IDBI FEDERAL LIFE INSURANCE CO LTD.

RESEARCH PROJECT REPORT

On

IDBI FEDERAL LIFE INSURANCE CO LTD.

A STUDY TO ENHANCE THE CUSTOMER AWARENESS OF IDBI

FEDERAL IN INSURANCE SECTOR

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FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE AWARD OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION

SUBMITTED TO: SUBMITTED BY:

DR. AMIT KR. SINGH MUKESH KUMAR

MANGALMAY INSTITUTE OF MANAGEMENT AND

TECHNOLOGY
GREATER NOIDA (U.P)

DR. A P J ABDUL KALAM TECHNICAL UNIVERSITY

LUCKNOW

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MBA DEPT. MANGALMAY INSTITUTE OF MANAGEMENT

AND TECHNOLOGY

CERTIFICATE

This is to certify that Mr. MUKESH KUMAR, University Roll No. 1815270069 is a
regular student of MBA 2nd year, full time degree course at our institute. His Project
Report work titled, “A STUDY TO ENHANCE THE CUSTOMER AWARENESS OF
IDBI FEDERAL IN INSURANCE SECTOR” submitted as part of the curriculum for
the award of the degree of Master of Business Administration from Dr. A.P.J. ABDUL
KALAM TECHNICAL UNIVERSITY, LUCKNOW is an original work done by him.
This work has not been submitted earlier in any form partially or fully to this or any
other Institute/University for any degree or diploma.

DR. AMIT KR. SINGH DR. AMIT GUPTA

SUPERVISOR HEAD OF DEPARTMENT

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STUDENT DECLARATION

I MUKESH KUMAR bearing University Roll No.: 1815270069 of Dr. A.P.J. ABDUL
KALAM TECHNICAL UNIVERSITY, LUCKNOW, enrolled as student of MBA at
MANGALMAY INSTITUTE OF MANAGEMENT AND TECHNOLOGY GREATER
NOIDA (U.P) solemnly declare that the project report titled, “A STUDY TO ENHANCE
THE CUSTOMER AWARENESS OF IDBI FEDERAL IN INSURANCE SECTOR”
embodies the results of original research work carried out by me and the same has not been
submitted in any form partially or fully for award of any diploma or degree of this or any
other University/Institute.

MUKESH KUMAR

Roll No.: 1815270069

PREFACE

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A summer project is a golden opportunity for learning and self development. I

consider myself very lucky and honoured to have so many wonderful people
lead me through in completion of this project.
 
I wish to express my indebted gratitude and special thanks to " Mr. Upendra
Singh, Manager Distributor, IDBI FEDERAL LIFE INSURANCE CO LTD.
Kanpur" who in spite of being extraordinarily busy with his duties, took time
out to hear, guide and keep me on the correct path and allowing me to carry out
my Summer project work at their esteemed organization and extending during
the training. I do not know where I would be without him. 

A humble ‘Thank you’ Sir.

I express my deepest thanks to Mr. Brijesh Kumar Pandey (Branch Manager)

and Mr. Himanshu Tiwari (Manager Distributor) at IDBI FEDERAL, for taking
part in useful decision & giving necessary advices and guidance and arranged
all facilities to make life easier. I choose this moment to acknowledge their
contribution gratefully.

I would like to thank the training head Mr Zakir Hussain for helping me with
the training and other activities and constantly motivating me to give my best

I express my deepest thanks to all faculty members their guidance and support.
They supported to me by showing different method of information collection
about the company. They helped all time when i needed and they gave me right
direction toward completion of my project.

I would like to thank my parents, family members and friends for their constant
support in my endeavour.

Last but not the least I would like to thank all the respondents who offered their
opinions and suggestions and sometimes critical views throughout the survey
which made me constantly update myself come out with a successful project.

EXECUTIVE SUMMARY

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Project Training constitutes an important part of a good practice oriented

management course. Keeping with the syllabus of PGDM, each student has to
undergo 6-8 weeks of practical training in a commercial organization or in any
industry. In order to fulfil this requirement, I undertook internship at, IDBI
FEDERAL LIFE INSURANCE CO LTD. Kanpur.

Practical training is necessary to learn as to how theoretical knowledge can be

put into practice in real life situations. I went for the training knowing fairly
well some basic principles of management and this training has indeed helped
me to understand the relationship between theory and practice.

During my internship, I learned how the day to day problems are tackled by the
executives; how various functions of Marketing are run, etc. I saw the actual
working of an organization. The overall knowledge gained by me is reflected in
the training report itself.

I was assigned the task to suggest ways to increase awareness of IDBI

FEDERAL in Insurance Sector & by interacting with target audience try to find
out the value addition that they want IDBI FEDERAL to include so that the
company can charge a premium from the customers by making changes and
finally ways to increase the Sales of the product.

TABLE OF CONTENTS

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Sr.no Contents Page-no

1 INDUSTRY STUDY 9-12
2 ORGANISATION STRUCTURE 13-16
3 FINANCIAL PROFILE OF COMPANY 17
4 PRODUCTS AND SERVICES 18-19
5 COMPETITORS 20-23
6 RELEVANT INFORMATION 24-25
7 WEEK WISE LEARNING 26-28
8 PROJECT TITLE 29
9 INTRODUCTION 30
10 OBJECTIVES OF THE PROJECT 31
11 METHODOLOGY 32-33

12 LIMITATIONS OF THE STUDY 34

13 ANALYSIS OF DATA 35-56
14 FINDINGS & CONCLUSIONS 60
15 SUGGESTIONS 61-62
16 APPENDIX 63-66
17 BIBLIOGRAPHY

INDUSTRY STUDY

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Insurance may be described as a social device to reduce or eliminate risk of

loss to life and property. Under the plan of insurance, a large number of people
associate themselves by sharing risks attached to individuals. The risks, which
can be insured against, include fire, the perils of sea, death and accidents and
burglary. Any risk contingent upon these may be insured against at a premium
commensurate with the risk involved. Thus collective bearing of risk is
insurance.

In the simplest terms, insurance of any type is all about managing risk. For
example, in life insurance, the insurance company attempts to manage mortality
(death) rates among its clients. The insurance company collects premiums from
policy holders, invests the money (usually in low risk investments), and then
reimburses this money once the person passes away or the policy matures. A
person called an actuary constantly crunches demographic data to estimate the
life of a person. This is why characteristics such as age/sex/smoker/etc. all
affect the premium that a policy holder must pay. The greater the chance that a
person will have a shorter life span than the average, the higher the premium
that person will have to pay. This process is virtually the same for every other
type of insurance, including automobile, health and property.

Life Insurance is the fastest growing sector in India since 2000 as Government
allowed Private players and FDI up to 26% and recently Cabinet approved a
proposal to increase it to 49%. 

Life Insurance in India was nationalised by incorporating Life Insurance

Corporation (LIC) in 1956. All private life insurance companies at that time
were taken over by LIC.
In 1993, the Government of India appointed RN Malhotra Committee to lay
down a road map for privatisation of the life insurance sector.
While the committee submitted its report in 1994, it took another six years
before the enabling legislation was passed in the year 2000, legislation
amending the Insurance Act of 1938 and legislating the Insurance Regulatory
and Development Authority Act of 2000. The same year the newly appointed
insurance regulator - Insurance Regulatory and Development Authority (IRDA)
started issuing licenses to private life insurers.

Over the years, there has been a big shift in the life insurance industry. Instead
of offering straight insurance, the industry now tends to sell customers on more

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investment type products like annuities. As a result, insurance companies have

been able to compete more directly with other financial services companies
such as mutual funds and investment advisory firms. To capitalize on this, many
insurance companies even offer services such as tax and estate planning.

TYPES OF INSURANCE
Insurance industry in India is broadly classified as-

Life Insurance:- policies protect individuals against the risk of life. Life
Insurance policies not only protects the insured’s family against his death but
also provides a good means to avail tax benefit, avail loans from banks and acts,
as a good saving tool to meet future needs.

General Insurance:- on the other hand protects the property and casualty by
covering losses from disasters and accidents thereby protecting from property
damage and liability, providing the means for victims to resume their lives and
businesses and contribute to the economy.

INSURANCE INDUSTRY OF INDIA

Indian economy is the 12th largest in the world, with a GDP of $1.25 trillion
and 3rd largest in terms of purchasing power parity. With factors like a stable 8-
9% annual growth, rising foreign exchange reserves, a booming capital market
and rapidly expanding FDI inflows, it is on the fulcrum of an ever-increasing
growth curve.
Insurance is one major sector that has been on ascent since the revival of Indian
economy. Taking into account the huge population and growing per capita
income besides several other driving factors, a huge opportunity is in store for
the insurance companies in India. Nearly 80% of Indian population is without
life insurance covering while health insurance and non-life insurance continues
to be below international standards. And this part of the population is also
subjected to weak social security and pension systems with hardly any old age
income security. Insurance in India is primarily used as a means to improve
personal finances and for income tax planning. There is a tendency to invest in
properties and gold followed by bank deposits with a slight investment in
Stocks and Shares. This in itself is an indicator that growth potential for the
insurance sector is immense. It’s a business growing at the rate of 15-20% per
annum and presently is of the order of $47.9 billion.

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INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)
The Insurance Regulatory and Development Authority (IRDA) is a national
agency of the Government of India, based in Hyderabad. It was formed by an
act of Indian Parliament known as IRDA Act 1999, which was amended in 2002
to incorporate some emerging requirements. Mission of IRDA as stated in the
act is "to protect the interests of the policyholders, to regulate, promote and
ensure orderly growth of the insurance industry and for matters connected
therewith or incidental thereto."

The law of India has following expectations from IRDA

1. To protect the interest of and secure fair treatment to policyholders.

2. To bring about speedy and orderly growth of the insurance industry

(including annuity and superannuation payments), for the benefit of the
common man, and to provide long term funds for accelerating growth of the
economy.

3. To set, promote, monitor and enforce high standards of integrity, financial

soundness, fair dealing and competence of those it regulates.

4. To ensure that insurance customers receive precise, clear and correct

information about products and services and make them aware of their
responsibilities and duties in this regard.

5. To ensure speedy settlement of genuine claims, to prevent insurance frauds

and other mal practices and put in place effective grievance redressal
machinery.

6. To promote fairness, transparency and orderly conduct in financial markets

dealing with insurance and build a reliable management information system to
enforce high standards of financial soundness amongst market players.

7. To take action where such standards are inadequate or ineffectively enforced.

8. To bring about optimum amount of self-regulation in day-to-day working of

the industry consistent with the requirements of prudential regulation.

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HISTORY OF INDIAN INSURANCE

The business of life insurance in India in its existing form started in India in the
year 1818with the establishment of the Oriental Life Insurance Company in
Calcutta. Some of the important milestones in the life insurance business in
India are:

1912:The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.

1938:Earlier legislation consolidated and amended to by the Insurance Act with

the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz.
LIC Act,1956, with a capital contribution of Rs.5crore from the Government of
India. The General insurance business in India, on the other hand, can trace its
roots to the Triton Insurance Company Ltd., the first general insurance
company established in the year 1850 in Calcutta by the British.

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ORGANISATION STRUCTURE
About Us
IDBI Federal Life Insurance Co Ltd

IDBI Federal Life Insurance Co Ltd formally IDBI Fortis Life Insurance is a
joint-venture of IDBI Bank, India premier development and commercial bank,
Federal Bank, one of India’s leading private sector banks and Ageas, a
multinational insurance giant based out of Europe. In this venture, IDBI Bank
owns 48% equity while Federal Bank and Ageas own 26% equity each. G.V.
Nageswara Rao is the MD & CEO of the company. There are totally 2,200
on-roll employees and 7,500 agents in the Company. The Company have
been started at the year 2008 with low investment. Soon after the company
achieved its Break even in the year 2013 with 5.34 crores of profit. Having
started in March 2008, in just five months of inception it became one of the
fastest growing new insurance companies to garner Rs 100 Cr in premiums. The
company offers its services through a vast nationwide network across the
branches of IDBI Bank and Federal Bank in addition to a sizeable network of
advisors and partners.
IDBI Federal Life Insurance Company Limited provides wealth management,
protection, and retirement solutions in India. Its products include Childsurance,
a savings protection insurance plan; Group Microsurance Plan, which provides
life insurance cover to groups, such as micro finance institutions, self help
groups, and NGOs; Incomesurance, a guaranteed money back insurance plan;
Lifesurance, a savings insurance plan; Loansurance and Termsurance, the group
insurance plan; and Wealthsurance Suvidha, a growth insurance plan. The
company offers its products and services through a network of partner bank
branches of IDBI Bank and Federal Bank, and a network of advisors and
partners. Company Limited in August 2010. The company was incorporated in
2007 and is based in Mumbai, India.

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About the sponsors of IDBI Federal Life Insurance

Co Ltd

IDBI Bank Ltd

IDBI Bank Ltd.- India’s premier industrial development bank. Started in

the year 1956 to support India’s industrial backbone, IDBI Bank has since
evolved into a powerhouse of industrial and retail finance. Today, it is India’s
foremost commercial banks, with a wide range of innovative products and
services, serving retail and corporate customers in all corners of the country
from 783 branches and 1328 ATMs. The Bank offers its customers an extensive
range of diversified services including project financing, term lending, working
capital facilities, lease finance, venture capital, loan syndication, corporate
advisory services and legal and technical advisory services to its corporate
clients as well as mortgages and personal loans to its retail clients. As part of its
development activities, IDBI Bank has been instrumental in sponsoring the
development of key institutions involved in India’s financial sector –National
Stock Exchange of India Limited (NSE) and National Securities Depository
Ltd, SHCIL (Stock Holding Corporation of India Ltd), CARE (Credit Analysis
and Research Ltd).

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Federal Bank

Federal Bank is one of India’s leading private sector banks, with a dominant
presence in the state of Kerala. It has a strong network of over 739 branches and
797 ATMs spread across India. The bank provides over four million retail
customers with a wide variety of financial products. Federal Bank is one of the
first large Indian banks to have an entirely automated and interconnected branch
network. In addition to interconnected branches and ATMs, the Bank has a wide
range of services like Internet Banking, Mobile Banking, Tele Banking, and any
where banking, debit cards, online bill payment and call centre facilities to offer
round the clock banking convenience to its customers. The Bank has been a
pioneer in providing innovative technological solutions to its customers and the
Bank has won several awards and recommendations.

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Ageas

Ageas is an international insurance company with a heritage spanning more

than 180 years. Ranked among the top 20 insurance companies in Europe,
Ageas has chosen to concentrate its business activities in Europe and Asia,
which together make up the largest share of the global insurance market. They
are grouped around four segments: Belgium, United Kingdom, Continental
Europe and Asia. It is an undisputed leader in the Belgian market for individual
life and employee benefits, as well as a leading non-life player, through AG
Insurance. Internationally Ageas has a strong presence in the UK, where it is the
second largest player in private car insurance. The company also has
subsidiaries in France, Germany and Hong Kong. Ageas has a track record in
developing partnerships with strong financial institutions and key distributors in
different markets around the world and successfully operates partnerships in
Luxembourg, Italy, Portugal, China, Malaysia, India and Thailand. Ageas
employs more than 13,000 people and has annual inflows of almost EUR
18billion.

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OUR VISION
To be the leading provider of wealth management, protection and retirement
solutions that meets the needs of our customers and adds value to their lives.

OUR MISSION
To continually strive to enhance customer experience through innovative
product offerings, dedicated relationship management and superior service
delivery while striving to interact with our customers in the most convenient
and cost effective manner.
To be transparent in the way we deal with our customers and to act with
integrity.
To invest in and build quality human capital in order to achieve our mission.

OUR VALUES

 Transparency: Crystal Clear communication to our partners and

stakeholders
 Value to Customers: A product and service offering in which customers
perceive value
 Rock Solid and Delivery on Promise: This translates into being financially
strong, operationally robust and having clarity in claims
 Customer-friendly: Advice and support in working with customers and
partners
 Profit to Stakeholders: Balance the interests of customers, partners,
employees, shareholders and the community at large

LEADERSHIP
GV Nageswara Rao is the Managing Director and CEO of IDBI Federal Life
Insurance Company.

FINANCIAL PROFILE OF COMPANY

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IDBI FEDERAL breaks-even in Five years; posts maiden profit of Rs 9.24

crore.

 New Business Premium grows by 23%, compared to industry’s negative

growth of -15%.
 Achieves 44% increase in the number of new business policies sold.
 Product mix further shifts to long-term traditional products, thereby
driving profitability through product-mix. Traditional products account
for 83% of new business premium.
 13th month persistency improves to 76%. Among top 5 companies in
persistency experience.
 AUM (Assets under Management) up by 24% to Rs 2,732 crore. For the
calendar year 2012, IDBI Federal’s Equity Fund ranked No 1 among 72
ULIP funds bearing testimony to the company’s fund management
expertise.

IDBI Federal Life Insurance has achieved break even in 2012-13, its fifth year
of operations, thus making it one of the fastest to break-even in the Life
Insurance industry. In an industry challenged by falling margins, shrinking new
business volumes, high cost ratios and low profitability, this is a significant
achievement.

IDBI Federal’s New Business Premium (APE) grew by 23% in 2012-13, which
compares with the negative growth of 15% posted by the industry. The
company also witnessed a 44% increase in the number of new business policies
sold as compared to the previous year. IDBI Federal has also been driving
profitability through the right product mix. The product mix has continuously
been shifted to long-term, traditional products. Share of traditional products in
the new business premium increased to 83% as compared to 67% in the
previous year. Share of regular premium products increased to 78% as
compared to 69% in previous year.
th
The company recorded a 13  month persistency rate of 76% which is among the
top 5 in the industry. In terms of 25th, 37th and 49th month persistency rates, IDBI
Federal is among the top 3. For the calendar year 2012, IDBI Federal’s Equity
Fund raked No 1 in its investment performance among the 72 ulip funds in the
industry against which it is benchmarked internally. IDBI Federal’s customer
complaints, as reported by IRDA, is among the lowest in the industry.
A strong focus on cost discipline ensured a drop in IDBI Federal’s cost ratio
from 26% in 2011-12 to 24% in 2012-13, which is among the lowest expense
ratios.

PRODUCTS AND SERVICES

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Our Products

 IDBI Federal Childsurance Savings Protection Insurance Plan:

A non-linked participating endowment plan that ensures your child’s

future financial needs are fulfilled.Childsurance Savings, is designed to
give you guaranteed annual payouts and aid the important milestones in
your child’s life. What’s more, this plan also provides financial protection
to your child’s future by ensuring plan continuity with waiver.

IDBI Federal Incomesurance Guaranteed Money Back Insurance Plan:

A non-linked non-participating money back plan which gives you

guaranteed returns on your investment, so that you stop worrying about
the future. With Incomesurance, you can guarantee a secure future for
your family even when you are not around.

IDBI Federal Lifesurance Savings Insurance Plan:

A fixed term non-linked participating plan that provides you the twin
benefits of long-term savings and life cover. With Lifesurance Savings,
your small savings will help you realise the big dreams that you have for
yourself and your family. This plan also offers you the benefit of life
cover that will provide financial security to your family in your absence.

IDBI Federal Loansurance Group Insurance Plan:

Referred to as Loansurance, a group credit protection plan that helps

protect your borrower’s assets and savings. Loansurance allows you to cover the
persons who are directly liable for loan repayment (and the partners, in case of a
partnership) be it a loan taken by individuals or by business. Furthermore, with
this product, you gain competitive edge while attracting new customers and
retaining the existing ones. Loansurance thus extends benefits to you as well as
your valuable customers.

IDBI Federal Termsurance Group Insurance Plan:

 

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Employees are the most valuable assets for any organisation. A good way of
showing your employees you care is to offer them the cover of life insurance,
which helps them provide a secure foundation for their families’ future, in case
of the unfortunate demise of the main wage-earner. It creates the support to help
your employee’s family continue to live comfortably should something happen
to your employee. You can ensure this by opting for IDBI Federal Termsurance
Group Insurance Plan, a pure group term plan designed to cater to a wide
variety of formal and informal groups such as the employer-employee
groups/bank-depositor groups/customer-supplier groups/professionals/affinity
groups, by providing them with basic life insurance protection.
 

IDBI Federal Group Microsurance Plan:

 Provides affordable life insurance cover to groups. The plan is extremely useful
to Micro Finance Institutions, Self Help Groups and NGOs to insure the lives of
their group members and thus provide security to the group members’ families.
The plan can also be used for providing loan protection to the group members’
families.

IDBI Federal Wealthsurance Suvidha Growth Insurance Plan:

 

Creating, building and managing wealth has always been a time consuming
process. Those who have already built their wealth often describe the journey as
time consuming and arduous. All of us still dream to build personal wealth and
manage it well.IDBI Federal Wealthsurance Suvidha Growth Insurance Plan , a
simple unit linked plan that helps you take your first step towards wealth
creation through an easy process. This plan helps to not only build wealth to
fulfill your future dreams but also protects your loved ones in case of any
unfortunate incident.

IDBI Federal Retiresurance Group Insurance Plan:

 

An employee is the very reason for your existence and is critical to business
success. IDBI Federal Retiresurance Group Insurance Plan is here to help you
with the management of funds that you have set aside for your employee’s
retirement benefits - Gratuity, Superannuation and Leave Encashment. It
ensures that your employees are rightfully rewarded for all their hard work.

COMPETITORS

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INSURANCE COMPANIES IN INDIA

 Bajaj Allianz Life Insurance Company Limited
 Birla Sun Life Insurance Co. Ltd
 HDFC Standard life Insurance Co. Ltd
 ICICI Prudential Life Insurance Co. Ltd.
 ING Vysya Life Insurance Company Ltd.
 Life Insurance Corporation of India
 Max New York Life Insurance Co. Ltd
 Met Life India Insurance Company Ltd.
 Kotak Mahindra Old Mutual Life Insurance Limited
 SBI Life Insurance Co. Ltd
 Tata AIG Life Insurance Company Limited
 Reliance Life Insurance Company Limited.
 Aviva Life Insurance Co. India Pvt. Ltd.
 Shriram Life Insurance Co, Ltd.
 Sahara India Life Insurance
 Bharti AXA Life Insurance
 Future Generali Life Insurance
 IDBI Federal Life Insurance
 Canara HSBC Oriental Bank of Commerce Life Insurance
 Religare Life Insurance
 DLF Pramerica Life Insurance
 Star Union Dai-ichi Life Insurance
 Agriculture Insurance Company of India
 Apollo DKV Insurance
 Cholamandalam MS General Insurance
 HDFC Ergo General Insurance Company
 ICICI Lombard General Insurance

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 IFFCO Tokio General Insurance

 National Insurance Company Ltd
 New India Assurance
 Oriental Insurance Company
 Reliance General Insurance
 Royal Sundaram Alliance Insurance
 Shriram General Insurance Company Limited
 Tata AIG General Insurance
 United India Insurance
 Universal Sompo General Insurance Co. Ltd

MAJOR PLAYERS IN THE MARKET

Bajaj Allianz  Life Insurance Co. Ltd.

Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between Allianz SE, one
of theworld's largest insurance companies, and Bajaj Finserv. Allianz SE is a
leading insurance corporation globally and one of the largest asset managers in
the world, that manage assets worth over a Trillion. With over 115 years of
financial experience, Allianz SE is present in over 70 countries around the
world. Bajaj Allianz is into both life insurance and general insurance. Today,
Bajaj Allianz is one of India's leading and fastest growing insurance companies.
Currently, it has presence in more than 550 locations with over 60,000
Insurance Consultants.

Birla Sun Life Insurance Co. Ltd.

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Birla Sun Life Insurance Co. Ltd. is a joint venture between Aditya Birla Group,
an Indian multinational corporation, and Sun Life Financial Inc, a leading
global insurance company. Birla Sun LIFE INSURANCE is distinguished as the
first company in the sector of financial solutions to begin Business Continuity
Plan. This insurance company has pioneered the unique Unit Linked Life
Insurance Solutions in India. Within 4 years of its launch, BSLI became one of
the leading players in the industry of Private Life Insurance Scheme.Established
on 14th August 2000, HDFC Standard Life Insurance Co. Ltd. is a joint venture
between Housing Development Finance Corporation Limited (HDFC Limited) -
India's leading housing finance institution, and a Group Company of the
Standard Life Plc, UK. The Company is one of leading private insurance
companies, offering a range of individual and group insurance solutions, in
India. Being a joint venture of top financial services groups,HDFC Standard
Life has adequate financial expertise to manage long-term investments safely
and resourcefully.

ICICI Prudential Life Insurance Company

ICICI Prudential LIFE INSURANCE Company is a joint venture between

ICICI Bank, which is one of India's foremost financial services companies, and
Prudential plc, which is a leading international financial services group
headquartered in the United Kingdom. ICICI Prudential began the operations in
December 2000. Today, this company has over 2100 branches, which include
1,116 micro-offices, over 290,000 advisors and 18 banc assurance partners.

ING Vysya Life Insurance Company Limited

Established in India in September 2001, ING Vysya Life Insurance Company

Limited is a joint venture between Vysya Bank, which is one of the largest
private sector banks in India, and ING Insurance Co., which is the world's
second largest life insurance company. This private life insurance company has
around 140 branches all over India, with head office in Bangalore. ING Vysya
Life Insurance Co. has around 3000 employees with over 21,000 sales insurance
agents and brokers. ING Vysya Life presently has around 4.5 lakh customers,
and is making a total income of Rs. 400 crore.

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Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) is a Government of India enterprise,

and is said to be the largest life insurance company and also the largest investor
of the country. LIC had been established on the 1st of September, 1956, after
the Life Insurance Corporation Act had been passed by the Parliament of India
in the same year. The corporation is aimed at providing LIFE INSURANCE
services primarily to the rural masses and the socially &economically backward
sections of the Indian society. It also aims at promoting the people for saving
their money, and offers attractive savings features along with various insurance
policies.

RELEVANT INFORMATION
Growth Over half a Decade

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 2006: IDBI Bank, Federal Bank and Belgian-Dutch

insurance major Fortis Insurance International NV signed a MoU to start a
life insurance company
 2008: IDBI Fortis Life Insurance Co. Ltd., which
started its operations in March 2008
 2008: IDBI Fortis opens its second branch in Andhra
Pradesh in Vijayawada
 2008: IDBI Fortis Life positive on assured return
products
 2008: IDBI Fortis launches the Bondsurance Plan
 2009: IDBI Fortis announces Rs 250cr capital
infusion
 2009: Nimbus ropes in IDBI Fortis as title sponsor
of India–Sri Lanka series
 2009: 'IDBI Fortis' Boss-Ka-Boss receives PRCI
Award
 2009: IDBI Fortis launches Retiresurance Pension
Plan
 2009: IDBI Fortis scores with Goalsurance
 2009: IDBI Fortis reaches the banks of Hoogly
 2009: IDBI Fortis launches Incomesurance Immediate
Annuity
 2009: IDBI Fortis Life Insurance uses an interactive
application to help users easily calculate their taxes
 2009: IDBI Fortis reaches the City of Eastern Light
 2009: IDBI Fortis receives bronze Dragon at 'PMAA
2009'
 2009: IDBI Fortis Life Insurance introduces financial
inclusion plan in rural Orissa
 2009: IDBI Fortis launches Termsurance Protection
Plan
 2009: IDBI Fortis redefines endowment & money
back with Incomesurance
 2009: IDBI Fortis to open 65 more branches; raise
headcount by 1,000

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

 2010: IDBI Fortis now renamed as IDBI Federal Life

Insurance Company

TECHNOLOGY:
To monitor and manage its network equipment across 34 sites, IDBI Federal
uses Tulip Proactive Managed CE solution. The solution includes device
management, proactive troubleshooting and notification support. With the
implementation of the solution, IDBI has reported improvement of network
performance and availability, with a faster, more effective change and
configuration management.

SPONSORSHIPS AND AWARDS.

 IDBI Federal Life Insurance Company was the title sponsor for the India-
Sri Lanka Cricket Series 2009, consisting of five One-Day Internationals and
a Twenty 20 match. The ODI series was called the IDBI Fortis
Wealthsurance Cup. This was followed by the IDBI Fortis Wealthsurance
Twenty20.

 ‘Wealthsurance Made Easy’ (WME), a knowledge aid by IDBI Federal

for its sales force, won The Bronze Dragon in the category for ‘Best
Dealer/Sales Force activity’ at the Promotion Marketing Awards of Asia
(PMAA)

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

WEEK-WISE LEARNINGS AND PROJECT

WORK
Week Ending Task Performed During The Week Learning’s From Task Performed
18th May I Browsed through the official website of I learnt that in India life insurance
IDBI FEDERAL LIFE INSURANCE and is regarded as more than a mere
I wrote down all the important information risk cover and is considered an
about joint venture of IDBI, Federal and important avenue of investment.
Ageas.I searched out for the advantages of Indian investors therefore,
the company in the market. Then I went evaluate the past track record and
through the products (policies) offered by risk potential of an Insurer before
IDBI Federal Life Insurance Co Ltd. in the taking a policy investment
market and also came to know which decision.I noticed that although a
product fetches them the maximum number of private insurance
revenue. I was told about different Tax companies have entered the
Benefits. Indian life insurance market, but
Life Insurance Corporation of
India still seems to be the first
choice for many of the investors
due to its strong brand image and
the perceived safety that is
associated with it.

24th May I worked on the Swot Analysis of IDBI Insurance being the most difficult
Federal Life Insurance . Then my mentor product to be sold, learnings from
briefly explained me about company’s top this second week was very
competitors, I saw the way of presenting in interesting.I actually found
a corporate world and also collected the problems faced by agency
name and contact details of the people advisors and recruiters while
who attended the session. I was asked to selling insurance products.

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

prepare a list of people known who were Convincing people was hard and
interested in insurance sector both for I found almost negative responses
investing and selling. According to the by people as they were not aware
contact list prepared I was asked to call of IDBI Federal Life Insurance
them and convince them for investing.I Co Ltd.
noted down all the responses as I felt it
could be useful at the time of making
presentations also acting as a source of
collecting relevant primary information.
Study of responses by different people and
provided the same information to my
mentor and Branch Manager

31st May Understand various plans of IDBI FEDERAL Learning from this third week
LIFE INSURANCE in detail from my mentor. was beneficial. Identifying
I began contacting with my prospects prospects and communicating
Certain visits to customers to generate with them was my important
sales for IDBI Federal products.Studied learning. Generating leads and
about IDBI sign up for Growth. ( As an converting the leads into clients
advisor with IDBI FEDERAL LIFE through various stages of
INSURANCE ).To Generate Maximum objection handling was tuff.(My
Lead / reference from individual from our Mentor supported me on field by
database was the target of the third week. handling customers queries)I
learned that if you need some
business from customers then you
should be very specific and
persuasive as to attract the
attention of your respondents.
7th June Fourth week was fully consumed Learning from this fourth week
-studying for IC-33 Exam(An important was all about IC-33 EXAM.Mr
IRDA certified Life Insurance Zakir Hussain (IDBI Federal
agent exam).Company provided us with Trainee) provided the training
important notes and an experienced trainee and lectures for the same. He
for the same.My mentor said me to appear completed the syllabus of the
for the exam. Exam and told us important
points about IDBI federal
products.I came across various
challenges and after having a
word with my mentor and certain
customers it was clear that the
things are not that easy and I will
have to be very narrow in my
approach while explaining to
them so as to just get some result
from them for which my mentor
helped me out as how, when and
what to communicate I also
learned certain good things from
the session conducted by them as
to give me a much more deep

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

understanding of the insurance

market .
14th June Practised Mock test of IC-33 Exam as my This entire week made me
exam date was 12th June. I had a session realized that what actually sales
with Mr. Upendra Singh (my mentor) in mean in the real world and how
which I discussed all the problems and difficult it becomes for a person
doubts before interacting with the when he has his target audience
prospects and he also provided me with as those people who are price
the necessary policies Form.I once again sensitive and they should be dealt
browsed the site very well so that I can all together in a different manner
easily explain people about company’s and in a way in which they feel
plans.I realized that it’s not that easy to comfortable and are able to listen
convince a person to pay high if he is to what you are interested in
contended with low price. I wrote down all saying .Before making the sales
the questions asked by the people so that I the salesperson should be well
can mention it in my project report. Then aware and prepared about his
I once again went to my mentor and told market as to be spontaneous in
him about different responses of people answering the question as and
towards IDBI Federal. when asked from the buyer.
21st June I discussed some of the issues that I had in These activities performed by me
completion of my task with my mentor.My showed me a true picture that it is
mentor provided me a contact list and very difficult to perform a
asked me for cold calling and find people marketing job.I learned that
who are interested in taking insurance without sincere hard work it is
policy.I visited many people and tried to impossible to attain anything
convince them for policy with my mentor because even though many
I began with my data collection and got people responded negatively and
my questionnaire filled so as to cover my send me back saying they are not
sample size and also started the analysis of interested but at last I was able to
my data to prepare a base for my report complete my target. I can’t
from the entire responses from the market. prepare a report at all saying that
the product is not at all useful, too
I sold 3 policies of IDBI Federal and costly as I faced many problem
completed my target of Rapid Starter while selling it as many people
and was awarded with cash prize, were unaware about IDBI Federal
Certificate of Excellence and a Trophy Life Insurance Co Ltd rather I
for the same decided to sincerely work on my
topic to enhance the awareness of
IDBI Federal Life Insurance Co
Ltd and provide some suggestions
to my mentor regarding this so
that people awareness for IDBI
Federal increases.
28nd June I started working on the analysis of my I realized that how after making
summer project in which I had to mention such an extensive research from a
the suggestions and findings and show it to small sample you cannot
my mentor before I left so I worked the conclude the results for the entire
whole day out on that part to get my task population but still you get a

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

accomplished .Mr. Upendra Singh told me direction which helps you to lead
to prepare a presentation on the towards a right path so that you
suggestions and findings that I have can improve the quality of your
observed from the research done by me in product and services.
the so to land up at a good analytical
conclusion which would benefit me in my
project report. I prepared the presentation
and my mentor had a glance on it and
asked me to be a bit crisp while
mentioning the points and I worked on it
and after that I began the data feeding in
so as to generate certain outputs in
pictorial form to make my data more
legitimate.

PROJECT TITLE

A
STUDY TO ENHANCE
THE
CUSTOMER AWARENESS
OF
IDBI FEDERAL LIFE
INSURANCE IN INSURANCE
SECTOR

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

INTRODUCTION

It was a great opportunity for me to work in IDBI Federal Life Insurance where
I had the real corporate exposure as how to deal with the day to day situations
prevailing in the market and I felt really privileged to be a part of that
organisation and contribute towards their sales working.

The Project was based on increasing the customer awareness of IDBI Federal in
Insurance Sector with focus on sales .The primary aim which I was assigned
was to know the awareness of IDBI Federal and tap customer response. To
know Customer Insight: Specific customer needs, aspirations, buying
behaviours, usage patterns, decision models, preferences, favourability,
intentions were my second objective. To enhance its acceptance by the people
in the market and finally gear up its sales contributing to the revenue of the
company was also my aim.

The main purpose behind doing this task was to get some unbiased feedback
from people belonging to different field so that the loopholes which are acting
as a barrier in the sales of the IDBI Federal Insurance Policies could be easily
identified and the report could be generated so as to demand for certain changes

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

which could actually boost up the sales of the company by making the value
additions for the benefit of the image of the company in the corporate world.

OBJECTIVES OF THE PROJECT

My work consisted of three major objectives which are as follows.

 To know the awareness of IDBI Federal Life Insurance Co Ltd and suggest
ways to enhance its awareness in the Insurance Sector.

 To know Customer Insight: Specific customer needs, aspirations, buying

behaviours, usage patterns, decision models, preferences, favourability,
intentions so that company can use those finding in a positive way. (To
identify the key factors which influence consumers the most when they
purchase a life insurance product)

 Ways to increase the Sales of IDBI Federal Life Insurance.

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

METHODOLOGY
The purpose of the methodology section is to describe the research procedure.
This includes overall research design, the sampling procedure, data collection
method, field Work methods and analysis procedures.

The aim of the present study was to know the awareness of IDBI Federal Life
Insurance In Insurance Sector and accordingly suggest company to make certain
value additions that people want from them thus increasing sales.

To check this out that whether people are aware about presence of IDBI Federal
in Insurance Sector a sample of 50 respondents was selected and out of them 39
respondents gave me there valuable feedback .I actively used four tools to
complete my research and data collection and those were

 Questionnaire
 Field visits
 Personal interviews
 Telephonic Conversations
These things helped me a lot and made my task much more simplified to give a
perfect analysis of the data that I received from them.

QUESTIONNAIRE

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

The questionnaire was prepared by me in electronic format with the help of

Google drive so that without wasting enough time I could easily get the
feedback from the target audience it was designed in such a manner so that it
does not becomes hectic to answer. Questionnaire covered all the required
details starting from certain General questions and then being specific to the
basic objective of the project. The questionnaire consisted in total 14 questions
in which first 4 were related to the personal details acting as an ice breaker and
then the next 10 were multiple choice questions and the second last was open
ended question as to know what value additions people need from IDBI Federal
thus helping in enhancing sales.
The questionnaire consisted simply of multiple choice questions that helped me
out in receiving the responses.

Sample Size- 50
Responses received- 39
Data- Primary Data
Mode of sampling- Convenience sampling

Field visits & Personal interviews

I had covered various places to meet different people related named

 Ratan Lal Nagar

 Govind Nagar

Mention Below is the list of the people contacted

List of Traders/Businessmen &Service people

Contacted during field visits:-
S.no Name of the company or organisation Name of the person

1 Krishna Emporium Mr. Rakesh Arora

2 Kamal Textile Mr. Kamal Nagia

3 Green Pure Technologies Mr. Sanjeev Shukla

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

4 Sonu Fruit Mart and Decorators Mr.Gopal Vaswani

5 A.K. Marble Store Mr.Amit Vij

6 Telephone Point Mr. Chander Battu

7 Shree Durga Textiles Mr. Chandra Prakash

8 Pahwa Paints and Plywood Mr. Narendra Pahwa

9 SBI Bank Mr. Jagmohan Shukla

10 HDFC Bank Mr. Mohit Arora

LIMITATIONS OF THE STUDY

 The study was restricted to Kanpur only,conclusions can be drawn for

this region only.

 Due to time constraint and difficulty in getting the respondednts the

sample size was restricted to 50 only.

 The data given contains the approximated figures.

 The findings that are obtained in the current study are based on the
assumption that the information given by respondents is correct without
any bias.

 The study is time based due to the changes in the market. Hence, the
results of the study may not be applicable over a period of time.

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

ANALYSIS OF DATA

Various activities were undertaken and the following results were derived from
them.I prepared my questionnaire in such a way so that I can know how people
choose some specific company to buy a life insurance policy.I tried to find
important parameters people see before going for a policy.I also tried to find
what affects buying behaviour of people when they go for a life insurance
policy.Through my analysis I found that 78% of people are going for LIC and
then I asked them the reasons that why they choose those companies.They rated
the parameters accordingly and I came with some valuable information and
suggested IDBI Federal the same.It requires various value additions are to
survive.Study was done in as specific way noticing people buy insurance from
which company,reasons for the same and why they don’t want to buy from
IDBI Federal Life Insurance Co Ltd.

 Have you taken any life insurance policy?

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

36 92%
Yes

No 3 8%

INTERPRETATION:-

92% of surveyed respondents are having Insurance policy.8% of the

respondents are not having any Insurance policy at present .This shows that
higher percentage of people are aware about life insurance and are having Life
Insurance policies.

 If Yes,from which source did you come to know about life insurance?

Newspaper and Magazines 7 19%

Television 21 58%

36
 IDBI FEDERAL LIFE INSURANCE CO LTD.

Agent/Field Sales 4 11%

representative

Bank 2 6%

Radio 2 6%

Others              0 0%

INTERPRETATION:-

58% respondents have stated that they came to know about life insurance policy
from Television advertisement thus it shows that advertisements play major role
in exploring the new companies policy’s for explaining their companies
importance and policies. Television Adds create great effect on the mind of the
customers about awareness and understanding of plans. It means that they
consider it the best way to know a financial product followed by newspaper ads
and then Insurance agent.

 If you are holding a life insurance policy,please mention the name of

the policy you have taken and the name of the company.

Life insurance from Birla sun Life. Term Plan and Health plan from ICICI
Prudential Retirement and life plan from LIC Life insurance plan from ICICI
Prudential Money Back Plan from LIC Life plan from Birla sun life. Profit Plus
from LIC life Plan from ICICI Prudential Life plan AND Child plan from
LIC NOT YET Child Career Plan lic policy from LIC Not yetICICI
prudential(Child plan) Aam Admi Bima Yojana policy from LIC Not holding
any policy. Child and life plan from LICChild Plan from Reliance life
insurance Child Plan from LIC Jeevan Aadhar Lic Policy from LIC Classic
child plan from Birla sunlife insurance. Life plan from LIC and Child plan from
Reliance Jeevan Aadhar from LIC Child plan from ICICI prudential. Health
insurance from Birla sunlife insurance Jeevan Vishwas from
LIC Incomesurance from LIC Child plan from Max Life Insurance. Term Plan

37
 IDBI FEDERAL LIFE INSURANCE CO LTD.

from HDfC standard Retirement plan from ICICI PRUDENTIAL Jeevan

Aadhar from LIC and child plan from LIC Child plan from LIC Child plan from
Max life insurance Wealth Max plan from ICICI Prudential

INTERPRETATION:-

78% of the people contacted prefer LIC policy to any other and therefore it is
ranked no.1 by that percent of respondents

 Are you aware about IDBI FEDERAL LIFE INSURANCE CO

LTD?

Ye 3 8%
s

No 36 92%

INTERPRETATION:-

This is itself a question about the company’s marketing strategy, when I came to
know that majority of the people ( 92%) have not heard about the name of
company. This shows that company should give a deep thought to it now and
enhance its awareness through different modes.

I asked some specific questions to know factors which influence

customers life insurance purchasing decisions.
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 IDBI FEDERAL LIFE INSURANCE CO LTD.

To know Customer Insight: Specific customer needs, aspirations, buying

behaviors, usage patterns, decision models, preferences, favorability, intentions
so that company can use those finding in a positive way. (To identify the key
factors which influence consumers the most when they purchase a life insurance
product),here is the analysis of those questions asked

(a) Brand image of the Company [What prompted you to buy the life
insurance policy from the company named by you? (please rate them on
scale of importance)]

Very Low 0 0%

Low 0 0%

Neutral 0 0%

High 2 5%

Very 37 95%
High

INTERPRETATION:-

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

Brand image of the company plays a major role while buying life Insurance
policy.95% of respondants give very high importance to Brand Image of the
company.Thus IDBI Federal Life Insurance Co Ltd should enhance its brand
image in insurance sector also as IDBI and Federal are well known Brand
names with good image.

(b)Premium Rates [What prompted you to buy the life insurance policy
from the company named by you? (please rate them on scale of
importance)]

Very Low 0 0%

Low 0 0%

Neutral 1 3%

High 13 33%

Very 25 64%
High

INTERPRETATION:-

40
 IDBI FEDERAL LIFE INSURANCE CO LTD.

64% of respondants think premium rate is an very important factor.Life

insurance is not only for people who can afford more but it is for “AAM
AADMI”,thus people prefer LIC because premium rates are low over there so I
would suggest IDBI Federal to charge slight lower then what they are charging
right now.This would surely can boost sales.

(c)PolicyFeatures [What prompted you to buy the life insurance policy

from the company named by you? (please rate them on scale of
importance)]

Very Low 0 0%

Low 0 0%

Neutral 3 8%

High 16 41%

Very 20 51%
High

41
 IDBI FEDERAL LIFE INSURANCE CO LTD.

INTERPRETATION:-

51% of respondants think policy features play an important role while taking
life insurance policy.All insurance companies are trying to give maximum
policy features to make their presence feel by people.

IDBI Federal should also increase some differenciating features in their policies
to attract people and thus increasing sales.

(d) Marketing people(Agents) insisted me to buy  [What prompted you to

buy the life insurance policy from the company named by you? (please rate
them on scale of importance)]

Very Low 0 0%

Low 17 44%

Neutral 17 44%

High 4 10%

Very 1 3%
High

INTERPRETATION:-

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

44% of respondants think that they don’t make their buying decisions in
forcement of marketing agents,they use their own brains and comforts.Other
44% marked neutral saying sometimes people are affected by marketing agents
thus every company hires such advisors who have good communication skills
and complete knowledge of plans.

(e) Impressed by the company‟s Ads and promotion [What prompted you
to buy the life insurance policy from the company named by you? (please
rate them on scale of importance)]

Very Low 0 0%

Low 0 0%

Neutral 0 0%

High 11 28%

Very 28 72%
High

INTERPRETATION:-

72% of people think that they were impressed by company advertisements and
promotions so they buyed it.Thus there is no doubt saying that
ADVERTISEMENTS play an major role in influencing decisions.

43
 IDBI FEDERAL LIFE INSURANCE CO LTD.

IDBI Federal should start giving importance to advertisements because more

that half of the people buy just because they liked their companys life insurance
adds.

(f)My friend/acquaintances have bought from this company [What

prompted you to buy the life insurance policy from the company named by
you? (please rate them on scale of importance)]

Very Low 0 0%

Low 6 15%

Neutral 10 26%

High 21 54%

Very High 2 5%

INTERPRETATION:-

Out of the total sample 54% of respondants said that they make their decisions
noticing that from which company their friends and relatives have bought the
policy. Thus IDBI Federal should keep this point very clear that people are
influenced by word of mouth by friends and relatives.From the analysis it is
very much clear that high percentage of people are not aware about IDBI
Federal then how come they would suggest to anyone else. The information

44
 IDBI FEDERAL LIFE INSURANCE CO LTD.

coming from friends and family is important but when people themselves have
not come across the institutions then it is impossible enlightening others about
the policies offered by IDBI Federal .

g)Desire to try out a new company [What prompted you to buy the life
insurance policy from the company named by you? (please rate them on
scale of importance)]

Very 30 77%
Low

Low 6 15%

Neutral 3 8%

High 0 0%

INTERPRETATION:-

45
 IDBI FEDERAL LIFE INSURANCE CO LTD.

77% of people are satisfied with their old companies and have no desire to try
out other one.This 77% will be attracted when they will get something
different ,they are not getting from their old choosen company.

IDBI Federal should focus and offer some valuable features different from
others.

 What parameters do you look into before you take up a life insurance
policy? 

(a)Premium Charges [What parameters do you look into before you take
up a life insurance policy? And tick the following parameter according to
your importance:]

Highly 25 64%
Important

Important 14 36%

Neutral 0 0%

Least Important 0 0%

Not Important 0 0%

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

(b)Policy Term [What parameters do you look into before you take up a
life insurance policy? And tick the following parameter according to your
importance:]

Highly Important 1 36%

4

Important 2 51%
0

Neutral 5 13%

Least Important 0 0%

Not Important 0 0%

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

(c)Number of options available(Complete product line) [What parameters

do you look into before you take up a life insurance policy? And tick the
following parameter according to your importance:]

Highly Important 30 77%

Important 8 21%

Neutral 1 3%

Least Important 0 0%

Not Important 0 0%

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

(d)Policy Features [What parameters do you look into before you take up a
life insurance policy? And tick the following parameter according to your
importance:]

Highly 8 21%
Important

Important 31 79%

Neutral 0 0%

Least Important 0 0%

Not Important 0 0%

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

e) Services (Pre and post Sales) [What parameters do you look into before
you take up a life insurance policy? And tick the following parameter
according to your importance:]

Highly 0 0%
Important
Important 28 72%
Neutral 11 28%
Least Important 0 0%
Not Important 0 0%

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

(g) Company Image and Trust [What parameters do you look into before
you take up a life insurance policy? And tick the following parameter
according to your importance:]

Highly 34 87%
Important

Important 5 13%

Neutral 0 0%

Least Important 0 0%

Not Important 0 0%

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

(h)Easy Claim [What parameters do you look into before you take up a life
insurance policy? And tick the following parameter according to your
importance:]

Highly 23 59%
Important

Important 11 28%

Neutral 5 13%

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

Least Important 0 0%

Not Important 0 0%

 Would you like to invest in IDBI FEDERAL LIFE INSURANCE CO

LTD?

4 10%
Yes

No 35 90%

INTERPRETATION:-

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

90% of people don’t want to invest in IDBI Federal Life Insurance Co Ltd due
to lack of awareness. Respondents said that they have heard this name for the
first time when I provided them with questionnaire.

Thus IDBI Federal should enhance its awareness through different Medias.

 If Yes,what will make you to invest in IDBI FEDERAL LIFE

INSURANCE CO LTD?

 Will you ask others to go for IDBI FEDERAL LIFE

INSURANCE CO LTD?

INTERPRETATION:-

54
 IDBI FEDERAL LIFE INSURANCE CO LTD.

72% of people said “NO” while remaining 28% said “YES”

 GIVEN BELOW ARE VIEWS OF SOME DIFFERENT PEOPLE

REGARDING IDBI FEDERAL LIFE INSURANCE CO LTD.

NAME COMPANY/INSTITUTION VIEWS

Sonu Nanda Durga Textiles (Kanpur) I have not heard about it
(Owner) earlier.
I think it require huge
promotion.
Mohd. Aquib GHS-IMR " I have not heard about
(Student) it earlier and lack of
awareness among the
people is the biggest
limitation of IDBI
Federal Life Insurance
Co Ltd according to me.
Advertisements done by
the company give people
the true picture of the
product and help them to
get an idea of the same
so I would suggest that
should enhance its
promotional strategies.
Shekhar Trivedi GHS-IMR “I have not heard about
(Associate Professor) it earlier”

Kunwar Milind Singh GHS-IMR “Though I am aware

(Associate Professor) about IDBI Bank and
Federal Bank but I have
not heard about IDBI
Federal Life Insurance

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

earlier as separate
financial institution and
neither I have seen its
advertisements.Company
should focus on print
and electronic media to
survive in this
competitive industry”
Deepak Sharma GHS-IMR "I have heard about it
(Associate Professor) earlier but have never
seen any advertisements
of it.Company should
focus on organising
events,tie up with banks
to increase its
awareness”

Dr Rakesh Premi GHS-IMR “I have not heard about

(Director) it.Company should
recommended that the
company strengthen
their print ads through
magazine and
newspapers.”
Upendra Singh IDBI FEDERAL LIFE “Make use of internet
(Manager Distributor) INSURANCE CO LTD. banking for increasing
sales and also for
promotion

These responses give us a clear picture that most of the respondents want
Company should enhance its Brand awareness level as well as product
awareness level with the help of integrated marketing communication

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

Field visit responses

The field visits gave me certain good responses which will really help IDBI
Federal Life Insurance Co Ltd. to enhance its awareness.

Name- Mr.Sharad kumar

Company/Organisation- Roopsee emporium (Kanpur)

Feedback-

Lack of awareness is the biggest hurdle for IDBI Federel.

Name- Mr. Eshaan Vij

Company/Organisation- A.K Marbles

Feedback-

I have not heard about it earlier neither I have come across any advertisement of
it before.People buy what they see often.So IDBI Federal should start focusing
on advertisements.

Name- L D Valecha

Company/Organisation- Advocate. (Kanpur)

Feedback-

I have heard about many life insurance companies but I was unaware about
IDBI Federal Life Insurance Co Ltd.

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

Name- Mr. Pranshu Purwar

Company/Organisation- Bank Manager(Kanpur)

Feedback-

IDBI should make its presence feel by regular advertisements in newspapers.I

have positive thinking for it

Name- Mr. Om Kakwani

Company/Organisation:- Medical Store (Kanpur)

Feedback-

Enhance your awareness.I have positive outlook for the company

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

QUESTIONS ASKED IN PERSONAL

INTERVIEW
1. HAVE YOU SEEN ADVERTISEMENT OF IDBI FEDERAL IN
PRINT MEDIA?

Advertisement in print media

yes
no
cant say

INTERPRETATION:
65% of respondants said “NO”
20% of respondants said “CANT SAY”
15% of respondants said “YES”

2. DO YOU THINK ADVERTISEMENT IS IMPORTANT FOR

MARKETING LIFE INSURANCE PRODUCT?

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

Is Advertisement imp for marketing

yes
no
cant say

INTERPRETATION: 80% Of the respondant said “YES”

3) DO YOU THINK RADIO CAN INCREASE AWARENESS?

radio to increase awareness

yes
no
cant say

INTERPRETATION:
80% Respondants said “YES”

4)DO YOU THINK TIE UP WITH BANKS CAN INCREASE IS A

GOOD MODE OF MARKETING LIFE INSURANCE PRODUCT?

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tie ups with bank

yes
no
cant say

INTERPRETATION:
70% respondents feel yes for it.

5) WHICH MODE DO YOU THINK IS BEST FOR MARKETING

INSURANCE PRODUCT?

mode of awareness

television
newspaper/news
Radio
Online Advertising

INTERPRETATION:
70% respondants think television the best mode.

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 IN TELEPHONIC CONVERSATIONS
1)70% people said they are not interested.
2)15% people disconnected the phone calls.
3)15% people had their phones switched off

FINDINGS
1)Lack of awareness among people for IDBI Federal Life Insurance Co Ltd.

2)Very high percentage of people have never came across the advertisements of
IDBI Federal Life Insurance Co Ltd.

3)People give great importance to brand image,premium rates and number of

options available in policies while buying.

4)People while buying policies are greatly influenced by friendsand word of

mouth.

5)Many respondants said they think advertisements in Television is the best

mode for promotion of any company.

6)Radio can increase awareness of IDBI FEDERAL.

7)Mostly people have bought life insurance policies from LIC.

8)”People buy what they see” that is why IDBI is lacking behind due to less
advertisements and promotion strategies.

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With the help of different responses I would

conclude by suggesting the following changes to be
made:
1) LIC is able to do monopoly business in lieu to the word “TRUST”.Thus IDBI
Federal needs to spread its name among the masses as a trust worthy company.
It should focus on a major issue of the parent company being a nationalized
bank i.e. IDBI Bank.

2) Advertising on National channel will help to tap rural consumer.

3) Camps should be organized in different areas to develop the sense of trust

and to make the people aware about the brand name.

4) Advertising near hospitals will induce people to buy insurance as it is the

placewhere people see battle between life and death on frequent bases thus
makingthem aware about the value of their life and lives of their loved ones.

5) Customers should be given stickers when they purchase policy and induce
them to put on their vehicle; this is the best mode of advertisement as it is free
of cost and has huge visibility.(if this would have been implied earlier,many
happy costumers would have done the publicity which the company cant, with
all its advertising budget.)

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6)People were having good knowledge about insurance companies because of

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

7) IDBI FEDERAL LIFE INSURANCE Co. Ltd. is highly concentrating on the

high income segment of the overall population as company starts its minimum
annual premium amount with rupees 12500 .Majority of the population consists
of middle or lower income population so it advisable that IDBIFEDERAL LIFE
INSURANCE Co. Ltd. must come up with marketing strategies which is useful
for getting the attention of general public.

8)People in general have been impressed by the marketing and advertising

campaigns of insurance companies. A high penetration of print , radio and
Television ad campaigns over the years is beginning to have it’s impact now.

9)Huge promotions in Radios,tie up with banks,frequent advertisements in news

and sports channel can enhance the awareness of IDBI FEDERAL to a greater
extent

10)IDBI Federal should launch many new policies as there are only 4 policies
currently available because people do see if number of options are available or
not.LIC and many more companies are offereing number of add ons.

At last I would like to say that I have positive outlook for the company.Regular
promotions can help IDBI FEDERAL to enhance its awareness and sales too.It
should add some different features in their policies to compete others.

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APPENDIX
QUESTIONNAIRE
A STUDY TO ENHANCE THE CUSTOMER AWARENESS OF IDBI
FEDERAL LIFE INSURANCE CO LTD IN INSURANCE SECTOR

Age Group 

o  18-25 yrs 
o  26-35 yrs
o  36-45 yrs
o  45-55 yrs
o  Above 55

Which field are you associated with? 

o  Service
o  Business
o  Investor
o  Academics

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

o  Others (             )

Annual Income 
o  Less than 3,00,000
o  Between 3,00,000 to 5,00,000
o  Between 5,00,000 to 8,00,000
o  Between 8,00,000 to 10,00,000
o  Above 10,00,000

Family Members 
o  2
o  4
o  6
o  More than 6

Have you taken any life insurance policy? 

o  Yes
o  No
If Yes,from which source did you come to know about life insurance?
o  Newspaper and Magazines
o  Television
o  Agent/Field Sales representive
o  Bank
o  Radio
o  Others (              )

If you are holding a life insurance policy,please mention the name of

the policy you have taken and the name of the company 

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

What prompted you to buy the life insurance policy from the
company named by you? (please rate them on scale of importance) 

Very Very
Low Neutral High
Low High

(a) Brand image of

the Company
(b) Premium Rates

(c)Policy Features
(d) Marketing
people(Agents)
insisted me to buy 
(e) Impressed by the
company‟s Ads and
promotion
(f)My
friend/acquaintances
have bought from this
company
(g) Desire to try out a
new company
(h )Any other (      )

What parameters do you look into before you take up a life insurance
policy? And tick the following parameter according to your
importance: 

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

Highly Least Not

Important Neutral
Important Important Important

(a)Premium
Charges
(b)Policy Term
(c)Number of
options
available(Complet
e product line)
(d)Policy Features
(e)Services (Pre
and post Sales)
(f)Accessibilty
(g)Company Image
and Trust
(h)Easy Claim
Are you aware about IDBI FEDERAL LIFE INSURANCE CO
LTD? 

o  Yes
o  No

Would you like to invest in IDBI FEDERAL LIFE INSURANCE CO

LTD? 
o  Yes
o  No

If Yes,what will make you to invest in IDBI FEDERAL LIFE

INSURANCE CO LTD?
o  Well known Brand Name
o  Growth Potential

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 IDBI FEDERAL LIFE INSURANCE CO LTD.

o  Popular Advertisement and Promotional Schemes.

o  High Guaranteed  Returns

Give your views for certain value additions you need from IDBI
FEDERAL LIFE INSURACE CO LTD? 

Will you ask others to go for IDBI FEDERAL LIFE INSURANCE CO

LTD? 

 Yes
 No

SUMMARY OF RESPONSES

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