TRAINING REPORT ON MARKETING OF LIFE INSURANCE PRODUCTS

Submitted to:

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

In partial fulfilment of the requirements For the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION (INDUSTRY INTEGRATED)

(2nd Semester) Submitted by:

Name: Thingujam Sunibala Devi

Regn.No. 1073900956 Roll No. 1090110956

ELC: Netaji Subhash Institute of Management Sciences Netaji Subhash Palace, Pitampura. New Delhi-110034 July 2011

CERTIFICATE

This is that certify that Thingujam Sunibala Devi, a student of the Maharshi Dayanand University, Rhotak , has prepared her Training Report entitled Marketing of Life Insurance Product at India First Life Insurance Co. Ltd, under my guidance. She has fulfilled all the requirements leading to award of the degree of BBA (Industry Integrated). This report is the record of bonafide training undertaken by her and no part of it has been submitted to any other University or educational institution for award of any other degree/diploma/fellowship or similar titles or prizes.

I wish her all success in life.

Signature of the Faculty guide Soumendra Roy Assistant Professor NIMS

STUDENTS DECLARATION

I hereby declare that the Training Report conducted at

INDIA FIRST LIFE INSURANCE Co. Ltd.

Under the guidance of Soumendra Roy, Assistant Professor, NIMS Submitted in Partial fulfilment of the requirement of the Degree of

BACHELOR OF BUSINESS ADMINISTRATION

(Industry Integrated)

TO MAHARSHI DAYANAND UNIVERSITY, ROHTAK

Is my original work and the same has not been submitted for the award of any other Degree/Diploma/Fellowship or other similar titles or prizes. Place: Pitampura, Delhi. Date: 20th July 2011. Thingujam Sunibala Devi Regn. No. 1073900956 Roll No. 1090110956 Student signature

ACKNOWLEDGEMENTS

My readers, this is, to whom I owe all my success and motivation in successful completion of the Management Industrial Training and preparing the Training Report.

First of all, I am very grateful to all the higher authorities of NIMS, Pitampura, particularly Mr.Soumendra Roy, Assistant Professor and Mr. Surjeet Singh Kainth, Asst.Manager-Corporate relation, for guiding me in whatever ways they can throughout the Industrial Training Process.

I would also extent my heartiest thanks to Mr. Praveen Kumar, Manager, India First Life insurance Co. Ltd. for helping, assisting and guiding me in all respect right from the very beginning till the successful completion of the Industrial Training as well as in preparing the Training Report without whose help it wont be successful.

Most importantly, I am extremely happy and owe to my colleagues, friends of NIMS and other staff members of India First Life Insurance Pvt. Ltd. For their encouragement, cooperation, support, guidance and assistance for undergoing successful management training and preparing the Training Report.

Last but not the least, I would like to thank almighty God, my parents, and my friends who helped me gather these data and have sat with me for hours discussing about the project.

Sl. No.

Table No.

Table Title (Content) INTRODUCTION

Page No.

1 1.1 1.2

General Introduction about the Insurance Industry sector Insurance Industry Profile: a. Origin and development of the Insurance Industry. b. Growth and present status of the Insurance Industry. c. Future of the Insurance Industry.

2-3 3-5 6

2 2.1 2.2 2.3 2.4 3 3.1 3.2 4 4.1 4.2 4.3 5 5.1 5.2 6 6.1 6.2

PR0FILE OF THE ORANIZATION (India First Life Insurance Co. Ltd.) Origin of the Organization. Growth, Development and Present status of the organization. Product and service profile of the Organization. Market profile of the Organization. DISCUSSIONS ON TRAINING Students work profile (Role and Responsibilities). Key Learning From Training. STUDY OF SELECTED RESEARCH PROBLEM Statement of Research Problem. Statement of Research Objectives. Research Design and Methodology. ANALYSIS Data Analysis. Summary of Findings. SUMMARY AND CONCLUSIONS Summary of Learning Experience. Conclusion and Recommendation BIBLIOGRAPHY & WEBLIOGRAPHY

7 7-8 8-13 13-14

14-15 15-16

16-17 17-18 18-20

20-21 21-22

22 22-24 25

CONTENTS: 1. INTRODUCTION. 1.1 General introduction about the Insurance industry sector:

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business (Nationalisation) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts. With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20 per cent annually. Together with banking services, it adds about 7 per cent to the countrys GDP .In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation Malhotra Committee was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was Participation of overseas insurance companies with 26% capital. Creating a more efficient and competitive financial system suitable for the requirements of the economy was the main idea behind this reform. Since then the insurance industry has gone through many sea changes .The competition LIC started facing from these companies were threatening to the existence of LIC .since the liberalization of the industry the insurance industry has never looked back and today stand as the one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run.

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1.2 INDUSTRY PROFILE a. Origin and Development of the Insurance Industry

Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of Life Insurance Corporation of India's corporate headquarters, is derived from the Rig Veda. The term suggests that a form of "community insurance" was prevalent around 1000 BC and practised by the Aryans. Burial societies of the kind found in ancient Rome were formed in the Buddhist period to help families build houses, protect widows and children. Bombay Mutual Assurance Society, the first Indian life assurance society, was formed in 1870. Other companies like Oriental, Bharat and Empire of India were also set up in the 1870-90s. It was during the swadeshi movement in the early 20th century that insurance witnessed a big boom in India with several more companies being set up. As these companies grew, the government began to exercise control on them. The Insurance Act was passed in 1912, followed by a detailed and amended Insurance Act of 1938 that looked into investments, expenditure and management of these companies' funds. By the mid-1950s, there were around 170 insurance companies and 80 provident fund societies in the country's life insurance scene. However, in the absence of regulatory systems, scams and irregularities were almost a way of life at most of these companies. As a result, the government decided nationalise the life assurance business in India. The Life Insurance Corporation of India was set up in 1956 to take over around 250 life companies. For years thereafter, insurance remained a monopoly of the public sector. It was only after seven years of deliberation and debate - after the RN Malhotra Committee report of 1994 became the first serious document calling for the re-opening up of the insurance sector to private players -- that the sector was finally opened up to private players in 2001. The Insurance Regulatory & Development Authority, an autonomous insurance regulator set up in 2000, has extensive powers to oversee the insurance business and regulate in a manner that will safeguard the interests of the insured. In 1818 the British established the first insurance company in India in Calcutta, the Oriental Life Insurance Company. First attempts at regulation of the industry were made with the introduction of the Indian Life Assurance Companies Act in 1912.

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A number of amendments to this Act were made until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were the power given to the Government to collect statistical information about the insured and the high level of protection the Act gave to the public through regulation and control. When the Act was changed in 1950, this meant far Reaching changes in the industry. The extra requirements included a statutory requirement of a certain level of equity capital, a ceiling on share holdings in such companies to prevent dominant control (to protect the public from any adversarial policies from one single party), stricter control on investments and, generally, much tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance companies. Business was heavily concentrated in urban areas and targeted the higher echelons of society. Unethical practices adopted by some of the players against the interests of the consumers then led the Indian government to nationalize the industry. In September 1956, nationalization was completed, merging all these companies into the socalled Life Insurance Corporation (LIC). It was felt that nationalization has lent the industry fairness, solidity, growth and reach. The General Insurance industry in India dates back to the Industrial Revolution and the subsequent increase in trade across the oceans in the 17th century. As for Life Insurance, the British brought General Insurance to India, and a similar path was followed in the development of this industry. A number of private companies were in existence for years and years until, in 1971, the Indian Government decided that the public interest would be served by nationalizing the industry, merging all the 107 companies into four companies, depending on the sort of business transacted (Marine, Fire, Miscellaneous). These were the National Insurance Company Ltd., the Oriental Insurance Company Ltd., the New India Assurance Company Ltd., and the United India Insurance Company Ltd. located in Calcutta, New Delhi, Bombay and Madras respectively. The General Insurance Corporation (GIC) was set up in 1972 as a holding company, having these four companies as its subsidiaries.

b. Growth and present status of the Insurance Industry:

India with about 200 million middle class household shows a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors. The insurance sector in India has come to a position of very high potential and competitiveness in the market. Indians, have always seen life insurance as a tax saving device, are now suddenly turning to the private sector that are providing them new products and variety for their choice.

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Consumers remain the most important centre of the insurance sector. After the entry of the foreign players the industry is seeing a lot of competition and thus improvement of the customer service in the industry. Computerizations of operations and updating of technology has become imperative in the current scenario. Foreign players are bringing in international best practices in service through use of latest technologies The insurance agents still remain the main source through which insurance products are sold. The concept is very well established in the country like India but still the increasing use of other sources is imperative. At present the distribution channels that are available in the market are listed below. Direct selling Corporate agents Group selling Brokers and cooperative societies Banc assurance Customers have tremendous choice from a large variety of products from pure term (risk) insurance to unit-linked investment products. Customers are offered unbundled products with a variety of benefits as riders from which they can choose. More customers are buying products and services based on their true needs and not just traditional money back policies, which is not considered very appropriate for longterm protection and savings. There is lots of saving and investment plans in the market. However, there are still some key new products yet to be introduced - e.g. health products. The rural consumer is now exhibiting an increasing propensity for insurance products. A research conducted exhibited that the rural consumers are willing to dole out anything between Rs 3,500 and Rs 2,900 as premium each year. In the insurance the awareness level for life insurance is the highest in rural India, but the consumers are also aware about motor, accidents and cattle insurance. In a study conducted by MART the results showed that nearly one third said that they had purchased some kind of insurance with the maximum penetration skewed in favor of life insurance. The study also pointed out the private companies have huge task to play in creating awareness and credibility among the rural populace. The perceived benefits of buying a life policy range from security of income bulk return in future, daughter's marriage, children's education and good return on savings, in that order, the study adds. Today the insurance sector is a major global industry covering a huge range of risk ranging from natural disaster and environmental hazard, through life and disability and standard property risk (fire, explosion, burglary, and so forth) to various types of liability under tort and civil code to protecting the balance sheets of credit granting instituting. In the latter case the sector has developed overlaps with, and become the backstop for significant sections of the banking and shadow banking sectors. India emerged as 11th largest insurance market in the world by surpassing Spain. Indian insurance market has jumped 10 places in last decade but Indian companies are yet to leave Page No. 4

An impression on global insurance market due to their localized operations, The Times of India said citing a report on world insurance markets in 2010, compiled by Swiss Re. World's total premium volume surged to 2.7% to $4339bn in 2010-11 after it fell drastically due to global economic downturn. While premium volume in India grew by 4.91% in the same period, which was more than double of the growth recorded by global markets following the decline in global markets, the report added. During the last decade, the life insurance business alone in India has accelerated above major markets in the world including Australia, Switzerland, Spain, Belgium, Sweden, Ireland, Netherlands, Canada, South Africa and Taiwan, the paper said."India per se is a strong savings economy and insurers have tried to capture this aspect by designing products around savings. And in order to render higher return they have designed products that are riding on the performance of other financial markets," Partner Ernst & Young Ashvin Parekh told the newspaper. "From 2000 onwards, the Indian insurance market has grown seven times. But at the same time the number of companies has grown four fold with around 45 insurance companies," Director of Deloitte India Monish Shah said. Thus, we notice a steady high growth rate of the Indian Insurance Industry during the past decade and it will continue to do so as it is the boom period of the Indian Insurance Industry.

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c. Future of the Insurance Industry:

The Indian insurance industry is set to grow in future on the back of improving education level, tax exemptions and high growth in economy.

Oriental Insurance Company, a leading insurance providing company in India, revealed that the Indian general insurance industry is expected to reach Rs 50,000 Crore (US$ 11.75 Billion) during 20092013, compared to Rs 28,130 Crore (US$ 6.52 Billion) in 2007-08, as reported by INDIA TIMES The Indian insurance industry also estimated that during 2008-09, the state-owned general insurance companies are aiming to touch the total premium income of around Rs 20,000 Crore (US$ 4.70 Billion), a 23% jump from Rs 16,259 Crore (US$ 3.82 Billion) in 2007-08. In 2007-08, the total premium covered by non-life insurance companies in India was Rs 28,126.29 Crore (US$ 6.61 Billion) against Rs 24,998.41 Crore (US$ 5.87 Billion) in 2006-07. According to market experts, tax benefits such as exemption of service tax on health insurance and personal accident insurances, encouragement to growth of independent agents together with abolition of sealing on commission plus the right to policy planning would be the key reasons for the projected growth in the Indian insurance industry. The insurance industry is also focusing on generating insurance development skills and is providing liberalized standards for the creation of intermediaries to enhance the insurance services that would help in achieving high growth in years to come. Moreover, the detariffing will initiate the launch of latest and innovative insurance products and exploitation of vast untapped insurance market would boost the revenue growth because the number of insurance companies is growing in India. The growth in the Indian insurance industry is also anticipated because the insurance sector is expected to pay an additional focus on micro and retail insurance in villages, which offers an extensive growth opportunity to players. Also, the rising education level accompanied by the booming economy ensures that the insurance market attracts an increasing number of customers. The growing population with improving purchasing power, encouraging to purchasing homes and automobiles, is offering great scope for growth in Indian insurance market. Thus, the insurance industry in India is expected to grow at a rapid pace in future due to favourable business conditions in the country. The vast growth opportunities would help in attracting more foreign investors in the insurance sector. This would further help in the improvement of quality of the insurance products and schemes in the country.

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2: PROFILE OF THE ORGANIZATION

2.1 Origin of the organization:

India First Life Insurance is the youngest life insurance company in India with a rich legacy of over 360 years of combined service of its promoters - Bank of Baroda, Andhra Bank and Legal & General. This joint venture brings together a real understanding of the Indian consumers by the promoter banks with international best practices developed by Legal & General. Shri. Pranab Mukherjee, Honourable Finance Minister, Government of India launched our nationwide operations in Delhi in March, 2010. Headquartered in Mumbai, with a capital base of Rs. 455 crore we are one of the most capital efficient life insurance companies in the industry today. Bank of Baroda holds a 44 per cent stake in India First, while Andhra Bank and Legal & General hold a 30 per cent and 26 per cent stake respectively.

2.2 Growth, Development and Present status of the Organisation:

The company have already achieved substantial progress during our first year of operation. We set up new benchmarks in banc assurance in terms of branch activisation, productivity and customer friendly sales processes. They aim to place our customers First in everything we do and believe we can differentiate ourselves through simple, easy to understand products, fair price, high quality service and honest advice. They have initially focused on the banc assurance model leveraging the existing branch network of over 4,800 branches of our promoter banks across the country. They plan to further strengthen our distribution reach by launching our alternate channel of distribution. This combination of domain expertise, customer knowledge, product innovation and nationwide reach has helped us cross the Rs. 500 crore mark in new business premium within 500 days of our operations and cover over 1.2 million lives across more than 1000 cities and towns in India.

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The companys initial product range covers the typical needs of protection (term insurance), savings, education and retirement. They also have a wide range of group insurance products ranging from credit life, term and employee liability (gratuity and leave enchasement) plans. They have been following this with a whole range of health, pension and wealth accumulation plans short. The Vision of the Company Become a life insurance and pension business leader in providing significant value for all stakeholders through true customer delight. Promoters of the Company Bank of Baroda is one of the largest public sector banks in the country with an enviable network of over 3050 branches that spreads across the geography of India and over 70 branches across 22 countries globally. This behemoth financial institution is over 100 years old and has been built on financial prudence, corporate governance and most importantly the trust of valuable customers like you. Andhra Bank has been serving the Indian customer for over 85 years and currently has a network of over 1557 branches. The bank has developed best in class deposit and lending schemes for its valued customers. Both the banks are nationalized and provide best in class products and services to their customers. Legal & General is one of UK's leading financial institutions with a heritage of over 150 years. It provides life assurance, pensions, investments and general insurance plans to over 5.5 million customers across UK. It brings rich fund management and insurance experience to India.

2.3 Product and Service Profile of the Organisation:

Life insurance is a very important aspect of financial planning that needs to be chosen carefully. Hence they offer you simple, easy to understand life insurance plans that are customized to fulfil your diverse needs at various Life Stages. The Companys product range covers the typical needs of protection (term insurance), savings, education and retirement. As for instance, among the various products that can be mention, they have Smart Save Plan, Young India Plan, Life Plan, Anytime Plan, and Secure Page No. 8

Save Plan, Annuity Plan, Group Team Plan, and Group Credit Life Plan and so on. They also have a wide range of group insurance products ranging from credit life, term and employee liability (gratuity and leave enchasement) plans. We also plan to shortly introduce a whole range of health, pension and wealth accumulation plans. Some of these products are explain as below: 1. India First Smart save Plan offers you an insurance cover on your life and additionally helps you grow and develop a body of wealth through market linked investments. We help you save systematically and provide you different options to invest your savings in funds, on the basis of your risk appetite. The life cover promises the sum assured in case of the life assureds unfortunate demise. Key Features

You can build your savings systematically, through investments in various funds. The plan also offers a life cover in case of the life assureds untimely death. You have the option to invest in 5 funds across different asset classes, where you choose the proportion of your investments based on your risk appetite. You can make the most of your investments by switching or redirecting your premium from one fund to another. You get easy access to your money by being able o withdraw partially. Under Section 80C you can enjoy tax benefits on the premium you invest. You also get tax benefits on the benefits you receive at maturity of your plan, under Section 10(10D). Risk Factors

The premiums paid in unit linked plans are subject to investment risks associated with capital markets. The value of the units may go up or down based on the performance of the fund. Other factors influencing the capital market also affect the value of the units. Hence you, as the policyholder are responsible for all your decisions. None of our funds offer a guaranteed or assured return. The past performance of our other funds does not necessarily indicate the future performance of any of these funds. 2. India First Young India PlanKey Features

Your child or loved one will receive funds at every momentous occasion in his/ her life as planned by you - be it high school/ college/ professional course or any other life events! Page No.9

You have an insurance cover on your life which ensures that your loved ones receive a lump sum amount (sum assured) in case any unfortunate event results in the life assureds death. The family gets additional financial security even if any unfortunate event result in the life assureds death/ disability. We will do this by paying the remaining premiums into the plan or directly to you. You can opt for the beneficiary to receive the fund value at maturity even if the sum assured has been paid out, in the unfortunate event of the life assureds demise. You can make the most of your investments by switching from one fund to another. You get easy access to your money by being able to withdraw partially. Under Section 80C and 10(10) D you can enjoy tax benefits on the premium you invest. Risk Factors

The premiums paid in unit linked plans are subject to investment risks associated with capital markets. The value of the units may go up or down based on the performance of the fund. Other factors influencing the capital market also affect the value of the units. Hence you, as the policyholder are responsible for all your decisions. None of our funds offer a guaranteed or assured return. The past performance of our other funds does not necessarily indicate the future performance of any of these funds.

3. IndiaFirst Life PlanKey Features

Enjoy a life cover for a period of up to 30 years at a reasonable price. The life assureds family is secured, as they get an assured lump sum benefit immediately, in case of the life assureds untimely death. You may decide the life cover amount and the period of coverage, based on your income and age. You also have the option to pay monthly, six monthly, yearly or lump sum as a single pay for the whole plan period. You can choose a life cover between Rs. 5 lakhs and Rs. 20 crores based on your need. Under Section 80C you can enjoy tax benefits on the premium you invest. Your family also gets tax break on the benefits they received from your plan under Section 10(10D). Risk Factors

There is no maturity or survival benefit payable under this plan. This is a non participating pure term assurance plan. Page No. 10

4. IndiaFirst Anytime Plan-

Key Features

Enjoy a life cover for a period of up to 30 years at a reasonable price. The life assureds family is secured, as they get an assured lump sum benefit immediately, in case of the life assureds untimely death. There are no intermediaries involved. You can now get your life cover anytime and anywhere. You also have the option to pay monthly, six monthly, yearly or lump sum as a single pay for the whole plan period. You may choose a minimum life cover of Rs. 10, 00,000 and a maximum cover of Rs. 49,00,000. Under Section 80C you can enjoy tax benefits on the premium you invest. Your family also gets a tax break on the benefits they received from your plan under Section 10(10D). Risk Factors

There is no maturity or survival benefit payable under this plan. This is a non participating pure term assurance plan. 5. IndiaFirst Simple Life Plan-

Key Features

Enjoy a life cover for a period of 5 or 10 years at a reasonable price. The life assureds family is secured, as they get an assured lump sum benefit immediately, in case of the life assureds untimely death. You may choose a sum assured between Rs. 5,000, Rs. 10,000 and Rs. 50,000. Risk Factors

There is no maturity or survival benefit payable under this plan. This is a non participating pure term assurance plan.

6. IndiaFirst Secure Save plan- offers you an assured amount plus additional returns in the form of bonus declared by the company. We will pay the sum assured plus all bonuses paid till date in case of the life assureds untimely demise, ensuring the financial security of his/ her loved ones. Page No. 11.

Key Features

You can build your savings systematically, through regular premium contributions based on your income and needs. The plan offers a death benefit equal to the basic sum assured in case of the life assureds untimely demise. The death benefit along with the simple reversionary bonus accumulated (till death) and additional sum assured as per the term rider (if chosen) will be paid out. The basic sum assured along with simple reversionary bonus and terminal bonus, if any will be paid at the end of the plan term. Under Section 80C you can enjoy tax benefits on the premium you invest. You can also get tax benefits on the benefits you receive at maturity of your plan, under Section 10(10D). The simple bonus to be declared every financial year end depends upon the surplus generated under this and any similar kind of product. The bonus rate may vary from time to time.
Risk Factors

The simple bonus to be declared every financial year end depends upon the surplus generated under this and any similar kind of product. The bonus rate may vary from time to time.

8. Money Back Health Insurance PlanKey Features

The cost of health cover will be guaranteed for the first year and thereafter will be reviewed every year Reimbursement of all other medical expenses not covered in the hospitalization benefit, by creating a fund for you and your family You have the option to invest in 5 funds across different asset classes, where you choose the proportion of your investment based on your risk appetite You can make the most of your investments by switching or redirecting your premium from one fund to another Under Section 80D you can enjoy tax benefits on the morbidity premium you paid and also get a benefit under Section 80C for premium contribution allocated towards your market linked fund. You can also get tax benefits on the benefits you receive at maturity of your policy, under Section 10 (10D) Page No. 12

Risk Factors

The premiums paid in unit linked plans are subject to investment risks associated with capital markets The value of the units may go up or down based on the performance of the fund Other factors influencing the capital market affect the value of the units. Hence you, as the policyholder are responsible for all your decisions. None of our funds offer a guaranteed or assured return. The past performance of our other funds does not necessarily indicate the future performance of any of these funds

2.4 Market Profile of the Organisation:

The Company have already achieved substantial progress during their first year of operation. They have set up new benchmarks in banc assurance in terms of branch activisation, productivity and customer friendly sales processes. They aim to place our customers First in everything we do and believe we can differentiate ourselves through 3 Below is a quick glance on how the India First Life Insurance Company has been received through their customers in our first year.

Industry Ranking

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3. DISCUSION ON TRAINING:

3.1 Students Work Profile (Roles and Responsibilities):

The student whose work profile is Sales executives are responsible for the maximization of sales for a companys products. They must help in the turnover of sales and provide datas regarding changes required in the product to meet customer standards. The students are the people who reach towards the customer directly. They should have Strong Communication skills with strong business related knowledge. The ability and desire for sales with a confident and determined approach is also a must. Highly self motivated and ambitious in achieving goals are desirable. Should possess the skill to work both in team and also perform independently. They should be capable of thriving in the competitive markets. Last but not the least; the candidate should have some work experience in facing the customers.

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Besides these the following responsibility is al so necessary: a. Maintain and develop good relationship with customers through personal contact or meetings or via telephone etc. b. Must act as a bridge between the company and its current market and future markets. c. Display efficiency in gathering market and customer info to enable negotiations regarding variations in prices, delivery and customer specifications to their managers. d. Help management in forthcoming products and discuss on special promotions. e. Review their own performance and aim at exceeding their targets. f. Record sales and order information and report the same to the sales department. g. Provide accurate feedback on future buying trends to their respective employers.

3.2 Key learning from Training:

Selling insurance is a tough job. While almost everyone needs insurance, no one actually asks for insurance or buys it on his own. Added to the problem, many times customers want to buy life insurance for the wrong reasons. Tax breaks, short term gains, commission pass backs are the hooks some sales people use to catch their customers. Life insurance needs to be bought only for financial protection against life time risks of living too long and dying too young. Chosen carefully and invested for long term, life insurance does offer sensible protection against financial risks. You must clearly know what you are buying, why you are buying, how much you are paying and the conditions in which you can get your benefits. A well trained, service oriented ethical sales person can tell you all this clearly and still make a sale. We believe our partner banks have that ability and intention to deliver such honest advice. We also believe our carefully selected and reasonably trained insurance advisors can also do the job effectively. But we are putting in place checks and balances. A sales person, be a banker or an independent advisor may sometimes commit mistakes knowingly or unknowingly. He may not have the time or opportunity to present the full picture. He may forget to inform you that its a long term product and premiums need to be paid regularly to get the full benefits. Page No. 15

Insurance is in a manner of speaking the last frontier in the financial sector to open. It is also a sector, which leads to benefits across the full spectrum, from the individual who now have wider choices, to the economy, which see increased savings, to the infrastructure sector, which can look forward to long term funding being available. In an under-insured economy, newer channels of distribution have to be utilized to intensify the reach of insurance both in urban and rural markets. This will create huge employment opportunities not only within insurance companies but also as agents and consultants of insurance companies. The level of demand is latent and will have to be activated considerably. The market needs to be developed. Greater awareness of insurance and the need to have it as a protection tool rather than as a tax planning measure needs to be appreciated by the Indian people. Various communication tools including advertising, direct marketing and road shows contribute to all this and different companies take different approaches on these.

4. Study of selected research Problem:

4.1 Statement of research problem (Problems faced by the Insurance Company in India):
1. Factors in the economy, risk management, keeping costs low and retaining business in a competitive market are issues insurance companies face on a regular basis, according to Price Waterhouse Coopers. Uncertainty regarding the economy along with changes in how people do business keep this industry on its toes as it strives to meet the demands of consumers and ensure long-term success. 2. Price Waterhouse Coopers stated that instead of seeing collapsing assets, insurance companies have to deal with problems relating to collapses in hedge funds , structured securities and equities, according to the company's "Top Nine Insurance Industry Issues in 2009" publication. As a result, credit markets seized sales in life insurance policies dropped, asset management fees lowered and bond and mortgage insurers lost significant amounts of capital. In an effort to hold on to whatever funds they have, insurance companies are doing what they can to deny claims, pay less in settlements and defend their claim decisions in court, a battle that can take several years, according to a 2007 CNN article.

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3. Companies that offered whole and term life insurance began offering "market-sensitive" products in an effort to expand product portfolios, according to Price Waterhouse Coopers. This gave policyholders competitive returns and gave Insurance companies an edge in the financial service market. Consequently, reserve calculations are subjective, more complex and the investment portfolios require more attention in order to manage them so returns and cash flow align with future liabilities. Market sensitive products that involve long- and short-term investments for companies that sell life insurance are seeing low returns. As a result, insurance companies need to look at other avenues to ensure solvency and increase retention efforts. 4. Cost cutting efforts can have devastating consequences to insurance companies, but is an issue they face in an effort gain capital. Insurance companies, as they determine which costs to cut, must look at forces behind costs. This helps them ensure a cut in one area does not increase the cost in another, which can make an insurance company less competitive. For example, cutting employee benefits reduces employee retention, or cuts in staff can lead to long turn-around times. Financial Web states that as insurance company costs increase, their capital decreases. Additionally, insurance companies face difficulties when it comes to creating improvement plans that reduce costs when the plans lack a basis in resources, priorities, dependencies and the integration of the human element, such as training, communication and performance management.

4.2 Statement of research objective:

Every business has risks but insurance companies do get a bigger share of these unwanted possibilities. Anyone who's had to be screened for a policy knows that specific criterion are used in determining the chances of being approved or the actual price of premiums to be paid. This is because the more an individualist likely to use coverage, the higher the risk that the insurer incurs losses. And since insurance companies are business entities that need to make money, they will have a natural aversion to individuals who are likely put them at risk as away of ensuring their survival. One of the ways insurance companies determine risk is by using mortality tables. For SelfInsured Medical Plans, for example, an age group that has higher mortality will be required a higher premium or denied altogether. Meanwhile, individuals who belong to the bracket where mortality is low enjoy low fees. Providers also use past experiences with policy holders in gauging whether or not a person is insurable or not. A basic example is someone who has had a number of operations performed on him. Most probably, this person is going to have another operation and then another. An insurance company which gives him coverage is, thus, very likely to incur losses while providing for his medical needs which are very likely to surface again and again.

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When the losses are small, they are easily and automatically covered by all insured individuals. However, when the losses are big, this is when insurance companies become, to a degree, unstable. This is also the reason why they have to be extra discerning in detecting risks. Providers partner with re-insurance companies as a way of cushioning eventualities. This only means the risks are spread and part of them is managed by the reinsurance firms to ensure the insurer's survival in the case of huge claims. There are a number of risks that insurance companies face but the largest and most obvious of these are the risk for underwriting losses. When a policy holder claims coverage that is worth more than the amount that he has been paid for the policy, an underwriting loss occurs. When underwriting losses balloon, they could actually cause the company to be unstable or worse, dissolved. Although insurance companies may feel like heroes for saving people from covered expenses, they are not to be taken in the wrong context. Before the service aspect is still the fact that insurers are around for business reasons, that is, to make money. Therefore, people should understand why laxity is jut not possible when these providers categorize insurable and non-insurable individuals. It must be understood that careless management of risks could well cost an insurance company its survival. If you're considering getting insurance and would like to inquire about the possibilities, a Missouri insurance agent could tell you more about Self-Funded Medical Plans, Group Life and Disability and other options you may explore.

4.3 Research Design and Methodology:

DESING OF THE STUDY:

Objectives: To know how Insurance companies sales their Policies. To understand what is marketing.
EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH:

The research is primarily both exploratory as well as descriptive in nature. The sources of Information is both primary & secondary. A well-structured questionnaire was prepared and personal interviews were conducted to collect the customers perception and buying behaviour, through this questionnaire. Page No. 18

Limitations: The project is limited to the marketing strategies of some of the well known companies like LIC, HDFC Life, India First life Insurance Co. Ltd. and so on. Time, length, and depth of the study are limited as per the requirements of Maharshi Dayanand University, Rohtak. Scope: The project begins with a brief mention of what MARKETING is and its need and importance in Insurance Companies. It further goes on to show the challenges faced by the Insurance Companies.

Methodology of study: Data for the project is obtained from secondary source Secondary sourceSecondary data for the project has been gathered from various Marketing & Insurance books and internet. The period of study was from 3rd May to 15th July, 2011.

SIGNIFICANE FOR THE RESEARCHER:

To facilitate and provide all the useful information of the study, the company, the insurance Industry and also provide marketing ways, methods of First India Life Insurance Co. Ltd.

SCOPE OF THE STUDY:

A big boom has been witnessed in Insurance Industry in recent times. A large number of new players have entered the market and are vying to gain market share in this rapidly improving market. The study deals with Indian First Life Insurance Co. Ltd. in focus and the various Page No. 19

segments that it caters to. The study then goes on to evaluate and analyses the findings so as to present a clear picture of trends in the Insurance sector.
SIGNIFICANCE TO THE INDUSTRY:

This is a limited study which takes into consideration the responses of 100 people. This data can be exported to take in the trends across the industry. The significance for the industry lies in studying these trends that emerge from the study. It is a rapidly changing and evolving sector. People are only beginning to wake up to its vast possibilities. A study like this can attempt to guide the future of the industry based on current trends.

5. Analysis:

5.1 Data analysis:

Some of the important milestones (Data) in the life insurance business in India are: 1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning. 1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the 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. 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 are 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 crores 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. Page No. 20

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 up. 1972: The General Insurance 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.

5.2 Summary of Findings:

The key findings are briefly summarized through the following few Points: Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost. Maximize mobilization of people's savings by making insurance-linked savings adequately attractive. Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds to be deployed to the best advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return. Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders. Act as trustees of the insured public in their individual and collective capacities. Meet the various life insurance needs of the community that would arise the changing social and economic environment. Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy. Page No. 21

Promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective.

6. Summary and Conclusions:

6.1 Summary of learning experience:

The mind blowing first impression, that I had experience on the first day of my management training in India First Life Insurance Company, went on till my last day in the company. I got the opportunity to interact different people with various job profiles. I had also experience a numerous sets of activities in the field of marketing where I was allotted a certain roles and responsibilities to interact with the customers. The field works, as for instance advertising the insurance products to the new customers was one of the best learning which I have really enjoyed. The whole training session was very valuable. It taught me many things in the field of Insurance Industry, which is a booming industry in todays world. Most importantly, the marketing skills that I have learnt during the training session will remain unforgettable. I believe that the Training session will improve my future endeavour.

6.2 Conclusion and Recommendation: Conclusion:

There are many aids of marketing of products but the challenges are also there. The external environment of insurance market changes time to time, the customer expectations are increased, they need good technology services at quick.

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The aim of marketing of insurance product is to create customer and generate profit through customer satisfaction. The insurance marketing focuses on the formulation of an ideal mix for insurance business so that the insurance organization survives and thrives in the right perspective. The government policy changes and low productivity and high cost of agency organization, Illiteracy of people many challenges, by giving high technology services to the customer, giving special training to the agents so that they can convince the customers in rural areas. The marketing of insurance really helps the companies and customers to know what type of insurance are in the market. So in todays world MARKETING is the life of Insurance companies Our exhaustive research in the field of Life Insurance threw up some interesting trends which can be seen in the above analysis. A general impression that we gathered during Data collection was the immense awareness and knowledge among people about various companies and their insurance products. People are beginning to look beyond LIC for their insurance needs and are willing to trust private players with their hard earned money. People in general have been impression by the marketing and advertising campaigns of insurance companies. A high penetration of print, radio and Television ad campaigns over the years is beginning to have its impact now. Another hearting trend was in terms of people viewing insurance as a tax saving and investment instrument as much as a protective one. A very high number of respondents have opted for insurance for such purposes and it shows how insurance companies have been successful to attract public money in recent times. The general satisfaction levels among public with regards to policy and agents still requires improvement. But therein lies the opportunity for a relative new comer like India First Life Insurance Company Ltd. LIC has never been known for prompt service or customer oriented methods and India First Life Insurance Co. Ltd. can build on these factors.

Recommendation:
- As the people think that insurance is a tool to protect their family & a tax saving device. They are aware of the fact & realizing its, importance. The company should try to expand & build up its infrastructure because there is a large potential for insurance in India.

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- Company should come up with its branch in Chennai. With the objective and goals to meet the demands& expectations of the public. Because the entrance of private players will increase the competition and it would be a tough task to secure a good position in market. - Since HDFC Standard Life Insurance Company Ltd is leading with several companies policies it should be easy for them to penetrate into the market and secure a good position if they pay greater attention to the service part provided to their customer and thereby forming a long and trusted relationship.

- As seen from the survey that at present 70% of the customer are having insurance policy out of which 87.5% of the customer are planning for new investments. So it can be a good potential for the company and they should make an attempt to trap these customers. 43% of the customer is even ready to go for insurance if a service provider away from their home is providing it. But intend they should provide good products and services. The company should try to convince these customers and get them in its favour.

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BIBLIOGRAPHY:

- Insurance principles and practices - M .N. Mishra -Marketing in Banking & Insurance - Romeo Mascarenhas -PRINCILES & PRACTICES OF LIFE /GENERALINSURANCE, by AIMA. -Books published by INSURANCE INSTITUTE OF INDIA -LIFE-INSURANCE, by Mc GILL -INSURANCEWATCH.

WEBLIOGRAPHY:
www.google.com www.wikipedia.com www.licindia.in www.indiafirstlife.com

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