Chapter 1

Industry and
company profile

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INDUSTRY PROFILE

History of Insurance in India

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu (
Manusmrithi ), Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra ). The writings talk in
terms of pooling of resources that could be re-distributed in times of calamities such as fire,
floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient
Indian history has preserved the earliest traces of insurance in the form of marine trade loans and
carriers’ contracts. Insurance in India has evolved over time heavily drawing from other
countries, England in particular.
 
   1818 saw the advent of life insurance business in India with the establishment of the Oriental
Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the
Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870
saw the enactment of the British Insurance Act and in the last three decades of the nineteenth
century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in
the Bombay Residency. This era, however, was dominated by foreign insurance offices which
did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and
London Globe Insurance and the Indian offices were up for hard competition from the foreign
companies.
 
     In 1914, the Government of India started publishing returns of Insurance Companies in India.
The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life
business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to
collect statistical information about both life and non-life business transacted in India by Indian
and foreign insurers including provident insurance societies. In 1938, with a view to protecting
the interest of the Insurance public, the earlier legislation was consolidated and amended by the
Insurance Act, 1938 with comprehensive provisions for effective control over the activities of
insurers.
 
   The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a
large number of insurance companies and the level of competition was high. There were also
allegations of unfair trade practices. The Government of India, therefore, decided to nationalize
insurance business.
 
      An Ordinance was issued on 19th January, 1956 nationalizing the Life Insurance sector and
Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian,
16 non-Indian insurers as also 75 provident societies—245 Indian and foreign insurers in all. The
LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector.
 

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     The history of general insurance dates back to the Industrial Revolution in the west and the
consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a
legacy of British occupation. General Insurance in India has its roots in the establishment of
Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian
Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of
general insurance business.
1957 saw the formation of the General Insurance Council, a wing of the Insurance Association of
India. The General Insurance Council framed a code of conduct for ensuring fair conduct and
sound business practices.
 
    In 1968, the Insurance Act was amended to regulate investments and set minimum solvency
margins. The Tariff Advisory Committee was also set up then.
 
    In 1972 with the passing of the General Insurance Business (Nationalization) Act, general
insurance business was nationalized with effect from 1st January, 1973. 107 insurers were
amalgamated and grouped into four companies, namely National Insurance Company Ltd., the
New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India
Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a
company in 1971 and it commence business on January 1sst 1973.
 
     This millennium has seen insurance come a full circle in a journey extending to nearly 200
years. The process of re-opening of the sector had begun in the early 1990s and the last decade
and more has seen it been opened up substantially. In 1993, the Government set up a committee
under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations
for reforms in the insurance sector. The objective was to complement the reforms initiated in the
financial sector. The committee submitted its report in 1994 wherein , among other things, it
recommended that the private sector be permitted to enter the insurance industry. They stated
that foreign companies be allowed to enter by floating Indian companies, preferably a joint
venture with Indian partners.
     Following the recommendations of the Malhotra Committee report, in 1999, the Insurance
Regulatory and Development Authority (IRDA) was constituted as an autonomous body to
regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in
April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance
customer satisfaction through increased consumer choice and lower premiums, while ensuring
the financial security of the insurance market.
 
     The IRDA opened up the market in August 2000 with the invitation for application for
registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the
power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000
onwards framed various regulations ranging from registration of companies for carrying on
insurance business to protection of policyholders’ interests.
 

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  In December, 2000, the subsidiaries of the General Insurance Corporation of India were
restructured as independent companies and at the same time GIC was converted into a national
re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.
 

     Today there are 14 general insurance companies including the ECGC and Agriculture
Insurance Corporation of India and 14 life insurance companies operating in the country.
 
     The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together
with banking services, insurance services add about 7% to the country’s GDP. A well-developed
and evolved insurance sector is a boon for economic development as it provides long- term funds
for infrastructure development at the same time strengthening the risk taking ability of the
country.

INSURANCE PENETRATION IN INDIA

 India is 23rd rank internationally among the largest insurance market.

 Global Market today $2100 billion with an annual premium collection of $7.2 billion.

 Just 0.34% of Global market today

 In India 74% of population lives in the rural area – Source I.R.D.A.

 The industry must learn different technique for rural business in areas like Product
Development and pricing, market, development of Sales Channels, sales Process,
Service to Customers and financial management with a rural bias

 Another area of vast improvement is in the service attitude and delivery.

 Multiple touch points have emerged – contact centers, email, facsimile, websites

 Insurance industry in India only in past 2 years have given employment to the tune
Of 17000 people across India

It is clear that the face of insurance in India is changing but with the changes, come

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A host of Challenges, and it is the credible players with a long term vision and
Robust strategy that will survive whatever developments, the future and Opportunities in
insurance industry will surely be exciting

► BENEFITS OF INSURANCE

► Insurance is an investment of security, savings and peace of mind

► Safeguard oneself and one’s family for future requirements

► Peace of Mind in case of financial loss & encourage savings

► Get a tax rebate

► Rebates on the tax payable section 80 CC of income tax act

► Protection from claims made by creditors

► Security against a personal loan, housing loan or other types of loan

► Provide a protection cover to industries, agriculture, women and child

5
Overview of the Industry

The insurance industry provides protection against financial losses resulting from a variety of
perils. By purchasing insurance policies, individuals and businesses can receive reimbursement
for losses due to car accidents, theft of property, and fire and storm damage; medical expenses;
and loss of income due to disability or death.

The insurance industry consists mainly of insurance carriers (or insurers) and insurance agencies
and brokerages. In general, insurance carriers are large companies that provide insurance and
assume the risks covered by the policy. Insurance agencies and brokerages sell insurance policies
for the carriers. While some of these establishments are directly affiliated with a particular
insurer and sell only that carrier’s policies, many are independent and are thus free to market the
policies of a variety of insurance carriers. In addition to supporting these two primary
components, the insurance industry includes establishments that provide other insurance-related
services, such as claims adjustment or third-party administration of insurance and pension funds.

Insurance carriers assume the risk associated with annuities and insurance policies and assign
premiums to be paid for the policies. In the policy, the carrier states the length and conditions of
the agreement, exactly which losses it will provide compensation for, and how much will be
awarded. The premium charged for the policy is based primarily on the amount to be awarded in
case of loss, as well as the likelihood that the insurance carrier will actually have to pay. In order
to be able to compensate policyholders for their losses, insurance companies invest the money
they receive in premiums, building up a portfolio of financial assets and income-producing real
estate which can then be used to pay off any future claims that may be brought. There are two
basic types of insurance carriers: direct and reinsurance. Direct carriers are responsible for the
initial underwriting of insurance policies and annuities, while reinsurance carriers assume all or
part of the risk associated with the existing insurance policies originally underwritten by other
insurance carriers.

Direct insurance carriers offer a variety of insurance policies. Life insurance provides financial
protection to beneficiaries—usually spouses and dependent children—upon the death of the
insured. Disability insurance supplies a preset income to an insured person who is unable to work
due to injury or illness, and health insurance pays the expenses resulting from accidents and
illness. An annuity (a contract or a group of contracts that furnishes a periodic income at regular
intervals for a specified period) provides a steady income during retirement for the remainder of
one’s life. Property-casualty insurance protects against loss or damage to property resulting from
hazards such as fire, theft, and natural disasters. Liability insurance shields policyholders from
financial responsibility for injuries to others or for damage to other people’s property. Most
policies, such as automobile and homeowner’s insurance, combine both property-casualty and
liability coverage. Companies that underwrite this kind of insurance are called property-casualty
carriers.

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Some insurance policies cover groups of people, ranging from a few to thousands of individuals.
These policies usually are issued to employers for the benefit of their employees or to unions,
professional associations, or other membership organizations for the benefit of their members.
Among the most common policies of this nature are group life and health plans. Insurance
carriers also underwrite a variety of specialized types of insurance, such as real-estate title
insurance, employee surety and fidelity bonding, and medical malpractice insurance.

In addition to individual carrier-sponsored Internet sites, several “lead-generating” sites have

emerged. These sites allow potential customers to input information about their insurance policy
needs. For a fee, the sites forward customer information to a number of insurance companies,
which review the information and, if they decide to take on the policy, contact the customer with
an offer. This practice gives consumers the freedom to accept the best rate.

The insurance industry also includes a number of independent organizations that provide a wide
array of insurance-related services to carriers and their clients. One such service is the processing
of claims forms for medical practitioners. Other services include loss prevention and risk
management. Also, insurance companies sometimes hire independent claims adjusters to
investigate accidents and claims for property damage and to assign a dollar estimate to the claim.

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The Insurance Regulatory and Development Authority (IRDA)

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in
December 1999. The IRDA since its incorporation as a statutory body in April 2000 has
fastidiously stuck to its schedule of framing regulations and registering the private sector
insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the insurance
sector and in particular the life insurance companies were the launch of the IRDA’s online
service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that the insurance
companies would have a trained workforce of insurance agents in place to sell their products,
which are expected to be introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a framework of globally
compatible regulations. In the private sector 12 life insurance and 6 general insurance companies
have been registered.

8
COMPANY PROFILE

About AVIVA

Aviva India is a joint venture between one of the country’s oldest and largest groups, Dabur, and
Aviva plc, the UK's largest insurance group, whose association with India dates back to 1834.

Our vision is to be amongst India’s leading life insurers with a quality business model, focused
on sustainable growth. We seek to build a robust product portfolio meeting all customer lifecycle
needs related to – Savings, Retirement, Investments and Protection.

With a strong sales force of over 30,000 Financial Planning Advisers (FPAs), we have initiated
and pioneered many innovative sales approaches, including the concept of Bancassurance and
Financial Health Check services. We are among the first companies to introduce the
contemporary unit-linked products.

A seasoned team of fund managers make our fund management one of the key differentiators.
With a wide distribution network of 195 branches and close to 40 Bancassurance partnerships,
we are spread across nearly 3,000 towns and cities in India.

Keeping with our commitment of social responsibility, we have been successful in reaching out
to the underprivileged strata through our Micro insurance initiatives.

Promoters

Dabur Group 
Founded in 1884, Dabur Group is one of India's oldest and largest group of companies with a
consolidated annual turnover in excess of Rs 2,834 crores. A professionally managed company,
it is the country's leading producer of traditional healthcare products.

Aviva Group 
Aviva Group is the UK’s largest and one of the biggest Insurance groups worldwide. It is one of
the leading providers of life and pensions products to Europe and has substantial businesses
elsewhere around the world. With a history dating back to 1696, Aviva Group has a 50 million
customer base worldwide.

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Partners
Royal Bank of Scotland Group

In 300 years, The Royal Bank of Scotland Group has grown to become one of the largest
financial services groups in the world. They operate around the globe to provide banking
services for individuals, businesses and institutions.
 
RBS offers a broad range of transaction banking, fixed income and foreign exchange products
and services, including sales and trading, fixed income origination, derivatives, structured
lending and commodity financing.
 
Additionally, they provide a diverse range of product offerings including personal loans, credit
cards, savings accounts, financial planning, investment and insurance services, to meet the
everyday financial needs of over a million Personal Banking clients in India.
 
Aviva's relationship with RBS commenced in June 2002 when the bank was known as ABN
AMRO.  The Bank introduces its customers to Aviva for insurance and provides access to its
affluent customer base across the country through its operations in 31 branches at 22 locations.
 
 
The Lakshmi Vilas Bank Ltd 
The Lakshmi Vilas Bank Ltd, based out of Karur, is among the top private banks in India. It has
221 branches with a customer base of 1.2 million across 10 states. Currently Aviva products are
sold across 204 branches of LVB.

Punjab & Sind Bank 

The Punjab & Sind Bank was established in the year 1908. Based on the principles of social
commitment to the people, to help the farmers, and the weaker sections of the society to raise
their standard of living and play a significant role in the development of the country. Even after
100 years of its inception, the Punjab & Sind Bank stands committed to honour the high ideals of
its founding fathers. Punjab and Sind Bank has a network of 915 branches spread all over the
country with close to 9400 employees. Fifty one per cent of its branches are in the rural and
semi-urban areas. 

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Aviva signed Corporate Agency Agreement with PSB in September 2004 under which the bank
deployed its Insurance Officers (SPs) to sell the Life Insurance products to its customers through
vast network of branches spread over 175 Districts ,25 States and Union Territory of Chandigarh.

IndusInd Bank 
IndusInd Bank Ltd., is one of the leading new-generation private-sector banks in India.
It commenced operations in 1994 and had a net worth of Rs.866 crore as of March 31, 2006. At
present, the Bank has a network of 148 branches and 87 offsite ATMs spread over 118
geographical locations in 24 states and Union Territories.

Bank of Rajasthan 
A private sector bank with 467 branches and a major presence in North (Rajasthan), has its Head
Office in Mumbai. Having a customer base of nearly 14 lakh and a Rs 13,000 crore deposit base,
the bank spreads across 12 regions of Jaipur, Jodhpur, Bikaner, Kota, Bhilwara, Udaipur,
Chandigarh, Delhi, Kolkata, Indore, Mumbai and Bangalore.

Cooperative and Regional Rural Banks

 Shree Warna Sahakari Bank

 Prime Cooperative Bank
 Nizamabad DCCB
 Goa State Cooperative Bank
 Janaseva Sahakari Bank
 MP Rajya Sahakari Bank
 Vasantdada Shetkari Bank
 Krishna Sahakari Bank
 Krishna Sahakari Bank
 Buldana Urban Credit Coop Society
 Ichalkaranji Janata Sahakari Bank
 Surat District Cooperative Bank
 Sabarkanta District Central Co-operative Bank
 Rajkot Nagrik Sahakari Bank
 Kakinada District Central Co-operative Bank

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 Nasik Merchant Cooperative Bank
 Surendranagar District Central Co-operative Bank
 Nellore District Central Co-operative Bank
 Kashi Gomti Samyut Gramin Bank
 Purvanchal Gramin Bank
 Madhya Bihar Gramin Bank
 Bihar Kshetriya Gramin Bank
 Rajasthan Gramin Bank
 Ranchi Kunti District Co-operative Bank
 Singbhum Central Co-operative Bank
 Patliputra Central Co-operative Bank
 Maharastra Godavari Gramin Bank
 Vidarbha Keshetriya Gramin Bank
 Bhagyalakshmi Mahila Sahakari Bank

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Management Team

Name Designation
TR Ramachandran Chief Executive Officer & Managing Director
Rajeev Arora Director, Finance & Actuarial
Monica Agrawal Director, Corporate Initiatives
Vishal Gupta Director, Marketing
Sumit Behl Director, Business Risk & Internal Audit
Ravi Bhadani Company Secretary and Senior Vice President- Compliance & Legal
Munish Sharda Director, Direct Sales Force
Rishi Piparaiya Director, Bancassurance
Sandip Mallik Director, HR
Jyoti Vaswani Chief Investment Officer & Director, Fund Management
K K Dharni Appointed Actuary
Snehil Gambhir Sr. Vice President, Transformation & Services
Rajiv Sehgal Chief Information Officer & Sr, Vice President, IT
Vijayalakshmi Natarajan Senior Vice President, Operations

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Awards and Recognition

We believe that our employees are our greatest strength and the only asset that can be replicated.
It is the passion of our people which continues to help us achieve the 'impossible' and make
Aviva India great place to work.

 Aviva has been felicitated with the "Bronze Award for Excellence in People
Management" by Grow Talent Company Limited and Businessworld. This honour was
given based on our ranking amonst the top 25 companies as per the Grate Place to Work
survery in the last four years.
 Aviva was ranked 4th in the Best Workplaces in India study for the year 2008 by the
Great Place to Work Institute. We were the only Insurance company in the top 10 ranking
that year.
 Aviva India won the coveted Award for Talent Management during the national round
of Asia Pacific HRM Congress
 Aviva India was also felicitated by the HR Excellence Award by Amity Business
School

Corporate Responsibility

At Aviva we believe ‘Education is Insurance’. There is no greater education than insurance in the
world than a good education. It is an investment that never depreciates. An Investment that
yields guaranteed returns and can never be taken away. 

We see education as a tool that empowers individuals. But above all else, we see education as the
right of every child. The right to a strong foundation that enables them to escape the vicious
circle of ignorance, disease and poverty.

It is our belief in the power of education that has fueled our endeavors to guarantee it, most
importantly to those who cannot afford it. Through our Corporate Responsibility initiatives we
wish to empower as many children as we can.

Corporate Responsibility is deeply embedded in the culture at Aviva and reflects our social
conscience and commitment to the society. At Aviva, we strongly believe in proactively
promoting public interest by behaving ethically and contributing to the economic growth and
welfare of the society we live in.

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Product Line

Child Plan

Aviva New Young Scholar is a comprehensive plan that enables you to secure your child’s
future in any eventuality through:

Savings

Freedom Life Plan allows you to choose the proportion of savings and protection and change it,
in line with your changing needs, with the option to pay premiums for as few as 3 years.

Aviva New Sachin Century Plan is a simple savings plan to help you grow your money with
limited risk and provides an additional corpus to the family, in case of death.

Aviva New LifeLine is an investment oriented plan that ensures you leave a legacy for the next
generation .

Aviva New LifeBond Plus is a comprehensive Single Premium unit linked plan, providing
investment as well as tax benefits.

Aviva New Save Guard is a simple plan with minimal documentation and no medicals that
helps earn tax free returns on your savings to meet your financial goals.

Aviva New Life Saver Plus is predominantly a savings plan that offers disciplined saving with
high level of financial security for the family, in case something untoward happens.

Aviva Dhan Vriddhi is a money back plan that provides you a guaranteed amount of money at
regular intervals and protection through the Life Cover (Sum Assured), in the event of death.

Aviva Money Back Policy is a comprehensive policy that allows you to accumulate savings
along with valuable life cover protection.

Aviva Dhan Sanchay is an insurance plan that works like your personal savings account.

Aviva Wealth Protect is an insurance plan that guarantees the highest NAV over 7 years.

Retirement

Aviva New Pension Plus is a best-in-class plan that helps you fund your post-retirement years.

15
Aviva New Pension Elite helps you secure your family’s lifestyle in the absence of income
because of retirement or death.

Aviva Secure Pension is a comprehensive plan to provide you with the dual benefits of pension
and protection.

Protection

Aviva LifeShield plus provides comprehensive protection for your family at a nominal cost.

Aviva LifeShield provides low cost protection to your family.

Riders

Accidental Death Benefit Rider (ADB) pays an additional Sum Assured in event of death due
to an accident.

Accidental Death & Dismemberment Rider (ADD) pays an additional Sum Assured in event
of death due to an accident or a part of Sum Assured in the event of dismemberment.

Aviva Payor Plus Rider pays future premiums due, as a lump sum into the policy fund in case
of the unfortunate death of the policyholder.

Aviva Dread Disease (DD) Rider pays Sum Assured on diagnosis of 18 critical illnesses as
defined in product/rider brochure.The policy will continue for the base Sum Assured after the
claim for this rider is paid

Comprehensive Health Benefit Rider (CHB) pays benefits similar to death benefit under the
product on diagnosis of 18 critical illnesses as defined or permanent total disability due to
accident or illness. The status of the policy will be as defined under the base plan after payment
of this claim. 

Hospital Cash Benefit Rider (HCB) pays a fixed amount in the event of hospitalization
irrespective of your actual expenses.

Income Benefit Rider (IB) provides a monthly income to the family in case of the unfortunate
death of the policyholder.

Aviva Term Rider pays an additional Sum Assured in case of the unfortunate death of
policyholder.

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Health

Aviva Health Plus is a comprehensive health cum savings plan that covers you against death
and ill health, while guaranteeing the return of a part of the premium on maturity.

Rural
Aviva Amar Suraksha is an ideal protection plan that helps you secure your family's future.

Aviva Jana Suraksha provides comprehensive financial protection for your

children/dependants.

Aviva Anmol Suraksha is a comprehensive fixed term plan with protection cum savings.

Aviva Grameen Suraksha is an ideal low cost solution to help you protect your loved ones.

Group

Aviva Corporate Life Plus provides life cover for the employees/members of an organization
and financially protects their families.

Aviva Corporate Shield Plus is a term plan in lieu of employee/members deposit linked
insurance designed primarily for corporate.

Group gratuity Plan provides dual benefits of financial security to the employees at time of
retirement/termination of employment. The employer gets tax benefits and reduction of burden
on account of gratuity for employers.

Aviva Group Gratuity Plan helps corporate provide financial security to their employees at the
time of retirement or on leaving employment.

Aviva Traditional Group Gratuity Plan

Superannuation plan is a well structured plan providing regular post retirement income to your
employee.

Aviva Group Superannuation Plan helps an organization provide pension benefits to its
employees.

Aviva Group Leave Encashment Plan is a systematic and cost effective plan for organizations
to help them meet their leave encashment liabilities.

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Aviva Credit Suraksha is a comprehensive scheme providing financial security to the members
of the unorganized groups and their families.

Aviva Credit Plus is designed primarily for micro finance Institutions who provide loans to
individuals in the rural and semi urban areas, providing protection

Aviva CreditNet is designed for banks, companies and institutions that offer credit cards, auto
loans, consumer durable loans and/or personal loans to their customers and helps protect your
interest.

Aviva Loan Suraksha is a plan designed for Banks and other Financial Institutions offering
housing and car loans, protecting their interests.

Stages in Policy Issuance

1) Proposal

A Proposal Stage is the First stage before the policy is issued at COPS. At this stage, the
application form is received by COPS, but it is pending for issuance due to further clarifications
required from the customer.

2) Login

A proposal which is complete i.e., duly filled with all necessary documents attached to it &
accepted by the Branch ops, is called a Login

3) Reject

An Application gets rejected at the Branch Ops level due to necessary details not filled in the
form or necessary documents not submitted is a Reject. It is then sent back to the Advisor for
completion.

4) Issuance

Issuance means a policy that is issued to the Customer by Central Ops.

5) Decline Status

When a customer refuses to take a policy post login but before Issuance is called a Decline

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6) Cancellation

When the cheque given by the customer bounces, it amounts to cancellation of the policy.

7) Lapse

A policy for which the Customer fails to pay subsequent premiums is a Lapsed Policy.

8) Free look

Post issuance of the policy, the policyholder has the option to turn down the policy within 15
days from the date of issuance. This period of 15 days is called Free look Period.

9) Surrender: When a customer wants to discontinue with the policy.

19
 Chapter 2
Reports Sent to
Guide

20
Internship Report for the tenure 22nd April 2010 to 6th June 2010

Combined Weekly Report

DATE DAY REPORTING TIME ASSIGNMENT/WORK

22-4-2010 Thursday 9.15 am Introduction with the officials working in
the organization and about the organization.

23-4-2010 Friday 9.15 am Visiting official website of the company

and screening out various information with
regards to various plans and systems.

24-4-2010 Saturday 9.15 am Training on various insurance schemes,

plans, procedures and claims.

25-4-2010 Sunday 9.15 am Holiday

26-4-2010 Monday 9.15 am Description of various marketing avenues,
templates and forms by marketing manager.

27-4-2010 Tuesday 9.15 am Appointments with Hello Kids and E B

club.

28-4-2010 Wednesda 9.15 am Appointment with smart potato.

y

DATE DAY REPORTING TIME ASSIGNMENT/WORK

29-4-2010 Thursday 9.15 am Finalization of activity with E.B CLUB. And
appointment with Noah’s shows Jayanagar.
30-4-2010 Friday 9.15 am Training on various features of Advisers,
packages, benefits. And process through
which insurance companies pitch customers.
And attending one of the calls.
01-5-2010 Saturday 9.15 am Holiday

02-5-2010 Sunday 9.15 am Holiday

03-5-2010 Monday 9.15 am Preparation of database in regards to color

21
 my dreams competition conducted for Royal
International School. In order to provide
leads for Direct sales force.
04-5-2010 Tuesday 9.15 am Preparation of database in regards to color
my dreams competition conducted for Royal
International School. In order to provide
leads for Direct sales force.
05-5-2010 Wednesday 9.15 am Preparation of database in regards to color
my dreams competition conducted for Royal
International School. In order to provide
leads for Direct sales force.

Note: The activity which was conducted in Royal International School included about 1000
children from nursery to 4th Standard.

DATE DAY REPORTING TIME ASSIGNMENT/WORK

06-5-2010 Thursday 9.15 am Assignment of conducting a customer

satisfaction survey for the existing customer
base. Preparation of questionnaire for the
same.
07-5-2010 Friday 9.15 am Collection of DATA from the existing
customers.

08-5-2010 Saturday 9.15 am Collection of DATA from the existing

customers.

09-5-2010 Sunday 9.15 am Holiday

10-5-2010 Monday 9.15 am Collection of DATA from the existing

customers.

11-5-2010 Tuesday 9.15 am Collection of DATA from the existing

customers.

12-5-2010 Wednesday 9.15 am Collection of DATA from the existing

customers.

Note: Survey is exclusively for existing customers of AVIVA with objective of general feedback
on company and its services.

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 DATE DAY REPORTING TIME ASSIGNMENT/WORK

13-5-2010 Thursday 9.15 am Collection of DATA from the existing

customers.
14-5-2010 Friday 9.15 am Preparation of Color My Dreams activity
with Croma and finalizing the agenda for
the activity.
15-5-2010 Saturday 9.15 am Color My Dreams activity with Croma
(Indiranagar Branch).
16-5-2010 Sunday 9.15 am Color my dreams activity with Croma
(Indiranagar Branch).
17-5-2010 Monday 9.15 am Formation of Database for the leads
collected from Color My Dreams activity.
18-5-2010 Tuesday 9.15 am Coordinating for the Advertisement for the
Times Kidz event which is scheduled from
21st of May and formation of Database.
19-5-2010 Wednesday 9.15 am Coordinating for the Advertisement for the
Times Kidz event which is scheduled from
21st of May

Note: Survey is exclusively for existing customers of AVIVA with objective of general feedback
on company and its services.

DATE DAY REPORTING TIME ASSIGNMENT/WORK

20-5-2010 Thursday 9.15 am Agenda for Times kids exhibition which is

to be held on Lalit Ashok Hotel.
Coordinating with EB Club for activity
which is scheduled on 31st may.
21-5-2010 Friday 9.15 am Color My Dreams activity with Times
Kids.

22-5-2010 Saturday 9.15 am Color My Dreams activity with Croma

(Kormangala Branch) and Times Kids.

23-5-2010 Sunday 9.15 am Color My Dreams activity with Croma

(Kormangala Branch) and Times Kids.

24-5-2010 Monday 9.15 am Color My Dreams activity with Times

Kids

23
25-5-2010 Tuesday 9.15 am Formation of Database for the leads
collected from Color My Dreams activity
which was collected from Croma and
Times Kids.
26-5-2010 Wednesday 9.15 am Formation of Database for the leads
collected from Color My Dreams activity
which was collected from Croma and
Times Kids.

DATE DAY REPORTING TIME ASSIGNMENT/WORK

27-5-2010 Thursday 9.15 am Meeting with Sales call clients along with
Sales Manager.

28-5-2010 Friday 9.15 am Meeting with Sales call clients along with
Sales Manager.

29-5-2010 Saturday 9.15 am Color My Dreams activity with Croma

30-5-2010 Sunday 9.15 am Color My Dreams activity with Croma

31-5-2010 Monday 9.15 am Formation of Database for the leads

collected from Color My Dreams activity

1-6-2010 Tuesday 9.15 am Formation of Database for the leads

collected from Color My Dreams activity

2-6-2010 Wednesday 9.15 am Meeting with Sales call clients along with
Sales Manager.

3-6-2010 Thursday 9.15 am Meeting with Sales call clients along with
Sales Manager.

4-6-2010 Friday 9.15 am College

5-6-2010 Saturday 9.15 am Color My Dreams activity with Croma.

6-6-2010 Sunday Excecution of women of substance.

24
 Chapter 3
Data Collected From
Other Sources

25
Fact Sheet

 JV partner: Dabur (74% stake)

 Foreign partner: Aviva plc (26% stake). One of the world's top Insurance
groups and the biggest in the UK. It is one of the leading providers of life and
pensions products to Europe. Aviva has a 50 million-customer base worldwide
with £352 billion assets under management.
 Managing Director & Chief Executive Officer: Mr. TR Ramachandran
 Paid up Capital: Rs 1,888 crores
 Locations: 195 branches, close to 3,000 locations
 Bank partners: ABN Amro Bank, The Lakshmi Vilas Bank Ltd, Punjab &
Sind Bank, IndusInd Bank, Bank of Rajasthan and more than 30 Cooperative
Banks and Regional Rural Banks.
 5th largest insurance company in the World.
 No. 1 in the UK; One of the top 5 players in UK, Ireland, Netherlands,
Poland, Spain, Turkey and Singapore
 Worldwide premium income & investment sales of £51.4 billion
 Operating Profit before Tax of £ 3,245 million
 Market capitalization of US $ 25 billion
 Over £381 billion assets under management
 Listed on London Stock Exchange
 Listed on the New York Stock Exchange on 20th Oct,2009
 Pioneer in Bancassurance with thought leadership in key area of Unit
Linked products.
 Successfully following a dual distribution approach.
 Ranked 4th Best Place to Work & No.1 Financial Service Company in
India- Study conducted by Great Place To Work (GPTW) in June,2009

26
Famous people and companies insured by AVIVA

Titanic (Ship)

Queen Victoria (1901)

Agatha Christie (Famous Author)

Winston Churchill (Prime Minister of U.K., 1940)

Freddie Mercury (Lead Singer– “Queen” Rock Band)

Sydney Opera House

Concorde

The FA Cup (Soccer

27
AVIVA INDIA MISSION STATEMENT

“To be amongst India’s leading life insurers with quality business model
focused on sustainable growth.”

28
Marketing Collaterals

Gifts: Sipper, bat, pen

Drawing sheet : With pre drawn
professions

Sticker

29
 Chapter 4
Analysis and
Interpretation

30
Customer Satisfaction
What is customer satisfaction?

Customer satisfaction refers to how satisfied customers are with the products or services they
receive from a particular agency. The level of satisfaction is determined not only by the quality
and type of customer experience but also by the customer’s expectations.

A customer may be defined as someone who:

 has a direct relationship with, or is directly affected by your agency and

 Receives or relies on one or more of your agency’s services or products.

Customers in human services are commonly referred to as service users, consumers or clients.
They can be individuals or groups.

An organization with a strong customer service culture places the customer at the centre of
service design, planning and service delivery. Customer centric organizations will:

 determine the customers’ expectations when they plan

 listen to the customer as they design

 focus on the delivery of customer service activities

 Value customer feedback when they measure performance.

Why is it important?

There are a number of reasons why customer satisfaction is important in Insurance Sector:

 Meeting the needs of the customer is the underlying rationale for the existence of
community service organizations. Customers have a right to quality services that deliver
outcomes.

 Organizations that strive beyond minimum standards and exceed the expectations of their
customers are likely to be leaders in their sector.

 Customers are recognized as key partners in shaping service development and assessing
quality of service delivery.

The process for measuring customer satisfaction and obtaining feedback on organizational
performance are valuable tools for quality and continuous service improvement.

31
Statement Of Problem:

The research is carried on in a proper planned and systematic manner.

 The research was particularly a telephonic research. We have to sell products to list of
people which include their names and contact numbers given by AVIVA.

 During the telephonic we have to sell different products by explaining the benefits of a
particular product, but. The minimum amount for selling a policy to a customer is equal
to or more than Rs. 10000 only.

 Age limit for selling product/policies was 1 month to 60 yrs – this mean that a policy can
be sold to person between the age of 1 month to 60 yrs and not anything exceeding or
below it

Research Design:

The research design of this project is exploratory. Though each research study has its own
specific purpose but the research design of this project on AVIVA is exploratory in nature as the
objective is the development of the hypothesis rather than their testing.

METHODOLOGY

Every project work is based on certain methodology, which is a way to systematically solve the
problem or attain its objectives. It is a very important guideline and lead to completion of any
project work through observation, data collection and data analysis.

According to Clifford Woody,

“Research Methodology comprises of defining & redefining problems, collecting, organizing

&evaluating data, making deductions &researching to conclusions.”

Accordingly, the methodology used in the project is as follows: -

Defining the objectives of the study

Framing of questionnaire keeping objectives in mind (considering the objectives)

32
Feedback from the employees

Analysis of feedback

Conclusion, findings and suggestions.

Sampling Technique Used:

This research has used convenience sampling technique.

1) Convenience sampling technique: Convenience sampling is used in exploratory research

where the researcher is interested in getting an inexpensive approximation of the truth. As the
name implies, the sample is selected because they are convenient

Selection of Sample Size:

For the survey, a sample size of 20 has been taken into consideration.

Sources of Data Collection:

Research will be based on two sources:

1. Primary data

2. Secondary data

1) PRIMARY DATA:

Questionnaire: Primary data was collected by preparing questionnaire for customers. The
questionnaire was filled through telephonic research.

2) SECONDARY DATA:

Secondary data will consist of different literatures like books which are published, articles,
internet, the company manuals and websites of company- www.Avivaindia.com.

In order to reach relevant conclusion, research work needed to be designed in a proper way.

33
This research methodology also includes:-

 Familiarization with the concept of insurance and its various terms.

 Thorough study of the information collected.

 Conclusions based on findings.

Statistical Tools Used

The main statistical tools used for the collection and analyses of data in this project are:

 Questionnaire

 Pie Charts

 Bar Diagrams

Limitations of study

Due to the following unavoidable and uncontrollable factors the factors,the result might not be
accurate. Some of the problems faced while conducting the survey are as follows:-

 Time and cost constraints were also there.

 Chances of some biasness could not be eliminated.

 A Samples size of twenty has been use due to time limitations.

 A majority of respondents show lack of cooperation and are biased towards their own
opinions.

34
Data Analysis

Q1. Which insurance policy are you currently holding with AVIVA ?

Particulars No. of Respondents Percentage

Aviva Young Scholar 10 50%

Aviva Sachin Century 04 20%
Freedom Life Plan 04 20%
Others 02 10%
Total 20 100%

2
4

10 Aviva young scholar

Aviva sachin century
Freedom life plan
Others

35
 ANALYSIS:

From the survey it was found that amongst 20 respondents

Q2. What is the tenure of your policy?

Particulars(years) No. of Respondents Percentage

0-5 01 05%

5-10 01 05%

10-15 06 30%

15-20 07 35%

20 and above 05 25%

Total 20 100%

7
6
5
4
3
2
1
0
0 to 5 5 to 10 10 to15 15 to 20 20 and above

ANALYSIS:

From the survey it was found that amongst 20 respondents

36

a) 5% of the respondents have taken policy for 0 to 5 yrs.

Q3. What is the premium that you are paying?

Particulars No. of Respondents Percentage

Below 25,000 09 45%

Above 25,000 06 30%

Above 50,000 05 25%

Total 20 100%

below 25K
above 25k
above 50k

ANALYSIS:

From the survey it was found that amongst 20 respondents

37 a) 45% of the respondents pay premium below 25,000.
b) 30% of the respondents pay premium above 25,000.
c) 25% of the respondents pay premium above 50,000.
Q4. Mode of payment of premium.

Particulars No. of Respondents Percentage

Yearly 12 60%
Half yearly 06 30%

Quarterly 01 05%
Monthly 01 05%

Total 20 100%

1
1

6 Yearly
Half yearly
Quarterly
12 Monthly

ANALYSIS:

From the survey it was found that amongst 20 respondents

38
a) 60% of the respondents pay premium yearly
b) 30% of the respondents pay premium half yearly
c) 05% of the respondents pay premium quarterly.
d) 05% of the respondents pay premium monthly.
Q5. Your criteria while taking insurance policy with us?

Particulars No. of Respondents Percentage

Tax benefit 02 10%

Protection 06 30%
Investment/Savings 11 55%
Health 01 05%
Total 20 100%

1 2

6 Tax benefit
Protection
Investment/Savings
Health
11

ANALYSIS:

From the survey it was found that amongst 20 respondents

a) 10% of the respondents are concerned about Tax Benefit.

3930% of the respondents are concerned about their Protection.
b)
c) 55% of the respondents are concerned about
Investment/Savings.
d) 05% of the respondents are concerned about Health.
Q6. How do you come to know about this policy?

Particulars No. of Respondents Percentage

Advertisements 03 15%
Friends and Relatives 05 25%
Sales Managers/FPA 10 50%
Others 02 10%
Total 20 100%

2 3

Advertisement
Friends and Relatives
5 Sales Manager/FPA
Others
10

ANALYSIS:

From the survey it was found that amongst 20 respondents

a) 15% of the respondents through Advertisement.

b) 25% of the respondents through Friends and Relatives.
c) 50% of the respondents through Sales Manager/FPA.
d) 10% of the respondents through others.
40
Q7. Advisers/Sales executives were you satisfied with their interaction?

Particulars No. of Respondents Percentage

Yes 16 80%
No 04 20%
Total 20 100%

Yes
No

16

ANALYSIS:

From the survey it was found that amongst 20 respondents

a) 80% of the respondents are satisfied.

b) 20% of the respondents are not satisfied .

41
Q8. Are you aware of Riders available with Aviva?

Particulars No. of Respondents Percentage

Yes 12 60%
No 08 40%
Total 20 100%

yes
no
12

ANALYSIS:

From the survey it was found that amongst 20 respondents

a) 60% of the respondents are aware of Riders.

b) 40% of the respondents are not aware of Riders.

42
Q9. Are you satisfied with the Policy you have purchased?

Particulars No. of Respondents Percentage

Yes 17 85%
No 03 15%
Total 20 100%

Yes
No

17

ANALYSIS:

From the survey it was found that amongst 20 respondents

a) 85% of the respondents are Satisfied.

b) 15% of the respondents are Not Satisfied.

43
Q10. Rate your overall experience with Aviva? (1 being the least and 5 being the highest)

Particulars No. of Respondents Percentage

1 1 05%

2 2 10%

3 7 35%

4 7 35%

5 3 15%

Total 20 100%

2
5 1

1
2
3
4
3 5

ANALYSIS:

From the survey it was found that amongst 20 respondents

a) 05% of the respondents have vetted no 1.

b) 10% of the respondents have vetted no 2.
c) 35% of the respondents have vetted no 3.
d) 35% of the respondents have vetted no 4.
e) 15% of the respondents have vetted no 5.
44
Findings

According to my survey the noteworthy points are:

 Most of the people buy life insurance for Investment and Savings tool or as a life cover
while only a few of the respondent take it as a Health or Tax benefit option. The reason
for this is lack of knowledge of insurance benefits among the people.

 A Majority of the respondent buy insurance products because of the need reason while
rest of the respondents buy for the brand purpose.

 A Majority of the people come to know about the policies from the Sales Managers and
FPA’s.

 A Majority of the people are satisfied by the incentives associated with their policies.

 Most of the respondents are satisfied by the services offered by there insurance company
while some says that they are not satisfied by the services.

 Most of the respondents want more Transparency from the side of the company.

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
AVIVA in private sector, we come at the conclusion that

 There are very tough competition among the private insurance companies on the level of
new trend of advertising to lull a major part of Customers.

 AVIVA is not much behind in the present race of advertisement.

 The entry of more Pvt. Players in the Insurance Sector have expanded the product
segment to meet the different level of the requirement of the customers. It has brought
about greater choice to the customers.

45
  AVIVA has good market and very firm grip on its traditional customers and monopoly of
life insurance products.

 AVIVA is Pioneer and as a firm grip in Bancassurance.

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.

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.

46
 Chapter 5
Annexure And
Bibliography

47
QUESTIONERE

NAME ................................... OCCUPATION .................................

AGE ................................... INCOME ..............................

SEX ............................. DEPENDENTS ...............................

1)Which insurance plan are you currently holding with AVIVA?

a) Aviva young scholar b) Freedom life plan c) Aviva sachin century

d) Aviva dhan vridhi e) Aviva pension plus d) Others

2)What is the tenure of the policy? ………………….

3)What is the premium that you are paying? …………………..

4) Mode of payment of premium

a) Yearly b) Half Yearly c) Quarterly

5) Please put a tick across the payment services you are aware off

a) Customer Service Centre b) Credit Cards c) Online payment

d) Visa Bill Pay e) ECS f) Post Office

g) Skypak Drop Boxes h) Cheque pick up facility h) Bank[DD/Cheque]

6) Your criteria while taking insurance policy with us.

a) Tax benefit b) Security

c) I Investment/savings d) Risk cover

7) How do you come to know about this policy?

a) Advertisement b) Friends and relatives

c) Sales Managers / Financial Planning Advisor. d) Others (please specify)

8) If Advisers/Sales executives were you satisfied with their interaction?

a) Yes b) No

9) Put a tick across the riders you have opted/aware of f?

48
 a) Accidental Death Benefit c) Hospital Cash Benefit

a) Comprehensive Benefit d) Income Benefit

10) Are you satisfied with policy you have purchased?

a) Yes b) No

11) Do you hold policies with any other insurance companies other than AVIVA?

a) LIC b ) ICICI c) HDFC

d) Birla Sun life e) Met life f) Others

12) Would you like to secure you future with any other product with us

a) Aviva young scholar b) Freedom life plan c) Aviva sachin century

d) Aviva dhan vridhi e) Aviva pension plus d) Others

13) Rate your overall experience with Aviva.

1) 2) 3) 4) 5)

Would you like to suggest your family or friends to secure their future with AVIVA

…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………

49
Bibliography

 www.avivaindia.com

 www.google.co.in

 en.wikipedia.org/wiki/Main_Page

 Brochures provided by the AVIVA life insurance

 Kothari C R, ‘Research and Methodology- Methods & Techniques’, New

Age International (P) Ltd., 2004

50