A

SUMMER TRAINING REPORT

ON

“A STUDY OF CONSUMER BEHAVIOUR IN RELATION TO

INSURANCE PRODUCTS IN IDBI FEDERAL LIFE INSURANCE CO.
LTD.”

Submitted in partial fulfillment of the requirement for the

award of degree of

Bachelor of Business Administration

Session 2017-2020

Under the supervision of: Submitted by:

Mr. Vikas Nain Name : Hardik Wadhwa

(Assistant Professor, PIET) Univ.RollNo:170004074

Panipat Institute of Engineering & Technology

Affiliated to Kurukshetra University, Kurukshetra

1
 DECLARATION

I, Hardik Wadhwa student of P.I.E.T. (PANIPAT INSTITUTE OF ENGINEERING AND

TECHNOLOGY) studying Bachelor of Business Administration (BBA) hereby declare that
the summer training project entitled '' Study of Consumer Behaviour In Relation to
Insurance Products In IDBI Federal Life Insurance Co. Ltd. '' submitted in fulfillment for
the requirement of degree of Bachelor of Business Administration. It is the original work
done by me and the information provided in the study is authentic to the best of my
knowledge. This study report has not been submitted to any other institution or university for
the award of any degree elsewhere.

Signature of Faculty Signature of Candidate

Mr. Vikas Nain Hardik Wadhwa

Assistant Professor College Roll No. 17317

Mr. Atul Gautam

(HOD BBA)

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 ACKNOWLEDGEMENT

Every work involves the contribution of lots of people but it is not easy to mention each and
everybody’s name but through this acknowledgement I have tried to thank all those people
who have directly or indirectly helped me in completion of my project.

I would like to thank Mr. Atul Gautam (HOD, BBA Dept.), who gave me great
opportunities to learn and experience in this corporate world. I am also thankful to all the
faculty of my department who provided me all the guidance and support I needed.

I wish to express my deep gratitude to Mr. Vikas Nain for acting as a guide and providing
me with continuous support and guidance. This report could not have been completed without
the inputs and the words of advice from him for which I shall always remain grateful to him.

It was his encouragement, faith and help rendered to me that made this project a success. His
unstinting and timely advice and encouragement stood as a constant source of inspiration.
They always stood beside me to enlighten my path with their knowledge and work
experience. Last but not the least, I am very thankful to all those who directly or indirectly
has helped me to complete my report and gained a good experience in the company to learn
the workings of the organizations. I would also like to thank all the employees at IDBI
Federal Life Insurance Co. Ltd. who helped me at every step during my training.

At last, I would thank to all my family, friends and my lecturers for giving valuable
suggestions and all sorts of help at the different stages for the preparation of this report.

Name : Hardik Wadhwa

Roll No : 17317

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PREFACE

The summer training in an organizationis an integrated part of BBA Program.

It exposes student to the problem areas and provides knowledge as how to face these
problems areas and provide confidence as how to solve these problems. There is gap between
theory and practice, so training is aimed at removing this gap and to increase the process of
communication between future and industrial sector. I did more than hundred trainings

During this period of training I came to know that how the Human Resource Management
&Marketing play significance in overall progress of Industry. However, justification cannot
be done in few pages that what I have learnt in this period but I have still tried my best to
cover as much as possible in this report.

This report was undertaken to the study of Consumer Behavior In Relation to Insurance
Products In IDBI Federal Life Insurance Co. Ltd. This report is divided into various parts
which gives a clear picture of what my study all about right from the introduction of the
company to analysis – findings.

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 TABLE OF CONTENTS

S.NO. CHAPTER NO. PARTICULARS PAGE NO.

1 a. Certificate -
2 b. Declaration -
3 c. Acknowledgement -
4 d. Preface -
5 Chapter 1 Introduction

 Industry 1-11
 Company
12-19
 Project

20-28
6 Chapter 2 Literature review 29-35

7 Chapter 3 Research Methodology 36-39

 Conceptualization 36

 Significance of study 36

 Objective of study 36-37

 Scope of study 37

37
 Research design

37-38
 Collection of data

38
 Source of data collection

38
 Sampling techniques

39
 Analytical tool used in study
39
 Limitation of study

8 Chapter 4 Data Analysis and Interpretation 40-66

5
9 Chapter 5  Findings 67
 Conclusion
68-69
 Suggestion

70

Bibliography -
ANNEXURE -

 Sample Questionnaire

6
 CHAPTER-1

INTRODUCTION TO INDUSTRY

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1.1.1 HISTORY OF INSURANCE

In some sense we can say that insurance appeared simultaneously with appearance of human
society. In earlier economies, we can see insurance in the form of people helping each other.
For example, if a house is burnt, the members of the community help build a new one. Should
the same thing happen to one’s neighbor, the other neighbors must come to help Otherwise
neighbors will not receive help in the future. Insurance in the modern sense, started as a
method of transferring or distributing risk, were practiced by Chinese and Babylonian traders
as long ago as the 3rd and 2nd millennia BC, respectively. Chinese merchants travelling
treacherous river rapids would redistribute their cargo across many vessels to limit the loss
due to any single vessel’s capsizing. The Babylonians developed a system which was
recorded in the famous Code of Hammurabi, c.1750 BC, and practiced by early
Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he
would pay the lender an additional sum in exchange for the lender’s guarantee to cancel the
loan should the shipment be stole/Greek monarchs were the first /to insure their people and
/made it official by registering /the insuring process in governmental notary offices.
Merchants whose goods were being shipped together would pay a proportionally divided
premium which would be used to reimburse any merchant whose goods were jettisoned
during storm or sinking of the vessel in the sea. The Greeks and Romans introduced the
origins of health and life insurance c. 600 AD when they organized guilds called
―benevolent societies which cared for the families and paid funeral expenses of members
upon death. Guilds in the middle Ages served a similar purpose before insurance was
established in the late 17th century, friendly societies existed in England, in which people
donated amounts of money to a general sum that could be used for emergencies. Separate
insurance contracts were invented in Greeks rulers in the 14th century, as were insurance
pools backed by pledges of landed estates. These new insurance contracts allowed insurance
to be separated from investment, a separation of roles that first proved useful in marine
insurance. Insurance became far more sophisticated in post-Renaissance Europe, and
specialized varieties developed. Insurance as we know it today can be traced to the Great Fire
of London, which in 1666 A.D devoured 13,200 houses. In the aftermath of this disaster,
Nicholas Barbon opened an office to insure buildings. In 1680, he established England’s first
fire insurance company, The Fire Office to insure brick and frame homes.

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1.1.2 INDUSTRY BACKGROUND

The insurance industry of India consists of 51 insurance companies of which 24 are in life
insurance business and 27 are non-life insurers. Among the life insurers, Life Insurance
Corporation (LIC) is the sole public sector company. Apart from that, among the non-life

Insurers, there are six public sector insurers. In addition to these, there is sole national
reinsurer, namely, General Insurance Corporation of India. Other stakeholders in Indian
Insurance market include Agents (Individual and Corporate), Brokers, Surveyors and Third

Party Administrators servicing Health Insurance claims.

Out of 27 non-life insurance companies, 4 private sector insurers are registered to underwrite
policies exclusively in Health, Personal Accident and Travel insurance segments. They are
Star Health and Allied Insurance Company Ltd, Apollo Munich Health Insurance Company
Ltd, Max Bupa Health Insurance Company Ltd and Religare Health Insurance Company Ltd.
There are two more specialized insurers belonging to public sector, namely, Export Credit
Guarantee Corporation of India for Credit Insurance and Agriculture Insurance Company Ltd
for Crop Insurance

The insurance sector in India has come to 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 reviles the 360-degre turn witnessed over a period of almost two
centuries.

1.1.3 A BRIEF HISTORY OFNSURANCE SECTOR IN INDIA

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Life Insurance in its modern form came to India from England in the year 1818. Oriental Life
Insurance Company started by Europeans in Calcutta was the first life insurance company on
Indian Soil. All the insurance companies established during that period were brought up with
the purpose of looking after the needs of European community and Indian natives were not
being insured by these companies. However, later with the efforts of eminent people like
Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But
Indian lives were being treated as sub-standard lives and heavy extra premiums were being
charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian
life insurance company in the year 1870, and covered Indian lives at normal rates.

Insurance is a Rs 450 billion industry in India. The life insurance segment writes about 80%
of the overall market value. Indian Insurance market was at its all-time high in 2003 with a
growth of about 17.4% over the previous year. Since 2001 Insurance is growing at the rate of
15-20 % annually. The growth in the insurance industry is affected by volatility in real estate
rates, GDP rates and long-term interest rates. Fluctuations in exchange rates also affect the
growth in this sector. The gross premium as a percentage of the GDP has gone up from 2.3 in
the year 2000 to 4.8 in 2006. The premium as percentage of the country’s gross domestic
product (GDP) has increased from 4.8 percent in 2006 to 5.2 percent in 2011. Together with
banking services, it adds about 7% to the country’s GDP.

Some of the important milestones in the life insurance business in India are

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil
started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started
its business

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

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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 are 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 crores from the Government of India.

Indian Insurance in 21st Century:

2000: IRDA starts giving licenses to private insurers: ICICI prudential and HDFC Standard
Life insurance first private insurers to sell a policy

2002: Banks allowed selling insurance plans. As TPAs enter the scene, insurers start setting
non-life claims in the cashless mode

2007: First Online Insurance portal, www.insurancemall.in set up by an Indian Insurance

Broker, Bonsai Insurance Broking Pvt. Ltd.

1.1.4 INSURANCE SECTOR REFORMS

Cap on ULIP charges and increase in lock in period:

 Restriction on high distribution partner payouts

 Reduction in overall contribution of ULIPs to new business premium
 Benefit derived by insurers on account of high lapse and hence more surrender
penalty will be significantly impacted due to the cap on surrender charges
 Insurers showing profits due to release of lapse reserves will not be able to sustain the
same in the future unless long term operational efficiencies are developed

Registration of Referral Agents:

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  There has been a slew of regulations around turnover criteria to be a referral partner
and cap on referral fee income as well as share of income through referral business
 Training and tele-callers has been made mandatory
 Cost of compliance expected to increase and some referral partners who may have to
apply for Broking license which could delay insurance distribution operations

Compulsory purchase of annuity in pension plans:

 Even in case the policy is surrendered, 2/3rd of accumulated funds will be used to
purchase annuity
 Exit option being constrained may have significant negative implications for the
product segment

Guidelines around agents:

 Persistency norms- the regulation stipulates a min level of persistency to be achieved

by each licensed agent. This is expected to reduce the agency force in the industry
 License renewal- IRDA has mandated a min business requirement norm for licensing
agent. This is expected to reduce part-time agents thus improving customer service

1.1.5 INDIAN INSURANCE MARKET

The insurance sector which stood at a strong US$ 72 billion in 2012 has the potential to grow
to US$ 280 billion by 2020. This growth is driven by India’s favorable regulatory
environment which guarantees stability and fair play. This environment has given rise to an
insurance market which encourages foreign investors to tap into the sector’s massive
potential. Ever since the Indian government liberalized the insurance sector in 2000 and
opened the doors for private participation, the sector has gone from strength to strength. The
resultant competition has provided the consumer with a never-before-seen range of products
and providers, and also enhanced service levels markedly. The health of the insurance sector
reflects a country’s economy. This sector not only generates long-term funds for
infrastructure development, but also increases a country’s risk-taking capacity. India’s

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economic growth since the turn of the century is viewed as a significant development in the
global economy. This view is helped in no small part by a booming insurance industry

1.1.6 INDUSTRY DYNAMICS

Factors that influence consistent growth in insurance sector are:

 Effective distribution channels – The efficiency and cost of the various distribution
strategies used by companies are significant to their success in the insurance business.
This particularly holds true for the retail business.

 Focus on overall financial inclusion – As time evolves, so must the approach of the
insurance sector in India. The objective of the insurance sector should ideally be to
offer a broader range of activities to a wider populace.

 Consumer needs and preferences – The growth of India’s insurance industry can be
attributed to product innovation, dynamic distribution channels, and vibrant publicity
and promotional campaigns run by insurance companies. Benefits attached to the
products and the manner in which they are delivered (through various marketing tie-
ups) have helped bring customers and insurance companies closer to each other and
made the latter more relevant

1.1.7 TYPES OF INSURANCES:

Insurance business is divided into four classes:

1. Life Insurance
2. Fire
3. Marine
4. Miscellaneous Insurance.

Life insurers undertake the Life Insurance business; general insurers handle the rest. The
Business of insurance essentially means defraying risks attached to an activity (including life)

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and sharing the risks between various entities, both persons and organizations. Insurance
companies are important players in financial markets as they collect and invest large amounts
of premium in various investment instruments.

Life insurance (or life assurance, especially in the Commonwealth of Nations), is a contract

between an insurance policy holder and an insurer or assurer, where the insurer promises to
pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon
the death of an insured person (often the policy holder). Depending on the contract, other
events such as terminal illness or critical illness can also trigger payment. The policy holder
typically pays a premium, either regularly or as one lump sum. Other expenses, such as
funeral expenses, can also be included in the benefits.

Life policies are legal contracts and the terms of the contract describe the limitations of the
insured events. Specific exclusions are often written into the contract to limit the liability of
the insurer; common examples are claims relating to suicide, fraud, war, riot, and civil
commotion.

Life-based contracts tend to fall into two major categories:

 Protection policies – designed to provide a benefit, typically a lump sum payment, in

the event of a specified occurrence. A common form - more common in years past - of a
protection policy design is term insurance.

 Investment policies – the main objective of these policies is to facilitate the growth of

capital by regular or single premiums. Common forms (in the U.S.) are whole
life, universal life, and variable life policies.

 Term life insurance or term assurance is life insurance that provides coverage at a

fixed rate of payments for a limited period of time, the relevant term. After that period
expires, coverage at the previous rate of premiums is no longer guaranteed and the
client must either forgo coverage or potentially obtain further coverage with different
payments or conditions. If the life insured dies during the term, the death benefit will
be paid to the beneficiary. Term insurance is typically the least expensive way to
purchase a substantial death benefit on a coverage amount per premium dollar basis
over a specific period of time.

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  Term life insurance can be contrasted to permanent life insurance such as whole
discontinues coverage because he or she has sold the insured car or home, the
insurance company will not refund the full premium. Whole life insurance, or whole
of life assurance (in the Commonwealth of Nations), sometimes called "straight life"
or "ordinary life," is a life insurance policy which is guaranteed to remain in force for
the insured's entire lifetime, provided required premiums are paid, or to the maturity
date.[1] As a life insurance policy it represents a contract between the insured and
insurer that as long as the contract terms are met, the insurer will pay the death benefit
of the policy to the policy's beneficiaries when the insured dies. Because whole life
policies are guaranteed to remain in force as long as the required premiums are paid,
the premiums are typically much higher than those of term life insurance where the
premium is fixed only for a limited term. Whole life premiums are fixed, based on the
age of issue, and usually do not increase with age. The insured party normally pays
premiums until death, except for limited pay policies which may be paid-up in 10
years, 20 years, or at age 65. Whole life insurance belongs to the cash value category
of life insurance, which also includes universal life, variable life, and endowment
policies.life, universal life, and variable universal life, which guarantee coverage at
fixed premiums for the lifetime of the covered individual unless the policy is allowed
to lapse. Term insurance is not generally used for estate planning needs or charitable
giving strategies but is used for pure income replacement needs for an individual.
Term insurance functions in a manner similar to most other types of insurance in that
it satisfies claims against what is insured if the premiums are up to date and the
contract has not expired and does not provide for a return of premium dollars if no
claims are filed. As an example, auto insurance will satisfy claims against the insured
in the event of an accident and a homeowner policy will satisfy claims against the
home if it is damaged or destroyed, for example, by fire. Whether or not these events
will occur is uncertain. If the policyholder discontinues coverage because he or she
has sold the insured car or home, the insurance company will not refund the full
premium.

Fire insurance means insurance against any loss caused by fire. Section 2(61 of the
Insurance Act defines fire insurance as follows: “Fire insurance business means the business
of effecting, otherwise than incidentally to some other class of business, contracts of

15
 insurance against loss by or incidental to fire or other occurrence customarily included among
the risks insured against in fire insurance policies.”
Characteristics of Fire Insurance

1. Fire insurance is a contract of indemnity. The insurer is liable only to the extent of the
actual loss suffered. If there is no loss there is no liability even if there is a fire.

2. Fire insurance is a contract of good faith. The policy-holder and the insurer must
disclose all the material facts known to them.

3. Fire insurance policy is usually made for one year only. The policy can be renewed
according to the terms of the policy.

4. The contract of insurance is embodied in a policy called the fire policy. Such policies
usually cover specific properties for a specified period.

5. Insurable Interest: A fire policy is valid only if the policy-holder has an insurable
interest in the property covered. Such interest must exist at the time when the loss occurs. In
English cases it has been held that the following persons have insurable interest for the
purposes of fire insurance- owner; tenants, bailees, including carriers; mortgages and charge-
holders.

6. In case of several policies for the same property, each insurer is entitled to
contribution from the others. After a loss occurs and payment is made, the insurer is
subrogated to the rights and interests of the policy-holder. An insurer can reinsure a part of
the risk.

7. Fire policies cover losses caused proximately by fire. The term loss by fire is
interpreted liberally. Example: A women hid her jewellery under the coal in her fireplace.
Later on she

8. Fire policies generally contain a condition that the insurer will not be liable if the fire
is caused by riot, civil disturbances, war and explosions. In the absence of any
specific expectation the insurer is liable for all losses caused by fire, whatever may be
the causes of the fire.

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 9. Assignment: According to English law a policy of fire insurance can be assigned only
with the consent of the insurer. In India such consent is not necessary and the policy
can be assigned as a chose-in-action under the Transfer of Property Act. The insurer is
bound when notice is given to him. But the assignee cannot be recovering damages
unless he has an insurable interest in the property at the time when the loss occurs. A
stranger cannot sue on a fire policy.

10. Payment of Claims: Fire policies generally contain a clause providing that upon the
occurrence of fire the insurer shall be immediately notified so that the insurer can take
steps to salvage the remainder of the property and can also determine the extent of the
loss. Insurance companies keep experts on their staff of value the loss. If in a policy
there is an international over valuation of the property by the policy-holder, the policy
may be avoided onthe ground of fraud.

Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport or
cargo by which property is transferred, acquired, or held between the points of origin and
final destination. Cargo insurance is a sub-branch of marine insurance, though Marine also
includes Onshore and Offshore exposed property, (container terminals, ports, oil platforms,
pipelines), Hull, Marine Casualty, and Marine Liability. When goods are transported by mail
or courier, shipping insurance is used instead.

The different types of marine insurance can be elaborated as follows:

 Cargo Insurance: Cargo insurance caters specifically to the cargo of the ship and
also pertains to the belongings of a ship’s voyagers.

 Hull Insurance: Hull insurance mainly caters to the torso and hull of the vessel along
with all the articles and pieces of furniture in the ship. This type of marine insurance
is mainly taken out by the owner of the ship in order to avoid any loss to the ship in
case of any mishaps occurring.

 Liability Insurance: Liability insurance is that type of marine insurance where

compensation is sought to be provided to any liability occurring on account of a ship
crashing or colliding and on account of any other induced attacks.

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  Freight Insurance: Freight insurance offers and provides protection to merchant
vessels’ corporations which stand a chance of losing money in the form of freight in
case the cargo is lost due to the ship meeting with an accident. This type of marine
insurance solves the problem of companies losing money because of a few
unprecedented events and accidents occurring.

In addition to these types of marine insurance, there are also various types of marine
insurance policies which are offered to the clients by insurance companies so as to provide
the clients with flexibility while choosing a marine insurance policy. The availability of a
wide array of marine insurance policies gives a client a wide arena to choose from, thus
enabling him to get the best deal for his ship and cargo

1.2 INTRODUCTION TO THE COMPANY

1.2.1 ABOUT IDBI FEDERAL LIFE INSURANCE

IDBI Federal Life Insurance is one of India’s growing life insurance companies and offers a

diverse range of wealth management, protection and retirement solutions to individual and
corporate customers. IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank,
India’s premier development and commercial bank, Federal Bank, one of India’s leading
private sector banks and Ages, a multinational insurance giant based out of Europe.
Having commenced operations in 2008, IDBI Federal was able to achieve breakeven within
just 5 years; the Company’s passion for innovation and growth helped it achieve this feat. 
Through a nationwide network of 3, 014 branches of IDBI Bank and Federal Bank, and a
sizeable network of advisors and partners, IDBI Federal Life Insurance has achieved presence
across the length and breadth of the country. As on March 31st,2015 the company has issued
nearly 8.23 lakhs policies with a sum assured of over Rs. 51,918 crores. IDBI Federal Life
Insurance has total assets under management of 4,893 crores and a robust capital base of over

800 crores, as on March 31st, 2016.

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1.2.2ABOUT THE SPONSORS OF IDBI FEDERAL LIFE INSURANCE

CO. LTD.

IDBI Bank Ltd. continues to be, since its inception, India’s premier industrial development
bank. It came into being as on July 01, 1964 to support India’s industrial backbone. Today, it
is amongst India’s foremost commercial banks, with a wide range of innovative products and
services, serving retail and corporate customers in all corners of the country from 1717
branches and 3000 ATMs. The Bank offers its customers an extensive range of diversified
services including project finance, term lending, working capital facilities, lease finance,
venture capital, loan syndication, corporate advisory services and legal and technical advisory
services to its corporate clients as well as mortgages and personal loans to its retail clients. As
part of its development activities, IDBI Bank has been instrumental in sponsoring the
development of key institutions involved in India’s financial sector – National Stock
Exchange of India Limited (NSE) and National Securities Depository Ltd, SHCIL (Stock
Holding Corporation of India Ltd), CARE (Credit Analysis and Research Ltd). 

Federal Bank is one of India’s leading private sector banks, with a dominant presence in the
state of Kerala. It has a strong network of over 1,247 branches and 1,485 ATMs spread across
India. The bank provides over four million retail customers with a wide variety of financial
products. Federal Bank is one of the first large Indian banks to have an entirely automated
and interconnected branch network. In addition to interconnected branches and ATMs, the
Bank has a wide range of services like Internet Banking, Mobile Banking, Tele Banking, Any
Where Banking, debit cards, online bill payment and call center facilities to offer round the
clock banking convenience to its customers. The Bank has been a pioneer in providing
innovative technological solutions to its customers and the Bank has won several awards and
recommendations.

Ageas is an international insurance group with a heritage spanning 190 years. Ranked among
the top 20 insurance companies in Europe, Ageas has chosen to concentrate its business
activities in Europe and Asia, which together make up the largest share of the global
insurance market. These are grouped around four segments: Belgium, United Kingdom,
Continental Europe and Asia and served through a combination of wholly owned subsidiaries

19
 and partnerships with strong financial institutions and key distributors around the world.
Ageas operates successful partnerships in Belgium, the UK, Luxembourg, Italy, Portugal,
Turkey, China, Malaysia, India and Thailand and has subsidiaries in France, Hong Kong and
the UK. Ageas is the market leader in Belgium for individual life and employee benefits, as
well as a leading Non-Life player through AG Insurance. In the UK, Ageas is the sixth largest
Non-Life insurer with a number 3 position in cars insured and has a strong presence in the
over 50’s market. Ageas employs more than 13,000 people in the consolidated entities and
over 30,000 in the non-consolidated partnerships, and has annual inflows of more than EUR
23billion.

1.2.3COMPANY’S VISION, MISSION AND VALUES

VISION

To be the leading provider of wealth management, protection and retirement solutions that
meets the needs of our customers and adds value to their lives.

MISSION
To continually strive to enhance customer experience through innovative product offerings,
dedicated relationship management and superior service delivery while striving to interact
with our customers in the most convenient and cost-effective manner.

To be transparent in the way we deal with our customers and to act with integrity.

To invest in and build quality human capital in order to achieve our mission.

VALUES

 Transparency: Crystal Clear communication to our partners and stakeholders

 Value to Customers: A product and service offering in which customers perceive

value

20
 Rock Solid and Delivery on Promise: This translates into being financially strong,
operationally robust and having clarity in claims

 Customer-friendly: Advice and support in working with customers and partners

 Profit to Stakeholders: Balance the interests of customers, partners, employees,

shareholders and the community at large

EXCELLENCE

"In every aspect of work ranging from the in-house training institute to the detailed Personal
Insurance Plan. IDBI Federal is focused on achieving the highest standards of quality in
every aspect of their business"

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HONESTY

Is the heart of the Life Insurance business? IDBI Federal believes that above all, Life
Insurance is based on trust. Transparency, Dependability and Integrity will form the
cornerstones of the IDBI Federal experience

KNOWLEDGE

Is what makes experts. IDBI Federal is focused on the Life Insurance business. Perfectly
combining global expertise with local knowledge, IDBI Federal is the Indian Life Insurance
specialist.

CARING

For the customer IDBI Federal is redefining the Life Insurance paradigm to focus on the
needs of the customers. The IDBI Federal service process is responsive, personalized,
humane and empathetic.

CULTURE

Our "in house culture recipe" has some of the finest ingredients going into its making. Some
of the more prominent aspects of our culture are stated below:

i. Customer comes first

ii. Do it right the first time

iii. Bias for result oriented action

iv. Financial strength and discipline

v. Clarity of purpose

vi. International quality standards

vii. Inclusive Meritocracy

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viii. Learning opportunities

ix. Fun at work

x. Commitment to published value system

1.2.4 TECHNOLOGY

To monitor and manage its network equipment across 34 sites, IDBI Federal uses Tulip
Proactive Managed CE solution. The solution includes device management, proactive
troubleshooting and notification support. With the implementation of the solution, IDBI has
reported improvement of network performance and availability, with a faster, more effective
change and configuration management.

1.2.5 PRODUCTS

IDBI Fortis launched its first set of products across India in March 2008, after receiving the
requisite approvals from the Insurance Regulatory and Development Authority (IRDA). IDBI
Federal offers services through a nationwide network across the branches of IDBI Bank and
Federal Bank in addition to a network of advisors and partners. IDBI Federal has 60 branches
across the country.

1.2.6 SPONSORSHIPS, AWARDS

IDBI Fortis Life Insurance Company was selected as the title sponsor for the India-Sri Lanka
Cricket Series. This was followed by the IDBI Fortis WealthsuranceTwenty20.
‘Wealthsurance Made Easy’ (WME), a knowledge aid by IDBI Fortis for its sales force, won
The Bronze Dragon in the category for ‘Best Dealer/Sales Force activity’ at the Promotion
Marketing Awards of Asia (PMAA).

IDBI Federal has also achieved break-even in just 5 years of service whereas it takes almost
10-15 years or more for other Insurance Companies to do so.

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1.2.7 PRODUCTS OFFERED

a. IDBI Federal Childsurance Savings Protection Plan is a non-linked

participating endowment plan that ensures a child’s future. Childsurances
Savings is designed to give the customers, guaranteed annual payouts and also
aid the important milestones in their child’s life. In the unfortunate event of
the parent not being around, the policy will continue exactly as they had
planned it, without any further premiums being paid. In other words, this plan
ensures that their child gets to live his/her dream exactly as they have planned,
whether or not their parents are around.
b.
c. IDBI Federal Income assurances Guaranteed Money Back Insurance
Plan is a non-linked non-participating money back plan which gives
guaranteed returns on an investment, so that the customer stops worrying
about the future. With Income assurance, they can guarantee a secure future
for their families even when they are not around.

d. IDBI Federal Life insurance Savings Insurance Plan is a fixed term non-
linked participating plan that provides twin benefits of long-term savings and
life cover. With Life insurance Savings, customers’ small savings will help
them realize their big dreams that they have for their selves and their family.
This plan also offers the benefit of life cover that will provide financial
security to their family in their absence

24
1.2.8 HISTORY OF THE ORGANIZATION

2006: -

- IDBI signs MOU with Fortis

- IDBI - Tripartite MOU with Federal Bank & Forties Insurance International

- IDBI, Federal Bank and Fortis Sign Joint Venture Agreement to Establish A New Life
Insurance Company in India

2009:-

- IDBI Federal Life launches new plan for senior citizens.

- IDBI Fortis redefines endowment & money back with Incomesurance™

- IDBI Fortis launches Termsura™ Protection Plan

- IDBI Fortis bags bronze Dragon at 'PMAA 2009'

- IDBI Fortis Life Insurance uses an interactive application to help users easily
calculate their taxes

- IDBI Fortis launches Incomesurance™ Immediate Annuity

- IDBI Fortis launches Retiresurance™ Pension Plan

- IDBI Fortis' Boss-Ka-Boss bags PRCI Award

- IDBI Fortis announces Rs 250cr capital infusion

2010:-

- IDBI Federal launches brand new campaigns!

25
 - IDBI Federal introduces a cover for loans, Loansurance®

- IDBI Federal launches Wealthsurance Milestone Plan

- IDBI Fortis Life Insurance is now IDBI Federal Life Insurance

2011:-

- IDBI Federal heralds the New Year with Childsurance

- IDBI Federal unveils 3-in-1 Lifesurance Savings Plan

- IDBI Federal launches insured wealth plan

- IDBI Federal pioneers Medical Test-free Term Plan for Seniors

- IDBI Federal launches unit linked Pension Plan

- IDBI Federal targets HNIs with Wealthsurances Premier

- IDBI Federal launches Retiresurances Guaranteed Pension Plan

- IDBI Federal-Samhita financial literacy drive a big hit in M

2012:-

- IDBI Federal launches a plan with double life cover and no medicals

- IDBI Federal makes its online debut

- IDBI Federal Bondsurances™ plan offers attractive guaranteed Tax-Free Returns,

Life Cover

- IDBI Federal and IDBI Bank reaches out to Surli through Termsurance Grameen
Suraksha

2013:-

26
 -IDBI Federal breaks-even in Five years; posts maiden profit of Rs 9.24 crore

-IDBI Federal in association with Phoenix Foundation organizes a trek for the
physically challenged

2014:-

- IDBI Federal launches 7 new plans

- IDBI Federal backs home grown talent; elevates Vighnesh Shahanes as CE

2015:-

- IDBI Federal is on 13th rank in new business (individual business)

- IDBI Federal achieve 8th ranking for single premium against 14th recorded last year
- IDBI Federal achieved 93% increase in earnings before tax, taking it to Rs.155 Crore
- IDBI Federal achieve 76% persistency for 13th month – one of the best in the industry

2016:-

- IDBI Federal crosses over 3,000 branches pan India

1.3 INTRODUCTION TO THE TOPIC

Human life is full of risksand uncertainties. We are social human beings; we have certain
responsibilities too. Consumers in India have big influence of emotions and rationality on
their buying decisions. They believe in future rather than present and desire to lead a better
and secured future. In this direction life insurance services have its own value to minimize
risk and uncertainties. Indian economy is developing and having huge middle-class societal
status and salaried persons. Money value for current needs and future desires generate the
reasons behind holding policy. An attempt made in this report to study the buying behavior
of consumers towards life insurance services.

Analysis of consumer behavior is perceived as cornerstone of a successful marketing strategy

.Consumer behavior is a mental as well as emotional process and the observable behavior of
consumers during searching, purchasing and post consumption of a products and services.

27
Consumer behavior is action and decision process of people who purchase goods and services
for consumption If these defining criteria are closely observed, it is evident that analyzing
consumer’s decision-making process is the composed of entire notion of consumer behavior.

Consumer behavior explains the reasons and logic that underlie purchasing decisions and
consumption patterns; it explains the processes through which buyers make decisions.The
study includes within its purview, the interplay between cognition, affect and behavior that
goes on within a consumer during the consumption process: selecting, using and disposing of
goods and services.Cognition: This includes within its ambit the “knowledge, information
processing and thinking” part; It includes the mental processes involved in processing of
information, thinking and interpretation of stimuli (people, objects, things, places and events).
In our case, stimuli would be product or service offering.

Affect: This is the “feelings” part. It includes the favorable or unfavorable feelings and
corresponding emotions towards stimuli (e.g. towards a product or service offering or a
brand). These vary in direction, intensity and persistence.Behaviour: This is the “visible”
part. In our case, this could be the purchase activity: to buy or not a buy (again specific to a
product or service offering, a brand or even related to any of the 4 Ps).
The interaction is reciprocal between each of the three towards each other and with the
environment.Studying consumer behaviour is important because it enables us to better focus
our efforts where we can get the results we want. By understanding consumer behaviour; our
business will provide the consumer with better goods and services. Better goods and services
results in more sales and therefore more profit. Not only is it important to improve goods and
services; it is necessary to know what type of products and what type of service to offer.

Consumer behaviour is strongly tied to their phase in the life cycle. Patterns of spending are
dictated by what is happening at a given time. Younger couples with no children have
different needs than those who have started a family. While teenagers and elderly people
have more discretionary income and can spend more freely.Knowing this will help us decide
who our core customer is. By using this information to influence buying decisions; we can
increase sales.It is also important to plan marketing strategies that are focused on this group.
These strategies should target our market and focus on niche marketing. Resources should not
be spent marketing to consumers outside of our target.

28
We will begin to understand our market when we have satisfied certain questions about our
customers. Why do they choose one product over the next? What impact does the role of
culture, education and advertising has on the decision to choose a product? How and why is
the consumer planning to use the product? Why are they loyal to a specific brand? What are
the risks involved in using or switching to our brand? Having the answer to these questions
will help us gain consumer confidence. We may have the best product, but the consumer does
not know this. We will speak to them through our status in the community, our good-will, our
price points and the way our product relates to them. These factors will help to determine
who will become our customers and who won't.Consumers have needs and wants, and our
objective is to identify the need and create the want. Our ultimate goal is to influence
consumer behaviour and convert this into profits for our company. Businesses that can
predict consumer behaviour have the edge over their competitors. To predict consumer
behaviour requires knowledge of the consumers’ values, goals and lifestyle. Companies with
this asset use it to develop better strategies, and are better able to win over consumers. Hence,
this study is very important.

The term consumer behaviour is defined as the behaviour that consumer display in searching
for, purchasing using, evaluating and disposing of products and services that they expect will
satisfy their needs.Consumer behaviour focuses on how individuals make decisions to spend
their available resources (time, money, effort) on consumption-related items that includes
what they buy, why they buy, when they buy it, where they buy it, how often they buy it, how
often they use it, how they evaluate it after the purchase and the impact of such evaluations
on future purchases, and how they dispose of it.”

Two different kinds of consuming entities: the personal consumer and the organizational
consumer.Personal Consumer buys goods and services for his or her own use, for the use of
the household or as a gift for a friend. The products are bought for final use by individuals,
who are referred to as end users or ultimate consumers.Organizational Consumer à Includes
profit and non-profit businesses, government agencies (local, state, national) and institutional
(e.g. schools, hospitals, and prisons), all of which buy products, equipment, and services in
order to run their organizations.

29
DEVELOPMENT OF THE MARKETING CONCEPT AND THE DISCIPLINE OF
CONSUMER BEHAVIOUR:

MARKETING CONCEPT, A BUSINESS ORIENTATION:”

The field of consumer behaviour is rooted in the marketing concept, a business orientation
that evolved in the 1950s through several alternative approaches toward doing business
referred to respectively:”
1. The Production Concept.
2. The Product Concept.”
3. The Selling Concept.”
4. The Marketing Concept.
5. The Societal Marketing Concept
“1) THE PRODUCTION CONCEPT:”
 The production concept assumes that consumers are mostly interested in product
availability at low prices; its implicit marketing objectives are cheap, efficient product
and intensive distribution.”
 It makes sense when consumer is more interested in buying what’s available rather
than wait for what they really want.”
 The main objective is to expand the market.”

“2) THE PRODUCT CONCEPT:”

 The product concept assumes that consumers will buy the product that offers them the
highest quality, the best performance, and the most features.”
 It ensures the company to improve the quality of its product and add new features.”
 The product concept often leads to “marketing myopia” that is focusing on the
product rather than the customer needs.”

“3) THE SELLING CONCEPT:”

 The assumption of the selling concept is that consumers are unlikely to buy the
product unless they are aggressively persuaded to do so – mostly through “hard sell”
approach.”
 The problem in this concept is that it fails to satisfy a customer.”

30
 Promotion can be done through advertisement, sales promotion and public relation.”
 Today the selling concept is utilizedto marketers of unsought products – that is which
people are not willing to buy it (such as life insurance).”

“4) THE MARKETING CONCEPT:”

 It started in 1950’s when some marketers realized we can sell more products by
determining what consumer would buy.”
 Consumer need and wants became the firm’s primary focus.”
 The marketers should make product which can sell, instead of what it has made.”

5) THE SOCIETAL MARKETING CONCEPT:”

 Developing that product which benefits the society. Doing marketing in such a way
that it helps you in increasing your production & also giving benefits to society.”
 The organization should determine the needs, wants and interest of target markets and
deliver the desired satisfaction more effectively and efficiently then do competitors in
a way that maintains or improves the customers and society’s well-being.”
“

IMPLEMENTING THE MARKETING CONCEPT:”

 To identify unsatisfied consumer need, companies had to engage in extensive
marketing research. The marketing concept underscored the importance of consumer
research.”
 The strategic tools that are used to implement the marketing concept include
segmentation, targeting, positioning and the marketing mix”.

“THE ROLE OF CONSUMER RESEARCH:”

 Consumer research describes the process and tools used to study consumer
behaviour.”
 Two theoretical perspectives that guides the development of consumer research”

31
  Positive Approach à It tend to be objective and empirical, to seek caused for
behaviour, and to conduct research studies that can be generalized to larger
population.”
 Interpretthe research done by Interpretivists, on the other hand tends to be qualitative
and based on small samples.

SEGMENTATION TARGETING AND POSITIONING MARKET

SEGMENT

 Dividing a market into distinct groups of buyers with different needs, characteristics
or behaviour who might require separate products or marketing mixes.”
 Market consists of buyers and, buyers differ in one or more ways. They may differ in
their wants, resources, locations, buying attitudes, and buying practices.”


“MARKET POSITIONING:”

 Formulating competitive positioning for a product and a detailed marketing

mix.Developing a distinct image for the product or service in the mind of the
consumer, that will differentiate with the competitors.”

“MARKET TARGETING:”
 The process of evaluating each market segments attractiveness and selecting one or
more segments to enter.”

“MARKETING MIX:”
 The marketing mix consists of a company’s service and/or product offerings to
consumers and the methods and tools it selects to accomplish the exchange. The
marketing mix consists of four elements:”
 The product or service that is the features, designs, brands, and packaging offered,
along with post purchase benefits such as warranties and return policies.”
 Theprice – the list price, including discounts, allowances, and payment methods.”

32
 “The place – the distribution of the product or service through specific store and non-
store outlets”.
 “Promotion – The advertising, sales promotion, public relations, ad sales efforts
designed to build awareness of and demand for the product or service.”

CUSTOMER VALUE, SATISFACTION, AND RETENTION:”

 Marketers today realize that in order to outperform competitors they must achieve the
full profit potential from each and every customer. The three drivers of successful
relationship between marketers and customers are customer value, high levels of
customer satisfaction, and building a structure for customer retention.”

“1) PROVIDING CUSTOMER VALUE:”

Customer value is defined as the ratio between the customers’ perceived benefits
(economic, functional and psychological) and the resources (monetary, time, effort,
psychological) used to obtain those benefits. Perceived value is relative and
subjective.
Example: McDonald’s Corporation to deliver the company’s four core standards;
quality, service, cleanliness, and value.”

2) CUSTOMER SATISFACTION:”
 Customer satisfaction is the individual’s perception of the performance of the product
or service in relation to his or her expectations.”
 The linked levels of customer satisfaction with customer behaviour identified several
types of customers”
 Loyalists: Who keeps purchasing, they are satisfied completely.”
 “Apostles: Whose experiences exceed their expectations and who provide very
positive word of mouth about the company to others.”
 Defectors: Who feel neutral or merely satisfied and are likely to stop doing business
with the company.”

33
  “Terrorists: Who have had negative experiences with the company and who spread
negative word of mouth.”
 Hostages: Who are unhappy customers who stay with the company because of a non-
politic environment or low prices and who are difficult and costly to deal with
because of their frequent complaints?”
 Mercenaries: Who are very satisfied customers but who have no real loyalty to the
company and may defect because of a lower price elsewhere or on impulse, defying
the satisfaction-loyalty rationale.”
 The researches purpose that companies should strive to create apostles, raise the
satisfaction of defectors and turn them in to loyalist avoid having terrorists or
hostages and reduce the number of mercenaries.”

“3) CUSTOMER RETENTION:”

 Customer retention makes it in the best interest of customers to stay with the company
rather than switch to another firm.”
 Loyal customers buy more products.”
 Loyal customers are less prices sensitive and pay less attention to competitor’s
advertising.”
 Servicing existing customers, who are familiar with the firm’s offerings and
processes, is cheaper.”
 Loyal customers spread positive word of mouth and refer other customer.”
 Customer profitability-focused marketing tracks costs and revenues of individual
customers’ ad then categorizes them into tiers based on consumption behaviors that
are specific to the company’s offerings.”
 Recent Study advocates using “customerpyramid” where customers are grouped in 4
ties:”
“1) The Platinum Ties includes heavy users who are not price sensitive and who are willing
to try new offerings.”
“2) The Gold Tier consists of customers who are heavy user but not as profitable because
they are more price sensitive than those in the higher ties. Ask for discount and buy from
several providers.”

34
“3) The Iron Tier consists of customers whose spending volume and profitability do no merit
special treatment from the company.”
“4) The Lead Tier includes customers who actually cost the company money because they
claim more attention than is merited by their spending.”

MARKETING ETHICS & SOCIAL RESPONSIBILITY:”

The societal marketing concept – It is very important components of organizational

effectiveness. It helps us to build good image and also increase in sales. The converse is also
true – Perceptions of a company’s lack of social responsibility or unethical marketing
strategies negatively affect consumer purchase decision.”

CONSUMER BEHAVIOUR & DECISION MAKING ARE INTERDISCIPLINARY:”

Consumer Behaviour was a new field in the mid of late 1960, because the marketing theorists
borrowed the concepts from other scientific disciplinary that is:”

 Psychology à study of the individual, Sociology

 The study of groups, social Psychology
 The study of how an individual operates in groups, anthropology
 The influence of society on the individual, and Economics
 To form the basis of the new marketing discipline.”
 Many Early theory based on economic theory on the notion that individuals
are rationally to maximize their benefits.”

A SIMPLIFIED MODEL OF CONSUMER DECISION MAKING:”

 The process of consumer decision making can be viewed as three distinct but
interlocking stages: the input stage, the process stage, and the output stage.”
 The Input Stage à Influences the consumer’s recognition of a product need and
consists of two major sources of information, the firm’s marketing efforts (the product
itself, its price, its promotion and where it is sold) and the external sociological
influences on the consumers.”

35
 The Process Stage à It is the model focuses on how consumers make decisions. The
psychological factors inherent in each individual.”
 The Output Stage à It is the consumer decision making model consists of two closely
related post decision activities.”

36
CHAPTER-2

37
LITERATURE REVIEW

2.1 LITERATURE REVIEW

Lisa Watson, Mark T. Spence, (2007) studied that consumption things may be showing

emotioncharged. Distinguishing the cause(s) of emotions has clear sensible import to the
understanding of clientbehaviour. Psychological feature appraisal theory serves this
purpose; but,accordhasnot nevertheless emerged regarding word, range of relevant ideas and
concomitant construct measurements, and theoretical linkages between constructs. This
paper tries to rectify this defect. This abstract paper provides Associate in
Nursing living review of emotions literature because it pertains topsychological
feature appraisals and consumption behaviours. Supported this review Associate in
nursing integrative psychological feature appraisal theory is advanced that's ungenerous and
incorporates similarities across the assorted appraisal theory views up to now. Four
appraisals square measure proffered that seem capable of implicating specific emotions and
their effects on client behaviour. The appraisals advanced square measure outcome
desirability that encompasses pleasantness and goal consistency, agency which
incorporates responsibility and controllability, fairness, and certainty. Sample
propositions regarding however psychological feature appraisals have an effect on science
extensiveness have additionally been provided.

Lynn Frewer, violinist Scholderer, Nigel Lambert, (2003) the study has been carried
out within the past, it's been assumedthat customers would settle for novel foods if there's a
concrete and tangible consumer profit related to them, which means that practical foods
would quickly be accepted. However, there is proof that people are seemingly to
disagreewithin extent,to that they're seemingly to shop for merchandise with specific
practical properties. Various cross‐cultural and demographic differences in acceptance found
in the literature are reviewed, still as barriers to dietary modification.lastly, it's argued that
understanding consumers’ risk perceptions and issues related

38
to processtechnologies, rising scientific innovations and their own
health standing might modify the event of data ways that are relevant to wider teams of
people within population, deliver real health advantage to the consumers from products in the
market.

Jaeun Shin, Sangho Moon, (2005) the purpose of this study is to provide an overview of the
economic and clinical impacts of direct‐to‐consumer (DTC) advertising on consumers and
physicians– Controversy around the benefits and concerns associated with DTC advertising
are summarized. The sources area unit sortedsupported their position toward DTC
promotions: defensive or opposing. 2 recent works by Woolskin et al. and by Wiseman et
al. area unit mentioned exhaustive to supply the empirical proof for the impacts of DTC
promotions– however several issues against DTC advertising, evidence‐based papers report
that both consumers and physicians are potentially benefited from it. Consumers rate the
health‐related information contained in DTC advertising as important. Physicians don't feel
that they're pressured to visitinappropriate medications driven by DTC advertising.
Physicians perceive improved communication and education among DTCA‐influenced
patients. However, shoppers tend to overestimate drug effectivenessonce the
ads mistily convey the profit info and later, ask for unessential treatments. DTC
advertisingmust be needed to demonstrate
the profit info victimization actual information. This Processing Re-write Suggestions Done.

“Jana Bowden, David Corkindale, (2005) to help selling management within

the identification and targeting of shopper innovators for novel product by by
selection reviewing and desegregation 3separate streams of analysis, namely, attribute theory,
utility‐awareness theory and modernpsychological feature theory a variety of ancient and
modern analysis involved with the identification of shopper conceivers is by
selection reviewed and critiqued to reinforce selling management's abilityto spot and
target the buyer innovator phase. This analysis, that is self-addressed beneath 3 main sections
personal characteristics, utility‐awareness and psychological feature structures, is then
integrated to supply management with a lot of comprehensive approach by that to spot and
targetshopper innovators. specific stress is placed on the contribution of unit found to be
of restricted quality in this they establish shopper innovators solely retrospectively
once initial adoption, as against operational in a very prognostic manner. It's argued

39
that associate approach based mostly upon shopper utility‐awareness, and therefore the lot
of cognitively oriented figurative learning and embedded data structure approaches will offer
recent psychological featuretheories.The attribute dependentapproaches especially, area
management with hyperbolic management over the method of recent product
adoption inside a target population. Erring from, major chronic diseases can facilitate
shoppers avoid viruses of drug people in danger.”

“AmlanGhosh, (2013)The role money of monetary |of economic} establishments and

financial intermediaries in fostering the economic process by up the potency of capital
accumulation, encouraging savings and ultimately up the productivity of the economy has
been well accepted by currently. Recent studies show that the insurance trade will improve
the economic process through monetary intervention, risk aversion and generating
employment. This study aims to seek out the connection between life assurance trade and
economic development in Asian nation. The study uses the VAR‐VECM model to seek
out out the end of the day and short run relationship (if any) between life assurance growth
and economic process in conjunction with husbandman relation take a look at to counse
any causative relationship. This study finds that there's long run relationship between life
assurance trade and economic development in Asian nation. and therefore,
the husbandman relation takes a look at suggests that life assurance sector improves the
general economic development in Asian nation associated agree preparedness, response and
relief, rehabilitation. The various stakeholders in the process of disaster mitigation are policy
makers, decision makers, administration, professionals, professional institutions, R&D
institutions, financial institutions, insurance sector community, NGOs and the common man.
Insurance has played a very important role. The advanced countries have developed the
insurance system and made it effective and mandatory – as a result the loss of lives and
property is comparatively less. In India, most of the losses suffered in natural disasters are not
insured for reasons such as lack of purchasing power, lack of interest in insurance, theory of
karma attitude and ignorance of availability of such covers. Quite large numbers of agencies
provide the insurance cover and foreign insurance companies have already ventured in such
areas. This implies that the commercial and private sector can also play an essential role in
disaster mitigation. The present study attempts to fill the gap in studies on the role of the
insurance sector in disaster management.”

40
“Samir K. Srivastava, Avishek Ray, (2013) The purpose of this paper is to benchmark the
solvency status of Indian general insurance firms .the paper collects, compiles and analyses
the key financial, operational and business data of eight Indian insurance firms. The authors
first decide on initial firm‐specific economic variables and use data of last five years from
IRDA Reports and Company Annual Reports. The NAIC IRIS ratios method was used to
obtain an initial risk classification. This was used as a proxy of insolvency risk. Linear
regression and logic techniques were thereafter applied to estimate the significant factors
(direction‐wise and magnitude‐wise) which influence insurer solvency. The results suggest
that the factors that most significantly influence Indian non‐life insurers are lines of business,
the firm's market share, the premium growth rate, the underwriting performance and the
claims incurred. Further, the factors which have the strongest effect are market share, change
in inflation rate, firm size, lines of business and claims incurred. The sample of Indian
general insurers used is limited with regard to the time span. No holdout sample was used and
the entire data set was subjected to statistical analysis. These somewhat limit the findings and
implications significant .Insurance have been produced. The purpose of this paper is to
offer a review of this matter.”

“Hima Gupta, (2007) Health insurance in India has shown little development. It has not been
able to evoke enthusiasm among Indian insurers. Consequently, several reports on Indian
health care. Almost 79 per cent of health expenditure is borne by private bodies and the rest
by the public. Authors argue that to stimulate private health insurance growth, the Indian
government should recognize health insurance as a separate line of business and distinguish it
from other non-life insurance. Particular emphasis is placed on the present health care
scenario in India and international field generally. A global comparison of selected Asian
countries, regarding their national incomes and health expenditure in public and private
sectors, generates insights. Third party administrators (TPAs) facilitate a cashless health
services for their customers and offer back‐up services to the insurance companies. Desired
strategies and ways of furthering the role of the Insurance Regulatory and Development
Authority in acting as a regulator for the purpose of ensuring the industry's smooth
functioning is an issue for India’s health services.”

“Alan Earl‐Slater, (1996)Health‐care reform is everywhere. Although different countries are

41
moving at different speeds, using somewhat different means and different routes, they are all
trying to arrive at the same place. The place is called “better value for money in health care”.
Presents details of the health‐care reforms taking place in the Czech Republic, identifying and
discussing the main strands of Czech reforms: the dissolution of the regional health
authorities; the reorientation of district health authorities; the move to a pluralistic semi‐
competitive insurance‐based system; hospitals receiving funding by winning contracts with
purchasers; contracts becoming more sophisticated and being based on cost, volume and
quality factors; changes in the incentives and rewards for GPs; the drive towards a primary‐
care‐led health‐care system; and privatization.”

“Amir Zakery, Abbas Afrazeh (2015) Intangible resources are the most distinctive firms’
assets in competitive environments especially in-service businesses. Insurance firms seeking
more efficient performance than competitors should improve their intellectual capital (IC)
strategies in both aspects of IC creation and utilization. The purpose of this paper is to
investigate and improves IC participation in insurance firms’ efficiency. A two-phase
framework: “explaining IC role in efficiency” and “measuring efficiencies of IC creation and
application” is developed in order to find IC strategies increasing firms’ efficiency and
though competitiveness. Efficiency is measured using data envelopment analysis and the
generalized estimating equations are used as the regression method in order to explain
efficiency with IC measure. Empirical results in Iran insurance sector (during a seven-year
period for 17 Iranian insurers) show some IC components influence firms’ efficiency and
could be intervention points for performance improvement. Then the firms are categorized
into four zones in terms of IC efficiency and strategies are recognized for each category.
Although the research is initiated by the need to embed intangible resources in performance
improvement in insurance sector, the research framework could be strongly applied in other
knowledge-based industry.”

“Helen Cabalu (2005),Reforms in corporate governance in selected Asian countries were

introduced after the financial crisis of 1997–1998. After the financial collapse, several crisis-
affected economies overhauled their corporate governance, strengthening market forces,
implementing tougher regulations and focusing on transparency in decision-making and

42
accountability. Since then, a commitment to improving corporate governance has grown as
governments recognized the need to protect investors’ interests, reduce systemic market risks,
maintain financial stability and enhance investors’ confidence to encourage the return of
capital to the region through better accountability and transparency. The incentive for
corporations to follow best practice is to boost their corporate performance and attract
investment. Effective corporate governance is also recognized as essential for economic
growth. Governments are realizing that good governance of corporations is a source of
competitive advantage and critical to economic and social progress.

Since the financial crisis, corporate governance has become a key policy issue in most of
Asia. Progress in reforming corporate governance, however, has been uneven across Asia.
This paper documents that progress.”

“Victor C.W. Wong, Sammy W.S. Chiu, Analyses the features, strategies and characteristics
of health‐care reforms in the People’s Republic of China. Since the fourteenth Central
Committee of the Chinese Communist Party held in 1992, an emphasis has been placed on
reform strategies such as cost recovery, profit making, diversification of services, and
development of alternative financing strategies in respect of health‐care services provided in
the public sector Argues that the reform strategies employed have created new problems
before solving the old

ones. Inflation of medical cost has been elevated very rapidly. The de‐linkage of state finance
bureau and health service providers has also contributed to the transfer of tension from the
state to the enterprises. There is no sign that quasi‐public health‐care insurance is able to
resolve these problems. Finally, co‐operative medicine in the rural areas has been largely
dismantled, though this direction is going against the will of the state.Argues that a new
balance of responsibility has to be developed as a top social priority between the state,
enterprises and service users in China in order to meet the health‐care needs of the people.”

“Escobar, Francisco Flores, Sergio Monreal, (2010) the purpose of this paper is to analyse the
way in which the insurance industry is facing the renewal of its regulatory framework with
respect to the levels of solvency that insurance entities should maintain. This paper also

43
addresses how technological initiatives in general, and the extensible Business Reporting
Language (XBRL), in particular, are making a key contribution to the process of adaptation
to the new regulation.

“Nicholas D. Paulson, Bruce Babcock, Jonathan Coppess, (2014) The paper analyses the
particular advantages that the application of the XBRL standard can offer in this process, and
highlight new lines for further research after analyzing the current situation of the insurance
industry, the paper concludes that technological systems, such as XBRL, are necessary to
support the consolidation of financial information, and to ensure the digital transparency of
the insurer organizations that are engaged in this new regulatory challenge .XBRL is a key
resource in the European Common Reporting Project whose objective is the implementation
of Basel II in the European Union. The implementation of Solvency II can Ben. The purpose
of this paper is to discuss the growth and rising costs association with the Federal Crop
Insurance program in the USA, justifications for public support, and recent reforms that have
been implemented or proposed to reduce program costs. It also analyses a specific policy to
reduce premium assistance spending.Data from the Risk Management Agency are used to
illustrate historical trends in crop insurance program costs and to analyse the impacts of
imposing a per acre cap on premium assistance. Imposing a per acre cap on premium
assistance could achieve significant savings. A $20 per acre cap is estimated to reduce
premium subsidy expenditures by more than 40 percent. However, the impact of such a
policy would be most severe on crops currently receiving the largest subsidies per acre,
which happen to be some of the largest program crops in the USA.edit from this previous
experience. Therefore, it suggests a proposal for action.”

44
 CHAPTER-3

RESEARCH METHODOLOGY

45
RESEARCH METHODOLOGY

3.1) CONCEPTULIZATION

DEFINING CONSUMER BEHAVIOUR:

- Consumer Behavior is additionally made public as the interaction of forces
that takes place throughout a consumption methodology, among consumers.
- This interaction takes place between three parts viz. knowledge, have an
impact on behavior.
- It continues through pre-purchase activity to the post purchase experience.
- It includes various stages of evaluating as well as acquiring, the exploitation as
well as taking away business and services.
- The word “consumes” exclusively includes every personal shoppers and
business/industrial/organizational shoppers.

3.2) SIGNIFICANCE OF THE STUDY

We may have the best product, but the consumer does not know this. We will speak to them
through our status in the community, our good-will, our price points and the way our product
relates to them. These factors will help to determine who will become our customers and who
won't. consumers have needs and wants, and our objective is to identify the need and create
the want. Our ultimate goal is to influence consumer behavior and convert this into profits for
our company. Businesses that can predict consumer behavior have the edge over their
competitors. To predict consumer behavior requires knowledge of the consumers’ values,
goals and lifestyle. Companies with this asset use it to develop better strategies, and are better
able to win over consumers. Hence, this study is very important.

46
3.3) OBJECTIVE OF STUDY

The main objective of this project is to study the consumer behaviour and various reactions of
customers with reference to IDBI Federal Life Insurance Co. Ltd. And suggest ways to
improve its marketing efforts.

1. To study the trends in life insurance market

2. To study the profile of IDBI Federal’s customers.
3. To study the investors’ behaviour with respect to IDBI Federal Life Insurance.
4. To analyse the investors’ perception about IDBI Federal.

3.4) SCOPE OF STUDY

The scope of a subject refers to everything that is studied as part of that subject. When we set
out to explain the scope of consumer behaviour we need to refer to all that which forms part
of consumer behaviour.

Consumer behaviour includes not only the actual buyer and his act of buying but also the
various roles played by different individuals and the influence they exert on the final
purchase decision.

To define the scope of a subject it is important to set parameters or a framework within which
it shall be studied. This framework is made up of three main sections-the decision process as
represented by the inner-most circle, the individual determinants on the middle Circle and the
external environment which is represented by the outer circle. The study of all these three

47
 sections constitutes the scope of consumer behaviour. Here, we shall dwell on these
constituents of the framework only briefly as they are explained in detail in the following
units.

3.5) RESEARCH DESIGN

Research is a careful inquiry or examination to discover new information or relationship and to

expand and verify existing knowledge. Therefore, we used descriptive research in this study
because it will ensure the minimization of bias and maximization of reliability of data
collected.

3.6)COLLECTION OF DATA

Sample Size: 100 respondents responded to the pre-designed questionnaire.

Period of Study: 45 days (1nd June- 15th July, 2017)

Location of Study: Urban and Rural Area, Panipat

Methodology:

Obtaining first hand information by pitching to customers and getting the survey filled from
them about the insurance products of IDBI and acquiring their views and beliefs about overall
insurance products and hence picking up the areas where we are good and also the areas
where our way of working can be improved in order to enhance customer satisfaction and
increase the business.

48
3.7) SOURCE OF DATA COLLECTION

Primary data: The information has been collected from the feedback received on
questionnaire prepared individually from each consumer in accordance to study their
behavior towards the company and the products.

 Visitors to the company

 Existing Consumers
 Users of Services

3.8) SAMPLING TECHNIQUES

Random Sampling

Since it is generally impossible to study an entire population (every individual in a country,

all college students, every geographic area, etc.), researchers typically rely on sampling to
acquire a section of the population to perform an experiment or observational study. It is
important that the group selected be representative of the population, and not biased in a
systematic manner. For example, a group comprised of the wealthiest individuals in a given
area probably would not accurately reflect the opinions of the entire population in that area.
For this reason, randomization is typically employed to achieve an unbiased sample. The
most common sampling designs are simple random sampling, stratified random sampling,
and multistage random sampling.

49
3.9) ANALYTICAL TOOL USED IN STUDY

Following of the analytical tools are used to analyze and interoperate the feedback from the
consumer to understand their behavior are as follows:-

 Tables
 Charts
 Graphs
 Pie Diagrams

3.10) Limitation of study

1. Limited area:The study was conducted only in Panipat and concrete center areas;
therefore the results are going to be biased and therefore not specifically correct

2. Lack of time: The survey was to be conducted on 100 respondents but as a result of time
constraint and inconvenience of monumental type of respondents, the survey was crammed
by eighty people only.

3. Biased: The survey includes further type of responses of people within the age group of
18-30. Hence, the study is additionally biased, as, at that age, gain could be a smaller quantity
and folk take life insurance gently.

50
 CHAPTER-4

DATA ANALYSIS

&

INTERPRETATION

51
CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

FEEDBACK FROM RESPONDENTS:”

“Question 1):- Age of Respondent

Table No. 4.1 Table showing Age Group of Policy Holder

Age groups No. of respondent

Below 30 27

31-40 31

41-50 20

51-60 12

60 years and above 09

52
 No. of Respondent
35

30

25
No. of Respondent
20

15

10

0
Below 30 31-40 41-50 51-60 60 & Above

Chart No 4.1 Chart showing Age Group of Policy Holder.

Interpretation: - It can be interpreted thatthere are 32 respondents in the age group of 31-
40years are the major policyholder of IDBI Federal Life Insurance Co. Ltd. Products which
shows that this age group is more concerned about securing their life and future uncertainties.

Question 2):-Total number of policies bought by each respondent.

Table No. 4.2 Table showing total number of policies bought by policyholder.

Total n. of policies bought No. of policies

One 64

Two 22

More than two 14

53
 Total Number of Policies Bought

14%

One
Two
More Than Two
22%

64%

Chart No. 4.2 Chart Showing total number of policies bought by policyholder.”

Interpretation: -It can be interpreted that 64 respondents are those who bought one policy
and 22 respondents are those which bought two policies and 14 respondents are those who
bought more than two policies.”

Question 3):- Mode of Payment

Mode of Payment No. of Respondent

Monthly 12
Quarterly 26
Half-Yearly 25
Yearly 37

Table No.4.3 Table showing mode of payment by policyholder.

54
 Mode of Payment

Yearly 37%

Half- Yearly 25%

Mode of Payment

Quaterly 26%

Monthly 12%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Chart No. 4.3“Chart showing mode of payment by policyholder.”

Interpretation: - It can be interpreted that 37% of respondents are paying premium in yearly
mode whereas 26% & 25% are of the respondents paying premium in quarterly and half-
yearly installments. It shows policyholders are more comfortable to pay yearly installment of
premium charges.

Question 4):- State your expectation on investment alternatives by ticking according to

its importance”

Expectations Highly Important Neutral Least Not

on Investment Important Important Important
Safety 58 14 26 02 00
Capital Growth 75 18 07 00 00
Liquidity 31 27 12 18 12
Return 44 21 18 15 02
Tax Benefit 52 17 19 07 05

55
 Company 47 25 22 02 04
Profile &
Brand Name

Table No. 4.4 Table showing expectation on investment of policyholder.

100%
90%
80%
70%
60%
Not Important
50% Least Important
40% Neutral
Important
30% Highly Important
20%
10%
0%
Safety Capital Liquidity Return Tax Benefit Company
Growth Profile &
Brand
Name

Chart No. 4.4Chart showing expectation on investment of policyholder.”

Interpretation: -It can be interpreted that Safety, Capital Growth, Return and Tax Benefit are
highly important expectation of policyholder while investing in the policy.Whereas other
expectation such as Liquidity and Company Profile and Brand Name impact moderately
while choosing the policy.

Question 5):- What scheme of insurance policy have you taken”

Schemes of Insurance Policy NEEDED

Whole Life 12
Endowment Plan 14
Money Back 40
Pension Fund 23
ULIP 8

56
 Others 3

Table No:-4.5 Table showing scheme of insurance policy.

Schemes of Insurance Policy by Policyholder

8 12
3
14
Whole Life
23 Endowment Plan
Money Back
Pension Fund
ULIP
Others

40

Chart no:-4.5 “Chart showing the schemes of insurance policy by policy holder.”

Interpretation:-It can be interpreted that 40% of the respondents have money back plan,
Pension Fund are the second most sold policy with 23% whereas Whole Life and Endowment
Plan are the moderate choice of the customers of IDBI Federal Life Insurance Co. Ltd.
Sharing 12% and 14% respectively.

Question 6):- Occupation

Occupation No of RESPONDENT

Student 10

Service 33

57
 Self Employed 45

Others 12

TABLE NO:4.6) The Table showing the occupation of the people.

No of Respondent
50
45
45
40
35 33
30
No of Respondent
25
20
15 12
10
10
5
0
Student Service Self Employed Others

Chart No:-4.6 The Chart showing the Occupation of the people.

INTERPRETATION:-It can be interpreted that 33% of respondent belongs to the service

sector whereas 45% of respondents are self employed in various business activities. It shows
person employed. In these two sectors are much aware about securing their future and want a
stable life ahead.

Question 7):- Most likely periodicity of policy

58
 Most likely periodicity of policy No of respondent
5 years 24
5 – 10 years 22

10 – 20 years 42
Above 20 years 12

Table:-4.7Table showing the employee most likely periodicity of policy”

Most Likely periodicity of Policy

42
45
40
35
30
24
22 Most Likely periodicity of Policy
25
20
12
15
10
5
0
5 years or less 5 - 10 years 10 - 20 years Above 20
years

Chart no:- 4.7Chart showing the employee most likely periodicity of policy”

INTERPRETATION:-It can be interpreted that 42% respondents have policy term of 10-
20 years it is due to high return on investment in this bracket whereas 24% of respondents
have policy tern of 5 years or less it is due to short liquidity of funds. 22% of respondents
have policy term of 5-10 years it is due to their middle term future requirements.

59
Question 8):- Place of residence

PLACE OF RESIDENCE NO OF RESPONDENT

Rural 45

Urban 55

Table No:- 4.8 The table showing the place of residence.

No of Respondent

Rural
45% Urban

55%

Chart No:4.8 The Chart showing the place of residence.

INTERPRETATION:-It can be interpreted that45% of respondents belongs to rural area

whereas 55% of respondents belongs to rural area

Question 9):-What is Overall perception about IDBI FEDERAL policy.”

60
 Overall perception NEEDED

Positive 82

Negative 18

Table:- 4.9Table showing Overall Perception.

90 82
Overall Perception
80
70
60
50
40 Overall Perception
30
20 18
10
0

Positive
Negative

“Chart no:4.9:- Chart showing Overall Perception.

INTERPTETATION:-It can be interpreted that 82% of respondents have positive

perception about overall view of company. It shows company are making efforts to satisfy
their customers.

Question 10):- Rate your overall satisfaction with Insurance Policies of IDBI FEDERAL
policy.

Overall Satisfaction No of Respondent

Highly Satisfactory 49

61
Satisfactory

Average 28

Dissatisfactory 18

Highly Dissatisfactory 04

01

Table No:- 4.10Table Showing the Overall Satisfaction.

Overall Satisfaction
50 46
45
40
35
30 28
25
20 18
15 Overall Satisfaction
10
5
0 4
1

Chart no 4.10:- Chart Showing the Overall Satisfaction.

INTERPRETATION:-It can be interpreted that49% of respondents are highly

satisfied,28% are satisfied, 18% are average satisfied,4% are dissatisfied and 1% is highly
dissatisfied with IDBI insurance policy. It shows 77% positive satisfaction level with the
company’s product, services, grievance, etc.

62
Question 11):- How did you come to know about Insurance products?

Table No:- 4.11 Table Showing the Insurance Products

Sources No of Respondent
Friends/family 36
Television 24
Internet 12
Newspapers/magazines 8
Radio 4
Agents/field sales representatives 12

Source
36
40
35
30 24
25
20 12 12
15 8
10 4
5 Source
0

Ch
art no:-4.11Chart Showing the Insurance Products

INTERPRETATION:-It can be interpreted that friends and family of respondents have a

great influence in purchasing the policy of IDBI Federal Life Insurance Co. Ltd. with 36%

63
whereas 24% of respondents are influenced by television commercials. Internet is also
another factor to influence the target audience.

Question 12):-Marital Status

Marital status No of respondent

Married 75

Unmarried 25

TABLE NO:- 4.12 Table showing the marital Status

No of Respondent
75%
80%
70%
60%
50%
40% No of Respondent

30%
25%
20%
10%
0%
Married
Unmarried

Chart no:4.12Chart showing the marital Status

64
INTERPRETATION:-It can be interpreted that75% of respondents are married whereas
25% of respondents are unmarried. It shows married class are more concerned with their
future and stability in life whereas unmarried are less concerned in investing their money.

Question 13):-Educational Qualification

Educational Qualification NEEDED

Postgraduate 40

Graduate 25

Undergraduate 15

Doctorate 20

TABLE NO:-4.13 Table is showing the Educational Qualification for respondents.

NEEDED
20

40

Postgraduate
Graduate
Undergraduate
15 Doctorate

25

65
Chart no 4.13:- Chart showing the Educational Qualification for respondents.

INTERPRETATION:-It can be interpreted that 85% of respondents are graduate and

above whereas 15% of respondents are undergraduate. It shows education qualification has
direct relationship with no. of policyholder in a bracket

Question 14):-What do you feel after investing in Insurance Plans of IDBI FEDERAL?

INSURANCE PLANS NO OF RESPONDENT

GOOD 57

SATISFACTORY 31

BAD 12

TABLE NO:- 4.14 Table showing the insurance plans of IDBI FEDERAL.

NO OF RESPONDENT
57
60

50

40
31 NO OF RESPONDENT
30

20

10 12

0
GOOD
SATISACTORY
BAD

Chart no 4.14:- Chart showing the insurance plans of IDBI FEDERAL.

66
INTERPRETATION:-It can be interpreted that 57% of respondents are feeling good after
purchasing policy which implies company is offering high amount of satisfaction level from
their products whereas 31% of respondents are satisfied with company’s product.

Question 15):-What would you like more in Insurance Policies of IDBI FEDERAL?

INSURANCE POLICIES NO OF RESPONDENT

More Benefits 42

More Security 48

Others, please specify 10

TABLE NO:-4.15 Table showing the insurances policies.

NO OF RESPONDENT
10

More benefits
42 More Security
Others

48

67
Chart no:4.15- Chart showing the insurance policies.

INTERPRETATION:-It can be interpreted that major objective of purchasing policy is to

attain more benefits from the products such as wealth maximization, return, etc. whereas 48%
of respondents have an objective of security towards their funds invested in policy.

Question 16):-Policies/plans of IDBI FEDERAL superior to or more attractive than the

private insurance companies.

PLANS ofIDBI FEDERAL No of respondent

Strongly Agree 45
Agree 15
Neither Agree nor Disagree 12
Disagree Strongly 15
Disagree 13

TABLE NO:-4.16 Table showing the plans of IDBI FEDERAL.

No of respondent
50
45
40
35
30
No of respondent
25
20
15
10
5
0
strongly agree Agree Neither Agree Disagree Disagree
Strongly

68
Chart NO. 4.16:- Chart showing the Plans of IDBI FEDERAL.

INTERPRETATION:- It can be interpreted that 45% of respondents strongly agreewith

the policies/plans of IDBI Federal Life Insurance Co. Ltd. as compared to other private life
insurance whereas 12% of respondents shows neutral response in regards to policies. 28% of
respondents consider private company’s plan better.

Question 17):- Do agents of IDBI FEDERAL provide the correct information.

AGREE OF IDBI FEDERAL INFORMATION NO OF RESPONDENT

Yes 89

No 11

TABLE NO:-4.17 The Table Showing information provides by IDBI FEDERAL is correct or
not.

No of Respondent
11%

Yes
No

89%

Chart No:4.17:- Chart showing the information provides by IDBI FEDERAL is correct or
not.

69
INTERPRETATION:-It can be interpreted that 89% of respondents agrees that agents of
IDBI Federal provides correct information in regards to the insurance policy, risk associated
and other benefit. It can be assumed that IDBI Federal are more reliable.

Question 18):-If you buy a new policy would you like to go for IDBIFEDERAL
POLICY?

BUYING OF IDBI FEDERAL POLICY NO OF RESPONDENT

Yes 73

No 27

TABLE NO:4.18 The Table showing the information of buying IDBI FEDERAL POLICY.

No of Respondent

80
70
60
No of Respondent
50
40
30
20
10
0
Yes No

70
Chart no:4.18:-Chart showing the information of buying IDBI FEDERAL POLICY.

INTERPRETATION:-It can be interpreted that 73% of respondents are in favor of

purchasing IDBI Federal policies if they wish to buy new policy whereas 27% of respondents
still prefer to buy another company policy.

Question 19):- Undue Delay in Claim Settlement Process

DELAY IN CLAIM SETTLEMENT NO OF RESPONDENT

PROCESS
Yes 13

No 87

TABLE NO:-4.19) The Table showing the delay claim settlement process.

No of Respondent

90%
80%
70%
60%
50% No of Respondent
40%
30%
20%
10%
0%
Yes
No

71
Chart No:-4.19:- Chart showing the delay claim settlement.

INTERPRETATION:-It can be interpreted that 87% of respondents agreed that company

is able to settle their claims timely to their policyholders which is the positive sign to create a
good brand image in the market.

Question 20): -Do IDBI FEDERAL have complex Formalities?

IDBI FEDERAL HAVING COMPLEX NO Of compliments

FORMALITIES

Yes 13
No 87

TABLE NO:- 4.20 The Table showing that IDBI FEDERAL Complex Formalities.

No of Respondent

90 87
80
70
60
50 No of Respondent
40
30
20 13
10
0
Yes
No

72
Chart No:-4.20 The Chart showing that IDBI FEDERAL complex Formalities.

INTERPRETATION:-It can be interpreted that major of respondents feels that company

customer policies are more friendly as they don’t feel formalities to be complex whereas 13%
still believe that company have complex formalities to follow up.

Question 21):- Flexible products/ new products that meet customers’ needs

FLEXIBLE PRODUCTS THAT MEET CUSTOMER NO OF

NEEDS RESPONDENT
Strongly Agree 36

Agree 20

Neither Agree nor Disagree 18

Disagree Strongly 16

Disagree 10

73
Table No:-4.21 The table showing the flexible products that meet customer needs.

No of respondent
40 36

35

30

25 20 No of respondent
18
20 16

15 10
10

0
Strongly Agree Neither Agree Disagree Disagree
Agree Nor Disagree Strongly

Chart No:- 4.21 The chart showing the flexible products that meet customer needs.

INTERPRETATION:-It can be interpreted that56% of respondents positively feels that

policies of IDBI Federal are flexible and fulfill the requirements of the consumers whereas
26% of respondents doesn’t agree with the statement that policies of IDBI Federal are
flexible.

Question 22):- Provides information/details about service innovations on a regular basis

through post,telephone, banks etc.

SERVICE INNOVATIONS NEEDED

Strongly Agree 32
Agree 24

74
 Neither Agree nor Disagree 13
Disagree Strongly 8
Disagree 23

TABLE NO:-4.22 The table showing the service innovations through post, telephone,banks
etc.

NEEDED
35 32

30

25 24

20 23
NEEDED
15
13
10
8
5

0
Strongly Agree
Agree
Neither Agree
nor Disagree Disagree
Strongly Disagree

Chart No:4.22 The Chart showing the service innovations through post,telephone,banks etc.

INTERPRETATION:-It can be interpreted that56% of respondent are positively agree that

company provides timely information/reminders about the products and undue payments of
premium whereas 31% of respondents are not satisfied with the company’s services.

Question 23):-Premium paid is too low as compared to the benefits derived

Benefits Derived NEEDED

Strongly Agree 40
Agree 11
Neither Agree nor Disagree 5

75
 Disagree Strongly 23
Disagree 21

TABLE NO:-4.23 The table showing the premium paid is too low as compared to the benefits
derived.

Needed
40%

35%

30%

25%
Needed
40%
20%

15%
23% 21%
10%
11%
5% 5%
0%
Strongly Agree Agree Neither Agree Disagree Disagree
nor Disagree Strongly

Chart No:-4.23 The Chart showing the premium paid is too low as compared to the benefits
derived.

INTERPRETATION:- It can be interpreted that major part of respondents agrees to the

statement that premium charged by the company are of less amount than the benefits
provided by the company against the policy.

Question 24):-High rate of return on insurance products as compared to the other

saving instruments (fixeddeposit in banks, national saving certificates etc.)
HIGH RATE OF INSURANCE PRODUCTS NEEDED

Strongly Agree 40

76
 Agree 21

Neither Agree nor Disagree 23

Disagree Strongly 11

Disagree 5

TABLE NO:-4.24 The table showing the high rate of insurance products

Needed
45
40
35
30
25
Needed
20
15
10
5
0
Strongly Agree Agree Neither Agree nor Disagree Strongly Disagree
Disagree

Chart No:-4.24 The Chart showing the high rate of insurance products.

INTERPRETATION: -It can be interpreted that 61% of respondents agree that policies of
IDBI Federal yield more return than other saving instruments (fixed deposit in banks,
national saving certificates etc.). whereas 16% of respondents disagree with return yield by
the company’s policies.

Question 25):-Reasonable penalty charged for late premium payment

PENALTY CHARGED NO OF RESPONDENT

Strongly Agree 19

77
 Agree 12

Neither Agree nor Disagree 58

Disagree 7

Strongly Disagree 4

TABLE NO:-4.25 The table showing the reasonable penalty charged

No of Respondent
60%

50%

40%

30% No of Respondent

20%

10%

0%
Strongly
Agree Agree
Neither
Agree nor Disagree
Strongly
Disagree Agree
Ch
art No:4.25 The Chart showing the reasonable penalty charged.

INTERPRETATION:-It can be interpreted that 58% of respondents shows a neutral response

on a view that company charged reasonable penalty for late premium payment whereas 31%
of respondents have positive view on company charged reasonable penalty for late premium
payment. It shows company have liberal policy towards their customers.

Question 26):-Providing promised services as per the set schedule?

PROMISED SERVICES NEEDED

Strongly Agree 45

78
 Agree 15

Neither Agree nor Disagree 9

Disagree 10

Strongly Disagree 21

TABLE NO:-4.26 The table showing the providing promised services.

Needed
45
40
35
30
Needed
25
20
15
10
5
0
Strongly Agree Agree Neither Agree Disagree Disagree
nor Disagree Strongly

Chart no:-4.26 The Chart showing providing promised services.

INTERPRETATION:-It can be interpreted that 45 respondents are strongly agree that

company providing promised services to their customers. Whereas around 1/3 of respondents
are not satisfied with the services of company as promised.

Question 27):-Enhancement of technological capability (e.g. computerization,

networking of operation,etc.) to serve customers more effectively

79
 TECHNOLOGICAL CAPABILITY NEEDED

Strongly Agree 52

Agree 22

Neither Agree nor Disagree 12

Disagree 8

Strongly Disagree 6

TABLE NO:-4.27 The table showing the technological capability.

Needed
60

50

40

30 Needed

20

10

0
Strongly Agree
Agree
Neither Agree
nor Disagree Disagree
Strongly Agree

Chart no:4.27 The Chart showing technological capability.

INTERPRETATION:-It can be interpreted that 74 respondentsshows positive response

towards enhancement of technological capability whereas minor of total population of sample
size shows negative response. It results in need and scope of more technology advancement
in business operations of company.

80
CHAPTER – 5

 FINDINGS
81
  CONCLUSION

 SUGGESTIONS

CHAPTER 5

5.1) FINDINGS

 People prefer to buy a policy which has less years of premium payment
term.

82
  Very less people are interested in a pure life insurance policy.
 Tax benefits are also a major factor why people like to buy a policy.”
 Customers are willing to pay through easy payment options such as ECS
and online payment so that their valuable time gets saved.
 They are interested more in monthly premium payment options rather than
annually or half yearly.
 Friends and family are major influencers on customers when it comes to
the decision of buying a life insurance policy.
 LIC is still the market leader in life insurance sector.
 Brand image and past record of performance are major stimuli in buying
decision.”

5.2) CONCLUSION

The Summer Internship project has helped me gain huge practical knowledge which can’t be
gained only through books. This experience gave me an opportunity to learn new things
which provided me a peek into the corporate culture. Being a fresher, I would never be

83
exposed to a corporate environment if it were not for this project. I thank IDBI Federal life
insurance for giving me the chance to work with them as a summer intern and showing me
the path of knowledge and experience, which will help me succeeds in my career and enter
into a bright future

 “While the fresh air of competition in every sector of economy brings in major
changes in consumer expectations, the insurance industry has experienced a
few unique aspects, such as regulation-inspired efforts to educate insurance
buyers and a vast change of skills and capabilities of the intermediaries
involved in the distribution.”
 “With respect to life insurance, potential buyers are drivers of buying a policy
for one or more of these 3 major reasons: security of the money invested,
saving for one or more specific purposes and the availability of tax benefits.”
 The challenge for the insurance companies is to address the motivating factors
of customers and come up with genuine solutions.”
 “The potential buyer primarily expects that the saving should be a painless
process and that the money saved should be absolutely safe. The challenge is
to provide not only convenient payment options, but also mechanisms that
could offer some measure of protection and relief to the customer if he is
forced to disrupt the payment arrangement for unforeseen reasons.”
 “On the issue of customers’ perception of security of the money invested,
there are 2 important aspects. One is, how the features of the insurance
contract are put across the buyer (whether it is unit linked policy or
endowment oriented); and the second is, how to address effectively, the
question about dependability of the new generation companies that potential
new insurance buyers raise during sales calls. Both, the insurance companies
and the regulator need to address this behavioral challenge very actively.”
 Customers in major cities appreciate the need for higher level of insurance
cover with reference to their earning stage in working life.”

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  “Instances of customers requiring agents to arrange for loans against their
policies, or change nominations etc. are rare. Therefore, companies need to
gear themselves to provide high service standards directly.”
 “One aspect of customer service for new age companies that remains to be
tested widely is the claim payment record.”
 “The entry of Pvt. Players into insurance sector has expanded the product
segment to meet different level of requirements of customers. It has brought
greater choice to customers.”
 “IRDA is also playing a very comprehensive role by regulating norms,
mandatory to private players, which increases confidence of customers in the
private companies.”

5.3) SUGGESTIONS

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 “We need to tap the young crowd in the age group 18-30 and convince them
that buying a life insurance policy is necessary because life is very
unpredictable.”
 “More plans should be made that involve less period of premium payment.”
 “As friends and family members are major influencers of customers, our
advertisements and promotions should be family and friend-centered.”
 “Group insurance policies like ‘full family insurance’ schemes should be
made.”
 “Our reach needs to be increased through social media (Face book, Twitter
and YouTube campaigns), television, radio, newspapers etc.”
 “Our insurance policies should have a range of premiums to suit every pocket
size.”
 “In terms of distribution, we should increase the number of marketers- more
channels of distribution and more intermediaries.”
 \“Our advertisements should cover the benefits of our policies and what
differentiates our policies from those of other companies, in brief.”
 “Our company should have more offices at smaller towns and uncovered
segments in the cities.”
 Mobile Commerce is the next big thing! We can have a mobile app where our
customers can get all the information related to our products as well as pay
their premiums.”

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BIBLIOGRAPHY

87
BIBLIOGRAPHY

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behaviour: A review and integrative cognitive appraisal theory, European Journal of
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Lynn Frewer, Joachim Scholderer, Nigel Lambert, (2003) Consumer acceptance of functional
foods: issues for the future, British Food Journal, Vol. 105 Iss: 10, pp.714 – 731

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and evidence on consumers' benefit, Journal of Consumer Marketing, Vol. 22 Iss: 7, pp.397 –
40

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innovations: an integrative approach, Marketing Intelligence & Planning, Vol. 23 Iss: 6,
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Amlan Ghosh, (2013) Does life insurance activity promote economic development in India:
an empirical analysis, Journal of Asia Business Studies, Vol. 7 Iss: 1, pp.31 – 43

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Prevention and Management: An International Journal, Vol. 12 Iss: 4, pp.286 – 304

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Samir K. Srivastava, Avishek Ray, (2013)Bench marking Indian general insurance
firms, Benchmarking: An International Journal, Vol. 20 Iss: 1, pp.4 – 24

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THE FINANCIAL CRISIS, in Mark Hirschey, Kose John, Anil K. Makhija (ed.) Corporate
Governance (Advances in Financial Economics, Volume 11) Emerald Group Publishing
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89
QUESTIONNAIRE

Question:-1 Age Group

a) Below 30

b) 31 – 40 years

c) 41 – 50 years

d) 51 – 60 years

e) 60 years and above

Question:-2 Total number of policies bought

a) One

b) Two

c) More than two

Question:-3 Mode of Payment

a) Monthly

b) Quarterly

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c) Half-Yearly

d) Yearly

Question:-4 State your expectation on investment alternatives by ticking according to its

importance

a) Expectations on Investment Highly

b) Important
c) Important Neutral Least
d) Not Important
e) Capital Growth
f) Liquidity
g) Return
h) Tax Benefit
i) Company Profile & Brand Name

Question:-5 What scheme of insurance policy have you taken

a) Whole Life

b) Endowment Plus

c) Money Back

d) Pension Fund

e) ULIP

f) Others

Question: 6 Occupation

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a) Student

b) Service

c) Self Employed

d) Others

Question:-7 Most Likely Periodicity of Policy

a) 5 years

b) 5 – 15 Years

c) 15 – 25 Years

d) Above 25 Years

Question:-8 Place of residence

a) Rural

b) Urban

Question:-9 What is Overall perception about IDBI FEDERAL policy?

a) Positive

b) Negative

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Question:-10 Rate your overall satisfaction with Insurance Policies of IDBI FEDERAL
policy?

a) Highly Satisfactory

b) Satisfactory

c) Average

d) Dissatisfactory

e) Highly Dissatisfactory

Question:-11 How did you come to know about Insurance products?

a) Friends/family

b) Television

c)Internet

d) Newspaper/magazines

e) Radio

f) Agents/field sales representative

Question:-12 Marital Status

a) Married
b) Unmarried

Question:-13 Educational Qualification

93
 a) Undergraduate
b) Graduate
c) Post Graduate
d) Doctorate

Question:-14 What do you feel after investing in Insurance Plans of LIC of India?

a) Good

b) Averagely satisfied with the investment decision

c) Cheated

Question:-15What would you like more in Insurance Policies of IDBI FEDERAL LTD?

a) More benefits

b) More security

c) Others, please specify

Question:-16 Policies/plans of LIC superior to or more attractive than the private insurance
companies

a) Strongly Agree

b) Agree

c) Neither Agree nor Disagree

d) Disagree Strongly

e) Disagree

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Question:-17Do agents of IDBI FEDERAL provides the correct information

a) Yes

b) No

Question:-18 If you buy a new policy would you like to go for IDBI FEDERAL LTD?

a) Yes

b) No

Question:-19 Undue Delay in Claim Settlement Process

a) Yes

b) No

Question:-20 Do IDBI FEDERAL have complex Formalities?

a) Yes

b) No

Question:-21 Flexible products/ new products that meet customers’ needs

a)Strongly Agree

b) Agree

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c) Neither Agree nor Disagree

d) Disagree Strongly

e) Disagree

Question:-22 Provides information/details about service innovations on a regular basis

through post, telephone, banks etc.

a) Strongly Agree

b) Agree

c) Neither Agree nor Disagree

d) Disagree Strongly

e) Disagree

Question:-23 Premium paid is too low as compared to the benefits derived?

a) Strongly Agree

b) Agree

c) Neither Agree

d) Disagree Strongly

Question:-24 High rate of return on insurance products as compared to the other saving
instruments (fixed deposit in banks, national saving certificates etc.)

a) Strongly Agree
b) Agree

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 c) Neither Agree nor Disagree
d) Disagree Strongly
e) Disagree

Question:-25 Reasonable penalty charged for late premium payment

a) Strongly Agree
b) Agree
c) Neither Agree nor Disagree
d) Disagree Strongly
e) Disagree

Question:-26 providing promised services as per the set schedule

a) Strongly Agree
b) Agree
c) Neither Agree nor Disagree
d) Disagree Strongly
e) Disagree

Question: 27 Enhancement of technological capability (e.g. computerization, networking of

operation, etc.) to serve customers more effectively?

a) Strongly Agree

b) Agree

c) Neither Agree nor Disagree

d) Disagree Strongly

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e) Disagree

98