Customer Relationship Management in IDBI

A Summer Training Project Report On Customer Relationship Management in IDBI Federal Lie Insurance L!C"#O$

Submitted in partial fulfillment of the requirements for Award of Master o Business Administration

With Specialization In MAR"%TI#&

Su'mitted '( S!#IL C)O!DAR*+" Reg #o,

Under the Guidance of COMPA#* &!ID%

I#STIT!T% &!ID%

SA#TOS) "!MAR B+R

RO)IT) C "ALAS"AR

C!STOM%R %-%C!TI.%

S%CR%TAR* &%#%RAL )%T,IMS )!BLI

B.N. College of Engineering and echnolog! "uc#now 1

Declaration

I hereb! declare that the pro$ect entitled /C!STOM%R R%LATIO#S)IP MA#A&%M%#T0 underta#en at I%BI &E%E'A" "I&E INS('ANCE C). "%.*"(C+N)W submitted in partial fulfillment of the requirement for the award of the degree in ,aster in Business Administration to the B.N. College of Engineering and echnolog!* -une. It is m! srcinal wor# and is not submitted for the award of an! other degree or diploma.

Place Date

S!#IC L)O$DAR*+"

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AC"#O$L%D&%M%# As I loo# bac# after the completion of m! pro$ect I feel it would not hae been possible without the guidance. I am er! grateful to all the people who hae lent their precious time and adice for rendering this pro$ect successful. I ta#e this opportunit! to than# them all. &irstl!* I am grateful to /IDBI F%D%RAL LIF% I#S!RA#C% CO+ LTD+1 L!C"#O$0 for giing me an opportunit! to underta#e this pro$ect in their

organization. I sincerel! e/press m! than#s to m! compan! pro$ect guide

SA#TOS) "!MAR B+R

for his strong support and inspiration during m! pro$ect period. I heartl! than#ful to all the e/ecuties of the compan! for their aluable guidance and for sharing their e/perience in completing this pro$ect successfull!* I am than#ful to our Chairman Dr+ "AL%%L A)M%Dfor the strong inspiration during the pro$ect period. I would li#e than# our institute guide RO)IT) C "ALAS"AR for haing gien me this opportunit! and for his aluable eer0patient guidance eer endeaoring support* timel! help and constant encouragement and also I am than#ful to all facult! members of m! institution for their aluable guidance in completing this pro$ect successfull!. I also e/press than#s to m! parents* m! famil! members* and all m! friends for their aluable support in completion of this pro$ect successfull!. "ast but not least I am than#ful to all those people who helped us directl! and indirectl!. -lace1

%ate1

S!#IL C)O$DAR*+"

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CO#T%#TS

Chapter 2 Chapter 3

'ationale for the stud! )b$ectie of the stud! •

2 3,4

itle of the pro$ect

)b$ectie of the stud! Scope of the stud! -rofile of the compan! heoretical -erceptie 'esearch ,ethodolog! • •

Chapter 4 Chapter 5 Chapter 6

5,67 62,68 97,93

'esearch %esign %ata collection methods 2 sources Sampling plan which should include sampling unit* sampling size and sampling methods ia questionnaire methods* interiew methods* obserations etc Chapter 9 Chapter : Chapter ; Chapter 8

%ata anal!sis and interpretations using arious charts and graphs &indings "imitations if an! E/pected contribution from the stud! Appendi/ and Bibliograph!

94,:: :;,:8 ;7 ;2,;3 ;4,;8

O.%R.I%$ OF I#S!RA#C% S%CTOR With largest number of life insurance policies in force in the world* Insurance happens to be a mega opportunit! in India. It3s a business growing at the rate of 45067 per cent annuall! and presentl! is of the order of 's 857 billion. ogether with ban#ing

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serices* it adds about 9 per cent to the countr!3s :%-. :ross premium collection is nearl! 6 per cent of :%- and funds aailable with "IC for inestments are ; per cent of :%-. ; and the I'%A Act0 4===. he insurance sector in India has come a full circle from being an open competitie mar#et to nationalization and bac# to a liberalized mar#et again. racing the deelopments in the Indian insurance sector reeals the >?70degree turn witnessed oer a period of almost two centuries. Indian Insurance Industr(< Insurance ma! be described as a social deice to reduce

or eliminate ris# of life and propert!. (nder the plan of insurance* a large number of people associate themseles b! sharing ris#* attached to indiidual. he ris#* which can be insured against include fire* the peril of sea* death* incident* @ burglar!. An! ris# contingent upon these ma! be insured against at a premium commensurate with the ris# inoled.

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Insurance is actuall! a contract between 6 parties whereb! one part! called insurer underta#es in e/change for a fi/ed sum called premium to pa! the other part! happening of a certain eent.

Insurance is a contract whereb!* in return for the pa!ment of premium b! the insured* the insurers pa! the financial losses suffered b! the insured as a result of the occurrence of unforeseen eents.

With the help of Insurance* large number of people e/posed to a similar ris# ma#e contributions to a common fund out of which the losses suffered b! the unfortunate few* due to accidental eents* are made good -otential "argel! untapped mar#et1 49 of the world3s population o

Nearl! ;7 of the Indian population is without "ife* ealth and Non0life insurance

o

"ife insurance penetration is low at 8.4 in 677?079

o

Non0life penetration is een lower at 7.? in 677?079

o

he per capita spend on life and non0life insurance is (S>>.6 and (S5.6 D677?079* respectiel! compared to a world aerage of (S>>7 and (S668

o

Strong economic growth with increase in affluence and rising ris# awareness leading to rapid growth in the Insurance sector

o

Innoatie products such as (nit "in#ed Insurance -olicies are li#el! to drie future industr! growth

o

Inestment opportunities e/ist in both "ife and Non0life segments

o

otal estimated inestment opportunit! of (S48045 billion

STR!CT!R%

6

Indian Insurance mar#et was opened to priate @ foreign inestment in 4===06777 

he Indian Insurance industr! consists of a total of >4 pla!ers



"ife1 4 -ublic sector pla!erF 45 priate pla!ers



Non0"ife1 ? public sector pla!ersF = priate pla!ers



,a$or international pla!ers li#e AI:* Aia* ,et"ife* New


"ife Insurance mar#et is still dominated b! "ife Insurance Corporation D"IC 0 a public sector compan! which has 95 share of first !ear premium in 677?079



In Non0life* priate sector companies Dalmost all are $oint entures with foreign insurers accounted for >8 of the mar#et in 677? to 79.

POLIC* &%I up to 6? is permitted under the automatic route sub$ect to obtaining a license from the Insurance 'egulator! and %eelopment Authorit! DI'%A -lans to increase &%I up to 8= Insurance 'egulator! %eelopment Authorit! DI'%A is the regulator for the Insurance industr! In a landmar# moe the goernment detariffed the :eneral Insurance business on 4st Ganuar! 6779

$hat is Lie Insurance= "ife insurance is a guarantee that !our famil! will receie financial support* een in !our absence. -ut simpl!* life insurance proides !our famil! with a sum of mone! should something happen to !ou. It thus permanentl! protects !our famil! from financial crises.

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In addition to sering as a protectie coer* life insurance acts as a fle/ible mone!0saing scheme* which empowers !ou to accumulate wealth0to bu! a new car* get !our children married and een retire comfortabl!.

"ife insurance is a contract that pledges pa!ment of an amount to the person assured Dor his nominee on the happening of the eent insured against.

he contract is alid for pa!ment of the insured amount during1 •

he date of maturit!* or

•

Specified dates at periodic interals* or

•

(nfortunate death* if it occurs earlier

he functions of Insurance can be bifurcated into two parts1 4. -rimar! &unctions 6. Secondar! &unctions >. )ther &unctions

he primar! functions of insurance include the following1

Pro>ide Protection 0 he primar! function of insurance is to proide protection against

future ris#* accidents and uncertaint!. Insurance cannot chec# the happening of the ris#* but can certainl! proide for the losses of ris#. Insurance is actuall! a protection against economic loss* b! sharing the ris# with others.

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Collecti>e 'earing o ris? 0 Insurance is a deice to share the financial loss of few

among man! others. Insurance is a mean b! which few losses are shared among larger number of people. All the insured contribute the premiums towards a fund and out of which the persons e/posed to a particular ris# is paid.

Assessment o ris? 0 Insurance determines the probable olume of ris# b! ealuating

arious factors that gie rise to ris#. 'is# is the basis for determining the premium rate also

Pro>ide Certaint( 0 Insurance is a deice* which helps to change from uncertaint! to

certaint!. Insurance is deice whereb! the uncertain ris#s ma! be made more certain.

he secondar! functions of insurance include the following1

Pre>ention o Losses 0 Insurance cautions indiiduals and businessmen to adopt suitable

deice to preent unfortunate consequences of ris# b! obsering safet! instructionsF installation of automatic spar#ler or alarm s!stems* etc. -reention of losses cause lesser pa!ment to the assured b! the insurer and this will encourage for more saings b! wa! of premium. 'educed rate of premiums stimulate for more business and better protection to the insured. Small capital to co>er larger ris?s 0 Insurance reliees the businessmen from securit!

inestments* b! pa!ing small amount of premium against larger ris#s and uncertaint!.

Contri'utes to@ards the de>elopment o larger industries 0 Insurance proides

deelopment opportunit! to those larger industries haing more ris#s in their setting up. Een the financial institutions ma! be prepared to gie credit to sic# industrial units which hae insured their assets including plant and machiner!.

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E )E' &(NCI)NS )& INS('ANCE INC"(%E E &)"")WIN:1

Means o sa>ings and in>estment 0 Insurance seres as saings and inestment*

insurance is a compulsor! wa! of saings and it restricts the unnecessar! e/penses b! the insuredHs &or the purpose of aailing income0ta/ e/emptions also* people inest in insurance.

Source o earning oreign echange 0 Insurance is an international busin ess. he

countr! can earn foreign e/change b! wa! of issue of marine insurance policies and arious other wa!s.

Ris? Free trade 0 Insurance promotes e/ports insurance* which ma#es the foreign trade

ris# free with the help of different t!pes of policies under marine insurance coer.

#eed or Lie Insurance oda!* there is no shortage of inestment options for a person to choose from. ,odern da! inestments include gold* propert!* fi/ed income instruments* mutual funds and of course* life insurance. :ien the plethora of choices* it becomes imperatie to ma#e the right choice when inesting !our hard0earned mone!. "ife insurance is a unique inestment that helps !ou to meet !our dual needs 0 saing for lifeHs important goals* and protecting !our assets. "E (S "))+ A ESE (NI(E BENE&IS )& "I&E INS('ANCE IN %EAI".

Asset Protection &rom an inestorHs point of iew* an inestment can pla! two roles 0 asset appreciation or asset protection. While most financial instruments hae the underl!ing benefit of asset appreciation* life insurance is unique in that it gies the customer the reassurance of asset protection* along with a strong element of asset appreciation.

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he core benefit of life insurance is that the financial interests of one3s famil! remain protected from circumstances such as loss of income due to critical illness or death of the polic!holder. Simultaneousl!* insurance products also hae a strong inbuilt wealth creation proposition. he customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of inestment options aailable to a customer.

&oal 'ased sa>ings Each of us has some goals in life for which we need to sae. &or a !oung* newl! married couple* it could be bu!ing a house. )nce* the! decide to start a famil!* the goal changes to planning for the education or marriage of their children. As one grows older* planning for oneHs retirement will begin to ta#e precedence. Clearl!* as !our life stage and therefore !our financial goals change* the instrument in which !ou inest should offer corresponding benefits pertinent to the new life stage. "ife insurance is the onl! inestment option that offers specific products tailor0made for different life stages. It thus ensures that the benefits offered to the customer reflect the needs of the customer at that particular life stage* and hence ensures that the financial goals of that life stage are met. he table below gies a general guide to the plans that are appropriate for different life stages. Lie

Lie Stage

Insuranc e

Primar( #eed

Product

Asset creation

Wealth creation plans


Asset creation @ Wealth protection

creation and

mortgage

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protection

Gustmarried

plans ChildrenHs

,arried

education*

With #ids

Asset

Education

insurance*

mortgage protection @ creati on wealth creation plans

and protection ,iddle

aged -lanning

for

with grown up retirement #ids Across all lif0 stages

@

asset protection ealth plans

'etirement solutions @ mortgage protection

ealth Insurance

Insurance Lie .S Other Sa>ings Contract o Insurance<

A contract of insurance is a contract of utmost good faith technicall! #nown as uberrima fides. he doctrine of disclosing all material facts is embodied in this important principle* which applies to all forms of insurance.

At the time of ta#ing a polic!* polic!holder should ensure that all questions in the proposal form are correctl! answered. An! misrepresentation* non0disclosure or fraud in an! document leading to the acceptance of the ris# would render the insurance contract null and oid. Protection< Saings through life insurance guarantee full protection against ris# of death of

the saer. Also* in case of demise* life insurance assures pa!ment of the entire amount

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assured Dwith bonuses whereer applicable wherea s in other saings schemes* onl! the amount saed Dwith interest is pa!able.

Aid to Thrit<

"ife insurance encourages HthriftH. It allows long0term saings since pa!ments can be made effortlessl! because of the Heas! installmentH facilit! built into the scheme. D-remium pa!ment for insurance is monthl!* quarterl!* half !earl! or !earl!. &or e/ample1 he Salar! Saing Scheme popularl! #nown as SSS proides a conenient method of pa!ing premium each month b! deduction from oneHs salar!. In this case the emplo!er directl! pa!s the deducted premium to "IC. he Salar! Saing Scheme is ideal for an! institution or establishment sub$ect to specified terms and conditions.

Liuidit(<

In case of insurance* it is eas! to acquire loans on the sole securit! of an! polic! that has acquired loan alue. Besides* a life insurance polic! is also generall! accepted as securit!* een for a commercial loan.

Ta Relie<

"ife Insurance is the best wa! to en$o! ta/ deductions on income ta/ and wealth ta/. his is aailable for amounts paid b! wa! of premium for life insurance sub$ect to income ta/ rates in force. Assesses can also aail of proisions in the law for ta/ relief. In such cases the assured in effect pa!s a lower premium for insurance than otherwise.

Mone( $hen *ou #eed It<

A polic! that has a suitable insurance plan or a combination of different plans can be effectiel! used to meet certain monetar! needs that ma! arise from time0to0time. ChildrenHs education* start0in0life or marriage proision or een periodical needs for cash

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oer a stretch of time can be less stressful with the help of these policies. Alternatiel!* polic! mone! can be made aailable at the time of oneHs retirement from serice and used for an! specific purpose* such as* purchase of a house or for other inestments. Also* loans are granted to polic!holders for house building or for purchase of flats Dsub$ect to certain conditions.

$ho Can Bu( A Polic(= An! person who has attained ma$orit! and is eligible to enter into a alid contract can insure himself2herself and those in whom he2she has insurable interest.

-olicies can also be ta#en* sub$ect to certain conditions* on the life of oneHs spouse or children. While underwriting proposals* certain factors such as the polic!holder3s state of health* the proponentHs income and other releant factors are considered b! the Corporation.

Insurance For $omen -rior to nationalization D4=5?* man! priate insurance companies would offer insurance to female lies with some e/tra premium or on restrictie conditions. oweer* after nationalization of life insurance* the terms under which life insurance is granted to female lies hae been reiewed from time0to0time.

At present* women who wor# and earn an income are treated at par with men. In other cases* a restrictie clause is imposed* onl! if the age of the female is up to >7 !ears and if she does not hae an income attracting Income a/.

Medical And #on,Medical Schemes "ife insurance is normall! offered after a medical e/amination of the life to be assured. oweer* to facilitate greater spread of insurance and also to aoid

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inconenience* "IC has been e/tending insurance coer without an! medical e/amination* sub$ect to certain conditions. $ith Proit And $ithout Proit Plans

An insurance polic! can be HwithH or HwithoutH profit. In the former* bonuses disclosed* if an!* after periodical aluations are allotted to the polic! and are pa!able along with the contracted amount. In HwithoutH profit plan the contracted amount is paid without an! addition. he premium rate charged for a HwithH profit polic! is therefore higher than for a HwithoutH profit polic!.

"e( man Insurance

+e! man insurance is ta#en b! a business firm on the life of #e! emplo!eeDs to protect the firm against financial losses* which ma! occur due to the premature demise of the +e! man

PRI#CIPL%S OF I#S!RA#C%

Insurance is a specialized t!pe of contract. Apart from the usual essentials of a alid contract* insurance contracts are sub$ect to some additional principl es. hese principles proide the framewor# within which the product and all the contracts of insurance operate.



Principle o cooperation1 A deice to share ris# @ uncertainties collectiel!* one

for all and all for one33 

Principle o pro'a'ilit(< Important determinant of insurance premium* 'ate of

premium depends on quantum of ris# @ probabilit! of ris#

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

Principle o Insura'le Interest 1 Interest of such a nature that the possessor

would be financiall! in$ured b! the occurrence of the eent insured against* JJ "A to be more aluable alie then dead 

Principle o utmost good aith1 he parties to the contract Dinsurer and insured

are legall! bound to reeal each other all information about the sub$ect matter* which would influence each other3s decision. 

Principal o @arranties1 A warrant! is an underta#ing b! assured that some

conditions shall be fulfilled* or a certain thing shall be or shall not be done. A warrant! ma! be E/press or Implied 

Principle o Cause Proimal1 In order to ma#e the Insurer liable for loss* such

loss must hae been pro/imatel! caused b! the -eril insured against. E.g. A%B'.

hese ? principles are applicable to all the products* both life and Non0"ife. hese principles proide the framewor# within which the products and all the contracts of "ife Insurance operate.

)ISTOR* OF I#DIA# I#S!RA#C% I#D!STR* he insurance sector in India has come a full circle from being an open competitie mar#et to nationalization and bac# to a liberalized mar#et again.

racing the deelopments in the Indian insurance sector reeals the >?70degree turn witnessed oer a period of almost 4=7 !ears.

he business of life insurance in India in its e/isting form started in India in the !ear 4;4; with the establishment of the )riental "ife Insurance Compan! in Calcutta.

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Some of the important milestones in the life insurance business in India are 2823 0 he Indian "ife Assurance Companies Act enacted as the first statute to

regulate the life insurance business.

283; 0 he Indian Insurance Companies Act enacted to enable the goernment to collect statistical information about both life and non0life insurance businesses.

284; 0 Earlier legislation consolidated and amended to b! the Insurance Act with

the ob$ectie of protecting the interests of the insuring public.

2869 0 685 Indian and foreign insure rs and proident societies ta#en oer b! the

central goernment and nationalized. "IC formed b! an Act of -arliament* iz. "IC Act* 4=5?* with a capital contribution of 's. 5 crore from the :oernment of India.

he :eneral insurance business in India* on the other hand* can trace its roots to the riton Insurance Compan! "td.* the first general insurance compan! established in the !ear 4;57 in Calcutta b! the British.

Some of the important milestones in the general insurance business in India are1

287: 0 he Indian ,ercantile Insurance "td. set up* the first compan! to transact

all classes of general insurance business.

286: 0 :eneral Insurance Council * a wing of the Insurance Association of India*

frames a code of conduct for ensuring fair conduct and sound business practi ces.

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289; 0 he Insurance Act amended to regulate inestments and set minimum

solenc! margins and the ariff Adisor! Committee set up.

28:3 0 he :eneral Insurance Business DNationalization Act* 4=96 nationalized

the general insurance business in India with effect from 4st Ganuar! 4=9>.

27: insurers amalgamated and grouped into four companies iz. the National Insurance Compan! "td.* the New India Assurance Compan! "td.* the )riental Insurance

Compan! "td. and the (nited India Insurance Compan! "td. :IC incorporated as a compan!. Before insurance sector was opened to the priate sector "ife Insurance Corporation D"IC was the onl! insurance compan! in India. After the opening up of Insurance sector in India there has been a glut of insurance companies in India. hese companies hae come up with innoatie and fle/ible insurance policies to cater to ar!ing needs of the indiidual. )pening up of the Insurance sector has also forced the "IC to tighten up its belt and delier better serice. All in all it has been a bonanza for the consumer. he life insurance business in India started since 4;4;. ill 4=5?* the insurance business was mi/ed and decentralized. In 4=5?* the life insurance business of all companies was nationalized and a single monolithic organization* the "ife Insurance Corporat ion of India D"IC* was set up. he Insurance

'egulator! and

%eelopment Authorit! DI'%A Bill was passed b! Indian parliament in %ecember 4===. he I'%A become a statutor! bod! in April 6777 and has been framing regulations and restrictions the priate sector insurance companies. he insurance sector was opened up to the priate sector in August 6777. Consequentl!* some Indian and foreign priate companies hae entered the insurance business. here are about 4? life insurance companies operating in the priate sector in India.

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he insurance sector in India has come a full circle from being an open competitie mar#et to nationalization and bac# to a liberalized mar#et again. racing the deelopments in the Indian insurance sector reeals the >?7 degree turn witnessed oer a period of almost two centuries.

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PROFIL% OF T)% COMPA#*

IDBI Federal Lie Insurance Co Ltd

is a $oint0enture of I%BI Ban#*

India3s premier deelopment and commercial ban#* &ederal Ban#* one of India3s leading priate sector ban#s and Ageas* a multinational insurance giant based out of Europe. In this enture* I%BI Ban# owns 8; equit! while &ederal Ban# and Ageas own 6? equit! each. At I%BI &ederal* we endeaor to delier products that proide alue and conenience to the customer. hrough a continuous process of innoation in product and serice delier! we intend to delier world0class wealth management* protection and retirement solutions to Indian customers. aing started in ,arch 677;* in $ust fie months of inception we became one of the fastest growing new insurance companies to garner 's 477 Cr in premiums. he compan! offers its serices through a ast nationwide networ# across the branches of I%BI Ban# and &ederal Ban# in addition to a sizeable networ# of adisors and partners. As on >4st ,arch* 6746* the compan! has issued oer >.9? la#hs policies with oer 64*59; Cr in Sum Assured.

Management<

•

•

&. #age s@ ara Rao is the ,% @ CE) of I%BI &ederal "ife Insurance. Aneesh Sri>asta>a is the CI) o IDBI &ederal "ife Insurance.

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•

Michael  $ood is the appo int ed actuar( of I%BI &ederal "ife

Insurance

The sponsors o IDBI Federal Lie Insurance Co Ltd+

E

IDBI Ban? Ltd+ continues to be* since its inception* India3s premier

industrial deelopment ban#. It came into being as on Gul! 74* 4=?8 Dunder the Companies Act* 4=5? to support India3s industrial bac#bone. oda!* it is amongst India3s foremost commercial ban#s* with a wide range of innoatie products and serices* sering retail and corporate customers in all corners of the countr! from =99 branches and 4588 A,s. he Ban# offers its customers an e/tensie range of diersified serices including pro$ect financing* term lending* wor#ing capital facilities* lease finance* enture capital* loan s!ndication* corporate adisor! serices and legal and 21

technical adisor! serices to its corporate clients as well as mortgages and personal loans to its retail clients. As part of its deelopment actiities* I%BI Ban# has been instrumental in sponsoring the deelopment of #e! institutions inoled in India3s financial sector KNational Stoc# E/change of India "imited DNSE and National Securities %epositor! "td* SCI" DStoc# olding Corporation of India "td* CA'E DCredit Anal!sis and 'esearch "td.

Federal Ban? is one of India3s leading priate sector ban#s* with a

dominant presence in the state of +erala. It has a strong networ# of oer =57 branches and 4776 A,s spread across India. he ban# proides oer four million retail customers with a wide ariet! of financial products. &ederal Ban# is one of the first large Indian ban#s to hae an entirel! automated and interconnected branch networ#. In addition to interconnected branches and A,s* the Ban# has a wide range of serices li#e Internet Ban#ing* ,obile Ban#ing* ele Ban#ing and An! Where Ban#ing* debit cards* online bill pa!ment and call centre facilities to offer round the cloc# ban#ing conenience to its customers. he Ban# has been a pioneer in proiding innoatie

technological

solutions

to

its

customers

and

the

Ban#LhasLwonLseeralLawards.

Ageas is an international insurance compan! with a heritage spanning more

than 4;7 !ears. 'an#ed among the top 67 insurance companies in Europe* Ageas has chosen to concentrate its business actiit ies in Europe and Asia* which together ma#e up the largest share of the global insurance mar#et. hese are grouped around four segments1 Belgium* (nited +ingdom* 22

Continental Europe and Asia and sered through a combination of wholl! owned subsidiaries and partnerships with strong financial institutions and #e! distributors around the world. Ageas operates successful partnerships in Belgium* (+* "u/embourg* Ital!* -ortugal* ur#e!* China* ,ala!sia* India and hailand and has subsidiaries in &rance* :erman!* ong +ong and (+. It is the mar#et leader in Belgium for indiidual life and emplo!ee benefits* as well as a leading non0life pla!er* through A: Insurance* and in the (+* it has a strong presence as the third largest pla!er in priate car insurance and the oer 573s mar#et. It emplo!s more than 4>*777 people and has annual inflows of more than E(' 49billion. .ISIO#<

o be the leading proider of wealth management* protection and recruitment solutions that meets the needs of the customers and adds alues to their lies. MISSIO#< •

o continuall! strie to enhance customer e/perience through innoatie product offerings* dedicated relationship management and superior serice delier! while striing to interact with the customers

• •

in the most conenient and most cost effectie manner. o be transparent with the customers and to act with integrit!. o inest in and build qualit! human capital in order to achiee our mission.

.AL!%S 23

ransparenc! Malue to customers &inancial strength %elier! on -romise Customer friendl! -rofit to Shareholders

At I%BI &ederal "ife Insurance Co. "td.* the Endeaour is to delier products that proide alue and conenience to the customer. hrough a continuous process of innoation in product and serice delier!* the intent is to delier world class wealth management* protection and retirement solutions to Indian customers. TRAC" R%CORD •

India3s fastest growing life insurance compan! with -an India

•

presence. ,odal premium 's.>4? crores in the first !ear of operation. Aboe 's.>777 crores of sum assured* =7777 policies and 9777

•

• •

• •

distributors. ,oed into 4>th position from 4;th as on >4st ,arch 677=. &astest 's.477 crores and fastest 's.>77 crores business targets met since inception. &unds performing in the top quartile consistentl!. Achieed one of the lowest cost ratios in the industr!.

PROD!CTS OFF%R%D B* IDBI F%D%RAL LIF% I#S!RA#C% CO+ LTD+

24

• • • • • • • • • • •

Childsurance "ifesurance Wealthsurance :roup ,icrosurance Incomesurance ealthsurance Bondsurance omesurance ermsurance "oansurance 'etiresurance

I%BI &ederal "ife Insurance Co. "td. proides its serices through three means. he! are1 Bancassurance Channel* Agenc! Channel and Alliance Channel. he "uc#now branch of I%BI &ederal "ife Insurance Co. "td. deals with plans li#e childsurance* lifesurance* wealthsurance* termsurance and incomesurance. PROD!CT PROFIL%

I%BI &ederal "ife Insurance -roduct able 'etirement2-ension -lan erm-lan Saings @ Inestment -lan Saings @ Inestment -lan Saings @ Inestment -lan ealth-lan

'etiresurance ermsurance Wealthsurance Bondsurance Incomesurance ealthsurance

PROD!CTS I# D%TAIL

25

Childsurance<

I%BI federal3s childsurance is for the parents who are loo#ing to ma#e their child3s future shoc#0proof is its powerful insurance benefits. Childsurance allows to !ou to protect !our child plan with triple insurance benefits so that !our wealth0building plan remains unaffected b! unforeseen eents and !our child future remains secure. I%BI &ederal Childsurance %reambuilder Insurance -lan is a (nit lin#ed plan which is loaded with lots of benefits which will help !ou to build* create and manage !our inestment with great fle/ibilit! so that !our plan meets !our specific needs. he following are the #e! benefits Childsurance



%reambuilder Insurance

-lan.

•

Contribute mone! in a fle/ible wa! to suit customer3s saings habit A wide choice of inestment options* based on customer3s return

•

e/pectations and ris# tolerance Inestment strateg! according to customer3s profile

•

26

• • • • •

elps to boost customer3s saings. Customers can decide on how to manage their inestments. elps to secure child3s future goals a/ benefits on contributions and benefits &unds can be withdrawn in case of need* after fie !ears

)ealthsurance<

I%BI federal ealthsurance ospitalization and surgical plan offers host of features and benefits that is designed to help the customers to manage e/tra burden that comes with hospitalization. his plan targets the customers within the age limit of 4; !ears K 55 !ears. he following diagram shows the reasons behind wh! healthsurance plan should be included in the financial plan of eer! indiidual.

BENE&IS (N%E' EA"S('ANCE I%BI &ederal ealthsurance ospitalization and Surgical -lan is a power pac#ed plan with loads of benefits that aim to #eep !ou tension free. 27

•

%ail! hospital cash benefit paid for each da! D68 hours spent in an eligible hospital Dfrom da! 6 onwards1 's. 577* 's. 4*777* 's. 4*577 or 's. 6*777 depending on customer3s choice of benefit leel

•

igher dail! hospital cash benefits of 's >*777 and 's. 8*777 aailable* sub$ect to suitable proof of income

•

Additional dail! benefit equal to the dail! hospital cash benefit* from da! 6 onwards for hospitalization in an Intensie Care (nit* Dup to an oerall ma/imum dail! benefit of 's. 5*777

•

Additional lump sum surger! benefit paid if customer undergo an! of the wide range of surgical procedures specified in this brochure1 either 57 or 477 times customer3s chosen dail! benefit* depending on the seerit! of the surger!

•

hree times customer3s dail! hospital cash benefit paid as a lump sum conalescence benefit Dma/imum once per !ear  if

customer3s

hospital sta! is at least 4?; continuous hours Dat least 9 consecutie da!s •

:enerous total benefit limits. (p to 577 times customer3s dail! hospital cash benefit each !earF up to 6*777 times customer3s dail! hospital cash benefit oer the lifetime of customer3s polic!

•

Coer lasts until customer are aged ?5 !ears* proided customer continue to pa! their premiums in the agreed manner and as long as their lifetime benefits limit D6*777 times !our dail! hospital cash benefit has not been reached

•

Customer3s choice of nominee* to whom an! outstanding benefits will be paid* in the eent of the death of the insured person

28

•

"ow0cost monthl! premiums that depend on customer3s age at the outset. Customer3s premium will neer increase because of an! changes in their age* health* or the number of claims the! ma#e. oweer* I%BI &ederal "ife Insurance Co. "td. does resere the right Dsub$ect to I'%A approal to increase premiums in the future across all its specified plans.

%cluded occupations under )ealthsurance

Applications for coer will not be accepted from an!one wor#ing in an! occupation described below at the time of appl!ing. In the eent of a claim whilst the insured person is actie in an! of these occupations* the claim will onl! be considered with the proision of proof that the insured person was not wor#ing in an! of these occupations at the commencement date. •

Wor#ing in confined spaces in essels* tunnels* underground ciil wor#s* mines* rigs Dincluding offshore rigs or ships

•

Industrial wor# using hea! machiner! or wor#ing as a welder

•

Wor#ing in the agricultural sector or as a forestr! wor#er or as timber camp personnel

•

Wor#ing with to/ic chemicals or e/plosies or in weapons manufacture or trading* or in the demolition trade

•

Wor#ing in transport business Dunless onl! doing clerical wor#

•

Wor#ing at heights Dat least 67 metres aboe the ground or floor leel

•

Wor#ing as a fireman* securit! guard or patrolman* or as a member of the police force or sering in the armed forces

29

Liesurance<

I%BI federal "ifesurance -lan is a saing insurance plan that helps !ou to safeguard !our wealth at the same time will present better opportunit! to earning better return.

30

"%* F%AT!R%S OF LIF%S!RA#C% SA.I#&S I#S!RA#C% PLA#

Maturit( Beneit

)n the maturit! of !our "ifesurance polic!* proided all premiums hae been paid in full when due we will pa! !ou the sum insured along with the ested guaranteed additions* ested reersionar! bonuses and terminal bonus*

if

an!*

in

a

lump

sum.

,aturit! Benefit O Sum insured P Mested guaranteed additions P Mested reersionar! bonuses P erminal bonus Death Beneit

)n the death of the life insured during the polic! term* proided all premiums hae been paid in full when due we will pa! the beneficiar!* the

31

sum insured along with the ested guaranteed additions* ested reersionar! bonuses* interim bonus* if an! and terminal bonus* if an! in a lump sum. %eath Benefit O Sum insured P Mested guaranteed additions P Mested reersionar! bonuses P Interim bonus Dif an! P erminal bonus &uaranteed Additions

:uaranteed additions at the rate 57 per 4*777 sum insured will be added to !our polic! for each full annual premium that is due and paid in the first 5 !ears of the polic!. In the case of premiums paid more frequentl! than annuall!* the guaranteed additions will be added on a pro rata basis as the due premiums are paid in the first 5 !ears of the polic!. he ested guaranteed additions will become pa!able along with the sum insured at the time of a claim or maturit! of the polic!. Bonuses

After the fifth polic! !ear !our "ifesurance polic! will participate in an! profits of our participating polic!holders3 life fund b! wa! of reersionar! bonuses and possibl! terminal bonus. he amount of an! profits* and hence of an! bonuses will depend on the future e/perience and performance of the fund. he bonuses will be declared b! the Board of I%BI &ederal "ife Insurance Compan! each !ear* and once added the! will form part of the guaranteed benefits of the polic!. he Compan! ma! declare an interim bonus in the eent of a claim before the ne/t bonus declaration. he compan! ma! also declare a terminal bonus to be paid on maturit! or death proided all the due premiums hae been paid.

32

Ta Beneits 

Deduction under Sec ;7C< he premiums that !ou inest in

"ifesurance are eligible for deduction under Sec ;7C of the Income a/ Act up to the limit of 's. 4* 77*777 Dalong with other eligible inestments. 

Ta,ree Beneits under Sec 2727DG< he maturit! benefit as well

as death benefit are ta/0free under Sec 47D47% of the Income a/ Act 

here is also no ta/ deduction at source.

Flei'le Premium Pa(ment Term PPTG H Polic( Term PTG Polic( Term<
receie the maturit! benefits. "ifesurance proides !ou the fle/ibilit! to choose between four polic! terms K47* 45* 67 or 65 !ears. Premium Pa(ment Term<
li#e to pa! premiums towards !our "ifesurance -lan. he minimum -remium -a!ment erm is 5 !ears for polic! terms of 45* 67 and 65 !ears. he minimum premium pa!ment term is ? !ears for polic! term of 47 !ears. he ma/imum -remium -a!ment erm can be equal to the -olic! erm. he minimum premium amount is 's 67*777 for annual installments* 's 47*777 for half0!earl! installments* 's 5*777 for quarterl! installments and 's 6*577 for monthl! installments. Loans

33

antage $omen

"ifesurance offers an additional premium discount for female insured persons. he basic premium pa!able for a female polic!holder will be equialent to the premium for a corresponding three0!ear !ounger male polic!holder. Liesurance Su>idha Sa>ings Plan

he IDBI

Federal

Liesurance

Su>idha

Sa>ings

Insurance

Plan Dhereinafter referred to as "ifesurance is a participating endowment

plan that guarantees and allows !ou to accumulate considerable saings to meet customer3s long term responsibilities in life. -olic! will participate in the surplus of the compan!Hs participating polic!holders3 life fund* and customer3s share of this surplus will be added to customer polic!* from the 8th polic! !ear onwards* b! wa! of reersionar! bonuses and a terminal bonus added at the time of maturit!* or on earlier death. As a consequence* participating polic!holders who maintain their policies till maturit! will en$o! the benefits of long term debt and equit! inestment while being protected from the short term olatilit! of the securities mar#ets. Features<

34

Beneits at Maturit( •

Sum Insured along with guaranteed additions at the rate of 's. 57 per 4*777 of the Sum Insured for the first > !ears of the polic! P

•

'eersionar! bonuses from the 8th polic! !ear onwards

P •

erminal bonus added at the time of maturit!* or on earlier death

-lan benefits and Eligibilit! 4. -remiums are e/clusie of serice ta/ and education cess. a. As per the current ta/ laws* serice ta/ applicable under the polic! is >.7=  Dincluding education cess of the premiums paid for the first !ear and 4.585 for the renewal premiums. Serice ta/ and education cess are as per the e/tant laws. 6. &or "ifesurance Suidha Saings* the ma/imum aggregate sum insured limit for an indiidual life is limited to 's. ?* 77*777 for each 46 month period and to 's. 67* 77*777 in total. hese limits will be calculated after including all indiidual and group policies of I%BI &ederal "ife Insurance Co. "td* e/cept the full! underwritten policies. >. :uaranteed %eath Benefit is Sum insured plus ested :uaranteed Additions. 35

Bondsurance<

Bondsurance is designed for customer loo#ing for guaranteed returns which will not get affected b! financial mar#et conditions. It offers guaranteed return on inestment along with life insurance coer. Bondsurance Ad>antage Insurance Plan

he I%BI &ederal BondsuranceQ Adantage Insurance -lan is a single premium plan where !ou need to ma#e $ust a one0time inestment.
Flei'ilit( to choose Polic( term rom multiple options<

Customers can now choose polic! term as 5!rs* 9!rs* 47!rs* 45!rs and 67!rs •

Multiple Co>er options

Customers can choose their plan from > aailable coer options as per their preference. he! hae now option to insure single life and $oint life depending on the insurance coer option chosen b! them. •

Death 'eneit

36

In case of indiidual life* on death of the insured person the death benefit amount will be paid. In case of $oint life* death benefit will be paid on the death of the last suriing insured person. •

Minor Lie is insured<


Maturit( Beneit<

:uaranteed maturit! alue is dependent on the polic! term* premium amount* age of the indiidual and insurance coer option chosen. %ecreasing sum insured options will enhance !our returns. •

Surrender Option

BondsuranceQ also proides liquidit! before maturit!. After ? months from the commencement date* !ou hae the option to prematurel! redeem BondsuranceQ Adantage Insurance -lan b! surrendering the polic! •

Customers are allowed after ? months after the polic! commencement date.

•

:uaranteed surrender alue will increase with the polic! term.

•

Special surrender alue higher than :uaranteed surrender alue ma! be pa!able.

37

•

Discount on single premium

If customers choose a ,aturit! Benefit of 's 4* 57*777 or higher* the! will also get a discount on the single premium amount as per the %iscount able. Bondsurance Plan

I%BI &ederal BondsuranceQ -lan DBondsuranceQ is a single premium plan which allows customer to ma#e a one0time inestment and get a guaranteed amount on maturit!. Customer can choose a maturit! period of 5 or 47 !ears for !our inestment. At the end of the chosen period* the! will receie a guaranteed maturit! amount. Besides the guaranteed maturit! amount* BondsuranceQ also proides a life insurance coer. In case of death before the maturit! date* a %eath Benefit which is also guaranteed will be paid. hus customer can get life insurance coer* while earning an assured return on their inestment. A+ &uaranteed Return on in>estment

BondsuranceQ gies customer guaranteed returns on their one0time inestment. All the! hae to do is choose the ,aturit! Benefit* and the ,aturit! -eriod for their inestment. Based on customer3s choice* the inestment the! hae to ma#e b! wa! of single premium is determined. B+ Lie Insurance Co>er o 6 times the in>ested amount

38

Besides giing assured returns* BondsuranceQ also proides a life insurance coer. In the unfortunate eent of death of the Insured -erson before the maturit! date* a %eath Benefit equal to fie times the single premium amount will be paid. he %eath Benefit Dwhich is the Sum Insured is guaranteed. he -lan will terminate upon pa!ment of %eath Benefit. he life insurance coer ensures that the financial securit! of loed ones is secured. $ealthsurance<

Wealthsurance plan enables the polic!holder to sae and build wealth to meet their financial goals. Wealthsurance plan comes up with a wide range of 4> inestment option and 9 insurance benefits with low charge structure and unmatched fle/ibilit!. Wealthsurance offers customers Insured Wealth -lans. he! allow customers to create* build and manage wealth b! giing seeral choices and great fle/ibilit! so that the! plan meets their specific needs. Customers can decide how the! wish to sae so that it suits their saings habit. Customer can choose how their mone! is inested so that the! can grow wealth as per their inestment preferences. What is een better* Wealthsurance protects customers wealth plans with life insurance benefits so that their wealth0building efforts remain unaffected in unforeseen eents and their financial goals can still be achieed. $ealth Plan @ith a po@erul range o In>estment Choices

Wealth creation does not happen b! chance* it needs a plan. 

Wealthsurance is a wealth plan which allows customers to build and manage wealth. Customer can sae into the plan as much mone! as the! want* whether at regular interals or as per their conenience. 39

Wealthsurance offers a wide choice of inestment options from which the! can select one or more* based on their preferences. he inestment options offered are designed to meet the needs of all t!pes of inestors depending upon their ris# appetite* stage of life or inestment horizon. Customers can choose options that gie1 a. Assured fi/ed returns b. Mariable returns lin#ed to mar#et performance or c. 'eturns lin#ed to equit! mar#et but with protection of capital. Wealth grows in plan* based on the options chosen. $ealth Plan can 'e insured against unoreseen e>ents

Wealthsurance -lan can protect customers Wealth -lan against a range of eents such as death* 49 ma$or diseases* sic#ness requiring hospitalisation* serious accidental in$uries or total and permanent disablement. With other inestment products* if an! such eent happens* customer ma! not be able to sae as planned or een be forced to withdraw from their saings. But in Wealthsurance* these benefits allow them to meet additional e/penses without affecting their fund alue so that their plans to sae and accumulate wealth are not affected een if life throws surprises at them. $ealthsuranceJ is or those @ho @ill li>e

"ife insurance is sometimes thought of as for those who might die* but Wealthsurance is for those who will lie. (suall! life insurance products

40

proide benefits upon death* but Wealthsurance is designed to also gie "iing Benefits to ensure !our well0being in !our own lifetime. here are arious Wealthsurance plans offered b! the compan! such as •

Wealthsurance ,a/igain Insurance-lan his plan ma/imizes the gains and the same time are shielded from potential losses. he plan proides a unique inestment fund called the ,a/iNAM :uaranteed &und which offers the guarantee of the highest NAM achieed on the reset dates during the 9 !ears trac#ing period from the date of launch of the fund on the polic! maturit! date. his special feature can proide customers with benefit from mar#et increases and protects them from mar#et declines.

•

Wealthsurance %reambuilder Insurance -lan his plan ensures that customer3s goals of wealth creation are achieed een in the eents of serious misfortune and remain unaffected in unforeseen eents. his plan offers greater fle/ibilit! so that customer can create wealth as per specific needs and inestment preferences.

•

Wealthsurance -remier Insurance -lan his plan combines wealth creation and the insurance protection into one powerful financial solution. (nli#e other inestment

41

alternaties* it allows customer to ensure that their goals of wealth creation are achieed een in case of serious illness. )omesurance<

omesurance protection plan proides full insurance coer for properties under construction* thus ensuring that beneficiar! gets the full sanctioned amount in case of an unfortunate eent. It also has an innoatie fi/ed coer for those who would prepa! their loans earl!. )omesurance Protection Plan

he I%BI &ederal omesurance



-rotection -lan is a reducing term plan*

which proides insurance coer equal to the outstanding balance of home loan. In the unfortunate eent of death of the home loan borrower* the insurance coer enables repa!ment of the home loan liabilit!. Protection against loan lia'ilit(

A home loan is usuall! a large liabilit! and if the breadwinner who would repa! the loan were not to be there* it could become a serious burden to the famil!. he omesurance -rotection -lan protects against this liabilit!. he specifics of the plan are as follows1 2+ Co>er Amount reduces o>er time

)utstanding home loan amount normall! reduces oer time as customer repa! b! wa! of monthl! installments. Accordingl!* the coer amount under the omesurance -rotection -lan also reduces with time to reflect the outstanding loan amount. At the time of the plan* customer will receie a

42

-olic! Schedule based on the amount and terms of loan* which will show them the reducing coer amount oer time. 3+ Beneit Amount is paid on death

In the eent of death of the insured* insurer will pa! either the coer amount as per the omesurance -rotection -lan -olic! Schedule as on the date of death* or the actual outstanding balance in the insured loan account as on the date of death* whicheer is higher. %eath due to an! cause including illness or accident is coered under the plan. %eath* whether in India or abroad is also coered under the plan. )omesurance Plan

I%BI &ederal omesurance -lan Domesurance is a mortgage reducing term plan which offers protection to a person and his famil! from their home loan liabilit!. he plan proides a coer equal to the outstanding balance of home loan in the unfortunate eent of e/pir! of the insured. A+ Protection against Loan Lia'ilit( omesurance coers life for an amount equal to home loan liabilit! as per the home loan schedule. In case of an unfortunate eent of e/pir! of the insured* the outstanding balance amount is paid to the nominees in one lump sum* who ma! then settle the loan liabilit!. B+ Co>er or Terminal Illness

A unique feature of the omesurance



plan is that it pa!s an accelerated

pa!ment of death benefit upon the diagnosis of a terminal illness* where the insured has a medical prognosis of a life e/pectanc! of si/ months or less.

43

his helps to settle the home loan liabilit! should an unforeseen terminal illness occur. C+ Optional Insurance Beneits

o protect customer and his famil! from unforeseen eents* the! can opt for optional insurance benefits as an addition to omesurance base plan. he )ptional Insurance Benefit is aailable onl! with the regular premium plan. Additional premiums should be paid for the term of the optional insurance benefit depending upon the sum insured chosen. Incomesurance<

I%BI &ederal Incomesurance Endowment and ,one! bac# -lan is a plan which is designed for the customers to reach their goals with confidence. he main features of this plan are1 • • • • • • • •

-remiums paid for a limited period :uaranteed annual pa!out ,inimum annual pa!out declared at the beginning Additional annual pa!out is declared each time the premium is paid. Additional annual pa!out is lin#ed with :0 sec interest rates Customers can ta#e periodic pa!ments or accumulate till maturit! "ump sum coer or waier of premium a/ benefits under Sec ;7C and Sec 47D47%

I%BI &ederal IncomesuranceQ Endowment and ,one! Bac# -lan DIncomesuranceQ not onl! gies unmatched transparenc! and fle/ibilit! but there are lots of other features which are inbuilt in the product li#e

44

conenient premium pa!ment options* a/ benefits and double adantage of Endowment and ,one! Bac# plan.

Adantage of Endowment and ,one! Bac# 

a/ Benefits



-remiums waied in case of death



Conenient premium pa!ment options



Complete transparenc!

45

Termsurance<

eramsurance protection plan of I%BI federal offers unique increasing coer option that can automaticall! increase the coer eer! !ear without increasing the premium. ermsuranceSeniors Insurance -lan Customers oer the age of 57 can enroll for this plan till the ma/imum age of ;5. he entr! to the plan is guaranteed without an! questions of the state of the health condition. In the unforeseen eent of demise in the first two !ears of the polic!* 465 of total premiums paid shall be returned. After two !ears* customers are insured for the amount of sum insured for life. he amount of premium and coer remain the same throughout the life of the polic!* e/cept after age =7. At age =7 the polic! gets een better as premiums will stop* but life insurance coer will continue. here are no maturit! benefits. ermsurance -remier Insurance -lan I%BI &ederal ermsurance -remier Insurance -lan* a term insurance plan that gies insured the power and fle/ibilit! to ta#e complete charge of the financial future of their loed ones. ermsurance is designed with a host of benefits and options aimed at satisf!ing needs. It has choice of polic! term* fle/ible premium pa!ment options and lots more. It also allows to create a plan as per insured and his famil!3s needs and ob$ecties* thus offering them a trul! fle/ible protection plan. 46

Termsurance Protection Plan

I%BI &ederal ermsurance  -rotection -lan Dermsurance  comes with three coer options which insured can select on the basis of their requirement. ermsurance is designed with a host of benefits @ options aimed at satisf!ing eer! need. It not onl! allows to customise plan as per indiidual and famil!3s needs* it also comes with a host of benefits li#e conenient insurance coer options* fle/ible premium pa!ment terms* choice of polic! term and lots more fle/ible options.

Major 'eneits o Multiple Co>er options 

,ultiple coer options gie !ou tailor0made protection



&le/ibilit! in the polic! term to suit !our lifestage.



&le/ibilit! in premium pa!ment terms to suit !our wallet.



Attractie discounts to encourage additional coer o

Adantage Women o

igh Sum Insured 'ebate

47



a/ benefits to help !ou grow !our wealth faster

ermsurance :roup "ife -lan he I%BI &ederal ermsurance  :roup "ife -lan is a pure term plan designed to cater to a wide ariet! of formal and informal groups such as the Emplo!er0Emplo!ee groups* ban# 0K depositor2customers groups* customer0 supplier groups* professional and affinit! groups. It is a group term insurance plan that proides basic life insurance protection to the members of the plan. "ife insurance benefit for all members of the plan is proided b! one polic! document that is issued to the polic!holder. he polic!holder ma! differ for different groups. E.g. In the case of a Ban# proiding life insurance coer to their deposit account holders* the Ban# will be the ,aster -olic! older and the deposit account holder2 ban# customer shall be a member of the polic!. Similarl!* for an emplo!er0 emplo!ee group* the emplo!er will be the ,aster -olic! holder and the emplo!ees shall be the members of the polic!. ermsurance :rameen Bachat !ears* 5 !ears and 47 !ears. he customer has the fle/ibilit! of getting the sum assured ranging from 's.

48

5777 to 's. 477777 in the multiples of 's. 4777. I%BI &ederal is also proiding another R:rameen Sura#sha -lan in rural area which is similar to this plan. Loansurance

"oansurance is a cost effectie wa! to ensure that the outstanding debt is settled in the unfortunate eent of death of the insured. his plan proides coer to a person directl! liable for loan repa!ment. here are two coer options aailable under this plan. 'educing Coer (nder the option* the insurance coer reduces as per benefits schedule. he premium amount is computed oer a period of time* ta#ing into account initial loan interest rate* the loan term and outstanding loan amount. "eel Coer his option proides a coer for the sum assured as specified b! the insured and can be to the e/tent to the full agreed loan amount plus accrued interest as chosen b! the insured member. his remains unchanged throughout the coer term. hus een if the loan liabilit! declines oer time* the plan coers is the sum assured throughout the coer time. Microsurance

I%BI &ederal :roup ,icrosurance -lan proides affordable life insurance coer to groups. his plan is e/tremel! useful to micro finance institutions*

49

self help groups and N:)3s to insure the lies of their group members and thus proide securit! to the group member3s families. he plan can also be used for proiding loan protection to the group member3s families. Retiresurance

his is a zero death benefit pension plan* wherein the insured can accumulate a corpus to en$o! pension after retirement. he plan is open for ages between 4;097 !ears* with esting age between 87 and 95 !ears. his plan offers aried inestment options spread between 477 debt to 477 equit! to choose from. &le/ibilit! to reduce future annual premium after completion of one !ear to at least 95 and not less than 's. 47777 here is no switching cost under this plan. he plan also offers ta/ deduction under Sec. ;7C and ta/ free returns under Sec. 47D47%

Financial Inormation<

he total premium earned for the half !ear ended September >7* 6747 was 's.>869 million. he profit after ta/ for the same period is 's.54> million. here hae been 4>6 death claims reported during the period out of which 8> claims were settled and 4= claims were re$ected.

Mar?eting Campaigns<

I%BI &ederal "ife recentl! launched teleision commercials focusing on its frontline products li#e Wealthsurance and Incomesurance. he campaign taglines are Risne 'hi suna ?hareed li(a0

and R&uaranteed Income

"i Bha>isha>ani0. Whereas the first adertisement reflects that the product

50

is so great that whoeer hears about it* bu!s it instantl!* the second adertisement promises to be clear and transparent on the issue of returns in the inestment product. I%BI &ederal has also introduced two animation characters b! the name of )a pp ( an d Luc?( to promote the brand. o create an awareness of the products of the organization among the households* a painting competition /Bright Spar?s0 was conducted and certificates were awarded to all participants.

COMP%TITIO# A#AL*SIS

I%BI &E%E'A" "I&E INS('ANCE Co. "td. is in a highl! competitie segment i.e.* insurance sector the! are haing large number of rial companies fighting along with them in ta#ing control of the industr!.

•

Threat o intense segment ri>alr(

he ma$or plus point for I%BI &E%E'A" "I&E INS('ANCE Co. "td. is the brand alue of its partners. he competition in this mar#et is a er! difficult or tough. he mar#et condition is oligopol! where a few number of big competitors are proiding identical product and serices differing onl! in qualit! of them. Each competitor has their own trademar# attribute. As we #now "IC3s attribute is their hold in rural mar#et. But when we sa! about population growth* economic growth* or goernment policies insurance segment is er! attractie because onl! 65 insurable person are insured secondl! ;7 population are under age of 85.

51

•

Threat o ne@ entrance

%ue to aggressie competition and high entr! e/it barrier* this is not attractie segment for new pla!er. &or entering in insurance field* mandator! capital is 477 crores. Secondl!* foreign sta#e limited with 6?* third Indian compan! hae no e/perience in insurance business. E/it barrier are also er! high because* no compan! can leae mar#et after entering due to loss because firstl!* 477 crores will be lost secondl!* their compensation Dcustomer or other compan! will be er! high or more than deposited mone!. So in long run* compan! will tr! to less their business but the! will not leae mar#et. So this is good factor for I%BI &E%E'A" "I&E INS('ANCE Co. "td. Because* where entr! or e/it barrier are high* profit potential are also high.

Threat o su'stitute product his is not attractie mar#et in iew of substitute goods because there is •

man! substitutes in mar#et but onl! serice st!le is different. %ifferent insurance compan! proides at least same product but presentation is different. In case of lower substitute Dmeans inestment purpose man! product in India for e/ample* share* mutual fund* fi/ed deposit. Substitute place a limit on price and on profit.

•

Threat o 'u(erKs gro@ing po@er

In India bu!er3s growing power are increasing because the! hae more concentrated or organized towards mar#et. :oernment has established

52

insurance regulator DI'%A in India for growing bu!er3s barging power. %ue to lowest switching* bu!ers are er! price sensitie and bu!ers hae man! sources for #nowing about different compan! product. %ue to education bu!er can anal!sis that* which product is good for him. So due to growing bu!er3s power this segment is not good for new pla!er.

•

Threat o supplierKs gro@ing po@er

%ue to oligopol! mar#et condition insurance compan! cannot raise price but the! can increase their profit from selling more policies in mar#et. In India* suppl!0growing power Dagent* bro#er* bancassurance are growing due to lot of compan! aailabilit! in I%BI &ederal "ife Insurance Co. "td.

53

IC

OR&A#IATIO# STR!CT!R%

CHAIRMAN

CEO

ZONAL MANAGER

REGIONAL MANAGER

AREA MANAGER

BRANCH MANAGER

54

MARETING

SALES MANAGER

INSURANCE ADVISOR

ADMINISTRAT ION

BRANCH SUPERVISIOR

ASISTANT BRANCH SUPERVISOR

CUSTOMER SUPPORT EXECUTIVE

CUSTOMER SUPPORT REPRESENTATIVE

55

PADP

IC

Departments of the company: )uman Resource Department The success o an organiation depends upon theualit( o its @or? orce+ )R department is responsi'le or the recruitment and selection o emplo(ees 'ased on a'ilit(1 s?ills and ualiication+ The )R department is also responsi'le o certain acti>ities concerned @ith the emplo(ees+ Objectives of Human Resource Department:

 

To maintain a health( relationship and act as a mediator 'et@een the emplo(er and emplo(ees+ To recruit and select prospecti>e candidate1 arrange or an inter>ie@ and ill >acancies in the concerned department+



To ta?e care o the acti>ities done '( the other departments+



Personnel department is responsi'le or all the good and 'ad @or?s done '( the @or?ers+



)R department has to maintain the good relationship @ith all the other departments+

Recruitment<



It handles the recruitment and the appointment o the reuired sta or >arious department o an organiation+

Induction<



Later the induction programmed o the emplo(ees @ill 'e arranged or to introduce all the department o compan( '( the la'or oicer as @ell as the concerned department head+ Thereore1 the emplo(ees can come in terms @ith the o'jecti>es o the compan( a nd his participation in ulillment o the compan( o'jecti>es considering himsel as an essential ingredient o the compan(+

Training<

56



This is also one o the important unctions o the department1 ?eeping in >ie@ to update hisher ?no@ledge and to increase hisher eicienc(1 so ater sometime such programs are arranged '( this department and emplo(ees o the compan( are ?ept in touch @ith the least @a(s o the morale 'ooster and ondness to@ards the compan( is injected in the 'lood o emplo(ees+

On the o' Training< 

%mplo(ees are couched and instructed '( training instructions1 the( learn the jo' '( personal o'ser>ation and practice+ It is learning '( doing+

)R Policies H Procedures

he policies and procedures laid down here philosoph!

promote the

of the compan! with regard to standards of e/cellence* erms of

emplo!ment. Emplo!ee deelopment and emplo!ee serices. he ob$ectie of this section is to inform !ou of the polices related to rael* compensation*,edi claim* and ransfers etc. We recommend that !ou ma#e !ourself aware of the entitlements Compensation Components

he compensation that is gien in !our appointment letter comprises of base

Salar!* &C- D&le/ible Compensation -lan* and Emplo!ers

contribution to proident &und and Emplo!er s contribution to :ratuit!. Base salar! is as per compan! polic! is not fle/ible amount since a lot of statutor! and non0statutor! benefits are lin#ed to the base salar!.

Statutor( Beneits

he -roident &und and :ratuit! are goerned b! Acts of "aw and are mandator!.

57

Pro>ident Fund

he -roident &und is a one of the mandator! schemes established b! the goernment of India to proide social securit! to the serice class. It is a scheme* which is bearing on the emplo!er and the staff member and proides securit! to the staff member and 2 or his dependants on retirement* disabilit! or death. &ratuit(

he :ratuit! &und is regulated b! the gratuit! fund Act* 4=96. At present* the following benefit is aailable. All -ermanent staff members of the compan!* who hae completed fie !ears continuous serice* are eligible for pa!ment of gratuit! at the time of retirement.

FI#A#C% D%PARTM%#T C)ART

Financial head

Fund Manager

Portolio Manager

Sta

Financing and Accounting Department

58

Accounting Department< In thissection accounts are maintained+ Accounts are maintained in traditional methods onl(+ This is ledger+ 

The main unctions are recording all the accounts including emplo(eesK and @or?ersK salar( and their PF etc+



It records all the pa(ments o the compan(+



It records all the transactions o the compan(+

Accounting process< 

Recording the transactions<



Classi(ing the transactions



Summariing the transactions



Anal(ing and interpreting the results+

Finance Department

-lanning @ ,IS K monitoring of organization performance 0 sales* qualit!* rends0 on a continuous basis. With insights into ,IS* socio economic factors @ competitor behaioral patterns* we contribute to sales targets* strategic initiaties pro$ected branches* and pro$ected wor# force the road ahead. Internal Audit K 'is# ,anagement* Business Continuit! -lan* Best -ractices* polic! manuals are not mere words on paper adhere to them. We ensure T-ractice what !ou preach.

Corporate

planning

and

he Accounts function

,IS

proide

includes preparation

feedbac#

on

business

and maintenance of financial records*

&unds management* and e/pens e processing and treasur! operat ions.

59

strategies.

Compliance

ensures that eer! action is within the regulator! framewor#. his includes reiewing compliance requirements and supporting the ethical framewor# of 'I". Internal audit proides assurance to the management oer the organizations3 control framewor# and includes process ris# management*

information securit! assessment and

business

continuit! assessment.

MAR"%TI#& D%PARTM%#T

,ar#eting

at

I%BI &E%E'A"

"ife

Insurance coers an arra!

of

actiities0

adertising* branding* channel support* direct and alliance mar#eting and corporate communication. he people in each of these sub0functions perform a unique $ob. he adertising and branding section has schedules of adertising campaigns and a detailed on what BA"IC corporate identit! stands for* wh! it3s important to be consistent and guidelines that must be adhered to. his section also details the branding across training* adisor and adertising collaterals with references. ,ar#et deelopment has lucid presentations about our products and how the! compare to those of competition. ice H Operation

60

he operation department the wor# process between the customer and the compan! to ensure consistent and qualit! serice to the customer. o streamline the )perations* the operation department interfaces between the claims and the agents* the branches and underwriters* and manages wor# processes +

Inormation Technolog( Department

he I function at BA"IC is committed to enable business through the use of technolog!. It is segmented into 8 groups to enable highest leels of delier! to the customers1 "ife Asia Solutions :roup 0 Web that proides real K time information to customers and is responsible for customer relationship management* I Architecture @ corporate Solutions :roup is in charge of deeloping and maintaining a blueprint for the I architecture for the enterprises as a whole. his team wor#s as an in house '@% Solutions :roup* e/ploring new technological initiaties and also caters to information needs of corporate functions in the organization.

3+ S"ILLS

It is a more reputed insurance compan!* as it is proiding financial solution of where to inest* how to inest and number of products with haing more benefits to inestors. It has reputed customers who are lo!al to the organization. he serice gien to the customers are accomplished as per their requirements. &inancial serices generall! do mass supporting serices are rendered to all t!pes Dclasses of customers. ,ore oer the people feel their tas# is in safe hands of the industr!. he organization is haing arious capabilities oer the competitors. hese s#ills are unique from the competitors of I%BI &E%E'A".

61

he s#ills are broadl! categorized as follows10 ,ar#et #nowledge* anal!tical s#ills* Serices* 'esearch* -ersonal2administration* Soft s#ills* Supporting* ,edical* &inance* Information relations* others. ,ost of the emplo!ees at I%BI &E%E'A" are recruited from management and technical streams.

4+ ST*L%

I%BI &E%E'A" follows participatie management* where in each ma$or decision regarding the compan! is ta#en in tip down fashion and other decision li#e targets and growth aspects I%BI &E%E'A" follows bottom up st!le. We thin# it is important to distinguish between the basic personalit! of a top management team and the wa! the team comes across to the organization. )rganization ma! listen to what managers sa! but the! beliee what managers do. Not words* but pattern of action is decisie. he power of st!le then is essentiall! manageable. )ne aspect of st!le is s!mbolic behaior. !picall! hae more people on board who understand e/ploration are hae headed e/ploration department. !picall! the! fund e/ploration more consistentl!.

5+ STRAT%&*

B! Rstrateg! we mean those actions that a compan! plans in response to or anticipation of changes in its customers* its competitors. Strateg! is the wa! A Compan! aims to improe its position is0U0is competition perhaps through low cost production or delier!* perhaps b! proiding better alue to the customer* perhaps b! achieing sales and serice dominance. it is* or ought to be* an organization wa! of sa!ing1 here is how we will create unique alue.

62

he I%BI &E%E'A" has set of ob$ecties* strategies to achiee the ob$ectie* the course of action to be ta#en to achiee the ob$ectie and guidelines for the course of action. I%BI &E%E'A" adopts low pricing strateg! to generate huge returns and good mar#et share in the industr!* since it has well e/panded its business all oer IN%IA. I%BI &E%E'A" charges minimal to its clients for the serices. It proides more benefits to customers compared to its competitor. ence it is #nown for the good pricing strateg! in the industr!.

6+ S*ST%M

he I%BI &E%E'A" has arious techniques to control this procedure as s!stem li#e to improe the bac# office targets b! giing addition support. Inormation s(stem< the implementation of computers has made information flow fast

and reliable. he information is ersatile. Since I%BI &E%E'A" has good bac#up s!stem. Recruitment1 training and de>elopment s(stem

'ecruitment process starts with the identification of the acancies b! the department head of the respectie department. A form requesting for the human resource is sent from the department to '%.

9+ STAFF

Staff Din the sense of people* not line2staff is often treated in one of two wa!s. At the hard end of the spectrum* we tal# of appraisal s!stems* pa! scales* formal training program and the li#e. At the soft end* we tal# about morale* attitudes* motiation and behaior.

63

he I%BI &E%E'A" is in the course of cutting down the cost of serice. If it starts recruiting* the selection is done based on the education qualification first class degree. he arious training program to the emplo!ees are ta#en li#e refresher course* $ob rotation and $ob training. he promotion in the organization is ta#en place based upon the serice* seniorit! and educational qualification. he performance appraisal is also ta#en as a basis for promotion so officer3s staff ma#es it. Staffing is a process of acquiring human resources for the organization and assuring that the! hae the potential to achieement of the organizational goal.Staffing necessit! for allotting the duties and responsibilit! among the emplo!ees.

Duties and responsi'ilities o Manger< •

%etermine the ob$ecties or goals of the organization.

•

&raming policies and ma#ing plans to achiee the ob$ecties.

•

Setting up organizational frame wor#.

•

•

Assembling the resources of mone!* man* materials* machines and methods. E/ercising effectie control.

•

-roiding oerall leadership.

•

%uties and responsibilities of staff towards the organization.

•

o maintain the discipline in the organization.

•

o obe! the order of the superisor.

•

o wor# effectiel! and efficientl! in the organization.

•

o maintain good relations with all the wor#ers in the organization.

MC"I#S%* :,S MOD%L

64

The :,s model @ith reerence to IDBI F%D%RAL lie insurance<

he 9s model are a frame wor# for anal! zing organizations and their effec tieness. It loo#s at seen #e! elements that ma#e the organization successful* or notF a structureF a s!stem* strateg!* s#ills* staff* shared alues. Consultants at ,c+inse!s and compan! deeloped b! 9s models in the late 4=97s to help managers address the difficulties of the organization change. he model shows that organizational immune s!stem and the man! inter connected ariables inoled ma#e change comple/* and that an effectie change effort must address man! of these issues simultaneousl!. he 9s model is a tool for managerial anal!sis and action that proides structure with which to consider a compan! as whole* so that the organizational problems ma! be diagnosed and a strateg! ma! be deeloped and implemented.

65

he seen diagrams illustrates the multiplicit! interconnectedness of elements that organization3s abilit! to change.

he theor! helped to managers thin#i ng about how

compan! could be improed. It sa!s that it is not $ust a matter of deising a new strateg! and following it through. Nor is it a matter of sett ing a new s!stem and lett ing them generate improementsV o be effectie* !our organization must hae degree of fit or internal alignment among all the 9s. Each S must be cons istent with the reinforcement of the other T S3. All TS3 are interrelated so a change in one has a ripple effect on all others. It is impossible to ma#e progress on one without ma#ing progress on all. hus* to improe the organization !ou hae to master s!stem thin#ing and pa! attention to all of the seen elements at the same time. here is no start ing point or impli ed hierarch! different factors ma! drie the business in an! one organization.

66

S$OT A#AL *SIS< E!"#$%!&'!()* S+)!

I!('$!)* A!)*,-#-

E.('$!)* A!)*,-#-

O%$(!#(#'-

/')!'--'-

Strength

hreats

A SW ) an al !si s is a st ra te gi c pl an ni ng to ol us ed to e al ua te th e strengths* wea#ness* opportunities and threats inoled in a pro$ect or in a business or in an ! other situation requir ing a decision. It inoles mo ni to ri ng th e ma r# et in g en i ro nm en t in te rn al an d e/ te rn al to th e com pan !. h e te ch ni que is cr edi te d to Al ber t u mph re! * who le d a researc h pro$ect at

Stanfor d (niersit! in the

4=?7s and 4=97s

using data

from the fortune 577 companies. 

Strengths1 attribute of the organization that are helpful to achieing the ob$ecties.

67



Wea# nes s1 at tr ib ute s of th e or ga ni zat io n th os e ar e har mf ul to achieing the ob$ecties.



)pportunities1 e/ternal conditions those are helpful to achieing the ob$ecties.



hre ats 1 e/t ern al cond iti ons thos e are harm ful in achi ein g the ob$ecties.

he aim of an! SW) anal!sis is to isolate the #e! enironmental factors that are important to the plans of the organization. SW) groups #e! pieces of infor mation into two mai n categories1 

Internal factors1 he strengths and wea#ness internal to the organization* i.e. its strategies and its relation to its competition.



E/ternal factors1 the opportunities and threats presented b! the e/ternal enironment and completion.

STR%#&)TS

4. Strong Brand Image 6. %edicated sales team >. Malue added serices. 8. I%BI &E%E'A" "ife Insurance is the first large pt.sector life insurance co. with a pan India networ# and strong retail focus to declare substantial profits for the financial !ear. 5. I%BI &E%E'A" "ife is most profitable pt.life insurer for last !ear. Compan! has achieed profit of more than 4777 crore last !ear.

68

?. "argest distribution networ# to reach the customers across the countr! with 6* 4>*777 agents* =77 offices in ;87 towns* 677 corporate agents @ Banc assurance partners. 9. "ife insurance industr! is a rapid growing and a nobler serice industr!. $%A"#%SS%S he! hae to compete with the :oernment Companies li#e "IC and (I who has been er! established in this field. So the! will hae to attain the same trust of the public as it is in case of "IC and (I. OPPORT!#ITI%S

4. "ife insurance has captured its mere45 K 67 growth therefore a wide open untapped mar#et is open to the compan! to deelop* grow and measure its success.

6. Still the numbers of companies are few and compan! has eer! capabilit! to grow and forward its performance areas to the widest.

>. %istinguishable product. T)R%ATS

4. -eople are hesitant to inest and put their hard earned mone! to the priate life insurance compan! with the fear of getting lost.

6. Belief towards "IC as it is a goernment corporation phobia is continue to surmount the people of India despite lots of flaws and deelopment and liberalization of life insurance.

>. Alternatie financial serices such as mutual fund* ban#ing serices* share and securities also pose problems and threats to the wor#ing of the life insurance sector.

69

8. Illiterac! and unemplo!ment also pose threat.

6+ 'ising real estate industr! also pose threat as people are inesting a bul# of their

mone! oer to that industr!.

9+ -resence of er! strong competitors.

70

Customer Relationship Management

Customer 'elationship ,anagement focuses on acquiring* deeloping and creating satisfied lo!al customerF achieing profitable growthF and creating economic alue in compan!3s brand. Customer 'elationship ,anagement stries to improe the customer3s e/perience of how the! interact with the compan! and produce high customer equit! .the more lo!al customer* the higher are the customer equit!.

'ecentl! C', has ta#en a center stage in the business world with businesses concentrating on saing mone! and increasing profits b! redefining internal processes and proce dures. It costs a compan! dram aticall! less to retain and grow an e/isting client* than it does to court new ones. It is said that RIt is seen times more e/pensie to acquire a new customer than to #eep an e/isting one ”, therefore the alue of customer information and management should neer be underestimated

Customer euit( comprises o three dri>es •

Malue equit!

•

Brand equit!

•

'elationship equit!

71

CRM DCustomer 'elationship ,anagement is something that is not restricted to an!

countr! or culture. Whereer customers are there* business cannot afford to #eep them unhapp!F and that is where C', comes in as a strong requirement.

In India* the trend is positie. When compared to about twent! !ears ago * people hae more choice and eer! compan! #nows it can3t ta#e customer for granted .,a! be the moement is slow *but we see a stead! progress towards an increased focus on the customer rather than merel! on the products and price . oda!3s era is of serice because customers are ultimate base line for an! business to sustain in this competitatie world &or e/ample1 Ban#s started proiding Tgold3* Tsiler3 cards to its alued customer* depending on their needs the customer get faster serices. he concept of C', is relatiel! simple and familiar to insurers. he two points of the concept are1 (nderstand !our customersH unique requirements. •

•

)ffer them the serices and products oer their lifetime that will maintain or increase their profitabilit! and retain them as !our customers.

hese are the some supporting strategies that implement these concepts to !ield significantl! greater results and a true competitie adantage. hese supporting strategies generall! fall into three groupings1 anal!tical* mar#eting and operational. he anal!tical path focuses on mining the data !ou hae on !our e/isting customers* and marr!ing that data with e/ternal data when possible to deelop a scoring inde/. his inde/ can then be reliabl! applied to indiidual customers to indicate their leel of profitabilit!* tendenc! to remain a customer* and propensit! to acquire other products and serices.

72

he current trends in corm followed b! insurance companies

While the C', mar#et in India is still nascent* bigger pla!ers such as ICICI -rudential "ife Insurance Compan! are adopting it in a big wa!. he compan! was earlier using :old ,ines Da sales and mar#eting tool and EA Dan operational C', solution from &ront 'ange Solutions. "ast !ear it too# a decision to inest in C,> from era data and SAS3s statistical tool for BI. Anil i#oo* head0I at ICICI -rudential "ife Insurance Compan! sa!s* RAs a forward loo#ing compan!* we see C', pla!ing a significant role in acquiring new customers. C', lets us obtain granular details about our customers* helping us to design better products* improe serice leels and reduce operational costs. C', has helped ICICI -rudential "ife capture fie lac# customers through effectie eent0based mar#eting and lead trac#ing to cross0 and up0sell products.

Business dri>ers or CRM ,argins are under pressure1 A couple of !ears ago* "IC dominated the insurance mar#et with the help of its sales force and channels and margins were reasonabl! high. oda!* there are close to 67 companies offering both life and general insurance products. All of them hae equall! strong international and local partnersF all are focusing upon similar geographies and target audiences. he new firms selling life insurance and non0 life insurance pensions* insurance as saing* etcX hae failed to emulate the "IC model because margins are getting squeezed. here are seeral pain areas that new insurance firms faceYacquiring new customers* retaining them* cross0selling products and controlling rising costs while proiding comprehensie support. Insurers hae added a ariet! of products and serices to their #itt!. hese range from insurance as an inestment option to pension plans. he! target the !ounger generation in the 67 to >7 !ears age group. Rhe conergence of four factorsYprotection* saing Dinestment option* loans and pensionYhae compelled insurance companies to align with ban#s in reaching out to a larger audience* sa!s i#oo. his trend has led to anotherYinsurance companies are $oining hands with ban#s b! becoming channel 73

partners for insurance. ata AI: has a mar#eting alliance with SBC* Birla Sun "ife has one with Citiban# and I%BI and "IC all! with Corporation Ban#* while +ota# "ife Insurance has an arrangement with +ota# Ban#. his strateg! helps insurance firms increase their footprint to coer a larger part of the customer base in the 670>7 !ears demographic. C', helps connect a ban#3s high net worth customers with insurance firms.

74

$here to 'eginNoperational CRM or anal(tical CRM= he choice between operational and anal!tical C', as a starting point depends upon the insurer3s needs. :artner sa!s that insurance companies with multiple financial products and a big customer base* such as integrated insurance solution proiders* will leerage their customer base to cross0 and up0sell different financial products* including insurance. Such proiders will benefit from adopting anal!tical C',. ,ar#et segmentation* campaign management and data mining applications will benefit them in man! wa!s. •

Call center te/t mining1 his tool can help improe the customer e/perience b! resoling complaints rapidl!. Insurers are using these tools to mine te/t from call center transcripts to identif! issues faced b! customers. e/t mining tools also help detect and capture other useful pieces of information around a customer3s life stage* financial needs and product interest s. hese can be used to generate leads and trigger cross0selling. oweer* to be full! effectie* customer serice representaties must be trained to probe for information that will help in cross selling during the te/t0mining phase. e/t mining tools are leading edge toda!* but are predicted to ta#e off quic#l!.

•

Eent0triggering and profiling1 RInsurers can use eent triggers to generate leads that can be acted upon quic#l!* usuall! within 68 hours* sa!s i#oo. Eent0 triggering tools monitor incoming transaction and contact data in near0real0time to recognize changes in a customer3s behaior or profile to trigger actions or alerts.

"ead management gets sophisticated1 )ften the abilit! of an insurer to generate leads b! means of eent0triggering* re0engineered touch points and cross line0of0business referral can outstrip their abilit! to manage said leads. In such a situation* though the number of leads generated rises* the conersion rate does not. It ma! een drop. C', can help proide sales representaties with a mechanism to prioritize and manage leads.

75

Changing customer 'eha>ior in insurance 'u(ing In insurance bu!ing* most customers would probabl! describe their leel of understanding of insurance contracts in the aboe manner. Customers #now generall! what a polic! coersF the! also #now that there are seeral fine prints in insurance contracts* which the! do not #now* or perhaps care to #now* at the time of bu!ing. And the! also seem to generall! conclude that when it comes to ma#ing a claim under an insurance polic!* there could be seeral issues of which the! are $ust unaware at the time of bu!ing the polic! in the first place.

Changing epectations A remar#able trend in the insurance industr! in the last three !ears is the rapid change in the #nowledge leel as well as e/pectations of the customers. A stud! conducted last !ear b! &orte* a collaboratie effort between &ICCI and IN: M!s!a Insurance Co. about the consumer behaior in the pre and post liberalization da!s of the industr! had reealed stunning changes in consumer e/pectations. It loo#s as though the docile* uninformed* insurance consumer has suddenl! been transformed into an aggressie and highl! demanding species. While the fresh air of competition in eer! sector of the econom! bring s in ma$or changes in consumer e/pectations Dwitness the sea change in the attitude of automobile bu!ers in India in the last fie !ears* the insurance industr! has witnessed a few unique aspects* such as regulation0inspired efforts to educate insurance bu!ers* and a ast change in the s#ills and capabilities of the intermediaries inoled in distribution.

Moti>ating actors In respect of life insurance* potential bu!ers are drien to bu!ing a polic! for one or more of three ma$or reasons1 securit! of the mone! inested* saing for one or more

76

specific purposes* and the aailabilit! of ta/ benefit. Customers are increasingl! #nown to place less I%BI &ederal on the ta/ benefit factor* and stress more on the securit! aspect and the end0use ob$ectie. he challenge of the insurance companies is to address the motiating factors imaginatiel! and come up with genuine solutions. a#e for e/ample* the consumer3s ob$ectie of ta#ing a polic! to sae mone! for higher education of a child. his has been a driing force in the sale of new insurance contracts in seeral other countries too* notabl! in Asia. A potential bu!er primaril! e/pects that the saing should be a painless process and that the mone! saed should be absolutel! safe. he challenge is to proide not onl! conenient pa!ment options* but also mechanisms that could offer some measure of protection and relief to the customer if he is forced to disrupt the pa!ment arrangement for unforeseen reasons. )n the issue of the consumers3 perception of securit! of the mone! inested* there are two important aspects. )ne is how the features of the insurance contract are put across to the bu!er Dwhether it is a unit0lin#ed polic! or endowment oriented. he second is how to address more effectiel! the question about the dependabilit! of the new generation companies that potential new insurance bu!ers raise during sales calls especiall! outside metros and in small towns Dreferred to in publicit! $argon as bu!ers in the SEC B and C categories. Both insurance companies and the 'egulator need to address this behaioral challenge more actiel!.

ConsumerKs eperience here has been a ast change in the approach of the insurance agent from the pre0 liberalization da!s. While the agent in the past established informal contacts with potential bu!ers and often depended on referrals from friends and famil! members* the new age companies insist on a professional* and often aggressie stance on the part of the

77

sales staff. Customer e/pectations in this regard reole around two #e! aspects1 first* whether the customer is getting truthful adice from the agent* or if he is pushing a product that !ields him the highest commission rate. Inariabl!* the customers toda! e/pect the insurance agent Dand other intermediaries such as the banc assurance sales staff to proide a read! comparison of competitors3 products and how the product the agent is suggesting is superior to the others. ow far is the need0based anal!sis of insurance requirement* that the new age sales staff are trained to offer* found to be releant and useful to potential insurance bu!ersV he answer aries from the metro cities and small towns. oweer outside metro cities* customers tend to ta#e a clear iew that saing0oriented policies are more needed. here is also mar#ed reluctance to disclose the true personal financial status and the corresponding insurance needs to insurance salespersons. he second aspect of customers3 perception about the new generation of insurance agents is the leel of continuing commitment of the agent to arrange post0sale serice. -otential insurance bu!ers are unsure that the! would continue to deal with the same agent who sold the polic! throughout the term. he! would tend to place more I%BI &ederal on the compan!3s general promises of serice and commitment. his is an important message for the insurance companies. As insurance customers increasingl! ma#e arrangements to pa! periodical premiums directl! through the electronic medium* or though automatic transfers from their ban# accounts* thereb! b!passing the need for regular post0sale serice b! the agents* customers would tend to place more I%BI &ederal on the direct standard of serice from the compan! concerned. Instances of customers requiring agents to arrange for loans against their policies* or change nominations etc. are rare. herefor e companies need to gear themseles to proide high serice standards directl!.

78

Premium shopping Is pricing or the premium rate for a polic!* a deciding factor for bu!ing insuranceV It is indeed so in a price sensitie mar#et such as ours. In seeral forums* customers hae oiced the general feeling that as insurance products become more comple/* and the! get bundled with seeral riders* it is becoming impossible to ma#e price comparisons between different companies. An increasingl! larger segment of customers now questions wh! the premium rate should be the same for a polic! if bought direct from the compan! oer Internet* or through a channel considered simpler* such as the banc assurance channel. here is logic in the insurance companies passing on the cost saing to customers in such cases. It is time the 'egulator seriousl! considered the customer e/pectations of differential premium rates for the same polic! bought through different channels and allowed the practice. It should therefore be conceiable to offer premium rebate to insurance bu!ers who consciousl! decide to approach the compan! directl! for bu!ing a polic! Dafter presumabl! ta#ing the trouble of educating themseles about the product features and other aspects* and choose to deal with the compan! directl! for future sericing needs.

)igh epectations )ne aspect of customer serice from new age insurance companies that a remains to be tested widel! is the claim pa!ment record. While consumers seem to be satisfied that the surial benefits under a life insurance polic! would get paid rather promptl! from the tech0sa! new companies* obiating the need for interlocution b! the insurance agent* insurance bu!ers are not !et coninced about hassle0free pa!ment in the eent of a claim* whether under a life polic! or a general insurance polic!. his is especiall! so in respect of rider benefits such as critical illness or hospitalization benefits. 79

he leel of consumer s#epticism on claim pa!ment is mar#edl! high in respect of non0life insurance products* such as ouseholders3 -ac#age or ,edicaid policies. here is considerable wor# to be done to boost the leel of confidence both b! insurance companies and the 'egulator. B! the time a compan! completes the deelopment of a strateg! and ma#es inestments to pursue the strateg!* the opportunit! often ceases to e/ist. It is therefore important that the new age insurance companies become T#inetic3 enterprises* which can ta#e adantage of unpredictable customer demands and une/pected mar#et eents immediatel!. his is astl! releant for the Indian mar#et where the insurance consumers are rapidl! coming of age.

80

Rationale or the Project

I%BI &ederal "ife Insurance Compan! "imited is a part of I%BI &ederal Capital "td. of the I%BI &ederal 0 ANI" %I'(BAI A,BANI :roup. I%BI &ederal Capital is one of India3s leading priate sector financial serices compani es* and ran#s among the top > priate sector financial serices and ban#ing companies* in terms of net worth. I%BI &ederal Capital has interests in asset management and mutual funds* stoc# bro#ing* life and general insurance* proprietar! inestments* priate equit! and other actiities in financial serices.
81

Title o the Project

“Customer Relationship Management in IDBI Federal Lie Insurance”

OB%CTI.%S

4. o stud! the comp an!3s procedures conducted b! the compan ! for retai ning the customers.

6. o stud! the current mar#et trends in Customer 'elationship ,anagement.

>. o stud! the compa nies efforts in maintaining and motiating the adis ors for retaining an e/isting customer and building a new customer

82

SCOP% OF T)% ST!D*

o understand the relations maintained b! the I%BI &ederal Insurance Compan! with its customers. Eer increasing competition* low interest rates* and declining margins hae drien firms to discoer the customer as the basic element in their business equation Insurance as a sector has shown tremendous growth in recent !ears. -eople now are becoming more secured in terms of their life as well as their mone!. he! want a profitable benefit out of their inestment. here is a need to #now the companies3 efforts towards conincing the customer about their product and to #now how to create lo!al customers. Insurance happens to be a mega opportunit! in India. It3s a business growing at the rate of 45067 per cent annuall! and presentl! is of the order of 's 857 billion.

83

R%S%ARC) M%T)ODOLO&* he research based will be %escriptie 'esearch.

T,' % )() 4.-rimar! data 6.Secondar! data Primar( data

he primar! or the first hand data will be collected with the help of handing out the questionnaire to the customers @emplo!ees. Secondar( data

he ma$or source of secondar! or supporting data will be internet . (sing this data measurement technique* information was collected b! personal interiews. Secondar! data was collected through compan! websites* discussions with compan! guide. he collected data was processed through S.-.S.S. -ac#age.

Sampling Design

he research was mainl! opted on customer3s sure!* adiser3s sure! as well as sales officer3s sure!. he sample selected for sure! was stratified sample. Sample size is 57 Customers* 47 Sales officers and 57 adisers.

84

S)&*' C)$)+('$

'espondents are sales officers* and e/isting customers of I%BI &ederal insurance and the adisers.

S)&*#! P*)! For Customers

Sampling unit

1 Indiiduals.

Sampling ,ethod

1 Non -robabilit!* Conenience Sampling.

Sampling Size

1 57 Customers.

For sales oicers

Sampling unit

1 47 Sales officers

For Ad>isers

Sampling unit

1 Adisors .

Sampling ,ethod

1 Non -robabilit!* Conenience Sampling

Sampling Size

1 57 Adisers.

Sampling -lan

1 uestionnaires.

S)&*' A$')

 LUCNO/

85

Tools and Techniue o Data Collection Personal Inter>ie@s

Where customers* sales officers and adisers were interiewed personall! that face to face interaction were done.

uestionnaire1

It is a s!stematic designed questionnaire is used for collecting primar! data. hese data are used for further descriptie research.

86

able 41 Do (ou agree that IDBI Federal insurance >ariet( o products .

Frequency 30

Percent 60.0

agree

17

34.0

34.0

normal

3

6.0

6.0

50

100.0

100.0

strongly agree

Total

Valid Percent 60.0

Cumulatie Percent 60.0 94.0 100.0

Figure< 2 Do (ou agree that IDBI Federal insurance >ariet( oproducts

normal 6.0!

agree 34.0! strongly agree 60.0!

Findings &rom the 57 respondents sure!ed

?7 Customers are strongl! agreed that I%BI &ederal hae ariet! of products.

87

>8 Customers are agree that I%BI &ederal has ariet! of products. ? Customers feel that I%BI &ederal has Neutral of products. Ta'le #o< 3+ Did (ou get suicient inormation a'out the product @hile purchasing

yes

Frequency 37

no Total

Percent 74.0

Valid Percent 74.0

13

"6.0

"6.0

50

100.0

100.0

Cumulatie Percent 74.0 100.0

Figure< 3+ Did (ou get suicient inormation a'out the product @hile purchasing

no "6.0!

yes 74.0!

Findings

&rom the 57 respondents sure!ed 98 respondents sa! that the! got sufficient information about product while purchasing.

88

6? respondents sa! that the! did not got sufficient information about product while purchasing

Ta'le< 4+ I no the Reasons are

com$le%ity o& $roducts

Frequenc y 1"

Percent "4.0

9 "1

less in&ormation gien 'y adisor(sales o&&icer Total

ValidPercent 57.1

Cumulatie Percent 57.1

1#.0

4".9

100.0

4".0

100.0

Figure< 4+ I no the Reasons are

less in&ormation gi 1#.0!

)issing 5#.0! o& $roduc "4.0!

Findings

&rom the 57 respondents sure!ed 68 respondents sa! that because comple/it! of the product

89

4; respondents sa! that less information gien

Ta'le< 5+ Does (our need and product are matching

&ully matc*ed

Frequency "7

Percent 54.0

"0

40.0

40.0

3

6.0

6.0

100.0

100.0

$artly matc*ed normal Total

Figure< 5

50

Valid Percent 54.0

Cumulatie Percent 54.0

Does (our need and product are matching

normal 6.0!

$artly matc*ed &ully matc*ed

40.0!

54.0!

Findings

&rom the 57 respondents sure!ed 58 respondents sa! that* their need and product full! matched 90

94.0 100.0

87 respondents sa! that* their need and product partl! matched ? respondents sa! that their need and product are neutral Ta'le< 6+ how much are you motivated by advisor ?(advisor) * how much are you motivated by sales officer?(sales officer)) Crosstabulation Count *o+ muc* are you motiated 'ysales o&&icer,-sales o&&icer

*o+ muc* are you motiated 'y adisor ,-adisor

*ig*ly motiated

*ig*ly motiated 15

motiated 4

Total 19

19

6

"5

3

3

6

37

13

50

motiated not at all

Total

Figure< 6+ cross ta's "0 19

15

10

6 t n u o C

*o+ muc* are you mo t

4 3

3

0

*ig*ly motiated motiated

*ig*ly motiated

motiated

not at all

*o+ muc* are you mo tiated 'y adi sor ,- adi sor

)ut of the total sample most of the customer are highl! motiated b! the sales officer

91

Ta'le 9< $hich are the ser>ices (ou recei>e rom the ad>isor

Cumulatie in&ormation o& $remium date reminding in&ormation o& ne+ $olicies

Frequency "7

Percent 54.0

Valid Percent 54.0

17

34.0

34.0

##.0

6

1".0

1".0

100.0

50

100.0

100.0

*el$ in soling t*e dou'ts Total

Percent 54.0

Figure< 9+ $hich are the ser>ices (ou recei>e rom the ad>isor

*el$ in soling t*e 1".0!

in&ormation o& $remi &ormation o& ne+ $

54.0!

34.0!

Findings

&rom the 57 respondents sure!ed

92

58 respondents sa! that the! got information about the premium >8 respondents sa! that their need and product partl! matched 46 respondents sa! that their need and product are neutral Ta'le< :+ )a>e (ou tried to understand needs o the customers

yes

Frequency 31

Percent 6".0

Valid Percent 6".0

no

19

3#.0

3#.0

Total

50

100.0

100.0

Cumulatie Percent 6".0 100.0

Figure< :+ )a>e (ou tried to understand needs o the customers

Findings no 3#.0!

&rom the 57 yes 6".0!

respondents sure!ed ?6 Adisor sa! that the! tried to understand needs of the customers

>; adisor sa! that the! don3t tr! to understand needs of the customers Ta'le< ;+ )o@ man( times (ou ha>e contacted the eisting customer

93

Percent 14.0

once in mont*

15

30.0

30.0

once in 6 mont*s

1#

36.0

36.0

#0.0

once in a year

10

"0.0

"0.0

100.0

Total

50

100.0

100.0

once in +ee/

Valid Percent 14.0

Cumulatie Percent 14.0

Frequency 7

44.0

Figure< ;+ )o@ man( times (ou ha>e contacted the eisting customer

once in +ee/ once in a year

14.0!

"0.0!

once in mont* 30.0! once in 6 mont*s 36.0!

Findings

&rom the 57 respondents sure!ed >? Adisor sa! that the! hae contacted the customers once in ? months >7 adisor sa!s that the! tr! to contact once in a month to customer 67 Adisor sa! that the! hae contacted once in a !ear to customers 48 adisor sa!s that the! hae contacted customers once in a wee#. Ta'le< 8+ Do (ou prepare (oursel or an( sales call

94

yes

Frequency "9

Percent 5#.0

Valid Percent 5#.0

no

"1

4".0

4".0

Total

50

100.0

100.0

Cumulatie Percent 5#.0 100.0

Figure< 8+ Do (ou prepare (oursel or an( sales call

no 4".0!

yes 5#.0!

Findings

&rom the 57 respondents sure!ed 5; Adisor sa!s that the! prepare for sales call 86 adisor sa!s that the! don3t prepare for sales call

Ta'le< 27 $hat ?ind o assistance do (ou need to generate more 'usiness

95

Frequency

Percent

Valid Percent

Cumulatie Percent

Training a'out customer *andling

"6

5".0

5".0

el$des/ at t*e 'ranc*

16

3".0

3".0

#4.0

#

16.0

16.0

100.0

50

100.0

100.0

enerating leads 'y t*e com$any Total

5".0

Figure< 27+$hat ?ind o assistance do (ou need to generate more 'usiness

enerating leads 'y 16.0!

Training a'out cust 5".0! el$des/ at t*e 'ran 3".0!

Findings

&rom the 57 respondents sure!ed 56 Adisor sa!s that the! want training about customer handling >6 adisor sa!s that the! want help des# at the branch 4? adisor sa!s that the! want generating leads b! the compan!

Ta'le< 22+ %tent o ad>isor satisaction in RIL @ith Monetar(

96

.satis&ied satis&ied Total

Frequency 7

Percent 70.0

Valid Percent 70.0

3

30.0

30.0

10

100.0

100.0

Cumulatie Percent 70.0 100.0

Figure< 22+ %tent o ad>isor satisaction in RLIC @ith Monetar(

satis&ied 30.0!

.satis&ied 70.0!

&indings 97 of the adisors are highl! satisfied with monetar! benefits* and >7 of the adisors are satisfied with monetar! benefits .

97

Ta'le< 23+ %tent o ad>isor satisaction in RIL @ith re@ards

.satis&ied

Percent 30.0

5

50.0

50.0

#0.0

" 10

"0.0 100.0

"0.0 100.0

100.0

satis&ied neutral Total

Valid Percent 30.0

Cumulatie Percent 30.0

Frequency 3

Figure< 23 %tent o ad>isor satisaction in RIL @ith re@ards

neutral "0.0!

.satis&ied 30.0!

satis&ied 50.0!

&indings >7 of the adisors are highl! satisfied with the rewards. 57 of the adisors are satisfied with the rewards* and 67 of the adisors are feeling normal about the 'ewards

98

Ta'le< 24+ %tent o ad>isor satisaction in RIL @ith recognition

.satis&ied

Percent 40.0

4

40.0

40.0

#0.0

" 10

"0.0 100.0

"0.0 100.0

100.0

satis&ied neutral Total

Valid Percent 40.0

Cumulatie Percent 40.0

Frequency 4

Figure< 24+ %tent o ad>isor satisaction in RIL @ith recognition

neutral "0.0! .satis&ied 40.0!

satis&ied 40.0!

Findings

87 of the adisors are highl! satisfied with the recognition 87 of the adisors are satisfied with the recognition. 67 adisors are feeling normal about the recognition.

99

able1 48 %o !ou find difficult! in handling adisers

Frequency 6

yes 2 Total

Percent 60.0

Valid Percent 60.0

4

40.0

40.0

10

100.0

100.0

Cumulatie Percent 60.0 100.0

&igure1 48 %o !ou find difficult! in handling adisers

2 40.0! yes 60.0!

&indings he sales officer found about ?7 difficult! in handling the adisor he sales officer found about 87 No difficult! in handling the adisor

100

able1 45. What #ind of assistance do !ou need to generate more business

Frequency

Percent

Valid Percent

Cumulatie Percent

$resentation 'y t*e insurance coma$ny

1

10.0

10.0

10.0

'rie&ing 'y managers

"

"0.0

"0.0

30.0

*el$des/ at t*e 'ranc* meeting +it* adisers

" 5

"0.0 50.0

"0.0 50.0

50.0 100.0

10

100.0

100.0

Total

Figure< 26+ $hat ?ind o assistance do (ouneed to generate more'usiness

$resentation 'y t*e 10.0!

'rie&ing 'y manage "0.0! ng +it* adiser 50.0!

*el$des/ at t*e 'ran "0.0!

Findings

57 sales officers feel that generating business can be done through meeting with adisor 57 sales officers feel that generating business can be done through help des# at the branch 67 sales officers feel that managers can do generating business through briefing 47 sales officers feel that managers can do generating business through presentation

101

FI#DI#&S 4. Een though the sales officers and adisors proide sufficient information to customers* while selling the product 6? of the total customers feel that the! had not receied sufficient information. -roided was comple/* rest of the respondents feel that the information proided was less. 6. &ound that I%BI &ederal "ife Insurance has large ariet! of products in its portfolio* it is obsered that >9 of the customer feel that the product purchased b! most the customer and their need are not matching. >. As compared to the Adisors* Sales people perform more than adisors. In instance sales people hae motiated the most of the customers to purchase the product. 8. he male were the dominating categor! in adisors 5. %ue to lac# of the effectie training* most of the adisors were not able to handle the customer properl!* and ma! not sole the customer3s queries.

?. here are not satisfactor! isits made b! the adisors to the customer3s doorstep. )nl! 48 of the adisors hae been isiting the customer at their doorstep at once a wee#. So that the! can find the need in the e/isting customers or can be able to build a new customer for the I%BI &ederal "ife Insurance 9. ,ost of the adisors do not prepare themseles for the sales callF in turn the! ma! not perform better at the call of the customer. ;. o generate more business* most the Sales officers feel that there should be a meeting to be #ept with the adisors. =. he serices proided b! adisor to the customer are most of about 58 of the customer receie information of premium date reminding* while >8 receie information of new policies and 46 of customer get serice of soling the doubts.

102

47. ?6 of the adisors hae tried to understand the customer3s needs* which in0turn will help in suggesting a suitable product to the customer. But >; of the adisors haen3t tried in understanding the customer needs. 44. About >6 of the adisors feel that the compan! should proide help des# at the branch. And 4? of the adisors feel generating leads b! the compan! is necessar! for generating more business. 46. 97 of the adisors are highl! satisfied with monetar! benefits* and onl! >7 of the adisors are satisfied with monetar! benefits. 4>. >7 of the adisors are highl! satisfied with the rewards. 57 of the adisors are satisfied with the rewards* and 67 adisor are feeling normal about the 'ewards

48.87 of the adisors are highl! satisfied with the recognition* about 87 of the adisors are satisfied with the recognition* and 67 adisor are feeling normal about the recognition.

45. he adisors who are wor#ing with the I%BI &ederal "ife Insurance fall under the age group between* 65 to >7
103

Limitations o the stud(

he present stud! is underta#en in "(C+N)W cit! and data is collected from the respondents for the !ear 677=047. ence* data pertained to the stud! is too short and brief for generalization. ence* it would be difficult to draw precise generalizations regarding the implications of the stud!. he findings in the stud!* interpretations and conclusions drawn could be best seen within these limitations.

104

%-P%CT%D CO#TRIB!TIO# FROM T)% ST!D*



As the number of isits made b! the adisors to the customers is less than 5?* and the relation can be build2maintained b! effectie communication with the customers b! being in constant touch with the customer. As man! of the new life insurance companies are entering* I%BI &ederal has to maintain its relation with the customer. So that it can be abele to generate more number of lo!al customers.



o educate the customers about the new products* the compan! can use S,S serice for reaching its customers. %ue to large number of customers* the reach of the entire customers in less time ma! not be possible from its adisors and sales officers. his can be a less costl! medium of ta#ing direct response of the customers. As it does not disturb the customer.



o effectie closing of an! sales call* one should understand the need of the customers in depth. he Adisors can be trained b! the sales officers* and training institution.



he I%BI &ederal should come up with more number of -roducts for those customers about 87 of customer are feeling that the product that the! purchased. does not match there needs

his research has been brought up man! facts regarding the Customer relationship ,anagement. I%BI &ederal "ife insurance has large number of products in its portfolio. But the adisors are unable to find out the need of the customers and the! are unable to suggest the right suitable product. B! this pro$ect* now I can understand the arious factors of insurance industr! and how the customer relation is maintained in this industr!. 105

he potential customers are more in number and the! are still not secured their life. %ue to distribution channels* to reach eer! other customer in shortest time is not possibleF hence compan! can adopt some of the suggestions

uestionnaire For Customers

106

%ear Sir2,adam* 2+ #ame< 3+ Age< 4+ Se< 5+ Income<

5. %o !ou agree that I%BI &ederal life insurance offers ariet! of productsV Strongl! Agree

Agree

Normal

%isagree

Strongl! %isagree

?. %id !ou got sufficient information about products while purchasingV a
b No

9. If No* the reasons are1 •

Comple/it! of products

•

"ess information gien b! the adiser2sales officer

•

An! others Dspecif!

;. %oes !our need and the product !ou purchased are matchingV &ull! matched -artl! matched

Normal

-artl! not matched Not matched

107

=. ow much are !ou motiated b! the adiser or sales officerV ighl! motiated

Adiser

motiated

ighl! motiated

Sales )fficer

Not at all

motiated

Not at all

47.Which are the serices !ou receie from the adisorV 

Information of premium date reminding



Information of new policies.



elps in soling the doubts. If an! mention LLLLLLLLLLLLLLLLLLLLLLLLLL

44. Suggest an! unique serice !ou want from the organizationV LLLLLLLLLLLLLLLLLLLLLLLLLL Than? *ou

!%STIO##AIR% FOR SAL%S OFFIC%RS

2+ #ame< 3+ Designation<

108

>. %o !ou agree that I%BI &ederal life insurance has ariet! of productsV
No

8. %o !ou educate the adisers about initiating I%BI &ederal productsV
No 5. If No* the reasons are1 •

"ac# of information about the same*

•

"ac# of time

•

"ac# of motiation from I%BI &ederal "ife Insurance

•

"ac# of interest in the Adisers*

•

An! others Dspecif!

?. Are !ou aware of the arious incenties aailable for following leads gien b! adisersV
No

9. What are the adisors satisfied withV S atisfied

Satisfied

,onetar! 'ewards 'ecognition

;. ow man! adisers are there in !ou3re underV LLLLLLL

=. %o !ou find difficult! in handling adisersV

109

Neutral

%issatisfied

% issatisfied


No

47. If !es then what t!pe of difficult! !ou faceV LLLLLLLLLLLLL

44. Are !ou gien sufficient information 2 training to help !ou clear the adisers queries regarding insurance plansV
No

46. What #ind of assistance do !ou need to generate more businessV •

-resentation b! the insurance compan!

•

Briefing b! managers

•

elpdes# at the branch

•

,eeting with adisers

han#
110

!%STIO##AIR% FOR AD.IS%RS

2+ #ame< 3+ Age< 4+ Se< 5+ ualiication<

5. %o !ou agree that I%BI &ederal life insurance has ariet! of productsV Strongl! Agree Agree

Normal

%isagree

Strongl! %isagree

?. %o !ou get sufficient information about productsV
No

If No* the reasons are1 

"ac# of interest in !ourself



"ac# of raining



"ac# of motiation from I%BI &ederal "ife Insurance



An! others Dspecif!

9. %o !ou educate customers about I%BI &ederal "ife Insurance -roductsV LLLLLLL ;. ae !ou tried to understand the needs of the customerV
No

111

=. If no then what t!pe of difficult! !ou faceV LLLLLLLLLLLLL

47. ae !ou gien sufficient information 2 training to help !ou clear the customers queries regarding insurance plansV
No

44. ow man! times !ou hae contacted the e/isting customerV )nce in wea#

)nce in month

)nce in ? months

)nce in
46. %o !ou prepare !ourself for an! sales callV
No

4>. What #ind of assistance do !ou need to generate more businessV 

raining about customer handling



elpdes# at the branch*



:enerating leads b! the compan!



An! others Dspecif!

han#
112

BIBLIO&RAP)*

Tet'oo?s< 2+ Mar?eting Management1 4>th Edition A South Asian -erspectie

-hilip +otler* +ein "ane +eller* Abraham +osh!* ,ithileshwar Gha

3+ Mar?eting Management

Arun +umar* N ,eena#shi

$e'sites1

www.I%BI &ederallife.co.in www.licindia.com

#e@spaper1

Business "ine

113