TRAINING REPORT
ON
SELLING STRATEGIES ADOPTED
BY
AVIVA LIFE INSURANCE CO. LTD.
SUBMITTED TO
MAHARSHI DAYANAND UNIVERSITY, ROHTAK
In partial fulfillment of the requirements
for the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION
(INDUSTRY INTEGRATED)
(III SEM.)
SUBMITTED BY
NAME: NIKHITA BATRA
Jagannath Institute of Management Sciences
34, RING ROAD, LAJPAT NAGAR,
NE DEL!I"#4
EL$ $ODE% &33'('#())*
&Maha+ishi Da,anan- .ni/e+sit,*
0
1
CONTENTS:
C!"TE# 1$ I%T#ODUCTIO%
1&1 'eneral introdu(tion a)out the se(tor&
1&* Industr+ profile&
a& Origin and de,elopment of the industr+&
)& 'rowth and present status of the industr+&
(& -uture of the industr+&
C!"TE# *$ "#O-I.E O- TE O#'!%I/!TIO%
*&1 Origin of the organi0ation&
*&* 'rowth1 De,elopment 2 present status of the organi0ation&
*&3 Organi0ation stru(ture and organi0ation (hart&
*&4 produ(t and ser,i(e profile of the organi0ation&
*&5 Mar6et profile of the organi0ation&
C!"TE# 3$ DISCUSSIO%S O% T#!I%I%'
3&1 Student7s wor6 profile 8#ole and #esponsi)ilities9
3&* :e+ learning from training&
C!"TE# 4$ STUD; O- SE.ECTED #ESE!#C "#OB.EM
4&1 Statement of resear(h pro)lem&
4&* Statement of resear(h o)perien(e&
=&* Con(lusions and #e(ommendations&
!""E%DICES
BIB.O'#!";
*
LIST OF TABLES
Sl. No. Table
no.
Table Title Page No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
1.
1
2
3
4
5
6
7
8
9
1
Age o! "e#$on%ent#
&'ali!i(ation o! "e#$on%ent#
O(('$ation o! "e#$on%ent#
A)e"age ann'al in(o*e o!
"e#$on%ent#
Fa*il+ #i,e
A-a"ene## o! A)i)a
.i!!. $lan# in A)i)a
/0oo#ing $a"ti('la" $"o%'(t
A-a"ene## o! li!e in#'"an(e
.i#a%)antage# o! in#'"an(e
Ot0e" in)e#t*ent#
36
37
38
3
!"
!#
!$
!3
!!
!%
!6
!7
3
11. 11.
LIST OF 12AP3S 4 /3A2TS
Sl. No. Table
no.
Table Title Page No.
4
1.
2.
3.
4.
5.
6.
7.
8.
9.
1.
11.
1
2
3
4
5
6
7
8
9
1
11.
Age o! "e#$on%ent#
&'ali!i(ation o! "e#$on%ent#
O(('$ation o! "e#$on%ent#
A)e"age ann'al in(o*e o!
"e#$on%ent#
Fa*il+ #i,e
A-a"ene## o! A)i)a
.i!!. $lan# in A)i)a
/0oo#ing $a"ti('la" $"o%'(t
A-a"ene## o! li!e in#'"an(e
.i#a%)antage# o! in#'"an(e
Ot0e" in)e#t*ent#
36
37
38
3
!"
!#
!$
!3
!!
!%
!6
!7
5
CHAPTER #
INTRODUCTION
=
#.# GENERAL INTRODUCTION OF INSURANCE INDUSTRY
! well de,elopment and e,ol,ed insuran(e se(tor is needed for e(onomi( de,elopment as it is pro,ides
long term funds for infrastru(ture de,elopment and the same time strengthen the ris6 ta6ing a)ilit+&
.ife insuran(e is also now )eing regarded as a ,ersatile finan(ial planning tool in India& India )eing a
(ountr+ ha,ing a huge population of around one )illion people with onl+ 33&*? of the insuran(e
population in India possessing life insuran(e& The (ountr+ has a ,ast potential that has )een left
untapped till now&
Therefore1 what this has led to is the flooding of life insuran(e mar6et with a num)er of pri,ate pla+ers
whi(h in (olla)oration with re(ogni0ed foreign (ompan+7s promises to deli,er the )est of ser,i(es at
the least pri(e& !ll these (ompanies are tr+ing to grasp the ma>imum of mar6et share in life insuran(e
se(tor& -or that the+ are de,eloping a (hannel i&e& re(ruiting world@(lass insuran(e ad,isorsAagents who
sell their produ(ts or poli(ies& But what a (onsumer needs or what he per(ei,es a)out life insuran(e
still needs to )e answered these are some questions I ha,e tried to answer in the proed deposits1 the onl+ return would )e the amount
in,ested plus an+ interest a((rued&
(II) I- ,&+1()*5,' '*40&5 *&2 71)+,' -6)07-
On(e an insuran(e (ontra(t has )een entered into1 the insured has an o)ligation to (ontinue pa+ing
premiums1 until the end of the term of the poli(+K otherwise the poli(+ will lapse& In other words1 it
)e(omes (ompulsor+ for the insured to sa,e regularl+ and spend wisel+& In (ontrast sa,ings held in a
deposit a((ount (an )e a((essed or stopped easil+&
(III) I- .)1402,' ,*'8 ',--3,/,&- *&2 .)1-,+-01& *5*0&'- +),20-1)'
On(e a person is appointed for re(ei,ing the )enefits 8nomination9 or a transfer of rights is made
8assignment91 a (laim under the life insuran(e (ontra(t (an )e settled easil+& In addition1 (reditors ha,e
no rights to an+ monies paid out )+ the insurer1 where the poli(+ is written under trust& Under the
Married Jomen7s "ropert+ !(t 8M&J&" !(t91 the mone+ a,aila)le from the poli(+ forms a 6ind of trust
whi(h (annot )e atta(hed )+ !(t1 in(lude .ife Insuran(e
"remiums and (ontri)utions to a re(ogni0ed "ro,ident -und et(&1 se(tion 10 810D9 2 other su)@
se(tions of Se(tion E0 of the In(ome Ta> !(t&
11
#.$ * O)050& *&2 2,4,31./,&- 17 -6, 307, 0&'()*&+, 0&2('-)8
!III! is U:7s largest and the worlds 5
th
largest insuran(e group& It is one of the
leading pro,iders of life and pension produ(ts to Europe and has su)stantial )usinesses
elsewhere around the world &It has more than G5*3 )illion of assets under management&
In India !III! has a long histor+ dating )a(6 to 1E34 &!t the time of nationali0ation
goes the largest foreign insurer in India in terms of the (ompensation paid )+ the go,t&
of India&
!,i,a was also the first foreign insuran(e (ompan+ in India to setup it7s representati,e
offi(e in 1FF5&In India !,i,a has a t few +ears it is esta)lished that the Indian insuran(e se(tor will de,elop a )etter
understanding of (onsumer requirement leading to more satisfa(tion of (onsumers&
? The world (lass te(hnolog+ will )e a,aila)le in the mar6et )ringing a)out tremendous
impro,ement in ser,i(ing&
? intended to find (ustomers& Insuran(e awareness is therefore low& Unit lin6ed insuran(e produ(ts
are not a,aila)le& Insuran(e (o,ers are e>pensi,e and returns are low& Turn o,er the agent is high
INSURANCE IN INDIA
Onl+ **? of the insuran(e population has )een e>tended (o,e r& Mar6et penetration is low and the
potential to e>ploit is high& Insuran(e premium per (apita is ,er+ low& .a(6 of (omprehensi,e so(ial
s+stem )enefit and welfare means that demand for pension produ(ts is high& uge middle (lass of
appro>imatel+ 300 million&
15
#.#.C F(-(), 17 0&2('-)8
!III! H where e>(eeding e>pe(tations through inno,ati,e solutions is L our L wa+ of life
This is the (ompelling ,ision that !III! has (reated through the a(ti,e (ontri)ution of
its emplo+ees& These lines not onl+ define the wa+ the+ li,e and wor6 )ut also ser,e as a
reminder to deli,er the )est to their (ustomers and shareholders&
Em)edded in this ,ision at the (ore ,alues of integrit+1 (ustomer (entri(it+1 passion for
winning1 inno,ation and empower team that the+ ha,e (olle(ti,el+ defined and
(ommitted to wor6ing towards&
Our ,ision is to )e amongst India7s leading life insurers with a qualit+ )usiness model1
fo(used on sustaina)le growth& Je see6 to )uild a ro)ust produ(t portfolio meeting all
(ustomer life(+(le needs related to H Sa,ings1 #etirement1 In,estments and "rote(tion.
!,i,a has pioneered )an(assuran(e in the (ountr+ through its tie@ups with ** leading pri,ate and
nationalised Ban6s in the (ountr+& !,i,a also fo(uses on )an(assuran(e worldwide and has a pro,en
tra(6 re(ord of su((essful )an(assuran(e relationships& It has 40 ma
effi(ient in,estment plan with limited premium pa+ment term 8.ifeBond59& !,i,a produ(ts are modern
and (ontemporar+ unitised produ(ts that offer unique (ustomer )enefits li6e fle>i)ilit+ to (hose (o,er
le,els1 inde>ation and partial withdrawals&
!,i,a7s -und management operation is one of its 6e+ differentiators& Operating from Mum)ai1 !,i,a
has an e>perien(ed team of fund managers and the range of fund options in(ludes Unitised Jith@
"rofits -und and four Unit .in6ed funds$ @ "rote(tor -und1 Se(ure -und1 Balan(ed -und and 'rowth
-und&
!,i,a has 11* Bran(hes in India 8in(luding rural )ran(hes9 supporting its distri)ution networ6&
Through its Ban(assuran(e partner lo(ations1 !,i,a produ(ts are a,aila)le in 3BE towns and (ities
a(ross India&
!,i,a is also 6een to rea(h out to the underpri,ileged that ha,e not had a((ess to insuran(e so far&
Through its asso(iation with Basi> 8a mi(ro finan(ial institution9 and other %'Os1 it has )een a)le to
rea(h the wea6er se(tions of the so(iet+ and pro,ide life insuran(e to them&
-or three (onse(uti,e +ears in *0051 *00= and *00B1 !,i,a has had relati,el+ high s(ores on the
parameters of Credi)ilit+1 #espe(t1 -airness1 "ride and Camaraderie in the sur,e+ administered )+
'row Talent Compan+ .td& along with 'reat "la(es to Jor6P Institute1 In(& and Business Jorld
maga0ine&
1F
$.3 ORGANI?ATION STRUCTURE AND ORGANI?ATIONAL CHART
HISTORICAL PERSPECTIVE
? In #8#8 it was (on(ei,ed as a means to pro,ide for E&530'6 >021
ON
SELLING STRATEGIES ADOPTED
BY
AVIVA LIFE INSURANCE CO. LTD.
SUBMITTED TO
MAHARSHI DAYANAND UNIVERSITY, ROHTAK
In partial fulfillment of the requirements
for the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION
(INDUSTRY INTEGRATED)
(III SEM.)
SUBMITTED BY
NAME: NIKHITA BATRA
Jagannath Institute of Management Sciences
34, RING ROAD, LAJPAT NAGAR,
NE DEL!I"#4
EL$ $ODE% &33'('#())*
&Maha+ishi Da,anan- .ni/e+sit,*
0
1
CONTENTS:
C!"TE# 1$ I%T#ODUCTIO%
1&1 'eneral introdu(tion a)out the se(tor&
1&* Industr+ profile&
a& Origin and de,elopment of the industr+&
)& 'rowth and present status of the industr+&
(& -uture of the industr+&
C!"TE# *$ "#O-I.E O- TE O#'!%I/!TIO%
*&1 Origin of the organi0ation&
*&* 'rowth1 De,elopment 2 present status of the organi0ation&
*&3 Organi0ation stru(ture and organi0ation (hart&
*&4 produ(t and ser,i(e profile of the organi0ation&
*&5 Mar6et profile of the organi0ation&
C!"TE# 3$ DISCUSSIO%S O% T#!I%I%'
3&1 Student7s wor6 profile 8#ole and #esponsi)ilities9
3&* :e+ learning from training&
C!"TE# 4$ STUD; O- SE.ECTED #ESE!#C "#OB.EM
4&1 Statement of resear(h pro)lem&
4&* Statement of resear(h o)perien(e&
=&* Con(lusions and #e(ommendations&
!""E%DICES
BIB.O'#!";
*
LIST OF TABLES
Sl. No. Table
no.
Table Title Page No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
1.
1
2
3
4
5
6
7
8
9
1
Age o! "e#$on%ent#
&'ali!i(ation o! "e#$on%ent#
O(('$ation o! "e#$on%ent#
A)e"age ann'al in(o*e o!
"e#$on%ent#
Fa*il+ #i,e
A-a"ene## o! A)i)a
.i!!. $lan# in A)i)a
/0oo#ing $a"ti('la" $"o%'(t
A-a"ene## o! li!e in#'"an(e
.i#a%)antage# o! in#'"an(e
Ot0e" in)e#t*ent#
36
37
38
3
!"
!#
!$
!3
!!
!%
!6
!7
3
11. 11.
LIST OF 12AP3S 4 /3A2TS
Sl. No. Table
no.
Table Title Page No.
4
1.
2.
3.
4.
5.
6.
7.
8.
9.
1.
11.
1
2
3
4
5
6
7
8
9
1
11.
Age o! "e#$on%ent#
&'ali!i(ation o! "e#$on%ent#
O(('$ation o! "e#$on%ent#
A)e"age ann'al in(o*e o!
"e#$on%ent#
Fa*il+ #i,e
A-a"ene## o! A)i)a
.i!!. $lan# in A)i)a
/0oo#ing $a"ti('la" $"o%'(t
A-a"ene## o! li!e in#'"an(e
.i#a%)antage# o! in#'"an(e
Ot0e" in)e#t*ent#
36
37
38
3
!"
!#
!$
!3
!!
!%
!6
!7
5
CHAPTER #
INTRODUCTION
=
#.# GENERAL INTRODUCTION OF INSURANCE INDUSTRY
! well de,elopment and e,ol,ed insuran(e se(tor is needed for e(onomi( de,elopment as it is pro,ides
long term funds for infrastru(ture de,elopment and the same time strengthen the ris6 ta6ing a)ilit+&
.ife insuran(e is also now )eing regarded as a ,ersatile finan(ial planning tool in India& India )eing a
(ountr+ ha,ing a huge population of around one )illion people with onl+ 33&*? of the insuran(e
population in India possessing life insuran(e& The (ountr+ has a ,ast potential that has )een left
untapped till now&
Therefore1 what this has led to is the flooding of life insuran(e mar6et with a num)er of pri,ate pla+ers
whi(h in (olla)oration with re(ogni0ed foreign (ompan+7s promises to deli,er the )est of ser,i(es at
the least pri(e& !ll these (ompanies are tr+ing to grasp the ma>imum of mar6et share in life insuran(e
se(tor& -or that the+ are de,eloping a (hannel i&e& re(ruiting world@(lass insuran(e ad,isorsAagents who
sell their produ(ts or poli(ies& But what a (onsumer needs or what he per(ei,es a)out life insuran(e
still needs to )e answered these are some questions I ha,e tried to answer in the proed deposits1 the onl+ return would )e the amount
in,ested plus an+ interest a((rued&
(II) I- ,&+1()*5,' '*40&5 *&2 71)+,' -6)07-
On(e an insuran(e (ontra(t has )een entered into1 the insured has an o)ligation to (ontinue pa+ing
premiums1 until the end of the term of the poli(+K otherwise the poli(+ will lapse& In other words1 it
)e(omes (ompulsor+ for the insured to sa,e regularl+ and spend wisel+& In (ontrast sa,ings held in a
deposit a((ount (an )e a((essed or stopped easil+&
(III) I- .)1402,' ,*'8 ',--3,/,&- *&2 .)1-,+-01& *5*0&'- +),20-1)'
On(e a person is appointed for re(ei,ing the )enefits 8nomination9 or a transfer of rights is made
8assignment91 a (laim under the life insuran(e (ontra(t (an )e settled easil+& In addition1 (reditors ha,e
no rights to an+ monies paid out )+ the insurer1 where the poli(+ is written under trust& Under the
Married Jomen7s "ropert+ !(t 8M&J&" !(t91 the mone+ a,aila)le from the poli(+ forms a 6ind of trust
whi(h (annot )e atta(hed )+ !(t1 in(lude .ife Insuran(e
"remiums and (ontri)utions to a re(ogni0ed "ro,ident -und et(&1 se(tion 10 810D9 2 other su)@
se(tions of Se(tion E0 of the In(ome Ta> !(t&
11
#.$ * O)050& *&2 2,4,31./,&- 17 -6, 307, 0&'()*&+, 0&2('-)8
!III! is U:7s largest and the worlds 5
th
largest insuran(e group& It is one of the
leading pro,iders of life and pension produ(ts to Europe and has su)stantial )usinesses
elsewhere around the world &It has more than G5*3 )illion of assets under management&
In India !III! has a long histor+ dating )a(6 to 1E34 &!t the time of nationali0ation
goes the largest foreign insurer in India in terms of the (ompensation paid )+ the go,t&
of India&
!,i,a was also the first foreign insuran(e (ompan+ in India to setup it7s representati,e
offi(e in 1FF5&In India !,i,a has a t few +ears it is esta)lished that the Indian insuran(e se(tor will de,elop a )etter
understanding of (onsumer requirement leading to more satisfa(tion of (onsumers&
? The world (lass te(hnolog+ will )e a,aila)le in the mar6et )ringing a)out tremendous
impro,ement in ser,i(ing&
? intended to find (ustomers& Insuran(e awareness is therefore low& Unit lin6ed insuran(e produ(ts
are not a,aila)le& Insuran(e (o,ers are e>pensi,e and returns are low& Turn o,er the agent is high
INSURANCE IN INDIA
Onl+ **? of the insuran(e population has )een e>tended (o,e r& Mar6et penetration is low and the
potential to e>ploit is high& Insuran(e premium per (apita is ,er+ low& .a(6 of (omprehensi,e so(ial
s+stem )enefit and welfare means that demand for pension produ(ts is high& uge middle (lass of
appro>imatel+ 300 million&
15
#.#.C F(-(), 17 0&2('-)8
!III! H where e>(eeding e>pe(tations through inno,ati,e solutions is L our L wa+ of life
This is the (ompelling ,ision that !III! has (reated through the a(ti,e (ontri)ution of
its emplo+ees& These lines not onl+ define the wa+ the+ li,e and wor6 )ut also ser,e as a
reminder to deli,er the )est to their (ustomers and shareholders&
Em)edded in this ,ision at the (ore ,alues of integrit+1 (ustomer (entri(it+1 passion for
winning1 inno,ation and empower team that the+ ha,e (olle(ti,el+ defined and
(ommitted to wor6ing towards&
Our ,ision is to )e amongst India7s leading life insurers with a qualit+ )usiness model1
fo(used on sustaina)le growth& Je see6 to )uild a ro)ust produ(t portfolio meeting all
(ustomer life(+(le needs related to H Sa,ings1 #etirement1 In,estments and "rote(tion.
!,i,a has pioneered )an(assuran(e in the (ountr+ through its tie@ups with ** leading pri,ate and
nationalised Ban6s in the (ountr+& !,i,a also fo(uses on )an(assuran(e worldwide and has a pro,en
tra(6 re(ord of su((essful )an(assuran(e relationships& It has 40 ma
effi(ient in,estment plan with limited premium pa+ment term 8.ifeBond59& !,i,a produ(ts are modern
and (ontemporar+ unitised produ(ts that offer unique (ustomer )enefits li6e fle>i)ilit+ to (hose (o,er
le,els1 inde>ation and partial withdrawals&
!,i,a7s -und management operation is one of its 6e+ differentiators& Operating from Mum)ai1 !,i,a
has an e>perien(ed team of fund managers and the range of fund options in(ludes Unitised Jith@
"rofits -und and four Unit .in6ed funds$ @ "rote(tor -und1 Se(ure -und1 Balan(ed -und and 'rowth
-und&
!,i,a has 11* Bran(hes in India 8in(luding rural )ran(hes9 supporting its distri)ution networ6&
Through its Ban(assuran(e partner lo(ations1 !,i,a produ(ts are a,aila)le in 3BE towns and (ities
a(ross India&
!,i,a is also 6een to rea(h out to the underpri,ileged that ha,e not had a((ess to insuran(e so far&
Through its asso(iation with Basi> 8a mi(ro finan(ial institution9 and other %'Os1 it has )een a)le to
rea(h the wea6er se(tions of the so(iet+ and pro,ide life insuran(e to them&
-or three (onse(uti,e +ears in *0051 *00= and *00B1 !,i,a has had relati,el+ high s(ores on the
parameters of Credi)ilit+1 #espe(t1 -airness1 "ride and Camaraderie in the sur,e+ administered )+
'row Talent Compan+ .td& along with 'reat "la(es to Jor6P Institute1 In(& and Business Jorld
maga0ine&
1F
$.3 ORGANI?ATION STRUCTURE AND ORGANI?ATIONAL CHART
HISTORICAL PERSPECTIVE
? In #8#8 it was (on(ei,ed as a means to pro,ide for E&530'6 >021