In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms In 1994, the committee submitted the report and some of the key recommendations included:
· Government stake in the insurance Companies to be brought down to 50% .
· Govern.\ment should take over the holdings of GIC and its subsidiaries so that .
· these subsidiaries can act as independent corporations .
· All the insurance companies should be given greater freedom to operate
The origin and practice of insurance is as ancient as human civilization.From Cave age till date, the story of evolution of mankind is in fact a saga of continuous search for security. His problems have been the same, though the form has changed with the social & economic circumstances. When man used to live in the caves, he used to search for security against animals because they could kill him while he was asleep. He was not at all sure if he could hunt every day & get his food. Because of the above insecurity he used to live in groups so that the other members of the tribe could come to help him in time of crisis. Later on, insurance was practiced in a different form.
Small contributions of food grains were collected from farmers, hoarded in the local temple premises to be released when there was a famine or other calamity. Today, insurance works on the same principle. But, with growing financial implications the process started demanding money rather than community contribution. The modern concept of insurance came to India with the arrival of Europeans. The first life Insurance company was established in India in 1818 as Oriental Life Insurance Company by Europeans for the welfare of widows of Europeans. It was strange that many of the Companies floated thereafter were looking after European interest and even charged extra premium on Indian lives. Bombay mutual life Assurance society Ltd. established in 1870 was the first to stop this discrimination. This was the year in which the first Insurance act was passed by the British parliament. The insurance business flourished thereafter.
Objectives of the Study
The project was undertaken to make people aware of the insurance agent as a career. With so many players in this industry and growing competition among the private players it was actually tough getting people recruited as an agent.
The main aim of the project was the following:-
1. To manage the sales force at IVL.
2. To explore the role of sales manager.
3. To get an instant overview of the insurance industry, its perspective, present scenarios and the competitors.
Scope of the Study
The study of potential of insurance business is concerned with market study i.e. research and fieldwork. This study is going to help the ING VYSYA Life Insurance to find out Sales promotion with other private companies. The study will help the company to assess their performance and improve it where it is lacking. Research work is a basic function carried out by each organization. The study of market potential of insurance is very helpful to find out who are the market leaders in private companies as well as overall analysis. Availability of time was also taken into account while deciding the particular method to meet the objectives. The entire study programmed was for the period of two months. The subject of the study was selected by looking the necessity and importance to find the market potential and give suggestions related to the topic.
ING LIFE PLUS
This Plan simplifies the process of taking unit linked insurance. You can choose a convenient policy term of 10, 15 or 20 years. Its regular premium payment for the full policy term enables you to get the benefits of systematic investment by paying your premiums at pre determined intervals throughout the policy term.You can also plan your investments to suit your preferences and risk profile. The regular premiums and top-up premiums paid by you, less charges are credited to an account called the ‘Fund Value’ and are used to purchase units in one or more Unit Linked Funds as per your choice. At any point in time, the Fund Value is represented by the number of Units multiplied by the respective Unit Price of the Units held from time to time under all the Unit Linked Funds under this Policy ING Life Plus is the easiest way of taking unit linked insurance. While it allows you to invest and manage your investments at your own pace as per your risk profile, its inbuilt Enhanced Protection Cover feature ensures that your life cover keeps increasing throughout the policy term and ensures that you and your family are well protected.
· You have the option of enhancing your cover at the end of the first and second year of taking your policy .
· You need not undergo any medical examination to avail of this plan. Even the Paperwork is minimal
· You can also avail of a policy loan after 3 years .
· You get a tax benefit under Section 80C & 10(10)D of IT Act .
· On survival up to the maturity date, you get the sum assured plus accumulated Bonuses.
· You can switch over your fund .
· In case of unfortunate death, your nominee will get the sum assured plus Accumulated bonuses.
Market Return Plan
You have always aspired for the best in life. And we help you achieve just that. With IVL Market Return plan you can have the twin advantage of insurance protection as well as reaping the benefits of investment growth. It is a flexible plan which works all through your life and meets the changing requirements like additional protection, liquidity through cash, option to invest in different asset class, steady golden years and many more.
Kay Features – ING Market Return Plan :
· Twin benefit of market linked return and insurance protection
· A Unit Linked Plan, different form traditional Life Insurance products, with maximum maturity age of 65 years
· Option to create your own portfolio depending on your risk appetite
· Choose form 5 different investment funds
· Flexibility to switch between funds
· Option to pay regular as well as single premium & Top-ups
· Option to package with Accidental riders
· Flexibility to increase the Sum Assured
· Liquidity through partial withdrawals
IC33 Life Insurance S. Bal Chandran (Insurance Institiute of India)
Life and Health Insurance Kenneth Black
Marketing Management by Philip Kotler