A Project Report

On

“CONSUMER SATISFACTION OF ENDOWMENT PLANS OF

SBI LIFE INSURANCE CO & LIC OF INDIA.”

2016-2017

Submitted By

NIHARIKA ASHOK SHAH MS-23150

SHRI G.L.JAVERI DEPARTMENT OF MANAGEMENT STUDIES

(BMS)

SMT. P. N. DOSHI WOMEN’S COLLEGE

NAAC RE-ACCREDITED ‘A’ GRADE

(AFFILIATED TO S.N.D.T. WOMEN’S UNIVERSITY)

Ghatkopar (W)

Mumbai- 400 086

 DECLARATION BY RESEARCH STUDENT

Niharika Ashok Shah MS-23150

I hereby declare that this project work entitled “CONSUMER SATISFACTION OF

ENDOWMENT PLANS OF SBI LIFE INSURANCE CO & LIC OF INDIA.” submitted

by me is based on actual work carried out by me under the guidance and supervision of

faculty members of BMS department. I further state that this work is not submitted anywhere

else for any examination.

 CERTIFICATE

This is to certify that this project work titled “CONSUMER SATISFACTION OF

ENDOWMENT PLANS OF SBI LIFE INSURANCE CO & LIC OF INDIA.” is a

bonafide work of Niharika Ashok Shah (MS-23150), student of T.Y.BMS., carried out in

partial fulfilment of the degree of BACHELOR OF MANAGEMENT STUDIES of SHRI

G.L.JAVERI DEPARTMENT OF MANAGEMENT STUDIES under the guidance of

faculty members of BMS department during the academic year 2016-2017.

VIJAYALAKSHMI R. DR.ASHA MENON

(Project Co-ordinator) External Examiner (In charge Principal)

 ACKNOWLEDGEMENT

I am really thankful to SHRI G.L.JAVERI DEPARTMENT OF MANAGEMENT

STUDIES (BMS) for providing me an opportunity to doa research project on “CONSUMER

SATISFACTION OF ENDOWMENT PLANS OF SBI LIFE INSURANCE CO & LIC

OF INDIA”.

I wish to express my sincere gratitude to DR. ASHA MENON, In charge Principal and

MS.VEENA SHETE, Coordinator of BMS FACULTY.

This project bears an imprint of many people.

I sincerely thank my project guide and lecturer MS.VIJAYALAKSHMI RAJAGOPALAN

for her guidance and encouragement in carrying out this project work.

I would be failing in my duty if I don’t express my profound gratitude to the respondents who

have spent their valuable time to fill out questionnaires.

Last but not the least I wish to avail of this opportunity to express gratitude and love for my

friends and my parents for their support, strength, and help and for everything.

Place: - Ghatkopar (W)

Mumbai: - 400 086

Date:-22/10/2019
 INDEX

SR.N PARTICULARS PAGE

O NO
Chapter 1 Introduction
1.1 Introduction 2-9
1.2 Scope of research 9-10
1.3 Importance of study 10
1.4 Research Methodology 10

1.4.1 Objectives of study 10-11

1.4.2 Area of study 11

1.4.3 Sample and Sample size 11

1.4.4 Data collection 11

1.4.5 Sources of data collection 11

1.4.6 Data analysis 11

Chapter 2 Data Analysis

2.1 Introduction 13

2.2 Data Analysis and Interpretation 13-30

Chapter 3 Major findings, Summary and Conclusion

3.1 Summary 32

3.2 Major Findings 32&33

3.3 Recommendations 34

3.4 Limitations 34

3.5 Conclusions 35

Bibliography 36

Annexure
Questionnaire 37-38
 LIST OF TABLE

SR.NO TOPIC PAGE

NO
2.2.1 Gender of Respondents 13

2.2.2 Age of Respondents 14

2.2.3 Education of Respondents 15
2.2.4 Occupation of Respondent 16
2.2.5 Type Of policy Invested among respondents along with endowment Life 17
Insurance policy.
2.2.6 Purpose of Investment. 18
2.2.7 Choice of Companies for endowment policies 20

2.2.8 Investment in Endowment Policies 21

2.2.9 Term of life insurance policies 23

2.2.10 Recommendation of policies 25

2.2.11 Awareness for Terms & Conditions 26

2.2.12 Ratings given by the policy holders to the Insurance Companies for the 27
following services
2.2.13 Recommendation of the Insurance Companies 29
 LIST OF CHARTS

CHART TOPIC PAGE

NO NO
1(A) Gender of Respondents 14

2(A) Age of Respondents 15

3(A) Education of Respondents 16

4(A) Occupation of Respondent 17

5 (A) Type Of policy Invested among respondents along with endowment Life 18
Insurance policy.
6(A) Purpose of Investment 19

7 (A) Choice of Companies for endowment policies 20

8 Investment in Endowment Policies

8 (A) Investment In LIC Endowment Policies (Graph) 21

8(B) Investment In SBI Endowment Policies (Graph) 22

9 (A) Term of life insurance policies 24

10 (A) Recommendation of policies 25

11 (A) Awareness for Terms & Conditions 26

12 Ratings given by the policy holders to the Insurance Companies for the
following services.
12(A) SBI Life Insurance Rating 28

12(B) LIC of India Rating 28

13(A) Recommendation of the Insurance Companies 29

 CHAPTER 1

INTRODUCTION

1
1.1 Introduction To Life Insurance :
Life insurance or life assurance is a contract between the policy owner and the insurer, where

the insurer agrees to pay a sum of money upon the occurrence of the policy owner's death. In

return, the policy owner (or policy payer) agrees to pay a stipulated amount called a premium

at regular intervals. From an investor's point of view, an investment can play two roles - asset

appreciation or asset protection. While most financial instruments have the underlying benefit

of asset appreciation, life insurance is unique in that it gives the customer the reassurance of

asset protection, along with a strong element of asset appreciation. The core benefit of life

insurance is that the financial interests of one’s family remain protected from circumstances

such as loss of income due to critical illness or death of the policyholder. Simultaneously,

insurance products also have a strong inbuilt wealth creation proposition. The customer

therefore benefits on two counts and life insurance occupies a unique space in the landscape

of investment options available to a customer. Life insurance allows long term savings to be

made in a relatively painless manner because of the low and convenient investments made

through premiums. Moreover, it encourages 'forced thrift' which means the insured is made to

pay premiums and save money, which he/she may not do in the regular course of life.

More investment options make policy holder money work harder, but there are no substitutes

to the life insurance. Because only a life insurance gives policy holder both – risk cover

against policy holder life as well as returns on policy holder money invested. Amongst the

most known benefits of Life Insurance is the savings on policy holder income taxes. Most

importantly it provides policy holder with that unique sense of security and peace of mind

that no other form of investment provides. So, a life insurance policy is an ideal tool to gain

security and ensure savings. If policy holder requires loans, say for building a house, it can be

easily obtained against a life insurance policy. Life insurance cannot be compared with any

other form of investment as life insurance gives policy holder a lifelong benefit and returns

2
 on policy holder money when it is most required. Insurance premiums are linked to age of the

life insured and the earlier policy holder buy, the lower are the premium requirements.

Besides, the money stays invested for a longer time and thereby maximizing policy holder

returns through the power of rupee compounding.

1.1.2 There are various companies offering life insurance policies such as : -

1. AEGON Religare.

2. Bajaj Allianz.

3. HDFC Life.

4. ICICI Prudential Life Insurance.

5. IDBI Federal Life Insurance.

6. Life Insurance Corporation.

7. SBI life insurance

8. Exide Life Insurance (Previously ING Vyas Life India)

9. Aviva India.

1.1.3 Types Of Life Insurance Policies.

Term Life Insurance: - Term insurance is a type of life insurance policy that provides

coverage for a certain period of time, or a specified "term" of years. If the insured dies

during the time period specified in the policy and the policy is active - or in force - then a

death benefit will be paid

Whole Life Policy: -Whole life insurance is a contract with premiums that includes

insurance and investment components. The insurance component pays a predetermined

amount when the insured individual dies. The investment component builds accumulated

cash value the insured individual can borrow against or withdraw.

3
Endowment Plans: -An endowment policy is a life insurance contract designed to pay

a lump sum after a specific term (on its 'maturity') or on death. Typical maturities are ten,

fifteen or twenty years up to a certain age limit. Some policies also pay out in the case of

critical illness.

Unit Linked Insurance Plans (ULIP): -ULIP is a life insurance product, which

provides risk cover for the policy holder along with investment options to invest in any

number of qualified investments such as stocks, bonds or mutual funds. As a single

integrated plan, the investment part and the protection part can be managed according to

specific needs and choices.

Money Back Policy: -In money back plan, the insured person gets a percentage of sum

assured at regular intervals, instead of getting the lump sum amount at the end of the term.

It is an endowment plan with the benefit of liquidity.

In this project it is mainly focused on Endowment Plans.

1.1.4 What is Endowment Policies: -

An endowment policy is a life insurance contract designed to pay a lump sum after a specific

term (on its 'maturity') or on death. Typical maturities are ten, fifteen or twenty years up to a

certain age limit. Some policies also pay out in the case of critical illness. Policies are

typically traditional with-profits or unit-linked (including those with unitized with-profits

funds).Endowments can be cashed in early (or surrendered) and the holder then receives the

surrender value which is determined by the insurance company depending on how long the

policy has been running and how much has been paid into it.

We are mainly focusing on SBI Life Insurance & LIC of India endowment policies in

this project.

4
 1.1.5 SBI Life Insurance Company: -

SBI Life Insurance is a joint venture life insurance company between State Bank of

India (SBI), the largest state-owned banking and financial services company in India,

and BNP Paribas Cardiff. BNP Paribas is a French multinational bank and financial services

company with global headquarters in Paris. SBI owns 74% of the total capital and BNP

Paribas Cardiff the remaining 26% of the capital. SBI Life Insurance has an authorized

capital of ₹20 billion (US$300 million) and a paid up capital of ₹10 billion (US$150 million).

In 2007, CRISIL Ltd, a subsidiary of global rating agency Standard & Poor's, gave the

company a AAA/Stable/P1+ rating. SBI has a range of endowment policies to offer. We can

avail the benefits of the plan and if necessary we can also surrender the policy at any time we

are in need of cash. The surrender value will be determined by the provider

1.1.6 Endowment policies offered by SBI Life Insurance.

1. ShubhNivesh: -ShubhNivesh is a non-linked plan with profit endowment assurance

product that has an option of Whole Life cover. Policy holder can save, earn income and get

insurance cover on policy holder and policy holder family.

2. eShield : -This is an individual, non-linked, non-participating pure term plan.

3. Smart Guaranteed Smart Money Back Gold: - Smart Money Back Gold plan is a

savings plan which offers added advantage of life cover and cash inflow. This is a

participating traditional money back plan.

4. Savings Plan: -This is a traditional non-participating individual savings plan. It provides

policy holder savings a boost with guaranteed additions.

5. Smart Champ Insurance: -This is an individual non-linked, participating life insurance

plan. Policy holder can protect policy holder child’s future educational needs with this plan.
5
6. Smart Income Protect: - This is a smart way to ensure that policy holder is financially

secured for policy holder future.

7. Smart Money Planner: - This is an individual non-linked plan with profit assurance and

an added guarantee feature.

1.1.7 Features &Benefits of Endowment Policies Provided by SBI Life

Insurance: -

Although every insurance policy has different & unique features & benefits some of the

common benefits are clubbed together, these are as follows.

 Policyholder will be eligible for income tax benefits and exemptions as per the pertaining

Income Tax Laws of India.

 Policy holder can opt for additional riders at a nominal cost. Policy holder get the option to

receive basic sum assured at regular intervals.

 Policy holder gets maturity and death benefit based on the plan option chosen by policy

holder. Plan options available to policy holder are endowment option and endowment with

Whole Life. Policy holder also use deferred maturity payment option to get income on

regular intervals.

 Security to policy holder family is offered at an affordable premium. Policy holder gets

additional benefit of Accidental death Benefit. Policy holder gets death, maturity and

surrender benefit with this plan.

 The sum assured depends on the premium that policy holder have chosen. Policy holder gets

guaranteed additions at the end of each policy year.

 Premiums can be paid for a limited period of 7 years. For the in-force policies, policy holder

get death and maturity benefits.

 Rebates are offered on large sum assured.

6
 Life cover option is available.

 Policy holder also use deferred maturity payment option to get income on regular intervals.

 Policy holder gets maturity benefits as lump sum and in installments.

1.1.8 Life Insurance Corporation (LIC) of India :-

Life Insurance Corporation of India (LIC) is an Indian state-owned insurance

group and investment company headquartered in Mumbai. It is the largest insurance company

in India with an estimated asset value of ₹1,560,482 crore (US$230 billion). As of 2013 it

had total life fund of Rs.1433103.14 crore with total value of policies sold of 367.82 lakh that

year. The Life Insurance Corporation of India was founded in 1956 when the Parliament of

India passed the Life Insurance of India Act that nationalized the private insurance industry in

India. Over 245 insurance companies and provident societies were merged to create the state

owned Life Insurance Corporation.

1.1.9 Endowment Policies Offered By LIC: -

The endowment plans offered by LIC offers some additional benefits too. For example, some

plans participate in company profits while other generate savings through investments in the

equity markets.

1. Single Premium Endowment Plan: -This plan offers no limits on the maximum sum

assured and can be taken by paying the entire premium in one lump sum.

2. New Endowment Plan: -LIC New Endowment Plan is a non-linked life insurance policy

which offers guaranteed returns and bonus.

3. New JeevanAnand: -LIC New JeevanAnand is an endowment cum whole life policy

along with Bonus facility. LIC JeevanAnand policy is a Double Death Benefit Plan, if the life

insured survives until the end of the policy term.

7
4. JeevanRakshak:-LIC JeevanRakshak is a Regular premium paying and Endowment

Insurance plan released by Life Insurance Corporation of India. LIC JeevanRakshak Plan 827

is available under Non-Medical Scheme.

5. Limited Premium Endowment Plan: -LIC’s Limited Premium Endowment Policy

830 has an option of Limited Period premium payment. Limited Premium Endowment Policy

Participates in Profits means Bonus will be declared on this policy every year.

6. JeevanLakshya : -The JeevanLakshya is a participating endowment policy that has been

designed keeping children in mind.

7. New Endowment Plus: -The New Endowment Plus is a ULIP (Unit Linked Insurance

Plan) that invests the policyholder’s money in debt and equity markets to generate returns.

1.1.10 Features & Benefits of Endowment Policies Provided By LIC Of

India: -

Although every insurance policies have different & unique features & benefits some of the

common benefits are clubbed together, these are as follows.

 Policy can also be used to secure a loan.

 The premiums can be paid every month, quarter, 6 months or every year.

 The cover can also be enhanced using the Accidental Death and Disability rider.

 The policy offers no limits on the maximum sum assured. It also offers Reversionary and

Final Additional bonuses that are paid when the policy matures.

 A choice of various risk profiles ranging from low risk to medium and high risks.

 Policy holder also gets the option to switch between various funds.

 It is a combination of saving and insurance coverage policy. Customers are provided

flexibility to fix the term of the policy.

 Provides High Bonus and High liquidity with saving point.

8
 If a person lives till the end of Term of the policy will be given Maturity Benefit, which is

SUM ASSURED + BONUS +FAB etc.

 If the policy holder dies within the duration of the Policy Death Benefit paid to Nominee i.e.

SUM ASSURED + BONUS acquired till that Year.

1.2 Importance of topic : -

This study is important because it will show what the views of people for life insurance

policies & life insurance companies. With this study the people will know that with the

changing economic environment it is important to take life insurance policies and it will tell

us what role of life insurance is playing in our life. With this study we can know the

importance of life insurance in today’s hectic life style. This study will show benefits to a

society as this will show the awareness of the various aspects of life insurance to the people.

Even with this study we will come to know whether people are happy with the advantages of

the life insurance. Also it will show what people think in concern with these life insurance

policies & companies. This research project will give brief information for the same, and it is

beneficial to people for choosing type of life insurance policies & plans & also Life Insurance

Company.

1.3 Scope of Research: -

This project is undertaken with the purpose to take a survey in the market, for consumer

satisfaction of endowment policy holder with the special reference to SBI Life Insurance &

LIC of India, with an aim to analysis what the customer has in mind for taking a these

insurance policy for a reason from a particular company, influencing factors to take insurance

policies, awareness of various promotional packages, different policies offered by the

9
 insurance companies, evaluation of various services offered by the company. Also benefits of

the policies are considered

1.4 Research Methodology:-

This study is about the consumer satisfaction of endowment plans of SBI Life Insurance Co

& LIC of India. The study is done to understand the satisfaction level of people towards these

policies. In this study the research is done practically. The detail information is described

below.

1.4.1 Objective of study : -

 To find the level of customer satisfaction of endowment life insurance policies offered by

SBI Life Insurance Co & LIC of India .

 To identify the customer preference between endowment life insurance policies of SBI Life

Insurance Co & LIC of India .

 To find the level of consumer satisfaction of services provided by SBI Life Insurance Co &

LIC of India.

1.4.2 Area of study:-

This study is done in Central area of Mumbai city particularly in Mulund Area.

1.4.3 Sample and Sample size:-

This study includes 60 customers’ views as a sample. Convenience sampling method is used.

1.4.4 Data collection:-

10
This study is done through questionnaire method. The response of customers is all age group

of people. In Mumbai the research is taken place. Total response is 60. Largely close ended

questions are asked.

1.4.5 Source of data collection:-

This study is consists of primary and secondary data. The primary data is used to understand

about the companies i.e. SBI Life Insurance Company & Life Insurance Corporation of India

(LIC) endowment policies, and also to study benefits of endowment policies. The secondary

data is used to understand which endowment insurance policies & company is preferred by

people. Also the view of people towards particular company.

1.4.6 Data analysis:

After collecting the data the next step is to analysis the data. There are different ways of

collection of data, but for this study percentage method is used. Excel is used.

11
 CHAPTER 2

DATA ANALYSIS

12
2.1 Introduction

Data analysis is a process of inspecting, transforming with the goal of finding the conclusion

or solution of the research. In this study the data analysis is done through various tables and

charts. The data collected comprises of comparision between two insurance companies

endowment policies, to find consmer satisfaction between these two companiesWith each

chart and table there are some findings of the research. The detail information is explained in

this chapter.

2.2 Data Analysis and Interpretation

According to the questionnaire the different set of questions were prepared for those who

currently have endowment life insurance policies & of which company i.e whether SBI Life

insurance or LIC of India. So there is difference in the respondent number for different

questions. The data analyses are of single variable is as followed. Personal data analysis is

first, than there are questions related to endowment policies. Same questions were posted to

SBI Life insurance or LIC of India to enable comparison.

13
2.2.1 Gender of Respondents

Table No: - 1

Gender No of Respondents Percentage

Male 39 65%

Female 21 35%

Total 60 100%

Chart No. : 1 (A)

Gender

60
50 39
40
30 21 Male
20
Female
10
0

From the chart depicted frequency of gender is highest is males 39 of total customer 60. is

(65%) responds have Policies.

14
2.2.2 Age of Respondents: -

Table No. 2

Age No of Respondents Percentage

18-25 Years 8 13%

26-40 Years 32 54%

41-60 Years 20 33%

Above 60 Years 0 0%

Total 60 100%

Chart No. : 2 (A)

Age
0%

13%
18 to 25 years
33%
25 to 40 years
40 to 60 years

54% Above 60 years

From the chart the age frequency of the most of customer is in range of 25-40 years i.e. 32

respondents (54%).

15
2.2.3 Education of the Respondents: -

Table No: - 3

Education No of Respondents Percentage

Undergraduate 21 35%

Graduate 25 42%

Post Graduate 11 18%

Professional 03 05%

Total 60 100%

Chart No. : 3 (A)

Education
60
50
40 Professional
30 25 Post Graduate
21
20 Graduate
11 Under Graduate
10 3
0
Professional Post Graduate Graduate Under Graduate

This shows the educational qualification of the respondents. The highest i.e. 25 (42%) are

graduated.

16
2.2.4 Occupation of Respondent

Table No: - 3

Occupation No Of Respondents Percentage

Business 12 20%

Service 38 63%

Home Maker 01 2%

Self Employed 06 10%

Student 03 5%

Total 60 100%

Chart No. : 4 (A)

Occupation
60
50
38 Business
40
30 Service
20 Home Maker
12
10 6 3 Self Employed
1
0 Student
Business Service Home Maker Self Student
Employed
The above diagram shows the occupation of the respondent. 38 (63%) respondents are doing

service.

17
2.2.5 Type Of policy Invested among respondents along with endowment

Life Insurance policy.

Table No: - 5

Type Of Policies Invested Respondents

Term Life Insurance Policy 1

Whole Life Insurance 5

Endowment Life 60

Unit Linked Insurance Policy (ULIP) 1

Money Back Policy 4

Total Respondents 71

Chart No. : 5 (A)

Type of Policy
80
60 Term Life
60
Whole Life
40
Endowment
20 ULIP
1 5 1 4
0 Money Back
Term Life Whole Life Endowment ULIP Money Back

From the above chart it is depicted that along with endowment policies people tend to buy

other policies too.

18
2.2.6 Purpose of Investment.

Table No: 6

Purpose of Investment Respondents

Tax Saving 24

Earning From Investment 30

Retirement Plans 15

Children’s Future plan 9

Total Respondents 78

Chart No. : 6 (A)

Purpose Of Investment
80
70
60
50 Tax Saving
40 30 Earning from Investment
30 24
15 Retirement Plans
20
9 Childrens Future Plans
10
0
Tax Saving Earning from Retirement Childrens
Investment Plans Future Plans

(Note: - As the number of endowment policy holders is only 60 respondents, the purpose of

investment has increased to 78 responses, since respondents had chosen multiple benefit

options.) From the above chart it is depicted that responses for earning from investment is the

highest that is 30 responses.

19
2.2.7 Choice of Companies for endowment policies

Table No: - 7

Company No Of Respondents Percentage

SBI Life Insurance Company 32 53%

Life Insurance Corporation 24 40%

(LIC) OF India
Both the above Companies 04 7%

Total 60 100%

Chart No. : 7 (A)

Choice of Companies for endowment policies

60
50
40 32 LIC of India
24
30 SBI Life Insurance
20 Both of the above
4
10
0
LIC of India SBI Life Both of the
Insurance above

From the above chart it is depicted that Life Insurance Corporation (LIC) of India have

largest share that is of 32 responses (53%).

20
2.2.8 Investment in Endowment Policies

Table No: - 8

SBI Life Insurance Respondents LIC of India Respondents

Smart Money Back Gold 7 Single Premium Endowment 4
Plan
Shubh Nivesh 4 New Endowment Plan 5
Shield 7 New Jeevananand 13
Smart Guarantee Saving Plan 3 Jeevanrakshak 7
Smart Champ Insurance 3 Limited Period Endowment 2
Plan
Smart Money Planner 2 Jeevanlakshya 5
Smart Income Protect 2 New Endowment Plan 0
Total 28 Total 36

Chart No. : 8 (A)

Investment In LIC Endowment Policies

New endowment plus 0
Jeevanlakshya 5
Limited Period Endowment Plan 2
Jeevanrakshak 7
New Jeevan Anand 13
New Endowment Plan 5
Single premium Endowment Plan 4

0 5 10 15 20 25 30 35 40

21
 Chart No. : 8 (B)

Investment In SBI Endowment Policies

Smart Income Protect 2

Smart Money Planner 2

Smart Champ Insurance 3

Smart Gurantee Saving Plan 3

eshield 7

Shubh Nivesh 4

Smart Money Back Gold 7

0 5 10 15 20 25 30

(Note: - Total responses for endowment policies are 60 but as some respondents have

invested in both the companies the number of responses for SBI Life insurance company has

increased to 28 from 24 & responses for LIC of India has increased to 36 from 32

respectively.) This comes to total 64 responses of LIC of India & SBI Life Insurance.

From the above chart A it is depicted that New jeevan anand endowment from LIC of India

has the highest holders from all other policies 13 (36%).

From the above chart B it is depicted that esheild & smart money back gold policies have

highest holders 7 (25%).

22
2.2.9 Term of life insurance policies

Table no: - 9

Years of Investment No of Respondents Percentage

Less than 10 years 15 23%

10 years to 20 years 39 61%

20 years to 30 years 09 14%

More than 30 years 01 2%

Total 60 100%

Chart No.: 9 (A)

Years of Investment
70
60
50 39
40
30 Respondents
15
20 9
10 1
0
Less than 10 years 10 to 20 years 20 to 30 years More than 30 years

(Note: - The responses here are 64, as it includes customers that have both the policies, so the

options are chosen accordingly by customers.) From the above chart it is concluded that,

responses that have invested in insurance policies form a majority between 10 to 20 years, 39

(61%) responses.

23
2.2.10 Recommendation of policies

Table No: - 10

Recommendation No of Respondents Percentage

Family Members 17 27%

Friends 18 28%

Insurance Agent 24 37%

Internet 05 8%

Total 60 100%

Chart No. : 10 (A)

Recommendation

5
17 Family Members
Friends
24 Insurance Agent
Internet
18

(Note: - The responses here are 64, as it includes customers that have both the policies, so the

options are chosen accordingly by customers.)

From the above chart it is depicted that, insurance agents carry a major part in

recommendation of policies 24 (37%) responses.

24
2.2.11 Awareness for Terms & Conditions

Table No: - 11

Awareness of Terms & No of Respondents Percentage

Conditions

Yes 60 100%

No 0 0%

Total 60 100%

From the above chart it is depicted that all the respondents have good knowledge of all terms

& conditions of both the companies.

25
2.2.12 Rating of various services.

Various Services of both the companies are shown here these services are rated by the policy

holders.

(Scale of rating is 1 to 5, where 1 is the best & 5 is the worst)

Table No 12.1:- LIC of India

Sr. Questions Rating Rating Rating Rating Rating

No 1 2 3 4 5
A Ease in understanding 1 9 12 5 10
terms & conditions of
policy.
B Convenient premium 2 9 9 7 9
payment options (online
payment, cheque
payment, payment at
their office)
C Friendliness of staff 3 12 11 8 1
D Knowledge level of staff 15 8 11 1
or agent
E Past experience during 4 17 11 4 1
surrender or maturity of
policy
F Complaint resolution 11 12 9 2
Total 21 74 60 35 24

26
Chart No. : 12.1 (A)

Rating of LIC Of India

20

15 Rating 1
Rating 2
10
Rating 3
5 Rating 4
Rating 5
0
Q. A Q. B Q. C Q. D Q. E Q. F

From the above table the highest rating 2 is for past experience during surrender or maturity

of policy. It can be told that people are satisfied from the policy. Also the overall of all

services rating 2 is the highest.

27
Table No 12.2: - SBI Life Insurance

Sr. Questions Rating Rating Rating Rating Rating

No 1 2 3 4 5
A Ease in understanding 13 12 2
terms & conditions of
policy.
B Convenient premium 3 10 14 2
payment options (online
payment, cheque
payment, payment at
their office)
C Friendliness of staff 6 13 8 1
D Knowledge level of 5 14 7 3
staff or agent
E Past experience during 3 7 15 3
surrender or maturity of
policy
F Complaint resolution 7 11 7 1 2

Total:- 24 68 63 12 2

Chart No. : 12.2 (A)

Rating Of SBI Life Insurance

20
Rating 1
15
Rating 2
10 Rating 3
Rating 4
5
Rating 5
0
Q. A Q. B Q. C Q. D Q. E Q. F

From the above table the highest rating 2 is for past experience during surrender or maturity

of policy. It can be told that people are satisfied from the policy.

28
2.2.13 Recommendation of the Insurance Companies

Table No: - 13

Company Responses Responses Percentage (%)

recommended holding policies
company
LIC of India 34 32 106.25%
SBI Life Insurance 24 24 100%
Both of the above 2 4 50.00%
total 60 60

Chart No. : 13(A)

Recommendation
60
50
40 34 32
Responses recommended
30 24 24 company
20 Responses holding
policies
10 4
2
0
LIC of India SBI Life Both of the
Insurance above

From the above chart, 34 responses have recommended LIC of India. Some holder that had

invested in both the companies policies have also recommended LIC of India.

29
 CHAPTER 3
SUMMARY, MAJOR
FINDINGS AND
CONCLUSION

30
 3.1 Summary

This study is about the Consumer Satisfaction towards Endowment policies of SBI Life

Insurance & LIC of India carried in Mumbai. It contains demographic consideration such as

age, gender, occupation and educational qualification. The response shows that there are

different views of the people holding endowment insurance policies. The factors such as

purpose of investment, The Company invested in, benefits , terms and conditions, years of

investment, type of endowment plan invested in, sources that recommend policies & services

provided by company which are beneficial or not beneficial to the customers. According to

the questionnaire there are different sets of questions were prepared for those who currently

hold endowment policies. So there is difference in respondent number for different questions.

In this chapter we have discussed about the findings and conclusion of the research by

analysing data.

3.2 Major Findings

 There were 65% of male respondents and 35% female respondents. The age group of 26-40

years is the highest responses 54%. Also the age group of 41-60 years carries second

highest responses 33%. Out of total respondents i.e. 60 responses qualification of responses,

Graduate responses are 42%. It is found that service sector responses are more 38

respondents (63%).

 People found that there are multiple benefits from the investment they had made. This also

shows that the respondents that had invested in endowment insurance plans tend to have

investment majorly to have earning from these policies i.e 30 respondents. Also tax saving is

also an important aspect of investment.

31
 The survey shows that people have more trust on LIC Of India, than other companies as it is

government recognized firm & have higher trend for investment purpose. The responses are

32 (53%) out of total responses of 60.

 Investment in endowment plans according to the company shows the following major

findings. In LIC of India Company, New jeevananand has maximum policy holders-13

responses followed by the second highest policy holder- 7 responses.

 In SBI Life Insurance Company, Smart Money Back Gold & eshield have equal responses of

7 holders followed by Shubh Nivesh 4 policy holders.

 In both the companies policy holders had done their investment between 10 years to 20 years

more, means 39 responses (61%).

 It is found that people had chosen these policies as per the recommendation of Insurance

agents or Sales Executives, 24 responses (37%).

 Here all the responses 60 (100%) are all aware of all terms & conditions of the policies.

 Different services were listed for rating & scale was in the range of was 1 to 5, where 1 is the

best rating & 5 is the worst rating. following is the brief of ratings of both companies

LIC of India

 Rating 2 to (15 points) was for Knowledge level of staff or agent & rating 2 (17points) was

for Past experience during surrender or maturity of policy is the highest. It can be said that

responses had more satisfaction for these two services.

 Also the overall services of LIC of India has Ratings 2 at highest i.e. 74 & Ratings 3 i.e. 60

.Hence the overall services enjoyed by responses are satisfactory.

SBI Life Insurance

 Rating 3 (14 points) was for Convenient premium payment options (online payment, cheque

payment, payment at their office) & rating 3 (15points) was for Past experience during

32
 surrender or maturity of policy is the highest. But as the Rating is 3 it can be said that

responses are only satisfied by this service.

 The same trend is also seen in SBI Life Insurance that it has Ratings 2 at highest i.e. 68 &

Ratings 3 i.e. 63. Hence the overall services enjoyed by responses are satisfactory.

COMPARISON BETWEEN INDIVIDUAL SERVICES ONLY IN RATINGS 1 & 2 IN

BOTH THE COMPANIES IS AS FOLLOWS…

LIC OF INDIA

A. For Ease in understanding terms & conditions of policy,

 LIC of India the rating for 1 is 1 & rating for 2 is 9.

B. Convenient premium payment options (online payment, cheque payment, payment at

their office)

 LIC of India the rating for 1 is 2 & rating for 2 is 9.

C. Friendliness of staff

 LIC of India the rating for 1 is 3 & rating for 2 is 12.

D. Knowledge level of staff or agent

 LIC of India the rating for 1 is 0 & rating for 2 is 15.

E. Past experience during surrender or maturity of policy

 LIC of India the rating 1 (4 points) & rating 2 (17 points).

F. Complaint resolution

 LIC of India the rating 1 (11 points) & rating 2 (12points).

SBI LIFE INSURANCE

A. For Ease in understanding terms & conditions of policy

 In SBI Life Insurance the rating 1 (0 points) & rating 2 (13 points).

B. Convenient premium payment options (online payment, cheque payment, payment at

their office)
33
 In SBI Life Insurance the rating for 1 (3 points) & rating for 2 (10 points).

C. Friendliness of staff

 In SBI Life Insurance the rating 1 (1 point) & rating 2 (13 points).

D. Knowledge level of staff or agent

 In SBI Life Insurance the rating 1(5points) & rating 2 (14 points)

E. Past experience during surrender or maturity of policy

 In SBI Life Insurance the rating 1 (3points) & rating 2 (7 points).

F. Complaint resolution

 SBI Life Insurance the rating 1 (7 points) & rating 2 (11 points).

OVERALL VIEW IN ALL SERVICES OF BOTH COMPANIES

A. For Ease in understanding terms & conditions of policy

 It can be concluded as SBI Life Insurance has more points in ratings 1 & 2.

B. Convenient premium payment options (online payment, cheque payment, payment at

their office)

 It can be concluded as SBI Life Insurance has more points in ratings 1 & 2.

C. Friendliness of staff

 It can be concluded as SBI Life Insurance has more points in rating 2 & LIC has more points

in rating 1.

D. Knowledge level of staff or agent

 It can be concluded as SBI Life Insurance has more points in rating 1 & LIC has more points

in rating 2.

E. Past experience during surrender or maturity of policy

 It can be concluded as SBI Life Insurance has fewer no’s in rating 1 & 2 compared to LIC of

India.

 For Past experiences it was expected that it would earn more ratings than SBI Life Insurance.

34
F. Complaint resolution

 It can be concluded as SBI Life Insurance has fewer no’s in rating 1 & 2 compared to LIC of

India.

OVER ALL CONCLUSION IN RATINGS OF SERVICES

 In all services ratings 1 & 2 between SBI Life Insurance & LIC of India some services are

performed very well between both the companies.

 People have recommended LIC of India Company for investment of policies. Also the 4

responses that have both the companies insurance policies from that 2 of the responses had

chosen LIC of India.

 But if it is compared to ratings & recommendation SBI Life Insurance also have good ratings

compared to LIC of India. That means people chose LIC of India because the company is

Government organised & people have more faith in the company. Also it can be said that

there is a trend in people to particularly invest LIC of India.

 If we compare companies from rating perspective SBI Life Insurance also has good ratings

but the responses 4 that both the companies’ policies from them 2 of them has switched to

LIC of India.

3.3 Recommendations

According to the research the people have chosen LIC of India Company for investment. SBI

Life Insurance also has good responses in concern with LIC of India. But it should increase

its network. It is also seen that responses have invested in same type endowment policies for

both companies. As these types of endowment policies have good benefits & should try to

invest in other policies too. The services provide has got good ratings of 1, 2 & 3 for both the

companies. At last both the companies over all have got ratings of 2 & 3 more which can be

considered as satisfactory but they need to improve their quality of services provided to

customers.

35
It can be suggested that LIC of India & SBI Life Insurance should improve their services.

LIC of India has highest customer base & if it want improve its customer base it should

promote its policies through advertisements on T.V & Internet.

SBI Life insurance should also improve their services provided as it has much need of

improvement because it has highest rating of 3. Also customer base of SBI Life Insurance is

very less it should be increased via different means such as T.V, internet, Events etc.

3.4 Limitations

The major problem was faced in collecting data as there was place and time constraint. The

data was collected in central part of Mumbai (Mulund Area). As there were only 60 responses

the analysis of data was difficult. But despite of these limitations the research was completed

with good knowledge. The collection of data in this research was not able to collect data from

people above the age of 60. There was no such problem in collection of data, but there was

much delay in collection process as it was offline method used.

3.5 Suggestions

The research was restricted to Mulund area but it cover widen area. In these only Endowment

policies were covered but it can also cover other policies too. As there were only 60

responses which is very limited, A the number of respondents were it was difficult to peoples

perceptive widely & here if there are more responses the recommendation would be changed

drastically & in more numbers. So it can be said people chose LIC of India more because

they trust the Company as it has good brand image in the society.

36
3.6 Conclusion

To own a life insurance policy that to of endowment plans is good option of investment &

future plans, it gives benefits not only to the insurer but other people who are beneficiary.

The different types of endowment policies which provide different benefits to the people. The

company that we have invested in should be good company which gives assurance of good

returns. Insurance companies are increasingly willing to spend more on the customer

satisfaction and brand building exercises. Though it is one of the highly regulated industries,

it still provides lot of scope for creativity and innovations. It is necessary to standardize the

process and bring about quality improvement and get feedback from the customers regarding

the quality of services rendered. This will result in customer satisfaction, customer retention,

customer acquisition, employee retention and cost reduction.

37
 Bibliography

1. What is Life insurance? - https://en.wikipedia.org/wiki/Life_Insurance

2. Companies that provide life insurance - https://www.policybazaar.com/insurance-companies/

3. Types of Life insurance companies? https://en.wikipedia.org/wiki/Life_Insurance

4. SBI Life Insurance Company - http://www.sbilife.co.in/sbilife/

5. Endowment policies offered by SBI Life Insurance - http://www.sbilife.co.in/sbilife/

6. Life Insurance Corporation (LIC) of India - https://www.licindia.in/

7. Endowment Policies Offered By LIC - https://www.licindia.in/

38
 ANNEXURE

Questionnaire

CONSUMER SATISFACTION OF ENDOWMENT PLANS OF

SBI LIFE INSURANCE CO & LIC OF INDIA.

1. Name
_________________________________

2. Gender
⬀Male
⬀ Female

3. Age in years
___________________________________

4. Education
⬀Undergraduate
⬀Graduate
⬀Post graduate
⬀Professional

5. Occupation
⬀Service
⬀Student
⬀Business
⬀Home maker
⬀Self employed

6. Which type of life insurance policies have you invested in ?

⬀Term life insurance
⬀Whole life policy
⬀Endowment policy
⬀Unit linked insurance policy
⬀Money back policy

7. What is the purpose of your investment in these policies ?

⬀Tax saving
⬀Earning from investment
⬀Retirement plans
⬀Children’s future plans
⬀Other purpose, please specify _________________________

39
 8. Which companies insurance plans have you invested in ?
⬀LIC of India
⬀SBI life insurance
⬀Others, please specify _______________________

9. If you have invested in endowment plans either in LIC or SBI please fill the
following details

A. Which endowment policies have you purchased ?

SBI Life Insurance LIC of India

⬀Smart money back gold ⬀Single premium endowment plan

⬀Shubhnivesh ⬀New endowment plan

⬀Eshield ⬀New jeevananand

⬀Smart guarantee saving plan ⬀Jeevanrakshak

⬀Smart champ insurance ⬀Limited period endowment plan

⬀Smart money planner ⬀Jeevanlakshya

⬀Smart income protect ⬀New endowment plus

B. What is the term of these policies ?

SBI Life Insurance LIC of India

⬀Less than 10 years ⬀Less than 10 years

⬀10 years to 20 years ⬀10 years to 20 years

⬀20 years to 30 years ⬀20 years to 30 years

⬀More than 30 years ⬀More than 30 years

C. What are the benefits of these plan ?

⬀Advantage of life cover
⬀Deferred maturity payment
⬀Accidental death benefit
⬀Rebates on large sum assured
⬀Others, please specify___________________________

40
 D. Who recommended these policies to you ?

SBI Life Insurance LIC of India

⬀Family members ⬀Family members

⬀Friends ⬀Friends

⬀Insurance agent or salesmen ⬀Insurance agent or sales man

⬀Internet ⬀Internet

⬀Others, please ⬀Others, please

specify____________________ specify_______________________

D. Are you aware of all terms & conditions of the policies?

⬀Yes
⬀No

10. Please fill the following questions with respect to the insurance company, Please
rate following services on a scale of 1 to 5 (where 1 is the best & 5 is the worst)

Questions SBI Life LIC of

Insurance India

A. Ease in understanding terms & conditions of policy.

B. Convenient premium payment options (online

payment, cheque payment, payment at their office)

C. Friendliness of staff

D. Knowledge level of staff or agent

E. Past experience during surrender or maturity of policy

F. Complaint resolution

11. Between SBI & LIC, which company would you recommend for endowment policies?
⬀SBI life insurance
⬀LIC of India

41
 12. Would you like to add anything in the context of endowment policies of SBI & LIC?
________________________________________________

End of Questionnaire.

Thank You for Your Time.

42