An Internship project report on
“Consumer Buying Behaviour towards life
Insurance in Shriram Life Insurance”
Submitted by
Madhav Rajbanshi
19MBAJO228
Under the guidance of
Prof. Gopinath C B
Submitted in Partial Fulfilment of Master of Business Administration (MBA)
Course Jain deemed-to-be university
An Autonomous Institute under Jain university, Department of Business
Administration
CERTIFICATE
This is to certify that Mr. Rajbanshi is a bonafide student of Master of
Administration course at the Jain Deemed-to be-university for the academic
year 2019-2021.The ‘Internship report on consumer buying toward Life
Insurance in Shriram Life Insurance’, is prepared by him under the guidance of
Prof. Gopinath C B in degree fulfilment of requirement for the award of the
Degree of Master of Master of Business Administration of Jain deemed to be
university.
GUIDE CERTIFICATE
This is to certify that the Internship report entitled ‘‘ Consumer
Executive summary
Life of human is a completely essential asset and existence insurance is very
essential as it insures the life of human i.e. Offers protection to an individual
and circles of relatives when uncertainty arise. Life insurance is not only a
protection it is also a savings. Shriram Life Insurance plays a very critical
position in the person welfare by way of offering coverage to thousands and
thousands of people while the human life is at hazard or at uncertainty times.
The study at present has been selected with an objective with an objective of
examining the consumer behaviour and various factors affecting the buying
behaviour of life insurance in Shriram Life insurance. The data collected for the
study is a primary data and the sample size is 208 respondents. Insurance
policy should spread awareness about their policy, returns, premium goodwill
etc. And also they should have innovative products where this information was
provided by the previous research papers. Insurance is not only for tax saving
but also for financial security, risks, uncertainty etc.
CHAPTER-IOVERVIEW OF INDUSTRY
Industry Profile:
1.1 What is Insurance?
Insurance is a contract, that is represented by means 0f the policy wherein an
individual or entity receiving monetary safety or compensation in opposition
to losses from an insurance company. It is a contract between agent and
customer.
1.2 History of insurance:
In 1818, the insurance came into India i.e. in 18 th century. Oriental life
insurance Company was the first insurance Company which was started in
Kolkata was first started in European community was the first to bring Indian
policy. In 1871, it was setup in Bombay as Bombay Mutual Life Insurance
Society was established to serve and cover many Indians lives at normal
rates. In 1912, there was no regulation made in India to regulate the
insurance business and the insurance and Provident fund act was passed in
the year 1912. After the Independence, lot of growth was seen in the 20 th
century. India has 57 insurance agents, 24 are life insurance groups and 33
are not life insurance. One of the 24 life insurance companies is public and 23
are private. And 33 non-life insurance 1 is open and 32 are private. If
insurance company have to be started in India the license to be done and the
license costs Rs.12000 crores. In the year 1956, except corporate offices, LIC
of India had 5 zonal offices with 212 branch offices and 33 divisional offices.
In 1999, the industry felt that it needs to provide better services to customers
in order to improve their performance. For this, the IRDAI (Insurance
Regulatory and Development Authority of India) was introduced for setting
up an independent regulatory body. It was formed on 1999, headquartered
in Hyderabad and it become regulator. The chairman is Subhash Chandra
Kuntia with 10 members in a committee. They are responsible for regulating
and ensuring the growth of insurance business in India.
1.3 life insurance:
it is a policy where a policyholder can ensure the freedom for financial for
their family members after the death. It was started in the year 1956.
1.4 Types of life Insurance:
Term plan: It is a term plan which
Provides benefit for a specific period
of time I.e. from 40 years from the
policy purchase date. It is risk cover plan
and there is also an option where you
can add riders. And if the life insured will die,
then the sum assured might be given to the nominee.
Endowment plan: It is a life insurance polices which is payable to the
insured if he/she is alive till the policy maturity date. These endowment
plans also benefits like bonus monthly, which is paid in maturity or else
ton the nominee under the death benefit. It is also known as traditional
insurance and the risk involved is lower.
ULIP: In this, the part of insurance plan will go towards the mutual fund
investments and remaining will be going to the death benefits purpose.
An individual also can invest in different funds offered by the company
depending on his risk management or involved.
Whole life Insurance: It is not for a specified term; instead it covers the
whole life of an individual in this. The sum assured is decided when the
policy is being purchased and is paid to the nominee when the insured
person will die. In this, withdrawal can also be done after the premium
payment period.
Child’s Policy: It provides financial protection to the children throughout
their lives by investment + insurance policies. It helps to secure the
child’s future for their education and marriages. During the policy term,
if the insured child’s parent dies then the payment is done immediately
by the insurance company.
Money-Back: After the payment of policy, it provides certain percentage
on sum assured which is also known as survival benefit. They are also
eligible to receive.
Retirement plan: It is also called as a Pension plans. It is a policy where it
combines both investment and insurance. A little portion of amount is
used for the retirement purpose of the policyholder and the remaining
lump-sum amount or monthly payment will be given to the policyholder
when he retires.
1.5 List of Life Insurance Companies:
There are 24 Life Insurance Companies in India. They are as follows:
Life Insurance Companies in India
Company Name Founded Partners
Life Insurance corporation 1956 Government of India
of India
Aditya Birla Sun life 2000 Aditya Birla Group and 1sun Life
Insurance Financial Insurance Investment Inc.
HDFC Standard Life 2000 HDFC Ltd. Standard Life Ltd.
insurance
ICICI Prudential Life 2000 ICICI Bank Ltd. and Prudential
Insurance
Max New York Life 2000 Max India ltd. and Mitsui
insurance Sumitomo Insurance Co. Ltd.
Bajaj Allianz Life Insurance 2001 Bajaj Finserv Ltd. and Allianz SE
Exide Life Insurance 2001 Exide Industries Ltd.
Kotak Life Insurance 2001 Kotak Mahindra Bank Ltd. and old
mutual.
PNB MetLife Insurance 2001 PNB Bank Ltd., J&K Bank Ltd., M.
Pallonji and Company Private
Limited.
Reliance Life Insurance 2001 Reliance Capital and Nippon life
Insurance Co. Ltd.
SBI Life Insurance 2001 State Bank of India and BNP
Paribas Cardif.
Tata ALA Life Insurance 2001 Tata Group and American
International Assurance Company.
Aviva Life Insurance 2002 Darbar Invest Corp. and Aviva
International Holdings Inc.
Sahara Life Insurance 2004 Sahara India Pariwar
Shriram Life Insurance 2005 Shriram Group and Sanlam Group
Future General India Life 2007 Future Group and Assicurazioni
Insurance Generali.
AEGON life insurance 2008 Bennett, Coleman & Company and
Aegon India Holdings BV.
Bharti AXA Life Insurance 2008 Bharti Enterprises and AXA India
Holdings
Canara HSBC OBC Life 2008 Canara Bank and Oriental Bank of
Insurance Commerce and HSBC Insurance
Holdings Ltd.
DHFL Pramerica Life 2008 Dewan Housing Finance
Insurance Corporation Ltd. and Prudential
International Insurance Holdings
Ltd.
IDBI Federal Life Insurance 2008 IDBI Bank, Commercial Bank &
Federal Bank and Aegis Insurance
International NV.
Star Union Dai-Ichi Life 2008 Bank of India, Union Bank of India
Insurance and Dai-Ichi Life Insurance Co. Ltd.
IndiaFirst Life Insurance 2009 Bank of Baroda, Andhra Bank and
Company Ltd. Legal & General Middle East Ltd.
Edelweiss Tokio Life 2011 Edelweiss and Tokio Marine and
Insurance Nichido Fire Insurance Co. Ltd.
1.6 Private sector share is increasing in Life Insurance segment:
From many years, share in the private sector of life insurance segment has
been grown from 15% in FY 2004 to 55.7% in FY 2019.
1.7 Life Insurance market:
In India, Life Insurance has more growth. By 2020, they are expecting to have
35% of total savings in India. From FY 2012-2018, new business premium of life
insurance companies in India have raised 14.44% of CAGR.
CHAPTER-II
COMPANY PROFILE
2.1 Shriram Group:
Shriram group was founded on 5 th April, 1974. It is a Conglomerate Company and the founder is R.
Thyagarajan. It is headquartered in Chennai and the area serving is India. The number of employees present is
45000 with revenue of 75952.6 crores. It is a holding organization for the financial offering and insurance
entities. Their first business was chit fund business in Chennai which now became the conglomerate financial
services. Shriram Group is very keen in serving the large number of common people through customised
financial services. For more than 30 years they have been trying to provide services to small and medium
entrepreneurs in financial services from loans and chit funds. The founder of chairman was awarded the
“PADMABHUSAN” award the reputed title in the year 2013. This group is serving the southern part of India
with more than one crore customers.
The Shriram group subsidiaries are Shriram Venture Limited and Shriram Capital Limited.
Shriram Venture Limited: A holding company providing non-financial business
services including construction, real estate and insfrastructure.
Shriram Capital Limited: It is a holding company which provides financial services
and insurance entities. It was created primarily for the purpose of bringing synergy
between companies within the group, in addition to playing an important and
decisive role in leadership risk and development management. It is also the main
promoter of the two growing business in Shriram Groups i.e. the largest financing
the asset Shriram Transport Finance Company Limited and leader in Retail finance-
Shriram City Union Finance Limited. SCL is very important one because one business
it strengthens the leadership teams and gives direction to nurture growth into a
profitable business.
2.2 The Milestones of Shriram Group:
Shriram Capital Limited
1974 Shriram Chit Funds
Shriram Transport Finance Company in South India.
1979
Shriram City for sepcializing in Retail FInance.
1986
2005 Shriram Life Insurance was introduced.
2.3 The vision and mission statement:
“Serving the under-served”, “creating value at the bottom of the pyramid”, “Striving to
serve the largest number of common people”.
Th$e mantra followed at Shriram Group is “People First”.
2.4 Shriram Life Insurance:
Shriram Life Insurance is a private compamy and a conglomerate industry. It was established
in 2005 and the commencement of operations started in 2006 as Shriram Financial Services
Limited headquartered in Hyderabad with the partner Sanlam Group. The managing
Director and CEO is Mr. Casparus JH Kromhout, Chairman is MR. T.S. Krishna Murthy,
Managing Director is Smt. Akhila Srinivasan and Mr. Manoj Jain. It has a wide network of
over 550 offices in India. After the operations have started they made profits for the three
consecutive years and have beacome the only private insurance company which have
achieved distinction performance. Their main aim to offer plans of life insurance and
provide solutions which serve the wide location. In 2006, the financial services operations
was started in order to provide solutions to the financial plainning through mutual funds,
General insurance, deposits and Life insurance. When compared to the other industry, SLIC
is the most profitable made business in the country in the first 7 years of operations.
Shriram Life Insurance earned more than 40% of its business providing Life insurance for
“AAM ADMI”, a weak part of rural areas and individuals. SLIC stands for very efficient use of
capital and less cost of operations. They also have started Digital Marketing 2017. They have
11% growth in new business premium in FY 2018-19.
2.5 The vision and mission statement:
Reaching out to the “Common Man” with the more varieties of products and services which
would be helpful to the common man in his path of prosperity.
2.6 Partner of Shriram Life Insurance – Sanlam Group:
Their partner Sanlam Group, they are the 2 nd largest insurer in South Africa which was
established in 1818. There are 5 business clusters and 1 headquarters. The five business
clusters provide financial solutions to individuals and institutional clients such as Sanlam
Personal Finance(SPF), Sanlam Emerging market(SEM), Sanlam Investment Group(SIG),
Santam and Sanlam Corporate (SC). They have begun their association with Shriram Life
insurance in 2005. The Sanlam Group has over 26 percent of stake in Shriram Capital, the
holding company.
2.7 Benefits of Shriram Life Insurance:
The information of the document that should be provided is given in the website of Shriram
Life Insurance. Official website-sahriramlife.com/download-forms.
Personal Form: the form has to filled by the insured in offline or online i.e. written in
offline where the format has been approved by the authority, in order to enable the
insurer ton be protected from risk by taking good decision.
KYC( Know Your Customer): Use reliable and independent documents or information
to help identify and identify customers. KYC documents are Pen Card, Aadhar card,
Driving License, Voter ID, MNREGA Job card. MNREGA means it is Ghandi National
Rural Employment Government Authority.
