A REPORT ON TATA AIA LIFE INSURANCE
Submitted in partial fulfilment for the award of the degree of
Master of Business Administration
Department of MBA
Submitted by
RATHISHA H S
MANASA R
KAMALA K
YASHAS V
DEEPA K M
Under guidance of
DR. AJOY KUMAR
Head of the department
Department of MBA
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1
4
Introduction
2 5-6
Company profile
3 7-9
Key products
4 10
Distribution channels
5 10
Performance of the company for the year (2021-
22,2022-23,2023-24)
6 11
Individual death claim settlement
7 Conclusion 12
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Insurance in India
The insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market again.
Tracing the developments in the Indian insurance sector reveals the 360 degree
turn witnessed over a period of almost two centuries
A brief history of the Insurance sector
The business of life insurance in India in its existing form started in India in the
year 1818 with the establishment of the Oriental Life Insurance Company in
Calcutta. Some of the important milestones in the life insurance business in India
are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
• 1928: The Indian Insurance Companies Act enacted to enable the government
to collect statistical information about both life and non-life insurance
businesses.
• 1938: Earlier legislation consolidated and amended to by the Insurance Act
with the objective of protecting the interests of the insuring public.
• 1956: 245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz. LIC
Act,
• 1956, with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots
to the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India
are:
• 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact
all classes of general insurance business.
• 1957: General Insurance Council, a wing of the Insurance Association of India,
frames a Code of conduct for ensuring fair conduct and sound business practices.
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• 1968: The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.
• 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized
the general insurance business in India with effect from 1st January 1973. 107
insurers amalgamated and grouped into four companies’ viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.
COMPANY PROFILE
Tata AIA Life Insurance Ltd
Tata AIA Life Insurance Company Limited (Tata AIA Life) is a joint venture
company, formed by the Tata Group and American International Group, Inc.
(AIG). Tata AIA Life 5 combines the Tata Group’s pre-eminent leadership position
in India and AIG’s global presence as one of the world’s leading international
insurance and financial services organization. The Tata Group holds 74 per cent
stake in the insurance venture with AIG holding the balance 26 per cent. Tata AIA
Life provides insurance solutions to individuals and corporates. Tata AIA Life
Insurance Company was licensed to operate in India on February 12, 2001 and
started operations on April 1, 2001.
Company’s Mission
We focus on the needs of our customers and create confidence, trust and loyalty
by offering a wide range of innovative insurance solutions
Strengthened by our commitment to professional management, we ensure the
continued growth and advancement of our employees.
Company’s Vision
Tata AIA life insurance has a deep rooted commitment to improve the quality of
life of its customers, employees and stakeholders. We aim to be the most
preferred General Insurance Company. We do this by our efforts which strives to
make Tata AIA Life Insurance a corporate with values.
• Increase Customer Value.
• Integrated efforts.
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Tata is a rapidly growing business group based in India with significant
international operations. Revenues in 2007-08 are USD 62.5 billion (around Rs.
251,543 crores), of which 61% was from business outside India. The Group’s Net
Profit for 2007-08 is USD 5.4 billion (around Rs. 21,578 crores). The Group
employs around 350,000 people worldwide. The business operations of the Tata
Group currently encompass seven business sectors - Communications and
Information Technology, Engineering, Materials, Services, Energy, Consumer
Products and Chemicals. The Group's 28 publicly listed enterprises have a
combined market capitalisation of around $60 billion, among the highest among
Indian business houses, and a shareholder base of 2.9 million. The major
companies in the Group include Tata Steel, Tata Motors, Tata Consultancy
Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels, Tata
Teleservices and Tata Communications
American International Group, Inc. (AIG), a world leader in insurance and
financial services, is the leading international insurance organization with
operations in more than 130 countries and jurisdictions. AIG companies serve
commercial, institutional and individual customers through the most extensive
worldwide property-casualty and life insurance networks of any insurer. In
addition, AIG companies are leading providers of retirement services, financial
services and asset management around the world. AIG's common stock is listed
on the New York Stock Exchange, as well as the stock exchanges in Ireland and
Tokyo.
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key Products:
1. Term Insurance Plans (For income replacement & family protection)
These are for pure protection — no returns unless there’s a claim. Ideal if you’re
the main earner and want to ensure your family isn't financially hit if something
happens to you.
Sampoorna Raksha Supreme
• Offers life cover till age 100.
• Option to get your premiums back if you survive the term (called Return
of Premium).
• Includes terminal illness cover.
• Can add riders like accidental death or critical illness.
• Good for: Young professionals, parents, or home loan holders who want
long-term protection and flexibility.
Reality check: Premiums are affordable when you're young. But once you add
return of premium + riders, cost increases fast. It’s best if your focus is family
protection.
2. Guaranteed Return Plans (Savings + insurance combo)
These are non-market linked. You know exactly what you'll get at maturity. Good
for conservative investors or goal-based savers.
• Pay for limited years (say 10 years), and get a guaranteed lump sum or
regular income after that.
• Suitable for people who want to save for child education, marriage, or a
retirement corpus.
• Offers a return of premium + life cover.
Reality check: These plans typically offer 5.5% to 6.75% IRR, post-tax. Not very
high, but tax-free under Section 10(10D) (if conditions are met), so useful for
people in higher tax slabs.
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3. ULIP Plans (Wealth Plans) (For long-term market-linked investment + life
cover)
These are Unit Linked Insurance Plans — premiums are partly invested in market
funds, partly used for life cover.
• You can choose how your money is invested (equity, debt, balanced).
• Comes with fund switching, loyalty additions, and tax-free maturity.
• All fund performance is published transparently — some funds have
delivered 15–25% in the past (not guaranteed).
Good for: People with long-term goals (10+ years), comfortable with market risk.
Ideal for young investors, HNWIs, or parents saving for children.
Reality check: Returns are not guaranteed, but you get the life cover + tax
benefits. Keep charges in mind during early years (mortality, fund management,
etc.).
4. Pension/Retirement Plans
These are annuity-based plans that give you a guaranteed monthly income post-
retirement.
Fortune Guarantee Pension
• Pay once (lump sum) or for a few years, then get a monthly/annual
income for life.
• Option to include spouse in a joint life annuity.
• You can opt for Return of Purchase Price to your nominee when you die.
Good for: Retirees or people close to retirement who want no market risk and
regular income.
Reality check: Annuity rates are fixed for life but not inflation-adjusted. So
₹25,000/month today won’t have the same value after 10 years.
5. Combo Plans
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These are tailored plans where Tata AIA combines multiple products (term +
savings + riders). Good for people who don’t want to manage separate policies.
• For example, a combo of Sampoorna Raksha + Fortune Guarantee Plus
gives protection + guaranteed returns.
Reality check: These are helpful if you're not financially savvy and want a "one-
shot" solution. But be sure you're okay with the overall cost.
6. Group Insurance
For employers, housing societies, or credit institutions. Provides cover to
multiple people under one master policy.
• Popular in companies as employee benefit.
• Useful for group term plans, loan cover (Group Loan Protect), etc.
Summary Table (Realistic Purpose-wise Match)
Product Name Best For Risk Returns Key Benefit
Sampoorna Life cover till 100,
Main earners, None/ROP
Raksha Low optional return
new parents option
Supreme premium
Fortune Conservative 6–7% Tax-free savings +
None
Guarantee Plus savers (guaranteed) insurance
Long-term Investment +
Fortune Pro
investors, young High Market-linked insurance + tax-
(ULIP)
earners free maturity
Fortune Guaranteed
Retirees, pension
Guarantee None Fixed income monthly payout
seekers
Pension for life
Busy Low– Custom, all-in-one
Combo Plans Mixed
professionals Medium plan
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Distribution Channels:
• Agents
• Brokers
• Banks (through bank assurance tie-ups)
• Direct channels (telemarketing, digital marketing, etc.)
Performance of the company
Year Premium Total claims Total Total claims
earned paid revenue received
2021-2022 144450268 50691733 196952317 197842248
2022-2023 205035015 52244025 247976354 53042659
2023-2024 256918248 73682089 175510920 74240929
Premium earned:
The premium earned means total number of premiums of the company
received from the policy holders during each fiscal year and it shows
consistent increase in the three years and it indicating growth in the
company’s business or an increase in the premium charged.
Total claims paid
This column shows the total amount of claims paid to the policy holders
during the year. Total claims received is higher than the total claims paid
in the year 2021-2022,2023-2024 it indicates not all reported claims paid
in those years it includes pending claims, denied claims, or claims under
processing.
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Total revenue
This column shows the total revenue generated by the company from
premium, investments, income or fee. This shows the company revenue
is increasing 2022-2023 but decrease in 2023-2024.
INDIVIDUAL DEATH CLAIM SETTLEMENT FROM LAST FOUR YEARS
Year Death claim settlement ratio (%)
2023-2024 99.13
2022-2023 99.01
2021-2022 98.53
2020-2021 98.02
Interpretation
Every year the percentage of death claim settlement were increasing
means which is in upward trend so it indicates the company’s efficiency
and it can enhance a customer trust and satisfaction.
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CONCLUSION
Tata AIA is earning more premium, increasing claim settlement so it is in
growth stage and also individual death claim settlement was increasing in
the year 2020-2021 to 98.02 percentage and 2023-2024 to
99.13percentage so it indicates strong customer services and operational
efficiency.
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