Description
Analysis is the process of breaking a complex topic or substance into smaller parts to gain a better understanding of it. The technique has been applied in the study of mathematics and logic since before Aristotle (384–322 B.C.), though analysis as a formal concept is a relatively recent development
A
PROJECT REPORT ON STUDY OF SALES PROMOTION AND ANALYSIS OF INSURANCE BUSINESS IN ING VYASYA LIFE PUNE
FOR ING VYSYA LIFE INSURANCE LTD. OF
SUBMITTED TO VSBMR IN PARTIAL FULFILLMENTOF 2 YEAR FUL TIME COURSE MASTERS IN BUSINESS ADMINISTRATION (AUTONOMOUS)
SUBMITTED BY Pawan Kumar Bhardwaj MBA (AUTONOMOUS)- II(2006-2008)
VISHWAKARMA SCHOOL OF BUSINESS MANAGEMENT & RESEARCH
PUNE 48
ACKNOWLEDGEMENT
Who does not thank for little, will not thank for much
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Thanks giving seem to be the most Pleasant of all jobs, but it is difficult when one triesto put into words. During the course of this project various person have render edvaluable help & guidance to me. I am highly grateful to MR. Saket Agrawal (Sales Manager ) who allowed me to do my summer training in their prestigious organization. My sincere thanks also extend to all the staffs of at IVL for providing a hospitable and helpful work environment and making our summer training an exciting and memorable event. My sincere thanks to (course coordinator) of VSBMR & our project guide Mr. Sunil Doke who guided me through out my project, and without their continuous help and enthusiasm the project would not have been materialized in the present form. Finally, my heartfelt thanks towards Mr. JOSHI (Director, VSBMR,) for his technical & moral support required for the realization of this project report. Finally I also wish to than VSBMR , for making this experience of summer training in an esteemed organization like IVL possible. The learning from this experience has been immense and would be cherished throughout life.
TO WHOMSOEVER IT MAY CONCERN
This is to certify that this project titled Study Of Sales Promotion and analysis of Market Insurance Business at ING VYSA LIFE INSURANCE LTD. At Pune is a Bonafide work carried By Mr. Pawan Kumar Bhardwaj student of
MBA(AUTONOMOUS) of VSBMR , Pune in the partial fulfillment for the degree of MASTERS IN BUSINESS ADMINISTRATION , S. No. 3&4, Kondhawa Budrak, Pune University of Pune. He has worked under our Guidance and Direction. His work is found to be good and complete in all respect.
Prof. Sunil Doke (Project Guide)
Dr. Shared Joshi (Director)
INDEX
CONTENTS 1 2 3 Executive summary Objective and scope Company Profile Logo Corporate Profile About IVL What is Insurance History Insurance in India
PAGE NO.
1 2 3 4 5 7 9 10 11-13
Need Reforms Insurance Players IVL Product 5 Theoritical Baqckground
14 15 19 19-40 41-47
6 7 8 9 10 11
Data Analysis Findings Conclusion
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48-56 57-58
Recommendations Bibliography Annexure
59 60-61 61-63
PREFACE
Marketing is a vital function of any organization as all the activities of any organization evolve around it. That‘s why I took up Marketing as the area of training.
Actually it is detailed idea or we can say it is a concept of functioning forever company. My basic target is to know about how marketing takes place in any organization and how can it be useful to it.
The project which I got was Study Of Sales Promotion and analysis of Market Insurance Business at ING VYSA LIFE INSURANCE LTD., Pune this project helps me to gain insight to what actually takes place in marketing and what are the various product, price, promotion and distribution strategies adopted by an organization to reach its customer
Pawan kumar Bhardwaj
EXCUTIVE SUMMURY
The successful development of new service has become a complex process involving contributions from range different disciplines. Rarely is one individual responsible for the conception design, development and marketing of new service, for today the inherent complexity of products, their markets and therefore their processes through which they developed, dictates that a no. of different people, each which there own roles, work together to crate the service. This project represents a information regarding company s brand awareness and the customer perceptions about the various services which the organization provides. The main objective of the project is to understand the customer investment preferences more effectively and efficiently. For execution of the project methodology adopted is the collection of data through questionnaire, processing and analyzing the data. The natures of respondent, which are selected, are the professionals and having a handsome salary. The area of the project work is Pune city and its location where the survey has been undertaken those are Tilak Road , F C Road , Pune Satara Road, Upper Indra Nagar, NIBM Road and kalyani Nager IVL Investment is joint
Venture service provider offering a range of investment services depending on the customer requirements , giving the save returns after the Maturity Period ,and cover the life .The methodology for carrying out the project was very simple that is through secondary data obtained through various mediums like fact sheet of the funds, the Internet, Business magazines, Newspaper, etc. The funds have been analyzed under various types such as Equity Funds, Income Funds and Balance.
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OBJECTIVE OF THE PROJECT
The project was undertaken to make people aware of the insurance agent as a career. With so many players in this industry and growing competition among the private players it was actually tough getting people recruited as an agent.
The main aim of the project was the following:1. To manage the sales force at IVL.
2. To explore the role of sales manager.
3. To get an instant overview of the insurance industry, its perspective, present scenarios and the competitors.
SCOPE:The study of potential of insurance business is concerned with market study i.e. research and fieldwork. This study is going to help the ING VYSYA Life Insurance to find out Sales promotion with other private companies. The study will help the company to assess their performance and improve it where it is lacking. Research work is a basic function carried out by each organization. The study of market potential of insurance is very helpful to find out who are the market leaders in private companies as well as overall analysis. Availability of time was also taken into account while deciding the particular method to meet the objectives. The entire study programmed was for the period of two months. The subject of the study was selected by looking the necessity and importance to find the market potential and give suggestions related to the topic. 2
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LOGO
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CORPARETE PROFILE ING GROUP
• • • • • • • • • • • • • • ING group more than 150 year old . Over Rs. 20,00,000 crore in assets – which is over 176% of over national GNP. Operating in 65 countries worldwide . The largest financial services company in the world. Ranked 13 th in the global 500 companies . ING GROUP - INC. 1991 by merger between national – NEDERLAND & POSTBANK group . Headquarters in Amsterdam , the Nederland . Banking ,leasing, insurances , and asset management business . World largest life insurances company with annual revenues of $ 82,699 mn . Fourth largest financial services company in the world . Among the top 50 organization in the world based on profits . 50 mn customer worldwide . More than 1,00,000 employee . Asset under management – over $ 685 bn .
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ING Vysya Life Insurance
• • • • • • A joint venture that brings together ING insurance , the largest life insurance company in the world . The Vysya Bank , one of India ‘s largest private sector bank in India . 49 % stake in vysya bank Access to a network of 480 vysya bank branches in India Operation in all metro & soon launching operation in 25 other cities of key Important
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ABOUT ING VYSYA LIFE INSURANCE COMPANY LIMITED
ING Vysya (a group terminology) has 3 businesses in India, ING Vysya Life Insurance, ING Vysya Bank and ING Vysya Mutual Fund. ING Vysya Bank is a premier private sector bank with a 70-year heritage and 1.5 million satisfied customers. ING Vysya Mutual Fund is a mid sized asset management company with a retail investor focus.
ING Vysya Life Insurance Company Limited (the Company) entered the private life insurance industry in India in September 2001, and in a span of 5 years has established itself as a distinctive life insurance brand with an innovative, attractive and customer friendly product portfolio and a professional advisor sales force
It has a dedicated and committed advisor sales force of over 21,000 people, working from 140 branches located in 74 major cities across the country and over 3,000 employees. It also distributes products in close cooperation with the ING Vysya Bank network. The Company has a customer base of over 4,50,000 & is headquartered at Bangalore. In 2005, ING Vysya Life earned a total income in excess of Rs. 400 crore and also has a share capital of Rs. 440 crore.
7 The Company aims to make customers look at life insurance afresh, not just as a tax saving device but as a means to add protection to life. The one thing we hold in highest esteem is 'life' itself. We believe in enhancing the very quality of life, in addition to
safeguarding an individual's security. Our core values are therefore defined as Professional, Entrepreneurial, Trustworthy, Approachable and Caring. The Company’s portfolio offers products that cater to every financial requirement, at any life stage. We believe in continuously developing customer-driven products and services and value being accessible and responsive to the needs of our customers.
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WHAT IS INSURANCE?
All assets have economic value. The asset would have been created through the efforts of the owner, in the expectation that, either through the income generated there from or some other output, some of his needs would be met. In the case of a motor car, it provides comfort & convenience in transportation. There is no direct income. There is a normally expected life time for the asset during which time it is expected to perform. The owner, aware of this, can so manage his affairs that by the end of that life time, a substitute is made available to ensure that the value or income is not lost.
However, if the asset gets lost earlier, being destroyed or made non-functional, through an accident or other unfortunate event, the owner & those deriving benefits there from suffer. Hence Insurance is a tool which helps to reduce effects of such adverse events
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HISTORY OF INSURANCE
The origin and practice of insurance is as ancient as human civilization.From Cave age till date, the story of evolution of mankind is in fact a saga of continuous search for security. His problems have been the same, though the form has changed with the social & economic circumstances. When man used to live in the caves, he used to search for security against animals because they could kill him while he was asleep. He was not at all sure if he could hunt every day & get his food. Because of the above insecurity he used to live in groups so that the other members of the tribe could come to help him in time of crisis. Later on, insurance was practiced in a different form. Small contributions of food grains were collected from farmers, hoarded in the local temple premises to be released when there was a famine or other calamity. Today, insurance works on the same principle. But, with growing financial implications the process started demanding money rather than community contribution. The modern concept of insurance came to India with the arrival of Europeans. The first life Insurance company was established in India in 1818 as Oriental Life Insurance Company by Europeans for the welfare of widows of Europeans. It was strange that many of the Companies floated thereafter were looking after European interest and even charged extra premium on Indian lives. Bombay mutual life Assurance society Ltd. established in 1870 was the first to stop this discrimination. This was the year in which the first Insurance act was passed by the British parliament. The insurance business flourished thereafter.
By the year 1955 there were 245 insurance companies and provident societies, out of which 16 were non Indian companies. A comprehensive legislation "The Insurance act 1938" was passed with a view to consolidate and amend the laws relating to the business of insurance. It came into force with effect from July '01, 1939.The act was modified in 1950. 10 The broader objectives of socialism prompted the government to nationalize the insurance business, in the year 1956. The general insurance business was nationalized in 1972, through GIC Act 1972. The Life Insurance corporation of India came into existence on 1st September 1956.
INSURANCE IN INDIA
The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.
A BRIEF HISTORY OF THE INSURANCE SECTOR
The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulatethe life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 11 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,
1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up1972: The General Insurance
12 Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.
NEED OF INSURANCE
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To provide cash to meet various routine expenses of the family on Or immediately after the death of the income earner of the family.
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To prevent the family s accustomed standard of living even after the death of the breadwinner.
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To provide continuous flow of funds for the living spouse.
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To allocate income funds for the children s education.
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To provide a retirement income throughout old age.
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To provide a reliable savings plan for the future.
13 • To supplement income when earning power is reduced or eroded by illness, accident or any handicap. • To furnish surplus earnings for the investors should disaster strike
INSURANCE SECTOR REFORMS
In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms In 1994, the committee submitted the report and some of the key recommendations included:
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i) Structure
• •
Government stake in the insurance Companies to be brought down to 50% . Govern.\ment should take over the holdings of GIC and its subsidiaries so that .
• •
these subsidiaries can act as independent corporations . All the insurance companies should be given greater freedom to operate
ii) Competition
• • • • • Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry No Company should deal in both Life and General Insurance through a single entity Foreign companies may be allowed to enter the industry in collaboration with the domestic companies Postal Life Insurance should be allowed to operate in the rural market Only one State Level Life Insurance Company should be allowed to operate in each state
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iii) Regulatory Body
• • • The Insurance Act should be changed An Insurance Regulatory body should be set up Controller of Insurance (Currently a part from the Finance Ministry) should be independent
iv) Investments
• •
Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50% GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time)
v) Customer Service
• • •
LIC should pay interest on delays in payments beyond 30 days Insurance companies must be encouraged to set up unit linked pension plans Computerization of operations and updating of technology to be carried out in the insurance industry
16 The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry.
Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose it had proposed setting up an independent regulatory body.
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THE INSURANCE PLAYERS
Licenses have been issued for the following companies
1 2 3 4 5 6 7 8 9
Life Insurance Co.Ltd ING Vysya Life Insurance Company Limited Reliance Capital (Life Insurance) Kotak Mahindra Old Mutual Life Insurance Limited ICICI Prudential Life Insurance Company Limited HDFC Standard Life Insurance Company Limited Birla Sun Life Insurance Company Limited TATA AIG Life Insurance Company Limited Max New York Life Insurance Company Limited
10 SBI Cardiff Life Insurance Company Limited 11 Bajaj Allianz Life Insurance Company Limited 12 MetLife Life Insurance Company Limited 13 Aviva Life Insurance Company Limited 14 Bharti AXA Life Insurance
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ING VYSYA Life Insurance’ s ING VYSYA Endowment Plan is the key to all your financial needs. It is an inexpensive and easy way to protect you, your family or your business.
In a nutshell this plan will keep you financially prepared for all the special occasions in your life - your daughter s wedding, your child s university education or even a new office for your business - by eliminating the burden that a shortage of money creates.
In the event of your untimely death, ING Endowment Plan will also assist your loved ones through this difficult time by the financial support that it provides.
ING VYSYA Endowment Plan also gives you the additional benefit of participating in the company s profits, which you will receive at the end of the policy period.
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ING LIFE PLUS
This Plan simplifies the process of taking unit linked insurance. You can choose a convenient policy term of 10, 15 or 20 years. Its regular premium payment for the full
policy term enables you to get the benefits of systematic investment by paying your premiums at pre determined intervals throughout the policy term.You can also plan your investments to suit your preferences and risk profile.
The regular premiums and top-up premiums paid by you, less charges are credited to an account called the ‘Fund Value’ and are used to purchase units in one or more Unit Linked Funds as per your choice. At any point in time, the Fund Value is represented by the number of Units multiplied by the respective Unit Price of the Units held from time to time under all the Unit Linked Funds under this Policy
ING Life Plus is the easiest way of taking unit linked insurance. While it allows you to invest and manage your investments at your own pace as per your risk profile, its inbuilt Enhanced Protection Cover feature ensures that your life cover keeps increasing throughout the policy term and ensures that you and your family are well protected.
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Key Features •
You have the option of enhancing your cover at the end of the first and second
year of taking your policy .
21 • • • You need not undergo any medical examination to avail of this plan. Even the
Paperwork is minimal You can also avail of a policy loan after 3 years . You get a tax benefit under Section 80C & 10(10)D of IT Act .
• • •
On survival up to the maturity date, you get the sum assured plus accumulated
Bonuses. You can switch over your fund . In case of unfortunate death, your nominee will get the sum assured plus
Accumulated bonuses.
MARKET RETURN PLAN
You have always aspired for the best in life. And we help you achieve just that. With IVL Market Return plan you can have the twin advantage of insurance protection as well as reaping the benefits of investment growth. It is a flexible plan which works all through your life and meets the changing requirements like additional protection, liquidity through cash, option to invest in different asset class, steady golden years and many more.
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Kay Features – ING Market Return Plan :
• • • • • • • • •
Twin benefit of market linked return and insurance protection A Unit Linked Plan, different form traditional Life Insurance products, with maximum maturity age of 65 years Option to create your own portfolio depending on your risk appetite Choose form 5 different investment funds Flexibility to switch between funds Option to pay regular as well as single premium & Top-ups Option to package with Accidental riders Flexibility to increase the Sum Assured Liquidity through partial withdrawals
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How does this Plan work?
Ing life plus gives you complete flexibility to plan for your finances. you can decide how long you want to pay ,how much you pay ,the frequency of payments that you would make each year and so on..
Flexibility in premium and frequency
Minimum : yearly Rs. 10,000, half –yearly: Rs.5,000, quarterly : Rs. 2,500, monthly : Rs. 833 . Maximum : Rs 4166 . yearly Rs.50,000 half- yearly :Rs 25,000, quarterly :Rs 12,500, monthly :
The premium made net of Premium Allocation Charges by you is invested in fund/funds of your choice and units are allocated depending on the price of units for the fund/funds.
The value of your Unit Account is the total value of units that you hold in the fund/funds. The Mortality Charges and Policy Administration Charges are deducted through cancellation of units whereas the Fund Management Charge is priced in the unit value.
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Benefits
Life Cover Benefit: You can choose the basic Sum Assured within the minimum and maximum levels mentioned below
Minimum Sum Assured:
Regular Premium: Annualized Premium for 5 years or for half the Policy term Single Premium: 125% of the single premium Maximum Sum Assured: No Limit (Rs 500,000 for age up to 12 years)
In case of unfortunate loss of life, your Beneficiary will get sum Assured or Unit Account Value whichever is higher.
Maturity Benefit: On survival, at maturity the value of your Unit Account will be paid out.
Rider Benefit: You can add the Accidental Death & Accidental Total and Permanent Disablement Benefit Rider (available only with regular premium option).
This benefit doubles the life coverage in case of accidental death or accidental total and permanent disablement at a very nominal additional cost. The maximum cover is Rs. 50,00,000 per life.
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In case of accidental total and permanent disablement, 1/10th of the Sum Assured will be paid at the end of each year for ten years. If the total and permanent disablement has commenced, the Accidental Death Benefit Cover ceases. In case of maturity or on death of the Assured, after payment of installments of Accidental Total and Permanent Disablement Benefit, the remaining unpaid installments if any will be paid in one lump sum.
Accidental total and permanent disablement means disability caused by bodily injury, which causes permanent inability to perform any occupation or to engage in any activities for remuneration or profits. This disability should last for at least 6 months before being eligible for Accidental Total and Permanent Disablement Benefits.
Total and permanent disablement includes loss of both arms or both legs or one arm and one leg or of both eyes. Loss of arms or legs means dismemberment by amputation of the entire hand or foot. Loss of eyes means entire and irrecoverable loss of sight.
Exclusions to Rider Benefit
ING VYSYA Life Insurance will not be liable to pay any Accidental Death Benefit Claim or Total and Permanent Disablement Claim which results directly or indirectly from any one or more of the following:
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An act or attempted act of self injury. Participation in any criminal or illegal acts. Being under the influence of alcohol or drugs. Racing or practicing racing of any kind other than on foot . Flying or attempting to fly in, or using or attempting to use, an aerial device of any description, other than as a fare paying passenger on a recognized airline or charter service. Participating in any riot, strike or civil commotion, active military service, naval air force , police or similar services or War, invasion, act of foreign enemies, hostilities or war like operations (whether war be declared or not), civil war, mutiny, military rising, insurrection, rebellion, military or usurped power or any act of terrorism.
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What are the different fund options?
ING VYSYA Life Insurance understands the value of your hard earned money and in our endeavor to help you grow your wealth, we offer you 4 different tailor-made investment funds. You have the option to allocate your premium in these funds as you wish. The four different funds offered are
1. Secure Fund:
The investment objective of this fund is to maintain the value of all contributions (net of charges) and all interest additions. This Fund offers steady return for very little risk. The risk profile of this fund is low. Your funds are invested 100% in Bank Deposits, Government Bonds and debt instruments that offer financial security.
Further, investments in Secure Fund are subject to a maximum limit of 20% at inception.
2. Balanced Fund:
The investment objective of this Fund is to provide you with investment returns which exceed the rate of inflation in the long term while maintaining a low probability of negative investment returns. In this fund, a major portion of your funds are invested in fixed securities while a small percentage is invested in the equity market, which is exposed to market movements. The risk profile of this fund is low to medium. Investment would be at least 60% in fixed interest securities and maximum 40% in equities.
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3. Growth Fund:
The investment objective of this Fund is to provide you with investment returns which exceed the rate of inflation in the long term while maintaining a moderate probability of negative investment returns. This fund offers a greater portion of your funds are invested in fixed securities while a small percentage is invested in the equity market, which is exposed to market movements. The risk profile of this fund is medium to high. Investment would be at least 40% in fixed interest securities and maximum 60% in equities.
4. Equity Fund:
The investment objective of this fund is to provide Policyholders with high exposure to equities and the possibility of investment returns which Generate a high real rate of return in the long term while recognizing that there is a significant probability of negative investment returns in the short term. This fund offers a totally equity based investment option. Your returns depend entirely upon the performance of the equity market. The risk profile of this fund is high. The higher risk of this portfolio means that expected returns would also be higher. Investments would not exceed 30% in Bank Deposits and may be 100% in equities.
5.Debt fund
The investment objective of this fund is to provide safety and growth with minimum risk . and when it come to investment pattern 100% of the available fund are invested in debt instrument .
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Value of Units: The unit price of each Fund will be the unit value calculated on a daily basis.
Total Market Value of assets plus/less expenses incurred in the purchase/sale of assets plus Current Assets plus any accrued income net of fund management charges less Current Liabiliti Unit Price = Less Provision Number of units on issue (before any new units are Allocated /redeemed)
TAX BENEFIT
Premiums paid are eligible for tax deduction under Section 80C of the Income Tax Act, 1961. Provided the premium in any years during the term of the Policy does not exceed 20% of the Sum Assured, maturity and withdrawals are eligible for tax benefit under Section 10(10D). Death benefit are tax free under Section 10(10) D of the Income Tax Act, 1961. Under Section 80C premiums up to Rs 100,000 are allowed as deduction from your taxable income.
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GENERAL EXCLUSION:
If the Life Assured, whether sane or insane, commits suicide within 12 months from the date of issue of this Policy or the date of any revival of a Policy, the Company will limit the death benefit to the value of the Unit Account and will not pay any insured benefit.
15 day free look period
The Policyholder may cancel this Policy by returning it to the Company within 15 days of receiving it together with a letter requesting it be cancelled. The Company will refund the premium paid by the Policyholder less a deduction:
of the proportionate premium for the time cover has been provided till cancellation of expenses incurred by the Company for medical examination of the Life Assured, Stamp Charges and expenses incurred in that connection.
Please note that ING VYSYA Life Insurance Company Limited is only the name of the insurance Company and Reliance Market Return Plan is only the name of the unit Linked life insurance Policy and does not in anyway indicate the quality of the Policy or its future prospects or returns. Prohibition of Rebate: Section 41 of the Insurance Act, 1938 states:
1) No person shall allow or offer to allow, either directly or indirectly, as an Inducement to any person to take out or renew or continue an insurance in respect of any kind of risk
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relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the Policy, nor shall any person taking out or renewing or continuing a Policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer.
2) Any person making default in complying with the provisions of this section shall be punishable with a fine which may extend to five hundred rupees. Insurance is the subject matter of solicitation
UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICY HOLDER.
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IVL PRODUCTS PLANS FIT FOR EVERYONE
IVL Endowment Plan
1. Part of ING Group, can be trusted. 2. High Returns and Life Security. 3. More value for money.
ING Safal Jeevan Money Back Plan
How does this plan work ? Safal Jeevan Money Back plan is ideal if you are planning to take your first life insurance policy. It offers you protection in an easy, hassle-free way and helps you secure your goals and dreams despite the odds. All you have to do is to choose a suitable policy term from 'pre-packaged' solutions, and allows you to decide how much and how long you want to pay premiums. The plan ensures an easy and hassle free process, yet offering you a comprehensive protection and savings proposition with coverage terms of 16 and 20 years. Premium is payable annually, half yearly and quarterly. Bonuses declared are non-guaranteed and are based on the company’s performance.
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Feature
1 . under this plan you will get life insurances cover a chosen sum assured during the policy term(this plan is 15 year plan / 20 year plan ) 2 . Maturity Benefit: Get 40% of the Sum Assured, with reversionary bonuses* on maturity 3. Survival Benefit: Get 20% of the Sum Assured in three equal installments every 1/4th of the policy term and 40% on maturity
ING Creating Star Plan ( chilled plan)
ING Vysya Life Insurance’s Creating Star, gives you the opportunity of fulfilling your child’s need for quality education. This offers you a systematic and hassle free way to Pre-fund your child’s education program by paying premiums regularly and securing your child’s education fund by protecting future premium payments against unfortunate circumstances.
1. Providing for future goals of children-education or marriage. 2. Lump sum payments at appropriate times-not related to age of child. 3. Four regular guaranteed payments-last 4 years of policy term. 4. On death of life assured, future premiums waived. 5. Policy participates in Profits- simple bonus at end of policy term. 6. Minimum policy term-5 years- we can get payment from 2nd year if wanted.
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ING positive life plus
Feeling positive about life is now so easy! ING PositiveLife is a flexible plan, customised to suit the needs of an individual customer anywhere from the ages of 0 to 50 years. It allows the customer to enter the plan for as low as Rs. 834/- per month. The convenient policy terms of 10, 15 or 20 years allows one to match their life goals to the policy terms. There is flexibility of premium paying term from a minimum of three years to the policy term.
This Plan simplifies the process of taking unit linked insurance. You can choose a convenient policy term of 10, 15 or 20 years. Its regular premium payment for the full policy term enables you to get the benefits of systematic investment by paying your premiums at pre determined intervals throughout the policy term.You can also plan your investments to suit your preferences and risk profile.
Feature
1. Limited Premium Payment . 2. Flexible investment options . 3 . Systematic Investment benefit .
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ING Freedom plan
Freedom means many things to many people. But there are some things in life that cannot be compromised - your work, financial future and the longterm security of your loved ones. What you need is an investment plan that allows you to customise it to your needs, investment goals and the lifestyle you prefer. And an ING Vysya Life Plan does just that by allowing you to customise your plan - be it the extent of life cover, premium amount, frequency, and the type of investments to suit your risk profile - setting you free from financial limitations and helping you realise your aspirations.
The ING Vysya Life New Freedom Plan has in-built customisable features that offer you freedom, flexibility, and much more. So you now have complete flexibility to plan your finances, decide how long you want to pay, how much to pay, the extent of insurance cover, the frequency of payments that you would make each year and so on. The ING Vysya Life New Freedom Plan offers you so much more as a life cover, in terms of flexibility and customising your investments, that you will come to realise what real freedom means, from a financial perspective.
Feature
The plan comes with its own three unique features: • Protection Benefit: Customise the amount of life cover that suits your needs and thereby, enjoy maximum protection.
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• Survival Benefits: Avail survival benefits up to 4 times after completion of 10 policy years, in addition to receiving maturity benefits when you reach the age of 70.
• Manage your investments: Choose from five investment options Debt fund, Secure fund, Balanced fund, Equity fund and Growth fund. Review the performance of your investments and switch between plans or top up with additional funds.
ING The Best year Retirement PLAN
As the name suggests, this plan can ensure that your post-retirement years are spent in peace and comfort. And it extends the same comfort to your family by standing as a financial asset, in case you are not around. This long-term investment plan can truly ensure the best years of your life.
Key Features
• • • • • .Investment Amount And Returns Declared Are Guaranteed . Steady Returns With 80 CCC Balanced Fund . Flexibility in Fund Accumulation . Lower Management Fees . Lower Minimum Contribution Limit
37
Benefits
Capital Guarantee:
Your contributions are transferred to your Individual Pension Amount(IPA). Charges as applicable will then be deducted. .The balance in your IPA will be invested in the ING Vysya Capital Guarantee Plan.
Flexibility:
To chose the regular contribution to be made each year. • • • With regard to timing and frequency of contributions . To start the pension whenever you wish. . To postpone the retirement date to make best use of market conditions.
Premium
Premium will be paid by way of deduction from the IPA on each due date.
Tax Benefit
Under Section 80 CCC. Any lump sum received at chosen retirement date or on death is exempted from tax, under Section 10(10A) of the IT Act.
38
ING NEW FUTURE PERFECT PLAN
How does this Plan work ?
The ING Vysya Life New Future Perfect Unit Linked Plan has been carefully put together to enable you get the maximum benefits from your investment plan. It not only provides you with flexibility in terms of premium amounts and frequency, but also offers you an investment opportunity that’s just perfect for your long-term financial future. The ING Vysya Life New Future Perfect Unit Linked Plan offers you flexibility in terms of how much you want to pay, how often you want to pay and the choice of investment pattern. After all, what you are looking for is not just life cover but something that covers all of what life has to offer
features:
• Protect your Future: Even after retirement, you and your family are well
provided and protected with continued life cover. • Survival Benefits: Apart from the regular yearly systematic withdrawal benefits starting from age 60 till 80, you will also receive maturity benefit at the age 80. • Manage your investments: You can choose from any of the five investment options - Debt, Secure, Balanced, Equity or Growth Fund, depending upon your appetite for risks and returns. Review the performance of your investments and switch between the plans or top up with additional funds.
39
ING New fulfilling Life Plan
The New Fulfilling Life Plan is a unique plan that fulfills your need for protection, saving and investment. It gives a double benefit of a whole life cover along with regular cash returns in your lifetime. The Fulfilling Life Plan provides your family security even after your death, apart from giving you regular cash returns during your life. The special feature of this plan is you may receive double the Sum Assured. The first 100% as money back spread over the premium payment term and the remaining 100% on death or maturity. You can also choose from a range of limited premium payment terms. Bonuses declared are non-guaranteed and are based on the company’s performance.
40
THEORITICAL BACKGROUND TARGET CUSTOMER
The target respondents were selected from different sources like :1. Housewives 2. Owner of beauty parlors 3. Agents of other insurance companies 4. Travel agents 5. Real estate consultant 6. Investment companies 7. Chartered accountants 8. Advocates 9. Developers and contractors 10. Chemist 11. Shop owner
41
DISTRIBUTION
ING VYSYA Life Insurance has one of the largest distribution networks amongst private life insurers in India with has a dedicated and committed advisor sales force of over 21,000 people, working from 140 branches located in 74 major cities across the country and over 3,000 employees. It also distributes products in close cooperation with the ING Vysya Bank network. The Company has a customer base of over 4,50,000 & is headquartered at Bangalore. In 2005, ING Vysya Life earned a total income in excess of Rs. 400 crore and also has a share capital of Rs. 440 . ING Vysya Life Insurance Company Limited (the Company) entered the private life insurance industry in India in September 2001. Due to well Distribution the growth of Insurance sector of IVL will catch the market very fastly in coming days as compare to any other Insurance company .
42
RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact research is an art of scientific investigation. Redman and Mory define research as a systematized effort to gain new knowledge . Some people consider research as a movement, a movement from the known to the unknown. It is actually a voyage of discovery. Research is an academic activity and as such the term should be used in a technical sense. As such the term research refers to the systematic method consisting of enunciating the problem, formulating a hypothesis, collecting the facts or data, analyzing the facts and reaching certain conclusions either in the form of solutions towards the concerned problem or in certain generalizations for some theoretical formulation. In IVL the research work which has been done by me are basically of two types. That are
1. Applied
2. Fundametal
1. Applied:-
Applied Research aims at finding a solution for an immediate problem facing a society or an industrial business organization. Thus the central aim of applied research is to discover a solution for some pressing practical problem. I have done project in RLI and I had found out some problem while meeting or talked to people. Convincing people is one of the most toughest job what I found out. When I had talked to people then the main problem what I had faced that people didn t had any time to talk with me and they were looked more busy. But still I had got some data from the people who were interviewed by me in the different places and they really cooperated with me and helped me a lot. 43
2. Fundamental:-
Fundamental Research is mainly concern with generalizations and with the formulation of a theory. Research concerning some natural phenomenon or relating to pure mathematics are example of fundamental research. When I had done fundamental research then I had got some ready-made data by which I had done the data analysis and try to expose the performance of the the policies whichever is being offered by my company.
METHODOLOGY
The first thing that a financial consultant has to do is to deal with the customers coming into the bank for other banking services and interact with them freely to make them aware about the kind of services being offered at the investment desk of the branch. This help them in creating their own databases.
Secondly the people who shows interest in investing but express difficulty for going for investments has to be taken care of by giving them various options of systematic investment plans and thus mitigating their difficulties as well as gaining goodwill.
A telephonic conversation often helps us when somebody ha to be counseled but is unable to come to bank. Through this method appointment is fixed according to the convenience of the client and financial service is delivered to him or her.
44
On certain occasions we also do get chances to visit and camp at important corporate offices where we think that is the home ground of interested people. This has helped us to gain exposure in multi corporate environment.
Database given by the organization itself helped us sometime when we had to expand our clientele base to get good results.
This
methodology helped
us
to
enhance
our
own
confidence
to
in
the
corporateenvironment and also remain updated about the current market scenario in the financial sector. In this project report I am explaining in detail the knowledge that I gained while doing the internship and the research I have been able to do. I am giving detail explanation about the mutual funds, insurance, gold, initial public offer and finally have made comparative study of some products and the extent objective of the project is being achieved.
45
PRIMARY DATA ANALYSIS
I have collected primary data during the course of doing experiments in an experimental research but in case I do research of the descriptive type and perform surveys, whether sample surveys or census surveys, then I have obtained primary data through :-
1. Observation.
2. Direct communication with the people.
3. Through personal interviews.
4. Cold calling
5. Tele calling
1. Observation
Observation is a kind of process by which with the help of people s face reading and looking at his personality I tried to understand that the profile is good or bad and is that person really beneficial for the company or not.
46
2. Direct
Communication
With the help of direct communication i.e. direct talk to people I have tried to Make him understand that what are our policies and all plans are very flexible. At the time of interactions have tried promote my company and also tried to motivate that people to grasp that opportunity whatever we are offering.
3. Personal
Interview
With the help of this process I have tried to explore that profile and tried to scan that person s quality and also his/her selling ability.
4. Cold
Calling
In this part I have explained our offering to the persons whom I have met in my way and also try to make him convinced that our offerings are superior than other.
5. Tele
Calling
At the time of telecalling as the term referred that I used to call the persons whose data I was being got from the company s database and tried to fix up an appointment with that person and after that I used to meet that profile. After meeting that person I used to make him understand our offering and try to convince that person.
47
DATA ANALYSIS RESPONDENT OF CATEGERIES
Total No. of Respondent
120
Categories
No. of Respondent
Businessman Serviceman Student
49 29 45
35%
41%
BUSINESSMAN SERVICEMAN STUDENT
24%
48
Findings
Whenever I had surveyed the categories of the respondents then I had found that there are more no. of respondents who are Businessman.these qualification is more than graduate and 12th pass is the minimum criteria for becoming a financial advisor it is a good respondent base in pune area. The percentage of Businessman respondent is 41 % and the percentage of graduate serviceman are 24 % .and percentage of student respondent is 35% . the total respondents are more people are eligible for becoming a financial advisor. So it is a good potentiality in the market place.
Preferences of respondent in Insurances Company
Total No. of Respondent
120
Name of insurance company
No. of respondent
LIC HDFC Standard Life ICICI Prudential Bajaj Allianz Life ING VYSYA life
44 29 18 15 14
49
12% 13% 36% LIC HDFC Standard ICICI Pro 15% 24% bajaj allianz ING Vysya
Whenever I had surveyed preferences of insurance company of people about ING VYSYA Life Insurance then I had found that there are more no. of respondents who are aware about LIC. ING VYSYA Life Insurance has got the acceptance of only 24% as we all know that it is 6 year in the market place. Still the rural people are not aware about ING VYSYA LIFE . Because until now it is unable to penetrate in rural India.
Best sector for investment
Total No. of Respondent
120
Sector Mutual Fund Share Insurance Tax planning / F.D. Fix Deposit
No. of Respondent 54 23 27 9 7
4% 19%
9% mutual fund 45% insurance share FD tax planning 23%
Finding
Now a days there is a question in people s mind that what will be the best sector for Investment. There are various sectors for investing money. I had surveyed the thing and came to the decision that the people really like mutual fund first and then they like Insurance .
The acceptance of percentage in case of mutual fund is 45% and in insurance sector it is 23%. So as mutual fund is one kind of investment insurance companies should have to more emphasize on the investment plans.
51
Suitable media for financial service
Total No. of Respondent
120
Media
Magazine News paper TV/Radio Agent other
Respondent
14 23 29 43 11
12% 36% 19% magazine news paper TV/ Radio other agent 9% 24%
52
Finding
There are various media by which insurance sector can grow. I had done a survey on that and come to the conclusion that financial advisors or agents are the main media for the growth of the insurance sector. The survey said that Agents comprises of 36 % of the media is concerned. So the roles of insurance advisors are very important in insurance business so recruitment should be done in a continuous proces
Various Reason why Not to invest money
Total No. of Respondent
120
Reason
High Risk Lack of knowledge Previous loss Lack of financial planning
N0. of respondent
21 54 27 18
15%
18% high risk lack of knowledge previous loss lack of finacial planning 44%
23%
53
Finding
When I had visited to talk with the people and tried to emphasize the plans then various factors come to people s mind. There are n number of reasons for that people are not investing money in the private sector.
After doing the survey I had come to the conclusion that lack of knowledge is the most important factor for which the people are not investing money. The percentage of lack of knowledge is 44% .So I think the top level officers of the IVL has to take necessary measures to increase the people s knowledge regarding the insurance, and investments.
Best month for investment
Total No. of Respondent
120
Month April – June July- September October –December Jan – march
Respondent 31 22 19 58
54
16% 42% 19% april-june july-Sept. Oct. - Decm. jan-march 23%
Finding
The survey says that people are interested in the period of January to March and in the period of October to December. The maximum amount and number of investment was being done at this month period. And the percentage shows that it is 65 % when we had combined the data result in both the month.
In these month period the people are involved in paying the tax and for that they do need investment. That is the main reason for good business in those month period.
Accepted plan
No. of Respondent
120
Plan child plan
No. of Respondent 31
Pension plan Investment Saving
18 57 14
15% pension plan child plan money back plan 26% 12% Investment
47%
Finding
There are various kinds of plans which are being offered by IVL and the more accepted plans are investment plans. As per as the survey is concerned investment plan comprises of 47 % of the total part.
From this we can understand that the acceptance level of the investment plans. Because of the high return these plans are really popular.
56
FINDING:
During my project I have found out various things by which I have learned a lot. As insurance is one of the toughest sectors in business world and we are the dream sellers in the industry because we never give the customers return in that very day we are assuring some amount so it s all about faith on we people which customers are suppose to do.
General View
I. Reliance Industry just take step in life insurance company is just lunch Its insurance sector in Feb 06. II. Less number of branches in Maharashtra and outside of Maharastra there is almost nothing. III. Promotional tools which are being used are not so much effective. IV. People don’t rely upon private insurance sector. V. Customers are much more rely upon LIC. VI. Less customer awareness regarding this RLI. VII. It still not penetrate in rural area. VIII. Product variety is very less. IX. All products are not attractive to the customers so that kind of products are very hard to sale. X. Investment plans are very less, that s why people are not accepting the products. XI. Competitors are very tough. XII. Brand name helped quite a lot to the company.
Negative view
1. Customers are much more rely upon LIC. 2. People don t rely upon private insurance sector. 57
3. Competitors are very tough. 4. All products are not attractive to the customers so that kind of products are very Hard to sale. 5. Less number of traditional plans that s why people who really need traditional Plans are still not getting their things.
Positive view
1. Brand name helped a lot while financial advisors are opting for calling. 2. Branches are almost everywhere. 3. They penetrate in rural segment quite effectively. 4. Higher level of advertising and all are very effective 5. Advertising through all media.
CONCLUSION
ING VYSYA LIFE INSURANCE Company Limited is a part joint venture of ING Bank and Vysya Bank . ING Insurance , the largest life Insurance company in the world. theVysya bank , one of India ‘s private bank sectore bank India . ING group fourth lagest financial services company in the world .ng companies, in terms of net worth. IVL asset management and mutual funds, stock broking, life Insurance , proprietary investments, private equity and other activities in financial services. IVL sees immense potential in the rapidly growing financial services sector in India and aims to become a dominant player in this industry and offer fully integrated financial services.
58
RECOMMENDATIONS
Given the current level of dissatisfaction experienced by customers, it is time Reliance Life Insurance concentrated on providing high quality services for differentiating their offerings. Some areas on which they should concentrate immediately are:-
1. Gear up sales services particularly those that will help in reducing customer anxieties. 2. Simplify documents wherever necessary, without loosing control. 3. Enhance post sales services in such areas as sending all renewal notices in time, Expeditious settlement of claims and refunds etc. Customize products to cater to the needs of each individual. 4. Emphasize with the customers. Employees coming in contact with customers must show courtesy and good behavior.
To deliver the above, will need to build the suitable organization with an appropriate management system, optimum physical infrastructure and a culture of innovation, productivity and customer-orientation that will enable them to survive and grow in exciting and fast growing line of personal insurance.
BIBLIOGRAPHY
Referance book and internet sites name are
re licensing Agents Training Book (Insurance Institute of India) IC33 Life Insurance S. Bal Chandran (Insurance Institiute of India) Life and Health Insurance Kenneth Black Marketing Management by Philip Kotler Websites:Yahoo.com IRDA.com, Google.com 59
ANNEXURES Questionnaires for research Leaf let of products
QUESTIONNAIRE
NAME: ____________________________________________________
AGE: _______ SEX: __________
ADDRESS-:____________________________________________________ _____________________________________________________________
E-MAIL:_____________________________________________________
Tick any one answer.
1) Are you preferences of ING VYSYA LIFE INSURANCE ?
YES
NO.
If NO, are you aware of any of following Life Insurance Company? a. LIC b. ICIC Pro. c. Bajaj Allianz
d. HDFC Life Insurance
60 2).What is CRETARIYA?
a. Businessman
b. Serviceman
c. Student
4)From which media you come to know about Financial Services Magazine Newspaper TV Radio Interest Agents Franchisee Hoardings Friends Others
5) Would you like to invest in Financial Sector?
Yes Go to (6) No Go to (7)
6) Which Financial Service you will prefer to invest and why? INSURANCE MUTUAL FUNDS TAX PLANNING 61
BONDS/FD 7) Reason Being: High Risk Lack of Knowledge Previous Loss Lack of Financial Planning 8) How much percent do you expect to earn per annum from insurance field ?
a) 10%
b) 15 %
c) 20 %
d) 20%-25%
9) How much percentage you will like to invest from your annual income? INSURANCE 5 to 10% , 10 to 15% , 15 to 20%, 20% and above MUTUAL FUNDS 5 to 10% , 10 to 15%, 15 to 20%, 20% and above PPM 5 to 10%, 10 to 15% , 15 to 20% , 20% and above STOCK 5 to 10%, 10 to 15% , 15 to 20% , 20% and above BONDS/FD 5 to 10% , 10 to 15% , 15 to 20% , 20% and above
62
10) What is your Preferable Period for investment? January March April - June July - September October - December
63
doc_200160040.pdf
Analysis is the process of breaking a complex topic or substance into smaller parts to gain a better understanding of it. The technique has been applied in the study of mathematics and logic since before Aristotle (384–322 B.C.), though analysis as a formal concept is a relatively recent development
A
PROJECT REPORT ON STUDY OF SALES PROMOTION AND ANALYSIS OF INSURANCE BUSINESS IN ING VYASYA LIFE PUNE
FOR ING VYSYA LIFE INSURANCE LTD. OF
SUBMITTED TO VSBMR IN PARTIAL FULFILLMENTOF 2 YEAR FUL TIME COURSE MASTERS IN BUSINESS ADMINISTRATION (AUTONOMOUS)
SUBMITTED BY Pawan Kumar Bhardwaj MBA (AUTONOMOUS)- II(2006-2008)
VISHWAKARMA SCHOOL OF BUSINESS MANAGEMENT & RESEARCH
PUNE 48
ACKNOWLEDGEMENT
Who does not thank for little, will not thank for much
.
Thanks giving seem to be the most Pleasant of all jobs, but it is difficult when one triesto put into words. During the course of this project various person have render edvaluable help & guidance to me. I am highly grateful to MR. Saket Agrawal (Sales Manager ) who allowed me to do my summer training in their prestigious organization. My sincere thanks also extend to all the staffs of at IVL for providing a hospitable and helpful work environment and making our summer training an exciting and memorable event. My sincere thanks to (course coordinator) of VSBMR & our project guide Mr. Sunil Doke who guided me through out my project, and without their continuous help and enthusiasm the project would not have been materialized in the present form. Finally, my heartfelt thanks towards Mr. JOSHI (Director, VSBMR,) for his technical & moral support required for the realization of this project report. Finally I also wish to than VSBMR , for making this experience of summer training in an esteemed organization like IVL possible. The learning from this experience has been immense and would be cherished throughout life.
TO WHOMSOEVER IT MAY CONCERN
This is to certify that this project titled Study Of Sales Promotion and analysis of Market Insurance Business at ING VYSA LIFE INSURANCE LTD. At Pune is a Bonafide work carried By Mr. Pawan Kumar Bhardwaj student of
MBA(AUTONOMOUS) of VSBMR , Pune in the partial fulfillment for the degree of MASTERS IN BUSINESS ADMINISTRATION , S. No. 3&4, Kondhawa Budrak, Pune University of Pune. He has worked under our Guidance and Direction. His work is found to be good and complete in all respect.
Prof. Sunil Doke (Project Guide)
Dr. Shared Joshi (Director)
INDEX
CONTENTS 1 2 3 Executive summary Objective and scope Company Profile Logo Corporate Profile About IVL What is Insurance History Insurance in India
PAGE NO.
1 2 3 4 5 7 9 10 11-13
Need Reforms Insurance Players IVL Product 5 Theoritical Baqckground
14 15 19 19-40 41-47
6 7 8 9 10 11
Data Analysis Findings Conclusion
58
48-56 57-58
Recommendations Bibliography Annexure
59 60-61 61-63
PREFACE
Marketing is a vital function of any organization as all the activities of any organization evolve around it. That‘s why I took up Marketing as the area of training.
Actually it is detailed idea or we can say it is a concept of functioning forever company. My basic target is to know about how marketing takes place in any organization and how can it be useful to it.
The project which I got was Study Of Sales Promotion and analysis of Market Insurance Business at ING VYSA LIFE INSURANCE LTD., Pune this project helps me to gain insight to what actually takes place in marketing and what are the various product, price, promotion and distribution strategies adopted by an organization to reach its customer
Pawan kumar Bhardwaj
EXCUTIVE SUMMURY
The successful development of new service has become a complex process involving contributions from range different disciplines. Rarely is one individual responsible for the conception design, development and marketing of new service, for today the inherent complexity of products, their markets and therefore their processes through which they developed, dictates that a no. of different people, each which there own roles, work together to crate the service. This project represents a information regarding company s brand awareness and the customer perceptions about the various services which the organization provides. The main objective of the project is to understand the customer investment preferences more effectively and efficiently. For execution of the project methodology adopted is the collection of data through questionnaire, processing and analyzing the data. The natures of respondent, which are selected, are the professionals and having a handsome salary. The area of the project work is Pune city and its location where the survey has been undertaken those are Tilak Road , F C Road , Pune Satara Road, Upper Indra Nagar, NIBM Road and kalyani Nager IVL Investment is joint
Venture service provider offering a range of investment services depending on the customer requirements , giving the save returns after the Maturity Period ,and cover the life .The methodology for carrying out the project was very simple that is through secondary data obtained through various mediums like fact sheet of the funds, the Internet, Business magazines, Newspaper, etc. The funds have been analyzed under various types such as Equity Funds, Income Funds and Balance.
1
OBJECTIVE OF THE PROJECT
The project was undertaken to make people aware of the insurance agent as a career. With so many players in this industry and growing competition among the private players it was actually tough getting people recruited as an agent.
The main aim of the project was the following:1. To manage the sales force at IVL.
2. To explore the role of sales manager.
3. To get an instant overview of the insurance industry, its perspective, present scenarios and the competitors.
SCOPE:The study of potential of insurance business is concerned with market study i.e. research and fieldwork. This study is going to help the ING VYSYA Life Insurance to find out Sales promotion with other private companies. The study will help the company to assess their performance and improve it where it is lacking. Research work is a basic function carried out by each organization. The study of market potential of insurance is very helpful to find out who are the market leaders in private companies as well as overall analysis. Availability of time was also taken into account while deciding the particular method to meet the objectives. The entire study programmed was for the period of two months. The subject of the study was selected by looking the necessity and importance to find the market potential and give suggestions related to the topic. 2
3
LOGO
4
CORPARETE PROFILE ING GROUP
• • • • • • • • • • • • • • ING group more than 150 year old . Over Rs. 20,00,000 crore in assets – which is over 176% of over national GNP. Operating in 65 countries worldwide . The largest financial services company in the world. Ranked 13 th in the global 500 companies . ING GROUP - INC. 1991 by merger between national – NEDERLAND & POSTBANK group . Headquarters in Amsterdam , the Nederland . Banking ,leasing, insurances , and asset management business . World largest life insurances company with annual revenues of $ 82,699 mn . Fourth largest financial services company in the world . Among the top 50 organization in the world based on profits . 50 mn customer worldwide . More than 1,00,000 employee . Asset under management – over $ 685 bn .
5
ING Vysya Life Insurance
• • • • • • A joint venture that brings together ING insurance , the largest life insurance company in the world . The Vysya Bank , one of India ‘s largest private sector bank in India . 49 % stake in vysya bank Access to a network of 480 vysya bank branches in India Operation in all metro & soon launching operation in 25 other cities of key Important
6
ABOUT ING VYSYA LIFE INSURANCE COMPANY LIMITED
ING Vysya (a group terminology) has 3 businesses in India, ING Vysya Life Insurance, ING Vysya Bank and ING Vysya Mutual Fund. ING Vysya Bank is a premier private sector bank with a 70-year heritage and 1.5 million satisfied customers. ING Vysya Mutual Fund is a mid sized asset management company with a retail investor focus.
ING Vysya Life Insurance Company Limited (the Company) entered the private life insurance industry in India in September 2001, and in a span of 5 years has established itself as a distinctive life insurance brand with an innovative, attractive and customer friendly product portfolio and a professional advisor sales force
It has a dedicated and committed advisor sales force of over 21,000 people, working from 140 branches located in 74 major cities across the country and over 3,000 employees. It also distributes products in close cooperation with the ING Vysya Bank network. The Company has a customer base of over 4,50,000 & is headquartered at Bangalore. In 2005, ING Vysya Life earned a total income in excess of Rs. 400 crore and also has a share capital of Rs. 440 crore.
7 The Company aims to make customers look at life insurance afresh, not just as a tax saving device but as a means to add protection to life. The one thing we hold in highest esteem is 'life' itself. We believe in enhancing the very quality of life, in addition to
safeguarding an individual's security. Our core values are therefore defined as Professional, Entrepreneurial, Trustworthy, Approachable and Caring. The Company’s portfolio offers products that cater to every financial requirement, at any life stage. We believe in continuously developing customer-driven products and services and value being accessible and responsive to the needs of our customers.
8
WHAT IS INSURANCE?
All assets have economic value. The asset would have been created through the efforts of the owner, in the expectation that, either through the income generated there from or some other output, some of his needs would be met. In the case of a motor car, it provides comfort & convenience in transportation. There is no direct income. There is a normally expected life time for the asset during which time it is expected to perform. The owner, aware of this, can so manage his affairs that by the end of that life time, a substitute is made available to ensure that the value or income is not lost.
However, if the asset gets lost earlier, being destroyed or made non-functional, through an accident or other unfortunate event, the owner & those deriving benefits there from suffer. Hence Insurance is a tool which helps to reduce effects of such adverse events
9
HISTORY OF INSURANCE
The origin and practice of insurance is as ancient as human civilization.From Cave age till date, the story of evolution of mankind is in fact a saga of continuous search for security. His problems have been the same, though the form has changed with the social & economic circumstances. When man used to live in the caves, he used to search for security against animals because they could kill him while he was asleep. He was not at all sure if he could hunt every day & get his food. Because of the above insecurity he used to live in groups so that the other members of the tribe could come to help him in time of crisis. Later on, insurance was practiced in a different form. Small contributions of food grains were collected from farmers, hoarded in the local temple premises to be released when there was a famine or other calamity. Today, insurance works on the same principle. But, with growing financial implications the process started demanding money rather than community contribution. The modern concept of insurance came to India with the arrival of Europeans. The first life Insurance company was established in India in 1818 as Oriental Life Insurance Company by Europeans for the welfare of widows of Europeans. It was strange that many of the Companies floated thereafter were looking after European interest and even charged extra premium on Indian lives. Bombay mutual life Assurance society Ltd. established in 1870 was the first to stop this discrimination. This was the year in which the first Insurance act was passed by the British parliament. The insurance business flourished thereafter.
By the year 1955 there were 245 insurance companies and provident societies, out of which 16 were non Indian companies. A comprehensive legislation "The Insurance act 1938" was passed with a view to consolidate and amend the laws relating to the business of insurance. It came into force with effect from July '01, 1939.The act was modified in 1950. 10 The broader objectives of socialism prompted the government to nationalize the insurance business, in the year 1956. The general insurance business was nationalized in 1972, through GIC Act 1972. The Life Insurance corporation of India came into existence on 1st September 1956.
INSURANCE IN INDIA
The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.
A BRIEF HISTORY OF THE INSURANCE SECTOR
The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulatethe life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 11 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,
1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up1972: The General Insurance
12 Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.
NEED OF INSURANCE
•
To provide cash to meet various routine expenses of the family on Or immediately after the death of the income earner of the family.
•
To prevent the family s accustomed standard of living even after the death of the breadwinner.
•
To provide continuous flow of funds for the living spouse.
•
To allocate income funds for the children s education.
•
To provide a retirement income throughout old age.
•
To provide a reliable savings plan for the future.
13 • To supplement income when earning power is reduced or eroded by illness, accident or any handicap. • To furnish surplus earnings for the investors should disaster strike
INSURANCE SECTOR REFORMS
In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms In 1994, the committee submitted the report and some of the key recommendations included:
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i) Structure
• •
Government stake in the insurance Companies to be brought down to 50% . Govern.\ment should take over the holdings of GIC and its subsidiaries so that .
• •
these subsidiaries can act as independent corporations . All the insurance companies should be given greater freedom to operate
ii) Competition
• • • • • Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry No Company should deal in both Life and General Insurance through a single entity Foreign companies may be allowed to enter the industry in collaboration with the domestic companies Postal Life Insurance should be allowed to operate in the rural market Only one State Level Life Insurance Company should be allowed to operate in each state
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iii) Regulatory Body
• • • The Insurance Act should be changed An Insurance Regulatory body should be set up Controller of Insurance (Currently a part from the Finance Ministry) should be independent
iv) Investments
• •
Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50% GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time)
v) Customer Service
• • •
LIC should pay interest on delays in payments beyond 30 days Insurance companies must be encouraged to set up unit linked pension plans Computerization of operations and updating of technology to be carried out in the insurance industry
16 The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry.
Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose it had proposed setting up an independent regulatory body.
17
THE INSURANCE PLAYERS
Licenses have been issued for the following companies
1 2 3 4 5 6 7 8 9
Life Insurance Co.Ltd ING Vysya Life Insurance Company Limited Reliance Capital (Life Insurance) Kotak Mahindra Old Mutual Life Insurance Limited ICICI Prudential Life Insurance Company Limited HDFC Standard Life Insurance Company Limited Birla Sun Life Insurance Company Limited TATA AIG Life Insurance Company Limited Max New York Life Insurance Company Limited
10 SBI Cardiff Life Insurance Company Limited 11 Bajaj Allianz Life Insurance Company Limited 12 MetLife Life Insurance Company Limited 13 Aviva Life Insurance Company Limited 14 Bharti AXA Life Insurance
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ING VYSYA Life Insurance’ s ING VYSYA Endowment Plan is the key to all your financial needs. It is an inexpensive and easy way to protect you, your family or your business.
In a nutshell this plan will keep you financially prepared for all the special occasions in your life - your daughter s wedding, your child s university education or even a new office for your business - by eliminating the burden that a shortage of money creates.
In the event of your untimely death, ING Endowment Plan will also assist your loved ones through this difficult time by the financial support that it provides.
ING VYSYA Endowment Plan also gives you the additional benefit of participating in the company s profits, which you will receive at the end of the policy period.
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ING LIFE PLUS
This Plan simplifies the process of taking unit linked insurance. You can choose a convenient policy term of 10, 15 or 20 years. Its regular premium payment for the full
policy term enables you to get the benefits of systematic investment by paying your premiums at pre determined intervals throughout the policy term.You can also plan your investments to suit your preferences and risk profile.
The regular premiums and top-up premiums paid by you, less charges are credited to an account called the ‘Fund Value’ and are used to purchase units in one or more Unit Linked Funds as per your choice. At any point in time, the Fund Value is represented by the number of Units multiplied by the respective Unit Price of the Units held from time to time under all the Unit Linked Funds under this Policy
ING Life Plus is the easiest way of taking unit linked insurance. While it allows you to invest and manage your investments at your own pace as per your risk profile, its inbuilt Enhanced Protection Cover feature ensures that your life cover keeps increasing throughout the policy term and ensures that you and your family are well protected.
.
Key Features •
You have the option of enhancing your cover at the end of the first and second
year of taking your policy .
21 • • • You need not undergo any medical examination to avail of this plan. Even the
Paperwork is minimal You can also avail of a policy loan after 3 years . You get a tax benefit under Section 80C & 10(10)D of IT Act .
• • •
On survival up to the maturity date, you get the sum assured plus accumulated
Bonuses. You can switch over your fund . In case of unfortunate death, your nominee will get the sum assured plus
Accumulated bonuses.
MARKET RETURN PLAN
You have always aspired for the best in life. And we help you achieve just that. With IVL Market Return plan you can have the twin advantage of insurance protection as well as reaping the benefits of investment growth. It is a flexible plan which works all through your life and meets the changing requirements like additional protection, liquidity through cash, option to invest in different asset class, steady golden years and many more.
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Kay Features – ING Market Return Plan :
• • • • • • • • •
Twin benefit of market linked return and insurance protection A Unit Linked Plan, different form traditional Life Insurance products, with maximum maturity age of 65 years Option to create your own portfolio depending on your risk appetite Choose form 5 different investment funds Flexibility to switch between funds Option to pay regular as well as single premium & Top-ups Option to package with Accidental riders Flexibility to increase the Sum Assured Liquidity through partial withdrawals
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How does this Plan work?
Ing life plus gives you complete flexibility to plan for your finances. you can decide how long you want to pay ,how much you pay ,the frequency of payments that you would make each year and so on..
Flexibility in premium and frequency
Minimum : yearly Rs. 10,000, half –yearly: Rs.5,000, quarterly : Rs. 2,500, monthly : Rs. 833 . Maximum : Rs 4166 . yearly Rs.50,000 half- yearly :Rs 25,000, quarterly :Rs 12,500, monthly :
The premium made net of Premium Allocation Charges by you is invested in fund/funds of your choice and units are allocated depending on the price of units for the fund/funds.
The value of your Unit Account is the total value of units that you hold in the fund/funds. The Mortality Charges and Policy Administration Charges are deducted through cancellation of units whereas the Fund Management Charge is priced in the unit value.
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Benefits
Life Cover Benefit: You can choose the basic Sum Assured within the minimum and maximum levels mentioned below
Minimum Sum Assured:
Regular Premium: Annualized Premium for 5 years or for half the Policy term Single Premium: 125% of the single premium Maximum Sum Assured: No Limit (Rs 500,000 for age up to 12 years)
In case of unfortunate loss of life, your Beneficiary will get sum Assured or Unit Account Value whichever is higher.
Maturity Benefit: On survival, at maturity the value of your Unit Account will be paid out.
Rider Benefit: You can add the Accidental Death & Accidental Total and Permanent Disablement Benefit Rider (available only with regular premium option).
This benefit doubles the life coverage in case of accidental death or accidental total and permanent disablement at a very nominal additional cost. The maximum cover is Rs. 50,00,000 per life.
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In case of accidental total and permanent disablement, 1/10th of the Sum Assured will be paid at the end of each year for ten years. If the total and permanent disablement has commenced, the Accidental Death Benefit Cover ceases. In case of maturity or on death of the Assured, after payment of installments of Accidental Total and Permanent Disablement Benefit, the remaining unpaid installments if any will be paid in one lump sum.
Accidental total and permanent disablement means disability caused by bodily injury, which causes permanent inability to perform any occupation or to engage in any activities for remuneration or profits. This disability should last for at least 6 months before being eligible for Accidental Total and Permanent Disablement Benefits.
Total and permanent disablement includes loss of both arms or both legs or one arm and one leg or of both eyes. Loss of arms or legs means dismemberment by amputation of the entire hand or foot. Loss of eyes means entire and irrecoverable loss of sight.
Exclusions to Rider Benefit
ING VYSYA Life Insurance will not be liable to pay any Accidental Death Benefit Claim or Total and Permanent Disablement Claim which results directly or indirectly from any one or more of the following:
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An act or attempted act of self injury. Participation in any criminal or illegal acts. Being under the influence of alcohol or drugs. Racing or practicing racing of any kind other than on foot . Flying or attempting to fly in, or using or attempting to use, an aerial device of any description, other than as a fare paying passenger on a recognized airline or charter service. Participating in any riot, strike or civil commotion, active military service, naval air force , police or similar services or War, invasion, act of foreign enemies, hostilities or war like operations (whether war be declared or not), civil war, mutiny, military rising, insurrection, rebellion, military or usurped power or any act of terrorism.
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What are the different fund options?
ING VYSYA Life Insurance understands the value of your hard earned money and in our endeavor to help you grow your wealth, we offer you 4 different tailor-made investment funds. You have the option to allocate your premium in these funds as you wish. The four different funds offered are
1. Secure Fund:
The investment objective of this fund is to maintain the value of all contributions (net of charges) and all interest additions. This Fund offers steady return for very little risk. The risk profile of this fund is low. Your funds are invested 100% in Bank Deposits, Government Bonds and debt instruments that offer financial security.
Further, investments in Secure Fund are subject to a maximum limit of 20% at inception.
2. Balanced Fund:
The investment objective of this Fund is to provide you with investment returns which exceed the rate of inflation in the long term while maintaining a low probability of negative investment returns. In this fund, a major portion of your funds are invested in fixed securities while a small percentage is invested in the equity market, which is exposed to market movements. The risk profile of this fund is low to medium. Investment would be at least 60% in fixed interest securities and maximum 40% in equities.
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3. Growth Fund:
The investment objective of this Fund is to provide you with investment returns which exceed the rate of inflation in the long term while maintaining a moderate probability of negative investment returns. This fund offers a greater portion of your funds are invested in fixed securities while a small percentage is invested in the equity market, which is exposed to market movements. The risk profile of this fund is medium to high. Investment would be at least 40% in fixed interest securities and maximum 60% in equities.
4. Equity Fund:
The investment objective of this fund is to provide Policyholders with high exposure to equities and the possibility of investment returns which Generate a high real rate of return in the long term while recognizing that there is a significant probability of negative investment returns in the short term. This fund offers a totally equity based investment option. Your returns depend entirely upon the performance of the equity market. The risk profile of this fund is high. The higher risk of this portfolio means that expected returns would also be higher. Investments would not exceed 30% in Bank Deposits and may be 100% in equities.
5.Debt fund
The investment objective of this fund is to provide safety and growth with minimum risk . and when it come to investment pattern 100% of the available fund are invested in debt instrument .
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Value of Units: The unit price of each Fund will be the unit value calculated on a daily basis.
Total Market Value of assets plus/less expenses incurred in the purchase/sale of assets plus Current Assets plus any accrued income net of fund management charges less Current Liabiliti Unit Price = Less Provision Number of units on issue (before any new units are Allocated /redeemed)
TAX BENEFIT
Premiums paid are eligible for tax deduction under Section 80C of the Income Tax Act, 1961. Provided the premium in any years during the term of the Policy does not exceed 20% of the Sum Assured, maturity and withdrawals are eligible for tax benefit under Section 10(10D). Death benefit are tax free under Section 10(10) D of the Income Tax Act, 1961. Under Section 80C premiums up to Rs 100,000 are allowed as deduction from your taxable income.
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GENERAL EXCLUSION:
If the Life Assured, whether sane or insane, commits suicide within 12 months from the date of issue of this Policy or the date of any revival of a Policy, the Company will limit the death benefit to the value of the Unit Account and will not pay any insured benefit.
15 day free look period
The Policyholder may cancel this Policy by returning it to the Company within 15 days of receiving it together with a letter requesting it be cancelled. The Company will refund the premium paid by the Policyholder less a deduction:
of the proportionate premium for the time cover has been provided till cancellation of expenses incurred by the Company for medical examination of the Life Assured, Stamp Charges and expenses incurred in that connection.
Please note that ING VYSYA Life Insurance Company Limited is only the name of the insurance Company and Reliance Market Return Plan is only the name of the unit Linked life insurance Policy and does not in anyway indicate the quality of the Policy or its future prospects or returns. Prohibition of Rebate: Section 41 of the Insurance Act, 1938 states:
1) No person shall allow or offer to allow, either directly or indirectly, as an Inducement to any person to take out or renew or continue an insurance in respect of any kind of risk
31
relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the Policy, nor shall any person taking out or renewing or continuing a Policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer.
2) Any person making default in complying with the provisions of this section shall be punishable with a fine which may extend to five hundred rupees. Insurance is the subject matter of solicitation
UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICY HOLDER.
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IVL PRODUCTS PLANS FIT FOR EVERYONE
IVL Endowment Plan
1. Part of ING Group, can be trusted. 2. High Returns and Life Security. 3. More value for money.
ING Safal Jeevan Money Back Plan
How does this plan work ? Safal Jeevan Money Back plan is ideal if you are planning to take your first life insurance policy. It offers you protection in an easy, hassle-free way and helps you secure your goals and dreams despite the odds. All you have to do is to choose a suitable policy term from 'pre-packaged' solutions, and allows you to decide how much and how long you want to pay premiums. The plan ensures an easy and hassle free process, yet offering you a comprehensive protection and savings proposition with coverage terms of 16 and 20 years. Premium is payable annually, half yearly and quarterly. Bonuses declared are non-guaranteed and are based on the company’s performance.
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Feature
1 . under this plan you will get life insurances cover a chosen sum assured during the policy term(this plan is 15 year plan / 20 year plan ) 2 . Maturity Benefit: Get 40% of the Sum Assured, with reversionary bonuses* on maturity 3. Survival Benefit: Get 20% of the Sum Assured in three equal installments every 1/4th of the policy term and 40% on maturity
ING Creating Star Plan ( chilled plan)
ING Vysya Life Insurance’s Creating Star, gives you the opportunity of fulfilling your child’s need for quality education. This offers you a systematic and hassle free way to Pre-fund your child’s education program by paying premiums regularly and securing your child’s education fund by protecting future premium payments against unfortunate circumstances.
1. Providing for future goals of children-education or marriage. 2. Lump sum payments at appropriate times-not related to age of child. 3. Four regular guaranteed payments-last 4 years of policy term. 4. On death of life assured, future premiums waived. 5. Policy participates in Profits- simple bonus at end of policy term. 6. Minimum policy term-5 years- we can get payment from 2nd year if wanted.
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ING positive life plus
Feeling positive about life is now so easy! ING PositiveLife is a flexible plan, customised to suit the needs of an individual customer anywhere from the ages of 0 to 50 years. It allows the customer to enter the plan for as low as Rs. 834/- per month. The convenient policy terms of 10, 15 or 20 years allows one to match their life goals to the policy terms. There is flexibility of premium paying term from a minimum of three years to the policy term.
This Plan simplifies the process of taking unit linked insurance. You can choose a convenient policy term of 10, 15 or 20 years. Its regular premium payment for the full policy term enables you to get the benefits of systematic investment by paying your premiums at pre determined intervals throughout the policy term.You can also plan your investments to suit your preferences and risk profile.
Feature
1. Limited Premium Payment . 2. Flexible investment options . 3 . Systematic Investment benefit .
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ING Freedom plan
Freedom means many things to many people. But there are some things in life that cannot be compromised - your work, financial future and the longterm security of your loved ones. What you need is an investment plan that allows you to customise it to your needs, investment goals and the lifestyle you prefer. And an ING Vysya Life Plan does just that by allowing you to customise your plan - be it the extent of life cover, premium amount, frequency, and the type of investments to suit your risk profile - setting you free from financial limitations and helping you realise your aspirations.
The ING Vysya Life New Freedom Plan has in-built customisable features that offer you freedom, flexibility, and much more. So you now have complete flexibility to plan your finances, decide how long you want to pay, how much to pay, the extent of insurance cover, the frequency of payments that you would make each year and so on. The ING Vysya Life New Freedom Plan offers you so much more as a life cover, in terms of flexibility and customising your investments, that you will come to realise what real freedom means, from a financial perspective.
Feature
The plan comes with its own three unique features: • Protection Benefit: Customise the amount of life cover that suits your needs and thereby, enjoy maximum protection.
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• Survival Benefits: Avail survival benefits up to 4 times after completion of 10 policy years, in addition to receiving maturity benefits when you reach the age of 70.
• Manage your investments: Choose from five investment options Debt fund, Secure fund, Balanced fund, Equity fund and Growth fund. Review the performance of your investments and switch between plans or top up with additional funds.
ING The Best year Retirement PLAN
As the name suggests, this plan can ensure that your post-retirement years are spent in peace and comfort. And it extends the same comfort to your family by standing as a financial asset, in case you are not around. This long-term investment plan can truly ensure the best years of your life.
Key Features
• • • • • .Investment Amount And Returns Declared Are Guaranteed . Steady Returns With 80 CCC Balanced Fund . Flexibility in Fund Accumulation . Lower Management Fees . Lower Minimum Contribution Limit
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Benefits
Capital Guarantee:
Your contributions are transferred to your Individual Pension Amount(IPA). Charges as applicable will then be deducted. .The balance in your IPA will be invested in the ING Vysya Capital Guarantee Plan.
Flexibility:
To chose the regular contribution to be made each year. • • • With regard to timing and frequency of contributions . To start the pension whenever you wish. . To postpone the retirement date to make best use of market conditions.
Premium
Premium will be paid by way of deduction from the IPA on each due date.
Tax Benefit
Under Section 80 CCC. Any lump sum received at chosen retirement date or on death is exempted from tax, under Section 10(10A) of the IT Act.
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ING NEW FUTURE PERFECT PLAN
How does this Plan work ?
The ING Vysya Life New Future Perfect Unit Linked Plan has been carefully put together to enable you get the maximum benefits from your investment plan. It not only provides you with flexibility in terms of premium amounts and frequency, but also offers you an investment opportunity that’s just perfect for your long-term financial future. The ING Vysya Life New Future Perfect Unit Linked Plan offers you flexibility in terms of how much you want to pay, how often you want to pay and the choice of investment pattern. After all, what you are looking for is not just life cover but something that covers all of what life has to offer
features:
• Protect your Future: Even after retirement, you and your family are well
provided and protected with continued life cover. • Survival Benefits: Apart from the regular yearly systematic withdrawal benefits starting from age 60 till 80, you will also receive maturity benefit at the age 80. • Manage your investments: You can choose from any of the five investment options - Debt, Secure, Balanced, Equity or Growth Fund, depending upon your appetite for risks and returns. Review the performance of your investments and switch between the plans or top up with additional funds.
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ING New fulfilling Life Plan
The New Fulfilling Life Plan is a unique plan that fulfills your need for protection, saving and investment. It gives a double benefit of a whole life cover along with regular cash returns in your lifetime. The Fulfilling Life Plan provides your family security even after your death, apart from giving you regular cash returns during your life. The special feature of this plan is you may receive double the Sum Assured. The first 100% as money back spread over the premium payment term and the remaining 100% on death or maturity. You can also choose from a range of limited premium payment terms. Bonuses declared are non-guaranteed and are based on the company’s performance.
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THEORITICAL BACKGROUND TARGET CUSTOMER
The target respondents were selected from different sources like :1. Housewives 2. Owner of beauty parlors 3. Agents of other insurance companies 4. Travel agents 5. Real estate consultant 6. Investment companies 7. Chartered accountants 8. Advocates 9. Developers and contractors 10. Chemist 11. Shop owner
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DISTRIBUTION
ING VYSYA Life Insurance has one of the largest distribution networks amongst private life insurers in India with has a dedicated and committed advisor sales force of over 21,000 people, working from 140 branches located in 74 major cities across the country and over 3,000 employees. It also distributes products in close cooperation with the ING Vysya Bank network. The Company has a customer base of over 4,50,000 & is headquartered at Bangalore. In 2005, ING Vysya Life earned a total income in excess of Rs. 400 crore and also has a share capital of Rs. 440 . ING Vysya Life Insurance Company Limited (the Company) entered the private life insurance industry in India in September 2001. Due to well Distribution the growth of Insurance sector of IVL will catch the market very fastly in coming days as compare to any other Insurance company .
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RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact research is an art of scientific investigation. Redman and Mory define research as a systematized effort to gain new knowledge . Some people consider research as a movement, a movement from the known to the unknown. It is actually a voyage of discovery. Research is an academic activity and as such the term should be used in a technical sense. As such the term research refers to the systematic method consisting of enunciating the problem, formulating a hypothesis, collecting the facts or data, analyzing the facts and reaching certain conclusions either in the form of solutions towards the concerned problem or in certain generalizations for some theoretical formulation. In IVL the research work which has been done by me are basically of two types. That are
1. Applied
2. Fundametal
1. Applied:-
Applied Research aims at finding a solution for an immediate problem facing a society or an industrial business organization. Thus the central aim of applied research is to discover a solution for some pressing practical problem. I have done project in RLI and I had found out some problem while meeting or talked to people. Convincing people is one of the most toughest job what I found out. When I had talked to people then the main problem what I had faced that people didn t had any time to talk with me and they were looked more busy. But still I had got some data from the people who were interviewed by me in the different places and they really cooperated with me and helped me a lot. 43
2. Fundamental:-
Fundamental Research is mainly concern with generalizations and with the formulation of a theory. Research concerning some natural phenomenon or relating to pure mathematics are example of fundamental research. When I had done fundamental research then I had got some ready-made data by which I had done the data analysis and try to expose the performance of the the policies whichever is being offered by my company.
METHODOLOGY
The first thing that a financial consultant has to do is to deal with the customers coming into the bank for other banking services and interact with them freely to make them aware about the kind of services being offered at the investment desk of the branch. This help them in creating their own databases.
Secondly the people who shows interest in investing but express difficulty for going for investments has to be taken care of by giving them various options of systematic investment plans and thus mitigating their difficulties as well as gaining goodwill.
A telephonic conversation often helps us when somebody ha to be counseled but is unable to come to bank. Through this method appointment is fixed according to the convenience of the client and financial service is delivered to him or her.
44
On certain occasions we also do get chances to visit and camp at important corporate offices where we think that is the home ground of interested people. This has helped us to gain exposure in multi corporate environment.
Database given by the organization itself helped us sometime when we had to expand our clientele base to get good results.
This
methodology helped
us
to
enhance
our
own
confidence
to
in
the
corporateenvironment and also remain updated about the current market scenario in the financial sector. In this project report I am explaining in detail the knowledge that I gained while doing the internship and the research I have been able to do. I am giving detail explanation about the mutual funds, insurance, gold, initial public offer and finally have made comparative study of some products and the extent objective of the project is being achieved.
45
PRIMARY DATA ANALYSIS
I have collected primary data during the course of doing experiments in an experimental research but in case I do research of the descriptive type and perform surveys, whether sample surveys or census surveys, then I have obtained primary data through :-
1. Observation.
2. Direct communication with the people.
3. Through personal interviews.
4. Cold calling
5. Tele calling
1. Observation
Observation is a kind of process by which with the help of people s face reading and looking at his personality I tried to understand that the profile is good or bad and is that person really beneficial for the company or not.
46
2. Direct
Communication
With the help of direct communication i.e. direct talk to people I have tried to Make him understand that what are our policies and all plans are very flexible. At the time of interactions have tried promote my company and also tried to motivate that people to grasp that opportunity whatever we are offering.
3. Personal
Interview
With the help of this process I have tried to explore that profile and tried to scan that person s quality and also his/her selling ability.
4. Cold
Calling
In this part I have explained our offering to the persons whom I have met in my way and also try to make him convinced that our offerings are superior than other.
5. Tele
Calling
At the time of telecalling as the term referred that I used to call the persons whose data I was being got from the company s database and tried to fix up an appointment with that person and after that I used to meet that profile. After meeting that person I used to make him understand our offering and try to convince that person.
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DATA ANALYSIS RESPONDENT OF CATEGERIES
Total No. of Respondent
120
Categories
No. of Respondent
Businessman Serviceman Student
49 29 45
35%
41%
BUSINESSMAN SERVICEMAN STUDENT
24%
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Findings
Whenever I had surveyed the categories of the respondents then I had found that there are more no. of respondents who are Businessman.these qualification is more than graduate and 12th pass is the minimum criteria for becoming a financial advisor it is a good respondent base in pune area. The percentage of Businessman respondent is 41 % and the percentage of graduate serviceman are 24 % .and percentage of student respondent is 35% . the total respondents are more people are eligible for becoming a financial advisor. So it is a good potentiality in the market place.
Preferences of respondent in Insurances Company
Total No. of Respondent
120
Name of insurance company
No. of respondent
LIC HDFC Standard Life ICICI Prudential Bajaj Allianz Life ING VYSYA life
44 29 18 15 14
49
12% 13% 36% LIC HDFC Standard ICICI Pro 15% 24% bajaj allianz ING Vysya
Whenever I had surveyed preferences of insurance company of people about ING VYSYA Life Insurance then I had found that there are more no. of respondents who are aware about LIC. ING VYSYA Life Insurance has got the acceptance of only 24% as we all know that it is 6 year in the market place. Still the rural people are not aware about ING VYSYA LIFE . Because until now it is unable to penetrate in rural India.
Best sector for investment
Total No. of Respondent
120
Sector Mutual Fund Share Insurance Tax planning / F.D. Fix Deposit
No. of Respondent 54 23 27 9 7
4% 19%
9% mutual fund 45% insurance share FD tax planning 23%
Finding
Now a days there is a question in people s mind that what will be the best sector for Investment. There are various sectors for investing money. I had surveyed the thing and came to the decision that the people really like mutual fund first and then they like Insurance .
The acceptance of percentage in case of mutual fund is 45% and in insurance sector it is 23%. So as mutual fund is one kind of investment insurance companies should have to more emphasize on the investment plans.
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Suitable media for financial service
Total No. of Respondent
120
Media
Magazine News paper TV/Radio Agent other
Respondent
14 23 29 43 11
12% 36% 19% magazine news paper TV/ Radio other agent 9% 24%
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Finding
There are various media by which insurance sector can grow. I had done a survey on that and come to the conclusion that financial advisors or agents are the main media for the growth of the insurance sector. The survey said that Agents comprises of 36 % of the media is concerned. So the roles of insurance advisors are very important in insurance business so recruitment should be done in a continuous proces
Various Reason why Not to invest money
Total No. of Respondent
120
Reason
High Risk Lack of knowledge Previous loss Lack of financial planning
N0. of respondent
21 54 27 18
15%
18% high risk lack of knowledge previous loss lack of finacial planning 44%
23%
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Finding
When I had visited to talk with the people and tried to emphasize the plans then various factors come to people s mind. There are n number of reasons for that people are not investing money in the private sector.
After doing the survey I had come to the conclusion that lack of knowledge is the most important factor for which the people are not investing money. The percentage of lack of knowledge is 44% .So I think the top level officers of the IVL has to take necessary measures to increase the people s knowledge regarding the insurance, and investments.
Best month for investment
Total No. of Respondent
120
Month April – June July- September October –December Jan – march
Respondent 31 22 19 58
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16% 42% 19% april-june july-Sept. Oct. - Decm. jan-march 23%
Finding
The survey says that people are interested in the period of January to March and in the period of October to December. The maximum amount and number of investment was being done at this month period. And the percentage shows that it is 65 % when we had combined the data result in both the month.
In these month period the people are involved in paying the tax and for that they do need investment. That is the main reason for good business in those month period.
Accepted plan
No. of Respondent
120
Plan child plan
No. of Respondent 31
Pension plan Investment Saving
18 57 14
15% pension plan child plan money back plan 26% 12% Investment
47%
Finding
There are various kinds of plans which are being offered by IVL and the more accepted plans are investment plans. As per as the survey is concerned investment plan comprises of 47 % of the total part.
From this we can understand that the acceptance level of the investment plans. Because of the high return these plans are really popular.
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FINDING:
During my project I have found out various things by which I have learned a lot. As insurance is one of the toughest sectors in business world and we are the dream sellers in the industry because we never give the customers return in that very day we are assuring some amount so it s all about faith on we people which customers are suppose to do.
General View
I. Reliance Industry just take step in life insurance company is just lunch Its insurance sector in Feb 06. II. Less number of branches in Maharashtra and outside of Maharastra there is almost nothing. III. Promotional tools which are being used are not so much effective. IV. People don’t rely upon private insurance sector. V. Customers are much more rely upon LIC. VI. Less customer awareness regarding this RLI. VII. It still not penetrate in rural area. VIII. Product variety is very less. IX. All products are not attractive to the customers so that kind of products are very hard to sale. X. Investment plans are very less, that s why people are not accepting the products. XI. Competitors are very tough. XII. Brand name helped quite a lot to the company.
Negative view
1. Customers are much more rely upon LIC. 2. People don t rely upon private insurance sector. 57
3. Competitors are very tough. 4. All products are not attractive to the customers so that kind of products are very Hard to sale. 5. Less number of traditional plans that s why people who really need traditional Plans are still not getting their things.
Positive view
1. Brand name helped a lot while financial advisors are opting for calling. 2. Branches are almost everywhere. 3. They penetrate in rural segment quite effectively. 4. Higher level of advertising and all are very effective 5. Advertising through all media.
CONCLUSION
ING VYSYA LIFE INSURANCE Company Limited is a part joint venture of ING Bank and Vysya Bank . ING Insurance , the largest life Insurance company in the world. theVysya bank , one of India ‘s private bank sectore bank India . ING group fourth lagest financial services company in the world .ng companies, in terms of net worth. IVL asset management and mutual funds, stock broking, life Insurance , proprietary investments, private equity and other activities in financial services. IVL sees immense potential in the rapidly growing financial services sector in India and aims to become a dominant player in this industry and offer fully integrated financial services.
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RECOMMENDATIONS
Given the current level of dissatisfaction experienced by customers, it is time Reliance Life Insurance concentrated on providing high quality services for differentiating their offerings. Some areas on which they should concentrate immediately are:-
1. Gear up sales services particularly those that will help in reducing customer anxieties. 2. Simplify documents wherever necessary, without loosing control. 3. Enhance post sales services in such areas as sending all renewal notices in time, Expeditious settlement of claims and refunds etc. Customize products to cater to the needs of each individual. 4. Emphasize with the customers. Employees coming in contact with customers must show courtesy and good behavior.
To deliver the above, will need to build the suitable organization with an appropriate management system, optimum physical infrastructure and a culture of innovation, productivity and customer-orientation that will enable them to survive and grow in exciting and fast growing line of personal insurance.
BIBLIOGRAPHY
Referance book and internet sites name are
re licensing Agents Training Book (Insurance Institute of India) IC33 Life Insurance S. Bal Chandran (Insurance Institiute of India) Life and Health Insurance Kenneth Black Marketing Management by Philip Kotler Websites:Yahoo.com IRDA.com, Google.com 59ANNEXURES Questionnaires for research Leaf let of products
QUESTIONNAIRE
NAME: ____________________________________________________
AGE: _______ SEX: __________
ADDRESS-:____________________________________________________ _____________________________________________________________
E-MAIL:_____________________________________________________
Tick any one answer.
1) Are you preferences of ING VYSYA LIFE INSURANCE ?
YES
NO.
If NO, are you aware of any of following Life Insurance Company? a. LIC b. ICIC Pro. c. Bajaj Allianz
d. HDFC Life Insurance
60 2).What is CRETARIYA?
a. Businessman
b. Serviceman
c. Student
4)From which media you come to know about Financial Services Magazine Newspaper TV Radio Interest Agents Franchisee Hoardings Friends Others
5) Would you like to invest in Financial Sector?
Yes Go to (6) No Go to (7)
6) Which Financial Service you will prefer to invest and why? INSURANCE MUTUAL FUNDS TAX PLANNING 61
BONDS/FD 7) Reason Being: High Risk Lack of Knowledge Previous Loss Lack of Financial Planning 8) How much percent do you expect to earn per annum from insurance field ?
a) 10%
b) 15 %
c) 20 %
d) 20%-25%
9) How much percentage you will like to invest from your annual income? INSURANCE 5 to 10% , 10 to 15% , 15 to 20%, 20% and above MUTUAL FUNDS 5 to 10% , 10 to 15%, 15 to 20%, 20% and above PPM 5 to 10%, 10 to 15% , 15 to 20% , 20% and above STOCK 5 to 10%, 10 to 15% , 15 to 20% , 20% and above BONDS/FD 5 to 10% , 10 to 15% , 15 to 20% , 20% and above
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10) What is your Preferable Period for investment? January March April - June July - September October - December
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