...complex modern world since risk, which can be insured, has increased enormously in every walk of life. This has led to growth in the insurance business and evolution of various types of insurance covers. This research aims at determining consumers’ attitudes towards buying life insurance products and to understand their purchase and repurchase intention. This research was conducted in Bhubaneswar of Odisha taking a sample of 75 LIC and other private insurance customers. Respondents for this survey were selected using random sampling. The survey was done by all our group members. The analysed data has been presented in the form of table, bar graphs and pie-charts. This study also analyzed the repurchasing intention of policy holders. The survey revealed that LIC has a major market share than others. LIC is the most accepted and popular brand in life insurance, the market share of private insurers are gradually increasing with people trust and better services offered by them are some of the main findings of the study. Insurance companies should spread more awareness about life insurance, reduction in premium amount and giving more...
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...Comparative study of LIC of India & private Life Insurance companies in India. Introduction: The Indian life insurance industry has its own origin and history, since its inception. It has passed through many obstacles, hindrances to attain the present status. Insurance owes its existence to 17th century England. In fact, it took shape in 1688 at a rather interesting place called Lloyd's Coffee House in London, where merchants, ship-owners and underwriters met to discuss and transact business. The first stock companies to get into the business of insurance were chartered in England in 1720. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston. In 1759, the Presbyterian Synod of Philadelphia sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. Life insurance in its modern form came to India from England in 1818 with the formation of Oriental Life Insurance Company (OLIC) in Kolkata mainly by Europeans to help widows of their kin. Later, due to persuasion by one of its directors (Shri Babu Muttyal Seal), Indians were also covered by the company. However, it was after 1840 that life insurance really took off in a big way. By1868, 285 companies were doing business of insurance in India. Earlier these companies were governed by Indian company Act 1866. By 1870, 174 companies ceased to exist, when British Parliament enacted Insurance Act 1870. These companies however, insured...
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...insurance companies and provident societies worked at that time, merged together to form LIC of India. It has got wide and huge network of Insurance agents and distributors which made them popular amongst the most remote areas of India. As it belongs to public sector, it is the most trusted insurance company in India. Since 2001, LIC of India was the monopoly power in Insurance industry on India. In 2001, private insurance companies are allowed to enter the insurance sector in India. But LIC tried to maintain its market leadership through renewing and transforming its strategy. Its huge presence in both urban and rural markets is their major core competency. The products if LIC are very simple and customer friendly, so that even illiterate people could understand the policy through explaining. Its products are mainly concentrating on all the needs and demands of the customers such as, protection, life cover, savings, investments, endowment plans, women plans, child plans, micro- insurance plans etc. The major subsidiaries are LIC housing finance, LIC Nepal, LIC Lanka, LIC International, BSC etc. (www.myinsuranceclub.com). The intervention of more than 20 private insurance companies such as Bajaj Allianz, ICICI Prudential, HDFC Standard Life, MetLife, etc in to the frame, had affected the market and revenue of LIC Ltd. The new companies were offering better products with better returns. The LIC ltd was concentrating more in traditional long term policies, which gives good life cover...
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...2014 • ISSN No 2277 - 8160 Research Paper Economics Insurance Sector in India: Challenges and Opportunities Dr. NARESH RAMDAS MADHAVI ABSTRACT Associate Professor and Head Department of Economics Mahatma Phule A. S. C. College, Panvel, Dist. - Raigad Insurance sector in India is one of the growing sectors of the economy. India’s growing consumer class, rising insurance awareness, increasing domestic savings and investments are among the most critical factors that have positively driven the market penetration of the insurance product among its consumer segments. Both the life and non-life insurance in India, which were nationalized in the 1950s and 1960s respectively, which were liberalized in 1990s. Since the formation of IRDA and the opening of the insurance sector to private players in 2000, the Indian insurance sector has witnessed rapid growth. The opening up of the insurance sector has led to rapid growth of the sector. The total premium of the insurance industry has increased at a CAGR of 24.6 percent to reach INR 2,523.9 billion in 2009 KEYWORDS : Life Insurance, LIC, IRDA, Private Insurance Companies Introduction: The economic reforms initiated in the early 90s paved the way for the growth and opening up of the financial sector, which led to a sustained period of economic growth. The insurance industry was opened up for private players in 2000, and has seen tremendous growth over the past decade with the entry of global insurance majors. India is fast...
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...policies so that secure their families against uncertain events. Insurance is the primary risk management device that protect against risks, hazards or dangers to life and property. Life Insurance Corporation of India is one among the successful public sector organization in India with 80% market share in life insurance sector. With the opening up of the insurance sector, a number of private players entered into the market. The new players with their focused approach and need based selling captured significant chunk of the insurance market. With this background a survey was conducted among 300 policy holder in Urban and Semi Urban centers to study policy holder perception towards LIC of India. Majority of the policyholders is influenced by self-followed by agents while taking an insurance policy from LIC, significant number of policyholders felt that the premium rate is high, majority of the sample policyholders prefer to buy money back policy and policyholders expected a return of 11-15 percent from their investments. Keywords: Insurance, Perception, Policyholder, Semi-Urban, Urban. 1. Introduction Life is full of risks, being a social animal and risk averse, man always tries to reduce risk. An age-old method of sharing of risk through economic cooperation...
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...SHREE DAMODAR COLLEGE OF COMMERCE & ECONOMICS G. R. KARE ROAD, MARGAO - GOA INSURANCE SECTOR IN INDIA: THE PARADIGM SHIFT Meenakshi Bawa Lecturer, Department of Economics, M.E.S. College of Arts & Commerce, Zuarinagar, Goa The rapidly growing economic scene, the political attitude, cultural patterns, social values and rapid development in the Information Technology sector have brought about a significant transformation in the lifestyles in the urban and rural areas of our economy. These changes have introduced an element of uncertainty in the possible developments in all sectors; at the same time, the insurance sector also cannot remain untouched. In the present era of globalization, insurance companies face a dynamic global business environment. Radical changes are taking place due to the internationalization of activities, the appearance of new risks, new types of covers to match these new risk situations and innovative ideas on customer service. The low growth rates in developed markets, changing customer needs and the highly uncertain economic conditions in the developing world have been exerting pressure on insurers’ resources while testing their ability to survive. The globalization process has opened up new service markets to provide developing nations with opportunities for the expansion of trade and economic growth. Insurance has always been a politically sensitive subject in India. In fact, until 2000, the insurance industry was a government monopoly. But thereafter...
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...TOWARDS ENDOWMENT POLICY OF LIFE INSURANCE CORPORATION OF INDIA AT PERAMBALUR DISTRICT QUESTIONNAIRE I. DEMOGRAPHIC PROFILE 1. Name (Option) 2. Age : : Below 20 51 – 60 3. Sex 4. Level of Education : : Male 21 to 30 31 to 40 41 to 50 61 and above Female Graduate Professional Below School level Post Graduate 5. Marital status 6. Monthly Income : : Married Unmarried Rs.5001-10000 Rs.15001-20000 Below Rs.5000 Rs.10001-15000 Rs.20001 & above 7. Type of Family 8. Occupational status : : Joint Government Student Nuclear Private Housewife Business Farmers II. FACTORS INFLUENCING POLICY HOLDERS 1. Reasons for preference of LIC? Reliability Financially sound Customer oriented Well managed Other facilities New schemes cum attractive bonus Savings 2. Level of awareness of the various types of Endowment plans in LIC? Very High High Moderate Low Very Low Q2 3. The source of buying Endowment Policy? Agent Development officer Direct 4. Number of Endowment Polices taken so far? One Two Three More than Three 5. Periodicity for payment of Premium? Monthly Quarterly Half Yearly Yearly 6. S. No. Which type of Endowment policy you have chosen? Specify the year/period? Sum Annual Assured/Period Premium Mode of pay Monthly/Quarterly/ Half-yearly/Annually Endowment plans New Janaraksha Jeevan Anand Endowment with profits Marriage Endowment / Education Annuity with profits Jeevan Chhaya Limited Payment with profits Jeevan Saathi 7. What...
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...GENERAL INSURANCE 'Looks to the future with confidence and optimism' 1. Brief the history of General Insurance. In India General Insurance business started, Marine Insurance started on the later part of the 17th century. Before nationalization in 1947 we have 147 insurance companies, foreign and Indian both. But during there nationalization, in 1973 we have 107 companies that merge into four companies, i.e. taken over by Government. General Insurance Corporation of India (GIC) was set up in 1973 as a holding company, with four subsidiary operating companies- National Insurance co. Ltd., New India Assurance Co. Ltd., New India Assurance Co. Ltd., oriental Insurance co. Ltd. and United India Insurance Co. Ltd., with a clear cut mission as set out in the Act. 2. What is the overall scenario in the insurance market in India after nationalisation? GIC and its subsidiaries function through a vast country - wide network of around 4100 offices spread across the length and breadth of the country, GIC has taken the benefit of insurance to almost every district, across hilly terrain and often inaccessible areas of the country. The customer- interface is made easy through a network of agents, development officers and employees at Branch, Divisional and Regional offices as well as at the corporate level. The GIC and its subsidiaries have a workforce of approximately 86,000 in 1973 tainted at various levels through in house training institutions. Now the total number of employees...
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...SUMMER INTERNSHIP PROGRAM-2012 A Report On Brand Equity of IDBI Federal Life Insurance Co Ltd. Submitted by: Chetan Paranjpe 11BSPHH010239 Project Report On Brand Equity of IDBI Federal Life Insurance Co Ltd SUBMITTED TO Faculty Guide: Company Guide: Prof. G Radha Krishna Mrs. Shanthi Yagyanath IBS Hyderabad Assistant Branch Head IDBI Federal AUTHORIZATION This project has been prepared under the guidance of Mrs. Shanthi Yagyanath, Assistant Branch Head, IDBI federal Life Insurance and Dr. Radha Krishna, Faculty Guide, IBS Hyderabad. This Report is been submitted as a partial fulfillment of MBA program of IBS Hyderabad ACKNOWLEDGEMENT I would like to take an opportunity to thanks all those who have made working on this project feasible for me. I would like to thank IDBI federal for providing me with the opportunity to work for them and giving me the taste of my first corporate and professional world. It gave me an opportunity to understand real life situation and implement those things which I had earlier come across only in textbooks as a part of my course. I would like to extend my sincere gratitude to Mrs. Shanthi Yagyanath for allowing me to work...
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...Organization of mental health services is an important factor influencing the effectiveness of these services and also influences the aims and objectives of the mental health policy. Several variables are associated with increase the likelihood of mental health care use; they include sociodemographic variables (e.g. gender, age, sex, race and educational level), access variables (employment, urban residence and health insurance coverage) and significant illness variables (e.g. mood disorders, substance use disorders and perceived need for treatment). There is a debate about which type of variables is more important than others, Rayburn (2005) reports that needs variables are more important than sociodemographic and access variables while Katz (1997) thought that sociodemographic factors are the most important in influencing the use of mental health services. Despite that hospital treatment (including long stay admission) may provide better physical assessment and treatment and decrease vulnerability to physical , sexual and financial exploitation(Thornicroft & Tansella, 1999),community based care for long stay institutional patients can enhance their quality of life if there is a well-planned and well-resourced reprovision program for supervision and adequate use (Leff & Treiman,2000) Also, an important point of debate is the availability of mental health services for patients suffering from co-morbidity of psychiatric disorders with substance use disorders in...
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...The Provisions of the Competition Act,2002 7. Dominant Position in relevant Market 8. Dominance in market: LIC 1. Sovereign Guarantee 2. Distribution network 3. Other factors 9. Abuse of Dominance by LIC in light of the Act 10.Possibility of Abuse of Dominance 11.Conclusion and suggestion ACKNOWLEDGEMENT I sincerely thank all the officials responsible for providing this valuable internship at Competition Commission of India (CCI). I take this opportunity to express my sincere thanks to Mr. P.K. Purwar, Advisor (Economics) for his timely suggestions throughout my study. I am highly thankful to Dr. Anil Kumar Sharma, Assistant Director (Economics), CCI for having made my stay pleasant all along the internship. I also thank Ms. Sayanti Chakrabarti and the entire staff of CCI for providing me continuous support and encouragement throughout the internship. ABSTRACT My research is aimed at understanding the life insurance sector in India and flagging issues relating to competition in this sector. The life insurance sector has a small market and cover approx. 3 % of population in India. As a growing sector, it is important that all players get a level playing field. The competition act is to provide for a level playing field to all players to encourage competition in market. Through my study I have tried to substantiate this with facts and evidence proving that LIC as a state owned enterprise enjoys a dominant market. The...
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...to LIC of India – Prospects and Challenges Presentation of Pilot Survey To Research Development Committee Kadi Sarva Vishva Vidyalaya Gandhinagar J D Chandrapal 10E0244 - Management Scholar enrolled in PhD program Kadi Sarva Vishva Vidyalaya - Gandhinagar Prof. Dr. A.C. Brahmbhatt – (Guide) Institute of Management - Nirma University, Ahmedabad 382 481, India Mailing Address 7, Krishna flats Opp. Lalbhai Apartment Kiranpark, Nava Vadaj Ahmedabad -380013 Contact Info 9825070933 jdchandrapal@yahoo.com Key words: Life insurance, liberalization, globalization, Competition, Economic Reforms, LIC of India Changing Face of LIC of India in Response to Liberalization Abstract The purpose of this paper is to facilitate the attempts of mapping the change in LIC of India because of liberalization of Indian insurance sector. The insurance sector in India has experienced a 360-degree journey over a period of more than a hundred years. Its transition from an open competitive sector to nationalization and then back to a liberalized market characterizes this phenomenon. Economic reforms have revolutionized insurance sector. The economic reforms started, it leads to liberalization. Liberalization has sparkled a flame of globalization and privatization (LPG). The economic reforms i.e. Liberalization has posed some challenges to LIC of India. In the post liberalization period life insurance business felt a drastic change. Competition compelled LIC of India...
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...2011) In the case of the passing of the provider or even falling ill, most households get severely strained financially and have to often dip into their savings. This often throws their long term plans off track and adversely affects their aspirations. Life Insurance: The Life Insurance industry was opened up to private players in 2001 and it enjoyed very high growth periods from 2001 to 2008. However post the 2008 bubble, the growth slowed down significantly and in fact witnessed de-growth from 2010 – 2014. In the first quarter of 2015, the industry has reported a robust 20% growth Q-on-Q, however coming largely on the back of strong growth reported by LIC and a few private players. A large number of private players continued to witness negative growth. The Life Insurance industry in India is dominated by LIC with about 70% market share and almost 100% top of the mind recall; the other 23 players account for the balance 30% market share. (Source: Business Standard Article) Products: The LI category is classified into 3-4 broad product categories. 1. Protection / Term Plans – They only offer life insurance cover with no investment opportunities. 2. Pension Plans – Offer steady income streams to investors post retirement and is one of the largest categories around the world. 3. Savings & Investment Plans – These include the likes of ULIPs, Endowment Plans etc. 4. Children Plans – Investments made by...
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...EXECUTIVE SUMMARY This project was carried out in the HR department of BHARTI AXA Life insurance co. Pune. Bharti AXA Life insurance is only concern with life insurance and General insurance. The objective of this project is to study the entire Recruitment & Selection processes at Bharti AXA Life insurance. The Human Resources Department of Bharti AXA Life insurance carries out both these functions quite effectively. Hence, the procedure of Recruitment is studied thoroughly and some inferences accordingly. The data and information collected is with respect to working procedure specifically regarding recruitment procedure, the data referred for this study is for the year 2007 - 08. I have applied the concept and gained knowledge learned during the course in at CMRD In practical business situation and understood these concepts in better way. The research work really has poured of immense learning for me. I would like to thank whole heartedly to Bharti AXA and CMRD, for giving me this exposure. Introduction Company profile: Bharti AXA Life Insurance is a joint venture between Bharti, one of India’s leading business groups with interests in telecom, agro business and retail, and AXA, world leader in financial protection and wealth management. The joint venture company has a 74% stake from Bharti and 26% stake of AXA. The company launched national operations in December 2006. Today, company has over 5200 employees across over 12 states in the...
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...Overview of Indian insurance industry 2013 1 Outlook of Indian Insurance Industry lEafCraft Insights Overview of Indian insurance industry 2013 INDEX Introduction.......................................................................................................................................3 Brief history.......................................................................................................................................4 Market share of different insurance companies for the financial year 2012...............................5 Status of the Indian insurance industry and its demographics.................................................... 6 Changing market dynamics: evolution of mindset of the Indian population.............................. 7 Marketing strategies for various companies...................................................................................8 The way ahead..................................................................................................................................10 2 lEafCraft Insights Overview of Indian insurance industry 2013 INTRODUCTION Life is synonym to uncertainty and has become prone to contingency at any point of time. Any injury or accident can happen to anyone of us or our loved ones at any point of time. The material value of our life or immortal possessions of ours cannot be correctly estimated but of course we can keep a backup in case something fatal happens to them. This very...
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