[TITLE OF DISSERTATION]

Customer Satisfaction regarding the Kotak Mahindra Life Insurance

Directorate of Distance Education

Submitted to Lovely Professional University

In partial fulfillment of the requirements for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by: Name of the Student : Vikas Chugh Registration Number : 21000363

Supervisor: Project Guide: Malika Thakral Designation

Directorate of Distance Education LOVELY PROFESSIONAL UNIVERSITY PHAGWARA (Year of completion) 1

TO WHOMSOEVER IT MAY CONCERN

This is to certify that the project report titled Customer satisfaction regarding the Kotak Mahindra Life Insurance carried out by Mr.Vikas Chugh , S/o Ramesh Kumar Chugh has been accomplished under my guidance & supervision as a duly registered MBA student of the Lovely Professional University, Phagwara. This project is being submitted by him/her in the partial fulfillment of the requirements for the award of the Master of Business Administration from Lovely Professional University.

His/ her dissertation represents his/ her original work and is worthy of consideration for the award of the degree of Master of Business Administration.

___________________________________ (Name & Signature of the Project Guide) Designation: Date:

DECLARATION

I, "Vikas Chugh, hereby declare that the work presented herein is genuine work done originally by me and has not been published or submitted elsewhere for the requirement of a degree programme. Any literature, data or works done by others and cited within this dissertation has been given due acknowledgement and listed in the reference section.

______________________ (Student's name & Signature) _______________________ (Registration No.)

Date:__________________

ACKNOWLEDGEMENT

Perseverance, inspiration and motivation have always played a great role in the success of any venture. At this level of understanding it is often difficult to understand the wide spectrum of knowledge without proper guidance and advice. This report entitled "Customer satisfaction regarding Kotak Life Insurance, of Ludhiana Unit for fulfillment of M.B.A program. I extend my sincere gratitude to Mr.Mandeep Singh (Branch Manager) of kotak life insurance for granting me the opportunity to undergo my study in this organization and continuously guiding me throughout the span of my study. I am also thank full to Lect. Malika Thakral who have given me their full cooperation and devoted their valuable time for rendering me their needy services and guidelines during the training period. With those sincere and precious efforts, I have been able to complete my practical training successfully.

WITH SINCERE THANKS Vikas Chugh Reg. no.21000363

Chapter-1 Executive Summary:

Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. Essentially, a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed upon sum of money to the insured's named beneficiary so long as the insured's premiums are current. With 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 percent to the countrys GDP. In spite of all this growth 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 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 changes. The liberalization of the industry the insurance industry has never looked back and today stand as 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. Insurance is the business of providing protection against financial aspects of risk, such as those to property, life health and legal liability. It is one method of a greater concept known as risk management which is the need to mange uncertainty on account of exposure to loss, injury, disadvantage or destruction.

Classification of insurance:
The insurance industry in India can broadly classify in two parts. They are. 1) Life insurance. 2) Non-life (general) insurance.

INTRODUCTION ABOUT KOTAK LIFE INSURANCE Company History

Old Mutual has a history of more than 150 years as a South African based mutual society prior to its public listing in 1999. On this page you can access some of our historical highlights from 1845 to the present, pre- and post our demutualisation.

MARKET SHARE
Kotak Mahindra Group in India has market share of 2.2%. It has ability to enter in the adjacent market, which will help it to grow further in financial sector of India. Kotak Mahindra is a financial firm in India fulfilling the financial need of the public. Kotak Mahindra Group came into being in 1985 as Kotak Capital Management Finance Limited and the name changed to Kotak Mahindra Finance ltd. in 1986 when Harish Mahindra and Anand Mahindra took it. From Bill discounting activity in 1986 it had entered into the Lease and Hire Purchase Market in 1987. The Auto Finance division was started in 1990. In the 6

year 1998 Kotak Mahindra ventures into mutual Fund Market with the launch of Kotak Mahindra Asset Management Company. It got tied up with Old Mutual plc. and the Life Insurance Business in the year 2000. Year 2003 saw the conversion of Kotak Mahindra Finance Ltd. into a Commercial Bank. It is the first Indian Company to do so. In 2004 it launched a private equity fund named India Growth Fund. Like all other years the 2006 was also very fruitful for this group as it bought 25% stake held by Golden Sachs in Kotak Mahindra Capital Company and Kotak Securities. The services offered by Kotak Group are:
o o o o o o o o o o o o o

Bank Life Insurance Mutual Funds Securities Car Finance Kotak Reality Fund Kotak Private Equity Institutional Equities Investment Banking Kotak Mahindra International Commercial banking Stock Broking Financial need of individuals and corporate are taken care by Kotak Mahindra Bank

Review of literature
1. Doherty and Dionne , found that, some Current Insurance Markets Are Troubled

by the Presence of Systematic Risk Or by the Inability of the Parties to Specify the Distribution for Aggregate Loss. Such Circumstances Partly Characterise the Topical "Liability Insurance Crisis". We Compare the Performance of Alternative Vehicles for Risk Sharing Under These Circumstances. Specifically, We Show That Mutals Appear to Outperform Stock Insurance Companies When There Is Undiversifiable Risk. 7

2.

Pauly and Hirth , propose a guaranteed renewability (GR) insurance in which a sequence of premiums would enable insurers to break even and would be chosen by both low- and high-risk buyers, whether or not they had suffered a loss. The premium schedule would continually decline over time, as the insurer collects more information to determine who the low-risk individuals leave for the spot market. The concluding portion of the article discusses the limitations of a GR policy in the health and environmental liability area, the most serious being instability in estimates of underlying loss trends. Copyright 1995 by Kluwer Academic Publisher

3.

Zheng, Liu and Deng , this paper makes a new assessment and comparison of insurance growth levels of certain countries as well as certain economic groups, and further discusses the policy implications. The main conclusions of this paper are as follows. First, it is necessary to have a new recognition of the international insurance growth pattern: the relative level of insurance growth in developed markets has declined as compared with that indicated by traditional indicators, and the relative level of insurance growth in developing markets has increased.

4.

Vuorinen, Jarvinen and Lehtine , explained, the widely used strategy to cope with the dangers of foreign investment by hedging against potential losses is political risk insurance. All multinational corporations are subject to political risk perils.Broadly speaking, there are six different types of political risk: confiscation, expropriation and nationalization; contract repudiation and frustration; unfair regulatory environment; currency inconvertibility; contingency; and war risk. Similarly, policies available can be defined according to these six categories.

5.

Garcia, Camino and Molero ,in this paper offers a diagnosis of the current stage

of development of insurance firms operating in Belgium and Spain according to the differential patterns they exhibit in the adoption of the concept of marketing. The theoretical approach we use here has been defined in order to include three critical 8

dimensions: the organizational process that encompasses the marketing adoption concept; the extent to which differential marketing patterns are related to business and economic performance; and finally to identify the influence of managerial decision-making and their planned patterns of strategic behavior in the development and ongoing process of marketing adoption.

Objective:
The main of the present study of is accomplish the following objective. 1. 2. 3. To know about brand awareness of Kotak Life Insurance and customers preference about Kotak Life Insurance. According the market survey come know about how much potential of insurance market in our city. 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 ever is going at the particular point of time.

SURVEY AND RESEARCH

TITLE: To study the customer satisfaction regarding of kotak mahindra life insurance. TITLE JUSTIFICATION: 9

The above title is self explanatory. The study deals mainly with studying the buying

pattern

in the insurance industry with a special focus on Kotak life Insurance. The various segments of the markets divided in terms of Insurance Needs, Age groups , Satisfaction levels etc will also studied. SIGNIFICANCE OF THE STUDY: This is a limited study which takes into consideration the responses of 100 people. This data can be extrapolated to take in the trends across the industry. The significance for the industry lies in studying these trends that emerge from the study. It is a rapidly changing and evolving sector. People are only beginning to wake up to its vast possibilities. A study like this can attempt to guide the future of the industry based on current trends.

SCOPE OF THE STUDY:

The data for the research was collected from different zones of Ludhain City and . PRODUCT SCOPE: The research was conducted to find out about the preference and perception of the target population for different insurance products. The investment pattern and strategies were discovered through this research. Also the awareness about Kotak Life Insurance was also found out.

TARGET POPULATION:
The target population included most of the categories of people like Service class, business class, students, house-wives etc. RESEARCH DESIGN: The research is primarily both exploratory as well as descriptive in nature. The sources of information are both primary & secondary. A well-structured questionnaire was prepared and personal interviews were conducted to collect the customers perception and buying behavior, through the questionnaire.

DATA COLLECTION: Primary Data: In Primary data, structured questionnaire was made and the target respondents were asked to fill the questionnaire. Thus a large amount of data was collected. 10

Secondary Data: Secondary data was collected from various sources such as internet, news papers, publications and financial magazines. QUESTIONNAIRE DESIGN: Objective was to make respondents little familiar with the context of the questions. This was also aimed at collecting data about the sample profile thatll be subsequently analyzed so that the scope of the project is fully explored. Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study was done in order to know the accuracy of the Questionnaire. The final Questionnaire was arrived only after certain important changes were done. Thus my sampling came out to be judgmental and convenient. CONCLUSION After overhauling the all situation that boosted a number of Pvt. Companies associated with multinational in the Insurance Sector to give befitting competition to the established behemoth Kotak in private sector, we come at the conclusion that

There are very tough competitions among the private insurance companies on the level of new trend of advertising to lull a major part of Customers. Kotak is not left behind in the present race of advertisement. The entry of more Pvt. Players in the Insurance Sector has expanded the product segment to meet the different level of the requirement of the customers. It has brought about greater choice to the customers.

Kotak has vast market and very firm grip on its traditional customers and monopoly of life insurance products.

IRDA is also playing very comprehensive role by regulating norms mandating to private players in this sector, that increases the confidence level of the customers to the private players.

11

Suggestions

The study has provided with the useful data from the respondents. There has a lot to be recommended. Following are the recommendations:

There is a need for better promotion for the investment products & services. The bank should advertise its products through television because it will reach to the masses.

More returns should be provided on Insurance plans.

As the bank provides the Insurance facility to its customers. It should provide this facility by tie up with the other Insurance organizations as well. The main reason is that, the entire customers do not want Insurance of only one company. They should have choice while selecting a suitable Insurance plans. This will definitely add to the goodwill & profit for the bank.

12

Table of Contents Chapter 1 Particulars Introduction to subject 1.1 Customer satisfaction 1.2 Insurance 1.3 Classification of insurance 1.4 History of Insurance sector in India 1.5 IRDA 1.6 Review of Literature 2 Introduction of KOTAK LIFE INSURANCE 2.1 About Kotak Life Insurance 2.2 Vision and Mission 2.3 Profile of Organization 2.4 Recent Achievements 2.5 Product range of company 2.6 Market share of company 2.7 SWOT Analyses 3 Objectives & Research Methodology 3.1 Objective 3.2 Survey and Research 3.3 Sources of Data 3.4 Limitations 4 5 Data Presentation, Analysis, and Interpretation Summary 5.1Conclusion 5.2Suggestion 6 7 Refrences Appendix 7.1 Financial Statements 7.2 Questionnaire 13 60-69 69-73 56-57 57-58 59 39-40 41 42 42-43 44-55 25-27 28 29 30-32 32-34 35 36-37 15 16-17 18-20 20-22 22-23 23-25 Page No.

14

Chapter-1
Introduction to Subject:
1.1 Customer Satisfaction: Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals." In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a customer satisfaction metric very useful in managing and monitoring their businesses. It is seen as a key performance indicator within business and is often part of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. "Within organizations, customer satisfaction ratings can have powerful effects. They focus employees on the importance of fulfilling customers expectations. Furthermore, when these ratings dip, they warn of problems that can affect sales and profitability. These metrics quantify an important dynamic. When a brand has loyal customers, it gains positive word-ofmouth marketing, which is both free and highly effective." Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able do this, firms need reliable and representative measures of satisfaction. "In researching satisfaction, firms generally ask customers whether their product or service has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When customers have high expectations and the reality falls short, they will be disappointed and will likely rate their experience as less than satisfying. For this reason, a luxury resort, for example, might receive a lower satisfaction rating than a budget moteleven though its facilities and service would be deemed superior in 'absolute' terms."

15

1.2 Insurance:

Life Insurance: Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. Essentially, a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed upon sum of money to the insured's named beneficiary so long as the insured's premiums are current. With 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 1520% annually. Together with banking services, it adds about 7 percent to the countrys GDP. In spite of all this growth 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.

16

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 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 changes. The liberalization of the industry the insurance industry has never looked back and today stand as 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. Insurance is the business of providing protection against financial aspects of risk, such as those to property, life health and legal liability. It is one method of a greater concept known as risk management which is the need to mange uncertainty on account of exposure to loss, injury, disadvantage or destruction. The business of insurance is related to the protection of the economic values of assets. Every asset has a value. The asset would have been created through the efforts of the owner. The asset is valuable to the owner, because he expects to get some benefit from it. The benefit may be an income or in some other form. In India, insurance began in 1818 with life insurance being transacted by an English company. The first insurance company was the Bombay mutual assurance society ltd, formed in 1870 in Mumbai. Insurance helps to reduce the consequences of adverse situation. Insurance is the method of spreading and transfer of risk. The fortunate many who are exposed to some or similar risk shares loss of the unfortunate. Insurance does not protect the assets but only compensates the economic or financial loss.

17

In insurance the insured makes payment called premiums to an insurer, and in return is able to claim a payment from the insurer if the insured suffers a defined type of loss. This relationship is usually drawn up in a formal legal contract. Insurance companies also earn investment profits, because they have the use of the premium money from the time they receive it until the time they need it to pay claims. This money is called the float. When the investments of float are successful they may earn large profits, even if the insurance company pays out in claims every penny received as premiums. In fact, most insurance companies pay out more money than they receive in premiums. The excess amount that they pay to policyholders is the cost of float. An insurance company will profit if they invest the money at a greater return than their cost of float. An insurance contract or policy will set out in detail the exact circumstances under which a benefit payment will be made and the amount of the premiums. Marine insurance is the oldest type of insurance and one of the earliest records of a marine policy relates to a Mediterranean voyage in 1347. This was followed by life insurance some 300 years later. Fire insurance, however, did not begin until after the Great fire of London in 1666. In India all the three insurance developed as under

Fire Insurance Marin insurance Life Insurance 1.3 Classification of insurance:

The insurance industry in India can broadly classify in two parts. They are. 1) Life insurance. 2) Non-life (general) insurance.

1) Life insurance:Traditionally, life insurance used to provide financial protection to your family and dependents in the event of any unforeseen event or your untimely death. But nowadays, life insurance has become synonymous with savings, wealth generation and protection. Life insurance companies-these days-provide plans through which you can not only secure the 18

financial future of your dependents in the event of death but also build wealth for them and be financially secure from eventualities such as disease and disability. In 1818 British introduced to India, with the establishment of the oriental life insurance company in Calcutta. The first Indian owned Life Insurance Company; the Bombay mutual life assurance society was set up in 1870. The life insurance act, 1912 was the first statuary measure to regulate the life insurance business in India. In 1983, the earlier legislation was consolidated and amended by the insurance act, 1938, with comprehensive provisions for detailed effective control over insurance. The union government had opened the insurance sector for private participation in 1999, also allowing the private Companies to have foreign equity up to 26%. Following the opening up of the insurance sector, 12 private sector companies have entered the life insurance business.

Different Types of Life Insurance Plans:

Traditional life insurance plans: Traditional life insurance plans, also known as non-unit linked insurance plans, ensure that the majority of the investments made by the policyholders are in to safe debt instruments. These plans are ideal for risk-averse investors as they provide assurance of returns to a large extent.

Unit Linked Insurance Plans (ULIPs): ULIPs, also known as market-linked life insurance plans, allow for investments made by the policyholders to get exposed to equities. ULIPs are suited for customers who aim for wealth creation over a long term.

Benefits of life insurance:

Life insurance is required because of the following factors -

19

Life insurance takes care of those who are financially dependent on you even when you are not around to look after them. Retirement planning takes care of your retirement, as there is no guarantee of a consistent income post retirement. The expenses you may incur in future will keep increasing due to inflation, and thus even a fluctuation in your income may lead to a compromised lifestyle. Savings plan enables individuals to secure their financial future by helping you to get attractive returns.

2) Non-life (general) Insurance:Triton insurance co. ltd was the first general insurance company to be established in India in 1850, whose shares were mainly held by the British. The first general insurance company to be set up by an Indian was Indian mercantile insurance co. Ltd., which was stabilized in 1907. There emerged many a player on the Indian scene thereafter. The general insurance business was nationalized after the promulgation of General Insurance Corporation (GIC) OF India undertook the post-nationalization general insurance business.

1.4 Brief History of the Insurance Sector in India

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era past few centuries yet its beginnings date back almost 6000 years.

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Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and these companies were not insuring Indian natives. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage. The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 Crore, it rose to 176 companies with total business-in-force as Rs.298 Crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also nonlife insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January 1956 that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian 21

companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

1.5 The Insurance Regulatory and Development Authority (IRDA):

Insurance Regulatory & Development Authority is regulatory and development authority under Government of India in order to protect the interests of the policyholders and to regulate, promote and ensure orderly growth of the insurance industry. It is basically a ten members' team comprising of a Chairman, five full time members and four part-time members, all appointed by Government of India. This organization came into being in 1999 after the bill of IRDA was passed in the Indian parliament. Powers and Functions of IRDA

It issues the applicants in insurance arena, a certificate of registration as well as renewal, modification, withdrawal, suspension or cancellation of such registrations. It protects the interests of the policy holders in any insurance company in the matters related to the assignment of policy, nomination by policy holders, insurable interest, and resolution of insurance claim, submission value of policy and other terms and proposals in the contract.

It also specifies obligatory credentials, code of conduct and practical instructions for mediator as well as the insurance company. Apart from this, it also defines the code of conduct for the surveyors and loss assessors involved with the insurance business.

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One of the major functions of IRDA includes endorsing competence in the insurance business. Apart from this, upholding and regulating professional organizations in insurance and re-insurance business is also a major duty of IRDA.

IRDA is also entitled to for asking information, undertaking inspection and investigating the audit of the insurers, mediators, insurance intermediaries and other organizations related to the insurance sector.

It is also concerned with the regulation of the rates, profits, provisions and conditions that may be offered by insurers in respect of general insurance business if it is not controlled or regulated by the Tariff Advisory Committee.

It is also entitled to supervise the functioning of the Tariff Advisory Committee. IRDA specifies the terms and pattern in which books of accounts are to be maintained and statement of accounts shall be provided by insurers and other insurance mediators.

Impact Of IRDA On Indian Insurance Sector The creation of IRDA has brought revolutionary changes in the Insurance sector. In last 10 years of its establishment the insurance sector has seen tremendous growth. When IRDA came into being; only players in the insurance industry were Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC), however in last decade 23 new players have emerged in the filed of insurance. The IRDA also successfully deals with any discrepancy in the insurance sector.

1.6 Review of literature

1. Doherty and Dionne , found that, some Current Insurance Markets Are Troubled by the Presence of Systematic Risk Or by the Inability of the Parties to Specify the Distribution for Aggregate Loss. Such Circumstances Partly Characterise the Topical "Liability Insurance Crisis". We Compare the Performance of Alternative Vehicles for Risk Sharing Under These Circumstances. Specifically, We Show That Mutals Appear to Outperform Stock Insurance Companies When There Is Undiversifiable Risk. 2. Pauly and Hirth, propose a guaranteed renewability (GR) insurance in which a sequence of premiums would enable insurers to break even and would be chosen by both low- and high-risk

23

buyers, whether or not they had suffered a loss. The premium schedule would continually decline over time, as the insurer collects more information to determine who the low-risk individuals leave for the spot market. The concluding portion of the article discusses the limitations of a GR policy in the health and environmental liability area, the most serious being instability in estimates of underlying loss trends. Copyright 1995 by Kluwer Academic Publisher

3. Zheng, Liu and Deng, this paper makes a new assessment and comparison of insurance growth levels of certain countries as well as certain economic groups, and further discusses the policy implications. The main conclusions of this paper are as follows. First, it is necessary to have a new recognition of the international insurance growth pattern: the relative level of insurance growth in developed markets has declined as compared with that indicated by traditional indicators, and the relative level of insurance growth in developing markets has increased.

4.

Vuorinen, Jarvinen and Lehtine, explained, the widely used strategy to cope with the dangers of foreign investment by hedging against potential losses is political risk insurance. All multinational corporations are subject to political risk perils.Broadly speaking, there are six different types of political risk: confiscation, expropriation and nationalization; contract repudiation and frustration; unfair regulatory environment; currency inconvertibility; contingency; and war risk. Similarly, policies available can be defined according to these six categories.

5.

Garcia, Camino and Molero ,in this paper offers a diagnosis of the current stage

of development of insurance firms operating in Belgium and Spain according to the differential patterns they exhibit in the adoption of the concept of marketing. The theoretical approach we use here has been defined in order to include three critical dimensions: the organizational process that encompasses the marketing adoption concept; the extent to which differential marketing patterns are related to business and economic performance; and finally to identify the influence of managerial decision-making and their planned patterns of strategic behavior in the development and ongoing process of marketing adoption. 24

6.

Pauly and Mark, in this paper discuss the theoretical and empirical findings

concerning insurance reimbursement of patients or providers by insurers operating in private markets or in mixed public and private systems. Most insurances other than health insurance do not "reimburse"; instead they pay cash to insureds conditional on the occurrence of a prespecified event. In contrast, health insurance ties the payment to medical expenditures or costs incurred in some fashion, often making payments directly to medical providers.

7.

Janvry and Alain, explained the practice of mutual insurance is conditioned by two types of transaction costs: "association" costs in establishing links with insurance partners and "extraction" costs in using these links to implement insurance transfers. Data on insurance-motivated water exchanges among households along two irrigation canals in Pakistan show that households exchange bilaterally with neighbors and family members but the majority exchange with members of tightly knit clusters.

8.

Fleurbaey and Bossert, analyze the equity properties of insurance premium schemes where agents are partitioned into groups with different average accident probabilities and each individual has to pay a premium according to the average probability of the group to which it belongs. In particular,they examine the question whether choosing finer partitions to define these groups generates more equitable situations than coarser groups. Though it turns out that partitioning the agents into finer groups can never be Lorenz dominated by the coarser partition, it cannot be guaranteed that finer partitions represent improvements over coarser ones except in very restrictive circumstances.

9.

Sleet, explained that social insurance arrangements that are optimal from the perspective of a utilitarian planner confronting a population of privately informed agents frequently exhibit an "immiseration" property - with probability 1 an agent's continuation utility will drift downwards to its minimal level. Thus, the ex ante optimal provision of incentives implies severe ex post inequality and are time 25

inconsistent. This paper introduces an additional friction: it assumes that the utilitarian planner can not commit.

10.

Bhattacharya, Goldman and Sood, explained that secondary life insurance markets are growing rapidly. From nearly no transactions in 1980, a wide variety of similar products in this market has developed, including viatical settlements, accelerated death benefits, and life settlements and as the population ages, these markets will become increasingly popular.

CHAPTER-2
Introduction of KOTAK LIFE INSURANCE

2.1 About Kotak Mahindra Old Mutual Life Insurance: Kotak Mahindra Old Mutual Life Insurance Ltd is a 74:26 joint venture between Kotak Mahindra Bank Ltd., its affiliates and Old Mutual plc. The company started operations in 2001, and strives to offer its customers outstanding value through high customer empathy, consistent and benchmarked service and a suite of products that leverage the combined prowess of protection and long term savings. The company covers over 4 million lives and is one of the fastest growing insurance companies in India. Established in 1985, the Kotak Mahindra Group is one of Indias leading financial services conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Groups flagship company, received a banking license from the Reserve Bank of India (RBI). With this, KMFL became the first non-banking finance company in India to become a bank Kotak Mahindra Bank Limited. 26

The Kotak Mahindra Group has a consolidated net worth of Rs 12,901 crore (approx US$ 2.5 billion) as on March 31, 2012. The group offers a wide range of financial services that encompass every sphere of life. From commercial banking, to stock broking, mutual funds, life insurance and investment banking, the group caters to the diverse financial needs of individuals and the corporate sector. The group has a wide distribution network through branches and franchisees across India, and international offices in London, New York, California, Dubai, Abu Dhabi, Bahrain, Mauritius and Singapore

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28

29

2.2 Vision and Mission: An uncommon bond. Strengthened by a common vision. Apart from common beliefs, values and objectives we believe in the vision of a better tomorrow. It is this deep veneer of faith that has brought us together and fortified our bond. The global Indian financial services brand Our customers will enjoy the benefits of dealing with a global Indian brand that best understands their needs and delivers customised pragmatic solutions across multiple platforms. We will be a world-class Indian financial services group. Our technology and best practices will be benchmarked along international lines while our understanding of customers will be uniquely Indian. We will be more than a repository of our customers' savings. We, the group, will be a single window to every financial service in a customer's universe. The most preferred employer in financial services A culture of empowerment coupled with a spirit of enterprise, attracts bright minds with an entrepreneurial streak to join us and stay with us. Working with a home-grown, professionally-managed company, which has partnerships with international leaders, gives our people a perspective that is universal as well as unique. The most trusted financial services company We will create an ethos of trust across all our constituents. Adhering to high standards of compliance and corporate governance will be an integral part of building trust. Value creation Value creation rather than size alone will be our business driver.

30

2.3 Management Overview: Kotak Life Insurance work as a team and have a flat management structure. Our top management has many years of experience which has helped guide the company into a position of leadership.

Mr. Gaurang Shah Director

Mr. G Muralidhar Managing Director

Mr. Sunil Sharma Appointed Actuary, Kotak Mahindra Old Mutual Life Insurance Ltd

Mr. Sudhakar Shanbag Chief Investment Officer, Kotak Mahindra Old Mutual Life Insurance Ltd

Mr. Suresh Agarwal Executive Vice President and Head, Distribution & Strategic Initiatives Ms. Kirti Patil Senior Vice President and Head, Information Technology

2.4 ACHIEVEMENTS
31

2006 Best equity House in India by Euro Money Best Equity House in India by Asia Money

2007 Indias Best Equity House in India by Finance Asia Best Equity House in India by Euro Money Best Equity House in India by Asia Money Best India Equity House by IFR

2008 Best Broker in India by Finance Asia Best Equity House in India by Euro money

2009

Ranked no.1 in six categories in the Annual Euro money Private Banking Survey Poll for 2009 for India

Best Investment Bank in India by Finance Asia

Ranked #1 in the league table for Book runner/Lead Manager in public equity offerings in terms of the value of transaction completed during fiscal 2009 according to Prime Database.

2010 Best Broker In India by Finance Asia

Topped the best Mutual Fund House in the NDTV Business Leadership Awards2010

Best Bond Fund Group Over Three Years by Lipper Fund Awards India Ranked the best debt fund over 5 years by lipper for the Kotak Bond Regular Plan 32

Ranked ICRA- MFRI and was the recipient of the Silver Awards by ICRA for the

Kotak Bond Regular Plan

2011 Most Popular Inventor Relation Website for the Asia/Pacific Region Conducted by IR Global Rankings

Emerged winner in 16 categories in the Euro money Private Banking Poll2011, including the Best local Private Bank.

2.6 Product Range: Protection Plans Insurance Protection plans help you secure your loved ones' future against life's uncertainties. A term life insurance policy is one where the person insured paid a certain premium periodically and either receives the benefits at the term or, in the event of the assured person's death, the family gets the benefit. These plans are quite cost-effective as they focus on providing only life cover and no other returns.

Kotak Saral Suraksha Kotak e-Term/ e-Preferred Term Kotak Loan Protection Plan Kotak Term Plan/ Preferred Term Plan Kotak Eternal Life Plans

Retirement Plans Retirement Planning ensures that you enjoy the same lifestyle which you are used to and following the same hobbies and pleasurable activities, even years after your retirement and do not depend upon your kin for support. A sound pension plan also guarantees the financial independence of the family in the unfortunate event of the insured's demise.

Kotak Capital Multiplier Plan Kotak Retirement Income Plan

33

Savings & Investment Plans The Savings and Investment Plans work as growth plans that help you maximize wealth creation. In the recent times, life insurance products have evolved beyond providing just 'risk protection'. Today, life insurance plans are attractive options for creating wealth - an investment vehicle that can maximize returns. Such investment plans give you competitive returns apart from added incentives like bonuses. These growth plans provide the dual benefits of financial protection as a risk cover and attractive returns over a long term.

Kotak Assured Income Plan Kotak Platinum Kotak Single Invest Advantage Kotak Ace Investment Plan Kotak Wealth Insurance Kotak Secure Invest Insurance Kotak Endowment Plan Kotak Money Back Plan Kotak Premium Return Plan Kotak Surakshit Jeevan

Child Plans Whether it is to fund an education or a new age career choice or a fairytale wedding or any other purpose for the well being of your kid through his/her childhood and teenage years, a child plan policy provides for all the benefits and helps you plan a financially secure future for your child.

Kotak Headstart Child Assure Kotak Child Advantage Plan

Group Plans Providing your employees with various group life insurance policies is one way of showing them that you truly care about them. When your employees are happy and satisfied, they automatically take pride in working for your organization which, in turn, increases your organisation's productivity and output. Thus, group life insurance policies not only help you retain employee but also improve their efficiency and in the long term, boost profits.

34

Kotak Group Shield Kotak Group Assure Kotak Term Grouplan Kotak Gratuity Group Plan Kotak Credit-Term Grouplan Kotak Complete Cover Grouplan

Rural Plans Kotak Gramin Bima Yojana protects your loved ones against uncertainties and provides you with guaranteed returns, just like your fixed deposit. The plan allows you to pay a one-time premium thus saving you the hassle of annual payments and also ensures that you get 1.5 times the actual principle on maturity.

Kotak Gramin Bima Yojana

35

2.6MARKETSHARE

36

Kotak Mahindra Group in India has market share of 2.2%. It has ability to enter in the adjacent market, which will help it to grow further in financial sector of India. Kotak Mahindra is a financial firm in India fulfilling the financial need of the public. Kotak Mahindra Group came into being in 1985 as Kotak Capital Management Finance Limited and the name changed to Kotak Mahindra Finance ltd. in 1986 when Harish Mahindra and Anand Mahindra took it. From Bill discounting activity in 1986 it had entered into the Lease and Hire Purchase Market in 1987. The Auto Finance division was started in 1990. In the year 1998 Kotak Mahindra ventures into mutual Fund Market with the launch of Kotak Mahindra Asset Management Company. It got tied up with Old Mutual plc. and the Life Insurance Business in the year 2000. Year 2003 saw the conversion of Kotak Mahindra Finance Ltd. into a Commercial Bank. It is the first Indian Company to do so. In 2004 it launched a private equity fund named India Growth Fund. Like all other years the 2006 was also very fruitful for this group as it bought 25% stake held by Golden Sachs in Kotak Mahindra Capital Company and Kotak Securities. The services offered by Kotak Group are:
o o o o o o o o o o o o o

Bank Life Insurance Mutual Funds Securities Car Finance Kotak Reality Fund Kotak Private Equity Institutional Equities Investment Banking Kotak Mahindra International Commercial banking Stock Broking Financial need of individuals and corporate are taken care by Kotak Mahindra Bank

37

2.7 SWOT Analyses:

STRENGTHS:
I.

Financial Acumen - Holds a stable and diversified portfolio and has received some of the highest ratings in financial strength from industrys independent rating agencies. 38

II.

Disciplined fund management - Years of experience in asset management, and a strong track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III.

Innovativeness - Known for being an innovator in providing world-class pragmatic financial solutions, with a constant focus on customization and flexibility Unrelenting Customer Focus - A highly committed sales force, with customer satisfaction as the key driving force - a major differentiator Transparency in Services - Daily declaration of fund performances, regular performance benchmarking, well regulated asset management, and monthly newsletter on market updates

IV.

V.

WEAKNESSES: Industry in nascent stage. Rural areas still not covered. Not very known among Indian population. Lack of credibility among the people because Kotak being a private player. Premiums are high as compared to its competitors. Very few branches in the country. Products:

The policy doesnt have the surrender option before third year. Plan does not offer any guarantee or assured return. Product profile is not very comprehensive. Mortality, management and administrative charges are sky scrapping as
compared to its competitors.

OPPORTUNITIES: Liberalization of Indian economy. As the industry is growing the whole market is virgin.

39

 The whole private sector is opened to be trapped even though the competition is fierce from government owned insurance companies. Its a volume business that is even if the company has few good corporate the turnover cease to increase by manifold. Products: Preserver funds look good due to comfortable liquidity in the economy and there is little chance hike in short-term rate by RBI. Finance minister unveiled a budget favoring consumer spending, boosting demand and therefore higher economic growth.

THREATS The government players will become aggressive thus growth is going to be tough. Entry of other players is not ruled out. Apprehension towards Kotak being a private life insurance company. We expect the industry to rationalize in future that is mergers and acquisitions will happen, which will impact the industry and Kotak life fortunes.

Products: Past performance of these plans is not indicative of the future performance of the plan. The sum invested in the funds is subject to market risks and there can be no assurance that the objective of plan will be achieved. All benefits payable under the policy are subject to tax laws and other financial enactment, as they exist from time to time.

40

CHAPTER-3
Objectives & Research Methodology 3.1 Objective
The main of the present study of is accomplish the following objective. 1.To know about brand awareness of Kotak Life Insurance and customers preference about Kotak Life Insurance. 2.According the market survey come know about how much potential of insurance market in our city. 3. 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 ever is going at the particular point of time.

3.2 SURVEY AND RESEARCH

TITLE: 41

To study the customer satisfaction regarding of kotak mahindra life insurance. TITLE JUSTIFICATION: The above title is self explanatory. The study deals mainly with studying the buying pattern

in the insurance industry with a special focus on Kotak life Insurance. The various segments of the markets divided in terms of Insurance Needs, Age groups , Satisfaction levels etc will also studied. SIGNIFIGANCE OF THE STUDY: This is a limited study which takes into consideration the responses of 100 people. This data can be extrapolated to take in the trends across the industry. The significance for the industry lies in studying these trends that emerge from the study. It is a rapidly changing and evolving sector. People are only beginning to wake up to its vast possibilities. A study like this can attempt to guide the future of the industry based on current trends.

SCOPE OF THE STUDY:

The data for the research was collected from different zones of Ludhiana City. PRODUCT SCOPE: The research was conducted to find out about the preference and perception of the target population for different insurance products. The investment pattern and strategies were discovered through this research. Also the awareness about Kotak Life Insurance was also found out.

TARGET POPULATION:
The target population included most of the categories of people like Service class, business class, students, house-wives etc. RESEARCH DESIGN: The research is primarily both exploratory as well as descriptive in nature. The sources of information are both primary & secondary. A well-structured questionnaire was prepared and personal interviews were conducted to collect the customers perception and buying behavior, through the questionnaire.

3.3Sources of Data

42

DATA COLLECTION: Primary Data: In Primary data, structured questionnaire was made and the target respondents were asked to fill the questionnaire. Thus a large amount of data was collected. Secondary Data: Secondary data was collected from various sources such as internet, news papers, publications and financial magazines. QUESTIONNAIRE DESIGN: Objective was to make respondents little familiar with the context of the questions. This was also aimed at collecting data about the sample profile thatll be subsequently analyzed so that the scope of the project is fully explored. Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study was done in order to know the accuracy of the Questionnaire. The final Questionnaire was arrived only after certain important changes were done. Thus my sampling came out to be judgmental and convenient.

3.4 Limitations:
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 today also there is always a rush to

43

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% 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 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.

44

Chapter-4
Data Analysis and Interpretation

The survey which was conducted provided with the following results. The sample size was taken as 100.

Note: All the results shown in the graphs are in percentage.

1. Out of 100 there were 67% respondents who were employed in some government or private organization. Rests of them were engaged in their own business, profession, or education.

45

2. Out of 100, 82% respondents were having at least one insurance policy. Rests of them were either having no knowledge about the existing insurance products in the market or were least interested in buying any kind of insurance policy for them.

46

3. Out of 100, 68% have life insurance, 25% have non-life insurance and 7% have both life and non-life insurance. Non-life insurance included vehicle insurance, house/office building insurance etc.

4. Out of 100, following is the preference of the customers for their insurance company. The maximum choice was given for LIC and the reason being stated for that was that it is a government company and hence people put their faith on it. 47

Preferenceof InsuranceCom pany

1 2 4 1 1 3 0 L IC IC I Prudentia IC l S I L Insura B ife nce B ja Alia a j nz 1 3 1 4 R nc L Insura elia e ife nce 1 6 T taAIG L a ife Others

5. Most of the respondents were having their insurance since last 5 to 10 years. The detailed results are shown below.

6. When asked about the various benefits of the insurance cover, following responses were received. Out of 100, 48% of the respondents agree that insurance cover provides

48

security for the future. In case of any uncertain happening, life insurance will be of great help.

7. Features which attracted to buy the policy are shown in the graph. Maximum respondents go for the brand name. It shows the necessity of brand promotion.

49

8. The monthly income of most of the respondents fell into the range of Rs.5,000 to Rs.25,000. That implies that most of the respondents belong to medium income group.

9. When asked if the insurance policy cover is important in todays scenario, following was the response. 80% respondents were agreeing with the importance. It shows the awareness about the insurance between respondents.

50

10.

In most of the cases, respondents were approached by the insurance company

to market their products. It shows that companies are targeting their customers.

11. with it.

When asked about the satisfaction with the policy which the respondents were

having at present, following were the findings. Most of them were more or less satisfied

51

12. details.

About 62% of all respondents were not satisfied with the services of their

insurance agent. They complained that the agent didnt explain them about the product in

13.

Out of 100 respondents, 82% were the tax payers. It shows that Tax Saving

benefit may become the main reason for them to buy the insurance policy. 52

14.

Most of the respondents have invested in Provident Funds to save tax followed

by in Insurance Policies and National Saving Certificates issued by Post Offices.

53

15.

On asking about the best form of investment at the present time, respondents

showed the interest in Shares and mutual funds along with in fixed assets like land, building etc.

16.

Most of the respondents said that the right age to buy life insurance is 18 to 25

years. It shows that they were aware of the fact that premium is less for younger person.

54

17.

When asked about the overall rating for Indian insurance industry, most of the

respondents said that it is good. It shows the positive perspective of them.

18.

On asking about the expectations from the Indian insurance company, most of

the respondents said first and most, it must have good insurance plans. It shows their awareness about the products and need for new innovative products.

55

19.

About 67% of the total respondents were planning for new investments. They

agreed that there are lots of new opportunities in the insurance industry.

56

20.

Respondents were asked that if a service provider provides better services and

improved products customized to their requirements, will they accept it and invest their money. About 78% respondents were agree to it and showed a great interest in it.

57

Chapter-5 Conclusion and Suggestions

5.1 CONCLUSION
After overhauling the all situation that boosted a number of Pvt. Companies associated with multinational in the Insurance Sector to give befitting competition to the established behemoth Kotak in private sector, we come at the conclusion that

There are very tough competitions among the private insurance companies on the level of new trend of advertising to lull a major part of Customers. Kotak is not left behind in the present race of advertisement. The entry of more Pvt. Players in the Insurance Sector has expanded the product segment to meet the different level of the requirement of the customers. It has brought about greater choice to the customers.

Kotak has vast market and very firm grip on its traditional customers and monopoly of life insurance products.

IRDA is also playing very comprehensive role by regulating norms mandating to private players in this sector, that increases the confidence level of the customers to the private players.

58

5.2 Suggestions

The study has provided with the useful data from the respondents. There has a lot to be recommended. Following are the recommendations:

There is a need for better promotion for the investment products & services. The bank should advertise its products through television because it will reach to the masses.

More returns should be provided on Insurance plans.

As the bank provides the Insurance facility to its customers. It should provide this facility by tie up with the other Insurance organizations as well. The main reason is that, the entire customers do not want Insurance of only one company. They should have choice while selecting a suitable Insurance plans. This will definitely add to the goodwill & profit for the bank.

59

Chapter -6
Bibliography:
http://www.iloveindia.com/finance/insurance/irda.html https://www.itshastra.com/industry http://insurance.kotak.com./insurance-guide/about-life-insurance.php http://www.jagoinvestor.com/2010/12/term-insurance-plans-comparisions-india.html

60

Chapter-7 Appendix 7.1 Financial Statements:

Form A-PL
Profit and Loss Account for the year ended March 31, 2012
Shareholders' Account (Non-Technical Account) (Amounts in thousands of Indian Rupees) Particulars Amounts transferred from Policyholders Account(Technical Account) Income from Investments (a) Interest, Dividends and Rent Net of amortization b) Profit on sale/redemption of investments c) (Loss on sale/redemption of investments) Other Income (including fund management fees) Total (A) Expenses other than those directly related to the insurance business Bad debts written off Provisions (other than taxation) a) For diminution in the value of 61 2,382 413 85,950 64,254 96,373 16,027 -40,773 65,644 2,484 -3,874 14,323 31-Mar-11 31-Mar-12

investments (Net) b) Provision for doubtful debts (c) Others Contribution to the Policyholders Fund Total (B) Profit/ (Loss) before tax Provision for taxation Current Year Earlier Year Profit/(Loss) after tax Appropriations a) Balance at the beginning of the year Add: Effect of first time adoption of Revised AS-15 Employee Benefits (b) Interim dividends paid during the year c) Proposed final dividend (d) Tax on dividend distributed (e) Transfer to reserves/other accounts Profit/(Loss) carried to the Balance Sheet -9,271 -1,554,127

1,179,924 1,182,306 -1,096,357 8,322 -1,104,679

499,792 500,205 -435,951 8,270 -444,221 -1,109,906

-1,563,398 -2,668,077

-1,554,127

62

Form A-BS Balance Sheet as at March 31, 2012

(Amounts in thousands of Indian Rupees) Particulars Sources of Funds Shareholders Funds: Share Capital Reserves and Surplus Credit/[Debit] Fair Value Change Account Sub-Total Borrowings Policyholders Funds: Credit/[Debit] Fair Value Change Account Policy Liabilities Participating Non-participating Annuities Participating Annuities Unit-Linked Non-Participating Unit-Linked Non-Participating Insurance Reserves Participating Non-Participating Annuities Participating Annuities, Unit-Linked Non-Participating Unit-Linked Non-Participating Linked Liabilities 12,025,83 2 36,347 6,767,957 -96,870 11,851 747 (400,572) 3,097,235 501,753 251,545 236 172,419 2,122,799 404,444 194,565 255 92,992 521 150,463 3,303,466 520,363 3,823,829 2,443,701 520,363 2,964,064 31-Mar-12 31-Mar-11

63

Fair Value Change Total Provision for Linked Liabilities Sub-Total Funds for Future Appropriation:-Linked Liabilities Others Total Application of Funds Investments Shareholders Policyholders Assets Held to Cover Linked Liabilities Loans Fixed Assets Current Assets Cash and Bank Balances Advances and Other Assets Sub-Total (A) Current Liabilities Provisions Sub-Total (B) Net Current Assets (C) = (A B) Miscellaneous Expenditure (To the extent not written off or adjusted) Debit Balance in Profit and Loss Account (Shareholders Account) Total

619,615 12,645,447 16,705,503 129,246 1,009 20,659,587

797,222 7,565,179 10,045,853 14,662 1,009 13,025,588

853,836 4,026,888 12,774,710 23,168 242,790 1,248,644 444,163 1,692,807 1,551,719 70,969 1,622,688 70,119 2,668,077 20,659,587

656,985 2,975,227 7,579,841 7,245 183,626 570,984 343,225 914,209 818,943 26,729 845,672 68,537 1,554,127 13,025,588

INTERPRETATION:

64

We can easily understand the above balance sheet in year 2011 companys total balance 13,025,588, while in year 2012 companys total balance increase and become it 20,659,587. It means companys balance Increase is 7,633,999.

WORKING CAPITAL MANAGEMENT

Working capital refers to that part of the firms capital which is required for financing shortterm or current assets, such as, cash, marketable securities, debtors, inventories, bills receivable etc. the assets of this type are relatively temporary in nature. Unfortunately, there is much disagreement among financiers, accountant, economics and businessmen as to the exact meaning of the team working capital

However, working capital is also known as circulating capital or short term capital. Working capital can be derived by the deference between current assets and current liabilities of the firm. GROSS WORKING CAPITAL= TOTAL CURRENT ASSETS WORKING CAPITAL= CURRENT ASSETS CURRENT LIABILITIES

Particular Current Assets Cash and Bank Balances Advances and Other Assets Sub-Total (A) Current Liabilities Provisions Sub-Total (B)

2012 1,248,644 444,163 1,692,807 1,551,719 70,969 1,622,688

2011 570,984 343,225 914,209 818,943 26,729 845,672

Working capital = Current Assets Current Liabilities

65

For year 2012 Working Capital = C.A C.L = 1,692,807- 914,209 = 70,119 For year 2011 Working Capital = C.A C.L = 914,209 845,672 = 68,53

FUTURE PROSPECTS
With there being intense competition between the private players in the insurance market, distribution strength, reach, cost effectiveness, product innovation, brand loyalty and customer service are the key factors that will determine performance in the marketplace.Your Company is concentrating on these areas so as to ensure superior performance. During the current financial year, your Company plans to expand its operations and open branches in 15 additional cities.

66

7.2 QUESTIONNAIRE
1.

ARE YOU EMPLOYED? YES NO DO YOU HAVE ANY INSURANCE POLICY? YES (Have at least one) NO (Dont have any)

2.

3.

WHICH INSURANCE POLICY DO YOU HAVE? LIFE NON-LIFE BOTH

4.

WHICH COMPANYS INSURANCE POLICY DO YOU PREFER THE MOST? a) LIC b) ICICI PRUDENTIAL c) SBI LIFE INSURANCE d) BAJAJ ALLIANZ

67

e) KOTAK LIFE INSURANCE f) TATA AIG LIFE g) ANY OTHER

5.

_____________ (Please Specify)

FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY? a) <5Yrs

b) 5-10 Yrs c) 10-15 Yrs d) >15 Yrs

____________ (Please Specify)

6.

WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE COVER? a) COVER FUTURE UNCERTAINITY b) TAX DEDUCTIONS c) FUTURE INVESTMENT d) ANY OTHER _______________ (Please Specify)

7.

WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT? a) LOW PREMIUM

68

b) LARGER RISK COVERANCE c) MONEY GUARANTEE d) REPUTATION OF COMPANY e) EASY ACCESS TO AGENTS f) ANY OTHER 8. YOUR MONTHLY INCOME? a) < Rs.5,000 _________________ (Please Specify)

b)

Rs.5,000-Rs.15,000

c)

Rs.15,000-Rs.25,000

d)

Rs.25,000-Rs.50,000

e)

>Rs.50,000

_____________(Please Specify)

9.

DO YOU THINK INSURANCE POLICY COVER IN TODAYS SCENARIO IS ESSENTIAL? Yes No Cant Say

10.

HOW DID YOU BUY INSURANCE? a) CUSTOMER APPROCHED INSURANCE COMPANY b) INSURANCE COMPANY APPROCHED CUSTOMER 69

11.

ARE YOU SATISFIED WITH THE POLICY? a) SATISFIED b) NOT SATISFIED c) CANT SAY

12.

ARE YOU SATISFIED WITH THE SERVICE AGENT? a) SATISFIED b) NOT SATISFIED c) NEUTRAL VIEW

13.

DO YOU PAY TAXES? YES NO

14.

WHERE HAVE YOU INVESTED FOR TAX SAVING? (RANK THEM) a) Insurance b) NSC c) BONDS d) PF

15.

WHICH IS THE BEST FORM OF INVESTMENTS? (RANK THEM)

70

a) FIXED ASSETS b) BANK DEPOSITS c) Gold d) Government Securities e) SHARES and MF f) INSURANCE 16. WHATS THE RIGHT AGE TO BUY INSURANCE? a) BEFORE 18 Yrs b) 18 to 25 Yrs c) 25 to 45 Yrs d) 45 to 60 Yrs e) AFTER 60 Yrs

17.

HOW WOULD YOU RATE INDIAN INSURANCE COMPANIES? a) RIGID PLANS b) NON-USER FRIENDLY c) UNSATISFATORY SREVICES d) NON-AGGRESSIVE 71

e) SATISFACTORY f) GOOD g) EXCELLENT

18.

WHAT WOULD YOU LOOK FOR IN AN INSURANCE COs? (RANK THEM) a) A TRUSTED NAME b) FRIENDLY SERVICE & RESPONSIVENESS c) GOOD PLANS d) ACCESSIBILITY

19.

ARE YOU PLANNING FOR NEW INVESTMENTS? PLANNING NOT PLANING

20.

WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER OFFERS

BETTER SERVICE & PRODUCTS? a) YES b) NO c) UNCERTAIN

72

NAME: _________________________________________AGE: _________________________________ CONTACT NO.: ______________________________OCCUPATION: ______________________________

73