Research report

At

BHARTI AXA LIFE INSURANCE COMPANY LTD.

On

Analysis of Demographic Variables and Investment Psychology in

Insurance Sector

Submitted to

Gujarat Technological University

Prepared by

Anita Rajani
Enrolment no: 097030592007

Under the guidance of

Abhay Raja

Atmiya Institute of Technology and Science, Rajkot

Department of Management

Batch 2009-2011

July,2010
 DECLARATION

I undersigned Anita Rajani, a student of MBA 3rd semester declare that I have prepared

this project at “Bharti Axa Life Insurance Co Ltd” under guidance of Mr. Abhay Raja.I express

my extreme sense of gratitude towards our ssfor his unawaited enthusiasm in installing in us,

conspicuous motivation for excellence & providing inconceivable & indispensable guidance

every stage of project.I also declare that the project report is my own preparation and not copied

from anywhere else.

At, last I am thankful to all those who helped me directly or indirectly in this

comprehensive project report.

Place: Junagadh Signature

Date:

(Anita Rajani)
 ACKNOWLEDGEMENT

As per the syllabus fixed by the Gujarat Technological University practical knowledge

plays a vital and pivotal role. MBA is not based only on theoratical aspects but it also gives

proper consideration to practical aspects. So to get such experience & knowledge , I have

prepared research report on PUBLIC vs PRIVATE PLAYERS OF LIFE INSURANCE.

I am thankful to our Director as well as my project guide Abhay Raja For giving an

excellent guidance and co-operation .

I am also thankful to Mr. Chandresh Bhojani, the Branch Head of Bharti Axa Life

Insurance, Junagadh., and to all my respondents who gave me co-operation & their valuable time

by fulfilling the questionnaire which is essential for my research report.

Finally, I am thankful to all those persons who directly or indirectly helped me for preparing

the research report.

 PREFACE

In colloquial scenario everywhere Mobilization is there but most of the students are only

degree oriented and not action oriented. Therefore, MBA becomes only & only fashion

statement. 21st century is considered as knowledge based century. Nowadays in corporate world

without knowledge of practical aspects one can not sustain and survive successfully. The purpose

of such research report is to make some research related with particular aspects to know what is

reality and how every single thing is going on.

I would like to make research on performance of public and private life insurance

companies and in this regard I have selected the Bharti Axa Life Insurance Company.

This report contains all the essential information related with it.
 CONTENTS
Title Page no.

College Certificate

Company Certificate

Declaration III

Acknowledgement IV

Preface V

1. Introduction 1

1.1.1 Life Insurance: An Overview 1

1.1.2 Features of life insurance 1

1.1.3 Emergence of private players 2

1.1.4 Evolution of life insurance 3

1.1.5 Approaches to risk management 4

1.1.6 Techniques towards the risk management 4

1.1.7 Milestones 5

1.1.8 Best deals for insurance 7

1.2.1 Bharti Axa Life Insurance Company Ltd 8

1.2.2 Company Profile 8

1.2.3 Managing body 9

1.2.4 About Bharti Axa Life Insurance 10

1.2.5 Introduction of Bharti 11

1.2.6 Under the umbrella of Bharti 12

1.2.7 Introduction of Axa 12

 1.2.8 Axa vision 13

1.2.9 Vision, value & strategies of Bharti Axa 13

1.2.10 Strategic differentiations 14

1.2.11 Successful team of Bharti Axa Life Insurance 15

1.3 Marketing Department 16

1.4 Finance Department 23

1.5 Service Department 27

1.6 Human Resource Department 31

1.7 SWOT Analysis 38

1.8 Literature review 40

1.9 Relevance of study 44

2. Research Methodology 45

2.1 Research problem 45

2.2 Objectives of research 46

2.3 Research design 47

2.3.1 Type of research 47

2.3.2 Research instrument 47

2.3.3 Sample plan 48

2.3.4 Sources of data collection 48

3. 3.1 Data Analysis & Interpretation 49

3.2 Hypothesis 60

3.3 Hypothesis testing 61

3.4 Findings 65
 3.5 Suggestion 66

4. Conclusion 67

4.1 Implications of the present study 67

4.2 Limitations of the study 68

4.3 Scope of future research 69

5. Bibliography 70

6. Annexure 72

6.1 Questionnaire 72
List of Tables

NO. Title Page No.

1.1 Table showing proportion of people associated with life

Insurance. 49

1.2 Table showing proportion of companies preferred. 51

1.3 Table showing proportion of no. of policies held. 52

1.4 Table showing proportion of objectives of investing in life

Insurance. 53

1.5 Table showing proportion of awareness about benefits of life

Insurance. 54

1.6 Table showing proportion of awareness about options of

premium payment. 55

1.7 Table Showing proportion of preference of mode of premium. 56

1.8 Table showing proportion of awareness about Bharti Axa Life

Insurance. 57

1.9 Table showing proportion of sources of information. 58

1.10 Table showing proportion of views regarding attending free

seminar of Bharti Axa Life Insurance. 59

 Chapter 1
INTRODUCTION

1.1.1 INDUSTRY OVERVIEW

Insurance is a federal subject in India and has a history dating back to

1818. Life and general insurance in India is still a nascent sector with a huge potential

for Various global players with the life insurance premiums accounting to 2.5% of the

country‟s GDP while the general insurance premiums to 0.65% of India‟s GDP.

Life Insurance Corporation (LIC) remains by far the largest player in the

market. Among the Private sectors, ICICI Prudential Life Insurance is the largest

followed by Bajaj Allianz Life Insurance Company Limited. The private companies

are coming out with better products which are more beneficial to the customers E.g.

The clips-the Unit Linked Investment Plans which offers both life cover as well as

scope for savings and investment options.

1.1.2FEATURES

Sharing of Risk

.Cooperative device

Evaluation of Risk

Payment on event of happening of any special event

The amount of payment depends on the size and type of loss.

.The success of Insurance business depends on the law of large number of people

insured against similar risk.

1
 Insurance is a business which spreads the loss and the risk of few people in the

large number of people.

The insurance is a plan in which insured transfer his risk to insurer.

Insurance is divided in two basic zones:-

1. General Insurance

2. Life Insurance about General Insurance:- Insurance of the non life assets are

called

General insurance, this includes loss of asset against water, fire, earthquake

etc.

1.1.3 EMERGENCE OF PRIVATE PLAYERS

From the beginning of Insurance in India till now a lot of changes have been

made but the most significant change was in 1999, when IRDA was formed. IRDA

means Insurance Regulatory and Development Authority. This was formed to rethink

upon opening the insurance sector for the Private players again but along with that to

have a check upon those private players an IRDA has to act as a governing body to

safeguard the interest of the public whose money is involved in it. From that time i.e.

from the year 2001 insurance sector was opened for the private players too. Since then

Insurance sector is on the boom and business is flourishing and a lot of private players

are coming into business. Here the private players doesn‟t indicate to Indian Private

Companies but also foreign players are also involved in it, but to manage the money

flow in and outside the country IRDA takes care of the contribution of the money by

foreign partners of private insurance companies. To control that IRDA has set a limit

of FDI i.e. 26%.

2
1.1.4 EVOLUTION OF INSURANCE

The first Insurance company in India 1870 Bombay Mutual Life Assurance

Company. First Indian Insurance company. 1912 The Indian Life Assurance

Company enacted the first law to regulate the life insurance business in India 1926

The Indian Assurance company act enacted to enable the government to collect the

statistical information about the insurance. 1938 The earlier legislation consolidated

and amended the life insurance act with the objective of protecting the interest of

insurance in the public. 1956 245 Indian and foreign players and prudent societies are

taken once by Central govt. and nationalized.

The number of companies in Insurance particularly in Life Insurance has

changed drastically now the number is in 17. List of them are mentioned below:-

1. Bajaj Allianz Life Insurance

2. ICICI Prudential Life Insurance

3. TATA AIG Life Insurance

4. Max New York Life Insurance

5. AVIVA Life Insurance

6. Bharti AXA Life Insurance

7. Kotak Mahindra Life Insurance

8. Reliance Life Insurance

9. SBI Life Insurance

10. HDFC Standard Life Insurance

11. Birla Sun Life Insurance

3
12. Sahara Life Insurance

13. ING Vysa Life Insurance and so on....

1.1.5 APPROACHES TO RISK MANAGEMENT

Risk Management is the process of minimizing the risk due to

unforeseen events.

Steps involved in selecting the Risk Management are:-

• To identify all the things that can be possibly wrong.

• To consider possibility that an event can occur.

1.1.6 TECHNIQUES TOWARD THE RISK MANAGEMENT

AVOIDING THE RISK

Risk can be managed by avoiding it as when the perils will

come then it will be managed.

ELIMINETING THE RISK

Risk can be managed by eliminating the cause of the loss.

REDUCING THE RISK

Risk can be reduced by handling them in a systematic manner.

4
1.1.7 MILESTONES

• 1870 - Establishment of first Indian Life Insurance office - Bombay Mutual

Assurance Society

• 1912 - 1938 - Life Insurance Sector regulated - Indian Life Insurance

Companies Act enacted; Insurance Act 1938 passed

• 1956 - Life Insurance Nationalized through Life Insurance Corporation of India

Act - LIC becomes a State monopoly

• 2000 - Opening of the Insurance sector for private players. Presently Foreign

Direct Investment (FDI) is permitted upto 26 %

• 2005 - 14 companies offering life insurance - one dominant nationalized player

and 13 pvt companies

• 2006 - 15 private sector companies - 2 wholly Indian owned.

5
 Some of the interesting facts about Life Insurance Sector in India are:

1. Contributes 4.1 % of India's GDP

2. Second largest financial service after banking

3. Total number of lives insured and on books as of March 31, 2006 -

198,466,127

4. As of same date above, Rs. 5,496 billion is the total Assets under Management

of Life Insurance Corporations

5. A statutory requirement exists to reach rural areas There are certain

restrictions on how the assets are allocated and how the profits are to be shared and

this underpins the time to return to profitablity for the private players.

6. 50 % of the assets to be invested in Government Bonds and 15 % in

Infrastructure bonds leaving only 35 % for the fund managers to creatively manage. It

is typically known to be a 6 year period and with the opening up of this sector only in

year 2000, none of the private players are

profitable yet.

6
1.1.8 BEST DEALS FOR INSURANCE

Policy
Institution Name Product Name Coverage Amount Premium
Term
Tata AIG Raksha Rs. 10,00,000 Rs. 2,420 20
SBI Shield - Annual
SBI Life Rs. 10,00,000 Rs. 2,454 20
Premium
Reliance Life Reliance Term plan Rs. 10,00,000 Rs. 2,600 20
Max New York Level Term Policy Rs. 10,00,000 Rs. 2,710 20
Bharti AXA Secure Confident Rs. 10,00,000 Rs. 2,850 20
Term Assurance Regular
HDFC Standard Rs. 10,00,000 Rs. 2,920 20
Premium

Suraksha Regular
Metlife Rs. 10,00,000 Rs. 3,100 20
Premium

Anmol Jeevan Regular

LIC Rs. 10,00,000 Rs. 3,260 20
Premium
Future Generali Future Care Rs. 10,00,000 Rs. 4,110 20

7
1.2.1 BHARTI AXA LIFE INSURANCE COMPANY

Bharti Axa Life Insurance is a developing company among private sectors Of

life insurance. It is newly established enterprise in compare to other private

enterprises of life insurance in India. But this enterprise has given a tough competiton

to other private life insurance companies,

1.2.2 COMPANY PROFILE

Name of the Company : The Bharti Axa Life Insurance

Nature of the Company : Private

Branches : 77

Address of the Company : 15-18, 3rd Flore,

Rayjibaug Shopping Centre

Junagadh-362 001

Phone No. : 0285-6452080

Website : www.bharti-axalife.com

8
1.2.3 MANAGING BODY

Managing Director & Chairman : Mr Sunil Bharti Mittal

CFO : Mr Milind Chalisgaonkar,

Chief Operating Officer : Tim Thomas Director

Human Resources manager : Priya Ranjan

Chief Distribution and Marketing Officer : Shyamal Saxena

9
1.2.4 ABOUT BHARTI AXA LIFE INSURANCE

Bharti AXA Life Insurance is a joint venture between Bharti, one of

India‟s leading business groups with interests in telecom, agri business and retail,

and AXA, world leader in financial protection and wealth management. The joint

venture company has a 74% stake from Bharti and 26% stake of AXA Asia

Pacific Holdings Ltd (APH). The company that launched its national operations in

December 2006 has over 3000 employees across over 12 states in the country and

their business philosophy is built around the promise of making people "Life

Confident".

The Bharti group is very popular across the length and breadth of the

country as leading cell phone service provider - Airtel and if marketed as Airtel

Insurance, people easily recognize the brand name. Also marketing message and

bundling could very well be done with the backing of Airtel. The market as of

2006, is dominated by LIC with 63 % share while ICICI Prudential and Bajaj

Allianz are leading private players with market shares of 10.6 % and 7.4 %

respectively.

Bharti.AXA has the challenges of second wave entrant while it has the

advantage to learn from the existing players and enjoy the already created

insurance awareness.

10
1.2.5 BHARTI

Bharti Enterprise is one of India‟s leading business groupswith interests intelecom,

agri business, insurance and retail.

Bharti Airtel, India‟s leading integrated telecom company hasbeenat the

forefront of the telecom sector with its world-class servicesbuilt on leading edge

technologies. Bharti has been a pioneering force in the telecomsector and today

enjoys a strong nationwide presence.

Bharti has grown successfully in partnership with various leading companies

of the world- Singapore Telecom, Vodafone, Warburg Pincus and British Telecom.

The other businesses of the group are Beetel, communication and media

devices. Bharti has recently forayed into the retail sector with its subsidiary Bharti

Retail. It has also entered into joint venture with Wal-Mart for setting up the supply

chain and to support the burgeoning theretail market in India.

11
1.2.6UNDER THE UMBRELLA OF THE BHARTI

• Bharti airtel ltd.

• Bharti TeleTech ltd

.
• Telecom seychellers ltd
.
• Bharti telesoft ltd.

• Teletech services(India) ltd

.
• Field fresh foods pvt. Ltd
.
• Bharti retail pvt. Ltd.

• Bharti AXA life insurance company.

• Jersey airtel ltd.

1.2.7 AXA

AXA Group is a worldwide leader in Financial Protection. AXA‟s

operations are diverse geographically, with major operations in Western Europe,

North America and the Asia/Pacific area. AXA had Euro 1,315 billion in assets under

managements as of December 31,2006. For full year 2006, IFRS revenues amounted

to Euro 79 billion. IFRS underlying earnings amounted to Euro 4,010 million and

IFRS adjusted earning to Euro 5,140 million.

The AXA ordinary share is listed and trades under the symbol AXA on the

Paris Stock Exchange. The AXA American Depository Share is also listed on the

NYSE under the symbol AXA.

12
1.2.8AXA VISION

“We have a demanding business. If we do it right, then we enable our clients

to be life confident because they feel reassured, protected & supported as the

undertakeimportant projects at various stages in their lives. Our vision of the business

is whatguides our daily work. It reflects the social & human aspects of financial

protectionwhose value to people has never been greater”

1.2.9VISION, VALUE & STRATEGY OF BHARTI AXA LIFE

INSURANCE CO. LTD.

VISION

To be a leader and the preferred company for financial protection and

wealth management in India.

VALUE

• Professionalism

• Innovation

• Team Spirit

• Pragmatism

• Integrity

13
STRATEGY

 To achieve a top 5 market in India through a multi-distribution, product

platform

 To adapt AXA‟s best practice blueprints as a sound platform for

 Profitable growth.

 To leverage Bharti‟s local knowledge, infrastructure and customer base

 To deliver high levels of shareholder return

 To build long term value with business partners by enhancing the proposition

to their customers

 To be the employer of choice to attract and retain the best talent in

 To be recognized as being close and qualified by customers

1.2.10 STRATEGIC DIFFERENTIATONS

• Strong partner Bharti- provides access to customer base of more than 20

millionMulti channel execution capability

• Current Asia product range which is a strong match to products sold to the mass

and mass affluent

• Global scale providing cost effective and speedy re-use of system products and

business capability

14
1.2.11 SUCCESSFUL TEAM OF BHARTI AXA GROUP –

JUNAGADH

N0. Name Designation

1. Chandresh Bhojani Branch Sales Manager
2. Dharamdas Gondaliya Manager of Agency
3. Bharat Raninga Manager of Agency
4. Hetal Vekariya Manager of Agency
5 Chirag Maru Manager of Agency
6 Bharat Solanki Manager of Agency
7. Parag Arora Training Manager
8. Nisha Moriyani Sales Supportive
9. Rachna Khakhi Operational Supportive

15
1.3 MARKETING DEPARTMENT

ACCORDING TO KOTLER,

” Marketing is a social and managerial process by which individuals and

groups obtain what they need; want through creating, offering and exchanging of

products of value through other. This definition of marketing rests on the core

concepts like: needs, wants, and demands, products (good, services and ideas); value,

cost and satisfaction; exchanger and transactions; relationships and networks;

markets; marketers and prospects. NATURE OF GOOD MARKETING THAT IS

WHAT BHARTI AXA INSURANCE BELIEVES IN, a good marketing.

It adopts different methods for the marketing:- Bharti AXA has positioned

itself in terms of BRAND POSITIONING as:-FINANCIAL FREEDOM: “life‟s full

of fabulous choices ”.

Bharti AXA always expressed itself as always close to Customers with the

help of:-

• Ads

• Merchandising

• Corporate Stationery

16
 Shyamal Saxena is the Chief Distribution and Marketing Officer of Bharti

AXA Life Insurance Company.Shyamal Saxena brings to the business over 15 years

of experience in the banking and financial services sector. Before join us in October

2007, he was with HDFC Bank as Executive Vice President – Retail Banking. He

joined the Bank in 1999, after a seven year stint in various retail banking capacities at

Bank of America. Shyamal is a management graduate from Jamnalal Bajaj Institute of

Management Studies

Marketing department is one of the leading departments of any company in

which functions like sales, distribution, adverticement etc. functions are performed

smoothly by various employees working at different levels of the department.

1.3.11 MARKETING STRATEGIES

A very common way to promote a Life insurance company through Life

Insurance Marketing is to make the name of the company familiar to others by means
of television commercials, handling out pamphlets, hanging banners in populated areas
and by providing exciting offers.

Telephone marketing is another way of Life Insurance Marketing. One can see
the telephone companies send messages about various offers and they even make phone
calls.

17
 One should listen to the existing Life Insurance Policy Holders as well as the
potential Life insurance policy holders and listen to what people who actually matters
have to say. One common problem that the insured persons face is that the insurance
companies do not inform its clients about the hike in the premium rates. These things
should be kept in mind.

Community Life Insurance Marketing is another different way to get

promotion and a high recognition for the Life insurance company. Eminent workers join
local community institutions, such as Chamber of Commerce, and by signing up there
one can help out various projects that take place. customer welfare.

People in this Life insurance industry should always try to keep in constant
contact with the existing customers as well. The competition in the insurance market is
so fierce today that no company wants to loose out on a customer to another company.
Clients who are not contacted for a longer period of time normally fail to remain loyal to
the insurance company and look for a different Life insurance company.

May be the most crucial thing in insurance marketing is to always speakabout

unity and honesty while dealing with a business. A Life InsuranceHolder can find so

many frauds in various life insurance companies today, that life insurance customers are

going for products and services which are trustworthy to them. Feeling safe is about

insurances and other things are most important as far as the insurance holder is

concerned christianet.com, insurance.com.

18
1.3.2RECOMMENDATIONS

• Some more motivation to the employees over there is needed.

• Infrastructure has to be built properly because an office is the face of the

company.

• Tele marketing need to be focussed much.

• Networking is needed to be made broad as the number of branches with Bharti

Axa is only 77 have been touched by the company so there is a huge untapped market

available for the Bharti Axa Life Insurance.

. • Marketing in terms of the media via advertisements on Televisions to small

commercials on FM has to be made because there were respondents in our survey

who even haven‟t heard the name of Bharti Axa Life Insurance. FM is suggested

here because the people who can drive the private life insurance is the youth, and

Fumes something on which youngsters look upon too

. • Awareness Camp to the sub urban area should be focussed by Bharti Axa.

• Apart from the Brand Positioning in urban area, a strategy should be adopted by

Bharti Axa to make its brand also near to middle level, or high aspirant people

because they are the main source of the business in India.

19
1.3.5 BHARTI AXA AIMS AT 5 PERCENT MARKET SHARE IN

LIFE INSURANCE:

Bharti AXA plans on expanding its wings in the fast growing life

insurance market. It has forecasted a 5 percent market share holding by the end of

2012.

1.3.6 REASONS

The company is the huge potential and largely untapped insurance

market.India is the fifth largest life insurance market in the emerging insurance

economieglobally and is growing at 32-34% annually. This impressivegrowth in the

market has been driven by liberalization, with new player‟s significantly enhancing

product awareness and promoting consumer education and information.

Total life insurance premium in India is projected to grow Rs 1,230,000

Crore by 2010-11. The current market is worth 50,000 crores.

Bharti AXA Life insurance, which is a joint venture company between

India's leading conglomerate, the Bharti Group and France-based financial protection

and wealth management service provider-AXA, has currently amodest share of 1

percent in the market.

20
1.3.8 KEY STRATEGY

Bharti-Axa‟s key strategy is to leverage on the wide reach of Bharti Operations

by aligning with Bharti Airtel distribution points, corporate agents and brokers. Bharti

Axa has set-up virtual branches to distribute policies using the retail and telecom

outlets of the Bharti Group.

Bharti-Axa envisions virtual branches as a key strategy and has currently 25

percent revenues from the same.

However, despite the capital constraints, Bharti-Axa is all set to infuseanother

100 Crore in the fourth quarter. Apart from this, the company is on an aggressive

hiring spree with its plansto beef up the sales force to 45,000 from the present 30,000

1.3.9 CURENT PRODUCT PORTFOLIO

The current product portfolio of Bharti-Axa is that of eight life insurance

products. This includes six ULIP products. The company‟s CFO, V Srinivasan,

commented that Bharti-Axa‟s key strategy would be to focus strongly on ULIP

products.

21
1.3.10 MARKET SHARE

If we look at the status of Bharti AXA Life Insurance‟s market share is

comparison of other private company in comparison of premium earned

NO. COMPANY SHARE ( IN %)

1. Bajaj Allianz 7.56

2. ICICI Prudential 7.35

3. Bharti AXA 4.10

4. HDFC Standard Life 2.87

5. SBI Life 2.31

6. Birla Sun Life 1.89

7. Tata AIG 1.29

8. Max New York 1.23

9. Aviva 1.14

10. Kotak Mahindra OLD Mutual 1.11

11. ING Vysya 0.79

12. Reliance Life 0.54

13. MetLife 0.40

14. Sahara Life 0.06

15 Shriram Life 0.03

22
1.4 FINANCE DEPARTMENT

V Srinivasan is currently the Chief Financial Officer of Bharti AXA Life

Insurance Company. He started his career as a Chartered Accountant in 1989 and

over the past two decades has emerged as a stalwart in the financial sector. Withover

8 years of rich experience in the Life Insurance industry, today, he stands as a

storehouse of financial knowledge and expertise. His portfolio also boasts of

extensive experience in diverse industrial segments like manufacturing and oil &gas.

Financial department of Bharti Axa Life Insurance Company contains

basically all the financial matters dealt with. Various financial plans and policies of

Bharti Axa Life Insurance Company can be included in it.

1.4.1BHARTI AXA TO INFUSE RS 100CR

Private insurer Bharti AXA Life Insurance will make an additional capital

infusion of Rs 100 crore by the end of the present financial year to expand its

distribution network and train its sales force.

23
1.4.2 PRESENT CAPITAL BASE OF BHARTI AXA LIFE

INSURANCE

The present capital base of Bharti Axa is Rs 758 crores. The company is also

looking at launching new plans to complete its product portfolio.

1.4.3 STRENGTHENING CAPITAL

“ The additional capital infusion is to strengthen our distribution network. We are

in our third year of operation and we already have a pan-India presence in over 170

locations with more than 200 branches,” said Shyamal Saxena, chief marketing office

of Bharti AXA.

Saxena said despite the slowdown, investments coming in insurance

productshaven‟t stopped. Customers have become choosy. “Despite the slowdown,

we haven't seen a shift in consumer. Insurance business in India is highly under-

penetrated andprovides huge opportunity for growth,” he said. Bharti AXA is hoping

to register a three-fold growth in business during this fiscal over the previous year,

Saxena said, while refusing to give an exact figure

24
1.4.5 VARIOUS PLANS AND INVESTMENT

Bharti AXA Life Insurance also plans to enter the micro insurance space

soon. “Inmicro-insurance, the margins are small, but the volumes are very high so it

can be a profitable venture. We looking at it very seriously,” said Saxena. All the

insurance\companies as per the IrDA rules also have to do a certain percentage of

their business through micro-insurance. This percentage is determined by the number

of years the company has been in existence.

1.4.6CREATING A HUGE FINANCIAL NETWORK

Bharit AXA Life in this calendar year will be focussed in building

itsdistribution network fast. The company also plans to leverage the huge network of

Bharti Airtel customers to sell insurance, under what it calls telcassurance.

Bhati AXA is also looking at making major investments in training of sales

force. “We have four training academies in the four metro cities. We have and we will

spend a lot on training because we want to build our business on best class

qualitypractise. We make sure our agents do not mis sell. It is important for us,”

added Saxena.

25
1.4.7 COMMISSION / INTERMEDIATION FEES

The maximum commission limits as per statutory provisions are:

Agency commission for retail life insurance business

• 35-40% for 1st year premium if premium paying term is more than 20 years

• 25-30% for 1st year premium if premium paying term is more than 15 years

• 10-12% for 1st premium if premium paying term is more than 10 years

• 7.5 – yr 2 and 3rd year and 5% - thereafter for all premium paying term

In case of mutual fund related – unit linked policies it varies 1.5% to 60% on the premium

Paid.

1.4.8 AGENCY COMMISSION FOR RETAIL PENSION POLICIES

 7.5% for 1st year premium and 2.5% thereafter

 Maximum broker commission – 30%

 Referral fees to banks – max 55% for regular premium and 10% for single

premium.

 However this fee can‟t be more than the agency commission as filed under the

product.

 However, the above commission may be further subject to the product wise

limits specified while approving the product.

26
1.5 SERVICE DEPARTMENT

Service department basically includes various services provided by Bharti

AxaLife Insurance. Here various plans and policies can be considered by considering

their different methods of providing different services.

1.5.1 PRODUCTS OF BHARTI AXA LIFE INSURANCE

1.5.2 WEALTH CONFIDENT

This plan is basically helpful to create wealth for a range of financial goals.

KEY FEATURES

• Pay premiums for 5 years while your policy accumulates wealth for 10

years

• Higher allocation of your first year premium up to 88% for investment

• Special additions every year starting from 6th policy year to enhanced

value to your investments

• 12 free switches every policy year and 6 investment fund options

27
1.5.3FUTURE CONFIDENT-II

This plan is useful to create a secured future.

KEY FEATURES

• The sum assured under this policy is 420 times of monthly pay

premiums.

• This policy supports building wealth for the long term

financial needs with better financial protection.

• Special additions at regular intervals commencing from the 7th

policy year continues to enhance the wealth.

1.5.4FUTURE CONFIDENT

KEY FEATURES

• This policy gives life insurance benefits up to 420 times of the

premiums paid monthly.

• The policy gives complete over all protection though

protection enhancers in the form of the riders.

• The policy provides wealth creation for long term financial

Requirements. The policy gives special additions at regular intervals

commencing from the 7th policy year to increase the Wealth.

28
1.5.6 DREAM LIFE PENSION PLUS

KEY FEATURES

• At inception, choose to systematically increase your premiums by 5 %

or 8% each year with the Accumulator Option Increase / decrease

premiums any time after the 2nd Year.

• Get liquidity through partial withdrawals after the Completion of 5

years.

• 12 free switches every policy year and 6 investment fund options

Special additions added to the fund at the end of 10th

Year and every 5 years thereafter.

1.5.7 SECURE CONFIDENT PLAN

KEY FEATURES

The available Policy Benefit Period are 5, 10, 15, 20 and 25 years.

• The premium (Base Policy premium) as per the mode of premium payment

chosen by you.

• In case of the unfortunate event of death of the Life Insured during the Policy

Benefit Period, the Company shall pay the Sum Assured to the Policyholder

or the nominee, as the case may be, provided the policy I affect.

• On survival of the Life Insured beyond the Policy Benefit Period, the policy

shall be terminated and nominees shall be payable to the Policyholder.

29
1.5.8 BHARTI AXA LIFE ASPIRE LIFE

KEY BENEFITS

Allocation rates as high as 100% i.e. no allocation charges for premiums

greater than or equal to Rs.50,000 on your investment in the unit-linked fund from

year 2 - to maximize

YOUR INVESTMENT RETURNS.

• Up to 175% of the first year premium paid by you is returned as Guaranteed

Special Addition, at maturity of the policy or on unfortunate event of death of the

Life Insured.

• 3 investment fund options as per your investment preferences.

• Flexibility of partial withdrawals after fifth Policy Year, premium holiday option

after seven policy years and facility to switch amongst the investment funds as per

your investment

30
1.6 HUMAN RESOURCE DEPARTMENT OF BHARTI AXA LIFE

INSURANCE COMPANY

Today the success of any business is widely dependent upon its human

resource. In present era where all companies have enough amounts of resources at that

time, human resource plays main role to pull an organization towards success.

Today in any financial institution right person at the right place becomes

necessary. So Bharti Axa Group has decided different strategies for recruitment,

training & development, promotion or any kind of transfer or demotion. Everything is

predecided and accordingly any decision is taken.

Up till now recruitment training was given to employees according to their

designations. But now it has been decided that each and every employee before

recruited, should have to clear all the examination related to different areas like DP,

capital market, derivatives related exam etc. and further it has been decided that no

new employment will be done without passing all the examination so on the basis of

score placement will be done.

31
1.6.1 ORGANISATION OF HR DEPARTMENT

The internal organization or structure of the personnel department varies

widely in different companies, depending upon that size. In large company there is

separate department called Human Resource Department. In Bharti Axa Life

Insurance Company. there is also separate department as HR Department and Ms.

Kiran Solanki is working as HR manager.

1.6.2 MANPOWER PLANNING

The process of determining manpower requirements and the means for meting

those requirements in order to carry out the integrate plan of the organization.

All the departments which are in need of additional of manpower have to contact the

HR department which makes the arrangement of the required manpower. Every

month the personnel department issues personnel requisition from the department and

this forecasts its manpower demand of each department accordingly the requirements

are made.

32
1.6.3 RECRUITMENT AND SELECTION

Recruitment is process to discover the sources of manpower to meet the

requirement of the staffing schedule and to employ effective measures for attracting

that manpower in adequate numbers to facilitate effective selection of and efficient

working force.

The selection procedure is concerned with security relevant information about

an application.

To recruit an employee within organization Bharti Axa Group gives promotion

to the existing employee or transfer to other place. But if Bharti Axa Group has to

select from outside then they follow the traditional channel for recruitment and

selection.

1.6.4 PROCEDURE OF RECRUITMENT AND SELECTION IN

BHARTI AXA GROUP.

Fill up the Application form

Written test

Personal interview

Reference checking

Medical check up

Final selection

Placement

33
1.6.5 TRAINING AND DEVELOPMENT

Mr. Parag Arora works as Training Manager in Bharti Axa Company. He

performs various functions as the guide of the Financial Advisors.

Various exams are conducted under the guidance of him.Basically online

examinations are arranged to give knowledge about various aspects of the job of a

financial advisor.

For training purpose they have adopted different techniques. Here they are providing

two types of training.

On the Job Training

Off the Job Training

To give job related training they provide on the job training and this type of

training is provided by supervisors & subordinates.

34
1.6.6 JOB DESCRIPTION

The job description is nothing but it is the return form of written form of job

analysis like what to do? Where to do? What is the main responsibility? To whom job

is responsible? Etc.

In other words job description means to give the information and guidance to

candidate about his particular job for which he has been selected it is a process of

giving information to candidate about his status duties responsibility etc.

In Bharti Axa Group when a managerial level person is selected following are the

information given to them.

Job summary

Duties and responsibilities

Position and status

Working condition

35
1.6.8 PERFORMANCE APPRAISAL

It is the process of evaluating the performance and qualifications of the

employee in term of the requirement of the job, for which he is employed.

The main aim of the evaluation system is to identify the performance gap. This

gap is the shortfall that occurs when performance does not meet the standard set by

the organization as acceptable.

Company the management is using one year of service period for studying

performance appraisal system. When a new candidate is recruited, the management

examines his performance for six months that is called as the probation period

1.6.9TIME KEEPING SYSTEM

Bharti Axa Group has adopted a very good time keeping system. The unit has

installed system. Each and every employee has to make their entry and exit in the

machine by giving finger print.

All are supposed to reach at venue before 9.30 a.m. Three times in a month the

late entry is allowed from the fourth time the half day salary cut is done. So company

is very good at punctuality.

Same is applicable to exit. All are supposed to exit at 7.30 p.m.

36
1.6.10WAGE AND SALARY ADMINISTRATION

Employee compensation is a vital part of human resource management.

Wages, salaries and other forms of employee compensation constitute a very large

component of operating costs.

“Wage and salary administration” refers to the establishment and

implementation of sound policies and practices of employee compensation.”

“One of the biggest factors affecting industrial relations is the salary or wage –

the compensation an employee receives for a fair day‟s work.”

37
1.7SWOT ANALYSIS OF BHARTI AXA LIFE INSURANCE

COMPANY

1.7.1 STRENGTHS

One of the strength of Bharti Axa Iife Insurance is its dedicated employees. When

employees are dedecated all activities can be conducted smoothly.

The management of the company is well- efficient and it becomes helpful in

managing and controlling the functional department.

Use of latest technology becomes a positive aspect. And it makes the working very

fast and saves time.

Bharti Axa believes in adapting changes as per changing environment and technology.

1.7.2WEAKNESSES

It is a newly established company in compare to other private life insurance

companies. So it possesses somewhat lack of experience

Sometimes some records and details are not available. So some kind of information

can not be got.

It is not much useful specifically to people of rural areas by considering its some

plans.

38
1.7.3 OPPORTUNITIES

Bharti Axa is a newly established company in compare to others. But it a fast

Growing company.

It has contributed in increasing per capita income by launching various plans

and policies.

It has improved the saving behavior of people. Such savings ultimately

increases the earning opportunities.

It is a highly growing ULIP Industry. Which will also generate employment

Specially

1.7.4 THREATS

It is a company having less experience in compare to other companies so it

has to face a tough competition. New York life insurance,Aviva etc.

There are difficulties in creating a large market specially for the people of

rural areas. Because people of rural areas are less aware and less educ

It is a difficult job of turning people from public insurance company to private

life insurance company. Because majority of them invest in public companies.

39
1.8.REVIEW OF LITERATURE

Drucker reported that by providing financial protection against the major

eighteenth and nineteenth century risk of dying too soon, life insurance became the

biggest financial industry of that century ………. Providing financial protection

against the new risk of not dying soon enough may well become that next century‟s

major and most profitable financial industry”.

Rao that 1999-2000 was a land mark year in the history of Indian insurance

industry. The year 2007 was going to be another watershed for the industry.

Detariffication from first January 2007 will totally change the complexion of the non-

life industry. Financial inclusion is being emphasized in various foray. The insurance

industry will have to play a vital role by providing health insurance and other

insurance products for the poor”.

A.K.Jain revealed that “Waves of liberalization have done wonders to proper

the insurance occupation to the status of a career with a bright future. The average

mindset

A.K. Shukla reviewed that the euphoria is well earned as well look at the

economic measures of liberalization initiated in insurance sector. Six years into

competitive market, the Indian insurance industry exhibited a healthy growth trend of

new business and market share. From total premium under written of Rs.34, 898 crore

in the year 2000-01 to Rs.66, 287.93 crore in 2003-04, followed by the aggressive

achievement posted at Rs.81301.40 crore in 2004-05, the life insurance industry saw

the new players stabilize their operations keenly matched by LIC and the premium

40
numbers bring out the fact that the size of the insurance market grew over the six

years of liberalization”.

C.S. Rao reported that “Insurance is a vital economic activity and there is an

excellent scope for its growth in the emerging markets. The opening up of the

insurance sector has raised high hopes among people both in India and abroad. The

recent detarrification in the non-life domain has provided a great deal of operational

freedom to the players”.

Sabera indicated that the Government of India liberalized the insurance sector

in March 2000, which lifted the entry restrictions for private insurance players,

allowing foreign players to enter into the market and start their operations in India.

The entry of private players helps in spreading and keeping the operation in the Indian

insurance sector which in turn results in restructuring and revitalizing of public sector

companies“. Status and Position of Indian Life Insurance

Carrow Kenneth A. AND Heron R.“Capital market reactions to the passage

of the Financial Services Modernization Act of 1999”. The authors investigate how

the passage of the Financial Services Modernization Act of 1999 (FMA) affected

stock prices of insurance companies. The study looks at stock excess returns across

sectors and company size. The idea is that the passage of the FMA opens doors for

potential mergers and consolidations across insurance sectors, translating into

abnormal positive returns for businesses that are the likely candidate for mergers and

consolidation. The results of the study suggest that the largest returns to the FMA

41
passage were realized by large investment by insurance companies. The stock prices

of banks, both small and large, seemed to be unaffected by the new legislation while

thrifts, finance companies and foreign banks lost value.

Estrella Arturo revealed that which types of mergers are likely to be most

productive for banks and other financial firms in the United States. The author acknowledges

that the extent to which different business activities are fundamentally distinct induces a

tradeoff between diversification gains and loss of efficiency. The research considers life

insurance, property/casualty insurance, securities, and commercial firms as potential matches

for firms and concludes that potential diversification gains arise from almost all combinations

involving banking and insurance..

Johnston, Jarrod and Madura J.“Valuing the potential transformation of

banks into financial service conglomerates: Evidence from the Citigroup merger” The

authors first summarize previous literature that examined motives for combining bank

and other financial services. Diversification benefits and product complementarities

(i.e. mortgage and mortgage insurance, auto financing and auto insurance) seem to be

the prime motives. However, some earlier research also suggests that there are few

linkages between bank services ands underwriting services in terms of customers,

outlets, or other characteristics that generate efficiencies.

Given the sources of potential gains, it appears that life insurance

companies with their limited underwriting risk and wide variety of other products

42
offered to individual customers would be more attractive targets for banks than other

types of insurance companies.

Boros, Joan E. said that “convergence” depends on its definition. She offers

very useful definitions for convergence: 1) Merger of banks and insurers, heretofore

independent, into a financial supermarket with endless cross-selling potential, and 2)

A combination of insurance and capital markets products moving into a union and

uniformity, or separate markets performing the same functions. This could also be

labeled as securitization of insurance risk and or “insurancization” of financial risk.

Gjertsen, Lee Ann“Insurance Agents‟ Thrift Seeks OK to Widen Reach.”

Insurance agents of New Jersey, Connecticut and Massachusetts founded an

association as „Independent Insurance Agents and Brokers‟ and have applied for a

charter for an association savings bank. The bank products are to be sold by the

independent insurance agents that own their own agencies. The bank is to be named

InsurBanc.

Gorski, Lorraine“The New Producers.” The article describes how insurers

can use the banks‟ customer base to reach new customers. Banks have the trust of

their customers and that would be a good distribution channel for life insurance,

especially in the midlevel or mass market. Banks could represent 3-4 different

insurers therefore the insurance products need to be competitive (for the customer and

the representative) and specific for bank employee selling. Furthermore, stable

relationships are necessary and the product needs to be branded and well advertised.

Underwriting will stay with the insurers but selling may go both ways by insurance

agents or bank employees.

43
6.RELEVANCE OF STUDY

The analysis of study would become helpful to the firm what the

performance of the various private as well as public life insurance policy. Where the

firm is standing in life insurance market can be known with the help of this study.

Analysis of both types of company shows that what are the probabilities for

both types of firms of increasing earnings. It would also show the causes of a large

changing situations of insurance industry.

In my this research report I have considered both- public life insurance

company and private life insurance company. For this purpose I have selected the

Bharti Axa Life Insurance Company Limited. The main motive behind this research is

to lead the firm which would help it to take various important decisions.

44
 CHAPTER 2

RESEARCH METHODOLOGY

2.1RESEARCH PROBLEM

Insurance industry is one of the most important financial instruments

contributing to the economic development of the country. Various researches are

conducted to evaluate the performance of insurance industry.

This research report has been prepared to get information about Bharti Axa Life

Insurance Company by taking people of different ages as variable and by testing

hypothesis for awareness and unawarenes about Bharti Axa Life Insurance.. And to

get information about the prioritry given by people people of different educational

qualifications are taken as variable and by testing hypothesis for it i.e. whether people

prefer public company or private company for investment.

45
 2.2 RESEARCH OBJECTIVES

Following are objectives of research report:

 To gain familiarity with a phenomenon becomes an important objective. By

making various things which are unknown by the co. Can be known. Eg.

Customer satisfaction

 To text a hypothesis of a casual relationship between variables is also an

important objective. Eg. In this research report by testing hypothesis the

awareness about the Bharti Axa Life Insurance can be known.

 One of the most important objective is to get knowledge about insurance

industry. And what are the current trends of policies, premium payments etc.

. To know about the difficulties faced by private insurance companies

 It also becomes necessary to get information about the competition prevailing

in insurance industry. So that various decisions can be taken..

46
2.3 RESEARCH DESIGN

2.3.1TYPE OF RESEARCH

As, no data was readily available based on which the analysis can be carried

out. So,this research is based on primary data. Here, the data is to be newly collected

throughthe research instrument i.e. a Questionnaire & the analysis was done & test

was conducted for the purpose to find out the relationship between the variables, from

the analysis. And the results will show the present situation prevailing in the firm. So,

it is Descriptive and Analytical research.

2.3.2 RESEARCH INSTRUMENT

Here, in this study, the data were collected through a Questionnaire.As the

research instrument; a questionnaire contained 23 no. of questions. Here,mainly the

questions relating to their opinions, and their satisfaction and perception about the

insurance companies were asked. From Q:1 to Q:10 were related to personal data.

To obtain perfect & accurate results of each question the different types

ofquestionswere used i.e. open ended, likert scale & dichotomous. From Q:11 to Q:23

were related to different insurance companies and investment.

47
2.3.3 SAMPLING PLAN

SAMPLE SIZE

The sample size of the research is of 100 respondents.

SAMPLING METHOD

Here, all interested people were selected to fill up the questionnaire & in some

companies only some employees were chosen randomly as sample. So sampling method

is Random Sampling

2.3.4 SOURCES OF DATA COLLECTION

As this is a primary research, the data was not readily available & was newly

collected with the use of questionnaires. Primary data for the research was collected.

We can say that the sources of Date Collection for research:~

 Questionnaire was used for survey.

48
 CHAPTER 3

3.1 DATA ANALYSIS AND INTERPRETATION

1. ARE YOU ALREADY ASSOCIATED WITH ANY LIFE

INSURANCE COMPANY?

49
OBJECTIVE

The objective of this analysi is basically to get information about the people

who are associated with any life insurance company. So that company can know

about awareness of life insurance companies.

INTERPRETATION

From the above analysis it can be interpreted that majority of people are

associated with Life Insurance Company. But still the proportion is lower by

considering the importance of life insurance.

50
2. IF YES THEN IN WHICH KIND OF COMPANY ARE YOU

ASSOCIATED?

OBJECTIVE

The basic objective of the above analysi is to know the awareness of people

and the priority given by them. So that it can be known what steps are needed to be

taken to increase the proportion.

INTERPRETATION

From the above analysis it can be interpreted that majority of people prefer to

make investment in public life insurance company. But still the awareness about

private life insurance companies.

51
3. HOW MANY POLICIES DO YOU HOLD?

OBJECTIVE

The basic objective of making the analysis is to get information about the

number of policies held by people. And which kinds of policies are preferred can also

be known.

INTERPRETATION

From the above analysis it can be interpreted that the proportion of people

holding two policies is the highest and the proportion of people holding more than

five policies is the lowest. The reason may be the risk factor considered by people.

52
4. WHAT ARE YOUR OBJECTIVES OF INVESTING IN

INSURANCE?

OBJECTIVE

The basic objective of making the above analysis is to know what is the factor

to whom people give priority while making investment. So that company can make

necessary decisions.

INTERPRETATION

From the above analysis it can be interpreted that majority of people consider

tax benefits while making investment. And then consider retirement benefits to secure

the future.

53
5. ARE YOU AWARE ABOUT THE BENEFITS OF HAVING AN

INSURANCE POLICY?

OBJECTIVE

The basic objective of making such analysis is to get information about the

awareness of the benefits of having a life insurance policy. The performance of

company is required to be analysed for that.

INTERPRETATION

From the above analysis it can be interpreted that majority of people are not

aware the benefits of having a life insurance company. The less education of people

may be one of the reasons for that.

54
6. ARE YOU AWARE ABOUT ALL THE OPTIONS OF PAYING

PRIMIUM?

OBJECTIVE

The basic objective of making the above analysis to get information

about premium payment. Premium payment is the main cause for investment in

different kind of policies.

INTERPRETATION

From the above analysis it can be interpreted that people do not have

much information of premium payment options. It may also be responsible for lower

investment in private life insurance companies.

55
7. WHICH MODE OF PREMIUM PAYING WOULD YOU

PREFER?

OBJECTIVE

The basic objective of making the analysis is to get information about priority

given by people for premium payment. So that various premium payment systems can

also be modified

INTERPRETATION

From the above analysis it can be interpreted that generally people refer yearly

payment of premium. The reasons for the priority given to it may be the easy

payment, shortage of time etc.

56
8. ARE YOU AWARE ABOUT THE LIFE INSURANCE POLICY

OF BHARI AXA?

OBJECTIVE

The basic objective of making the analysis is to get information about the

awareness of the Bharti Axa Life Insurance Company among people of different ages.

INTERPRETATION

From the above analysis it can be interpreted that the Bharti Axa Life Insurance

Company is slowly and gradually developing and creating a market in the competitive

environment.

57
9. IF YES THEN WHERE DID YOU GET TO KNOW ABOUT IT?

OBJECTIVE

The basic objective of making the analysis is to identify the factor which is

contibuting the highest for creating awareness about the Bharti Axa Life Insurance.

INTERPRETATION

From the above analysis it can be interpreted that advertisement is the most

developing and contributing factor for creating awareness about the Bharti Axa Life

Insurance.

58
10. IF THERE IS A FREE SEMINAR INFORMING ABOUT THE

BENEFITS AND PROSPECTS OF INVESTING IN LIFE

INSURANCE WOULD YOU SPEND YOUR TIME TO ATTEND

IT?

OBJECTIVE

The basic objective of maling the analysis is to know about the response of

people when they are provided informationfree of charge.

INTERPRETATION

From the above analysis it can be interpreted that people are not sure about it

though they are given the information free of charge. It can also be interpreted that

people are not showing much interest towards life insurance companies and their

policies.

59
3.2 HYPOTHESIS

The data presented below is collected through and the respondents, according to

their responses, they are classified according to the following:

From the demographics covered in the questionnaire, the test was conducted

mainly on 2 demographics i.e.

1. Age

2. Qualification &

For testing the Hypotheses, Chi-Square(χ2) was chosen..

60
3.3.1HYPOTHESIS TESTING-1

Setting of Hypothesis between awareness and unawareness about Bharti Axa Life

Insurance:

H0: There would be no significant difference between awareness and

unawareness about Bharti Axa Life Insurance among people of different

ages.

Ha: There would be significant difference between awareness and

unawareness about Bharti Axa Life Insurance among people of different

ages.

CALCULATION OF Χ2 TEST

Awareness Age of people (Years) Total

20 20-25 25-35 >35

Aware 13 14 10 23 60
Not aware 10 15 6 9 40
Total 23 29 16 32 100

61
 Observed Expected (O-E) (O-E)2 (O-E)2 / E
Frequency(O) Frequency
(E)
13 13.8 -0.8 0.64 0.05
10 9.2 0.8 0.64 0.07
14 17.4 -3.4 11.56 0.66
15 11.6 3.4 11.56 0.99
10 9.6 0.4 0.16 0.02
6 6.4 -0.4 0.16 0.025
23 19.2 3.8 14.44 0.75
9 12.8 -3.8 14.44 1.13
Total 3.695

The Table Value at 5% level of significance =χ2t = [ (r-1) (c-1) 0.05]

= [ (2-1) (4-1) 0.05]

= [ (1) (3) 0.05]

=7.815

DECISION

χ2c < χ2t

3.695 < 7.815

Therefore we accept the null hypothesis i.e. there is no significant difference

between the awareness and unawareness about Bharti Axa Life Insurance.We can

interpret here that because of increasing development of Bharti Axa its awareness

is increasing day by day.

62
3.3.2HYPOTHESIS TESTING-2

Setting of Hypothesis for the investment in public and private life insurance company:

H0: There is no significant difference between investment in public & private life

insurance company by people of different educational qualifications.

Ha: There is significant different between investment in public & private life

insurance company by people of different educational qualifications.

Investment Educational Qualification Total

10th 12th Graduate Post-

Graduate
Public 25 15 12 10 62
Private 3 5 6 6 20
28 20 18 16 82

63
 Observed Expected (O-E) (O-E)2 (O-E)2 /
Frequency(O) Frequency(E) E
25 21.17 3.83 14.67 0.69
3 6.83 -3.83 14.67 2.15
15 15.12 -0.12 0.0144 0.0009
5 4.88 0.12 0.0144 0.003
12 13.61 -1.61 2.59 0.19
6 4.39 1.61 2.59 0.59
10 12.09 -2.09 4.37 0.36
6 3.90 2.09 4.37 1.12
Total 5.10

The table value at 5% level of significance = χ2t = [ (r-1) (c-1) 0.05]

= [(2-1) (4-1) 0.05]

= [ (1) (3) 0.05]

= 7.815

DECISION

χ2c < χ2t

5.10 < 7.815

Therefore we accept the null hypothesis i.e. there is no significant difference

between the investment in public & private life insurance company. We can

interpret that people now have become aware about benefits of investing in private

life insurance company.

64
3.4 FINDINGS

 Majority of people are still not aware about the benefits of having life

insurance policy. They need to be made aware about the various products

according to the individual needs of the prospects & its benefits.

 I conclude that LIC is still the most preferred life insurance provider

mainly because it is a government undertaking.

 People prefer to buy life insurance policy, mainly for tax benefits & life

risk cover associated with life insurance & do not yet consider it as

powerful investment tool.

 Although majority of people are skeptical about private life insurance

companies yet because of their brand they are slowly but surely expanding

their market.

 Now a days people mostly prefer unit linked plans because they earn

higher returns with security of life.

65
3.5 SUGGESTIONS

 There remains need of creating awareness about life insurance companies

specially among people of rural areas.

 Locational facilities are required to be improved to create convinient environment.

 More and more seminars and meetings are required to be arranged to create a

large market.Don‟t make people wait who meet for the important insurance

purpose.

 The management should try to implement some better performance

appraisalmethods. So that various complaints of customers regarding services can

be removed.

66
 CHAPTER 4

CONCLUSION

4.1 IMPLICATIONS OF PRESENT STUDY

The research report prepared on the PUBLIC vs. PRIVATE PLAYERS OF LIFE

INSURANCE is implicated in various manners.

 The research will let the management know more about the present scenario of

insurance industry.

 The research will also be helpful to the management to make a comparative

analysis of private and public insurance companies.

 The research suggests the management to improve the feedback mechanism of

performance appraisal system.

 The research report also suggests that private life insurance companies are

slowly and gradually getting improved and developed.

 The research report will also be proved helpful in carrying out the research in

the similar kind of firms.

67
4.2 LIMITATIONS OF STUDY

Following are the major limitations of the study:

 It is very hard to get information from each & every individual by

filling questionnaire.

 Sometimes we can not get proper response from the respondents.

 Language also becomes barriers. Some persons can not understand

linguafranka &can not give proper response.

 It is also difficult to know whether willing respondents are truly

representative.

68
4.2 SCOPE OF FUTURE RESEARCH

Following is the scope of future research.

 Research can be conducted by following same method and by covering all

firma of Gujarat or even India.

 A comparative study of Public and Private life insurance companies can be

made by considered the services provided by them.

 A research can be conducted suggesting more effective methods of evaluating

performance of public and private limited companies.

 A research can be conducted by making the profit analysis and other financial

data of different companies.

69
4.3BIBLIOGRAPHY

REFERENCES FROM JOURNALS

Boros, Joan E. (2002). Are Convergence Products Happening? National Underwriter,

Life & Health/Financial Services Ed., (2002)

Carrow Kenneth A. “Citicorp-Travelers Group merger: Challenging barriers between

banking and insurance”. Journal of Banking and Finance 25 (2001)

Estrella, Arturo. “Mixing and matching: Prospective financial sector mergers and

market valuation”, Journal of Banking and Finance 25 (2001)

Gjertsen, Lee Ann (2002). “Insurance Agents‟ Thrift Seeks OK to Widen Reach.” The

American Banker, (2002).

Gorski, Lorraine (2002a). “The New Producers.” Best‟s Review, (2002)

Johnston, Jarrod and Madura J. “Valuing the potential transformation of banks into

financial service conglomerates: Evidence from the Citigroup merger” The Financial

review 35 (2000)

70
REFERENCES FROM NEWS PAPER ARTICLES

Aquino, Norman P. and Junia C. “Thrift Firms Join Foreign Firms‟ Lobby for

Cross-Selling Venture”. Financial Times (2002)

Bowman, Lisa. Financial Times, (2002)

Lipin, Steven and Frank, S. (1998). “One stop shopping is the reason for deal. The

big umbrella: Travelers/Citigroup merger." The Wall Street Journal, (1998)

Walker, Marcus (2002). “Germany‟s Commerzbank Is Still in No Man‟s Land.”

The Wall Street Journal, (2002)

REFERENCE FROM BOOKS

Khanka S.S., “Human Resource Management”, S. Chand & company ltd., New

Delhi, 2008.

Robbins, Judge & Sanghi, “Organisational Behavior”, Dorling Kindersley Pvt.

Ltd, Delhi, 13th edition, 2009.

Cooper & Schindler, "Business Research Methods”, Tata McGraw-Hill

Publishing Company Ltd., New Delhi, 9th edition, 2008. Bedi, "Production &

Operations Management", Oxford University Press, New

Delhi, 2004

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 CHAPTER 5

ANNEXURE

QUESTIONNAIRE

PERSONAL DATA

1. Name: fbfbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb

2. Address:

3. Sex:

Male Female

4. Phone No.: nnnnnnnnnnnnnnnnnnMobile No.:vvvvvvvvvvvvvvvvgg

5. Age: 20 20-25 25-35 >35

6. Profession:nnnnnnnnnnnnnnnnnnnnnnn

7. Educational Qualification:nnnnnnnnnnnnnnnnnnnnnnnnn

8. Marital Status: Married Single

9. If married, spouse’s profession:nnnnnnnnnnnnnnnnnnnnn

10. No. of family members: 2 3 4 >5

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RESPECTED SIR MADAM

Following is a questionnaire prepared by the project trainees regarding the awareness

of general public about Life Insurance. We would request your heartly favour to spare

some time in filling it up. Your co-operation is highly valuable.

1. Are you already attached with any life insurance company?

Yes No

2. If yes then in which kind of company are you attached?

Public Private

3. How many policies do you hold & with which company?

2 3 4 >5

4. Are you aware about the benefits of having an insurance policy?

Yes completely

Somewhat

Little bit

Not at all

5. What are your objectives of investing in life insurance?

Fixed returns

Tax benefits

Least risk investment

Retirement benefits

Safety & risk cover

6. How many life insurance companies can you list? Arrange in any

order.

Nnnnnnnnnnnnnnnnnnnnnn nnnnnnnnnnnnnnnnnnnnnnnnn

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 5. Rank the following life insurance firms as per your perception

regarding their performance.

Bharti Axannnnnnnnnnnnnnnnnn

HDFCnnnnnnnnnnnnnnnnnn

BAJAJ Allianznnnnnnnnnnnnnnnnnn

Kotak Mahindrannnnnnnnnnnnnnnnnn

Birla Sunlifennnnnnnnnnnnnnnnnn

Avivannnnnnnnnnnnnnnnnn

Tata Lifennnnnnnnnnnnnnnnnn

Reliance Life Insurancennnnnnnnnnnnnnnnnn

Max New York Lifennnnnnnnnnnnnnnnnn

Met Life Insurancennnnnnnnnnnnnnnnnn

ICICI Prudentialnnnnnnnnnnnnnnnnnn

LICnnnnnnnnnnnnnnnnnn

8. Are you aware of all the options available for paying premium?

Yes

No

9. Which mode of premium paying would you prefer?

Monthly Half- yearly

Yearly Quarterl

10. Are you aware about Life Insurance Policy of Bharti Axa?

Yes

No

74
11. If yes then where did you get to know about it?

Friends

Advertisements

Family

Visiting Agents

Telecallers

Other, specify nnnnnnnnnnnnnnnnnnnnn

12. What are your views regarding life insurance policy? (not more than 50

words.

13. If there is a free seminar informing about the benefits &prospects of

investing in life insurance company then would spare your time?

Yes

Probably yes

May or may not

Probably no

No

75