SUMMER TRAINING REPORT

ON
CUSTOMER RELATIONSHIP MANAGEMENT
IN IDBI FEDERAL LIFE INSURANCE CO. LTD
Undertaken at

IDBI Federal Life Insurance Co Ltd

Submitted in partial fulfillment of the requirements of the
Summer Internship

By

Rohit Sharma
(A102216002)

MASTER OF BUSSINESS ADMINISTRATION IN

MARKETING AND SALES AMITY UNIVERSITY,
NOIDA

Session 2016-2018
i
 CERTIFICATE

This is to certify that the work titled “Customer Relationship Management in IDBI Federal
Life Insurance Co Ltd” submitted by Rohit Sharma in partial fulfillment of the Summer
Internship from IDBI Federal Life Insurance Co Ltd has been carried out and completed under
my supervision.

7th-July, 2017 Mr. AMIT D SINGH

Sr. Agency Manager

IDBI Federal Life Insurance Co Ltd

Pitampura

ii
 DECLARATION

This Project Report “Customer Relationship Management in IDBI Federal Life Insurance
Co Ltd” done during my Summer Internship is submitted for the partial fulfillment of the Post
Graduate Programme (PGP) in Marketing And Sales. Amity University, Noida

I, hereby, declare that this is the original work done and the information provided in the Project
Report is authentic.

ROHIT SHARMA

iii
 ACKNOWLEDGEMENT

I would like to express my sincere gratitude towards my company mentor Mr. AMIT D SINGH,
Sr. Agency Manager IDBI Federal Life Insurance, Pitampura for guiding me throughout my
summer training project research work. The time and effort he contributed is highly appreciated.
I would also like to thank Mr. MANAS DAS, Branch Head IDBI Federal Life Insurance,
Pitampura and Mr. Ezad Ahmed, Manager IDBI Federal Life Insurance, Pitampura for all their
valuable inputs and constant support. It was truly a wonderful learning experience.

I would also like this opportunity to express my gratitude to my faculty guide, Prof. Seema Johar,
for his guidance and support. Last but not the least I would like to thank all the respondents who
offered their opinions throughout the survey as it helped in the successful completion of the
project.

Rohit Sharma

July, 2017

iv
 Table of Content

Contents Page

Cover……………………………………………………………………………… I

Certificate………………………………………………………………………… Ii

Declaration……………………………………………………………………….. Iii

Acknowledgement ………………………………………………………………. Iv

Contents ……………………………………………………………….............. V

List of Figures…………………………………………………………………. viii

List of Tables…………………………………………………………………. Ix

Abstract………………………………………………………………………… X

1. Profile of the company …………………………………………….……. 1

1.1Introduction to Insurance Sector………………………………. 2

1.2 Introduction about the Company…………………………….. 3

1.3 Nature of Business………………………………………………. 5

1.4 Mission, Vision and Values………………………………………. 5

1.5 Product Range of IDBI Federal…………………………………. 6

1.5.1 Endowment Plans…………………………………..

1.5.1.1Incomesurance Guaranteed Money Back 6

Insurance Plan 6 Pay……………………..
1.5.1.2Childsurance Savings Protection Plan…... 7

1.5.1.3Lifesurance Savings Insurance Plan……. 8

1.5.2 Unit Linked Insurance Plan (ULIP)………………….. 9

1.5.2.1Wealthsurance Growth Insurance Plan ….. 9

v
 1.5.2.2Wealthsurance Future Star Insurance Plan… 10

1.6 Size of the Company…………………………………………….. 11

1.6.1 In terms of manpower……………………… 11

1.6.2 In terms of turnover……………………………………. 11

1.7 Organizational Structure…………………………………………. 11

1.8 Market Share and Position of the Company…………………… 12

1.8.1 Market Share………………………………………….. 12

1.8.2 Position of the company……………………………….. 12

1.9 Objective of the study………………………………………….. 13

1.10Sources of Data Collection…………………………………….. 13

1.10.1 Primary Data………………………………………… 13

1.10.2 Secondary Data………………………………………. 14

2. SWOT Analysis ………………………………..……………………… 15

2.1 Introduction to SWOT Analysis ………………………………… 16

2.2 SWOT Analysis of IDBI Federal Life Insurance……………….. 17

3. Promotional Strategies Of IDBI Federal………………………………… 18

3.1 Introduction……………………………………………………… 19

3.2 Promotional Strategy of IDBI Federal…………………………. 19

3.2.1 Advertising…………………………………………… 19

3.2.2 Print Media……………………………………………. 20

3.2.3 Sponsorship/Events…………………………………… 20

3.2.4 Branded Promotional Gifts/Social media…………… 21

vi
 4. HR Policies Of IDBI Federal……………………………………………. 22

4.1 HR Initiatives of IDBI Federal Life Insurance……………………. 23

4.2 Recruitment Process……………………………………………… 23

5. CRM Policies Of IDBI Federal…............................................................... 25

5.1 Introduction to CRM…………………………………………….. 26

5.2 CRM policies of IDBI Federal…………………………………… 27

5.2.1 Objective of the study …………………………………. 27

5.2.2 Scope of the study……………………………………… 27

5.2.3 Limitations of the study………………………………… 28

6. DATA ANALYSIS AND INTERPRETATION…………………. …….. 29

6.1 Research Methodology…………………………………………… 30

6.2 B2B Questionnaire………………………………………………. 30

6.2.1 Analysis of B2B Questionnaire………………………… 32

6.3 B2C Questionnaire……………………………………………….. 33

6.3.1 Analysis of B2C Questionnaire………………………… 35

6.4 Findings…………………………………………………………… 45

6.5 Recommendations……………………………………………….. 47

References………………………………………………………………………... 48

vii
 List of Figures
Figure Page

1.1 Graph showing the share percentage of three companies in IDBI Federal 6

1.2 Incomesurance plan of IDBI Federal 8

1.3 Functioning of Childsurance plan 10

1.4 Functioning of Lifesurance plan 11

1.5 Organizational structure of IDBI Federal 13

1.6 Major companies market share in terms of premium collected (FY16) 14

3.1 Logo of Kochi Marathon 22

3.2 Logo of New Delhi and Mumbai Marathon 23

6.1 Number of respondents in different Age Groups 38

6.2 Preference of respondents in different investment plan 38

6.3 Preference of respondents in different life insurance companies 39

6.4 Preferred company feature while choosing life insurance company 40

6.5 Percentage of respondents owning life insurance policy 41

6.6 Life Insurance Companies respondents are associated with 41

6.7 Responses of potential customers 42

6.8 Percentage of respondents who have heard about IDBI Federal 43

6.9 Different sources of brand awareness 44

6.10 Time frame preferred by customers for company to contact them 45

6.11 Preferred mode of communication from companies side 46

6.12 Preferred mode of communication by customers 46

viii
 List of Tables
Table Page
1.1 Different product ranges offered by IDBI Federal 6
1.2 Ranking of Life Insurance companies 13
2.1 SWOT Analysis 17

ix
 ABSTRACT
Insurance is a system to ease financial losses by transferring risk of loss from one entity to
another. It is a legal contract that protects people from the financial costs that result from
loss of life, loss of health, lawsuits, or property damage. Insurance has emerged as a
booming sector in India.

The focus of this project is on life insurance sector. The different tools and strategies adopted
by IDBI Federal in order to accomplish a strong and lasting relationship with the customers
are studied in depth. This project is an attempt to find out customers preferences while
choosing a life insurance company and based on the results what are the changes that needs
to be incorporated by IDBI Federal. The project also focuses on different HR policies
adopted by IDBI Federal.

x
 CHAPTER 1
PROFILE OF THE COMPANY

1
PROFILE OF THE COMPANY

1.1 Introduction to Insurance Sector

Insurance is a contract in which an individual or entity receives financial protection or

reimbursement against losses from an insurance company. Or it can simply be defined as transfer
of risk to the insurance company by paying premium amount. Under any kind of insurance only
probable and pure risk gets covered. The main objective is always compensation of financial
losses. Concept of insurance is as old as human civilization. In earlier times, insurance was a
th
form of people helping each other. Till late 17 century insurance took a form of pooling system
in which a group of people share the risk by pooling in their resources and redistributing them in
times of emergencies. It became far more sophisticated in post-Renaissance Europe and
specialized varieties were developed. Insurance as we know it today can be traced back the Great
Fire of London in 1666 A.D. In the after math of this disaster Nicholas Barbon opened an office
to insure buildings. He established England’s first fire insurance company in 1680. The first
insurance company in the United States was formed in Charles Town, South Carolina in 1732.

The start of life insurance business in India was seen in 1818 with the establishment of Oriental
Life Insurance Company in Calcutta. The Life insurance sector in India was nationalized in 1956
and Life Insurance Corporation came into existence. LIC enjoyed monopoly in this sector till late
90s. Today Indian insurance sector consist of 52 companies out of which 28 are general
insurance companies and remaining 24 are life insurance companies. Among the present life
insurers, Life Insurance Corporation(LIC) is the sole public sector insurer. Apart from that
among the non-life insurers there are six public sector insurers. In addition to these, there is sole
national reinsurer, namely, General Insurance Corporation of India. Out of 28 general insurance
companies, 4 private sector insurers are registered to underwrite policies exclusively in health,
personal accident and travel insurance segments. They are Star Health and Allied Insurance
Company Ltd, Apollo Munich Health Insurance Company Ltd, Max Bupa Health Insurance
Company Ltd and Religare Health Insurance Company Ltd.

2
Insurance sector in India is growing at a rate of 15-20%. Along with banking services,this sector
adds about 7% to India’s GDP. Insurance sector proofs to be a boon for the economic
development as it strengthens the risk taking capability of the country.

1.2 Introduction about the Company

IDBI Federal Life Insurance Co Ltd is a three way joint venture of IDBI Bank, India’s premier
development and commercial bank, Federal Bank, one of India’s leading private sector bank and
Ageas, a multinational insurance giant based out of Europe. IDBI Bank owns 48% equity while
Federal Bank and Ageas own 26% equity each. It was started in March 2008 and operates all
over India. In just five months of its inception, it became one of the fastest growing new
insurance company by garnering Rs. 100 crore in premiums. Its main activities include selling
insurance products through direct marketing, bank-assurance, agency channels or CSF. The
company believes in an innovative approach by continuously coming up with new products and
services with an aim to deliver world class wealth management, protection and retirement
solution that provides value and convenience to the Indian customer. It has a nationwide network
of 2,964 partner bank branches, i.e. IDBI Bank and Federal Bank, in addition to a strong sizeable
network of advisors and partners. As on March 31, 2017, the company has issued nearly 10.29
lakh policies with a sum assured of more than Rs. 58,653.76 crore.

IDBI Bank, since its inception on July 1st, 1964, has been India’s premier industrial
development bank. It has around 1717 branches and 3000 ATMs all around the country. It serves
retail and corporate customers with a wide range of innovative products and services. The
extensive range of services includes project finance, term lending, working capital facilities,
lease finance, venture capital, loan syndication, corporate advisory services and legal and
technical advisory services to its corporate clients. It also provides mortgage and personal loans
to its retail customers. IDBI Bank sponsors the development of financial institutions like
National Stock Exchange of India Limited (NSE), National Securities Depositories Ltd, Stock
Holding Corporation of India Ltd (SHCIL) and Credit Analysis and Research Ltd (CARE).

Federal Bank is one of India’s leading private sector banks. It has a dominance presence in the
state of Kerala. All over India, it has a strong network of around 1,247 branches and 1,485

3
ATMs. The bank provides over four million retail customers with wide range of financial
products and services. These includes Internet Banking, Mobile Banking, Tele Banking, Any
Where Banking, debit cards, online bill payment and call centre facilities to offer round the clock
banking convenience. It has pioneered in providing innovative technological solutions and has
won several awards and recommendations.

Ageas is an international insurance giant with a heritage of around 190 years. It is ranked among
top 20 insurance companies in Europe. It concentrates its activities in Europe and Asia which
together make up the largest share of the global insurance market. It has grouped its working in
four segments including Belgium, United Kingdom, Continental Europe and Asia. The bank
serves these segments through a combination of wholly owned subsidiaries and partnerships with
strong financial institutions and distributors around the world. Ageas is a market leader in
Belgium for individual life and employee benefits and also a leading non-life player through AG
Insurance. In UK it is the sixth largest non-life insurer with a number 3 position in car insurance
and has a strong presence in the over 50’s market. It has an annual inflow of more than EUR 23
billion.

26%

48%

26%

IDBI BANK FEDERAL BANK AGEAS

Figure 1.1: Graph showing the share percentage of three companies in IDBI Federal

4
1.3 Nature of Business

 Channel Agency
 Bankassurance
 Direct Marketing

1.4 Mission, Vision and Values

Mission:

 To continually strive to enhance customer experience through innovative product

offerings, dedicated relationship management and superior service delivery while striving
to interact with our customers in a most convenient and cost effective manner.
 To be transparent in the way we deal with our customers and to act with integrity.
 To invest in and build quality human capital in order to achieve our mission.

Vision:

To be the leading provider of wealth management, protection and retirement solutions that meets
the needs of our customers and adds value to their lives.

Values:

 Transparency: Crystal clear communication to our partners and stakeholders.

 Value to Customers: A product and service offering in which customers perceive value.
 Rock Solid and Delivery on Promise: This translates into being financially strong,
operationally robust and having clarity in claims.
 Customer-friendly: Advise and support in working with customers and partners.
 Profit to Stakeholders: Balance the interest of customers, partners, employees,
shareholders and the community at large.

5
1.5 Product Range of IDBI Federal

IDBI Federal offers different ranges of innovative products according to different customer
needs. Few of these includes Incomesurance Guaranteed Money Back Insurance Plan 6 Pay,
Childsurance Savings Protection Plan and Lifesurance Savings Insurance Plan. Company also
offers ULIP plans such as Wealthsurance Growth Insurance Plan, Wealthsurance Future Star
Insurance Plan, etc.

Endownment ULIP
Incomesurance Guaranteed Money Back Wealthsurance Growth Insurance Plan
Insurance Plan 6 Pay
Childsurance Savings Protection Plan Wealthsurance Future Star Insurance
Plan
Lifesurance Savings Insurance Plan
Table 1.1: Different product ranges offered by IDBI Federal

1.5.1 Endownment Plans

1.5.1.1 Incomesurance Guaranteed Money Back Insurance Plan 6 Pay

(Incomesurance)

Figure 1.2: Incomesurance plan of IDBI Federal

6
  Enjoy Guaranteed Income: It is a money back plan in which you get Guaranteed
th th
Annual Payouts starting from the 8 policy year till 13 policy year and are expressed as
a percentage of your annualized premium and is totally dependent on your age at entry.
The returns are not affected by the market conditions.
 Limited premium payment term: Under this policy you pay premium for short duration
of first 6 years only and then reap the benefits.
 Protection of your family with a Life cover of 13 years: This plan gives a life cover for
the entire policy term of 13 years making sure that your family’s future will be financially
secured under all circumstances.
 Critical illness benefit: It provides you financial protection against a pre-defined list of
serious health related conditions which are a risk concern in the growing age.
 Double tax benefit: This plan provides double sided tax benefit under Section 80C and
under Section 10(10D). This ensures that the premium you pay is tax free up to Rs.
1,50,000/- and also the maturity you get at the end of policy is also tax free.

1.5.1.2 Childsurance Savings Protection Plan

 Guaranteed annual payouts for important milestones

 Bonuses to add to your savings
 Immediate payout of lump sum in case of your unfortunate death
 Waiver of future premiums
 Plan continues and benefits are paid as planned
 Two tax benefits
 Flexibility to plan for your needs
 Exclusive fund for your loved ones
 Loan facility

7
 (Chidsurance)

Figure 1.3: Functioning of Childsurance plan

1.5.1.3 Lifesurance Savings Insurance Plan

 Lump sum payout at Maturity: At maturity you get Maturity Sum Assured (MSA) plus
guaranteed additions of first five years plus reversionary bonuses of the remaining years
plus the terminal bonus.
 Guaranteed Additions to safeguard your savings: In the first five years of the policy
you get annual guaranteed additions which are 5% of the sum assured.
th
 Bonuses to boost your savings: From 6 year onwards reversionary bonuses will be
added to your policy for the remaining years.
 Flexibility to plan for your needs: You can choose the policy term as well as the
Premium Paying Term as per need.
 Double Protection – Accidental Death Benefit: In the case of an unfortunate accidental
death during the premium paying term, your nominee will get an additional payout.
 Exclusive funds for loved ones: Your policy comes under Married Women’s Property
Act, 1874 with the help of which you can create an exclusive fund for your loved ones
which is legally protected from creditors and claimants.
 Loan: You can avail a loan of upto 85% of the Surrender Value.
 Tax Benefit: You enjoy double tax benefit as both the premium amount and the maturity
amount is tax free.

8
(Lifesurance)
Figure 1.4: Functioning of Lifesurance plan

1.5.2 Unit Linked Insurance Plan(ULIP)

1.5.2.1 Wealthsurance Growth Insurance Plan
 Choose how much you want to invest and for how long: This policy gives you the
ability to decide the amount of money you want to invest, for the duration for which you
want to invest and when you want to avail the benefits in the form of fund value.
 Manage your investments as per your risk appetite: It gives you 9 different funds to
choose from in which you want to invest the money based on your risk appetite. You can
manage your fund yourself or you can leave it to our fund managers without any extra
charges. Also unlimited switching among the funds is allowed free of cost.
 Get guaranteed loyalty additions to boost your investment: At the end of the 10th
policy year and every 5 years thereafter, you get guaranteed loyalty additions as a reward
for staying invested in the plan.
 Life Cover benefit to financially secure your loved ones: In case of an unfortunate
event like death, nominee gets the death benefit in the form of sum assured or the fund
value,

9
  Double Tax Benefit: You enjoy double tax benefit as both the premium amount and the
maturity amount is tax free.

1.5.2.2 Wealthsurance Future Star Insurance Plan

It is a unit-linked insurance plan that is ideal for people who want utmost security for their
child’s dreams. In case of an unfortunate event, this plan waivers the remaining premium
payments and provides maturity benefits as initially planned.

 Life cover with triple benefits

 Wealth Care Switcher benefit
 Education Support benefit
 Guaranteed loyalty additions to boost savings
 Tax Benefits

10
1.6 Size of the Company

1.6.1 In terms of Manpower

IDBI Federal Life Insurance Co ltd has 1,941 employees and over 10000 agents who are
working for the company.

1.6.2 In terms of turnover

The size of the company in terms of turnover is approximately 1000 crore. The company
achieved its break even in just 5 years and is making huge profits.

1.7 Organizational Structure

Figure 1.5: Organizational structure of IDBI Federal

11
1.8 Market Share and Position of the Company

1.8.1 Market Share

Life Insurance Corporation (LIC) continues to dominate the life insurance sector in the financial
year 2016 with the market share of 70.4%. Other major players in the market are SBI, ICICI,
HDFC and Bajaj Allianz with the market size of 8.06%, 5.1%, 4.88% and 4.08% respectively.

(ibef)

Figure 1.6: Major companies market share in terms of premium collected (FY16)

1.8.2 Position of the company

Following table shows the ranking of Life Insurance companies in terms of their claim
settlement ratio in FY2015-16:

List of Life Insurance Companies Claim Settlement Ratio

LIC 98.33%
Max Newyork Life Insurance 96.95%
Tata AIA Life Insurance 96.80%
ICICI Prudential Life Insurance 96.20%
AEGON Life Insurance 95.31%
HDFC Standard Life Insurance 95.02%
Reliance Life Insurance 93.82%
12
SBI Life Insurance 93.39%
Canara HSBC OBC Life Insurance 92.99%
Sahara Life Insurance 90.30%
Future Generali India Life Insurance 90.26%
Exide Life Insurance 89.36%
Kotak Life Insurance 89.09%
Birla Sun Life Insurance 88.45%
PNB MetLife Insurance 85.36%
Edelweiss Tokio Life Insurance 85.11%
IDBI Federal Life Insurance 84.79%
Table 1.2 Ranking of Life Insurance companies

1.9 Objective of the study

 To study the various tools and strategies adopted by IDBI Federal Life Insurance in order
to maintain customer relations.
 To understand the customers preferences while choosing a life insurance company.
 To study different HR policies adopted by IDBI Federal Life Insurance Co Ltd.
 To study various products of IDBI Federal Life Insurance.

1.10 Sources of Data Collection

1.10.1 Primary data

Sources of primary data collection are in the form of interview to get the insight into the working
of IDBI Federal Life Insurance in the direction of Customer Relationship Management. Also a
structured questionnaire is used to understand the expectations of the potential customers from
any life insurance company.

13
1.10.2 Secondary Data

Secondary data is collected from internet, company’s website, articles, blogs, newspapers,
magazines etc.

14
 CHAPTER 2

SWOT ANALYSIS

15
SWOT ANALYSIS

2.1 Introduction to SWOT Analysis

SWOT Analysis is a powerful technique adopted by companies for identifying and evaluating the
strengths, weaknesses, opportunities and threats clearly and distinctly. It can be carried out for a
product, place, industry or a person. It involves specifying the objective of the business or
product and identifying the internal and external factors that are favorable and unfavorable to
achieve that objective.

 Strengths: It covers the characteristics of the business or project that gives you an
advantage over others.
 Weaknesses: These are the characteristics that place your company or a project at a
disadvantage over the others.
 Opportunities: These are the elements that the business or project could exploit to its
advantage.
 Threats: These are the elements in the environment that could cause trouble for the
business or project.

16
2.2 SWOT Analysis of IDBI Federal Life Insurance

STRENGTHS WEAKNESSES

 Strong distribution and sales  Lack of awareness in rural areas

network  Lack of customer confidence in private
 High number of products to cater Players
the needs of the customers  Lack of brand awareness among
 Alliance with IDBI and Federal potential customers
bank helps build strong brand
image
 Superior customer service
 Presence of IDBI Federal all
around the country

OPPORTUNITIES THREATS

 Inflow of strong managerial  Increase in insurance frauds leads to lack

expertise from foreign companies. of trust in the customers
 Growing market in rural sector  Changing business environment
 Small percentage of insurable  High competition in the market
population in the country

Table 2.1: SWOT Analysis

17
 CHAPTER 3

PROMOTIONAL STRATEGIES OF IDBI

FEDERAL

18
PROMOTIONAL STRATEGIES OF IDBI FEDERAL

3.1 Introduction

Indian insurance industry is highly competitive and has big expanding opportunities because of
small percentage of population being insured in the country. This leaves a very large untapped
potential for any insurance company. Indian insurance industry has been rapidly changing with
the entry of a number of global insurers. Most of the private insurance companies in India are
having joint ventures with recognized foreign institutions from all across the globe. Like in case
of IDBI Federal which is in joint venture with Ageas, an international insurance giant. Global
insurance giants are attracted to Indian market because of reaching saturation in their developed
economies. Innovative products and aggressive marketing have enabled private insurance
companies to gain Indian customers faster than anyone expected.

Insurance products come in variety of forms and different marketing strategies are used by the
companies to entice customers. Due to high competition in the market, insurance companies
need to market their products to the same customers. The price being offered and the advertising
message being send across distinguishes insurance company product from rest in the market.
Hence, insurance companies do marketing using different methods instead of focusing on one to
reach the masses.

3.2 Promotional Strategy of IDBI Federal

IDBI Federal Life Insurance already have strong distribution network of 2,186 partner bank
branches and has adopted various promotional strategies like commercial and print advertising,
social media, events, personnel selling, word of mouth, viral marketing, etc. By the time IDBI
Federal entered into the market, major players like Life Insurance Corporation of India (LIC) and
many others had well established their presence. So to make a presence in the market, IDBI
Federal introduced variety of products and aggressively marketed them in an innovative way.

3.2.1 Advertising

IDBI Federal have come up with variety of advertisements for their products such as
Incomesurance, Wealthsurance, Retiresurance etc. which has got very positive response from the
19
customers. With all the advertisements positioning remains the same. The strategy is always to
focus on the product. They believe that product is their differentiator and they add tremendous
value for the customer. They prefer to add a little humor into their advertisements unlike other
insurance companies. The complete cost of making a commercial is approximately Rs. 20 lakh.
Companies advertising agency is Ogilvy and Mather along with Equinox (TLG) as its media
partner. The usage of single television commercial by the company is 2 years.

3.2.2 Print Media

Mainly newspaper, magazines and pamphlets are used for print media advertising. In
newspapers, Economic Times, Times of India and Hindu prove to be major source of advertising.
Pamphlets are distributed at least 5 times a month without any cost all across India. It is to
increase awareness about products and services offered by IDBI Federal. There is no specific
magazine chosen by the company for advertising. It is very much dependant on the sales and
reputation of any particular magazine like Outlook, Money, etc. Advertisement regarding the
products/services is given every month at least once in any magazine.

3.2.3 Sponsorship/Events

Some events are conducted in and around the city to create awareness about the company and its
products/services. Local marketing people interact with the potential customers and understand
th
their financial needs and accordingly pitch the products. On 15 November 2015, IDBI Federal
Life Insurance Spice Coast Marathon was organized in Kochi. Over 2300 runners participated in
the marathon. The marathon was flagged off by Mr. Paul Anthony, Chairman, Cochin Port Trust
and senior most IAS officer.

Figure 3.1: Logo of Kochi Marathon

20
Other similar event includes Mumbai Half Marathon 2016, New Delhi Marathon 2017
and Kolkata Full Marathon 2017, etc.

Figure 3.2: Logo of New Delhi and Mumbai Marathon

3.2.4 Branded Promotional Gifts/Social media

Company distributes gifts like bags and T-shirts with the tag of IDBI Federal Life Insurance in
promotional events, during training etc. to create brand awareness. The strong network of
distributors and parent advisors helps in promoting the company products/services through word
of mouth. Viral campaigns are also run online in which flash video of working of products is
explained in humorous manner.

21
 CHAPTER 4

HR POLICIES OF IDBI FEDERAL

22
HR POLICIES OF IDBI FEDERAL

4.1 HR Initiatives of IDBI Federal Life Insurance

IDBI Federal Life Insurance Co ltd has 1,941 employees and over 10000 agents who are working
for the company. Company provides many facilities to the employees as well as the agents. The
managerial style is participative in nature at IDBI Federal. Company invest heavily on
progressive HR practices to make sure of a vibrant career for its employees. Following are some
of the HR initiatives taken by the company:

 Refersurance: It is the employee referral program in which company offers incentives

to the existing employees for recommending people in their network who can add value
to the company’s growth. Incentives are given because through this program employees
can contribute to the company’s talent needs.
 Fun at Work: Work culture at IDBI Federal is very open to encourage great
performance through fun and stimulating.
 Afterhours: It is a kind of workshop which has nothing to do with work. These are
interactive sessions on fun and discussions on interesting topics. It is held on the
weekends.
 Page-Turners: It is a central knowledge repository that comprises of books, journals,
magazines, etc. on insurance and other non-fictional reading areas.
 Celebration of Festivals: Festivals and other days of important are celebrated at work
place with full energy to facilitate bonding among employees and help build strong
teams.

4.2 Recruitment Process

Careersurance is the career management program of IDBI Federal. It ensures that the manpower
employed by the company are well equipped and empowered to deliver, succeed and progress as
to ensure a rewarding career with IDBI Federal. Following are the steps included in the program:

23
 On-boarding: New recruits are supported with wide range of developmental programs.
This equips the new employees with key information and helps in developing their skills
so that they can perform their roles effectively.
 Learning and Development: This initiative involves a blend of coaching, mentoring, on
the job learning, classroom learning and e-learning initiatives. Also various tools and
resources are designed to the sales force plan, manage and organize their activities and
work effectively. It provides learning experience to the employees that help them achieve
their career goals.
 Rewards and Recognitions: The reward system comprise of competitive compensation
and benefits. It encourages the employees to give their best performance at work.
 Goalsurance: It is the goal setting and performance management program that helps
employees set, monitor, align and achieve companies goals.

24
 CHAPTER 5

CRM POLICIES OF IDBI FEDERAL

25
CRM POLICIES OF IDBI FEDERAL

5.1 Introduction to CRM

Customer Relationship Management (CRM) is the tools and strategies adopted by any company
in order to manage and analyze customer interactions throughout the customer lifecycle with the
goal of achieving good business relations with the customers which results in high customer
retention and also drives sales growth. CRM has become a necessity in today’s world for every
business firm. Customer relationship management (CRM) solutions provide customer-oriented
services for planning, developing, maintaining, and expanding customer relationships, with
special attention paid to the new possibilities offered by the Internet, mobile devices, and multi-
channel interaction. CRM enables a company to capture a consolidated customer view through
multi-channel interactions in a data warehouse solution. Sophisticated analytical techniques are
then applied to this customer information to better understand and predict customer behavior.
CRM can then be used to strategically implement acquired customer knowledge in every area of
the company, from the highest management level to all employees who come into direct contact
with customers. CRM thus enables an organization to address its customer’s preferences and
priorities much more effectively and efficiently. CRM is a tool that can help organizations to
profitably meet the lifetime needs of customers better than their competitors.

CRM (Customer Relationship Management) is something that is not restricted to any country or
culture. Wherever customers are there, business cannot afford to keep them unhappy; and that is
where CRM comes in as a strong requirement.

The concept of CRM is relatively simple and familiar to insurers. The two points of the concept
are:

 Understand your customers' unique requirements.

 Offer them the services and products over their lifetime that will maintain or increase
their profitability and retain them as your customers.
These are the some supporting strategies that implement these concepts to yield significantly
greater results and a true competitive advantage.

26
The focus of any CRM strategy is acquisition of new customers, retention of current
customers and customer profitability.

 Acquisition of customers: there is a need for the company to acquire new customers
for new products. Hence company comes up with different strategies from time to time
to attract new customers. The cost of acquiring new customer is five times more than
retaining a customer.
 Retention of customer: Company also needs to focus on the current customers in order
to make sure that they continue to be with the company and support their products.
 Customer profitability: It is the financial performance of the customer against all
the cost associated with acquiring and retaining that customer.

5.2 CRM policies of IDBI Federal

CRM in IDBI Federal Life Insurance plays a very important role as the company deals with life
insurance products which are a long term contracts. Also there is a need to properly segment the
customer base so as to be able to properly cater to their needs as different customers have
different financial needs and no single product will be ideal for all the customers. That’s why
IDBI Federal offers large number of products according to the different needs of different target
customers. Following study is being conducted in order to understand the CRM policies of
IDBI Federal in more detail.

5.2.1 Objective of the study

 To study the various tools and strategies adopted by IDBI Federal Life Insurance in order
to maintain customer relations.
 To understand the customers preferences while choosing a life insurance company.
 To study different HR policies adopted by IDBI Federal Life Insurance Co Ltd.
 To study various products of IDBI Federal Life Insurance.

5.2.2 Scope of the study

27
To understand the relations maintained by the IDBI Federal Life Insurance with its customers.
Ever increasing competition, low interest rates, and declining margins have driven firms to
discover the customer as the basic element in their business equation. Insurance sector has shown
tremendous growth in recent years. People now are becoming more and more cautious when it
comes to their financial planning. They want high profits in terms of finance and also the number
of benefit provided by the any company in which they are making their investment. Hence there
is a need to know the efforts being taken up by the companies towards convincing the customer
about their product and to know how to create high level of customer loyalty.

5.2.3 Limitations of the study

Due to time constraint, survey could not be conducted on a large scale. Hence, the data collected
from the study is too short and brief for generalization. So it would be difficult to draw precise
implications of the study. The findings in the study, interpretations and conclusions drawn could
be best seen within these limitations.

28
 CHAPTER 6

DATA ANALYSIS AND INTERPRETATION

29
DATA ANALYSIS AND INTERPRETATION

6.1 Research Methodology

The primary research objective is to understand the tools and strategies adopted by IDBI
Federal Life Insurance in order to optimize the customer relationship and gain competitive
advantage in the market. Also, what changes can be done in order to fulfill the customer
expectations. To achieve this objective following two questionnaires have been prepared:

 B2B: Interview questions for an employee of the company

 B2C: Questionnaire for the potential customers

The purpose of designing B2B questionnaire is as follows:

 To know the strategies adopted by IDBI Federal Life Insurance in order to acquire
and retain customers in long term basis.
 To understand how the strategies adopted by IDBI Federal is different from the
competitors.

The purpose of designing B2C questionnaire is as follows:

 To understand the customer preferences while choosing a life insurance company.

 To understand what are the different features of a life insurance company that influences
customer decisions.
 To understand what are the changes that are to be made in order to retain existing
customers and in addition to acquire new customers.

6.2 B2B Questionnaire

Interview questions to get an insight on different CRM methodologies used by

IDBI Federal Life Insurance Co Ltd

Q1. Why is it important for IDBI Federal to maintain customer relations and what
are the different steps being taken in this regard?

30
Ans1.Insurance is a long term contract with the customer hence maintaining good
relation with the customer is highly essential for good persistency and we have taken a lot
of steps towards the same such as regular timely follow-ups and updates.

Q2. What are the different tools and strategies adopted by IDBI Federal to ensure
highest level of customer satisfaction?

Ans2. Customer satisfaction is our main motto and it is a must for the growth in our
business. We offer very innovative products and services (both offline and online) and we
give the 8 day claim guarantee as well.

Q3. How chosen tools and strategies different from the ones adopted by the competitors?

Ans3. Our 8 day claim guarantee is unique in the market

Q4. Is there any customer feedback system? What is it?

Ans4. Customers are always welcome to connect with the company and provide their
feedback. They can mail us and call to customer care.

Q5. How do you address negative feedback?

Ans5. Very positively. Feedbacks which are genuine and in favor of all the stakeholders in
business are always get considered in our company.

Q6. How much time does company take to resolve any customer complaint?

Ans6. It depends upon the nature and facts of the complaint. The Turn Around Time
depends on the nature of complaint. We have being rated one of the best companies in the
industry in this regard.

Q7. How does company prefer to contact customers and how often do they do that?

Ans.7. It is an ongoing and regular practice, right from the proposal stage to renewal
premium payments and claim. We do connect with customers by mails, SMS and phone
calls.

Q8. What is the main reason for any customer to choose IDBI Federal?

Ans8. Brand, Customer centric products, services. 8days claim gurantee.etc.

Q9. What is the most important feature that differentiates IDBI Federal from its
competitors?

Ans9. Our vision, mission and the core values for the business.

31
Q10. What are the different steps being taken in order to increase brand awareness
among the target audience?

Ans10. IDBI FEDERAL is focusing on sports more to make a great connect with the
people. At present Marathons organized by us is one of the remarkable steps and Mr.
Sachin Tendulkar is also with us to promote it.

Q11. What is the strategy to ensure strong customer loyalty?

Ans11. We constantly work towards to make our customer service better and better and
offer innovative products which suit the needs of the customers from all the segments.

6.2.1 Analysis of B2B Questionnaire

Following are the current Customer Relationship Management (CRM) practices adopted by
IDBI Federal Life Insurance:

 Maintaining good relations with the customers is given very high priority in IDBI
Federal. The company keeps on upgrading its strategy according to the changing needs
of the customers.
 Company uses a very innovative approach while designing its products and services
with the vision of providing high customer satisfaction.
 Customer can avail the services provided by the company both offline and
online according to their preferences.
 8 Day Claim Guarantee: Company have designed the claim process to make it quick,
simple and hassle free. Under this initiative company promises to settle all the
claims within 8 working days otherwise it will pay 8% interest on death claim
amount. This service is offered by IDBI Federal and is unique in the market.
 E-Insurance Account: This is a unique initiative by IDBI Federal which helps the
customer in maintaining their insurance policies from multiple insurers in an
electronic format under a single electronic account.
 Online Premium Payment: Premium payment at IDBI Federal is simple and
convenient. Customer can make the payment choosing any of the following options-

Pay Online

Pay through IDBI Bank Branch

32
 
Pay through Federal Bank

Pay through IDBI Federal Branch

Pay through your Advisor

Pay through Standing Instructions Facilities

Pay through Auto Debit(NACH)

Pay through Common Service Center outlets

 Customer Grievances: The time taken by the company to resolve a complaint depends
upon the nature of the complaint. But company does try to solve the complaint within two
weeks of its receipt. IDBI Federal has been rated one of the best in the industry in this
regard.
 Company stays in regular touch with its customer, right from the proposal stage to the
renewal premium payments till claim settlement. Company reaches its customers by
mail, phone calls and SMS.
 The major step taken by the company in order to increase brand awareness is conducting
Marathons all around the country which are promoted by Mr. Sachin Tendulkar.

6.3 B2C Questionnaire

Survey to understand the customer preferences while choosing a Life insurance company

Dear Sir/Madam,

This survey is being conducted as a part of my summer internship project titled “Customer
Relationship Management at IDBI Federal Life Insurance Co Ltd”. The information provided by
you will be strictly kept confidential and will be used for academic purpose only.

Name:

Age:

Occupation:

Q1. Most preferred type of investment plan:

 Mutual Funds
 Bank Deposits
 Life Insurance
 Post Office Savings
33
  Shares & Bonds

Q2. Most preferred Life Insurance Company:

 Life Insurance Corporation of India(LIC)

 ICICI Prudential Life Insurance
 HDFC Standard Life Insurance
 Birla Sunlife Insurance
 Bajaj Allianz Life Insurance
 IDBI Federal Life Insurance Co Ltd

Q3. Choose most important feature that you consider while choosing a Life insurance company:

 Brand image
 Customization (Flexibility in changing the policy features)
 Customer Service
 Number of products offered
 Reliability (Delivering on promises)
 Responsiveness (Willingness to help)
 Claim settlement time

Q4. Do you own a Life insurance policy?

 Yes
 No

Q5. If yes, from which company?

________________________________________________________________________

Q6. Is there anything that you are not happy with your current life insurance company?
Please specify.

________________________________________________________________________

Q7. Have you heard about IDBI Federal Life Insurance Co Ltd?

 Yes
 No

Q8. If yes, what was the source?

 Advertisement
 Newspaper/Magazines

34
  Social Media
 Friends
 Customers of IDBI Federal Life Insurance Co Ltd
 Others, Please specify ___________

Q9. How often would you appreciate your life insurance company to contact you?

 Once every month

 Once every three months
 Once every six months
 Only for reminder of premium payment and at the time of maturity

Q10. What is the mode of communication you prefer from companies side?

 Telephone/Mobile
 E-mail
 SMS
 By post
 Other, Please specify _____________________________

Q11. What is your preferred mode to file a complaint?

 Telephone/Mobile
 E-mail
 Personally going to the branch
 Other, Please specify ______________________________________

Q12. How much time would you prefer the company to settle your complaint?

 Within a week
 Within 15 days
 Within a month
 More than a month

Thank You for your valuable time.

6.3.1 Analysis of B2C Questionnaire

Following is the question-wise analysis of the data gathered through B2C Questionnaire (The
sample size for the study was 40-50):

35
 20
Number of
respondants
15

10

0
20-29 30-39 40-49 50-59
Age Group

Figure 6.1: Number of respondents in different Age Groups

Above graph shows that the majority of respondent belongs to the age group of 20-29 and 40-49
i.e. 17 and 11 respondents respectively.

Q1. Most preferred type of investment plan:

 Mutual Funds
 Bank Deposits
 Life Insurance
 Post Office Savings
 Shares & Bonds

Figure 6.2: Preference of respondents in different investment plan

36
Interpretation:

From above pie chart we can see that 35% of the people prefer Life Insurance as an investment
option. Bank deposits are second most preferred with 27.5% people. The least preferred are post
office savings with just 2.5% people opting for it.

Q2. Most preferred Life Insurance Company:

 Life Insurance Corporation of India(LIC)

 ICICI Prudential Life Insurance
 HDFC Standard Life Insurance
 Birla Sunlife Insurance
 Bajaj Allianz Life Insurance
 IDBI Federal Life Insurance Co Ltd

Figure 6.3: Preference of respondents in different life insurance companies

Interpretation:
Above chart shows that Life Insurance Corporation of India (LIC) dominates among top 6 life
insurance companies with 65% people adopting for it. After LIC comes the ICICI Prudential Life
Insurance with 12.5% votes. IDBI Federal Life Insurance stands at third most preferred with
10% votes.
Q3. Choose most important feature that you consider while choosing a Life insurance company:

 Brand image
 Customization (Flexibility in changing the policy features)
37
  Customer Service
 Number of products offered
 Reliability (Delivering on promises)
 Responsiveness (Willingness to help)
 Claim settlement time

Figure 6.4: Preferred company feature while choosing life insurance company

Interpretation:

From the above results it is visible that the most important feature for customers is brand image
of the company while choosing a life insurance company. After that comes the reliability
(delivering on the promises) with 25.6%. Customization and clain settlement time stands at
third position with 12.8%.

Q4. Do you own a Life insurance policy?

 Yes
 No

38
 Figure 6.5: Percentage of respondents owning life insurance policy

Interpretation:

The majority of the respondents own the life insurance policy i.e. 63.4%.

Q5. If yes, from which company?

25

20

15

10

0
LIC ICICI Prudential IDBI Federal SBI PNB MetLife

Figure 6.6: Life Insurance Companies respondents are associated with

Interpretation:

21 respondents own the life insurance policy from Life Insurance Corporation of India (LIC).
Second most favored is ICICI Prudential Life Insurance followed by IDBI Federal, SBI and
PNB MetLife.

39
Q6. Is there anything that you are not happy with your current life insurance company?
Please specify.

Figure 6.7: Responses of potential customers

Interpretation:

Most of the respondents were satisfied with their current life insurance company. But few were
not happy with the time taken by the company to solve their complaints. They found complaint
solving to be time consuming on the companies side.

Q7. Have you heard about IDBI Federal Life Insurance Co Ltd?

 Yes
 No

40
 Figure 6.8: Percentage of respondents who have heard about IDBI Federal

Interpretation:

68.3% of the respondents have heard about IDBI Federal that means brand awareness of
the company is quite high.

Q8. If yes, what was the source?

 Advertisement
 Newspaper/Magazines
 Social Media
 Friends
 Customers of IDBI Federal Life Insurance Co Ltd
 Others, Please specify

41
 Figure 6.9: Different sources of brand awareness

Interpretation:

The above results show that the word of mouth plays a very important role in creating brand
awareness among the potential customers as majority have heard about IDBI Federal from
friends/relatives i.e. 44.8%. After that comes advertising as a source of creating brand awareness
with 24.1%. Then comes social media with 13.8%.

Q9. How often would you appreciate your life insurance company to contact you?

 Once every month

 Once every three months
 Once every six months
 Only for reminder of premium payment and at the time of maturity

42
 Figure 6.10: Time frame preferred by customers for company to contact them

Interpretation:

Majority of the customers prefer company to contact them once every three months i.e.
37.5%. Almost same number i.e. 35% prefers company to contact them only for reminder of
premium payment and at the time of maturity.

Q10. What is the mode of communication you prefer from companies side?

 Telephone/Mobile
 E-mail
 SMS
 By post
 Other, Please specify

43
 Figure 6.11 Preferred mode of communication from companies side

Interpretation:

Majority of the customers prefer telephone/mobile and e-mail as the mode of communication
from company’s side with 45% and 40% votes respectively. Least preferred is SMS or post.

Q11. What is your preferred mode to file a complaint?

 Telephone/Mobile
 E-mail
 Personally going to the branch
 Other, Please specify

Figure 6.12: Preferred mode of communication by customers

44
Interpretation:

To complaint a file most preferred most of communication is telephone/mobile i.e. 71.8%. Than
comes complaint through e-mail i.e. 25.6%.

Q12. How much time would you prefer the company to settle your complaint?

 Within a week
 Within 15 days
 Within a month
 More than a month

Figure 6.13: Preferred time from companies side to settle a complaint

Interpretation:

Majority of the people prefer company to solve their complaints as soon as possible as 78.9%
said within a week. And only 15.8% went for within 15 days.

6.4 Findings

Following are the findings of the study based on the responses of two questionnaires:

 Most preferred type of investment is life insurance among people but still there is large
amount of customer base that doesn’t hold any life insurance policy. Hence there is huge
opportunity for life insurance companies in the market.

45
 Life Insurance Corporation of India (LIC) still dominates the insurance sector. Most of
the people who hold life insurance policy are associated with LIC. There is still a lot of
effort that private insurance companies needs to put in to gain customers faith.
 Brand image is the most important feature that a customer seeks while choosing a life
insurance company. It is because of the fact that life insurance is a long term investment
and hence customers prefer a company they have trust upon.
 Also trust is build when the company is delivering on the promises it makes. Hence,
reliability is another feature considered by customers while choosing a life insurance
company.
 The ability to choose the policy features while taking insurance is something that is being
offered by many companies. Because of that, the extent to which a customer can
customize his/her product also plays pretty important role.
 As the market is becoming more and more competitive, companies are trying every
possible bit to offer unique features to the customers. Claim settlement is usually a long
and slow process filled with lots of formalities. Hence, any company which will offer
earliest claim settlement feature will have a competitive advantage over others.
 In today’s competitive world, customers are becoming more and more aware of different
options they have in the market. Hence it is very easy to switch due to countless options
available in the market. So to address customer grievances as soon as possible is
becoming a necessity because filing a complaint is a very important point of contact
between the customer and the company. And if not addressed properly than customers
loyalty decreases.
 In the results of the survey, it can be seen that IDBI Federal is well known brand in the
market with word of mouth and advertisements of the company playing a very important
role in it.
 Company should be in constant touch with the customer throughout the life of the
contract. At least every three months being the most preferred option by the customers.

46
6.5 Recommendations

 Due to the presence of large untapped market there is a huge potential for growth for the
company. Hence, company should come up with more innovative products that cater to
different market segment needs.

 Brand image of the IDBI Federal is very much established but can be further
strengthened by doing strong marketing through newspaper/magazines and social media.
As the presence in these platforms is comparatively low when compared to the
competitors.

 Company should come up with more and more flexible products so that customers can
alter the product as per their financial needs.
 8 Day Claim Settlement policy of IDBI Federal is unique in the market. Company should
try its best to deliver on the promises it makes under this initiative.
 Company’s grievance system can be further improved. Right now time taken to resolve a
complaint by the company depends on the nature of the complaint. But company should
come up with some upper limit like a week or two within which the company can
guarantee to solve any issue faced by the customer. This kind of initiative can proves to
be very positive for the company as it will increase customer loyalty and customer
retention rate.

 IDBI Federal should be in constant contact with the customer throughout the contract
term as it helps in building strong trust within the customer. Company should update the
customer at least once every three months. This can be done through telephone/mobile
and by dropping a mail to the customer.

47
 REFERENCES

https://www.policybazaar.com/insurance-companies/life-insurance/

https://www.irda.gov.in/ADMINCMS/cms/NormalData_Layout.aspx?page=P
ageNo129&mid=3.1.9

http://www.worldblaze.in/top-10-best-life-insurance-companies-in-india/2/

http://business.mapsofindia.com/insurance/

http://www.idbifederal.com/AboutUs/Pages/Company-Profile.aspx

http://www.idbifederal.com/Press/PressRelease/Pages/SpiceCoastMarathon_
Kochi_Final_2015.aspx

https://www.bankbazaar.com/insurance/idbi-federal-life-
insurance.htmlhttp://www.policyholder.gov.in/indian_insurance_market.aspx

https://www.ibef.org/industry/insurance-sector-india/showcase(market share)

https://www.policybazaar.com/insurance-companies/life-
insurance/http://www.idbifederal.com/AboutUs/Pages/Key-Person.aspx

http://business.mapsofindia.com/insurance/top-ten-insurance-companies.html
http://www.worldblaze.in/top-10-best-life-insurance-companies-in-india/2

https://healtheappointments.com/swot-analysis-idbi-federal-life-insurance-
co-ltd-essays

https://www.swotanalysis24.com/swot-i/52955-swot-analysis-idbi-federal-life-
insurance.html

http://sdmimd.ac.in/SDMRCMS/reports/SIP2013/25.pdf

https://docs.google.com/forms/d/e/1FAIpQLSd1SdgJJJE5rBsTeyhv2bmCLgR
ozmGqzrZKMGevuyZq3Mi_kg/viewform?usp=sf_link

https://studymoose.com/promotional-strategies-of-idbi-federal-life-
insurance-essay
48
http://www.campaignindia.in/article/idbi-federal-life-insurance-announces-
new-campaign/413333

http://sdmimd.ac.in/SDMRCMS/reports/SIP2013/25.pdf

https://www.mindtools.com/pages/article/newTMC_05.htm

49