1. “Effective Analysis of Consumer Behavior towards
Investment Plans and Products of SBI Life Insurance,
Gwalior”
PROJECT REPORT
2013
Submitted for the partial fulfillment of the requirement for the
award
Of
BACHELOR OF BUSINESSS ADMINISTRATION
SUBMITTED BY
TARUN SINGH TOMAR
SCHOLAR NO. 2111105343
UNDER THE GUIDANCE OF
PROF. SHARDA HARYANI
Department of Management
PRESTIGE INSTITUTE OF MANAGEMENT AND RESEARCH
INDORE

2. DECLARATION
I hereby declare that the present report entitled “Effective Analysis of Consumer
Behavior towards Investment Plans and Products of SBI Life Insurance, Gwalior”
is based on my original work / publications has been duly acknowledged at relevant
places.
Submitted by Tarun Singh Tomar; BBA 5th Sem.
Student ID 2111105343

3. ACKNOWLEDGEMENT
Behind every man’s fruitful endeavor like advice, guidance & inspiration from all
possible sources lay the efforts of all those worthy people who lend there help directly or
indirectly. Contrary to popular Belief, preparing a Project is not a solo activity.
Working under this Organization was a great Experience for me. In this Organization I
have learned many important things which help me a lot in Future.
So Under this organization there were so many people who help me a lot for complete
this report and even gave me some tips of working under Insurance Company.
I would like to Acknowledge My Parents, My Brother, My Friends, and all those
members who present in Training along with me.
Another Thanks to Mr. Jitendra Chauhan (Asst. Manager), when I went for Summer
Training in SBI, Firstly I met with him. Suddenly He said that “Get Ready for
Interview”. Jitendra sir helps me a lot in completing this Training.
Especially I would like to thanks Mr. Abdul Salaam (Sales Manager) as a Faculty Guide
who trained me in this Organization. He tells us about the whole history of SBI Life
Insurance. He tells us how SBI enters in Insurance Market.
Another Thanks to Renu Mam, She always remain very polite in this Training towards
me.
I would like to Thanks Mr. Kapil Sir (Sales Manager), who also help me a lot while we
are on Rally and many different things.
I would like to Thanks to my senior who encourage me towards Training.
Last but not least my sincere Thanks to my Mentor Prof. Sharda Haryani.

4. EXECUTIVE SUMMARY
SBI Life Insurance is an Organization where we can grow our Skills, Attitude, and our
Behavior, How we can encourage the other Person for making him agree towards our
Insurance Schemes. As we know that SBI is a Company of Finance and Insurance is a
company of Marketing, But with this company, I learnt How to Survive in Market.
It is an Organization where we can earn as much as we can, it depends on us that how we
make the other people understood towards our Schemes.
In Today’s Corporate and Competitive world, I find that insurance sector has the
maximum growth rate and potential as compared to other sectors.
Insurance has the maximum growth rate of 70-80% while FMCG sector has minimum
12-15% of growth rate.
This Growth Potential attracts me to enter in this Field and SBI LIFE INSURANCE has
given me the opportunity to work and get experience in highly competitive and
enhancing sector.
Companies now are tapping a lot to complete my project in order to learn a lot of things
of the corporate.
This is the First Finance Company who enters the Life Insurance in Market. It is a Joint
Venture Life Insurance Company between State Bank of India (SBI), the largest owned
banking and financial services company in India, and BNP Paribas Assurance.
Mainly the Purpose of my training is to get involved in financial work, with this aim I
tried in many Organizations, but unfortunately there were no more space in all
organization then I applied in SBI Life Insurance, but there were many Hurdles, before I
get into this training I’ve got to face too much levels.
Workings in this company I can do Finance as well as Market because the need is in both
Institutions, so this is a good Opportunity for me.
Various Methods are used while working in such type of Organization like; Make the
people Introduced about your Schemes with the help of creating a Big Rally in whole
City, Make an Announcement of Lottery, Quantity Gift and many more things.

5. By using such type of Methods People were attracted towards us which means good
results. These type of Schemes or Methods were commonly used by many organizations
but make them useful in an effective manner is the main thing.
As a Trainee the first task given to me was to understand the basic behavior of the
consumer in order to manipulate the market according to our target competition.
For this I developed a Questionnaire and I did my Survey in Gwalior City. This Job
Training also helped me a lot in understanding the process of building effective
marketing channels for life insurance advisors.
The Success story of good market share of different market organizations depends upon
the availability of Products and Services near to the customer, which can be distributed
through a distribution channel includes only Agents/Advisors or agency holders of the
company, If a Company like SBI LIFE INSURANCE, LIC<, ICICI PRUDENTIAL,
RELIANCE LIFE INSURANCE TATA AIG, MAX etc. has adequate agents in the
Market, they can capture big markets as compared to other companies. I have pleasure in
submitting this Report on “Effective Analysis of Consumer Behavior towards
Investment Plans and Products of SBI Life Insurance, Gwalior”.
The internship facilitates a student to explore the new horizons of learning. Therefore, it
may also require data generation, analysis of data, understanding it in the company’s
context and to help in the value addition in the services of organization and thus it also
helps student in understanding the procedure to be followed by the organization This is
my report on the work done at SBI Life Insurance Company Limited during summer
internship. This report focuses on the Underwriting, Claims and Risk Management
Department.
It also contains the procedure of Claims, Underwriting and Risk-management
Department which we have gone through during the internship.
This report shows the work and enhancement of the knowledge in all the three
departments.

6. DECLARATION
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
CONTENTS
INTRODUCTION
ABSTRACT:
Chapter I Company Profile
Chapter II Conceptual Framework
Chapter III SWOT Analysis
Chapter IV Research Methodology
Chapter V Data Analysis and Interpretation
Chapter VI Suggestion and Recommendation
CONCLUSION
BIBLIOGRAPHY

7. INTRODUCTION
Wherever there is uncertainty there is risk. The risk cannot be averted. The
Risk is uncertainty of the financial loss. We don t have any command on uncertainties.
This makes it essential that we think in favor of a device that becomes instrumental in
spreading the loss. It is in this context that we think about insurance.
Protection against the possible chances of generating uncertain losses. It eliminates
worries and miseries of losses or destruction of property and death.
Life insurance is a contract between you and a life insurance company, which provided
you a death during the contract term.
Buying insurance is extremely useful if you are the principal earning member in the
family unfortunate premature demise, your family can remain financially secure because
of the life that you have purchased.
The primary purpose of life insurance is therefore protection of the family in the even
insurance is also seen as a tool to plan effectively for your future years. You’re retiring
children’s future needs. Today, the market offers insurance plans that not just cover your
same time even grow your wealth too.
If you have dependents and financial responsibilities toward them, then you certainly
need. Having a family means dependent, which in turn means financial commitments.
Finance comes in the form of loans, children’s education, medical expenses etc. Imagine
what would happen if you were to lose your life suddenly or become disabled being
insured in a situation like this is a necessity.
When you insured your life, in effect what you are doing insuring your earning capacity
that your dependents will be able to continue living without financial hardships even in
case.
Most insurance plans available today come with a savings element built into it. These
policies not only for a financially independents future, which were have a comfortable
retirement, For example. SBI preferred Retirement plans such as income plan and SBI
Multiplier plan. Most insurance plans available today have a bail in saving elements. SBI
preferred Retirement plans meet your dual financial goals of life cover and savings for
the future.
Life wasn’t designed to be risk free. The key is not to eliminate risk, but to estimate it
accurately and manage it wisely.

8. Insurance sector have characteristic that give can boost to the growth of any economy. It
is due to the savings done at the individual level and at micro level it generates funds for
infrastructure building as the cash flow is constant while the payout is differed, so that the
insurance companies are becoming biggest investors in long gestation infrastructure
development projects and hence have a great Importance to the developing economy like
India. Insurance sector with an annual growth rate of 15-20% and the largest number of
life insurance policies in force, the potential of the Indian
Insurance industry is huge.
Chapter I -: Company Profile
CONCEPT OF INSURANCE
Insurance is a policy from a large financial institution that offers a person, company or
other entity reimbursement or financial protection against possible future losses or
damages. Insurance may be described as a social device to reduce or eliminate risks
of loss to life and property. It is a provision, which a prudent man makes against
inevitable contingencies, loss or misfortune.
Under a plan of insurance, a large number of people associate themselves by sharing risks
attached to individuals. As in private life, in business also there are dangers and risks of
different kinds. The aim of all type of insurance is to make provision against such
dangers. The risks, which can be insured against, include fire, the perils of sea (marine
insurance), death (life insurance) and accidents. Any risk contingent upon these may
be insured against at a premium a commensurate with the risk involved. Thus, collective
bearing of risks is insurance. Insurance business is divided into four classes, such as Life
Insurance, Fire Marine and Miscellaneous Insurance.
“Insurance is a plan by which large number of people associate themselves and transfer to
the shoulders of all, risks that attach to individuals.” John Magee
“Insurance is a provision which a prudent man makes against for the loss or inevitable
contingencies, loss or misfortune.” Thomas
Insurance provide:-
 Protection to Investor,
 Accumulation to Savings,
 Old Age Pension,
 Tax Benefits, and many more benefits.

9. Functions of Insurance:-
 Provide Protection The primary function of insurance is to
provide protection against future risk, accidents
and uncertainty. Insurance cannot check the happening of risk, but can
certainly provide for the losses of risk. Insurance is actually a protection
against economic loss, by sharing the risk with others.
 Collective Bearing of Risk Insurance is an instrument to share the
financ ia l loss of few among many others. Insurance is a mean
by which few losses are shared among larger number of people. All
the insured contribute the premiums towards a fund and out of which the persons
exposed to a particular risk is paid.
 Assessment of Risk Insurance determines the probable volume of risk
by evaluat ing various factors that give rise to risk. Risk is
the basis for determining the premium rate also.
 Provide Certainty Insurance is a device, which helps to change from
uncertainty to certainty. Insurance is device whereby the uncertain risks
may be made more certain.
 Small Capital to cover larger Risk
I ns ur a nc e r e lie ve s t he businessmen from security investments, by
paying small amount of premium against larger risks and uncertainty.
 Contributes towards the Development of Industries Insurance provides
development opportunity to those larger industries having more risks
in their setting up. Even the financial institutions may be prepared to
give credit to sick industrial units which have insured their assets including plant
and machinery.
 Means of saving and Investment Insurance serves as savings and
investment, insurance is a compulsory way of savings and it restricts
the unnecessary expenses by the insured's for the purpose of availing income-tax
exemptions also, people invest in insurance.

10.  Source of Earning Foreign Exchange Insurance is an
international business. The country can earn foreign exchange by way
of issue of marine insurance policies and various other ways.
 Risk Free Trade Insurance promotes exports insurance, which makes the
foreign trade risk free with the help of different types of policies under
marine insurance cover.
LIFE INSURANCE:-
Life insurance may be defined as a contract in which the insurer, inconsideration of a
certain premium, either in a lump sum or by other periodical payments, agrees to pay the
assured, or to the person for whose benefit the policy is taken, the assured sum of money,
on the happening of a specified event contingent on the human life. Life insurance is a
contract under which the insurer (Insurance Company) inconsideration of a premium paid
undertakes to pay a fixed sum of money on the death of the insured or on the expiry of a
specified period of time whichever is earlier. In case of life insurance, the payment for
life insurance policy is certain. The Event insured against is sure to happen only the time
of its happening is not known. So life insurance is known as ‘Life Assurance’. The
subject matter of insurance is life of human being. Life insurance provides risk coverage
to the life of a person. On death of the person insurance offers protection against loss of
income and compensate the titleholders of the policy.
ROLE OF LIFE INSURANCE:-
 Life insurance as an investment: Insurance products yield more than any other
investment instruments and it also provides added incentives or bonus offered
by insurance companies.
 Life insurance as risk cover: Insurance is all about risk cover and protection of
life. Insurance provides a unique sense of security that no other forms of invest
can provide.
 Life insurance as tax planning: Insurance serves as an excellent tax saving
mechanism too.
IMPORTANCE OF LIFE INSURANCE:
 Protection against untimely death: Life insurance provides protection to the
dependents of the life insured and the family of the assured in case of his untimely
death. The dependents or family members get a fixed sum of money in case of
death of the assured.

11.  Saving for old age: After retirement the earning capacity of a person reduces.
Life insurance enables a person to enjoy peace of mind and a sense of security.
 Promotion ofsavings:Life insurance encourages people to save
money compulsorily. When life policy is taken, the assured is to pay premiums
regularly to keep the policy in force and he cannot get back the premiums, only
surrender value can be returned to him. In case of surrender of policy, the
policyholder gets the surrendered value only after the expiry of duration of the
policy.
 Initiates investments: Life Insurance Corporation encourages and mobilizes the
public savings and canalizes the same in various investments for the economic
development of the country. Life insurance is an important tool for the
mobilization and investment of small savings.
 Credit worthiness: Life insurance policy can be used as a security to raise loans.
It improves the credit worthiness of business.
 Social Security: Life insurance is important for the society as a whole also. Life
insurance enables a person to provide for education and marriage of children and
for construction of house. It helps a person to make financial base for future.
GENERAL INSURANCE
Insurance of the non-life assets are called general insurance, this includes
loss of asset against water, fire, earthquake etc. With the opening up of the
Indian Market in Insurance sector for private players, in General Insurance
the monopoly of the general Insurance public sector’s companies has
been broken. With the entrance of the new private player market inn
ovative technique has been introduced to capture the market. In general the
private players have captured Insurance around 17% of the market. General Insurance is
a sector, which alone has many type of insurance coverage in it like Fire Insurance,
Marine Insurance, motor Insurance, Liability Insurance, Engineering Insurance etc.

12. HISTORY OF INDIAN INSURANCE INDUSTRY
The insurance sector in India has completed all the facets of competition – from being an
open competitive market to being nationalized and then getting back to the form of a
liberalized market once again. The history of the insurance sector in India reveals that it
has witnessed complete dynamism for the past two centuries approximately. Life
insurance came to India from England in 1818 when oriental life insurance company
started in Calcutta by Europeans. After this many insurance companies had been started
in India. But these companies were looking after only the needs of European community
established in India. These companies were not insuring Indian people. First Indian life
insurance company came as Bombay mutual life insurance assurance. Second company
was Bharat insurance company came in 1896. After this the united India in madras,
national Indian and national insurance in Calcutta and the co-operative assurance in
Lahore were established in 1906.To regulate Indian insurance business first insurance act
came in 1912 as life insurance company act and provident fund act. These acts consist
of premium rates tables and periodical valuations of companies. In the first two-decade of
20th century many life insurance companies were started. So the insurance act came in
1938 to governing life and non-life insurance companies and to provide strict
state control.
In 1956 the life insurance business in India was nationalized.
In 1956 life insurance corporation of India (LIC) was created to spreading life insurance
much more widely particularly in rural areas. In that year LIC had 5 zonal offices, 33
divisional offices and 212 branch offices. In 1957 the business of LIC of sum assured
of 200crores, 1000crores in 1970, and 7000crores in1986.
Important milestones in the Indian life insurance business:
 1912: The Indian Life Assurance Companies Act came into
force for regulating the life insurance business.
 1928: The Indian Insurance Companies Act was enacted for enabling the
government to collect statistical information on both life and non-life
insurance businesses.

13.  1938: The earlier legislation consolidated the Insurance Act with the aim of
safeguarding the interests of the insuring public
 1956: 245 Indian and foreign insurers and provident societies were taken over by
the central government and they got nationalized. An Act of Parliament, viz. LIC
Act, 1956, formed LIC. It started off with a capital of Rs.5 crore and that too from
the Government of India
Important milestones in the Indian General insurance business:
 1907: The Indian Mercantile Insurance ltd. was set up which was the first
company of its type to transact all General Insurance business.
 1957: General Insurance Council, an arm of the Insurance Association of India,
framed a code of conduct for guaranteeing fair conduct and sound business
patterns.
 1968: The Insurance Act improved for regulating investment and set minimal
solvency levels and Tariff Advisory committee was setup.
 1972 The General Insurance Business Act, 1972 nationalized the general
insurance business in India. It was with effect from 1st January 1973. 107 insurers
integrated and grouped into four Companies viz. National Insurance Company
Ltd., the new India assurance company Ltd., the Oriental Assurance company
Ltd., and the United India Insurance Company Ltd. GIC was incorporated as a
Company

14. INSURANCE REGULATORY DEVELOPMENTAUTHORITY (IRDA):
In 1999, the Insurance Regulatory and Development Authority (IRDA) were constituted
as an autonomous body to regulate and develop the insurance industry. The IRDA was
incorporated as a statutory body in April 2000.
The key objectives of the IRDA include promotion of competition so as to enhance
customer satisfaction through increased consumer choice and lower premiums, while
ensuring the financial security of the insurance market. The IRDA opened up the market
in August 2000 with the invitation for application for registrations. Foreign companies
were allowed ownership of up to 26%. The Authority has the power to frame regulations
under Section 114A of the Insurance Act, 1938 and has from 2000 onwards
framed various regulations ranging from registration of companies for carrying on
insurance business to protection of policyholders’ interests.
ROLE OF IRDA:
 Prote cting the inte re s ts of policyholde rs .
 Establishing guidelines for the operations of insurers and brokers.
 Specifying the code of
conduct, qualifications, and training for insurance intermediaries and
agents.
 Promoting e fficie ncy in the conduct of ins urance bus ine s s
 R e gulating the inve s tme nt of funds by ins urance companie s .
 Specifying the percentage of business to be written by insurers
in rural sectors.
 Handling disputes between insurers and insurance intermediaries.
INSURANCE COMPANIES IN INDIA

15. IRDA has tilled now provided registration to 12 private life insurance companies and 9
general insurance companies. If the existing public sector insurance companies are
considered then there are presently 13 insurance companies in the life side and 13
companies functioning in general insurance business. General Insurance Corporation has
been sanctioned as the "Indian reinsurer" for underwriting only reinsurance business.
ABOUT THE COMPANY
SBI Life Insurance Company Ltd
SBI Life Insurance is a Joint Venture between State Bank of India and BNP Paribas
Assurance SBI owns 74% of the total capital and BNP Paribas Assurance the remaining
26%. SBI Life Insurance has an authorized capital of Rs.2000 crore and a paid up capital
of Rs.1000 crore.
State Bank of India enjoys the largest Banking Franchise in India. Along with its 6
Associate Banks, State Bank Group has unrivalled strength of over 16000 Branches
across the Country, arguably the largest in the world.
BNP Paribas is the First Largest French Company and ranks 5th in the banking Industry
worldwide, 1st Bank in Euro Zone as per Global 2000 Forbes’ 2008.
It is 6th most valuable International Banking brand as per Brand Finance 2008.
BNP Paribas Assurance is the insurance arm of BNP Paribas - Euro Zone’s leading Bank.
BNP Paribas, part of the world’s top 10 groups of banks by market value and part
of Europe top 3 banking companies, is one of the oldest foreign banks with a presence in
India dating back to 1860. BNP Paribas Assurance is the fourth largest life insurance
company in France, and a worldwide leader in Creditor insurance products offering
protection to over 50 million clients. BNP Paribas Assurance operates in 41 countries
mainly through the Banc assurance and partnership model.
PRODUCTS:
 Applications of Information Technology for Business.
 Rebate from the Government in the form of Tax Incentive to be insured.
Today, the Indian Life Insurance Industry has more than a dozen private players, each of
which are making strides in raising awareness levels
SBI Life has a unique multi-distribution model encompassing vibrant Banc assurance,
Retail Agency, Institutional Alliances and Corporate Solutions distribution channels. SBI
Life extensively leverages the State Bank Group relationship as a platform for cross-
selling insurance products along with its numerous banking product packages such as

16. housing loans and personal loans. SBI’s access to over 100 million accounts across the
country provides a vibrant base for insurance penetration across every region and
economic strata in the country, thus ensuring true financial inclusion. Agency Channel,
comprising of the most productive force of over 68,000 Insurance Advisors, offers door-
to-door insurance solutions to customers.
Pension plan:
A p e ns io n p la n o r a nnuit y is a n inve s t me nt o ve r a number of years
but does not provide any life insurance cover. It offers a guaranteed income either for a
life or certain period.
Unit linked insurance plan:
ULIP is a kind of insurance plan, which provides life cover as well as return on
premium paid over a certain period of time. The investment is denoted as units and
represented by the value called as net asset value (NAV).
Different distribution channels in India:
A multi-channel strategy is better suited for the Indian Market. Indian insurance market
is a combination of multiple markets. Each of the markets requires a different
approach. Apart from geographical spread the socio-cultural and economic
segmentation of the market is very wide, exhibiting different traits
and needs. Different multi-distribution channels in India are as follows:
Agents:
Agents are the primary channels for distribution of insurance. The Public and Private
Sector Insurance Companies have their Branches in almost all parts of the country and
have attracted local People to become their Agents. Today's insurance agent has to
know which product will appeal to the customer, and also know his competitor's
products to be an effective salesman who can sell his company, the
product, and himself to the customer. To the average customer, every new company
is the same. Perception about the Public sector companies are also commented in his
mind. So an Insurance agent can play an important role to create a good Image of
Company.
Banks:
Banks in India are all pervasive, especially the public sector banks. Many
insurance companies are selling their products through banks The Public
Sector Banks, with their vast branch networks, are helpful to insurance companies.
This Channel of selling insurance is known as Bank assurance.
Brokers:
Now a day’s different financial institution are selling insurance. These financial
institutions are known as brokers. They are taking some underwriting charges from
the insurance companies to sell their insurance products.
Corporate agents:
Corporate agency is a cross selling type of channel.

17. Insurance Companies had tie up with business houses in other industries to sell insurance
either to their employees or their customers. Insurance industry, during the past 2 years
has witnessed a number of such strategic tie-ups and alliances. Corporate agents
have become a major force to reckon within distributing Insurance Products. Such as –
Bajaj Allianz tied up with Maruti Udyog and Fordfor Auto Insurance and Tata AIG Life
has tied up with Tata Tea, Khaitan’s Williamson major and bridge foundation for selling
rural policies.
Internet:
In this technological world Internet is also a channel of selling insurance. This can be as
direct marketing.
Success of Insurance Company depends upon four Important Functions
Identification of markets:
Identification of markets means need to understand the trends in culture and
businesses constantly, through conducting research and analysis. Insurance
companies can take this job assign it to an external agency. Relyi ng on
an external agency can be risky due to the questionable loyalt y of
the agents.
Assessment of Risk and estimation of Losses:
Efficiency of actuaries and assessors of the insurance policies in fixing premiums and
settling claims is foremost an important area for achieving overall efficiency
in operations.
Penetration into and exploitation of markets:
Market penetration or exploitation of company can be identified with the growth in
number of Policies in each type of Insurance, growth rate in earnings or turnover,
company’s market share, increase in number of branches and divisions etc. Efforts of
the company as a whole and that of the divisions and branches are assessed to
measure the effectiveness.
Control over Investment and operating cost:
Control over resources such as men, machines, and materials at each level
of the organization provide measures of efficiency of a unit as well as the
o r ga niza t io n.

18. SWOT ANALYSIS
 STRENGTH
1. Since the tribe of life insurers has grown from 12 to 16,
but SBI still leads the private sector pack. SBI life is the Ranks among
Global Top Three at Million Dollar Round Table
2. Their strategy has been to grow the portfolio large
enough so that there is an in-built hedge and in a market where the
portfolio has a larger element of savings rather than protection, this works
well. And to make sure they can grow the business, they have built a
distribution network.
3. Product innovat io n is a focus area for them. To stay
relevant to the consumer they work hard for innovating and
developing new products.
4. The insurer is fortunate to have the strength of the SBI
Bank brand behind it; that went a long way in instilling confidence in
customers that the brand was trustworthy, a very important attribute in
insurance and would be there for the long-term.
5. Even today after it has rolled out so many campaigns,
SBI remains among the most trusted brand.
6. SBI Life is fundame nta ll y strong and the prospect of
meeting its policyholder's obligations as highest.
 WEAKNESSES
1. Minimum premium for single term is 40000 which is
very high.
2. We don’t have any plan for senior citizens.
3. Customer cannot withdraw amount before 3years this is
the main reason people believe in mutual funds for short-term
investment.
4. A llo c a t io n c ha r ge s a r e ve r y high.
5. Less awareness about SBI Life insurance in rural areas.

19.  OPPORTUNITY
1. Market is booming. Insurance companies are fast
emerging as one of the most prominent players in the govt. securities
market.
2. Lack of awareness about insurance is one of major
opportunit y for SBI Life Insurance. It can create market for itself by
making masses aware about insurance and its need.
3. Policies of govt. of India are favorable for the growth
of the company.
 THREATS
1. Capital requirement for setting up a life insurance company is very high.
The intensity of rivalry among private players is very high.
2. Increased competition in the insurance sector.
3. The insurance sector remains a very competitive market and those
companies that are able to best utilize their data and provide
their customer with the nearly all personalized options will have
the distinct competitive advantage. The insurers that come up to the top
will be those who leverage the appropriate.
4. Indian people still not believe in private insurance company’s so generate
new business is very difficult for new insurance Company.

20. CHAPTER IV: - RESEARCH METHODOLOGY
MEANING OF RESEARCH
Research is a matter of gathering information from varying sources usually in relation to
a specific topic and for a specific purpose. The definition of research includes any
gathering of data, information and facts for the advancement of knowledge.
MAIN OBJECTIVE OF THE STUDY
“Effective analysis of Consumer behavior towards Investment Plans &Products of SBI
Life Insurance, Indore”
RESEARCH DESIGN
A research design is the arrangement of condition for collection & analysis of data in a
manner that aims to combine relevance to the research purpose with economy in
procedure. In fact the research design conceptual structure with in research is conducted.
STEPS OF RESEARCH DESIGNTYPE OF RESEARCH
The type of research that is used in this research is descriptive research. It is a research
where specific predictions are made; the percentage of units in a specified population
exhibiting a certain behavior is measured. The characteristics of relevant groups is
described the degree to which market variables are associated is determined and to
determine the perception of product characteristics.
SAMPLING PROCEDURE
 Procedure by which some members of a population are
selected as representative of the entire population.
 The sub- group thus selected to represent the whole population
is known as SAMPLE

21. SAMPLING METHODS
 Probability Sampling
 Non Probability Sampling
1. Simple Random Method
2. Systematic Sampling
3. Cluster Sampling
4. Multi Stage Sampling
5. Quota Sampling
6. Convenience Sampling
7. Accidental Sampling
Research is a diligent and systematic inquiry or investigation into a subject in order to
discover or revise facts, theories, applications, etc. Methodology is the system of methods
followed by particular discipline. Thus research methodology is the way on we conducts
our research.
OBJECTIVES
 Proper understanding and analysis of life insurance industry.
 To know about brand awareness of SBI Life Insurance and customer’s preference
about SBI Life Insurance.
 Conduct Market Survey on Sample Selected from the entire population and
derive opinion on that research.
 To offer suggestions based upon findings

22. CHAPTER V: - DATA ANALYSIS AND INTERPRETATION
Q1. Are you aware about SBI Life Insurance?
 75% people aware about SBI Life Insurance.
 25% people not aware about SBI Life Insurance.
Q2. Do you think is it essential to have Life Insurance?
YES or NO
YES NO TOTAL
No. of Respondents 45 5 50
% of Respondents 90 10 100
ANALYSIS
To these question 45 consumers reported YES and 5 consumers reported
NO.
Q3. Why did you choose SBI Life Insurance?
No. Of Re spondents % Of Respondents
ROI 18 36
PEER PRESSURE 15 30
TAX BENIFIT 10 20
Security /safety 2 24
Low Premium 5 10
TOTAL 50 100
ANALYSIS
The above diagram shows 36% of respondents choose because of good
Returns, 30% because of peer pressure and remaining 24% opt. Because of
Tax benefit, safety and 100 premiums respectively.

23. Q4. Which of the following planed you is insured?
No o
Respondents
% Of
Respondents
SBI Flexi plan 25 40
SBI Capital Multiplier Plan 19 30
SBI Endowment Plan 3 5
Child Advantage Plan 6 10
ANALYSIS
From the total 63 respondents maximum i.e. 40% customers have opted for
Flexi Plan, whereas 30% have gore for Retirement plans and remaining 30%
have customer are having endowment, multiplier and child advantage
respectively.

24. CHAPTER VII: - SUGGESTION AND RECOMMENDATION
 Marketing in terms of the media via advertisements on Television to
small commercials on FM, hoardings and signage etc. has to be made because
there were respondents who haven’t even heard about SBI Life
Insurance.
 Awareness camp for sub-urban area should be focused.
 State and Central Government employees should be targeted because of reasons
like:
1. They don’t have Life Insurance cover other than that provided by
their respective employers and LIC.
2. Most of them are underinsured.
3. They have a stable source of income and social security.
 SBI Life Insurance must build its reputation by focusing on service
quality. Better service quality. Better service quality may be in the
form:
1. Issuing policy in time
2. Providing claims in time.
3. Making customers aware about their status of policy.
 SBI Life Insurance must introduce such kind of policies which will
give maximum profits in short term period.

25. CONCLUSIONS
During the data collected, it has been found that people have great awareness about SBI
Life Insurance. People are beginning to look beyond LIC for their insurance
needs and are willing to trust private players with their hard earned money. People in
general have been influenced by the marketing activities of Insurance
Companies. A high penetration of print, radio and TV ad campaigns over the
years is beginning to have its impact now. Another important trend was in terms of
people viewing insurance as a tax saving and investment instrument as much
as protective one. The general satisfact io n levels among public with
regards to policy and agents still requires improvement. Here lies the
opportunity for a relatively new comer like SBI Life Insurance. LIC has
never been known for prompt service or customer oriented methods but SBI
Life Insurance can build its reputation based on this factors.37% out of 75% people
those who are aware about SBI Life Insurance have investment plans of it.
25% people not aware about SBI Life Insurance, hence they invested
In other Life Insurance Company.83% out of 37% people those who have SBI Life
Insurance investment plans are very satisfied with these plans because of good services,
returns, guarantee, brand image, premium, nice features, attractive plans etc.70% of the
people those who don’t have account in SBI Bank think that they can’t take investment
plans of SBI Life Isurance.6 7 % People thought that covers future uncertainty, tax
saving and investment are some of the benefits of Life Insurance People are interested in
those plans that give maximum profit in short term.

26. BIBLIOGRAPHY
REFERENCES
BOOKS
MAGAZINE
Business & Economy Magazine
COMPUTER WEBSITE
www.IRDA.com
www.licindia.com
www.hdfcinsurance.com
www.businessindiaonline.com
www.maxnewyorklife.com
www.brandonline.com
www.sbilifeinsurance.com
www.avivaindia.com
Summer Training Guidelines pdf
Hindu Business Line