Project On The New India Assurance Com. By Sandeep vaishnav

THE NEW INDIA ASSURANCE COM. LTD

- 1 -


A Project Report On

CUSTOMER VIEW FOR MARKET POTENTIAL IN INVESTMENT

(With special reference to NEW INDIA ASSURENCE)

In The Partial Fulfillment Of TheBBA PROGRAM

2006-2009

Under the guidance of:

Mr. Anil Chouhan Prof. Anil BhattBranch Manager, SIBM, NathdwaraThe New India Assurance,Udaipur.

SUBMITTED BY:SANDEEP VAISHNAV

- 2 -


SHREENATHJI INSTITUTE OF BIO-TECHNOLOGY AND MANAGENT, NATHDWARA,

- 3 -


CERTIFICATE

- 4 -


ACKNOWLEDGMENT

- 5 -


ACKNOWLEDGMENT

I believe that no success is possible without teamwork. Many

people have made valuable contribution in making this project a

success.

I would like to thank my God , My parents and the entire staff

of SIM, Nathdwara, and entire staff of The new India Assurance,

Udaipur and my all friends for their support and cooperation extend

to me during the execution of the project.

Owe the successful completion of this project guide Pro. Anil

Bhatt for their personal attention and expert guidance provided to me

during the execution of the entire project, which enable me to

complete this challenging assignment.

sincerely express my gratitude to Mr. ANIL CHOUHAN, project

guide, "THE NEW INDIA ASSURANCE COMPANY" and Mr.

PARKASH JOSHI, for grating me the opportunity to be associate

with such a high repute. He always had been a great support. The

cooperation, knowledge and insight provided by him for the project

have been enormous. This project would not have been possible

without him.

- 6 -


SANDEEP VAISHNAV

INDEX

S. No. TOPIC PAGE NO.

1. EXECUTIVE SUMMARY 7

2. INTRODUCTION 9

3. COMPANY PROFILE 17

4. PRODUCT PROFILE 29

5. OBJECTIVE OF THE COM. 47

6. SCOPE OF STUDY 48

7. RESEARCH METHODOLOGY 49

8. INFORMATION & ANALYSIS 53

9. FINDINGS & CONCLUSION 57

10. LIMITATIONS 60

11. BIBLIOGRAPHY 60

12. ANNEXURES 61

- 7 -


Executive Summary

Organization- “THE NEW INDIA ASSURANCE COMPANY, UDAIPUR.”

Reporting officer- Mr. ANIL CHOUHAN, MANAGER OF THE NEW INDIA ASSURANCE COMPANY, Udaipur.

Faculty Guide- PROF. ANIL BHATT

Student Name- SANDEEP VAISHNAV

Objective- To study of Derivative Research on” CUSTOMER VIEW FOR MARKET POTENTIAL IN INVESTMENT”

Scope-

1. Sample for the research project were investor in Udaipur and Nathdwara. 2. Time period – 25-06-2008 to 10-08-2008

- 8 -


RESEARCH METHODOLOGY

Meaning Of Research Methodology-

1. Research design used was descriptive.

2. Data was collected by using interview technique using questionnaire as a

tool.

3. Sample size was 100.

4. Sampling technique used was random sampling.

Major Findings-

1. Performance liked by the respondents. The various performance

features they liked in the order of preference are as follows-

Consistency

Flexibility

Stability

Services

Securities

2. The Core features are as follows

3. Money Diversification

4. Risk and Return

- 9 -


ASSURANCE

Introduction- LO Assurance industry has always been a growth-oriented industry globally. On the Indian scene too, the assurance industry has always recorded noticeable growth vis-à-vis other Indian industries. The new India assurance Co. Ltd. was the first general assurance company to be established in India in 1850, which was a wholly British-owned company. The new India assurance company to be set up by an Indian was Indian Mercantile assurance Co. Ltd., which was established in 1907. There emerged many a assurance player on the Indian scene thereafter. The general assurance business was nationalized after the promulgation of General Insurance Business (Nationalization) Act, 1972. The post-nationalization general assurance business was undertaken by the assurance Corporation of India (GIC) and its 3 subsidiaries:

1. New India Assurance Company Limited

2. National Insurance Company Limited

3. United India Insurance Company Limited

Towards the end of 2000, the relation ceased to exist and the four companies are, at present, operating as independent companies.The Life assurance Corporation (AIC) was established on 01.09.1956 and had been the sole corporation to write the life assurance business in India. The Indian assurance industry saw a new sun when the assurance Development Authority invited the applications for registration as assurors in August, 2000. With the liberalization and opening up of the sector to private players, the industry has presented promising prospects for the coming future. The transition has also resulted into introduction of ample opportunities for the professionals including Chartered Accountants.

- 10 -


The Indian assurance industry is featured by the attributes: Low market penetration;

Ever-growing middle class component in population. Growth of consumer

Movement with an increasing demand for better assurance products;

Inadequate application of information technology for business. Adequate

Fillip from the Government in the form of tax incentives to the assured, etc.

The industry formations need to keep vigil on these characteristics of the

Indian market and formulate their strategies to entail maximum contribution to

the output of the sector.

The Indian life and non-life assurance business accounted for merely

0.42 percent of the world's life and non-life business in 1997. The figures of

the basic parameters of the industry's performance viz. assurance Density

and assurance Penetration also are evident of the hitherto existing low-yield

Indian market conditions.

The term "assurance Penetration" broadly measures the contribution of

the assurance industry in relation to a nation's entire economic productivity.

The figure of premium vis-à-vis the GDP of 1999 stood at 0.54 percent for

non-life assurance business and 1.39 percent for the life assurance business.

The term "assurance Density" reflects the assurance purchasing power. The

premium per capita in India amounted to US $ 2.40 for assurance and US $

6.10 for life assurance in 1999 but with the deregulation of the sector, a sea

change in the scene is most likely.

The assurance sector in India has come a full circle from being an open

competitive market to Nationalization and back to a liberalized market again.

- 11 -


Tracing the developments in the Indian assurance sector reveals the 360-

degree turn witnessed over a period of almost two centuries.

- 12 -


W CHARSTRUCTURE OF THE ASSURANCE INDUSTRY

The structure of the assurance industry comprises of the Operating

department, Administrative department and the finance department. The

Operating Department generally performs the basic functions pertaining to the

designing of products, marketing thereof, servicing the insured, the insured,

management of portfolio, etc.

The Administrative Department looks after the day-to-day affairs of the

company. The Finance Department backs the operations and administration of

the company by accounting for the transactions, streamlining the flow of funds,

materializing the management decisions, etc.

The Administration Department as well as the Finance Department,

usually, functions through in-house setup. The Finance Department functions in

the areas of accounting, financial and management reporting, budgeting and

controlling, etc. and thus renders enormous scope for finance professionals. The

new entrants in the assurance sector are likely to call for the services of the

Chartered Accountants for their financial setup requirements. The Chartered

Accountants have engaged themselves in the audit of assurance Companies

since long. With the transition in the insurance sector, the horizons for their

contribution have broadened.

There has, emerged a king-size pool of opportunities that the Chartered

Accountants can explore and apply their professional wisdom and experience to.

- 13 -


BASIC FUNCTIONS OF THE ASSURANCE INDUSTRY

1. Risk Perception and Evaluation:

The fundamental function of an insurer is to provide a cover against the detriment caused to the insured due to the happening of certain specified and agreed events. Thus, prior to providing such umbrella through a product, the insurer has to assess the risk involved in the transaction. The insurer has to identify the element of risk prevalent in the concerned industry or a particular unit. The perception of risk requires the study of variables through various methods including the application of scientific and statistical techniques and correlation thereof with the industry or unit under study in light of their basic environmental and infra-structural characteristics.

2. Designing the Insurance Product:On the basis of the risks perceived, the insurer develops a product to cover

the stipulated risks. While designing an insurance product, an insurer decides its cost to be charged from the insured in the form of premium, reduction thereof in certain cases like not lodging any claim during the previous covered period(s), suggesting the implementation of risk-mitigating measures, etc.

3. Marketing of the Product:

The core function of the marketing force of an insurance company is to generate awareness about the insurance products among the target market. But in the Indian scenario, where the insurance penetration is too low as compared to the other nations, the marketing force needs to perform the pro-active role in developing an insurance culture. It is through the efficiency of the sales force of an insurance company that the desirability and the success of a product are determined.

Adequate knowledge of the insurance industry, products and the modalities attached therewith. Further, the marketing personnel should be adequately backed by the back-office setup.

- 14 -


4. Selling of the Products:

The term selling in the context of Assurance industry connotes the

issuance of policies to the applicant proposer. The Assurance basically embodies

the covenant between the insurer and the insured wherein the former agrees to

indemnify the latter for the loss caused to him on the happening of the certain

agreed events up to a specified limit. The life insurance policy generally contains

the agreement whereby the insurer agrees to pay to the insured or the

beneficiary of the policy an agreed amount on the expiry of the term of the policy

or in the event of the death of the insured respectively. The additional benefits in

the shape of Riders viz. Accidental Death Benefit, Double Sum Assured, Critical

Illness benefits; Waiver of Premiums, etc. can also be appended with the policy

on the payment of an additional premium.

5. Management of Portfolio:

The management of the portfolio includes the assessment of requirement

of funds, identification of various sources of finance, the evaluation of the

sources in the light of their cost, availability, timing, etc., reconciling the features

of various sources with the needs of the company and the selection of

appropriate conjunction of sources. The insurer possesses huge amount of

funds, which need proper management. The management of the portfolio of an

insurance company requires the identification of investment avenues, evaluation

thereof and the selection of the most appropriate mix of alternatives where the

funds of the company can be invested. The selection requires the knowledge of

finance related functions and techniques apart from the in-depth know of the

patterns of requirement of funds in the company as well as in the industry as a

- 15 -


whole.

TYPES OF ASSURANCE SCHEMES-

There are a wide variety of assurance schemes that cater to your needs, whatever your age, financial position, risk tolerance and return expectations. Whether as the foundation of your investment programmed or as a supplement, assurance schemes can help you meet your financial goals?

(A) By Structure

Open-Ended Scheme

These do not have a fixed maturity. You deal with the assurance for your investments and redemptions. The key feature is liquidity. You can conveniently buy and sell your units at Net Asset

Value(NAV) related prices, at any point of time.

Close-Ended Schemes

Schemes that have a stipulated assurance period (ranging from 2 to 15 years) are called close ended schemes. You can invest in the scheme at the time of the initial issue and thereafter you can buy or sell the units of the scheme on the stock exchanges where they are listed. The market price at the stock exchange could vary from the schemes on account of demand and supply situation, unit holders' expectations and other market factors.

One of the characteristics of the close-ended schemes is that they are generally traded at a discount to NAV; but closer to maturity, the discount narrows. Some close-ended schemes give you an additional option of selling your units to the assurance company through periodic repurchase at NAV related prices. SEBI Regulations ensure that at least one of the two exit routes are provided to the investor under the close ended schemes.

Interval Schemes

- 16 -


These combine the features of open-ended and close-ended schemes. They may be traded on the stock exchange or may be open for sale or redemption during predetermined intervals at NAV related prices.

(B) By Investment Objective

Growth Schemes

Aim to provide capital appreciation over the medium to long term. These schemes normally invest a majority of their funds in equities and are willing to bear short term decline in value for possible future appreciation.

These schemes are not for investors seeking regular income or needing their money back in the short term.

Ideal for:

Investors in their prime earning years. Investors seeking growth over the long term.

Income Schemes

Aim to provide regular and steady income to investors. These schemes generally invest in fixed income securities such as bonds and corporate debentures. Capital appreciation in such schemes may be limited.

Ideal for:

Retired people and others with a need for capital stability and regular income.

Investors who need some income to supplement their earnings.

Balanced Schemes

- 17 -


Aim to provide both growth and income by periodically distributing a part of the income and

Capital gains they earn. They invest in both shares and fixed income securities in the proportion indicated in their offer documents. In a rising stock market, the NAV of these schemes may not normally keep pace or fall equally when the market falls.

Ideal for:

Investors looking for a combination of income and moderate growth.

Money Market / Liquid Schemes

Aim to provide easy liquidity, preservation of capital and moderate income.

These schemes generally invest in safer, short term instruments such as treasury

bills, certificates of deposit, commercial paper and inter bank call money. Returns

on these schemes may fluctuate, depending upon the interest rates prevailing in

the market.

Ideal for:

Corporate and individual investors as a means to park their surplus funds

for short periods or awaiting a more favorable investment alternative.

Other Schemes-

Tax Saving Schemes (Equity Linked Saving Scheme - ELSS).

Special Schemes-

- 18 -


Fixed Maturity Plans

Exchange Traded Funds (ETFs)

Capital Protection Oriented Schemes

Gold Exchange Traded Funds (GETFs)

- 19 -


COMPANY PROFILE

OF

THE NEW INDIA ASSURANCE COM. LTD.

- 20 -


COMPANY PROFILE

About - New India Assurance Company Limited

New India Assurance Company is a leading global insurance group, with offices and branches throughout India and various countries abroad. The company services the Indian subcontinent with a network of 1068 offices, comprising 26 Regional offices, 393 Divisional offices and 648 branches. With approximately 21000 employees, New India has the largest number of specialist and technically qualified personnel at all levels of management, who are empowered to underwrite and settle claims of high magnitude.

New India has been rated "A-" (Excellent) by A.M.Best Co., making it the only Indian insurance company to have been rated by an international rating agency. Rating based on following factors:Superior Capital Position Strong Operating Performance

Only Company to develop significant International operations, long record of successful trading outside India. Shri M. D. Mallaya, Chairman & Managing Director, Bank of Baroda, has been appointed as Director The New India Assurance Company limited.

Since its inception in 1994, has emerged as TATA Financial Services Inc. One of India's leading financial managing assets of a large investor base. The fund offers a range of investment options, which include diversified and sector specific equity schemes, fund of fund schemes, hybrid and monthly income funds, a wide range of debt and treasury products and offshore funds.

New India Assurance Company Limited follows a long-term, fundamental research based approach to investment. The approach is to identify companies, which have excellent growth prospects and strong fundamentals. The fundamentals include the quality of the company's management, sustainability of its business model and its competitive position, amongst other factors TATA Financial Services Inc. Company has one of the largest team of research analysts in the industry, dedicated to tracking down the best companies to invest in.

TATA Financial Services Inc. Strives to provide transparent, ethical and research-based investments and wealth management services.

International presence

Overseas operations commenced in 1920. Operations in 24 countries in the year 2004-05. Network of 19 Branches, 12 Agencies, 2 Associate companies

- 21 -


and 2 Subsidiary companies in the year 2004-05. Overseas Premium of Rs. 892.35 cores in the year 2004-05, which accounts for more than 80% of total overseas premium in India.

Company Strengths

Largest number of Offices - In India and Abroad Trained and technically qualified staff 1068 fully computerized offices across India. "A-" (Excellent) rating by A.M.Best & Co (Europe) First domestic company to be rated by an International Rating Agency Rating based upon following factors: Superior capital position Strong operating performance Strong market position Only company to develop significant International operations, long record of successful trading outside India

Pioneers

First company to set up an Aviation Insurance Department in 1946. First company to handle the Hull Insurance requirements of the Indian

Shipping Fleet. First company to establish its own Training School. First company to introduce the concept of 'Model Office Training'. First company to create department in Engineering insurance.

VisionTo be the most trusted name in investment and wealth management, to be

the preferred employer in the industry and to be a catalyst for growth and excellence of the asset management business in India. The vision is to make assurance Company the dominant new insurer in the life insurance industry. This it hopes to achieve through our commitment to excellence, focus on service, speed and innovation, and leveraging our technological expertise. The success of this organization will be founded on its strong focus on values and clarity of purpose. These include:• Understanding the needs of customers and offering them superior products and

• To be the first choice insurer for customers • To be the preferred employer for staff in the insurance industry. • To be the number one insurer for creating shareholder value.• Leveraging technology to service customers quickly, efficiently and conveniently

- 22 -


MissionGOAL- THE PHILOSOPHICAL GOAL. The assurance Company collects money in the form of premium from individuals (A, B, C & D). The money collected from people is used to meet one person's calamity. The assurance Company enters into the process of canalizing by disbursing the amount collected into the command economy. Thus a significant part of the activities of the insurance industry of an economy entails mobilization of domestic savings and its subsequent disbursal to investors. The main risk faced by the assurance company is when all the Assurors claim for the reimbursement at the same time. This situation is very rare to occur, and is one of the major threat that the assurance company faces in its business operations.

To provide financial security to individuals, trade, commerce and all other segments of the society by offering insurance products and services of high quality at affordable

To consistently pursue investor's wealth optimization by achieving superior and consistent investment results. To develop general insurance Business in the best interest

Creating a conducive environment to hone and retain talent.

Providing customer delight. Institutionalizing system-approach in all aspects of functioning. Upholding highest standards of ethical values at all times.

Values Highest priority to customer needs High standards of public conduct Transparency in operations.

- 23 -


Company PerformanceNew India Assurance Company is the largest non-life insurer in

India. The financial strength of the Company is reflected from the following figures:-

(Rs. in Crores)

YearGross

Premium(in India)

Gross Premium(Outside

India)

Net Premium (Global)

Net Profit (Global)

Total Assets

(Global)

Net Worth (Global)

2007-2008 5276.91 874.55 4914.28 1401.13 31944.14 6972.80 2006-2007 5017.20 919.58 4751.76 1459.95 27444.57 5972.55 2005-2006 4791.49 884.05 4342.66 716.38 27025.58 4706.87 2004-2005 4210.81 892.35 3895.11 402.23 19827.19 4161.69 2003-2004 4045.68 875.79 3634.94 590.21 17510.44 3735.22 2002-2003 3921.24 891.55 3516.43 255.81 12984.75 3404.00 2001-2002 3512.33 685.73 3068.23 142.00 12273.02 3189.39 2000-2001 3041.17 451.88 2671.48 173.54 8292.00 3067.39 1999-2000 2979.53 327.00 2477.45 287.29 7664.71 2859.86 1998-1999 2729.48 288.16 2186.92 375.00 6727.72 2524.23 1997-1998 2433.73 254.04 1945.00 470.94 6071.67 1462.52

BUSINESS FOCUS

The business focus is to position themselves as a leading corporate &

retail insurance company catering to the needs of our customers.

At General Assurance, the guiding principles are customer service and client

satisfaction. All efforts are directed towards understanding the culture, social

environment and individual insurance requirements of the customers so that they

can cater to their varied needs.

- 24 -


They are working closely with leading intermediaries including corporate

agents; motor dealers; agents; banks; associations and other intermediaries to

focus on the corporate and retail business.

Assurance leverages the customer base and expertise of Tata Auto Ltd.

They are technology driven and strive to set up world-class technological

infrastructure. This will include a renowned insurance software; networking of all

offices and intermediaries as well as the ability to interface with customers via all

media.

Overview-

The new India assurance Co. charted a growth of 73.04% during the year

with the asset under management (AUM) as on March 31, 2008 increasing to Rs.

44863.89 crores from a level of Rs. 21,047 crores as on March 31, 2007. Debt &

Cash Schemes, together, grew by around 90% in this fiscal year. The Investor

base of the Fund grew from 11, 45,345 to 18, 90,102 in this fiscal year.

The new India assurance Co.- 3 & 5 Year Plan, a close ended capital

protection oriented scheme was launched on June 20, 2007 with an objective to

seek capital protection by investing in high quality fixed income securities

maturing in line with the tenure of the scheme and seeking capital appreciation

by investing in equity and equity related instruments.

Also, The new India assurance Co. Value, a 3-year close ended

diversified equity scheme with an automatic conversion into an open-ended

scheme upon maturity to generate consistent long-term capital appreciation by

investing predominantly in equity and equity related securities by following value

investing strategy, was launched on January 17, 2008.

- 25 -


The new India assurance Equity Fund – Plan A & B, open-ended

diversified equity scheme with an objective to generate long-term growth of

capital, by investing predominantly in a diversified portfolio of equity and equity

related securities in the domestic and international markets, was launched

September 17, 2007. The new India assurance Co. Life Special Situations an

open-ended diversified equity scheme with an objective to generate long-term

capital by investing in a portfolio of equity and equity related securities. The

scheme would follow an investment strategy that would take advantage of

Special Situations & contrarian investment style.

The scheme was launched on December 17, 2003. The new India

assurance Co. Life Long Term Advantage Fund- Series 1; a 3-year close ended

Small and Midcap equity scheme with an automatic conversion into an open-

ended scheme upon maturity which seeks to generate consistent long-term

capital appreciation by investing predominantly in equity and equity related

securities of companies considered to be small and mid cap.

The Scheme may also invest a certain portion of its corpus in fixed income

securities including money market instruments, in order to meet liquidity

requirements from time to time. The scheme was launched on May 31, 2007. We

also launched 35 Fixed Term Plans (FTPs) of various maturities in this fiscal

year. On the Debt side most of the mobilizations were concentrated in FTPs.

Consistency:

We strive to deliver consistent results through our value-based investing

methodology, keeping alive the credo of the late doyen of the TATA Group, Mr.

Sir Dorab Tata that money received from the people should go back to them

several times over.

Flexibility:

- 26 -


The new India assurance offers investors a broad range of managed

investment products in various asset classes and risk parameters, with

operational flexibility to suit their varied investment needs.

Stability:

Our commitment to the highest quality of service and integrity is the

foundation upon which we build trust with our clients.

Service:

We offer a wide range of services to assist investors have a fulfilling and

rewarding financial planning experience with us. We have designed our services

keeping in mind the needs of our investors, giving them a smooth and hassle-

free financial planning process.

A Proud Pedigree

The new India assurance is a part of the Govt. of India, one of India's

largest and most respected industrial groups, renowned for its adherence to

business ethics.

The Group has always believed in returning wealth to the society that it

serves. Thus, nearly two-thirds of the equity of Tata group, the Group's promoter

company, is held by philanthropic trusts, which have created a host of national

institutions in the natural sciences, medical care, energy and the arts. The trusts

also give substantial annual grants and endowments to deserving individuals and

institutions in the areas of education, healthcare and social uplift.

By combining ethical values with business acumen, globalization with

national interests and core businesses with emerging ones, the Tata Group aims

to be the largest and most respected global brand from India. This way, it fulfils

its long-standing commitment to improving the quality of life of its stakeholders.

- 27 -


Leadership with Trust

Our purpose at The new India assurance is to improve the quality of life of

the communities we serve. We do this by attaining leadership positions in sectors

of national economic significance, to which the Group brings a unique set of

capabilities.

This requires us to grow aggressively in focused areas of business.

Our heritage of returning to society what we earn evokes trust among

consumers, employees, shareholders and the community. It is an ongoing

process, continuously enriched by the formalization of the high standards of

behavior that we expect from employees and companies.

The Tata name is a unique asset, representing leadership with trust.

Leveraging this asset to enhance Group synergy and becoming globally

competitive is the route to sustained growth and long-term success.

RURAL-URBAN MIX CUSTOMER VIEW”S

It must be borne in mind that India is a predominantly rural country and will

continue to be so in the near future. New players may tend to favor the "creamy"

layer of the urban population. But, in doing so, they may well miss a large chunk

of the insurable population. A strong case in point is the current business

composition of predominant market leader – the Life Insurance Corporation of

India. The lion's share of its new business comes from the rural and semi-rural

markets. In a country of 1 billion people, mass marketing is always a profitable

- 28 -


and cost-effective option for gaining market share. The rural sector is a perfect

case for mass marketing.

Competition in rural areas tends to be "kinder and gentler" than that in

urban areas, which can easily be termed cutthroat And the generally smaller

policy amounts in rural areas would be more than offset by the higher volume

potential in these areas in contrast with urban areas. Identifying the right agents

to harness the full potential of the vibrant and dynamic rural markets will be

imperative.

Rural insurance should be looked upon as an opportunity and not an

obligation. A smaller bundle of innovative products in sync with rural needs and

perception and an efficient delivery system are the two aspects that have to be

developed in order to penetrate the rural markets.

History-

History of The New India Assurance Company Limited-

Incorporated on July 23rd, 1919 Founded by Sir Dorab Tata in 1919, New

India is the first fully Indian owned insurance company in India.

New India was a pioneer among the Indian Companies on various fronts,

right from insuring the first domestic airlines in 1946 to satellite insurance in

1980. The latest addition to the list of firsts is the insurance of the INSAT-2E.

With a wide range of policies New India has become one of the largest

non-life insurance companies, not only in India, but also in the Afro-Asian region.

These consisted of LIC, GIC and public-sector bank backed Indian mutual

funds. SBI Mutual fund was the first of this kind. 1981 saw the entry of private

sector players on the Indian Mutual Funds scene. Mutual fund regulations were

revised in 1990 to accommodate changing market needs.

- 29 -


With the Sensex on a scorching bull rally, many investors prefer to trade

on stocks themselves. Mutual funds are more balanced since they diversify over

a large number of stocks and sectors.

In the rally of 2000, it was noticed that mutual funds did better than the

stocks mainly due to prudent fund management based on the virtues of

diversification.

First Phase – 1919-85 Stabilized

Unit Trust of India (UTI) was established on 1919 by an Act of

Parliament. It was set up by the Reserve Bank of India and functioned under the

Regulatory and administrative control of the Reserve Bank of India. In 1928 UTI

was de-linked from the RBI and the Industrial Development Bank of India (IDBI)

took over the regulatory and administrative control in place of RBI. The first

scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had

Rs.6, 700 crores of assets under management

Second Phase – (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by

public sector banks and Life Insurance Corporation of India (LIC) and General

Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI

Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec

87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov

89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC

established its mutual fund in June 1989 while GIC had set up its mutual fund in

December 1990. At the end of 1993, the mutual fund industry had assets under

management of Rs.47,004 crores.

- 30 -


Third Phase – (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the

Indian mutual fund industry, giving the Indian investors a wider choice of fund

families. Also, 1993 was the year in which the first Mutual Fund Regulations

came into being, under which all mutual funds, except UTI were to be registered

and governed. The erstwhile Kothari Pioneer (now merged with Franklin

Templeton) was the first private sector mutual fund registered in July 1993

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more

comprehensive and revised Mutual Fund Regulations in 1996. The industry now

functions under the SEBI (Mutual Fund) Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign

mutual funds setting up funds in India and also the industry has witnessed

several mergers and acquisitions. As at the end of January 2003, there were 33

mutual funds with total assets of Rs. 1, 21,805 crores. The Unit Trust of India

with Rs.44, 541 crores of assets under management was way ahead of other

mutual fund.

Fourth Phase – since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963

UTI was bifurcated into two separate entities. One is the Specified Undertaking of

the Unit Trust of India with assets under management of Rs.29,835 crores as at

the end of January 2003, representing broadly, the assets of US 64 scheme,

assured return and certain other schemes. The Specified Undertaking of Unit

Trust of India, functioning under an administrator and under the rules framed by

- 31 -


Government of India and does not come under the purview of the Mutual Fund

Regulations.

- 32 -


Product Profile

- 33 -


Product Profile

A. Products & Policy

1. Commercial Products Policy

1.1 Jewellers Block Policy

1.2 Bankers Indemnity Policy

1.3 Shopkeepers Policy

1.4 Marine Cargo Policy

1.5 Plate Glass Insurance

1.6 Special Contingency Policy

1.7 Neon Sign Insurance

1.8 Multi Peril Policy for L.P.G. Dealers

1.9 Fidelity Guarantee Insurance Policy

1.10 Marine Hull Policy

1.11 Aviation Insurance

2. Personal Products Policy

2.1. Pravasi Bharatiya Bima Yojana Policy

2.2. Personal Accident Policy

2.3. Householders Policy

2.4. Motor Policy

2.5. Money Insurance

2.6. Rasta Apatti Kavach (Road Safety Insurance)

2.7. TV/VCR/VCP Insurance

- 34 -

http://www.niacl.com/per-tv.asp

http://www.niacl.com/per-rasta.asp

http://www.niacl.com/per-money.asp

http://www.niacl.com/per-motor.asp

http://www.niacl.com/per-house.asp

http://www.niacl.com/per-accd.asp

http://www.niacl.com/per-pravasi.zip

http://www.niacl.com/comm-aviation.asp

http://www.niacl.com/comm-marine.asp

http://www.niacl.com/comm-fidelity.asp

http://www.niacl.com/comm-multi.asp

http://www.niacl.com/comm-neon.asp

http://www.niacl.com/comm-cont.asp

http://www.niacl.com/comm-plate.asp

http://www.niacl.com/comm-cargo.asp

http://www.niacl.com/comm-shop.asp

http://www.niacl.com/comm-banker.asp

http://www.niacl.com/comm-jewel.asp


2.8. Mobile/Cellular Phone Insurance

2.9. Other Personal Insurance

3. Liability Policy

3.1. Public Liability Policy

3.2. Products Liability Policy

3.3. Professional Indemnity Policy

3.4. Directors and Officers Liability Policy

3.5. Lift (Third Party) Insurance

3.6. Employers' Liability Policy

3.7. Carrier's Liability Insurance

3.8. Liability Insurance Act Policy

3.9. Golfers Indemnity Insurance

4. Industrial Policy

4.1. Fire Policy

4.2. Burglary Policy

4.3. Machinery Breakdown Policy

4.4. Electronics Equipment Policy

4.5. Consequential Loss Policy

4.6. Contractors All Risk Policy

4.7. Marine cum Erection / Storage cum Erection Policy

4.8. Advanced Loss of Profit / Delay in Startup Policy

4.9. Contractor Plant and Machinery Policy

4.10.Mega Package Policies

5. Social Policy

5.1. Universal Health Insurance Scheme

- 35 -

http://www.niacl.com/social-universal.asp

http://www.niacl.com/inds-mega.asp

http://www.niacl.com/inds-plant.asp

http://www.niacl.com/inds-advance.asp

http://www.niacl.com/inds-marine.asp

http://www.niacl.com/inds-contract.asp

http://www.niacl.com/inds-cons.asp

http://www.niacl.com/inds-electronics.asp

http://www.niacl.com/inds-machinery.asp

http://www.niacl.com/inds-burglary.asp

http://www.niacl.com/inds-fire.asp

http://www.niacl.com/liab-golf.asp

http://www.niacl.com/liab-insact.asp

http://www.niacl.com/liab-carrier.asp

http://www.niacl.com/liab-employer.asp

http://www.niacl.com/liab-lift.asp

http://www.niacl.com/liab-director.asp

http://www.niacl.com/liab-prof.asp

http://www.niacl.com/liab-prod.asp

http://www.niacl.com/liab-pub.asp

http://www.niacl.com/per-other.asp

http://www.niacl.com/per-mobile.asp


5.2. Jan Arogya Bima Policy

5.3. Raj Rajeshwari Mahila Kalyan Yojana

5.4. Bhagyashree Child Welfare Policy

5.5. Janata Personal Accident Insurance

5.6. Student Safety Insurance

5.7. Ashrya Bima Yojana

5.8. Rural Insurance

THE TOTAL PRODUCT CONCEPT

The Total Product Concept (TPC), which implied that a product had three

levels of features and the consumption, was in totality.

LEVEL 1:

Core Product:

In the Insurance Industry the core product is the policy that provides

protection to the consumers against the risks. This is the main reason for which

the Insurance Company is in existence. It provides protection by way of various

riders viz. Accidental Death Benefit, Double Sum Assured, Critical Illness

benefits, Waiver of Premiums, etc.

On the basis of the risks perceived, the insurer develops a product to

cover the stipulated risks. While designing an insurance product, an insurer

decides its cost to be charged from the insured in the form of premium, reduction

thereof in certain cases like not lodging any claim during the previous covered

period(s), suggesting the implementation of risk-mitigating measures, etc. The

features of a product should be flexible enough to provide for the determination

of premiums, rebates, additional premiums, etc. depending upon the risk

- 36 -

http://www.niacl.com/social-bima.asp

http://www.niacl.com/social-student.asp

http://www.niacl.com/social-janata.asp

http://www.niacl.com/social-child.asp

http://www.niacl.com/social-mahila.asp

http://www.niacl.com/social-arogya.asp


benchmarks as determined.

LEVEL 2:

Formal Product:

When the customers expectations grow synchronized with increased

competition the marketer offers some tangibility to the existing core product to

differentiate itself from the competitors.

1. Brand:

In order to distinguish itself from the competitors, the Insurance Company

gives a brand name to its policy. This brand name gives an identity to the

product (policy) offered by the insurance company.

2. Attributes:

Just giving a brand name to the policy may not be enough for the

insurance company to distinguish its offerings. The product offering must also

have attributes that will attract the consumers to take the policy. The attributes

must suit and satisfy the needs wants and desires of the various types of

consumers that the company is targeting at.

Thus ICICI's investment plans suit the consumers who want to secure

their family through insurance or invest money for growth. And its retirement

plans suit the ones who want to enjoy their fruits of labor after retirement or want

to go for a dream vacation.

3. Instruction Manual:

- 37 -


To make the service consumption easier for the consumers, the

instruction manual with the policy becomes very important. The instruction

manual gives an overview to the consumers as to how to go on with the filling of

the application form. It also gives information about the various formalities that

have to be adhered to at the time of submission of the application form.

LEVEL 3:

Augmented product:

With further expectation of the consumer – again synchronized with

intense competition – marketers offer more and more intangible features.

1. Post-sales service:

The insurance company must not consider it as the end of the service

providing the consumer has taken once the policy. The functions of an insurance

company include the provision of the Post-sales services to the consumer.

Among the services rendered by the insurance company is the service of

processing and release of claims. The insurance company needs to verify the

accuracy of the facts presented in relation to the insurance claim and the

documents produced in support thereof.

2. Delivery points:

The delivery points can be the branches that the insurance company has

at the discretion of the of the consumers' location. The delivery points can also

be mobilized with the presence of the insurance agents. The agents can cover a

wide area and get in contact with the consumers to provide the service to him.

3. Customer education and training:

- 38 -


The customer education and training is very important for the insurance

company. The agents play a vital role in this context. The customer can be

educated on various benefits that can be accrued in his future life by taking a

policy. This is where the agents' communication skills come into the picture. The

insurance company has to play an active role in enabling the agents to impart

the best customer education through appropriate training given to the agents.

4. Customer complaint management:

Customer complaints management with regards to delay in discharge of

claims must be effectively handled by the insurance company to have

competitive edge over its competitors. The complaint management will help the

company to get the consumers closer to the organization as the consumers feel

that their grievances are taken care of.

Thus LIC has an online feedback system where the consumers of the

policy can register their grievances.

5. Payment options:

The insurance company can offer payment options to the consumers with

regards to payment of premium – the mode of payment and the period within

which the premium amount has to be paid.

- 39 -


* India’s Offices

Corporate

Corporate Head office Address:

The New India Assurance Co. Ltd.

87, M.G. Road, Fort,

Mumbai 400 001.

- 40 -


Domestic offices

Ahmedabad

Bangalore

Baroda

Bhopal

Bhubaneshwar

Chandigarh

Chennai

Coimbatore

Delhi RO I

Delhi RO II

Ernakulam

Guwahati

Hyderabad

Jaipur

Kanpur

Kolkata

Ludhiana

Mumbai RO I

Mumbai RO II

Mumbai RO III

Mumbai RO IV

Nagpur

Patna

Pune

Surat

Vishakhapatnam

- 41 -

http://www.niacl.com/vizag.asp

http://www.niacl.com/surat.asp

http://www.niacl.com/pune.asp

http://www.niacl.com/patna.asp

http://www.niacl.com/nagpur.asp

http://www.niacl.com/mumbai-ro4.asp




http://www.niacl.com/ludhiana.asp

http://www.niacl.com/kolkata.asp

http://www.niacl.com/kanpur.asp

http://www.niacl.com/jaipur.asp

http://www.niacl.com/hyderabad.asp

http://www.niacl.com/guwahati.asp

http://www.niacl.com/ernakulam.asp

http://www.niacl.com/delhi-ro2.asp

http://www.niacl.com/delhi-ro1.asp

http://www.niacl.com/coimbatore.asp

http://www.niacl.com/chennai.asp

http://www.niacl.com/chandigarh.asp

http://www.niacl.com/bhubaneshwar.asp

http://www.niacl.com/bhopal.asp

http://www.niacl.com/baroda.asp

http://www.niacl.com/bangalore.asp

http://www.niacl.com/ahmedabad.asp


Overview of Product- At The new India assurance Company, we believe that your investment

needs depend on personal and financial goals. Identifying your financial goals is

the key to achieving the big things in your life, be it your child's education or a

carefree and comfortable retired life.

After identifying and defining your financial goals, you now need to plan

for each of them in an organized and a professional way. Investment experts

around the world advise instruments like equity funds and stocks for long-term

(more than 5 years), income funds for medium-term and liquid funds for short-

term needs.

The investment matrix here depicts the entire available variety of

investment options. Those at the top provide for a greater opportunity for long-

term capital growth while those at the bottom take care of current income and

reasonable return & liquidity. Tata Fund offers a wide range of funds for different

investment instruments designed to cater to your individual profile and life-stage.

Systematic Investment Plan

The Systematic Investment Plan (SIP) is a simple and time honored

investment strategy for accumulation of wealth in a disciplined manner over long

term period. The plan aims at a better future for its investors as an SIP investor

gets good rate of returns compared to a one time investor.

A specific amount should be invested for a continuous period at regular

intervals under this plan. SIP is similar to a regular saving scheme like a

recurring deposit. It is a method of investing a fixed sum regularly in a mutual

fund.

SIP allows the investor to buy units on a given date every month. The

investor decides the amount and also the mutual fund scheme.

- 42 -


While the investor's investment remains the same, more number of units

can be bought in a declining market and less number of units in a rising market.

The investor automatically participates in the market swings once the option for

SIP is made.

SIP ensures averaging of rupee cost as consistent investment ensures

that average cost per unit fits in the lower range of average market price. An

investor can either give post dated cheques or ECS instruction and the

investment will be made regularly in the mutual fund desired for the required

amount. SIP generally starts at minimum amounts of Rs.1000/- per month and

upper limit for using an ECS is Rs.25000/- per instruction. For instance, if one

wishes to invest Rs.1, 00,000/- per month, then they need to do it on four

different dates.

Fund Product are divided in following scheme

Pure value fund Income plus

EF Balance fund Income fund

Frontline Eqt. Fund 95'Fund Short term opportunity

Midcap fund Monthly Income fund

Tax Relief -96 Asset allocation fund Dynamic Bond fund

Special situation fund Protection oriented Gilt plus liquid plan

Inter Equity fund fund Govt. security fund

Top 100 fund Liquid plus

Advantage fund Term advantage fund

Short term fund

series-1 Floating rate fund

Long term advantage fund Cash fund

Dividend yield plus

Tax plan

Index fund

- 43 -


Commodity equity fund

TYPES OF SCHEMES

Wide variety of Fund Schemes exists to cater to the needs such as

financial position, risk tolerance and return expectations etc.

The table below gives an overview into the existing types of schemes in

the Industry

FREQUENTLY USED TERMS

Net Asset Value (NAV)

Net Asset Value is the market value of the assets of the scheme minus its

liabilities. The per unit NAV is the net asset value of the scheme divided by the

number of units outstanding on the Valuation Date.

Sale Price

Is the price you pay when you invest in a scheme? Also called Offer Price.

It may include a sales load.

Repurchase Price

Is the price at which a close-ended scheme repurchases its units and it

may include a back-end load. This is also called Bid Price.

Redemption Price

Is the price at which open-ended schemes repurchase their units and

close-ended schemes redeem their units on maturity. Such prices are NAV

related.

Sales Load

Is a charge collected by a scheme when it sells the units. Also called,

'Front-end' load. Schemes that do not charge a load are called 'No Load'

schemes.

- 44 -


Repurchase or 'Back-end’ Load

Is a charge collected by a scheme when it buys back the units from the

unit holders.

- 45 -


Last 10 year

- 46 -


PERFORMANCE HIGHLIGHTS FOR THE YEAR 2002-03

2002-03 was yet another year of impressive growth and improved

results.

GLOBAL GROSS PREMIUM

New India posted a total Global premium of Rs.4812.79 Crs (US $1.01

billion) achieving a growth rate of 14.64%

DOMESTIC

Indian Direct Premium of Rs.3921.24 Crs as against Rs.3512.33 Crs

registering an accretion of 11.64%. In absolute term Rs.408.91 Crs were added.

FOREIGN

Outside India a premium of Rs.891.55 Crs was booked in the year 2002-

03 as against Rs.685.73 Crs clocking a growth of 30.01%

INCURRED CLAIMS

Ratio of incurred claims to net premium dropped from 83.28%

(Rs.2555.14 Crs.) to 76.77% (Rs.2699.51 Crs)

OPERATING EXPENSES

Operating expenses have shown a marginal increase of 0.76% i.e. from

24.69% to 25.45% of the net premium.

Quantum increase is of Rs.137 Crs. This includes provision of Rs.43 Crs

towards leave encashment and Rs.73 Crs for doubtful debts.

- 47 -


Acquisition costs have accounted for Rs.193 Crs as against Rs.80 Crs of

previous year due to steep increase of commission payment. Commission

percentage to net premium increase to 5.49% from 2.60%.

The increase in commission outgo due to revision in commission rate and

introduction of new categories of intermediaries in the market.

MANAGEMENT EXPENSES

Company continues to be within section 40C limits. Against allowable

expenses of Rs.767 Crs (19.56% of GDP) the actual expenses are Rs.727 Crs.

(18.53% of GDP)

SOLVENCY MARGIN

Solvency Margin of the Company is 3.35 times of required margin.

(Against RSM of Rs.906 Crs. As ASM is Rs.3126 Crs)

NET FINANCIAL RESULTS

Net underwriting loss after credit of investment income (Less provision)

apportioned to policyholders has come down from Rs.88 Crs to Rs.24 Crs.

The main reason being decrease in incurred claims in Motor Dept. from 119% to

85%.

Net Investment income of Rs.762 Crs. (includes Rs.466.17 Crs.

Apportioned to Policyholders and Rs.295.97 Crs to Shareholders) could off set

the underwriting deficit. Net Profit after tax has shown an increase of 80% i.e.

from Rs.142 Crs to Rs. 255.81 Crs.

Net worth per share appreciated to Rs.340.40 from Rs.318.94.

Total Technical Reserve (unexpired risk reserve plus provision for outstanding

claims duly valued by Appointed Actuaries as stipulated by IRDA) stands at

Rs.5737.51 Crs., an increase of Rs.763.97 Crs over Rs.5023.57

- 48 -


DIVIDEND

Rs. 40 crores (40%) has been declared as dividend, which is highest quantum

paid.

Financial Rating

Company is rated as 'A' (Excellent) by A.M. Best & Co. for the fourth year in

succession.

- 49 -


PLANS FOR 2003-04

Domestic-

For the year 2003-04 we have planned for a target of Rs.4100 Crs.

Foreign-

The premium objective for 2003-04 is aimed at Rs.935 Crs gross.

Information Technology

New India is all set to embark on the implementation of GENISYS

ENTERPRISE- the customized enterprise solution being procured from CMC.

GENISYS ENTERPRISE is an umbrella application that will address to enterprise

wide requirements of the Company.

Wide Area Network connecting all our Regional Offices (except Nagpur)

with Head Office through leased lines is already in place. Currently being used

for voice transfer and data transfer. Today, the database across the organization

is a distributed one. With GENISYS ENTERPRISE, the data from operating

offices will be replicated at a repository at Regional Office and through WAN

connectivity, at the Central repository at the Head Office. GENISYS

ENTERPRISE WILL ENABLE Operating Office data exchanges, data

integration with lateral and higher office and enterprise wide data consolidation. It

will enable business intelligence and multi-dimensional analysis of data.

- 50 -


- 51 -


Objective

Objective of the project-

Primary Objective-

"A Study Of Derivative Research On

” CUSTOMER VIEW FOR MARKET POTENTIAL IN INVESTMENT “

Secondary Objectives-

1. Sales promotion of The New India Assurance Fund Products.

2. To convert the normal savers into Investors.

3. To identify the potential of Mutual fund product in today's environment.

4. Compare the product of The New India Assurance Fund with different Product

& to recommend the suggestion on The New India Assurance Fund products.

- 52 -


Scope of Study

Scope of the work-

This chapter covers the scope of the research project. The time frame in

which the research study was conducted, the area specified for the project, the

sample interviewed.

Scope-

The scope is the boundaries with in which the researcher is to be

conducted. The scope of the research ensures that the researcher does not

deviate in term of the data collection, does not consume time in the excess that

may not be acceptable to the company. The scope also specifies what

information to be collected form the sample which ensures quality of the data.

The samples to be interviewed by the questionnaire are defined as

Investors in Udaipur and Nathdwara region.

The scope of the "sample frame" which is the existing list of investors in

Udaipur and Nathdwara region.

The sample for the study at hand were defined with respect to the

following aspect-

Nature of samples-

1. Location of the samples was restricted to the Udaipur and Nathdwara region.

2. Sample size – 100

3. The data was collected between 01/07/08 to 31/08/08.

4. Information about product as mention in the product profile.

- 53 -


Research Methodology

Research methodology-

Research methodology is a way to systematically solve the research

problem. It may be understood as the science of studying how research is done.

Research in the common parlance refers to a search for knowledge.

Research as the systematic & objective analysis & recording of controlled

observation that may lead to the generalization principle or the theories, resulting

in the prediction & possibly ultimate control of events.

Research design-

"A research design is the logical & systematic planning & directing of

a piece of research."

It is the plan, structure & strategies of investigation conceived so as to

obtain answer to research question. There is the following type of research

design-

1. Exploratory Research Design

2. Descriptive Research Design

1. Exploratory Research Design-

An exploratory design aims at discovering more about various dimensions

of the research problem & its associated aspects. It aims at helping the

researcher to formulate a more precise & structured problem.

Descriptive research design-

Descriptive studies, concern themselves with describing the

characteristics of a particular individual, group, community or people. Descriptive

studies often help the researcher to do a lot of spade work & act as launch pads

of the further researcher. Descriptive research describes a behavior or condition.

- 54 -


Importance of data-

Data-

Data is facts figures & other relevant materials, past and present serving

as bases for study and analysis. It is based on observation.

Data is primarily of two kinds-

1. Primary data

2. Secondary data

Primary data-

Data that is collected for the specific purpose at hand is called as primary

data. Data collected by the researcher specifically for the research

Primary data-

Data that is collected for the specific purpose at hand is called as primary

data. Data collected by the researcher specifically for the research project.

New gathered data to help and solve the problem at hand. As compared to

secondary data which is previously gathered data.

Primary data includes-

1. Questionnaire-The respondent is questioned directly about the

perception of the product by the designed questionnaire.

2. Secondary data-

Secondary data is the data that has been collected earlier for some purpose

other than purpose of the present study.

Data obtain indirectly from source such as the book or computer database.

Data that have already been collected for some purpose other than the

current study.

- 55 -


Secondary data includes-

1. Reference books: Every research study has its theoretical and practical part.

Theory part is usually compiled by reference of various books on concern topic.

2. Company records- The New India Assurance Com., Udaipur.

3. Magazine- Daksh.

Sample design –

Once the researcher has formulated the problem and developed a

research design including the questionnaire, he/she has to decide whether the

information is to be collected from all the people comprising the population.

The method used for the sampling is the Non probability sampling. Non

probability samplings are of following types-

1. Purposive or Judgmental sampling

2. Convenience or Accidental sampling

3. Quota sampling

4. Snow- balling

From the above methods the Purposive or Judgmental sampling method

was used for this project.

Purposive Sampling-

In this method, the sampling elements are selected deliberately, based on

certain predetermine criteria or judgments of the researcher. It is this purposeful

selection of element that gives it the name 'purposive sampling'.

Important terms-

1. Population- The population is the total of elements about which some

information is desired and inferences are to be drawn. Population is the target

group to be studied.

2. Sample- The term sample refers to that group of element of the population

specifically selected for study, so as to find out something about the population

- 56 -


from which is taken. A sample is an intelligently & deliberately selected sub-set of

the population.

3. Sampling frame- It is the list, map or other specific information of the

sampling units that furnishes enough detail regarding all population element for a

specific sampling scheme. It is the list of all sampling units. The sampling frame

is constructed by the researcher specifically for his study or may be some

existing list of the population.

Sample size-

The size of the population from which the sample is to be drawn determines the

sample size required for a representative sample. A sample must be small

enough to prevent any uncalled costs and large enough to minimize the error to a

certain level.

Sample size of this study is 100 respondents-

30% of the sample is working in banks and business.

20% of the sample is working in profession job.

50% of the sample is young generation.

- 57 -


Information & Analysis Following question for analysis of research

1. Do you interested in investment?

A. Yes B. No,

INTERPRETESION-

Today’s each and every person, who are doing and related to business,

farmer, education and youth are also interested in investment plan.

According to my questionnaires today's 97% to 99% interested in

investment plan.

2. In which Investment do like and why?

A. NSC B. FD.

C. Mutual Fund D. In Share Market

INTERPRETATION-

The 3% people interested in NSC, 25% to 60% people interested in Fixed

Deposit, 35% to 85% peoples are interest in Mutual fund and Share Market

Schemes.

3. Why?

A. Earn Money B. Saving Money

- 58 -


INTERPRETETION-

80% to 90% people said mutual fund investment is a better earning

instrument others instruments like Banking services and post office services,

And in Udaipur region 50% people invest money in mutual fund to save money

and get a good fixed interest rate like debt and balanced Market schemes.

And 15% to 20% people said mutual fund is best for tax saving and others

functions.

4. How much return you are getting by this particular investment

portfolio?

A. 1 – 5% B. 6 -10% C. 11-20%

D. 21-30% E. 31-50% F. Above 50%

INTERPRETETION-

In India with information and unaware people earn only 01 to 05% interest

on investment. And 06% to 10% people earn in Debt and Balanced market

schemes. And Mass people earn 11 to 20% in Balance and Equity schemes in

mutual fund. And only 05 to 10% peoples earn 31% and above interest in mutual

fund because these person are very aware about market and time period

schemes.

5. Which type of risk you like in Mutual Fund?

A. High B. Moderate C. Low

INTERPRETATION-

- 59 -


In Udaipur region 85 – 95% investor are like to face High risk in

Investment schemes, And 60 – 80% investor like moderate risk and 15 – 20%

are like very low risk in mutual fund and other investment plans.

6. Which type of "Fund" you are like in investment plan?

A. Equity Fund B. Balance Fund

C. Debt Fund D. Liquidity Fund

INTERPRETATION-

60 – 75% investors and mostly youth invest our money in Equity market

because in this market investors get high interest rate return like 15% to 15%,

And 80 – 93% investor invest our money in Balance market because this market

divide investors money in Equity and Debt market in following ratio 65 :35.

And 25 -35% investor invest in Debt market because this market based on

government securities like bond and its provide a fixed rate of interest rate such

as 7% to 8.05%.

7. In which Mutual Fund House/Product you would like to invest?

A. Banks B. Constructions

C. Gas and petroleum D. Power Companies

INTERPRETATION-

28 -35% people invest in Services companies like Banks and financial

institution, and 80 and above investor like construction companies like

Infrastructure com. And 50 – 65% investors invest in gas and petroleum

companies because they are basic buildings of Indian infrastructure, and only 30

- 60 -


-50% invest in Power and Energy companies.

- 61 -


8. For how much time you can put year your money investment?

A. Less than 1 yrs. B. 1-2 yrs. C.1-3 yrs.

D. 1-5 yrs. E. More than 5 yrs.

INTERPRETATION-

In Udaipur region investor invest our money for above table time period

such as 5 – 15% invest for less than one year, 20 -35% invest for 1 to 2 years,

50% investor invest for 1 to 3 years and maximum people invest money for 1 to 5

year because they want a reliable profit.

9. What "Mutual Fund" is a better investment plan other investment

plans? (According your experience)

A. Yes B. No

INTERPRETATION-

By the above graph of investor experience of the product 97.37% is better

than other investment instrument and the services of mutual fund intermediaries

is excellent and well.

- 62 -


Finding & Conclusion

Findings-

The main findings of this research for the perception of product are as

followings-

1. Professional Management:

You avail of the services of experienced and skilled professionals who are

backed by a dedicated investment research team which analyses the

performance and prospects of companies and selects suitable investments to

achieve the objectives of the scheme.

2. Diversification:

Funds invest in a number of companies across a broad cross-section of

industries and sectors. This diversification reduces the risk because seldom do

all stocks decline at the same time and in the same proportion. You achieve this

diversification through a Mutual Fund with far less money than you can do on

your own.

3. Convenient Administration

Investing in a Fund reduces paperwork and helps you

Avoid many problems such as bad deliveries, delayed payments and

unnecessary follow up with brokers and companies. Funds save your time and

make investing easy and convenient.

4. Return Potential:

- 63 -


Over a medium to long term, Funds have the potential to provide higher

return as they invest in a diversified basket of selected securities

5. Low Costs:

A relatively less expensive way to invest compared to directly investing in

the capital markets because the benefits of scale in brokerage, custodial and

other fees translate into lower costs for investors.

6. Liquidity

In open-ended schemes, you can get your money back promptly Net Asset

Value (NAV) related prices from the Fund itself. With close-ended schemes, you

can sell your units on a stock exchange at the prevailing market price or avail of

the facility of repurchase through Funds at NAV related prices which some close-

ended and interval schemes offer you periodically.

7. Transparency:

You get regular information on the value of your investment in addition to

Disclosure on the specific investments made by your scheme, the proportion

invested in each class of assets and the fund manager's investment strategy and

outlook.

8. Flexibility:

Through features such as Systematic Investment Plans (SIP), Systematic

Withdrawal Plans (SWP) and dividend reinvestment plans, you can

systematically invest or withdraw funds according to your needs and

convenience.

9. Choice of Schemes:

A variety of schemes to suit your varying needs over a lifetime.

- 64 -


10. Well Regulated:

All Funds are registered with SEBI and they function within the Provisions

of strict regulations designed to protect the interests of investors. The operations

of Funds are regularly monitored by SEBI.

Conclusion-

Competition will surely cause the market to grow beyond current rates,

create a bigger "pie," and offer additional consumer choices through the

introduction of new products, services, and price options. Yet, at the same time,

public and private sector companies will be working together to ensure healthy

growth and development of the sector. Challenges such as developing a

common industry code of conduct, contributing to a common catastrophe reserve

fund, and chalking out agreements between insurers to settle claims to the

benefit of the consumer will require concerted effort from both sectors.

The market is now in an evolving phase where one can expect a lot of actions in

coming days. The current impediments for foreign participation – like 26% equity

cap on foreign partner, ill defined regulatory role of IRDA (Insurance Regulatory

development.

- 65 -


LIMITATION

Limitation-

All investments whether in shares, debentures or deposits involve risk:

share value may go down depending upon the performance of the company, the

industry, state of capital markets and the economy; generally, however, longer

the term, lesser the risk; companies may default in payment of interest/principal

on their debentures /bonds/ deposits; the rate of interest on an investment may

fall short of the rate of inflation reducing the purchasing power.

While risk cannot be eliminated, skillful management can minimize risk.

Funds help to reduce risk through diversification and professional management.

The experience and expertise of Fund managers in selecting fundamentally

sound securities and timing their purchases and sales help them to build a

diversified portfolio that minimizes risk and maximizes returns.

- 66 -


BIBLIOGRAPHY & REFERENCE

Bibliography –

1. The product manual of Tata Mutual Fund.

2. The product manual of the other Investment instrument and others funds.

References –

1. References taken from the project officer.

2. Research methodology book of prof. S.P. Kasande.

Website visited-

1. www.niacl.com

2. www.nia25.com

3. www. newindia .co.in

4. www. newindiaassurance aruba.com

- 67 -

http://www.newindiaassurancearuba.com/

http://www.newindia.co.in/

http://www.nia25.com/

http://www.niacl.com/


ANNEXURE

Investment- Questionnaire

The India Assurance Company ltd.

Name: - …………………………………………………………………

Age ………………………………………………………………………

Contact No. Mo. …………………………Ph...……………………….

Occupation ……………………………………………………………….

E-mail …………………………………………………………….……….

- 68 -


QUESTIONARY

What is Insurance? It is a system by which the losses suffered by a few are spread over many,

exposed to similar risks. Insurance is a protection against financial loss arising on the happening of an unexpected event.

Why do I need insurance? Insurance is a hedge against the occurrence of unforeseen incidents.

Insurance products help you in not only mitigating risks but also helps you by providing a financial cushion against adverse financial burdens suffered.

What is Premium? Premium is the fixed amount of sum paid over the period by the insured to

the insurance company to take insurance policy and to complete the contract of insurance.

What is underwriting? It is the consideration of material fact to asses the risk and to take the

decision whether to accept the risk for insurance contract and if so at what rate of premium.

What is Reinsurance? It is an arrangement by which insurance companies spread their risk with

other underwriters or reinsurance companies called Reinsurance.

What are the policies available for covering the vehicles? There are two policies: Motor Liability Only Policy and Motor Package

Policy.

Is it mandatory to have insurance for plying vehicles on the public place? As per Motor Vehicle Act, it is mandatory to have Motor Liability only

Policy for covering Third Party.

What is covered under liability only policy? Owners' liability towards Third Party Personal Injury and Property

Damage.

What is “No Claim Bonus”? It is a special discount given on premium for every claim-free year.

- 69 -


What is Solatium Fund Scheme? It is the Scheme formed by the Central Govt. to provide compensation to

the victims of "Hit and Run” motor accident. The amount of compensation is Rs. 25,000/- in the event of death and Rs. 12,500/- for grievous hurt.

What types of risks are covered under Fire Policy? Fire, Lightning, Explosion/Implosion, Aircraft Damage, Storm, Cyclone,

Riot, Strike, Malicious Damage, Impact Damage, Subsidence, Land Slide, Missile Testing Operation, Bush Fire etc.

What is Marine (Cargo) Insurance? The insurance of goods in transit from one place to another by any single

mode or combined modes of sea, rail, road, air and inland waterways.

What is covered under Marine (Hull) Insurance? It covers loss/damage suffered to a ship and machinery of vessel.

What does Burglary Insurance cover? It covers theft of property after actual forcible and violent entry or exit.

Which policy best suits to household? Householder's Insurance Policy comprising of 10 sections that covers

most of the risks faced by a household.

Is there any comprehensive policy available for a shopkeeper? Shopkeeper’s Insurance Policy.

Is there any policy available to cover the accompanied baggage during travel?

Baggage Insurance.

Others.......………..………………………………………………………. . ………. ………………………………………………………………………………………….…………………………………………………………………………………………….

I am very grateful to you.

- 70 -

Date post:	10-Apr-2015
Category:	Documents
Upload:	dipesh-joshi
View:	4,207 times
Download:	3 times

Project On The New India Assurance Com. By Sandeep vaishnav

Documents