A

PROJECT STUDY REPORT

On
Training undertaken at

Tata Aig Life Insurance

Titled
“Customer’s perception towards Health Insurance
Policy of Tata Aig”
Submitted in partial fulfillment
For the award of

MASTER OF BUSINESS ADMINISTRATION

INSTITUTE OF MANAGEMENT STUDY,

BIKANER
Submitted by: Submitted to:
Chirag rampuria Mr Pankaj jain
B.B.A. III Lecturer

1
2
 PREFACE

“Success comes with knowledge & knowledge is comes with training.”

To excel in any field practical training is an integral part to imply theoretical studies to a

practical approach it makes the individual to the actual practical conditions. Which could have

been impossible to be tough in a classroom? A trainee learnt dealing with the worker and

Management- working environment along with operational skills.

Insurance ranks as one of the most important industry in any part of the world. It is also an industry

where competitors drive excellence. This is why the entry in India of foreign insurers, as minority

Partners in domestic joint ventures, has bought the hope that market will reach a new level.

I have tried to do an analytical study on customer’s perception towards Health insurance policy.

In this study I tried to find out those facts, which do matter for an advisor for doing this job in

Insurance sector.

CHIRAG RAMPURIA

BBA Part- III

3
 ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, Miss Hem Ahuja Designation…... For guiding me
right Form the inception till the successful completion of the project. I sincerely acknowledge her for
extending their valuable guidance, support for literature, critical reviews of project and the report and
above all the moral support she had provided to me with all stages of this project.

I would also like to thank the supporting staff Mr. Naresh Sharma, Unit Manager of Tata Aig
Life Insurance, for their help and cooperation throughout our project.

CHIRAG RAMPURIA
(Signature of Student)

4
 Executive Summary

The service industry is one of the fastest growing sectors in India Today. The upcoming

sectors which are really showing the graph Towards upwards are - Telecom, Banking, and Insurance.
These Sectors really have a lot of responsibility towards the economy.

Amongst the above-mentioned areas insurance is one sector, which took a lot of

time in positioning itself. The insurance business of Non-life companies was not much in

problems but the major Problem was with life insurance. Life Insurance Corporation of

India had monopoly for more than 45 years, but the picture then was completely different. Previously
people felt that “Insurance is only for classes not for masses” but now the picture

is vice-versa.

The formation of IRDA, entrance of private life insurance companies into India with

one foreign partner, compulsory training of Insurance agents etc. developments started to

take place. And this was the time when these companies started searching for proper

channel partners who can help the organization in expanding its network and business in

India. Channel partners are those who are going to be into direct selling of company’s

products i.e. the insurance policies. They are the link --

between the customers and the management or company. These Channel partners are

people with different profiles. They are Selected on some grounds like their network of
5
 people, their Problem handling ability, convincing power and lot many things.

The main idea behind company’s Questionnaire Survey is to find out and analyze

the proper profile that can be recruited by company as a channel partner. Company has

been focusing on some of the profile that can be very beneficial for the company. For

example Chartered Accountants, Tax Consultants, Postal agents, Bank’s Daily Collection

Agents etc. the main idea behind targeting the above profile is strong client network

which is really very important for an insurance company.

The project title is “Potential of Life Insurance Industry in Market”. This shows

the scope for private insurance companies have great opportunities to cover the market

and can insure the customer. With the initiation of the deregulation in the Indian

insurance market, the monopoly of big public sector companies in life insurance market

have been broken. New private players have entered the market and with their innovative

approaches and better use of distribution channels and technology, they are eating in

to the shares of established public sector Companies in Indian Insurance Market.

Since the deregulation has been put in to place, the market share of LIC has come

down to 71.4% in life insurance market while the private players have captured around

17% market in the general insurance segment. This report includes the key private players

in the insurance market Such as ICICI Prudential, TATA AIG, Kotak Life Insurance,

Bajaj Allianz, Birla Sun life and. It also includes the leading competitors in the life

Insurance and general insurance segments along with their market shares.

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6
 

TABLE OF Vision

CONTENTS 

Project
Profile
Contents
Cha
Chapter 1: Introduction to the Industry pte
r 4:
 Industry profile Res
ear
 Important milestones in the life insurance business
ch
 Insurance sector reforms Met
hod
 IRDA olo
gy
Chapter 2: Contribution of Life Insurance Industry

 Contribution of Life Insurance in the Economy

 Flow of Insurance Industry in India Objectives

 Structure of life Insurance Industry 

 Life Insurance industry Limi

s
 Aggregation of Long Term Savings

 Spread of financial services in rural Areas

 Long term funds for infrastructure Development of Methodolo

Capital gy

Markets/Economic Growth 

 Employment generation Data

 Special Features

 Growth Potential

 Phase of transition

Chapter 3: Introduction to the Organization

 History

 Competitors

 Management

 Mission

7
8
 Chapter 1:

 Industry profile:

 Important milestones in the life

Insurance Business

 Insurance sector reforms

 The Insurance Regulatory and

Development Authority (IRDA)

9
10
11
 Chapter 2

 Objective

 Limitation

 Methodology

 Data collection

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13
1. Objective:

The main points of the present study are accomplish the following Objective.

 Proper understanding and analysis of life insurance

industry.

 To know about brand awareness of Tata Aig Life

Insurance and customer’s preference about Tata Aig Life

Insurance.

Conduct market survey on a sample selected from the

entire population and derived opinion on that research.

 According the market survey come to know about how

much potential of insurance market in our city.

And base on analysis of the result thus obtained make a

report on that research.

 Training aims at recruiting maximum number of Life

Advisors and to Sell the maximum policies for the

company and bring the business for the company which

14
 ever is going at the particular point of time.

 Along with it I will be gaining the thorough knowledge

of insurance sector. This will give me in more

confidence in marketing products given to me.

15
 As the Tata Aig Life Insurance well reputed company in

India its great chance for me to observed different

products launch by other competitor companies like

ICICI prudential, Bajaj alliance, LIC, Max New York

Life etc. In all, it is to understand the overall working of

the Life insurance sector.

The objective behind the project is as follows:

 To find the right candidate.

 To know about their family background, occupation, social

Relation, Qualification, Age.

 Finalize candidates for the IRDA training

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17
5: Limitation:

Some of the difficulties and limitations faced by me

during my training are as follows:

 Lack of awareness among the people – This is the biggest

limitation found in this sector. Most of the people are not

aware about the importance and the necessity of the

insurance in their life. They are not aware how useful life

insurance can be for their family members if something

happens to them.

 Perception of the people towards Insurance sector –

People still consider insurance just as a Tax saving device. So

18
 today also there is always a rush to buy an Insurance Policy only

at the end of the financial year like January, February and March

making the other 9 months dry for this business.

 Insurance does not give good returns –Still today people

think that Insurance does not give good returns. They are not

aware of the modern Unit Linked Insurance Plans which are

offered by most of the Private sector players. They are still under

the perception that if they take Insurance they will get only 5-6%

19
 returns which is not true nowadays. Nowadays most of the

modern Unit Linked Insurance Plans gives returns which are

many times more than that of bank Fixed deposits, National

saving certificate, Post office deposits and Public provident fund.

 Lack of awareness about the earning opportunity in the

Insurance sector – People still today are not aware about the

earning opportunity that the Insurance sector gives. After the

Privatization of the insurance sector many private giants have

entered the insurance sector. These private companies in order to

beat the competition and to increase their Insurance Advisors to

increase their reach to the customers are giving very high

commission rates but people are not aware of that.

 Increased competition – Today the competition in the

Insurance sector has became very stiff. Currently there are 14

Life Insurance companies working in India including the LIC

(life insurance Corporation of India). Today each and every

20
company is trying to increase their Insurance Advisors so that

they can increase their reach in the market. This situation has

created a scenario in which to recruit Life insurance Advisors and

to sell life Insurance Policy has became very very difficult.

21
RESEARCH METODOLOGY:

Research always starts with a question or a problem. Its purpose is to question through

the application of the scientific method. It is a systematic and intensive study directed

towards a more complete knowledge of the subject studied. Marketing research is the

function which links the consumer, customer and public to the marketer through

information- information used to identify and define marketing opportunities and

problems generate, refine, and Evaluate marketing actions, monitor marketing actions,

monitor marketing performance and improve understanding of market as a process.

Marketing research specifies the information required to address these issues,

designs, and the method for collecting information, manage and implemented the data

collection process, analyses the results and communicate the findings and their implication.

I have prepared our project as descriptive type, as the objective of the study demands

the answers of the question related to “Potential of Life insurance industry in market”.

22
The Marketing Research Process

As marketing research is a systemic and formalized process, it follows a certain sequence of research
action. The marketing process has the following steps:

 Formulating the problems

 Developing objectives of the research

 Designing an effective research plan

 Data collection techniques

 Evaluating the data and preparing a research report

There are two types of data collection method use in my project report.

– Primary data

– Secondary data.

For my project, I decided on primary data collection method for observing working of

company and approaching customers directly in the field, tele-calling, cold calling,

campaigning and through references to know their interest in business with company

23
 in my project and also make questionnaire for creating database of business class people.

I decided on Secondary data collection method was used by Referring to various websites, books,

magazines, journals and daily Newspapers for collecting information

regarding project under Study

24
25
DATA COLLECTION

After the research methodology, research problem in marketing has been identified

and selected; the next step is together the requisite data. There are two types of data

collection method – primary data and secondary data.

In our live project, we decided primary data collection Method because our study

nature does not permit to apply Observational method. In survey approach we had selected a

Questionnaire method for taking a customer view because it is feasible from the point of view

of our subject & survey purpose. We conducted 200 sample of survey in our project.

26
27
Chapter: 3

28
29
30
31
32
33
34
Some of the important milestones in the life

Insurance business In India are:

1850Non life insurance debuts with triton insurance company.

1870 Bombay mutual life assurance society is the first Indian

Owned life insurer

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.

35
1956 245 Indian and foreign insurers and provident societies taken

over by the central government and nationalized. LIC formed by

an Act of Parliament, viz. LIC Act, 1956, with a capital

contribution of Rs. 5 Crore from the Government of India.

36
 The General insurance business in India, on the other hand, can

trace its roots to the Triton Insurance Company Ltd., the first

general insurance company established in the year 1850 in Calcutta

by the British. Some of the important milestones in the general

insurance business in India are:

1907 The Indian Mercantile Insurance Ltd. set up, the first

company to transact all classes of general insurance business.

1957 General Insurance Council, a wing of the Insurance

Association of India, frames a code of conduct for ensuring fair

conduct and sound business practices.

1968 The Insurance Act amended to regulate investments and set

minimum solvency margins and the Tariff Advisory Committee set

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.

37
38
 Insurance sector Reforms

In 1993, Malhotra Committee, headed by former Finance Secretary

and RBI Governor R. N. Malhotra, was formed to evaluate the

Indian insurance industry and recommend its future direction.

The Malhotra committee was set up with the objective of

complementing the reforms initiated in the financial sector. The

reforms were aimed at “creating a more efficient and competitive

financial system suitable for the requirements of the economy

keeping in mind the structural changes currently underway and

recognizing that insurance is an important part of the overall

financial system where it was necessary to address the need for

similar reforms…” In 1994, the committee submitted the report

and some of the key recommendations included.

39
40
The Insurance Regulatory and Development Authority (IRDA)

The Insurance Act, 1938 had provided for setting up of the

Controller of Insurance to act as a strong and powerful supervisory

and regulatory authority for insurance. Post nationalization, the

role of Controller of Insurance diminished considerably in

significance since the Government owned the insurance

companies.

But the scenario changed with the private and foreign companies

foraying in to the insurance sector. This necessitated the need for a

strong, independent and autonomous Insurance Regulatory

Authority was felt. As the enacting of legislation would have taken

time, the then Government constituted through a Government

resolution an Interim Insurance Regulatory Authority pending the

enactment of a comprehensive legislation.

The Insurance Regulatory and Development Authority Act, 1999 is

41
 an act to provide for the establishment of an Authority to protect

the interests of holders of insurance policies, to regulate, promote

and ensure orderly growth of the insurance industry and for matters

connected therewith or incidental thereto and further to amend the

42
 Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and

the General insurance Business (Nationalization) Act, 1972 to end

the monopoly of the Life Insurance Corporation of India (for life

insurance business) and General Insurance Corporation and its

subsidiaries (for general insurance business).

The act extends to the whole of India and will come into force on

such date as the Central Government may, by notification in the

Official Gazette specify. Different dates may be appointed for

different provisions of this Act.

The Act has defined certain terms; some of the most important

ones are as follows

43
appointed day means the date on which the Authority is established

under the act. Authority means the established under this Act.

Interim Insurance Regulatory Authority means the Insurance

Regulatory Authority set up by the Central Government through

Resolution No. 17(2)/ 94-lns-V dated the 23rd January, 1996.

Words and expressions used and not defined in this Act but

defined in the Insurance Act, 1938 or the Life Insurance

Corporation Act, 1956 or the General Insurance Business

44
 (Nationalization) Act, 1972 shall have the meanings respectively

assigned to them in those Acts.

A new definition of "Indian Insurance Company" has been

inserted. "Indian insurance company" means any insurer being a

company (a) which is formed and registered under the Companies

Act 1956 (b)

in which the aggregate holdings of equity shares by a foreign

company, either by itself or through its subsidiary companies or its

nominees, do not exceed twenty-six per cent. Paid up capital in

such Indian insurance company (c) whose sole purpose is to carry

on life insurance business, general insurance business or re-

insurance business.

45
46
 Chapter: 4

 Contribution of Life Insurance

Sector in the Economy
 FLOW OF Insurance Industry in
India
 STRUCTURE OF INSURANCE
INDUSTRY: Snap Shot
 Industry
 Aggregation of Long Term
Savings
 Spread of financial services in rural
Areas
 Long term funds for infrastructure
Development of Capital Markets/
Economic Growth

47
 Employment generation
 Special Futures
 Growth Potential
 Phase of transition

48
 Flow of Insurance Industry in
India

• Structure of Insurance Industry: Snap Shot

• Contribution to Indian Economy

In
• Special Features du
st
ry
STRUCTURE OF INSURANCE Sn
ap
INDUSTRY: Snap Shot Sh
ot -
Co
Historical Perspective ntd
.
(i) Prior to 1956 242 companies operating
(ii) 1956 - 2001 Nationalization – LIC monopoly
player – Government control
(iii) 2001 -- Opened up sector

49
50
 • (a) LIC – Fully owned by Government
(b) Postal Life Insurance
• (ii) Private players -
1. Bajaj Allianz Life Insurance Co. Ltd.
2. Birla Sun Life Insurance Co. Ltd. (BSLI)
3. HDFC Standard Life Insurance Co. Ltd. (HDFC STD
LIFE)
4. ICICI Prudential Life Insurance Co. Ltd. (ICICI
PRU)
5. ING Vysya Life Insurance Co. Ltd. (ING VYSYA)
6. Max New York Life Insurance Co. Ltd. (MNYL)
7. MetLife India Insurance Co. Pvt. Ltd. (METLIFE)
8. Kotak Mahindra Old Mutual Life Insurance Co. Ltd.
9. SBI Life Insurance Co. Ltd. (SBI LIFE)
10. TATA AIG Life Insurance Co. Ltd. (TATA AIG)
11. Reliance Life Insurance
12. Aviva Life Insurance Co. Pvt. Ltd. (AVIVA)
13. Sahara India Life Insurance Co. Ltd. (SAHARA
LIFE)
14. Shriram Sunlam
• (iii) Other likely players – PNB Life Insurance,
Axa Bharti Enterprises
51
Potential of the Insurance sectors

52
 Total population 1.1 billion

Total population of 253 millions

Insurable class

Total population 88.5 millions

insured

Source: Financial Express-Delhi.

Market share:

2001-02 2002-3 2003-04 2004-05 2005-06

LIC 98% 94% 87% 78% 72%

Private Play er 2%
53
 6%
13% 22% 28%

Industry growth rate at 36% (2004-05) with premium income

From new business.

Source: Financial Express-Delhi

Market Share

54
 Market
Company Indian Foreign

KPromoter Insurance
/
o
Partner
t
a
Aviva, UK
Aviva Dabur
k
life Allianz,
Bajaj Auto
M
Bajaj Germany
ah
Allianz in Sun Life,
dr Aditya
Birla a, Canada
Birla
sun
O group
life l Standard
d HDFC
Life, UK
HDFC M
u ICICI Prudential,
Standar t
UK
d u Bank
a ING
ICICI Vysya
l
Insurance,
Prudenti Bank
al Netherlands
ING Kotak Old Mutual
Vysya South
Mahindra
Africa
Bank
55
 share 2.96
based on 1.84
premium 7.11 0.71
1.12
6.12 0.63

Max New Max India New York 1.32

York Life, US

MetLife Jammu & MetLife, 0.40

Kashmir US
Bank
Sahara None
Sahara 0.80
India
Life
Insuranc Cardiff,
e SBI
France 1.52
SBI Life
AIG, US
TataGrou
Tata AIG p 1.78

56
 CONTRIBUTION TO INDIAN
ECONOMY

(i) Life Insurance is the only sector which

A
generates
g
long term savings
g
(ii) Spread of financial services in rural areas and r
amongst socially less privileged e
g
(iii) Long term funds for infrastructure
a
(iv) Strong positive correlation between t
development of capital markets and insurance/ i
pension sector
o
n
(v) Employment generation

o
f

L
o
n
57
 g Term Savings

(i) Total Assets of Life Insurance

Companies

58
59
2002-2003 2003-2004 2004-2005

2,80,450Cr 3,52,608Cr 4,23,000 Cr

(ii) Total Premium

generated

2004-2005
2002-2003 2003-2004

57,708 Cr 66,278 Cr 79,000 Cr

(iii) Industry is growing @ 19 p.a.

(iv) At this growth rate, the future

premium income generated will be
60
 2005-2006 2006-2007 2007-2008
94,000 Cr 1,12000 Cr 1,33,000 Cr

(v) Life Insurance funds account for 15% of

household savings.

(vi)The industry has the potential to

increase
the share to 20%.

Spread of financial services in

rural areas and amongst socially
Underprivileged:

61
62
• IRDA Regulations provide certain minimum business to be
done

(i) In rural areas

(ii) In the socially weaker sections

• Life Insurance offices are spread over nearly

1400 centers.

• Presence of representative in every tensile –

deeper penetration in rural areas.

• Insurance agents numbering over 6.24 lakhs

in rural areas.

• Policies sold in rural areas (2004-05) - No. of

policies - 55 lakhs Sum assured 46,000 cr

• Social security - No. of lives covered 2003-04

17.4 lakhs 2004-05 42.1 lakhs

63
Long term funds for
infrastructure

64
• For GDP to grow at 8 to 10%, qualitative improvement in

infrastructure is essential.

• Estimates of funds required for development of

infrastructure

vary widely.

• An investment of 6, 19,600 crore is anticipated in the next

5 years

(Source : SSKI India)

• Tenure of funding required for infrastructure

normally ranges from 10 to 20 years.

• Major portion of these funds are routed through

debt/private

equity participation

65
 Development of Capital Markets/
Economic Growth

•Industry also contributes in economic development through

investments in capital market. Present level of investments is

over

Rs. 40,000 crore. (Mark to Market basis around 80,000

Crores).

•Annual Investment of around 9000 Crores in capital

markets.

66
 •Contribution to Five Year Plans9th Plan 2, 30,900 Crores
Last

Two Years 1, 70,900 Crores

• Helps inculcate a sense of security by protecting earning of

people in case of untimely death. Benefits to Policy Holders

2002-2003 2003-2004 2004-2005

20,800 Cr 24,200 Cr 28,700 Cr

E
M
PL
O
Y
67
 MENT GENERATION

• Life insurance industry provides increased

employment opportunities.

• Employees in insurance sector as on 31st

March,

2005 is around 2 lakhs.

• Many agents depend on insurance for their

Livelihood–No. of agents on 31st March 2004 –

15.59 lakhs

68
69
•Brokers, corporate agents, training establishments

provide extra employment opportunities.

• Many of these openings are in rural sectors.

70
 SPECIAL FEATURES

• Tax clubbing of various savings short term and long term

into

same bracket have a bias towards short term savings.

• Distinction between the short term savings and long term

savings

is critical from investor’s point of view. More prone to

inflationary

pressures

• Clearly, long term savings more than 10 years deserve

special

consideration under tax regime.

71
 GROWTH POTENTIAL

At present insurance penetration in India is quite low

– 2.26% of GDP.

PHASE OF TRANSITION
• Life Insurance industry is under the phase of infancy after 50

years of monopoly

72
• Competition from within and other sectors of financial market

• Needs environmental support till it reaches a comfort zone

73
Chapter: 5

 Company profile

1.1 History
74
1.2 Competitors
1.3 Management
1.4 Mission
1.5 Vision
 Project profile

75
 COMPANY PROFILE

Tata AIG Life Insurance

1.1 HISTORY:

Tata AIG Life Insurance Company Ltd. is one of the famous life insurance companies in India
offering several interesting life insurance policies. Tata AIG Life Insurance Company Limited is often
known as Tata AIG Life. Basically, it is a joint venture company and operated by the Tata Group.
This famous life insurance company was formed by the American International Group, Inc. (AIG)
and the Tata Group. Being one of the leading and oldest business groups in India, in 2007-08, Tata
Group has earned $55 billion or Rs.221, 320 crore

Tata AIG Life Insurance Company

Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company, formed by the
Tata Group and American International Group, Inc. (AIG). Tata AIG Life combines the Tata Group’s
pre-eminent leadership position in India and AIG’s global presence as one of the world’s leading
international insurance and financial services organization. The Tata Group holds 74 per cent stake
in the insurance venture with AIG holding the balance 26 per cent. Tata AIG Life provides insurance
solutions to individuals and corporate. Tata AIG Life Insurance Company was licensed to operate in
India on February 12, 2001 and started operations on April 1, 2001

Tata group

Tata is a rapidly growing business group based in India with significant international operations.
Revenues in 2007-08 are USD 62.5 billion (around Rs. 251,543 crores), of which 61% was from
76
 business outside India. The Group’s Net Profit for 2007-08 is USD 5.4 billion (around Rs. 21,578
crores). The Group employs around 350,000 people worldwide. The Tata name has been respected
in India for 140 years for its adherence to strong values and business ethics. The business
operations of the Tata Group currently encompass seven business sectors - Communications and
Information Technology, Engineering, Materials, Services, Energy, Consumer Products and
Chemicals. The Group's 28 publicly listed enterprises have a combined market capitalization of
around $60 billion, among the highest among Indian business houses, and a shareholder base of
2.9 million. The major companies in the Group include Tata Steel, Tata Motors, Tata Consultancy
Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels, Tata Teleservices and Tata
Communications.

American International Group, Inc. (Tata AIG Life Insurance Company)

American International Group, Inc. (AIG), a world leader in insurance and financial services, is the
leading international insurance organization with operations in more than 130 countries and
jurisdictions. AIG companies serve commercial, institutional and individual customers through the
most extensive worldwide property-casualty and life insurance networks of any insurer. In addition,
AIG companies are leading providers of retirement services, financial services and asset
management around the world. AIG's common stock is listed on the New York Stock Exchange, as
well as the stock exchanges in Ireland and Tokyo.

Types of policies and services provided by Tata AIG Life Insurance Company Ltd.:
The various life insurance policies and services offered by the Tata AIG Life include-

For individuals:
➢ Tata AIG Life Health First

➢ Tata AIG MahaLife Gold

➢ Tata AIG Life InvestAssure Plus

77
 ➢ Tata AIG Life InvestAssure II

➢ Tata AIG Life Health Protector - 5 Year Guaranteed Renewal Accident and Health Plan

➢ Tata AIG Life InvestAssure Care

➢ Tata AIG Life InvestAssure Gold

➢ Tata AIG Life Health Investor

➢ Tata AIG Life Life Plus

➢ Tata AIG Life Assure One year/ Five Years/10 Years/ 15 Years / 20 Years / 25 Years Lifeline
Plans, and Term to age 60 known as Assure Lifeline to Age 60

➢ Tata AIG Life ShubhLife

➢ Tata AIG Life Easy Retire

➢ Tata AIG Life Assure 10 Years / 20 Years / 30 Years Security & Growth Plans

➢ Tata AIG Life Assure 21 years Money Saver

➢ Tata AIG Life Raksha 10 /15/ 20 /25

➢ Tata AIG Life Assure Golden Years Plan

For the Children:

➢ Tata AIG Life Assure 21 years Money Saver

➢ Tata AIG Life Assure Career Builder

➢ Tata AIG Life Starkid

➢ Tata AIG Life InvestAssure II

➢ Tata AIG Life MahaLife Gold

➢ Tata AIG Life InvestAssure Plus

➢ Tata AIG Life Assure Educare at 18 & Assure Educare at 21

Retirement Plans:
➢ Tata AIG Life Nirvana

➢ Tata AIG Life Easy Retire

➢ Tata AIG Life InvestAssure Gold

➢ Tata AIG Life Assure Golden Years Plan

78
 ➢ Tata AIG Life MahaLife Gold

➢ Tata AIG Life InvestAssure Future

➢ Tata AIG Life InvestAssure II

➢ Tata AIG Life Nirvana Plus

Corporate life insurance products offered by Tata AIG Life Insurance Company Ltd.:
The Tata AIG Life Insurance Company Limited also offers various corporate life insurance products that
include –

➢ Group Pensions

➢ Employee Benefits

➢ Workplace Solutions

➢ Credit Life

1.2 COMPITETORS

➢ HDFC Standard Life Insurance Company Limited

➢ Birla Sun Life Insurance Company Limited
➢ TATA AIG Life Insurance Company Limited
➢ Max New York Life Insurance Company Limited
➢ SBI – Cardiff Life Insurance Company Limited
➢ ING Vysya Life Insurance Company Limited
➢ Bajaj Allianz Life Insurance Company Limited
➢ Aviva Life Insurance Company Limited
➢ Sahara India Life Insurance Limited

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 1.3Management

Managing Director -Trevor Bull

Mr. Trevor Bull joined Tata AIG Life as Managing Director in January 2006. Prior to this, Trevor was
Senior Vice President and General Manager at American International Assurance in Korea.

Trevor has over 28 years of experience in the life insurance industry and has spent considerable
time working in Japan and Britain. His experience covers an array of skills at various authority levels
including Director, Regional Executive, Senior Line Management and Project Management.
Additionally, Trevor has acquired keen insights into Unit Linked, conventional life and health
insurance/ reinsurance and all major products & distribution channels.

A proud father of two boys and one girl, he aligns his hobbies with theirs and connects with them
through a game of tennis or football regularly.

1.4Mission

• To focus on Customer Loyalty and make it the goal of our Organization.

• To encourage our people for adoption of new technologies, processes and systems for improved,
reliable and speedy service.

• To relentlessly monitor to reach a minimum net service level of 98% delivery

1.5Vision
To be the most Admired and Successful Express Distribution Company in India by meeting and

exceeding our Customers' expectation of services.

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 PROJECT PROFILE
2.1 INTRODUCTION OF INSURANCE SECTOR
Insurance or Assurance, is a device for indemnifying or guaranteeing an individual against loss. Reimbursement
is made from a fund to which many individuals exposed to the same risk have contributed certain specified
amounts, called premiums. Payment for an individual loss, divided among many, does not fall heavily upon the
actual loser. The essence of the contract of insurance, called a policy, is mutuality. The major operations of an
insurance company are underwriting, the determination of which risks the insurer can take on; and rate making,
the decisions regarding necessary prices for such risks. The underwriter is responsible for guarding against
adverse selection, wherein there is excessive coverage of high risk candidates in proportion to the coverage of low
risk candidates. In preventing adverse selection, the underwriter must consider physical, psychological, and moral
hazards in relation to applicants. Physical hazards include those dangers which surround the individual or
property, jeopardizing the well-being of the insured. The amount of the premium is determined by the operation of
the law of averages as calculated by actuaries. By investing premium payments in a wide range of revenue-
producing projects, insurance companies have become major suppliers of capital, and they rank among the
nation's largest institutional investors.

WHAT IS INSURANCE?

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Insurance in its basic form is defined as “ A contract between two parties whereby one party called
insurer undertakes in exchange for a fixed sum called premiums, to pay the other party called
insured a fixed amount of money on the happening of a certain event."

In simple terms it is a contract between the person who buys Insurance and an Insurance company

Who sold the Policy? By entering into contract the Insurance company agrees to pay the Policy
holder or his family members a predetermined sum of money in case of any unfortunate event for a
predetermined fixed sum payable which is in normal term called Insurance Premiums.

Insurance is basically a protection against a financial loss which can arise on the happening of an
unexpected event. Insurance companies collect premiums to provide for this protection. By paying
a very small sum of money a person can safeguard himself and his family financially from an
unfortunate event.

For Example if a person buys a Life Insurance Policy

by paying a premium to the Insurance company , the family members of insured person receive a fixed
compensation in case of any unfortunate event like death.

There are different kinds of Insurance Products available such as Life Insurance , Vehicle Insurance,
Home Insurance, Travel Insurance, Health or Med claim Insurance etc.

2.2 Tata AIG Life launches Health Investor

➢ 100% return of premium m Critical illness cover for 12 illnesses and associated surgeries
➢ Plan returns ‘total premiums paid’, if no claim is made, on maturity

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 ➢ Flexibility of choosing from four terms
➢ Qualifies for tax deduction under Section 80C
➢ Mumbai, February 22, 2008: Tata AIG Life Insurance Company Limited (Tata AIGLife)
today announced the launch of Health Investor, its critical illness cover witreturn of
premium.
➢ Health Investor provides cover against 12 critical illnesses an surgeries and pays out a lump
sum amount on the first diagnosis of a critical illness or first performance of any surgeries for
a critical Illness.
➢ Importantly, Health Investor assures the customer return of premium if the insured is never
diagnosed with any of the covered illnesses and associated surgeries, till the end of the
maturity period. This is the first return-of-premium Health plan from TataAIG Life.
➢ The plan has four coverage periods to choose from where the customer can pay premiums
for 5 years less than the chosen term.
➢ The sum assured increases by 5%every year to a maximum of 50% of the original sum
assured.
➢ This benefits the customers by enabling him to address the rising health costs with each
passing year.
➢ Customers can enter the plan anywhere between 18-55 years of age and maturity is at65
years.
➢ Tata AIG Life was the first private sector Life Insurance company in India to launch health
related insurance solutions for customers, having launched the first health insurance plan in
2003.
➢ We have produced pioneering work in the health insurance field.
➢ We observed that customers sometimes hesitate to invest in a health insurance policy
because they are not assured of getting back their invested premiums at maturity if no claim
arises.
➢ This concern manifests itself by certain people, in need, missing out on insuring themselves
against expensive healthcare expenditures.
➢ Health Investor reinforces our core belief of providing a choice of tailor-made solutions.”
➢ Adding to this Mr. Ivan Chak, Vice President & Head of Life Profit Centre and Accident
Health said, “This is a significant addition to our product mix. Was developed after taking
into account, feedback from our customer research and we are therefore confident this
product will address this need gap in the market place.”
➢ Additionally, the premium paid under this policy is eligible for tax deduction under Section
80C of the Income Tax Act, 1961.

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 ➢ Health Investor will be available nationally through Tata AIG Life’s advisors and other
distribution partners.

2.3 INDIVIDUAL PLAN OF TATA AIG

TATA AIG life health investor

Hospital rooms. Doctor’s bills. Stress. Worry. Tears. Frustration. Life seems to be over the moment
one is diagnosed with a critical illness.

But, with Tata AIG Life Health Investor (Health Investor) from Tata AIG Life, life does not have to
come to a standstill. Because the financial cover it offers plays a large role in contributing to your
peace of mind and subsequent recovery.

What’s more, if you are fortunate enough never to be diagnosed with a Critical Illness, the
premiums you pay will never go to waste as they will be refunded in case there is no claim.

Protection against 12 Critical Illnesses:

• The critical illnesses covered under this policy include Benign Tumor, Paralysis, Parkinson’s
Disease, Total Blindness, Cancer, Stroke, Heart Attack, Chronic Renal Failure, Coronary
Bypass Surgery, Heart Valve Surgery, Aorta Surgery and recipient of major organ transplant
of Heart, Lung, Liver, Kidney, Pancreas or Bone Marrow. The coverage under critical illness
benefit would be available only after 180 days from the issue/reinstatement date. However,
this policy will cease after one claim is made. So, invest a little in your health now and stay
protected and worry-free.

Key benefits include:

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 • Lump sum benefit on diagnosis of 12 critical illnesses

• Cover in case of unfortunate death

• 100% Return of Premium in case of no claim

• 5% increase in the Critical Illness Benefit up to a maximum of 50% of Sum Assured

• Limited premium payment period

• Level Premium

Eligibility:
• Policy is available for persons between 18 and 55 years of age

Tax Benefits
• Premiums paid under this plan are eligible for tax benefits under Section 80C of the Income
Tax Act, 1961. Any sum received under this plan is exempt from tax under section 10(10D)
of the Income Tax Act, 1961.*

DATA ANALYSIS & INTERPRETATION

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 QUES: 1. DO YOU KNOW ABOUT HEALTH INSURANCE POLICY?

OPTION RESPONSE

YES 20%

NO 80%

KNOW ABOUT HEALTH POLICY

NO, 20%

YES
NO

YES, 80%

Interpretation:

Among 100 counters we are analyses that 70% people are known about health policy &
30% people are unknown about health policy.

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QUES: 2.DO YOU KNOW THAT HEALTH INSURANCE POLICY IS NECESSARY

FOR PEOPLE?

OPTION RESPONSE

YES 90%

NO 10%

HEALTH POLICY IS NECESSARY FOR

PEOPLE

No, 10%

Yes
No

Yes, 90%

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 Interpretation:

Among 100 counters we analyses that 90% people are said that health policy in
necessary for every

people and 10% people are said that health policy is not necessary for people as they
have enough

money to met their needs so now 10% of the people should be aware about the policy .

QUES: 3.DO YOU KNOW WHICH COMPANY PROVIDES HEALTH POLICY?

S.NO. OPTION RESPONSE

1. TATA AIG 50

2. BIRLA SUNLIFE 20

3. BAJAJA\ ALLIANZ 25

4. ALL 10

88
 COMPANIES PROVIDE HEALTH
POLICY
ALL, 10
BAJAJ
ALLIANZ, TATA AIG,
25 50

TATA AIG
BIRLA
BIRLA SUNLIFE
SUNLIFE,
BAJAJ ALLIANZ
20
ALL

Interpretation:

According to the above data we are in beneficial position as 50% people are aware that
tata aig provide beneficial health plans

QUES: 4. IN YOUR OPINION WHICH IS THE 1 ‘KILLER’ DISEASE IN INDIA TODAY?

S.NO. OPTION RESPONCE

1. Heart Attack 40

2. Cancer 50

3. Stroke 10
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 KILLER DISEASE IN INDIA TODAY

Stroke, 10

HeartAttack
, 40

Cancer, 50
HeartAttack
Cancer
Stroke

Interpretation:

According to the above data the ratio for the killer diseases has been increasing thus
there is more and

more need of providing medical policy.

QUES: 5.DO YOU AGREE THAT MORE INDIANS ARE SUFFERING FROM THE ABOVE CRITICAL ILLNESS?

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 OPTION RESPONSE

YES 85%

NO 15%

SUFFERING FROM CRITICLE ILLNESS

No, 15%

Yes
No

Yes, 85%

Interpretation:

According to the above data 85% of the people are suffering from some or the other
critical disease

thus our aim is to provide health policy to these people , so that future can be fully
protected

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QUES: 6. WHAT WOULD BE THE TOTAL COST OF CRITICAL ILLNESS TREATMENT IN A PRIVATE
HOSPITAL TODAY?

S.NO. OPTION RESPONSE

1. Upto Rs.1,00,000 10

2. Rs. 1,00,000 – 30
Rs.3,00,000

3. Above Rs. 3,00,000 60

COST TREATMENT IN TODAY

upto
Rs.1,00,000

Above Rs.
3,00,000
Rs.1,00,000 -
Rs.3,00,000 upto Rs.1,00,000

Rs.1,00,000 -
Rs.3,00,000
Above Rs. 3,00,000

Interpretation:

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According to the above data the current cost for meeting the critical illness treatment is
above 3, 00,000

and thus many of the people don’t have 3, 00,000 in hand thus in this case our medical
policies play an important role.

QUES: 7.WHAT WOULD BE THE TOTAL COST OF CRITICAL ILLNESS TREATMENT IN A

PRIVATE HOSPITAL IN 2010?

S.NO. OPTION RESPONSE

1. Upto Rs. 1,50,000 10

2. Rs. 1,50,000 – Rs. 40

4,00,000

3. Above Rs. 4,00,000 50

COST TREATMENT IN 2010

upto
Rs.1,50,000

Above Rs.
4,00,000
Rs.1,50,000 -
Rs.4,00,000 upto Rs.1,50,000

Rs.1,50,000 -
Rs.4,00,000
Above Rs. 4,00,000

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 Interpretation:

According to the changing market scenario the cost of treatment of medical is being
tremendously increasing, thus more and more people would like to go for medical
policies.

Ques: 8. WHICH DO YOU THINK IS THE BEST AND MOST APPROPRIATE WAY TO

OVERCOME THIS FINANCIAL PROBLEM?

S.NO. OPTION RESPONSE

1. Liquidate property/assets 5%

2. Money from family/friends 25%

3. Lifetime saving 30%

4. Critical illness/ medical insurance 40%

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 FINANCIAL PROBLEMS

Liquidate
property/assets,
5%

Critical illness/ Money from

medical insurance, f amily/friends, 25%
40%

Liquidate property/assets

Money from family/friends

Lifetime saving
Lifetime saving,
30% Critical illness/ medical
insurance

Interpretation:

According to the above data 5% of the people would like to overcome this problem by
selling there property, 25% will be taking from family or friends, 30% would like to spend
there lifetime savings

and 40% of the people would like to go for medical insurance thus our emphasis would be
on providing insurance to the rest of the people who will be going through other sources.

QUES: 9. WOULD YOU LIKE TO SAVE FOR UNFORESEEN CIRCUMSTANCES?

OPTION RESPONSE

YES 90%

NO 10%

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 SAVE FOR UNFORESEEN
CIRCUMSTANCES

NO, 10%

YES
NO

YES, 90%

Interpretation:

According to the above data,90% of the people would like to save for unforeseen
circumstances thus

they can be our potential customers for the medical policies.

---------------

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 Chapter 6:

 Finding
 Conclusion
 Suggestion
 Questionnaire
97
 Bibliography

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 FINDINGS

✔ Some people are unaware from health insurance policy.

✔ 85% of the working populations do not have Rs. 5, 00,000 as instant cash.
✔ Many people think that critical illness is the best and most appropriate way to
overcome these financial problems.
✔ TATA AIG provides higher returns.
✔ There is the facility of liquidity available.
✔ TATA AIG also offers guaranteed returns.

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 CONCLUSION

After analyzing the collected data and information. I have arrived at certain
conclusion which is as follows:

➢ Tax benefits as per current tax laws and subject to amendments made
from time to time.
➢ On death or at maturity at age 100, the entire sum assured will be paid.
➢ More and more people should be given medical policy.

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0
 ➢ Tata Aig offers top up facility.
➢ Make insurance policy which can buy any one so we can
Insured them through this type of life insurance policy.

Suggestions

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1
 Proper time management should take place,
Proper guidance should be provided.
Timely response should be taken from the investors.
All the insurance company must advertise more in the market
because not all people know more about life Insurance policy

Most number of people wants Guaranteed Returns so

company must focus on this for the customer investment.

Make insurance policy which can buy any one so we can

insured them through this type of life insurance policy.

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2
 QUESTIONNAIRE

NAME :

ADDRESS:

GENDER:

AGE :

Ques: 1. Do you know about health insurance policy?

a.) Yes [ ] b.)No [ ]

Ques: 2 Do you know health insurance policy is necessary for people?

a.)Yes [ ] b.)No [ ]

Ques: 3. which company provides health policy?

a.) TATA AIG b.) BIRLA SUNLIFE

c.) MAX NEWYORKd.) All

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3
 Ques: 4.In your opinion, which is the killer disease in India, today?

a.) Heart Attack b.)Cancer

c.)Stroke

Ques: 5. Do you agree that more Indians are suffering from the above critical

Illness?

a.) yes [ ] b.) No [ ]

Ques: 6. what would be the total cost of critical illness treatment in a private

Hospital today?

a.) Upto Rs.1, 00,000 b.) Rs. 1, 00,000 - Rs. 3, 00,000

c.) Above Rs 3, 00,000

Ques: 7. what would be the total cost of critical illness treatment in a private

Hospital in 2010?

a.)Upto Rs.1, 50,000 b.). Rs.1, 50,000 – Rs. 4, 00,000

c.) Above Rs. 4, 00,000

According to some relevant studies:

A. 85% of the working populations DO NOT have Rs.5, 00,000 as

instant cash.

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4
 B. 14% have Rs.5,00,000 instantly BUT will subsequently face a
financial crunch
C. ONLY 1% can afford to spend Rs.5,00,000 instantly and easily

Ques: 8. which category would you fall into, if you were to suffer from any

Critical Illness?

a.) Category A b.)Category B

c.) Category C

Ques: 9 which do you think is the best and most appropriate way to
overcome
this Financial problem?

a.) liquidate property/Assets b.)Money from family /friends

c.)Lifetime savings d.)Critical illness/medical insurance

Ques: 10. Would you like to save for unforeseen circumstances?

a.) Yes [ ] b.) No [ ]

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 BIBLIOGRAPHY

BOOKS:

C.R.kothari “marketing research”

M.J.matheu “Insurance”

WEBSITES

www.tataaig.com

www.google.com

NEWS PAPER:

Times of India.

_______________

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