ANALYSIS OF SALES OF IDBI FEDERAL LIFE INSURANCE CO. LTD.

PREPARED BY SANGEETHA VENUGOPAL P.

TABLE OF CONTENTS

SL NO. 1

CHAPTERS INTRODUCTION

PAGE NO 1

REVIEW OF LITERATURE

THEORETICAL FRAMEWORK

INDUSTRIAL PROFILE

11

ORGANISATIONAL PROFILE

14

ANALYSIS

35

FINDINGS

55

SUGGESTIONS

57

LIST OF TABLES
Sl.No. 1 2 3 4 5 6 Table No. 6.1 6.2 6.3 6.4 6.5 6.6 Table Name Sales for the year 2011 Sales for the year 2010 Sales for the year 2009 Insurance Coverage Insurance policy ownership The policy which is owned by sample population The type of communication Awareness of company products The source of awareness of products Reason for taking insurance policy Matching of Requirements Most suitable product Suggested Product Response from the meeting Satisfaction with Incomesurance Best feature Decision to purchase IDBI Federal product Decision to buy Incomesurance Page No. 36 38 39 40 41 42

7 8 9 10 11 12 13 14 15 16 17 18

6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18

43 44 45 46 47 48 49 50 51 52 53 54

LIST OF CHARTS
Sl.No. 1 2 3 4 5 6 Chart No. 6.1 6.2 6.3 6.4 6.5 6.6 Chart Name Sales for the year 2011 Sales for the year 2010 Sales for the year 2009 Insurance Coverage Insurance policy ownership The policy which is owned by sample population The type of communication Awareness of company products The source of awareness of products Reason for taking insurance policy Matching of Requirements Most suitable product Suggested Product Response from the meeting Satisfaction with Incomesurance Best feature Decision to purchase IDBI Federal product Decision to buy Incomesurance Page No. 36 38 39 40 41 42

7 8 9 10 11 12 13 14 15 16 17 18

6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18

43 44 45 46 47 48 49 50 51 52 53 54

CHAPTER-I INTRODUCTION

INTRODUCTION
Insurance is a social device whereby a large group of individuals, through a system of equitable contributions, may reduce or eliminate measureable risk of economic loss common to all members of the group. It is a financial agreement that spreads the costs of losses among the members of an insurance pool. Insurance is a contract by which one party for the consideration called premium, assures a particular risk of the other party and promises to pay to him or his nominee, a certain or ascertainable sum of amount on a specified contingency. 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% annually. Together with banking services, it adds about 7% 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. IDBI Federal Life Insurance Co Ltd is one of the major players in Indian insurance market. It is a joint-venture of IDBI Bank, Indias premier development and commercial bank, Federal Bank, one of Indias leading private sector banks and Ageas, a multinational insurance giant based out of Europe. In this venture, IDBI Bank owns 48% equity while Federal Bank and Ageas own 26% equity each. At IDBI Federal, we endeavor to deliver products that provide value and convenience to the customer. Through a continuous process of innovation in product and service delivery we intend to deliver world-class wealth management, protection and retirement solutions to Indian customers. Having started in March 2008, in just five months of inception we became one of the fastest growing new insurance companies to garner Rs 100 Cr in premiums. The company offers its services through a vast nationwide network across the branches of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and partners. As on 31st March, 2012, the company has issued over 3.76 lakhs policies with over 21,578 Cr in Sum Assured. The scope of insurance business in India has been clearly understood by both foreign and Indian companies. IDBI bank has joined with Federal bank and with the help of an international company like ageas started IDBI Federal Life Insurance Company for introducing the majority of Indian population to
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insurance. And this study is to understand the sales of insurance products in its thrissur branch.

SIGNIFICANCE OF THE STUDY The study is of significance because there was a great difference in the sales of various products of the company.

STATEMENT OF PROBLEM To understand and study the sales level and the difference in sales level of IDBI Federal Life Insurance Products with the past 3 years data.

OBJECTIVES OF THE STUDY PRIMARY OBJECTIVES ARE: To understand various products sold by the company. To get a clear picture on how the agency channel of an insurance company works. To know the various promotional and marketing activities carried out by the organisation. SECONDARY OBJECTIVES ARE: To gain an insight about the company. To know the vision, mission, values and policies of the organisation.

METHODOLOGY Data was collected from various primary and secondary sources. Primary source includes various employees who provided valuable information regarding the organization and its working. Secondary data was collected mainly from the
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official website of IDBI Federal and from the booklet issued by the company along with a training cell named Catalyst. Various textbooks and e-magazines were also referred. Pie diagrams are used for the pictorial representations of data collected from the organization.

SCOPE OF THE STUDY The study is limited to the Thrissur branch of IDBI federal Life Insurance Co. The customers are the people from mid- Kerala especially from Thrissur district.

LIMITATIONS OF THE STUDY The study was restricted to a single branch of the company. The study is made based on available information, it may not be authentic. Time constraint was a limitation of the study. Employees were not able to provide much help due to their work.

CHAPTERISATION The first chapter deals with the introduction to the insurance industry along with the introduction to the IDBI Federal Life Insurance Company. The second chapter contains literature review which is the details for various projects already conducted by students of various institutions. Third chapter is the theoretical framework of the insurance industry. Chapter four consists of the profile of insurance industry with details of giant insurance providers. Fifth chapter deals with the organizational profile of IDBI Federal Life Insurance Company with special reference to its Thrissur branch. Chapter six contains the analysis and chapter seven and chapter eight deals with findings and suggestions respectively.

CHAPTER II

REVIEW OF LITERATURE

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REVIEW OF LITERATURE
A summer training project titled Marketing Strategies of IDBI life insurance done by Ms. Varsha Garg, a final year BBA student mentioned the following. 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% returns. 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, and PPF. People still today are not aware about the earning opportunity that the Insurance sector gives. Companies in order to beat the competition and to increase their Insurance Advisors and increase their reach to the customers are giving very high commission but people are not aware of that. A project report titled Buying behavior of Customers in Insurance Sector prepared by Mr. Shahabas Moidu, a PGDM student of DCSMAT, Wagamon clearly shows with evidence that most of the people mainly prefer bank deposits as a strong investment option followed by mutual funds and other financial products. The report also says that majority of prospective customers are willing to take up insurance policy of LIC rather than any other private insurance players.
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A report prepared by Mrs. Meena K an employee of IDBI Federal Life Insurance Company says With the consent of the company, the agency channel has decided to promote more guaranteed return products rather than products which are subjected to market risks. The reason behind such a decision was the customer dissatisfaction rise during the last year (2011). Abhishek Roy, a student of Sinhgad Institute of Management College, Pune has mentioned in his report, The main goal of the marketing communication for IDBI Federal is to bring peoples attention on products and their services by providing them with the information that encourages a positive or buying response and also marketing communication tool which target customers at the end to bring sales to the company. A project report on branding influence in market communication summer internship IDBI Federal Life Insurance Co. by Ms. Sameena Nikhat states that, The key competitors are LIC, HDFC Standard, ICICI Prudential and Bajaj Allianz The company offers its services through a vast nationwide network across the branches of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and partners. As on January 31st 2011, the company has issued over 2.68 lakh policies with over Rs 14, 230 Cr in Sum Assured. Various people have studied various aspects of this organization. The reason behind the change in sales level of insurance products in the past three years in the thrissur branch of the company is being studied by me.

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CHAPTER III

THEORETICAL FRAMEWORK OF INSURANCE COMPANIES

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THEORETICAL FRAMEWORK OF INSURANCE COMPANIES

The Indian Life Insurance company act 1912 was the first statutory body that started to regulate the life insurance business in India. By 1956 about 154 Indian, 16 foreign and 75 provident firms were been established in India. Then the central government took over these companies and as a result the LIC was formed. Since then LIC has worked towards spreading life insurance and building a wide network across the length and the breath of the country. After the liberalization the entrance of foreign players has added to the competition in the market. Insurance Sector Reforms In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor was formed to evaluate the Indian insurance industry and give its recommendations. The committee came up with the following major provisions Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies.

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 Only one State Level Life Insurance Company should be allowed to operate in each state.

It was after this committee came into effect the regulatory body for insurance sector was formed with the name of IRDA. Insurance Regulatory and Development Authority (IRDA): The IRDA since its incorporation as a statutory body has been framing regulations and registering the private sector insurance companies. IRDA being an independent statutory body has put a framework of globally compatible regulations.

IMPACT OF LIBERALIZATION
The introduction of private players in the industry has added to the colors in the dull industry. The initiatives taken by the private players are very competitive and have given immense competition to the on time monopoly of the market LIC. Since the advent of the private players in the market the industry has seen new and innovative steps taken by the players in this sector. The new players have improved the service quality of the insurance. As a result LIC down the years have seen the declining phase in its career. The market share was distributed among the private players. Though LIC holds the 75% of the insurance sector but the upcoming natures of these private players are enough to give more competition to LIC in the near future. LIC market share has decreased from 95% (2002-03) to 63.95 %(2010-11) and now it is further decreasing.

THE WORKING OF INSURANCE COMPANY

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Profit = Earned Premium + Investment Income - Incurred Loss Underwriting expenses

Insurers make money in two ways:

1. Through Underwriting, the processes by which insurers select the risks to insure and decide how much in premiums to charge for accepting those risks, and 2. By investing the premiums they collect from insured. Revenue = Premium Expenses = (Sum of Claims + Commission payable on procurement of business + Operating expenses) Operating Surplus = (Revenue - Expenses)

Net investment income includes income from trading in and holding stock market securities including government securities, special deposits with the central government, loans to several public utilities and service providers in state government. Insurance premium collected is converted in a pool of fund then divided in to four expenses: To pay the expenses of the management To pay agency commission

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 To pay for the claims Surplus money will be invested in government securities

CURRENT SCENARIO OF THE 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. Innovative products and aggressive distribution have become the say of the day. 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. Life insurance industry is waiting for a big growth as many Indian and foreign companies are waiting in the line for the green signal to start their operations. The Indian consumer should be ready now because the market is going to give them an array of products, different in price, features and benefits. How the customer is going to make his choice will determine the future of the industry. The private insurance players have significantly improving their market share when compared to 50 years Old Corporation (i.e. LIC). INVESTMENT IN LIFE INSURANCE

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Life insurance policies are "cash value," which means the fees, or premium, initially are greater at the start of the policy than they would be in a term policy. The excess premium is then invested in a "separate account," either by the insurer or in an account controlled by the policy holder, building up cash value. Any investment gains can be used in a few ways: to increase the death benefit, to borrow against for any use or to keep the policy in effect if insured stop paying monthly premiums.

CHAPTER IV INDUSTRIAL PROFILE

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INDUSTRIAL PROFILE
Insurance is a nascent sector in India providing a wide potential for the players worldwide. The premiums of life insurance accounts to about 2.5 % of India's GDP while the premiums of the general insurance accounts to about 0.65% GDP. In India the Insurance sector went through a number of changes when the Indian Government allowed the private companies to solicit insurance by allowing FDI up to 265%.The Indian Insurance scenario received a boost up as the global insurance companies are craving for a lion's share. The Insurance Companies like LIC, Bajaj Alliance, ICICI Prudential are booming in this era. The list below will give the names of the best Insurance Companies of India. List of Top Insurance Companies of India Life Insurance Corporation of India :This leading Insurance Company of India was established in the year 1956 by the alliance of 16 non-Indian companies, 154 Indian Insurance Companies and 75 provident. It has 100 divisional offices, 2048 computerized branches, 7 zonal offices and the company's corporate office. It has introduced new strategies for the facilitation of the customers like the IVRS,ECS,ATM Premium payment facility and the company's Info centers in Mumbai, Delhi, Chennai, Kolkata and many others cities. Bajaj Allianz:This Indian Insurance company is a joint venture of Alliance AG, which is one among the largest Life Insurance companies and Bajaj Auto, one among the biggest 2- & 3 wheeler producers in the world. The Company has various plans for the customers like the Pension, Retirement, Life Time Care, Health Care, Life Insurance Online, Life Insurance Saving Plans, and online services like the Address change, Renewal Premium Payment etc. Tata AIG Life :This renowned life Insurance company in India offers a wide array of products related to life insurance for associations, individuals and businesses. The company offers high quality solutions to its corporate Indian clients. It renders services like the AIG Health First, AIG Health Life Protector, Tata AIG Life Hospi Cash Back, Tata AIG Life Maha Gold, Tata AIG Life Assure 10 Years and many others. The company is a joint venture of America International Group and TATA group. Birla Sun Life Insurance:It is one of the major insurance companies in India and a joint venture of Sun Life Financials and Aditya Birla group. The company provides Life Insurance Solutions to meet the needs of Protection, Retirement and Saving .It has recently launched the Money back Plus Plan.
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SBI Life :This renders premium Insurance solutions like SBI Life-Smart ULIP, SBI Life-Group Criti9, SBI Life-Unit Plus Child Plan etc. It also offers services like the NRI services, Premium Payment Procedure, ECS Facility, RPI/RFI and many others. SBI Life is a joint venture of BNP Paribas Assurance and SBI. Max New York Life:This Life Insurance company in India provides the best solutions related to life insurance like children's plan, retirement solution, Investment, Protection, Health, Savings etc. The company has 14 corporate agency tie ups, 33 bankassurance relationships and direct sales force at 14 locations. It is now covering 36 products related to life and health insurance. Kotak Life Insurance:This premier Insurance company in India offers insurance facilities related to Savings, Investments, Child, Retirement, Protection, Kotak Long Life Secure Plus, Kotak Long Life Health Plus etc. It opens up services like Insurance Guide, NAV, Premium Payment Options and many others. HDFC Standard Life:This is one of the major market leaders in the insurance sector in India. The company offers Insurance services like the Group Plans, Health Plans, Protection Plans, Retirement Plans, Savings and Investment Plans etc. The customer base of the company is about more than 7 million who depend on the company for various needs. Reliance Life :The company based in India offers the best plans for Life Insurance in India. Reliance Capital Limited's associate company is Reliance Life which is one of the leading private sectors in India. The company provides the Protection Plans, Child Plans, Retirement Plans and Investment plans and is also the ultimate solver of solutions. ICICI Prudential:This major Insurance Company in India provides health Insurance, life insurance, ULIPs, ULIP, Retirement Plans and many others. Life Insurance Plans of the company covers Premium Guarantee Plans, Education Insurance Plans etc. Pension Plans encompass LifeStage Pension, Forever Life. Health Insurance Plans cover Hospital Care, MediAssure.

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CHAPTER - V

ORGANISATIONAL PROFILE

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COMPANY PROFILE
IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, Indias premier development and commercial bank, Federal Bank, one of Indias leading private sector banks and Ageas, a multinational insurance giant based out of Europe. In this venture, IDBI Bank owns 48% equity while Federal Bank and Ageas own 26% equity each. At IDBI Federal, we endeavor to deliver products that provide value and convenience to the customer. Through a continuous process of innovation in product and service delivery we intend to deliver world-class wealth management, protection and retirement solutions to Indian customers. Having started in March 2008, in just five months of inception we became one of the fastest growing new insurance companies to garner Rs 100 Cr in premiums. The company offers its services through a vast nationwide network across the branches of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and partners. As on 31st March, 2012, the company has issued over 3.76 lakhs policies with over 21,578 Cr in Sum Assured.

Management: GV Nageswara Rao is the MD & CEO of IDBI Federal Life Insurance. Aneesh Srivastava is the CIO of IDBI Federal Life Insurance. Michael J Wood is the appointed actuary of IDBI Federal Life Insurance

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The sponsors of IDBI Federal Life Insurance Co Ltd.

IDBI Bank Ltd. continues to be, since its inception, Indias premier industrial development bank. It came into being as on July 01, 1964 (under the Companies Act, 1956) to support Indias industrial backbone. Today, it is amongst Indias foremost commercial banks, with a wide range of innovative products and services, serving retail and corporate customers in all corners of the country from 977 branches and 1544 ATMs. The Bank offers its customers an extensive range of diversified services including project financing, term lending, working capital facilities, lease finance, venture capital, loan syndication, corporate advisory services and legal and technical advisory services to its corporate clients as well as mortgages and personal loans to its retail clients. As part of its development activities, IDBI Bank has been instrumental in sponsoring the development of key institutions involved in Indias financial sector National Stock Exchange of India Limited (NSE) and National Securities Depository Ltd, SHCIL (Stock Holding

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Corporation of India Ltd), CARE (Credit Analysis and Research Ltd).

Federal Bank is one of Indias leading private sector banks, with a dominant presence in the state of Kerala. It has a strong network of over 950 branches and 1002 ATMs spread across India. The bank provides over four million retail customers with a wide variety of financial products. Federal Bank is one of the first large Indian banks to have an entirely automated and interconnected branch network. In addition to interconnected branches and ATMs, the Bank has a wide range of services like Internet Banking, Mobile Banking, Tele Banking and Any Where Banking, debit cards, online bill payment and call centre facilities to offer round the clock banking convenience to its customers. The Bank has been a pioneer in providing innovative technological solutions to its customers and the Bank_has_won_several_awards.

Ageas is an international insurance company with a heritage spanning more than 180 years. Ranked among the top 20 insurance companies in Europe, Ageas has chosen to concentrate its business activities in Europe and Asia, which together make up the largest share of the global insurance market. These are grouped around four segments: Belgium, United Kingdom, Continental Europe and Asia and served through a combination of wholly owned subsidiaries and partnerships with strong financial institutions and key distributors around the world. Ageas operates successful partnerships in Belgium, UK, Luxembourg, Italy, Portugal, Turkey, China, Malaysia, India and Thailand and has subsidiaries in France, Germany, Hong Kong and UK. It is the market leader in Belgium for individual life and employee benefits, as well as a leading non-life player, through AG Insurance, and in the UK, it has a strong presence as the third largest player in

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private car insurance and the over 50s market. It employs more than 13,000 people and has annual inflows of more than EUR 17billion.

VISION: To be the leading provider of wealth management, protection and recruitment solutions that meets the needs of the customers and adds values to their lives. MISSION: To continually strive to enhance customer experience through innovative product offerings, dedicated relationship management and superior service delivery while striving to interact with the customers in the most convenient and most cost effective manner. To be transparent with the customers and to act with integrity. To invest in and build quality human capital in order to achieve our mission.

VALUES Transparency Value to customers Financial strength Delivery on Promise Customer friendly Profit to Shareholders

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At IDBI Federal Life Insurance Co. Ltd., the Endeavour is to deliver products that provide value and convenience to the customer. Through a continuous process of innovation in product and service delivery, the intent is to deliver world class wealth management, protection and retirement solutions to Indian customers. TRACK RECORD Indias fastest growing life insurance company with Pan India presence. Modal premium Rs.316 crores in the first year of operation. Above Rs.3000 crores of sum assured, 90000 policies and 7000 distributors. Moved into 13th position from 18th as on 31st March 2009. Fastest Rs.100 crores and fastest Rs.300 crores business targets met since inception. Funds performing in the top quartile consistently. Achieved one of the lowest cost ratios in the industry.

PRODUCTS OFFERED BY IDBI FEDERAL LIFE INSURANCE CO. LTD. Childsurance Lifesurance Wealthsurance Group Microsurance Incomesurance Healthsurance Bondsurance Homesurance
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 Termsurance Loansurance Retiresurance

IDBI Federal Life Insurance Co. Ltd. provides its services through three means. They are: Bancassurance Channel, Agency Channel and Alliance Channel. The Thrissur branch of IDBI Federal Life Insurance Co. Ltd. deals with plans like childsurance, lifesurance, wealthsurance, termsurance and incomesurance. PRODUCT PROFILE IDBI Federal Life Insurance Product Table Retirement/Pension Plan Term Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Health Plan Retiresurance Termsurance Wealthsurance Bondsurance Incomesurance Healthsurance

PRODUCTS IN DETAIL Childsurance: IDBI federals childsurance is for the parents who are looking to make their childs future shock-proof is its powerful insurance benefits. Childsurance allows to you to protect your child plan with triple insurance benefits so that your wealth-building

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plan remains unaffected by unforeseen events and your child future remains secure. IDBI Federal Childsurance Dreambuilder Insurance Plan is a Unit linked plan which is loaded with lots of benefits which will help you to build, create and manage your investment with great flexibility so that your plan meets your specific needs. The following are the key benefits Childsurance Dreambuilder Insurance Plan.

Contribute money in a flexible way to suit customers savings habit A wide choice of investment options, based on customers return expectations and risk tolerance Investment strategy according to customers profile Helps to boost customers savings. Customers can decide on how to manage their investments. Helps to secure childs future goals Tax benefits on contributions and benefits Funds can be withdrawn in case of need, after five years

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Healthsurance: IDBI federal Healthsurance Hospitalization and surgical plan offers host of features and benefits that is designed to help the customers to manage extra burden that comes with hospitalization. This plan targets the customers within the age limit of 18 years 55 years. The following diagram shows the reasons behind why healthsurance plan should be included in the financial plan of every individual.

BENEFITS UNDER HEALTHSURANCE IDBI Federal Healthsurance Hospitalization and Surgical Plan is a power packed plan with loads of benefits that aim to keep you tension free.

Daily hospital cash benefit paid for each day (24 hours) spent in an eligible hospital (from day 2 onwards): Rs. 500, Rs. 1,000, Rs. 1,500 or Rs. 2,000 depending on customers choice of benefit level

Higher daily hospital cash benefits of Rs 3,000 and Rs. 4,000 available, subject to suitable proof of income

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Additional daily benefit equal to the daily hospital cash benefit, from day 2 onwards for hospitalization in an Intensive Care Unit, (up to an overall maximum daily benefit of Rs. 5,000)

Additional lump sum surgery benefit paid if customer undergo any of the wide range of surgical procedures specified in this brochure: either 50 or 100 times customers chosen daily benefit, depending on the severity of the surgery Three times customers daily hospital cash benefit paid as a lump sum convalescence benefit (maximum once per year) if customers hospital stay is at least 168 continuous hours (at least 7 consecutive days) Generous total benefit limits. Up to 500 times customers daily hospital cash benefit each year; up to 2,000 times customers daily hospital cash benefit over the lifetime of customers policy

Cover lasts until customer are aged 65 years, provided customer continue to pay their premiums in the agreed manner and as long as their lifetime benefits limit (2,000 times your daily hospital cash benefit) has not been reached Customers choice of nominee, to whom any outstanding benefits will be paid, in the event of the death of the insured person Low-cost monthly premiums that depend on customers age at the outset. Customers premium will never increase because of any changes in their age, health, or the number of claims they make. However, IDBI Federal Life Insurance Co. Ltd. does reserve the right (subject to IRDA approval) to increase premiums in the future across all its specified plans.

Excluded occupations under Healthsurance

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Applications for cover will not be accepted from anyone working in any occupation described below at the time of applying. In the event of a claim whilst the insured person is active in any of these occupations, the claim will only be considered with the provision of proof that the insured person was not working in any of these occupations at the commencement date.

Working in confined spaces in vessels, tunnels, underground civil works, mines, rigs (including offshore rigs) or ships

Industrial work using heavy machinery or working as a welder Working in the agricultural sector or as a forestry worker or as timber camp personnel

Working with toxic chemicals or explosives or in weapons manufacture or trading, or in the demolition trade

Working in transport business (unless only doing clerical work) Working at heights (at least 20 metres above the ground or floor level) Working as a fireman, security guard or patrolman, or as a member of the police force or serving in the armed forces

Lifesurance: IDBI federal Lifesurance Plan is a saving insurance plan that helps you to safeguard your wealth at the same time will present better opportunity to earning better return. KEY FEATURES OF LIFESURANCE SAVINGS INSURANCE PLAN

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Maturity Benefit On the maturity of your Lifesurance policy, provided all premiums have been paid in full when due we will pay you the sum insured along with the vested guaranteed additions, vested reversionary bonuses and terminal bonus, if any, in a lump sum.

Maturity Benefit = Sum insured + Vested guaranteed additions + Vested reversionary bonuses + Terminal bonus Death Benefit On the death of the life insured during the policy term, provided all premiums have been paid in full when due we will pay the beneficiary, the sum insured along with the vested guaranteed additions, vested reversionary bonuses, interim bonus, if any and terminal bonus, if any in a lump sum. Death Benefit = Sum insured + Vested guaranteed additions + Vested reversionary bonuses + Interim bonus (if any) + Terminal bonus Guaranteed Additions
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Guaranteed additions at the rate 50 per 1,000 sum insured will be added to your policy for each full annual premium that is due and paid in the first 5 years of the policy. In the case of premiums paid more frequently than annually, the guaranteed additions will be added on a pro rata basis as the due premiums are paid in the first 5 years of the policy. The vested guaranteed additions will become payable along with the sum insured at the time of a claim or maturity of the policy. Bonuses After the fifth policy year your Lifesurance policy will participate in any profits of our participating policyholders life fund by way of reversionary bonuses and possibly terminal bonus. The amount of any profits, and hence of any bonuses will depend on the future experience and performance of the fund. The bonuses will be declared by the Board of IDBI Federal Life Insurance Company each year, and once added they will form part of the guaranteed benefits of the policy. The Company may declare an interim bonus in the event of a claim before the next bonus declaration. The company may also declare a terminal bonus to be paid on maturity or death provided all the due premiums have been paid. Tax Benefits

Deduction under Sec 80C: The premiums that you invest in Lifesurance are eligible for deduction under Sec 80C of the Income Tax Act up to the limit of Rs. 1, 00,000 (along with other eligible investments).

Tax-free Benefits under Sec 10(10D): The maturity benefit as well as death benefit are tax-free under Sec 10(10D) of the Income Tax Act

There is also no tax deduction at source.

Flexible Premium Payment Term (PPT) & Policy Term (PT)

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Policy Term: You can choose the term at the end of which you wish to receive the maturity benefits. Lifesurance provides you the flexibility to choose between four policy terms 10, 15, 20 or 25 years. Premium Payment Term: You can choose the term for which you would like to pay premiums towards your Lifesurance Plan. The minimum Premium Payment Term is 5 years for policy terms of 15, 20 and 25 years. The minimum premium payment term is 6 years for policy term of 10 years. The maximum Premium Payment Term can be equal to the Policy Term. The minimum premium amount is Rs 20,000 for annual installments, Rs 10,000 for half-yearly installments, Rs 5,000 for quarterly installments and Rs 2,500 for monthly installments. Loans You can avail of the loan facility from IDBI Federal after the policy acquires surrender value. The loan amount granted will be up to 85% of the surrender value subject to terms and conditions specified by IDBI Federal from time to time. Advantage Women Lifesurance offers an additional premium discount for female insured persons. The basic premium payable for a female policyholder will be equivalent to the premium for a corresponding three-year younger male policyholder. Lifesurance Suvidha Savings Plan The IDBI Federal Lifesurance Suvidha Savings Insurance Plan (hereinafter referred to as Lifesurance) is a participating endowment plan that guarantees and allows you to accumulate considerable savings to meet customers long term responsibilities in life. Policy will participate in the surplus of the company's participating policyholders life fund, and customers share of this surplus will be

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added to customer policy, from the 4th policy year onwards, by way of reversionary bonuses and a terminal bonus added at the time of maturity, or on earlier death. As a consequence, participating policyholders who maintain their policies till maturity will enjoy the benefits of long term debt and equity investment while being protected from the short term volatility of the securities markets.

Features: Benefits at Maturity

Sum Insured along with guaranteed additions at the rate of Rs. 50 per 1,000 of the Sum Insured for the first 3 years of the policy +

Reversionary bonuses from the 4th policy year onwards +

Terminal bonus added at the time of maturity, or on earlier death

Plan benefits and Eligibility 1. Premiums are exclusive of service tax and education cess. a. As per the current tax laws, service tax applicable under the policy is 3.09 % (including education cess) of the premiums paid for the first year and 1.545% for the renewal premiums. Service tax and education cess are as per the extant laws.

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2. For Lifesurance Suvidha Savings, the maximum aggregate sum insured limit for an individual life is limited to Rs. 6, 00,000 for each 12 month period and to Rs. 20, 00,000 in total. These limits will be calculated after including all individual and group policies of IDBI Federal Life Insurance Co. Ltd, except the fully underwritten policies. 3. Guaranteed Death Benefit is Sum insured plus vested Guaranteed Additions.

Bondsurance: Bondsurance is designed for customer looking for guaranteed returns which will not get affected by financial market conditions. It offers guaranteed return on investment along with life insurance cover. Bondsurance Advantage Insurance Plan The IDBI Federal Bondsurance Advantage Insurance Plan is a single premium plan where you need to make just a one-time investment. You can choose a Maturity Period of 5, 7, 10, 15 or 20 years. At the end of the chosen period, you will receive a guaranteed maturity amount. In case of death of the insured person before the Maturity Date, a guaranteed Death Benefit will be paid. Thus you can get life insurance cover, while earning an assured return on your investment. Moreover, Bondsurance also offers you tax benefits as per section 80C & 10(10D) of the Income Tax Act, 1961. Flexibility to choose Policy term from multiple options:

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Customers can now choose policy term as 5yrs, 7yrs, 10yrs, 15yrs and 20yrs Multiple Cover options Customers can choose their plan from 3 available cover options as per their preference. They have now option to insure single life and joint life depending on the insurance cover option chosen by them. Death benefit In case of individual life, on death of the insured person the death benefit amount will be paid. In case of joint life, death benefit will be paid on the death of the last surviving insured person. Minor Life is insured: You can also take the policy on a minor as the Insured Person. In the case of a minor, the Bondsurance Advantage Insurance Plan will vest in the minor upon attaining majority. Maturity Benefit: Guaranteed maturity value is dependent on the policy term, premium amount, age of the individual and insurance cover option chosen. Decreasing sum insured options will enhance your returns. Surrender Option Bondsurance also provides liquidity before maturity. After 6 months from the commencement date, you have the option to prematurely redeem Bondsurance Advantage Insurance Plan by surrendering the policy

Customers are allowed after 6 months after the policy commencement date.

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Guaranteed surrender value will increase with the policy term. Special surrender value higher than Guaranteed surrender value may be payable.

Discount on single premium If customers choose a Maturity Benefit of Rs 1, 50,000 or higher, they will also get a discount on the single premium amount as per the Discount Table. Bondsurance Plan IDBI Federal Bondsurance Plan (Bondsurance) is a single premium plan which allows customer to make a one-time investment and get a guaranteed amount on maturity. Customer can choose a maturity period of 5 or 10 years for your investment. At the end of the chosen period, they will receive a guaranteed maturity amount. Besides the guaranteed maturity amount, Bondsurance also provides a life insurance cover. In case of death before the maturity date, a Death Benefit which is also guaranteed will be paid. Thus customer can get life insurance cover, while earning an assured return on their investment. A. Guaranteed Return on investment Bondsurance gives customer guaranteed returns on their one-time investment. All they have to do is choose the Maturity Benefit, and the Maturity Period for their investment. Based on customers choice, the investment they have to make by way of single premium is determined. B. Life Insurance Cover of 5 times the invested amount

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Besides giving assured returns, Bondsurance also provides a life insurance cover. In the unfortunate event of death of the Insured Person before the maturity date, a Death Benefit equal to five times the single premium amount will be paid. The Death Benefit (which is the Sum Insured) is guaranteed. The Plan will terminate upon payment of Death Benefit. The life insurance cover ensures that the financial security of loved ones is secured. Wealthsurance: Wealthsurance plan enables the policyholder to save and build wealth to meet their financial goals. Wealthsurance plan comes up with a wide range of 13 investment option and 7 insurance benefits with low charge structure and unmatched flexibility. Wealthsurance offers customers Insured Wealth Plans. They allow customers to create, build and manage wealth by giving several choices and great flexibility so that they plan meets their specific needs. Customers can decide how they wish to save so that it suits their savings habit. Customer can choose how their money is invested so that they can grow wealth as per their investment preferences. What is even better, Wealthsurance protects customers wealth plans with life insurance benefits so that their wealth-building efforts remain unaffected in unforeseen events and their financial goals can still be achieved. Wealth Plan with a powerful range of Investment Choices Wealth creation does not happen by chance, it needs a plan. Wealthsurance is a wealth plan which allows customers to build and manage wealth. Customer can save into the plan as much money as they want, whether at regular intervals or as per their convenience. Wealthsurance offers a wide choice of investment options from which they can select one or more, based on their preferences. The investment options offered are designed to meet the needs of all types of investors

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depending upon their risk appetite, stage of life or investment horizon. Customers can choose options that give: a. Assured fixed returns b. Variable returns linked to market performance or c. Returns linked to equity market but with protection of capital. Wealth grows in plan, based on the options chosen. Wealth Plan can be insured against unforeseen events Wealthsurance Plan can protect customers Wealth Plan against a range of events such as death, 17 major diseases, sickness requiring hospitalisation, serious accidental injuries or total and permanent disablement. With other investment products, if any such event happens, customer may not be able to save as planned or even be forced to withdraw from their savings. But in Wealthsurance , these benefits allow them to meet additional expenses without affecting their fund value so that their plans to save and accumulate wealth are not affected even if life throws surprises at them. Wealthsurance is for those who will live Life insurance is sometimes thought of as for those who might die, but Wealthsurance is for those who will live. Usually life insurance products provide benefits upon death, but Wealthsurance is designed to also give Living Benefits to ensure your well-being in your own lifetime. There are various Wealthsurance plans offered by the company such as Wealthsurance Maxigain InsurancePlan This plan maximizes the gains and the same time are shielded from potential losses. The plan provides a unique investment fund called the MaxiNAV
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Guaranteed Fund which offers the guarantee of the highest NAV achieved on the reset dates during the 7 years tracking period from the date of launch of the fund on the policy maturity date. This special feature can provide customers with benefit from market increases and protects them from market declines. Wealthsurance Dreambuilder Insurance Plan This plan ensures that customers goals of wealth creation are achieved even in the events of serious misfortune and remain unaffected in unforeseen events. This plan offers greater flexibility so that customer can create wealth as per specific needs and investment preferences. Wealthsurance Premier Insurance Plan This plan combines wealth creation and the insurance protection into one powerful financial solution. Unlike other investment alternatives, it allows customer to ensure that their goals of wealth creation are achieved even in case of serious illness. Homesurance: Homesurance protection plan provides full insurance cover for properties under construction, thus ensuring that beneficiary gets the full sanctioned amount in case of an unfortunate event. It also has an innovative fixed cover for those who would prepay their loans early. Homesurance Protection Plan The IDBI Federal Homesurance Protection Plan is a reducing term plan, which provides insurance cover equal to the outstanding balance of home loan. In the

41

unfortunate event of death of the home loan borrower, the insurance cover enables repayment of the home loan liability. Protection against loan liability A home loan is usually a large liability and if the breadwinner who would repay the loan were not to be there, it could become a serious burden to the family. The Homesurance Protection Plan protects against this liability. The specifics of the plan are as follows: 1. Cover Amount reduces over time Outstanding home loan amount normally reduces over time as customer repay by way of monthly installments. Accordingly, the cover amount under the Homesurance Protection Plan also reduces with time to reflect the outstanding loan amount. At the time of the plan, customer will receive a Policy Schedule based on the amount and terms of loan, which will show them the reducing cover amount over time. 2. Benefit Amount is paid on death In the event of death of the insured, insurer will pay either the cover amount as per the Homesurance Protection Plan Policy Schedule as on the date of death, or the actual outstanding balance in the insured loan account as on the date of death, whichever is higher. Death due to any cause including illness or accident is covered under the plan. Death, whether in India or abroad is also covered under the plan. Homesurance Plan IDBI Federal Homesurance Plan (Homesurance) is a mortgage reducing term plan which offers protection to a person and his family from their home loan

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liability. The plan provides a cover equal to the outstanding balance of home loan in the unfortunate event of expiry of the insured. A. Protection against Loan Liability Homesurance covers life for an amount equal to home loan liability as per the home loan schedule. In case of an unfortunate event of expiry of the insured, the outstanding balance amount is paid to the nominees in one lump sum, who may then settle the loan liability. B. Cover for Terminal Illness A unique feature of the Homesurance plan is that it pays an accelerated payment of death benefit upon the diagnosis of a terminal illness, where the insured has a medical prognosis of a life expectancy of six months or less. This helps to settle the home loan liability should an unforeseen terminal illness occur. C. Optional Insurance Benefits To protect customer and his family from unforeseen events, they can opt for optional insurance benefits as an addition to Homesurance base plan. The Optional Insurance Benefit is available only with the regular premium plan. Additional premiums should be paid for the term of the optional insurance benefit depending upon the sum insured chosen. Incomesurance: IDBI Federal Incomesurance Endowment and Money back Plan is a plan which is designed for the customers to reach their goals with confidence. The main features of this plan are: Premiums paid for a limited period

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 Guaranteed annual payout Minimum annual payout declared at the beginning Additional annual payout is declared each time the premium is paid. Additional annual payout is linked with G- sec interest rates Customers can take periodic payments or accumulate till maturity Lump sum cover or waiver of premium Tax benefits under Sec 80C and Sec 10(10D) IDBI Federal Incomesurance Endowment and Money Back Plan

(Incomesurance) not only gives unmatched transparency and flexibility but there are lots of other features which are inbuilt in the product like convenient premium payment options, Tax benefits and double advantage of Endowment and Money Back plan.

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Advantage of Endowment and Money Back

Tax Benefits Premiums waived in case of death Convenient premium payment options Complete transparency

Termsurance: Teramsurance protection plan of IDBI federal offers unique increasing cover option that can automatically increase the cover every year without increasing the premium. TermsuranceSeniors Insurance Plan Customers over the age of 50 can enroll for this plan till the maximum age of 85. The entry to the plan is guaranteed without any questions of the state of the health condition. In the unforeseen event of demise in the first two years of the policy, 125% of total premiums paid shall be returned. After two years, customers are insured for the amount of sum insured for life. The amount of premium and cover remain the same throughout the life of the policy, except after age 90. At age 90 the policy gets even better as premiums will stop, but life insurance cover will continue. There are no maturity benefits. Termsurance Premier Insurance Plan
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IDBI Federal Termsurance Premier Insurance Plan, a term insurance plan that gives insured the power and flexibility to take complete charge of the financial future of their loved ones. Termsurance is designed with a host of benefits and options aimed at satisfying needs. It has choice of policy term, flexible premium payment options and lots more. It also allows to create a plan as per insured and his familys needs and objectives, thus offering them a truly flexible protection plan.

Termsurance Protection Plan IDBI Federal Termsurance Protection Plan (Termsurance) comes with three cover options which insured can select on the basis of their requirement. Termsurance is designed with a host of benefits & options aimed at satisfying every need. It not only allows to customise plan as per individual and familys needs, it also comes with a host of benefits like convenient insurance cover options, flexible premium payment terms, choice of policy term and lots more flexible options.

Major benefits of Multiple Cover options

Multiple cover options give you tailor-made protection Flexibility in the policy term to suit your lifestage. Flexibility in premium payment terms to suit your wallet. Attractive discounts to encourage additional cover
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o Advantage Women o High Sum Insured Rebate

Tax benefits to help you grow your wealth faster

Termsurance Group Life Plan The IDBI Federal Termsurance Group Life Plan is a pure term plan designed to cater to a wide variety of formal and informal groups such as the EmployerEmployee groups, bank - depositor/customers groups, customer-supplier groups, professional and affinity groups. It is a group term insurance plan that provides basic life insurance protection to the members of the plan. Life insurance benefit for all members of the plan is provided by one policy document that is issued to the policyholder. The policyholder may differ for different groups. E.g. In the case of a Bank providing life insurance cover to their deposit account holders, the Bank will be the Master Policy Holder and the deposit account holder/ bank customer shall be a member of the policy. Similarly, for an employer- employee group, the employer will be the Master Policy holder and the employees shall be the members of the policy. Termsurance Grameen Bachat Yojana This is a low cost risk protection plan targeted at rural population. It is an ideal plan to protect the family members in the event of unfortunate demise of the major bread winner and also to save for specific needs like repayment of loan, daughters marriage or childs education. The plan offers life coverage at a nominal cost along with the option of refund of premium at maturity. Coverage terms offered are 3 years, 5 years and 10 years. The customer has the flexibility of getting the sum assured ranging from Rs. 5000 to Rs. 100000 in the multiples of Rs. 1000. IDBI

47

Federal is also providing another Grameen Suraksha Plan in rural area which is similar to this plan. Loansurance Loansurance is a cost effective way to ensure that the outstanding debt is settled in the unfortunate event of death of the insured. This plan provides cover to a person directly liable for loan repayment. There are two cover options available under this plan. Reducing Cover Under the option, the insurance cover reduces as per benefits schedule. The premium amount is computed over a period of time, taking into account initial loan interest rate, the loan term and outstanding loan amount. Level Cover This option provides a cover for the sum assured as specified by the insured and can be to the extent to the full agreed loan amount plus accrued interest as chosen by the insured member. This remains unchanged throughout the cover term. Thus even if the loan liability declines over time, the plan covers is the sum assured throughout the cover time. Microsurance IDBI Federal Group Microsurance Plan provides affordable life insurance cover to groups. This plan is extremely useful to micro finance institutions, self help groups and NGOs to insure the lives of their group members and thus provide security to

48

the group members families. The plan can also be used for providing loan protection to the group members families. Retiresurance This is a zero death benefit pension plan, wherein the insured can accumulate a corpus to enjoy pension after retirement. The plan is open for ages between 18-70 years, with vesting age between 40 and 75 years. This plan offers varied investment options spread between 100% debt to 100% equity to choose from. Flexibility to reduce future annual premium after completion of one year to at least 75% and not less than Rs. 10000 There is no switching cost under this plan. The plan also offers tax deduction under Sec. 80C and tax free returns under Sec. 10(10D)

Financial Information: The total premium earned for the half year ended September 30, 2010 was Rs.3427 million. The profit after tax for the same period is Rs.513 million. There have been 132 death claims reported during the period out of which 43 claims were settled and 19 claims were rejected.

Marketing Campaigns: IDBI Federal Life recently launched television commercials focusing on its frontline products like Wealthsurance and Incomesurance. The campaign taglines are Jisne bhi suna khareed liya and Guaranteed Income Ki Bhavishavani. Whereas the first advertisement reflects that the product is so great that whoever hears about it, buys it instantly, the second advertisement promises to be clear and transparent on the issue of returns in the investment

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product. IDBI Federal has also introduced two animation characters by the name of Happy and Lucky to promote the brand. To create an awareness of the products of the organization among the households, a painting competition Bright Sparks was conducted and certificates were awarded to all participants.

COMPETITION ANALYSIS IDBI FEDERAL LIFE INSURANCE Co. Ltd. is in a highly competitive segment i.e., insurance sector they are having large number of rival companies fighting along with them in taking control of the industry.

Threat of intense segment rivalry The major plus point for IDBI FEDERAL LIFE INSURANCE Co. Ltd. is the brand value of its partners. The competition in this market is a very difficult or tough. The market condition is oligopoly where a few number of big competitors are providing identical product and services differing only in quality of them. Each competitor has their own trademark attribute. As we know LICs attribute is their hold in rural market. But when we say about population growth, economic growth, or government policies insurance segment is very attractive because only 25% insurable person are insured secondly 80% population are under age of 45. Threat of new entrance Due to aggressive competition and high entry exit barrier, this is not attractive segment for new player. For entering in insurance field, mandatory capital is 100 crores. Secondly, foreign stake limited with 26%, third Indian company have no
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experience in insurance business. Exit barrier are also very high because, no company can leave market after entering due to loss because firstly, 100 crores will be lost secondly, their compensation (customer or other company) will be very high or more than deposited money. So in long run, company will try to less their business but they will not leave market. So this is good factor for IDBI FEDERAL LIFE INSURANCE Co. Ltd. Because, where entry or exit barrier are high, profit potential are also high. Threat of substitute product This is not attractive market in view of substitute goods because there is many substitutes in market but only service style is different. Different insurance company provides at least same product but presentation is different. In case of lower substitute (means investment purpose) many product in India for example, share, mutual fund, fixed deposit. Substitute place a limit on price and on profit. Threat of buyers growing power In India buyers growing power are increasing because they have more concentrated or organized towards market. Government has established insurance regulator (IRDA) in India for growing buyers barging power. Due to lowest switching, buyers are very price sensitive and buyers have many sources for knowing about different company product. Due to education buyer can analysis that, which product is good for him. So due to growing buyers power this segment is not good for new player. Threat of suppliers growing power Due to oligopoly market condition insurance company cannot raise price but they can increase their profit from selling more policies in market. In India, supply51

growing power (agent, broker, bancassurance) are growing due to lot of company availability in IDBI Federal Life Insurance Co. Ltd.

CHAPTER VI ANALYSIS
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ANALYSIS AND INTREPRETATION

The following schedule and diagram shows the percentage of sales of products in last year 2011. Table 6.1 Source Company records PRODUCT NAME Incomesurance Retiresurance(SP) Childsurance Lifesurance PERCENTAGE OF SALES 84.9 1.4 0.1 9.8

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Termsurance(LC) Wealthsurance(RP) Retiresurance(RP) Termsurance(ROP) Wealthsurance(SP)

0.3%Termsurance-ROP

0.4 0.2 2.0 0.3 0.8

PERCENTAGE OF0.2%Wealthsurance-RP SALES

1.4% 2% 9.8%

Retiresurance(SP) Retiresurance-RP

0.4%TermsuranceLC 0.1%Childsurance 0.8%Wealthsurance-SP

Lifesurance

Incomesurance 84.9%

Source - Table 6.1 The following schedule and diagram shows the percentage of sales of products in last year 2010. Table 6.2 Source Company records PRODUCT NAME PERCENTAGE OF SALES

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Incomesurance Retiresurance(SP) Childsurance Lifesurance Termsurance(LC) Wealthsurance(RP) Retiresurance(RP) Termsurance(ROP) Wealthsurance(SP)

52.00 3.00 0.1 9.8 0.4 24.00 2.0 0.3 8.4

Termsurance rop 0.3% Retiresurance-rp 2%

Percentage of sales
Wealthsurance-sp 8%

Wealthsurance-rp 24%

Incomesurance 52%

Termsurance-lc 1%

Lifesurance 10%

Childsurance 0.1%

Retiresurance-sp 3%

Source-table 6.2

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The following schedule and diagram shows the percentage of sales of products in year 2009. Table 6.3 Source Company records PRODUCT NAME Incomesurance Retiresurance(SP) Childsurance Lifesurance Termsurance(LC) Wealthsurance(RP) Retiresurance(RP) Termsurance(ROP) Wealthsurance(SP) PERCENTAGE OF SALES 50.00 3.00 0.6 12.00 0.8 21.00 2.0 0.5 10.1

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Termsurance-rop -1% Retiresurance-rp 2%

Percentage of sales
Wealthsurance-sp 10%

Wealthsurance-rp 21%

Incomesurance 50%

Termsurance-lc 1% Lifesurance Childsurance 12% 1%

Retiresurance-sp 3%

Sales of Incomesurance in 3 years

Sales of Incomesurance
90 80 70 60 50 40 30 20 10 0 2009 2010 2011 Sales

Sales of Wealthsurance (SP) in 3 years

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Sales of Wealthsurance(SP)
12 10 8 6 4 2 0 2009 2010 2011 Sales of Wealthsurance(SP)

Sales of Wealthsurance(RP) in 3 years

Sales
30 25 20 15 10 5 0 2009 2010 2011

Sales

Sales of Retiresurance(SP)

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Salesof Retiresurance(SP)
3.5 3 2.5 2 1.5 1 0.5 0 2009 2010 2011 Salesof Retiresurance(SP)

Sales of Childsurance in 3 years

Sales of Childsurance
0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2009 2010 2011 Sales of Childsurance

Sales of Lifesurance in 3 years

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Sales of Lifesurance
14 12 10 8 6 4 2 0 2009 2010 2011 Sales of Lifesurance

Sales of Termsurance(LC)

Sales of Termsurance(LC)
0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2009 2010 2011 Sales of Termsurance(LC)

Sales of Retiresurance(RP)

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Sales of Retiresurance(RP)
2.5

1.5 Sales of Retiresurance(RP) 1

0.5

0 2009 2010 2011

Sales of Termsurance(ROP) in 3 years

Sales of Termsurance(ROP)
0.6

0.5

0.4

0.3

Sales of Termsurance(ROP)

0.2

0.1

0 2009 2010 2011

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CHAPTER - VII FINDINGS

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FINDINGS
Incomesurance is getting sold more than any other product of IDBI Federal Life Insurance Co. Ltd. in Thrissur branch of the company and the sales of incomesurance has showed an increasing trend too. With that fact existing, this organization study has thrown some light on the reasons behind it. They are: As Incomesurance is a product which provides guaranteed returns, the executives of the company is encouraging more of this product to ensure the branchs reputation. The unexpected market conditions resulted in huge losses for the customers of IDBI Federal Life Insurance Co. Ltd. who has taken unit linked products. This also resulted in the huge sales of Incomesurance which is a risk free product.
63

 Many persons had chosen Incomesurance with a view of getting fund back at the time of professional course or marriage of their children. Tax benefits of this product have attracted a lot of people. Premium amount can be from Rs. 25000 to Rs. 100000. This flexible amounts is very much helpful for the policy holders. People have started to show their interest in other private insurance providers other than LIC. People have knowledge and awareness about the products through advertisements and other promotional activities. A high penetration of print, radio and TV advertisement campaigns over the years is beginning to have its impact now. Another important trend was in terms of people viewing insurance as a tax saving and investment instrument as much as protective one.

CHAPTER - VIII
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SUGGESTIONS

SUGGESTIONS

People were having good knowledge about insurance companies because of the advertisements and through agent each and every individual I met was at least visited by an insurance agent. The comparatively new player in insurance sector like IDBI FEDERAL LIFE INSURANCE Co. Ltd. must advertise well enough to reach most of the people, because the prospective insurance customer will always look for brand name. So, the IDBI FEDERAL LIFE INSURANCE Co. Ltd. must look forward to increase their brand image.

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 IDBI FEDERAL LIFE INSURANCE Co. Ltd. is highly concentrating on the high income segment of the overall population .Majority of the population consists of middle or lower income population so it advisable that IDBI FEDERAL LIFE INSURANCE Co. Ltd. must come up with marketing strategies which is useful for getting the attention of general public. Better service quality should include-issuing policy on time, providing claims on time, proper communication via mail or courier on timely basis to aware customer about the policy status. People are not much aware of alternative policy scheme (health, diabetics), so there are need to increase awareness of such type of policies among people. Mostly, people are not satisfied from the post service of insurance companies due to dependence on agents or no knowledge about process, so there should be need to increase awareness about self-service and awareness among people by training and advertisement. In insurance, process is too much time taking, when we compare to other financial tools, so process work should be less, effective and flexible.

BIBILIOGRAPHY Emerging Trends in Banking, Finance and Insurance Industry by Prof. Anand M.Agrawal & Krishn A.Goyal Principles of Insurance Management by Neelam C. Gulati

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 www.lifeinsurancetextbook.com Dalal street journal www.wikipedia.org www.idbifederal.com www.policybazaarinsurance.blogspot.com

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