Preface

The first real insight of an organization for management student comes only during his

preparation of project work because student first interacts with real practical work. This is

first introduction to industry and its working. This project work synthesize the theoretical

concept learn in the class room and its practical orientation in organization.

In my project I have studied the “A Comparative Study of Customer Satisfaction with

Life insurance Services in Ghazipur City”.

My survey project report is divided into five chapters.

In first chapter I have mentioned the introduction insurance company and objective, scope

and importance.

The Second chapter deals with research methodology. The process of carrying out the whole

research problem is defined in it. It contains information about the research, methods of data

collection, sampling and sample design.

Third chapter is data analysis and interpretation. This is the most important section of the

project work. This section contains the analysis of all the data collected so far and they are

interpreted to produce the final conclusion. It contains all the tables and charts which depicts

the result.

Chapter four contains the finding and recommendation of the research. This sis based on the

data analyzed and interpreted in the previous chapter. This is the most important section of

the research report for a report is evaluated on the validity ad correctness of findings.

Chapter five depicted conclusion which concludes the whole report, that is, gives a brief

description of the process employed so far. And later chapters contain bibliography. Which

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describes the list of sources from where the matter and information is collected? It contains

the list of books, authors, web sites use etc.

Priyanka Gupta

B.B.A. IV Sem.

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 ACKNOWLEDGEMENT
I sincerely express my deep sense of gratitude to Mr. Anad Kumar Sinha, Assistant

professor, Department of Business Administration, TERI, Ghazipur, for his extraordinary

cooperation, invaluable guidance and supervision. This thesis is the result of his painstaking

and generous attitude.

I would like to thank the head of department Mr. Rahul Anand Singh, Associate Professor

& Head, Dept. of Business Administration, TERI, Ghazipur who gives me chance to work on

this topic and valuable suggestion and useful comment throughout this survey project work. I

owe and respectfully offer my thanks to noble parents for their constant moral support and

mellifluous affection which helped me to achieve success in every sphere of life and without

their kind devotion this survey project would have been a sheer dream.

I am also thankful to Mr. Arif Sultan Assistant professor, Department of Business

Administration, TERI, Ghazipur for their constructive discussion, perseverance and

encouragement during this project work.

I sincerely acknowledge the effort of all those who have directly or indirectly helped me in

completing my survey project successfully.

It is the kindness of this acknowledged person that this survey project sees the light of the

day.

I submit this survey project of mine with great humility and most regard.

Priyanka Gupta
BBA 4th Semester
Department of Business Administration
Technical Education & Research Institute
P.G. College, Ghazipur

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 INTRODUCTION
Insurance is a mechanism of collecting money from a larger group in small amounts called

premium and compensating few people who are victims of losses and damages. The concept

of insurance involves paying a premium to the insurance company to provide cover on a

certain risk.

An individual Individual pays a The insurer agrees to

buys an insurance premium to the pay a specified amount
policy insurance company of money in case of
loss

Insurance  refers to the market for insurance in India which covers both the public and

private sector organisations. It is listed in the Constitution of India on the in the Seventh

Schedule meaning it can only be legislated by the central government.

Insurance is the equitable transfer of the risk of a loss, from one entity to another in

exchange for payment. It is a form of risk management primarily used to hedge against the

risk of a contingent, uncertain loss.

An insurer, or insurance carrier, is a company selling the insurance; the insured, or

policyholder, is the person or entity buying the insurance policy. The amount of money to be

charged for a certain amount of insurance coverage is called the premium. Risk management,

the practice of appraising and controlling risk, has evolved as a discrete field of study and

practice.

The transaction involves the insured assuming a guaranteed and known relatively small loss

in the form of payment to the insurer in exchange for the insurer's promise to compensate

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(indemnify) the insured in the case of a financial (personal) loss. The insured receives

a contract, called the insurance policy, which details the conditions and circumstances under

which the insured will be financially compensated.

The insurance sector has gone through a number of phases by allowing private companies to

solicit insurance and also allowing foreign direct investment. India allowed private

companies in insurance sector in 2000, setting a limit on FDI to 26%, which was increased to

49% in 2014. However, the largest life-insurance company in India, Life Insurance

Corporation of India is still owned by the government and carries a sovereign guarantee for

all insurance policies issued by it.

Definition

In financial sense:

According to Reegel and Miller, “Insurance is a social device whereby the uncertain risks of

individuals may be combined in a group and thus made more certain, small periodical

contributions by the individuals providing a fund, out of which, those who suffer losses may

be reimbursed.”

In legal sense

“Insurance is a contracted agreement whereby one party agrees in consideration of the price

paid to him (premium) to compensate another party for losses.”

A contract (policy) in which an individual or entity receives financial protection or

reimbursement against losses from an insurance company. The company pools clients' risks

to make payments more affordable for the insured

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 PRINCIPLES OF INSURANCE

A contract of insurance may be defined as a contract between two parties whereby a

person undertakes in consideration of a fixed sum of money to pay to the other a fixed

amount of money on the happening of a certain event ( death or maturity of policy) or to pay

the amount of actual loss when it takes place through a risk insured ( in case of property).

Following are the important principles of insurance contract:

1. Principle of utmost good faith.

2. Principle of insurable interest.

3. Principle of indemnity.

4. Principle of subrogation.

5. Principle of contribution.

6. Principle of proximate cause.

Principle of utmost good faith.

The principle of utmost good faith also known as “UberrimaeFedei”. The contract of

insurance is a contract based on utmost good faith. It is duty bound on the parties to disclose

all material facts and figures relating to the subject matter of the insurance contract. A

material fact is one which affects the judgement or decision of both the parties in entering

into the contract. If this principle is not observed by either party, the contract may be

avoided by the other. The duty of disclosure is absolute and positive.

Most of the coomercial contracts are subject to the doctrine of ‘Caveat empter’ ( let

the buyer beware ) which does not prevail in the insurance contract. In the above doctrine it

is the duty of the buyer to satisfy himself, the genuineness of the subject matter and the seller

is under no obligations to supply information about it.

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 But in the insurance contract both the parties should disclose in the form in which it

really exist and there should be no concealment, misrepresentation, mistake, or fraud about

the material facts. Even though, the principle is equally applicable to both the parties, the

onus of making a full disclosure of al material facts rests primarily on the insured. Examples

of material facts are:

a) In life insurance: Information relating to age, income, health, diseases, family history,

nature of business or profession.

b) In fire insurance, it is relating to activities of firm, condition of godown, the details of

the goods stored, whether such goods are of hazardous nature. In motor insurance,

details of the drivers, condition of vehicle etc.

The whole truth must be disclosed about the subject matter of insurance, so that the

underwriter may know the extent of his risk and the amount he must charge for the insurance

policy as a premium. It is the duty of the insurer to disclose all the relevant facts about the

policy conditions and benefits. The facts should be disclosed at the time of entering into the

contract and if there are some changes subsequently, then the same should be intimated to

the insurer by the insured.

Principle of insurable interest:

The contract is valid only when the insured possess an insurable interest in the subject matter

to be insured. The insurable interest is the pecuniary interest in the property to be insured

whereby the insured is benefited by the existence of the subject matter and will suffer

financial loss on the death or damage of the subject matter.

In the words of Reegel and Miller, “An insurable interest is an interest of such a nature that

the possessor would be financially injured by the occurrence of the event insured against.

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The essentials of a valid insurable interest are the following:

a) There should be subject matter to be insured.

b) The relationship between the subject matter and the policy holder must be recognised

by law.

c) The policy holder should have monetary relationship with the subject matter and the

insured risk must be capable of financial evaluations.

d) The relationship between the policy holder and the subject matter should be such that

the insured is economically benefited by the survival existence of the subject matter

or will suffer economic loss by the death or non- existence of the subject matter.

e) The insurable interest must exist both at the time of the proposal and at the time of

claims in the fire insurance but in the case of life insurance it may not be present at

the time of claim, if the policy is assigned. In case of marine insurance it must exist

at the time of claim.

Insurable interest is the basis of legality of insurance contracts. In the absence of the

insurable interest, the insurance contract becomes void and such void contracts are contracts

against public interests.

Principle of indemnity:

The very foundation of every rule which has been applied to insurance law is that the

contract of insurance contained in a marine or fire policy is a contract of indemnity only. If

ever a preposition is brought forward which is in variance with it, that is to say, which either

will prevent the assured from obtaining a full indemnity or which gives the assured more

than a full indemnity, that proposition must certainly be wrong.

The principle of indemnity implies that on the happening of an event insured against,

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the insurer undertakes to place the insured, in the same pecuniary (monetary) position that he

occupied immediately before the event. Indemnity means the exact financial compensation,

which is paid to the insured. According to this contract, the insured should be neither better

off nor worse off after receiving the insured amount in case of loss due to eventualities.

The main object of this principle is to ensure that the insured is not able to use this

contract for speculation or gambling. The indemnity prevents the insured from benefiting

under the contract and to reduce the impact of moral hazards. The principle is applicable to

all types of contract except life insurances, personal accident and sickness insurance. Under

the contract of insurance, the sum assured will be paid by the insurer when the person dies,

due to the fact that life cannot be indemnified. The principle of indemnity does not apply to

personal insurance because the amount of loss is not easily calculable there.

The measure of indemnity is decided, at the time of entering into the contract itself. In

the event of claim the insured must:

a) Prove that he / she has sustained a monetary loss.

b) Prove the extent and value of his / her loss.

c) Transfer any rights which he / she may have for recovery from another source to

the insurer, if he / she has been fully indemnified.

Principle of subrogation:

This principle is also a corollary to the principle of indemnity. Subrogation may be

defined as the transfer of rights and remedies of the insured to the insurer who has

compensated the insured in respect of the loss.

a) It literally means, “to stand in place of”. It is the right of one person to stand at law in

the place of another and to avail all rights and remedies of that other person.

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 b) Often when a claim occurs there may be two avenues of recovery. Suppose “A”

drives negligently and causes an accident damaging B’s car. If B’s car is insured then

two options are open to “B” to recover his loss. “B” can sue “A” for damages or he

can claim from his insurer. If B pursues both avenues he will receive double

compensation. To prevent B from profiting from his loss subrogation is used in terms

of which once the insurer has paid B the insurer assumes all B’s rights to sue A. this

ensure that principle of indemnity is preserved.

Subrogation has a number of sub-principles namely:

a) The insurer cannot be subrogated to the insured’s right of action until it has paid the

insured and made good the loss.

b) The insurer can be subrogated only to actions, which the insured would have brought

him.

c) The insurer must not prejudice the insurer’s right of subrogation. Thus the insured

may not compromise or renounce any right of action he has against the 3 rd party, if by

doing so he could diminish his loss.

d) Subrogation against the insurer. Just as insured cannot profit from his loss the insurer

may not make a profit from the subrogation rights. The insurer is only entitled to

recover the exact amount they paid as indemnity nothing more. If they recover more

the balance should be given to the insured.

e) Subrogation gives the insurer the right of salvage.

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Principle of Contribution:

The principle is applicable to all types of insurance contracts, except life insurance.

Where an insurer gets the subject matter insured with more than one insurer, in case of loss

or damage to the insured property, the insurers shall contribute towards the claim in

proportion to the sum assured with each.

Contribution condition is a corollary to the principle of indemnity. If an insured

obtains more than one policy covering the same risk, he cannot recover in total more

than a full indemnity. The essentials of this principle are:

a) The policies covers the same perils.

b) The policies cover the same subject matter.

c) The policies should be in force when loss occurs.

d) The policies cover a common interest

Principle of proximate cause:

Proximate cause can be defined as “ The active efficient cause that sets in motion a

chain of events which brings about a result, without the intervention of any new force started

and working actively from a new independent source.”

a) In Insurance the rule is that for a loss to be paid or compensated under a policy of

insurance, it must have been caused by an insured peril. Unless the loss is proximately

caused by an insured peril the policy does not pay or respond.

b) The onus of proving that the loss was proximately caused by an insured peril rests with

the insured.

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c) If the insured makes a prima-facie case that the loss was proximately caused by an

insured peril the insurer is obliged to indemnify unless they can prove that an exception

applies.

This principle keeps the scope of the insurance within the limits intended by the

insured and the insurer when the contract was made. It also helps in giving effect to the real

meaning and intention of insurance contract. In the absence of this rule, every loss could be

claimed by the insured and the insurer could reject every loss. Thus, the principle serves not

only to define the scope of coverage under the insurance contract but also to protect the

rightsof the parties to the contract. A proximate cause is the first event in a chain of events

that gives rise to a claim of the insurance.

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FUNCTIONS OF INSURANCE
The functions of Insurance can be bifurcated into three parts:

(a) Primary Functions

(b) Secondary Functions

(a) Primary Functions

The primary functions of insurance include the following:

 Provide Protection

The primary function of insurance is to provide protection against future risk, accidents and

uncertainty. Insurance cannot check the happening of the risk, but can certainly provide for

losses of risk. Insurance is actually a protection against economic loss, by sharing the risk

with others.

 Assessment of risk

Insurance determines the probable volume of risk by evaluating various factors that give rise

to risk. Risk is the basis for determining the premium rate also.

 Collective bearing of risk

Insurance is a device to share the financial loss of few among many others. Insurance is a

mean by which few losses are shared among larger number of people. All the insured

contribute premiums towards a fund, out of which the persons exposed to a particular risk are

paid.

 Savings and investment

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Insurance serves as a tool for savings and investment, insurance is a compulsory way of

savings and it restricts the unnecessary expenses by the insured. For the purpose of availing

income-tax exemptions, people invest in insurance also.

(b) Secondary Functions

The secondary functions of insurance include the following:

 Prevention of Losses

Insurance cautions individuals and businessmen to adopt suitable device to prevent

unfortunate consequences of risk by observing safety instructions; installation of automatic

sparkler or alarm systems, etc. Reduced rate of premiums stimulate more business and better

protection to the insured.

 Small capital to cover large risks

Insurance relieves the businessmen from security investments, by paying small amount of

premium against larger risks and uncertainty.

 Contributes towards the development of large industries

Insurance provides development opportunity to large industries having more risks. Even the

financial institutions may be prepared to give credit to sick industrial units which have

insured their assets including plant and machinery.

 Source of Earning Foreign Exchange

Insurance is an international business. The country can earn foreign exchange by way of issue

of insurance policies.

 Risk Free Trade

Insurance promotes exports insurance, which makes the foreign trade risk free with the help

of different types of policies under marine insurance cover.

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MALHOTRA COMMITTEE

In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor R.N.

Malhotra- was formed to evaluate the Indian insurance industry and recommend its future

direction. The Malhotra committee was set up with the objective of complementing the

reforms initiated in the financial sector. The reforms were aimed at creating a more efficient

and competitive financial system suitable for the requirements of the economy keeping in

mind the structural changes currently underway and recognising that insurance is an

important part of the overall financial system where it was necessary to address the need for

similar reforms. In 1994, the committee submitted the report and some of the key

recommendations included:

(i) Structure

Government stake in the insurance Companies to be brought down to 50%. Government

should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as

independent corporations. All the insurance companies should be given greater freedom to

operate.

(ii) Competition

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the

sector. No Company should deal in both Life and General Insurance through a single entity.

Foreign companies may be allowed to enter the industry in collaboration with the domestic

companies. Postal Life Insurance should be allowed to operate in the rural market. Only one

State Level Life Insurance Company should be allowed to operate in each state.

(iii) Regulatory Body

The Insurance Act should be changed. An Insurance Regulatory body should be set up.

Controller of Insurance- a part of the Finance Ministry- should be made independent.

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(iv) Investment

Mandatory Investments of LIC Life Fund in government securities to be reduced from 75%

to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (their current

holdings to be brought down to this level over a period of time)

(v) Customer service

LIC of India should pay interest on delays in payments beyond 30 days. Insurance companies

must be encouraged to set up unit linked pension plans. Computerisation of operations and

updating of technology to be carried out in the insurance industry. The committee emphasised

that in order to improve the customer services and increase the coverage of insurance

policies, industry should be opened up to competition. But at the same time, the committee

felt the need to exercise caution as any failure on the part of new players could ruin the public

confidence in the industry. Hence, it was decided to allow competition in a limited way by

stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to

provide greater autonomy to insurance companies in order to improve their performance and

enable them to act as independent companies with economic motives. For this purpose, it had

proposed setting up an independent regulatory body- The Insurance Regulatory and

Development Authority.

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INSURANCE ACT,1938

The Insurance Act,1938 and its subsequent amendments in 1950 and 1999 are

serious attempts to address various issues relating to the business. Some of them are:

 Protection of policy holder interest.

 Limiting the expenses of insurance organizations.

 Establishment of tariff advisory committee.

 Solvency levels to be maintained

 Creation of insurance organization.

 Defining the roles and responsibilities of various functionaries associated with the

business.

Features of Insurance Act 1938:

1. The Act applies to all types of insurance business- life,marineetc done by companies

incorporated in India.

2. The insurer carrying on the business of life insurance,general insurance or re-insurance

shall be registered only if:

a) A paid up capital or rupees one hundred crores,in case of a person

carrying on the business of life insurance or general insurance;or

b) A paid up capital of rupees two hundred crores,in case of a person

carrying on exclusively the business as a reinsurer.

3. Regarding deposits,to prevent the growth of insurers of small financial resources or

speculative concerns,the Act provided for registration of all insurers and a substantial

deposit with the Reserve Bank.

4. No company can carry on the insurance business unless he has obtained from the

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 Authority a certificate of registration for the particular class of business

5. The audited accounts and balance sheet and actuarial report and abstract and four copies

thereof shall be furnished as returns to the Authority.

The Insurance Regulatory and Development Authority (IRDA)

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in

Parliament in December 1999. The IRDA since its incorporation as a statutory body in April

2000 has fastidiously stuck to its schedule of framing regulations and registering the private

sector insurance companies. Since being set up as an independent statutory body the IRDA

has put in a framework ofglobally compatible regulations. The other decision taken

simultaneously to provide the supporting systems to the insurance sector and in particular the

life insurance companies was the launch of the IRDA online service for issue and renewal of

licenses to agents. The approval of institutions for imparting training to agents has also

ensured that the insurance companies would have a trained workforce of insurance agents in

place to sell their products.

The regulatory body for insurance IRDA has been established with the following mission:

To protect the interests of the policy holders, to regulate, promote and ensure orderly growth

of the insurance industry and for matters connected therewith or incidental thereto.‟

Duties, Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA:

(1) Subject to the provisions of this Act and any other law for the time being in force, the

Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance

business and re-insurance business.

(2) Without prejudice to the generality of the provisions contained in sub-section (1), the

powers and functions of the Authority shall include:

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(a) Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend

or cancel such registration;

(b) Protection of the interests of the policy holders in matters concerning assigning of

policy, nomination by policy holders, insurable interest, settlement of insurance claim,

surrender value of policy and other terms and conditions of contracts of insurance;

(c) Specifying requisite qualifications, code of conduct and practicaltraining for

intermediary or insurance intermediaries and agents;

(d) Specifying the code of conduct for surveyors and loss assessors;

(e) Promoting efficiency in the conduct of insurance business;

(f) Promoting and regulating professional organizations connected with the insurance and

re-insurance business;

(g) Levying fees and other charges for carrying out the purposes of this Act;

(h) Calling for information from, undertaking inspection of, conducting enquiries and

investigations including audit of the insurers, intermediaries, insurance intermediaries and

other organizations connected with the insurance business;

(i) Control and regulation of the rates, advantages, terms and conditions that may be

offered by insurers in respect of general insurance business not so controlled and

regulated by the Tariff Advisory Committee under section 64U of the Insurance Act,

1938 (4 of 1938);

(j) Specifying the form and manner in which books of account shall be maintained and

statement of accounts shall be rendered by insurers and other insurance intermediaries;

(k) Regulating investment of funds by insurance companies;

(l) Regulating maintenance of margin of solvency;

(m)Adjudication of disputes between insurers and intermediaries or insurance

intermediaries;

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(n) Supervising the functioning of the Tariff Advisory Committee;

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professionalorganizations referred to in clause (f);

(p) Specifying the percentage of life insurance business and general insurance business to

be undertaken by the insurer in the rural or social sector; and

(q) Exercising such other powers as may be prescribed.

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Life Insurance in India

Life insurance in the modern form was first set up in India through a British company called

the Oriental Life Insurance Company in 1818 followed by the Bombay Assurance Company

in 1823 and the Madras Equitable Life Insurance Society in 1829. All these companies

operated in India but did not insure the lives of Indians. They insured the lives of Europeans

living in India. Some of the companies that started later did provide insurance for Indians, as

they were treated as “substandard”. Substandard in insurance parlance refers to lives with

physical disability. Pioneering efforts of reformers and social workers like Raja Rammohan

Ray, Dwarakanath Tagore, RamatamLahiri, RustomjiCowasji and others led to entry of

Indians in insurance business. The first Indian insurance company under the name „Bombay

Life Insurance Society‟ started its operation in 1870, and started covering Indian lives at

standard rates. Later „Oriental Government Security Life Insurance Company‟, was

established in 1874, with Sir Phirozshah Mehta as one of its founder directors. Insurance in

India can be traced back to the Vedas. For instance, yogakshema, the name of Life Insurance

Corporation of India's corporate headquarters, is derived from the Rig Veda. The term

suggests that a form of „community insurance‟ was prevalent around 1000 BC and practiced

by the Aryans.

Insurance business was conducted in India without any specific regulation for the insurance

business. They were subject to Indian Companies Act 1866. After the start of the „Be Indian

Buy Indian Movement‟ (called Swadeshi Movement) in 1905, indigenous enterprises sprang

up in many industries. It was during the swadeshi movement in the early 20th century that

insurance witnessed a bigboom in India with several more companies being set up. Not

surprisingly, the Movement also touched the insurance industry leading to the formation of

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dozens of life insurance companies along with provident fund companies (provident fund

companies are pension funds). In 1912, two sets of legislation were passed: the Indian Life

Assurance Companies Act and the Provident Insurance Societies Act. There are several

striking features of these legislations. They were the first legislations in India that particularly

targeted the insurance sector. They did not include general insurance business. The

government did not feel the necessity to regulate general insurance. They restricted activities

of the Indian insurers. As these companies grew, the government began to exercise control on

them. The Insurance Act was passed in 1912, followed by a detailed and amended Insurance

Act of 1938 that looked into investments, expenditure and management of these companies'

funds.

In 1914 there were only 44 companies; by 1940 this number grew to 195. Business in force

during this period grew from Rs.22.44 crores to Rs.304.03 crores (1628381 polices). Life

fund steadily grew from Rs.6.36 crores to Rs.62.41 crores. In 1938, the insurance business

was heavily regulated by enactment of insurance Act 1938 (based on draft bill presented by

Sir N.N.Sarcar in Legislative Assembly in January 1937). From here onwards the growth of

life insurance was quite steady except for a setback in 1947-48 due to aftermath of partition

of India. In 1948, there were 209 insurances, with 712.76 crores business in force under

3,016, 000 policies. The life fund by then grew to 150.39 crores.

By the mid-1950s, there were around 170 insurance companies and 80 provident fund

societies in the country's life insurance scene. However, in the absence of regulatory systems,

scams and irregularities were almost a way of life in most of these companies. Despite the

mushroom growth of many insurance companies, the per capita insurance in Indian was

merely Rs.8.00 in 1944 (against Rs.2,000 in US and Rs.600 in UK), besides some companies

were indulging in malpractices, and a number of companies went intoliquidation. Big

industry houses were controlling the insurance and banking business resulting in interlocking

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of funds between banks and insurance companies. This shook the faith of the insuring public

in insurance companies who were seen as custodians of their savings and security. The nation

under the leadership of Pandit Jawaharlal Nehru was moving towards socialistic pattern of

society with the main aim of spreading life insurance to rural areas and to channelize huge

funds accumulated by life insurance companies to nation building activities. The Government

of India nationalized the life insurance industry in January 1956 by merging about 245 life

insurance companies and forming Life Insurance Corporation of India (LIC), which started

functioning from 01.09.1956. After completing the arduous task of integration of about 245

life insurance companies, LIC of India gave an exemplary performance in achieving various

objectives of nationalization. The non-life insurance business continued to thrive with the

private sector till 1972. Their operations were restricted to organized trade and industry in

large cities. The general insurance industry was nationalized in 1972. With this, nearly 107

insurers were amalgamated and grouped into four companies- National Insurance Company,

New India Assurance Company, Oriental Insurance Company and United India Insurance

Company. These were subsidiaries of the General Insurance Company (GIC). For years

thereafter, insurance remained a monopoly of the public sector. It was only after seven years

of deliberation and debate that R. N. Malhotra Committee report of 1994 became the first

serious document calling for the re-opening up of the insurance sector to private players. The

sector was finally opened up to private players in 2001.The Insurance Regulatory and

Development Authority, an autonomous insurance regulator set up in 2000, has extensive

powers to oversee the insurance business and regulate in a manner that will safeguard the

interests of the insured. Insurance is a federal subject in India. There are two legislations that

govern the sector- The Insurance Act- 1938 and the IRDA Act- 1999. The insurance sector in

India has come a full circle from being an open competitive market to nationalization and

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back to a liberalized market again. Tracing the developments in the Indian insurancesector

reveals the 360 degree turn witnessed over a period of almost two centuries.

Life Insurance Contract

1. Elements of valid contract: Since the life insurance contract is a contract between

the insured and the insurer, it is governed by the Indian Contract Act. The contract of

insurance must contain the essential elements of a valid contract ( offer and

acceptance, legal consideration, competency of the parties, free consent and legal

object).

2. Insurable interest: The insured must have an insurable interest in the life to be

insured. The insurable interest must exist at the time of the contract of insurance. The

risk against this policy is the death of the insured.

I. Insurable interest in own’s life

II. Insurable interest in other’s life

3. Utmost good faith: The principle of utmost good faith should be observed by both

the parties in life insurance. At the time of taking a policy, the policy holder should

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 disclose all the material facts. Similarly the insurer is bound to exercise same good

faith in disclosing facts.

4. Warranties: Warranties are an important feature of life insurance contract.

Warranties are integral part of contract i.e. they form the basis of the contract between

proposer and insurer. The contract shall become null and void if any statement

whether material or non material facts are untrue. The policy insured will contain that

the proposal and the personal statement will form part of the policy and be the basis of

the contract.

5. Assignment and nomination: Assignment and nomination are essential features of

life insurance policy. In the case of nomination, a person or persons to whom the

money secured by the policy shall be paid on the death of insured against but the

rights of insured are not transferred. In the case of assignment, the rights are

transferred to the assignee for some legal cconsideration or love and affection.

6. Premium: Premium is the price paid by the insured for the risk or loss undertaken by

the insurer. The premium is paid monthly, quarterly, half yearly or in annual

instalment for a certain period.

7. Certainty of event: In life insurance policy the insurer has to pay the insured amount

at the time of death of the insured or at maturity which is certain.

25
Types of Life Insurance Policies
A life insurance policy could offer pure protection (insurance), another variant could

offer protection as well as investment while some others could offer only investment. In

India, life insurance has been used more for investment purposes than for protection in

one‟s overall financial planning. Followings are the types of life insurance policy:

Term Life Insurance Policy

As its name implies, term life insurance policy is for a specified period. It depends on the

length of time. It has one of the lowest premiums among insurance plans and also carries

an added advantage of fixed payments that do not increase during the term of the policy.

In case of the policy holder's untimely demise, the benefit amount specified in the

insurance agreement goes to the nominees.

Whole Life Insurance Policy

Whole life insurance policies do not have any fixed term or end date and is only payable

to the designated beneficiary after the death of the policy holder. The policy owner does

not get any monetary benefits out of this policy. Because this type of insurance involves

fixed known annual premiums, it's a good option to ensure guaranteed financial benefits

for surviving family members.

Money Back Plan

With a money back plan, policyholder receives periodic payments, which are a

percentage of the entire amount insured, during the lifetime of policy. It's aplan that offers

insurance coverage along with savings. These policies provide for periodic payments of

partial survival benefits during the term of the policy itself. A unique feature associated

with this type of policies is that in the event of death of the insured during the policy

term, the designated beneficiary will get the full sum assured without deducting any of

26
 the survival benefit amounts, which have already been paid as money-back components.

Moreover, the bonus on such policies is also calculated on the full sum assured.

Pension Plan

Pension plans are different from other types of life insurance because they do not provide

any life insurance cover, but ensure a guaranteed income, either for life or for a certain

period. The Policyholder makes the investment for a pension plan either with a single

lump sum payment or through installments paid over a certain number of years. In return,

he gets a specific sum every year, every half-year or every month, either for life or for a

fixed number of years. In case of the death of the insured, or after the fixed annuity period

expires for annuity payments, the invested annuity fund is refunded, usually with some

additional amounts as per the terms of the policy.

Endowment Policy

It is the most popular life insurance plan. This policy combines risk cover with objective

of savings and investment. If the policy holder dies during the policy period, he will get

the assured amount. Even if he survives he will receive the assured amount. The

advantage of this policy is if the policy holder survives after the completion of policy

tenure, he receives assured amount plus additional benefits like bonus from the insurance

company. Designed primarily to provide a living benefit, along with life insurance

protection, the endowment policy makes a good investment if policyholder wants

coverage, as well as some extra money.

There are two types of Endowment policy:

(a) Without-profit endowment plan

(b) With- profit endowment plan

27
(a) Without profit endowment plan These plans do not participate in the profits the

insurance company makes each year. Apart from the sum assured, the policyholder could

possibly get a loyalty bonus, which is a one timepayout.

(b) With-profit endowment plan These plans share the profits the insurance company

makes each year with the policyholder. So they offer more returns than without-profit

endowment plans and are more expensive i.e. the premiums will be higher than without-profit

endowment plans.

Unit-linked insurance plan (ULIP) Unit-linked insurance plans gives a policyholder greater

control on where premium can be invested. The annual premium is invested in various types

of funds that invest in debt and equity in a proportion that suits all types of investors. A

policyholder can switch from one fund plan to another freely and can also monitor the

performance of his plan easily. ULIP is suitable for those who understand the stock market

well.

28
Profile of Life Insurance Companies in India

All private life insurance companies and public sector Company operating in India during

2000-01 to 2009-10 were taken for the study. Life Insurance Corporation which is the only

public sector life insurer and twenty two private sector life insurers, most of them joint

ventures between Indian groups and global insurance giants, were taken for the study.

Public Sector

Life Insurance Corporation of India

Life Insurance Corporation of India (LIC) is an autonomous body authorized to run the life

insurance business in India with its Head Office at Mumbai. About 154 Indian insurance

companies, 16 non-Indian companies and 75 provident fund societies were operating in India

at the time of nationalization. Nationalization was accomplished in two stages; initially the

management of the companies was taken over by means of an Ordinance, and later, the

ownership by means of a comprehensive bill. The Parliament of India passed the Life

Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of

India was created on 1st September, 1956, with the objective of spreading life insurance

much more widely and in particular to the rural areas with a view to reach all insurable

persons in the country, providing them adequate financial cover at a reasonable cost.

Private Sector

The Government having tried various models for the insurance industry such as privatization

with negligible regulation (pre 1956) and nationalization (1956-2000) and having observed

sub optimal performance of the sector, resorted to adopting a hybrid model of both these,

resulting in privatization of the sector with an efficient regulatory mechanism (post 2000).

This was initiated with the aim of making the industry competitive so that there are more

29
players offering a greater variety of products over a large section of the population. The

following companies are entitled to do insurance business in India.

30
Life Insurance Corporation of India (LIC) is an Indian state-owned insurance

group andinvestment company headquartered in Mumbai. It is the largest insurance company

in India with an estimated asset value of  1560482 crore (US$240 billion).[2] As of 2013 it

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

year.

The company was founded in 1956 when the Parliament of India passed the Life Insurance of

India Act that nationalised the private insurance industry in India. Over 245 insurance

companies and provident societies were merged to create the state owned Life Insurance

Corporation.

History

The Oriental Life Insurance Company, the first company in India offering life insurance

coverage, was established in Calcutta in 1818 by BipinBehariDasgupta and others. Its

primary target market was the Europeans based in India, and it charged Indians heftier

premiums. Surendranath Tagore (son of Satyendranath Tagore) had founded Hindusthan

Insurance Society, which later became Life Insurance Corporation.

The Bombay Mutual Life Assurance Society, formed in 1870, was the first native insurance

provider. Other insurance companies established in the pre-independence era included

31
 Postal Life Insurance (PLI) was introduced on 1 February 1884

 Bharat Insurance Company (1896)

 United India (1906)

 National Indian (1906)

 National Insurance (1906)

 Co-operative Assurance (1906)

 Hindustan Co-operatives (1907)

 Indian Mercantile

 General Assurance

 Swadeshi Life (later Bombay Life)

 Sahyadri Insurance (Merged into LIC, 1986)

The first 150 years were marked mostly by turbulent economic conditions. It

witnessed, India's First War of Independence, adverse effects of the World War I and World

War II on the economy of India, and in between them the period of world wide economic

crises triggered by the Great depression. The first half of the 20th century also saw a

heightened struggle for India's independence. The aggregate effect of these events led to a

high rate of and liquidation of life insurance companies in India. This had adversely affected

the faith of the general public in the utility of obtaining life cover.

Nationalisation in 1955

In 1955, parliamentarian AmolBarate raised the matter of insurance fraud by owners of

private insurance agencies. In the ensuing investigations, one of India's wealthiest

businessmen, SachinDevkekar, owner of the Times of India newspaper, was sent to prison for

two years.

32
Eventually, the Parliament of India passed the Life Insurance of India Act on June 19, 1956

creating the Life Insurance Corporation of India, which started operating in September of that

year. It consolidated the life insurance business of 245 private life insurers and other entities

offering life insurance services, this consisted of 154 life insurance companies, 16 foreign

companies and 75 provident companies. The nationalisation of the life insurance business in

India was a result of the Industrial Policy Resolution of 1956, which had created a policy

framework for extending state control over at least seventeen sectors of the economy,

including life insurance.

Growth as a monopoly

From its creation, the Life Insurance Corporation of India, which commanded a monopoly of

soliciting and selling life insurance in India, created huge surpluses, and by 2006 was

contributing around 7% of India's GDP

The Corporation, which started its business with around 300 offices, 5.7 million policies and

acorpus of INR 45.9 crores (US$92 million as per the 1959 exchange rate of roughly  5 for

US$1),[5] had grown to 25,000 servicing around 350 million policies and a corpus of over 

800000 crore (US$130 billion) by the end of the 20th century.

Liberalisation post 2000s

In August 2000, the Indian Government embarked on a program to liberalise the Insurance

Sector and opened it up for the private sector. Ironically, LIC emerged as a beneficiary from

this process with robust performance, albeit on a base substantially higher than the private

sector.

In 2013 the First Year Premium compound annual growth rate (CAGR) was 24.53% while

Total Life Premium CAGR was 19.28% matching the growth of the life insurance industry

and also outperforming general economic growth.

33
Awards and recognitions

 The Economic Times Brand Equity Survey 2012 rated LIC as the No. 6 Most Trusted

Service Brand of India.

 From the year 2006, LIC has been continuously winning the Readers' Digest Trusted

brand award.

 Voted India's Most Trusted brand in the BFSI category according to the Brand Trust

Report for 4 continuous years - 2011-2014 according to the Brand Trust Report 

Employees and Agents

As on 31 March 2014, LIC had 1,20,388 employees, out of which 24,867 were
women (20.65%).

Category of employees Total Number No. of Women

Class-I Officers 31,420 6,292

Development Officers 26,621 1,033

Class III/IV employees 62,347 17,542

Total 1,20,388 24,867

Agency
LIC had 11,95,916 agents as on 31 March 2014, out of which the number of active
agents were 11,32,677 (94.71%)

As per IRDA Annual Report 2012-13 the Total Life Fund of the Life Insurance
Industry was Rs.17,44894 crore. The increase in Life Funds during 2013-14was
Rs.1,94,300crore compared to Rs.1,80,000 crore in 2012-13 showing a growth of 7.94 %

34
 HDFC Life Insurance
(Private Sector Company)

35
HDFC Life (HDFC Standard Life Insurance Company) is a long-term life insurance provider

with its headquarters in Mumbai, offering individual and group insurance.

It is a joint venture between Housing Development Finance Corporation Ltd (HDFC), one of

India's leading housing finance institution and Standard Life plc, leading well known

provider of financial savings & investments services in the United Kingdom. HDFC Ltd.

holds 72.37% and Standard Life (Mauritius Holding) Ltd. holds 26.00% of equity in the joint

venture, while the rest is held by others.

Corporate History

The Insurance Regulatory and Development Authority (IRDA) was constituted in 1999 as an

autonomous body to regulate and develop the insurance industry. The IRDA opened up the

36
market in August 2000 with the invitation for application for registrations. HDFC Life was

established in 2000 becoming the first private sector life insurance company in India

By 2001, the company had its 100th customer, strengthened its employee force to 100 and

had settled its first claim. HDFC Life launched its first TV advertising campaign

'SarUthaKeJiyo' in 2005. In 2006, a study conducted by the Brand Equity – Economic Times

had put HDFC Life at 29th rank in the most trusted Indian Brands amongst the Top 50

Service Brands of 2010

The Insurance Regulatory and Development Authority (IRDA) gave accreditation to HDFC

Life for 149 training centres housed in its branches to cater to the mandatory training required

to be given as well as for other sales training requirements in 2009.

In 2012, it the first private life insurance company to bring back pension plans under the new

regulatory regime, with the launch of two pension plans - HDFC Life Pension Super Plus and

HDFC Life Single Premium Pension Super.

Presence & Distribution

HDFC Life has about 400+ branches and presence in 980+ cities and towns in India. The

company has also established a liaison office in Dubai.

HDFC Life distributes its products through a multi channel network consisting of Insurance

agents, Bancassurance partners (HDFC Bank, Saraswat Bank, Indian Bank), Direct channel,

Insurance Brokers & Online Insurance Platform.

37
 Objective

 To know about the insurance companies.

 To know how Insurance companies are benefited through marketing.

38
 To understand what is marketing process of insurance.

Scope

39
 The project begins with a brief mention of what “MARKETING” is and

its need and importance in Insurance Companies. It further goes on to

show the challenges faced by the Insurance Companies

Importance

40
Life Insurance Corporation of India (LIC) is an autonomous body authorized to run the life

insurance business in India with its Head Office at Mumbai. About 154 Indian insurance

companies, 16 non-Indian companies and 75 provident fund societies were operating in India

at the time of nationalization. Nationalization was accomplished in two stages; initially the

management of the companies was taken over by means of an Ordinance, and later, the

ownership by means of a comprehensive bill.

Research Methodology

41
METHODOLOGY

Research is a common language refers to a search of knowledge. Research is scientific &

systematic search for pertinent information on a pacific topic, infect research is an art of

scientific investigation. Research methodology is a scientific way to solve research problem.

It may be understood as a science of studying how research is doing scientifically. In it we

study various steps that are generally adopted by research by research in studying hair

research problem it is necessary for researchers to know not only know research method

techniques but also technology.

The scope of Research Methodology is wider than of research methods.

The research problem consists of series of closely related activities. At a times. The first step

determines the native of the last step to be undertaken, why a research has been defined what

data has been collected and what a particular methods have been adopted and a host of

similar other questions are usually answered when we talk of research methodology

concerning a research problem or study. The project is a study where focus is on the

following points:

Research Design

A research design is defined, as the specification of methods and procedures for acquiring the

information needed. It is a plant or organizing framework for doing the study and collecting

the data. Designing a research plan requires decision all the data sources, research

approaches, Research instruments, sampling plan and contact methods.

Research design is mainly of following types:-

42
  Exploratory research

 Descriptive studies

 Casual studies

EXPLORATORY RESEARCH

The major purposes of exploratory studies are the identification of problems, the more

precise formulation of problems and the formulation of new alternative courses of

action. The design of exploratory studies us characterized by a great amount of

flexibility and ad – hoc veracity.

DESCRIPTIVE RESEARCH

Descriptive research in contrast to exploratory research is marked by the prior

formulation of specific research Questions. The investigator already knows a

substantial amount about the research problem, perhaps as a Result of an exploratory

study, before the project is initiated; Descriptive research is also characterized by a

preplanned and structured design.

CASUAL OR EXERIMENTAL RESEARCH

A casual design investigates the cause and effect relationships between two or

more variables. The hypothesis is tested and the experiment is done. There are

following types of casual designs:

I. After only design

II. Before after design

III. Before after with control group design

IV. Four groups, six studies design

V. After only with control group design

43
 VI. Consumer panel design

PRIMARY DATA-

These data are collected first time as original data. The data is recorded as observed or

encountered. Essentially they are raw materials. They may be combined, totaled but

they have not extensively been statistically processed. For example, data obtained by

the peoples.

SECONDARY DATA-

Sources of Secondary Data. Following are the main sources of secondary data:

Period of Study:

This study has been carried out for a maximum period of 8 weeks.

Area of study:

The study is exclusively done in the area of finance. It is a process requiring care,

sophistication, experience, business judgment, and imagination for which there can be

no mechanical substitutes.

Sampling Design:

The convenience sampling is done because any probability sampling procedure would

require detailed information about the universe, which is not easily available further,

it being an exploratory research.

Sample Procedure:

44
 In this study “judgmental sampling procedure is used. Judgmental sampling is

preferred because of some limitation and the complexity of the random sampling.

Area sampling is used in combination with convenience sampling so as to collect the

data from different regions of the city and to increase reliability.

Sampling Size:

The sampling size of the study is 100 users.

Method of the Sampling:

Probability Sampling:

It is also known as random sampling. Here, every item of the universe has an equal

chance or probability of being chosen for sample. Probability sampling may be taken inform

of:

Simple Random Sampling:

A simple random sample gives each member of the population an equal chance of

being chosen.  It is not a haphazard sample as some people think!  One way of achieving a

simple random sample is to number each element in the sampling frame (e.g. give everyone

on the Electoral register a number) and then use random numbers to select the required

sample

.Random numbers can be obtained using your calculator, a spreadsheet, printed tables of

random numbers, or by the more traditional methods of drawing slips of paper from a hat,

tossing coins or rolling dice.

Systematic Random Sampling

45
 This is random sampling with a system! From the sampling frame, a starting point is

chosen at random, and thereafter at regular intervals.

Stratified Random Sampling

With stratified random sampling, the population is first divided into a number of parts

or 'strata' according to some characteristic, chosen to be related to the major variables

being studied. For this survey, the variable of interest is the citizen's attitude to the

redevelopment scheme, and the stratification factor will be the values of the

respondents' homes. This factor was chosen because it seems reasonable to suppose

that it will be related to people's attitudes.

Cluster and area Sampling

Cluster sampling is a sampling technique used when "natural" groupings are evident

in a statistical population. It is often used in marketing research. In this technique, the

total population is divided into these groups (or clusters) and a sample of the groups is

selected. Then the required information is collected from the elements within each

selected group. This may be done for every element in these groups or a sub sample

of elements may be selected within each of these groups.

Non Probability Sampling

It is also known as deliberate or purposive or judge mental sampling. In this type of

sampling, every item in the universe does not have an equal, chance of being included

in a sample.

It is of following type:

Convenience Sampling

46
 A convenience sample chooses the individuals that are easiest to reach or sampling

that is done easy. Convenience sampling does not represent the entire population so it

is considered bias.

Quota Sampling

In quota sampling the selection of the sample is made by the interviewer, who has

been given quotas to fill from specified sub-groups of the population.

Judgment Sampling

The sampling technique used here in probability > Random Sampling.

The total sample size is 100 profiles.

Data Collection: -

Data is collected from various customers through personal interaction. Specific

questionnaire is prepared for collecting data. Data is collected with mere interaction

and formal discussion with different respondents and we collect data in insurance

company and face to face contact with the persons from whom the information is to

be obtained (known as informants). The interviewer asks them questions

pertaining to the survey and collects the desired information. Thus, we collect data

about the working conditions of the workers of insurance company; we worked at

insurance company contact the workers and obtain the information. The information

obtained is first hand or original in character.

47
 Data Analysis and interpretation

1- What is your perception about life insurance (Rank them)

Option Respondent Percentage

A saving tool 45 45%
A tax saving device 18 18%
A tool to protect future 37 37%
Total 100 100%

45%

40%

35%

30%

25% 45%

20% 37%

15%

18%
10%

5%

0%
e
ice
l
oo

ur
ev
gt

ut
gd

tf
vin

ec
in
sa

ot
av
A

pr
xs

to
ta

ol
A

to
A

48
Analysis-
The above graph shows that 45% respondents said that insurance life insurance a

saving tool, 18% respondents said that insurance life insurance a tax saving device

and 37% respondent says that insurance life insurance a tool to protect future.

Interpretation-
The above analysis shows that all more than the half of respondents says insurance is

a saving tool.

49
2- Do you think about other investment option other than life insurance If yes which of
the following?

Option Respondent Percentage

Real estate 10 10%
Mutual funds 21 21%
Share market 9 9%
Govt Deposits 40 40%
Bank Deposits 20 20%
Total 100 100%

40%

35%

30%

25%

40%
20%

15%

21% 20%
10%

10% 9%
5%

0%
Real estate Mutual funds Share market Govt DepositsBank Deposits

50
Analysis-
The above graph shows that 10% respondents said that Real estate is other investment

option other than life insurance, 21% respondents said Mutual funds is other

investment option other than life insurance, 9% respondent said Share market is other

investment option other than life insurance, 40% respondent said that Govt Deposits

is other investment option other than life insurance and 20% respondent said Bank

Deposits is other investment option other than life insurance.

Interpretation-
The above analysis shows that all more than the half of respondents says that Govt

Deposits are good investment option other than life insurance.

51
3- Are you satisfied with customer service of life insurance companies?

Option Respondent Percentage

Yes 88 88%
No 12 12%
Total 100 100%

90%

80%

70%

60%

50%
88%

40%

30%

20%

10% 12%

0%
Yes No

52
Data Analysis-
The above graph shows that 88% respondents say yes satisfied with customer service

of life insurance companies and 12% respondent say not satisfied with customer

service of life insurance companies

Interpretation-

The above analysis shows that all more than the half of respondents says satisfied

with customer service of life insurance companies.

53
 4- Which sector insurance policy you have taken?

Option Responden Percentage

t
LIC 86 86%
Private insurance company 14 14%
Total 100 100%

90%

80%

70%

60%

50% 86%

40%

30%

20%
14%
10%

0%
LIC Private insurance company

Data Analysis-
The above graph shows that 86% respondents say LIC insurance policy have taken

and 14% respondent say Private insurance company policy have taken.

Interpretation-
The above analysis shows that all more than the maximum respondents says LIC

insurance policy have taken.

54
5- Why you motivated to purchase insurance policies?

Option Responden Percentage

t
LIC 86 86%
Private insurance company 14 14%
Total 100 100%

90%

80%

70%

60%

50% 86%

40%

30%

20%

14%
10%

0%
LIC Private insurance company

55
Data Analysis-
The above graph shows that 86% respondents say LIC insurance policy have taken

and 14% respondent say Private insurance company policy have taken.

Interpretation-
The above analysis shows that all more than the maximum respondents says LIC

insurance policy have taken.

56
6- Does your company provides better complain handling services?
a- Yes
b- No

Option Responden Percentage

t
Yes 68 68%
No 32 32%
Total 100 100%

70%

60%

50%

40%
68%

30%

20% 32%

10%

0%
Yes No

57
Data Analysis-
The above graph shows that 68% respondents say yes provides better complain

handling services and 32% respondents say yes provides better complain handling

services.

Interpretation-

The above analysis shows that all more than the maximum respondents says

respondents are say good provides better complain handling services.

58
7- Is your life insurance company focused on advertisement?
a- Yes
b- No

Option Responden Percentage

t
Yes 78 78%
No 22 22%
Total 100 100%

59
 80%

70%

60%

50%

78%
40%

30%

20%
22%

10%

0%
Yes No

Data Analysis-
The above graph shows that 78% respondents say yes life insurance company focused

on advertisement and 22% respondents say no insurance company focused on

advertisement.

Interpretation-

The above analysis shows that all more than the maximum respondents are says that

Life Insurance Company focused on advertisement.

60
8- What factor influences to choose life insurance plan?
a- Tax saving b-High return
b- Insurance d-Tax free maturity
a- All of then

Option Responden Percentage

t
Tax saving 04 04%
High return 20 20%
Insurance 45 45%
Tax free maturity 15 15%
All of then 16 16%
Total 100 100%

61
 45%

40%

35%

30%

25%
45%

20%

15%

20%
10%
15% 16%

5%
4%

0%
Tax saving High return Insurance Tax free maturity All of then

Data Analysis-
The above graph shows that 78% respondents are say that Tax saving factor

influences to choose life insurance plan 20% respondent says High return factor

influences to choose life insurance plan, 45% respondent are says Insurance factor

influences to choose life insurance plan, 15% respondent are say Tax free maturity

factor influences to choose life insurance plan and 16% respondent are says that factor

influences to choose life insurance plan.

Interpretation-

62
 The above analysis shows that all more than the maximum respondents are says that

Insurance is main factor for by insurance.

9- According to you who company is best for high return?

a- HDFC standard life insurance
b- Birla sun life insurance
c- Reliance life insurance
d- Life Insurance in India
e- Other

Option Responden Percentage

t
HDFC standard life insurance 06 06%
Birla sun life insurance 12 12%
Reliance life insurance 02 02%
Life Insurance in India 78 78%
Other 02 02%
Total 100 100%

63
 80%

70%

60%

50%

40% 78%

30%

20%

10%
12%
6%
2% 2%
0%
ce

e
e

r
he
nc
nc

di
an

In

Ot
ra

ra
ur

su
su

in
ns

in
in

ce
ei

an
e

ife
lif

lif

ur
el
d

ns
nc
su
ar

eI
lia
nd

rla

Lif
Re
sta

Bi
FC
HD

Data Analysis-

The above graph shows that 6% respondents are say that HDFC standard life

insurance company is best for high return, 12% respondent are say that Birla sun life

insurance company is best for high return, 2% respondent are say that Reliance life

insurance company is best for high return, 78% respondent are say that Life

Insurance in India company is best for high return and 2% respondent says that other

company is best for high return.

64
Interpretation-

The above analysis shows that all more than the maximum respondents are says that

Life Insurance in India Company is best for high return.

10- What is the maturity period of policies that have taken?

a- 5 years
b- 5 to 15 years
c- 15 to 25 years
d- Any other (plz specify)…………

Option Responden Percentage

t
5 years 06 06%
5 to 15 years 30 30%
15 to 25 years 54 54%
Any other 10 10%
Total 100 100%

65
 60%

50%

40%

30%
54%

20%
30%

10%
10%
6%

0%
5 years 5 to 15 years 15 to 25 years Any other

Data Analysis-

The above graph shows that 6% respondents are say that 5 years maturity period of

policies that have taken, 30% respondent says that maturity period of policies that

have taken, 54% respondent says that 15 to 25 years maturity period of policies that

have taken and 10% respondent says that other years maturity period of policies that

have taken.

66
Interpretation-

The above analysis shows that all more than the maximum respondents are says that

15 to 25 years maturity period of policies that have taken.

11- Do you life insurance company make undue delay in claim settlement?
a- Yes
b- No

Option Responden Percentage

t
Yes 45 45%
No 55 55%
Total 100 100%

67
 60%

50%

40%

30% 55%

45%

20%

10%

0%
Yes No

Data Analysis-

The above graph shows that 45% respondents are say that Life Insurance Company

make undue delay in claim settlement and 55% respondent are says that not life

insurance company make undue delay in claim settlement.

68
Interpretation-

The above analysis shows that all more than the maximum respondents are says that

not life insurance Company make undue delay in claim settlement.

12- Is your company reliable to you?

a- Yes
b- No

Option Responden Percentage

t
Yes 67 67%
No 33 33%
Total 100 100%

69
 70%

60%

50%

40%
67%

30%

20% 33%

10%

0%
Yes No

Data Analysis-

The above graph shows that 63% respondents are say that chosen insurance company

company reliable and 33% respondent are says that insurance company not reliable.

Interpretation-

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The above analysis shows that all more than the maximum respondents are says that

insurance company company reliable.

Finding

As per the survey and research conducted and data analyzed,

the researcher found that:

There are 45% respondents said that insurance life insurance a saving tool, 18%

respondents said that insurance life insurance a tax saving device and 37% respondent

says that insurance life insurance a tool to protect future.

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There are 10% respondents said that Real estate is other investment option other than

life insurance, 21% respondents said Mutual funds is other investment option other

than life insurance, 9% respondent said Share market is other investment option other

than life insurance, 40% respondent said that Govt Deposits is other investment

option other than life insurance and 20% respondent said Bank Deposits is other

investment option other than life insurance.

There are 88% respondents say yes satisfied with customer service of life insurance

companies and 12% respondent say not satisfied with customer service of life

insurance companies

There are 86% respondents say LIC insurance policy have taken and 14% respondent

say Private insurance company policy have taken.

There are 86% respondents say LIC insurance policy have taken and 14% respondent

say Private insurance company policy have taken.

There are 68% respondents say yes provides better complain handling services and

32% respondents say yes provides better complain handling services.

There are 78% respondents say yes life insurance company focused on advertisement

and 22% respondents say no insurance company focused on advertisement.

There are 78% respondents are say that Tax saving factor influences to choose life

insurance plan 20% respondent says High return factor influences to choose life

insurance plan, 45% respondent are says Insurance factor influences to choose life

insurance plan, 15% respondent are say Tax free maturity factor influences to choose

life insurance plan and 16% respondent are says that factor influences to choose life

insurance plan.

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 There are 6% respondents are say that HDFC standard life insurance company is best

for high return, 12% respondent are say that Birla sun life insurance company is best

for high return, 2% respondent are say that Reliance life insurance company is best

for high return, 78% respondent are say that Life Insurance in India company is best

for high return and 2% respondent says that other company is best for high return.

There are 6% respondents are say that 5 years maturity period of policies that have

taken, 30% respondent says that maturity period of policies that have taken, 54%

respondent says that 15 to 25 years maturity period of policies that have taken and

10% respondent says that other years maturity period of policies that have taken.

The above graph shows that 45% respondents are say that Life Insurance Company

make undue delay in claim settlement and 55% respondent are says that not life

insurance Company make undue delay in claim settlement.

The above graph shows that 63% respondents are say that chosen insurance company

company reliable and 33% respondent are says that insurance company not reliable.

Recommendation

 Customers like best quality product at any price, so companies should add latest

technologies to their products.

 After sale services is the area where branded and non branded company can highly

satisfy the existing customers, because they can make more customers through their word

of mouth. So Indian and international company should provide latest and reliable services

to their customers.

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 Customer’s behaviour is always looks for some extra benefit with purchasing. They

demand for affordable price for products and gifts with purchasing.

 International companies should make strategy to cater every income group customers

In city. upper income group are affordable to purchase, but lower group is not. So

International companies makes policies for to send their product and every home.

 The companies give more emphasis on advertising to create market awareness

andmake Brand image in the minds of customer.

Chapter -5

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 Conclusion

And

Limitation

Conclusion

Insurance plays an important role in general life. Risk exist every where, to cover

these risk Insurance is very important. But the method or procedure of insurance need

to be change. As days goes needs & requirements of the people get change. Insurance

includes different-different products to fulfill the need of the people.

In our daily lives we encounter lot of risks which results in fiscal losses. One of the

excellent ways to safeguard these losses is through insurance. The insurance firms in

India take entire charge of any such losses against the payment forfeited every month

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 in the form of premium. Insurance is a commercial means for relocating risks and

covering fiscal losses.

Insurance is an integral part of any personal financial plan. The type of insurance and

the amount of coverage you obtain all depends on your unique financial and family

circumstances, and must be evaluated carefully.

Thus Insurance is a needy financial instrument that every individual should pursue for

covering the risk of his life and providing safety against life, property, liability,

disability, etc.

Limitation

No project is without limitation and it becomes essential to figure out the various constraints

that we underwent during the study the following points in this deliberation.

1- Lack of time is the basic limitation in the project.

2- Lack of proper information & experience due to short /span of time.

3- Some respondent give baited information regarding the study.

4- Lack of accuracy.

5- No. of samples.

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 Bibliography

Books-

1 Krishnaswami, O. R. ; Research methodology in social science

2 Krishnaswami, K. N. ; Management research methodology,

3 Kothari, C. R. ; Research methodology

4 Kotler, Philip ; Marketing management

5 Ramaswamy, V. S., Namaswamy, S. ; Marketing management

5 Skinner, Steven J. ; Marketing

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Magazines-

1 Business & economics

2 Business India

3 Business today

4 India today

5 The Sunday Indian

Newspapers-

1 The Times of India

2 Hindustan times

Journals-

1 The Indian national journal

Websites-

 www.google.in

 www.scribed. In

 www.slideshare.in

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 Questionnaire

Dear Respondent, Myself PriyankaGupta BBA Student from TERI

P.G.College conducting a survey on “A comparative study of customer
satisfaction with life insurance services in GhazipurCity”.I would appreciate
your participation for sharing your view point by filling this questionnaire.
A- Demographic profile
 Name…………………………………
 Gender-
a- Male ( )
b- Female ( )
 Age
a- 18-20
b- 21-25
c- 26-30
d- 40 – above

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  Educational Qualification
a- High School
b- Intermediate
c- Graduation
d- Post-Graduation
e- Professional
 Profession
a- Private service
b- Business
c- Self-employed
d- Student
e- Govt. Employee
f- Home maker
 Marital States
a- Married
b- Unmarried

13- What is your perception about life insurance (Ranic them)

a- A saving tool
b- A tax saving device
c- A tool to protect future
14- Do you think about other inverstment option other than life insurance If yes which of
the following
b- Real estate
c- Mutual funds
d- Share market
e- Govt Deposits
f- Bank Deposits
15- Are you satisfied with customer service of life insurance companies
a- Yes 63%
b- No 37%
16- Which Company insurance policy you have taken
a- LIC b-Private insurance company
17- Why you motivated to purchase insurancepolicies
a- Better return b-Risk Protection
c-Family protection d-Tax benfits
18- Does your company provides better complain handling services
c- Yes
d- No
19- Is your life insurance company focused on advertisement.
c- Yes
d- No
20- What factor influences tochoose life insurance plan
c- Tax saving b-High return
c-Insurance d-Tax free maturity
e-All of then

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21- According to you who company is best for high return.
a- HDFC standard life insurance
b- Biria sun life insurance
c- Reliance life insurance
d- Life Insurance in india
e- Other
22- What is the maturity period of policy that have taken?
a- 5 years
b- 5 to 15 years
c- 15 to 25 years
d- Any other (plz specify)…………
23- According to you who company is teading in customer services.
a- HDFC standard life insurance
b- Biria sun life insurance
c- Reliance life insurance
d- Life Insurance in india
e- Other
24- Do you life insurance company make undue detayinclaim settlement
c- Yes
d- No
25- Is your company reliable to you
c- Yes
d- No
26- Do you want to give any suggestion………………………………
…………………………………………………………………………………………
…………………………………………….…………………….

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