a statutory body in April, 2000. Currently in life insurance sector about
23 life insurer are working, but even after more than one and half decade of establishment of IRDA and
sector opened for private players as well foreign players, still more than 73% market share is hold by Life
Insurance Corporation of India (LIC). Hence, question arises that why other players could not significantly
penetrate in Indian life insurance sector? For this it becomes important to know about awareness level and
preferences of investors about life insurers in India. This paper is an attempt to study current scenario of
Life Insurance Sector in India and awareness about life insurance among retail investors and their
preference for these life insurers. In this study primary data is collected from the Surat city of Gujarat state.
Secondary data are collected from the various reports issued by IRDA and various research papers
published. In study it has been found that LIC is most preferred Life Insurance Company. Investors focus
more on certain aspects related to insurance companies are timely payment of maturity amount, minimum
hassle at the time of settlement, transparency in terms and conditions in insurance contact and good
financial position company.-

Lipsa N M,June 2015

24
 CHAPTER-3
RESEARCH METHODOLOGY

3.1 Need for study

A Systematic and objective search to find the solution of any problem.

Research is a careful investigation or inquiry especially through search for new facts in
branch of knowledge or to establish relationship between effect and cause. And
especially marketing research that helps in problem solving in the marketing field,
demands critical analysis of the problems that are latent or potential in nature. Research
methodology, is considered a kin to clinical operations where in-depth diagnosis,
prescription and medicines are applied. Research methodology is the sketch and plans
to define a problem, appropriating research design, designing instrument for collection
of data, and data interpretations etc. In general, Research problem is the one that
requires a researcher to find out the best solution for the given problem that is to find
out the course of action, the action the objectives can be obtained optimally in the
context of a given environment.

3.2 TYPE OF RESEARCH USED IN THIS STUDY

3.2.1 Descriptive research: On the other hand descriptive researchhas helpedto determine
how, where, when and what of the situation. Therefore descriptive research has been
used here to get the maximum amount of the information.

25
3.2.2 SAMPLING

Sampling is a familiar part of daily life. A customer in a bookstore picks up a book

looking at his cover and skims a few pages to get a sense of writing style & content
before deciding whether to buy.

Sampling in common place in daily activities:

SAMPLE SIZE

I have taken 30 respondents as sample size.

SAMPLE UNIT: Sampling is clearly defined for constructing the sampling frame. By
conventions in statistics a capital “N” is used to refer to the number of sampling units
making up the universe lower case “n” for the number of sampling unit is the sample
itself. In this I have taken management student. It is our sample unit.

SAMPLING AREA-

Geographical area- I have taken Karol bagh(Delhi) into consideration to analyze the
sale or demand or awareness of different types of insurance products of Pnb MetLife.

3.2.3 Types of DATA

1. Primary data: - The data collected by the researchers himself for finding the
solution of a particular problem or situation is known as primary data.

2. Secondary Data: - The secondary data is the data collected by someone other
than the user from common sources of secondary data for social science includes
census & data collected through quality research & organizational record.

26
 DATA COLLECTION METHODS
 Interview
 Observation
 Survey
 Case Study

3.3 OBJECTIVES OF THE STUDY

The proposed study under taken with the main objective of knowing the
I importance of life insurance in any Company the other allied objectives are

1. To know the customer awareness about METLIFE insurance company.

2. To know the motive of buying an insurance policy.

3. To know the customer preference for different insurance company.

4. Customer opinion about public and private sector

3.4 LIMITATION OF THE STUDY

The report may be beneficial to company. But there are some limitations of the study:-

 The size of the research may not be substantial and it is limited.

 There may be lack of time on the part of respondents.

 There may be some bias information provide by company professionals.

 As only single cities are surveyed or covered. It does not represent the overall

view of Indian Market.

 It is very much possible that some of the respondents may have given the

incorrect information.

27
 CH-4 DATA ANALYSIS AND INTERPRETATION

1. Do you invest money?

Criteria Frequency Percentage

Yes 25 83%

No 5 17%

Chart Title

No
17%

yes
83%

Interpretation

Above figures showed that out of 30 respondents, 83% respondents are interested to
invest money and rest of the respondent’s i.e.17% is not interested to invest money.

28
 2. How much you invest?.

Frequency Percentage

Less than 10000 1 50%

5
10000-20000 8 27%
20001-30000 5 17%

30000-40001 2 6%

Percentage
6%

17% Less than 10000

10000-20000
50%
20001-30000
30000-40001
27%

Interpretation

On the above figures shown that 50% respondents are invested in less than 10000
,27% in 10000-2000,27% in 21000-30000 and rest of respondents are invest money in
more than 310000-40000.

29
 1. In which segment you invest money?

Criteria Frequency Percentage

Mutual funds 5 17%
PPF 4 13%
Life Insurance 18 50%
Stock Market 3 20%

P
mutual fund PF Life Insurance stock market

10% 17%

13%

60%

Interpretation

The above evident shows that out of the total respondents 60% invested in life
Insurance, 10% respondents in stock market, 17% in Mutual fund and finally 10% in
PPf.

30
4 . How much you invest in Insurance policy?

Criteria Frequency Percentage

Less than 10000 6 20%

10000-20000 5 17%

20001-30000 15 50%

30001-40000 4 13%

less than 10000 10000-20000 20001-30000 30001-40000

17% 50%

63%

20%
13%

Interpretation

From the above figures shown that 20% respondents are invested in less than
10000,17% in 10000-20000,50% in 20001-30000 and finally rest of respondents
are invested in more than 30001-40000.

31
5. which company do you have Insurance Policy?

Frequency Percentage

METLIFE 16 52%

HDFC 3 10%

LIC 6 19%

ICICI 4 19%

OTHERS 1 3%

Percentage
METLIFE HDFC LIC ICICI OTHERS

3%
19%

52%
19%

10%

Interpretation

From above figures shown that 52%responents are taken by insurance policy from
MetLife Insurance,10% in HDFC,10% in LIC ,19% in ICICI and rest are in others.

32
6. What according to you are the motives of buying Life Insurance Policy?

Criteria Frequency Percentage

TAX SAVING 15 50%

LIFE COVER 9 30%

LIQUITY0 3 10%

SECURE 3 10%
INVESTMENT

10% 10%
Tax saving
50%
30% Life Cover
Liquidity
Secure Investment

Interpretation

From the above figures shown that 50%respondents are taken insurance for Tax
saving, 30% are for life cover, 10% are for Liquidity and rest 10%are taken for
Secure Investment.

40
7. Do you have any plan to buy Insurance Policy in near future?

Criteria Frequency Percentage

YES 28 93%

NO 2 7%

Percentage
7%

YES
NO

93%

Interpretation

From the above figures shown that 93% respondents are buy insurance policy in future
and rest are not.

41
 8. If you have any plan to buy an Insurance Policy, which policy would you
prefer?

Criteria Frequency Percentage

Pension Plan 6 20%

Children Plan 6 20%

Protection Plan 8 27%

Saving Plan 10 33%

Percentage

20%

33%
Pension Plan
Children Plan
Protection Plan
20% Saving Plan

27%

Interpretation

From the above figures shown that 60% respondents are prefers to buy pension plan in

near future,27%in Protection plan ,20% in Child plan and rest are buy Saving Plan in near
future.

42
10. From which company would you like to take insurance?

Frequency Percentage

METLIFE 18 60%

HDFC 2 7%

LIC 5 17%

ICICI 4 13%

OTHERS 1 3%

Percentage
3%
13% METLIFE
17% HDFC
60%
LIC
7%
ICICI
OTHERS

Interpretation

The above evident shows that 60% respondents are take insurance from Metlife,7%in
HDFC,17%in LIC,13%in ICICI and 3% in others.

43
11. Have you heard about Private insurance company METLIFE India Life?

Criteria Frequency Percentage

YES 28 93%

NO 2 7%

Percentage
7%

YES
NO

93%

Interpretation

From the above Figures shown that 93% respondents are aware about the Metlife
Insurance and only 7 % are not aware .

44
12. From where did you come to know about MET LIFE INDIA
INSURANCE?

Criteria Frequency Percentage

PRINT MEDIA 8 27%

AGENTS 8 27%

ELECTRONIC 10 33%
MEDIA
OTHERS 4 13%

Percentage

13%

27%
PRINT MEDIA
AGENTS
ELECTRONIC MEDIA
33%
OTHERS

27%

Interpretation
From the above figures shown that 33% respondents are aware MetLife insurance
co from electronic media,27% from agents ,27% from Print media and 13% are
aware from others.

45
13. Do you agree that met life have a good brand value than other
companies?

Criteria Frequency Percentage

YES 27 90%

NO 2 7%

Can’t say 1 3%

yes no can't say

7% 3%

90%

Interpretation

From the above figures shown that 90% respondents are said MetLife product is better
than other company 7% are a not satisfied and 3% are respondents are can’t say.

46
14. Which attribute you consider while taking policy from MetLife or other
company?

Criteria Frequency Percentage

BRAND 15 50%

MEDIA 5 16%

PREMIUM 5 17%

SERVICES 5 17%

BRAND MEDIA PREMIUM SEVICES

17%

17% 50%

16%

Interpretation

From the above figures shown that 50% respondents are taken policy because of brand
16% for media, 17% for Premium and 16% are taken for services.

15. Which plan do you have taken?

47
ENDOWNMENT 15 50%
PLAN
ULIP 5 16%

MONEY BACK 5 17%

2nd Qtr
TERM PLAN 4
17%
OTHRES 1 3%

O
3%
17%
ENDOWNMENT PLAN
ULIP
50% MONEY BACK
17%
TERM PLAN
OTHRES

16%

INTERPRETATION

From the above figures shown that 50% respondents are buy Endowment
plan,17%Money back,17% Term plan ,% ULIP plan and are buy others plans.

48
CH-5 CONCLUSION .
I have done a detailed analysis of insurance sector with special reference to MetLife
India as well as other private companies and concluded that most of the people
preferred to deal with nationalization insurance companies.

About the awareness regarding the products offered by MetLife India, I conclude that
most of the people are aware but they still need more publicity among the residents of
the city.

So, I would like to conclude by saying that METLIFE India is a wonderful gift given to the
mankind in the new era for people development and maintenance of the world as well as
India.

49
 ANNEXURES
QUESTIONNARE

Dear Sir

I am the student of BC aOM(H) doing a project “CONSUMER

AWARNESS REGARDING PNB METLIFE”

Please co-operate to fill this questionnaire.

1. Do you invest money?

a) Yes (b) No

2. How much you invest?

a) Less than10000 b) 10000 -20000

c) 20001-30000 d) 30001-40000

4. In which segment you invest money?

(a) Mutual funds (b) PPF

50
 (c) Life insurance (d) Sock market

5. How much you invest in Insurance policy?

(a) 10000 (b) 20000-25000

(c) 25000-30000 (d) 30000-50000

6. With which company do you have Insurance Policy?

7. What according to you are the motives of buying Life Insurance Policy?

(a) Tax Saving (b) Life Cover

(c) Liquidity (d) Secure Investment

51
 8. . Do you have any plan to buy Insurance Policy in near future?

(a) Yes (b) No

9. . If you have any plan to buy an Insurance Policy, which policy would you
.prefer ?

(a) Saving Plan (b) Protection Plan

(c) Pension Plan (d) Children’s Plan

11. From which company would you like to take insurance ?

(a) METLIFE INDIA INSURANCE (b) HDFC STANDARD

(c) LIC (d) ICICI

52
(e) OTHERS

53
12. Have you heard about Private insurance company METLIFE India Life

(a) Yes (b) No

13. From where did you come to know about MET LIFE INDIA INSURANCE?

(a) Electronic Media (b) Print Media

(c) Agents (d) Others

14. Do you agree that met life have a good brand value than other
companies?

(a) Yes (b) No

(c) Can’t say

15. Which attribute you consider while taking policy from MetLife or other
company?

54
(a) Brand (b) premium

(c) Services (d) Security

16. Which plan do you have taken ?

(a) Endowment (b) Money back

c) Ulip d) Term plan

e) others

BACKGROUND DATA

1. Name _

2. Sex: (a) Male (b) Female

55
3. Age: (a) Below 18 (b) 18-35

56
 (c) 35-50 (d) Above 50

4. Education: (a) Under Graduate (b) Graduate

(C) Post Graduate

5. Occupation: (a) Service (b) Profession

(c) Business (d) Others

6. Income: (a) Less than Rs. 50,000

(b) Rs. 50,000 to 1,50.000

(c) Rs. 1,50,000 to 3,00,000

(d) Rs. 3,00,000 & above

7. Address _

57
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