A

SUMMER TRAINING PROJECT REPORT

ON
“CONSUMER PERCEPTION ON SBI LIFE INSURANCE”

SUBMITTED FOR PARTIAL FULFILLMENT OF THE DEGREE

OF
MASTER OF BUSINESS ADMINSTRATION (MBA)
(2020-2022)

SUBMITTED TO: SUBMITTED BY:

DEPARTMENT OF MBA VISHAL PATIAL

ROLLNO. 20013726057

Government Post Graduate College Dharamshala- (176215)

Certificate from Company
 CERTIFICATE FROM THE CANDIDATE

I am Vishal Patial student of MBA 3rd semester declares that I have done the project on
“Consumer Perception in SBI life insurance” focused on SBI Life Insurance co limited has
been personally done by me under the guidance of Prof. Akhil Gautam in partial fulfillment
of MBA program during academic year 2020-2022. All the data represents in this project is
true and correct to the best of my knowledge and belief.

I also declare that this project report is my own preparation and not copied from anywhere
else.

Vishal Patial

SIGNATURE………………
 ACKNOWLEDGEMENT

Summer Training Report is a combined effort including this one also, so I would like to thank
to all who have helped me completion of this report purposeful

I would like to extend my heartfelt gratitude to Prof. Akhil Gautam for his guidance
throughout the project. Without his support and cooperation, we would have failed in our
endeavors and targets in this project.

I also want to thank to Mr. Rohit Attri Manager in SBI Life Insurance Co. Ltd.

Prof. Akhil Gautam My mentor assists me in completion of this project.

Further I would like to thanks to all my Teachers, Staff Members, Library Members, and
Friends for their valuable support and advices which helps me a lot to completing this project
report purposeful.

VISHAL PATIAL

MBA 3rd sem.

 PREFACE

Now days in this dynamic era Insurance is coming as an important tool for reducing the effect
of uncertainty and risks. It becomes an integral part and indispensable part of human life.
There are various types of insurance plans to provide protection from loss and uncertainties.

So, it is a great opportunity for me to study on “People’s Perception and awareness are
concerning “Consumer’s perception in SBI life insurance” in Dharamshala (HP). The
purpose of this research is to know knowledge and perception of people about “SBI Life
insurance” in Dharamshala (HP).

VISH
AL PATIAL

MBA- 3rd Sem

 EXECUTIVE SUMMARY

Summer Training is the inseparable aspect of the professional course today. This is the basic
criteria which makes it mandatory for the participants in any curriculum that he/she carries
out in his/her own thought and blends it with the official’s data on the basis of which a
complete report is formulated.

With the philosophy in mind my summer training is based on the “Consumer perception on
Life Insurance” programs carried at SBI Life Insurance Dharamshala.

Theory and practice are the two eyes of the management education without practical training
at an organization remains incomplete. The training prescribed by the Govt. P.G College
Dharamshala student have various objectives like helping the student to acquire knowledge,
give an opportunity to know the difference between theory and practice, enable the student to
interact with experience and knowledgeable person of business world.

As a student of MBA, I got an opportunity to undergo on a training. The training title is

Consumer Perception on Life Insurance: Focus on SBI Life Insurance Co. Limited.

I successfully completed my training report within the specified time. It was really a thrilling
experience for me with the senior officials of industry and to interact with different members,
employees of the organization. It was an experience of enjoyment through hard work and
dedication.
 TABLE OF CONTENTS

S.NO CHAPTERS PAGE NO.

1. INTRODUCTION OF THE COMPANY

COMPANY PROFILE HISTORY

2. INTRODUCTION TO THE TOPIC

3. OBJECTIVES OF THE STUDY

SCOPE OF THE STUDY

4. RESEARCH METHODOLOGY
DATA AND INTERPRETATION

5. SUMMARY AND SUGGESTIONS

6.
QUESTIONARRIE

7. BIBLIOGRAPHY

CHAPTER-1

INDUSTRY PROFILE
1.1 INTRODUCTION-

INSURANCE:

 Insurance is a means of protection from financial loss. It is a form of risk management,

primarily used to hedge against the risk of a contingent or uncertain loss.
 An entity which provides insurance is known as an insurer, an insurance company, an
insurance carrier or an underwriter. A person or entity who buys insurance is known as a
policyholder, while a person or entity covered under the policy is called an insured.
Policyholder and insured are often used as but are not necessarily synonyms, as coverage
can sometimes extend to additional insureds who did not buy the insurance. The
insurance transaction involves the policyholder assuming a guaranteed, known, and
relatively small loss in the form of payment to the insurer in exchange for the insurer's
promise to compensate the insured in the event of a covered loss. The loss may or may
not be financial, but it must be reducible to financial terms, and usually involves
something in which the insured has an insurable interest established by ownership,
possession, or pre-existing relationship.
 The insured receives a contract, called the insurance policy, which details the conditions
and circumstances under which the insurer will compensate the insured, or their
designated beneficiary or assignee. The amount of money charged by the insurer to the
policyholder for the coverage set forth in the insurance policy is called the premium. If
the insured experiences a loss which is potentially covered by the insurance policy, the
insured submits a claim to the insurer for processing by a claims adjuster.
  A mandatory out-of-pocket expense required by an insurance policy before an insurer will
pay a claim is called a deductible (or if required by a health insurance policy). The
insurer may hedge its own risk by taking out reinsurance, whereby another insurance
company agrees to carry some of the risks, especially if the primary insurer deems the
risk too large for it to carry.

1.

INSURANCE PROVIDES-

• Protection to investor from financial loss or any uncertain loss.

• It helps in accumulation of savings for a long term.

• Old age pensions and Assured Income Benefits

• Tax benefits

• Act as a co-operative device in sharing risk

• Assured Income Benefits

• Return on Investment

• Life Risk Cover

1.2 HISTORY:
Insurance in this current form has its history dating back to 1818, when “Oriental Life
Insurance Company” was started by Anita Bhavsar in Kolkata to cater to the needs
ofEuropean community. The pre-independence era in India saw discrimination between
thelives of foreigners (English) and Indians with higher premiums being charged for the
latter.
In 1870, Bombay Mutual Life Assurance Society became the first Indian insurer.
At the dawn of the twentieth century, many insurance companies were founded.
In theyear 1912,“the Life Insurance Companies Act” and the “Provident Fund Act” were
passed to regulate the insurance business. The Life Insurance Companies Act, 1912 made it
necessary that the premium-rate tables and periodical valuations of companies should be
certified by an actuary. However, the disparity still existed as discrimination between Indian
and foreign companies.
The oldest existing insurance company in India is “the National Insurance Company”, which
was founded in 1906, and is still in business.

2.
“The Government of India” issued an Ordinance on 19 January 1956 nationalising the Life
Insurance sector and “Life Insurance Corporation” came into existence in the same year. The
Life Insurance Corporation (LIC) absorbed 154 Indian, 16 non-Indian insurers and also 75
provident societies—245 Indian and foreign insurers in all.
In 1972, with the “General Insurance Business” (Nationalisation) Act was passed by the
Indian Parliament, and consequently, General Insurance business was nationalized with effect
from 1 January 1973.
107 insurers were amalgamated and grouped into four companies, namely National Insurance
Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd
and the United India Insurance Company Ltd.
“The General Insurance Corporation of India” was incorporated as a company in 22
November 1972 as a private company under Companies Act, 1956 in Bombay and received
its Certificate for Commencement of Business on 1 January 1973.
The LIC had monopoly till the late 90’s when the Insurance sector was reopened to the
private sector. But now there are 23 private life insurance companies in India. Before that, the
industry consisted of only two state insurers: Life Insurers (Life Insurance Corporation of
India, LIC) and General Insurers (General Insurance Corporation of India, GIC).
GIC had four subsidiary companies. With effect from December 2000, these subsidiaries
have been de-linked from the parent company and were set up as independent insurance
companies: Oriental Insurance Company Limited, New India Assurance Company Limited,
National Insurance Company Limited and United India Insurance Company.
• In August 2021, ICICI Lombard General Insurance introduced extensive coverage for
remote piloted aircraft, particularly drone operators. This product protects the drone, as well
as the payload (camera/equipment) attached to it, against theft, loss, or damage, and third-
party liabilities.
• In July 2021, Med Pay, a Bengaluru-based B2B tech start-up, built an API
infrastructure that connects healthcare service providers, standalone clinics, pharmacies, labs
and insurance companies through its Med Pay Connected Care Network (CCN).
• In June 2021, Bharti AXA Life Insurance reported a 10% renewal premium increase
of Rs. 1,498 crores (US$ 200.64 million) in FY21.
3.
• In June 2021, LIC Housing Finance announced plans to raise ~Rs. 2,334.69 crore
(US$ 312.43 million) through preferential issue of equity shares to the Life Insurance
Corporation of India (LIC).
• On July 1, 2021, the LIC introduced its Saral Pension Scheme, which is a non-linked,
nonparticipating, single premium, individual immediate annuity plan.
• In July 2021, Gallagher announced plan to acquire 100% stake in India’s Edelweiss
Gallagher Insurance Brokers.
• In June 2021, Aditya Birla Sun Life Insurance announced the launch of a new Vision
Life Income Plus, Plan that will provide guaranteed regular income plus flexible bonus pay-
outs to policyholders.
• In June 2021, Ward wizard Group ties up with Bajaj Allianz to offer insurance
policies to Joy eBike customers.
• In May 2021, Max Life Insurance Co. Ltd. launched ‘Max Life Saral Pension’, a non-
linked, individual immediate annuity plan.
• In March 2021, health insurance companies in the non-life insurance sector increased
by 41%, driven by rising demand for health insurance products amid COVID-19 surge.
• In February 2021, Bharti AXA General Insurance launched its ‘Health Advantage’
health insurance scheme to provide holistic cover against accelerating costs associated with
medical requirements and other healthcare facilities.
 • In February 2021, ICICI Lombard General Insurance, a non-life insurance firm in the
private sector, has been authorised by the International Financial Services Centre (IFSC) to
establish an IFSC Insurance Office (IIO) in GIFT City in Gandhinagar, Gujarat.

4.
1.3FUNCTIONS OF INSURANCE:

 PROVIDE PROTECTION: The primary function of insurance is to provide protection

against future risk, accidents and uncertainty. Insurance cannot check the happening of risk,
but can certainly provide for the losses of risk. Insurance is actually a protection against
economic loss, by sharing the risk with others.
 COLLECTIVE BEARING OF RISK: Insurance is an instrument to share the 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 the premiums towards a fund and out of which
the persons exposed to a particular risk is paid.
 ASSESSMENT OF RISK: Insurance determines the probable volume of risk by evaluating
various factors that give rise to risk. Risk is the basis for determining the premium rate.
 PROVIDE CERTAINTY: Insurance is a device, which helps to change from uncertainty to
certainty. Insurance is device whereby the uncertain risks may be made more certain.
 SMALL CAPITAL TO COVER LARGER RISK: Insurance relieves the business men
from security investments, by paying small amount of premium against larger risks and
uncertainty.
 CONTRIBUTES TOWARDS THE DEVELOPMENT OF INDUSTRIES:
 Insurance provides development opportunity to those larger industries having more risks in
their setting up. Even the financial institutions may be prepared to give credit to sick
industrial units which have insured their assets including plant and machinery.
 MEANS OF SAVINGS AND INVESTMENT: Insurance serves as 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 also, people invest in insurance.
 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.

5.

1. LIFE INSURANCE:

Life insurance may be defined as a contract in which the insurer, in consideration of a certain
premium, either in a lump sum or by other periodical payments, agrees to pay the assured, or
to the person for whose benefit the policy is taken, the assured sum of money, on the
happening of a specified event contingent on the human life.

Life insurance is a contract under which the insurer (Insurance Company) in consideration of
a premium paid undertakes to pay a fixed sum of money on the death of the insured or on the
expiry of a specified period of time whichever is earlier. In case of life insurance, the
payment for life insurance policy is certain. The Event insured against is sure to happen only
the time of its happening is not known. So, life insurance is known as “Life Assurance”. The
subject matter of insurance is life of human being. Life insurance provides risk coverage to
the life of a person. On death of the person insurance offers protection against loss of income
and compensate the titleholders of the policy.

1.4 ROLE OF LIFE INSURANCE: -

LIFE INSURANCE AS AN INVESTMENT: Insurance products yield more than any

other investment instruments and it also provides added incentives or bonus offered by
insurance companies.
LIFE INSURANCE AS RISK COVER: Insurance is all about risk cover and protection of
life. Insurance provides a unique sense of security that no other forms of invest can provide.

LIFE INSURANCE AS TAX PLANNING: Insurance serves as an excellent tax saving

mechanism too.

1.5 IMPORTANCE OF LIFE INSURANCE:

PROTECTION AGAINST UNTIMELY DEATH: Life insurance provides protection to

the dependents of the life insured and the family of the assured in case untimely death. The
dependents or family members get a fixed sum of money in case of death of the assured.

SAVING FOR OLD AGE: After retirement the earning capacity of a person reduces. Life
insurance enables a person to enjoy peace of mind and a sense of security in his/her

6.

PROMOTION OF SAVINGS: Life insurance encourages people to save money

compulsorily. When life policy is taken, the assured is to pay premiums regularly to keep the
policy in force and he cannot get back the premiums, only surrender value can be returned to
him. In case of surrender of policy, the policyholder gets the surrendered value only after the
expiry of duration of the policy.

INITIATES INVESTMENTS: Life Insurance Corporation encourages and mobilizes the

public savings and canalizes the same in various investments for the economic development
of the country. Life insurance is an important tool for the mobilization and investment of
small savings.

CREDIT WORTHINESS: Life insurance policy can be used as a security to raise loans. It
improves the credit worthiness of business.

SOCIAL SECURITY: Life insurance is important for the society as a whole also. Life
insurance enables a person to provide for education and marriage of children and for
construction of house. It helps a person to make financial base for future.

TAX BENEFIT: Under the Income Tax Act, premium paid is allowed as a deduction from
the total income under section 80C.
1.6 INSURANCE INDUSTRY

The insurance industry of India has 57 insurance companies 24 are in the life insurance
business, while 34 are non-life insurers. Among the life insurers, Life Insurance Corporation
(LIC) is the sole public sector company. There are six public sector insurers in the non-life
insurance segment. In addition to these, there is a sole national re-insurer, namely General
Insurance Corporation of India (GIC Re). Other stakeholders in the Indian Insurance
marketinclude agents (individual and corporate), brokers, surveyors and third-party
administrators servicing health insurance claims. The major names in the insurance sector are
as given below:

7.

1.7 COMPETITORS OF SBI LIFE INSURANCE:

LIFE INSURANCE:

Life Insurance Corporation (LIC)

HDFC Standard Life

SBI Life Insurance

ICICI Prudential Life Insurance etc.

NON-LIFE INSURANCE:

New India Assurance

United India Assurance

National Insurance Company

ICICI Lombard

Oriental Insurance Company

Bajaj Allianz etc.

1.8(a.) Some of the important milestones in the life insurance

Businesses in India are:
1818: Oriental Life Insurance Company, 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.

8.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective
of protecting the comforts 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, LIC Act, 1956, with a
capital contribution of Rs.5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton
Insurance Company Ltd., the first general insurance company established in the year 1850 in
Calcutta by the British.

(b.) Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. Set up, the first company to transact all classes of
general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code
of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the tariff advisory committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from 1st January 1973
107 insurers amalgamated and grouped into four companies viz. the National Insurance
Company Ltd., The new India Assurance Company Ltd., the Oriental Insurance Company
Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

1.9 GOVERNMENT INITIATIVES AND POLICIES

1. Foreign Direct Investment limit for the insurance sector increased from 26% to 49%.

2. Life insurance companies operational for 10+ years are now allowed to go public by
IRDA.

3. Government plans to divest a significant stake in PSU general insurance companies in

order to execute the steep disinvestment target.

9.
1.10 ROAD AHEAD
The future looks promising for the life insurance industry with several changes in regulatory
framework which will lead to further change in the way the industry conducts its business
and engages with its customers.

The overall insurance industry is expected to reach US$ 280 billion by the end of 2020. Life
insurance industry in the country is expected to increase by 14-15% annually for the next
three to five years.

The scope of lot in Indian insurance market continues to go beyond telematics and customer
risk assessment. Currently, there are 110+ InsurTech start-ups operating in India.

Demographic factors such as growing middle class, young insurable population and growing
awareness of the need for protection and retirement planning will support the growth of
Indian life insurance.

1.11 INSURANCE REGULATORY DEVELOPMENT AUTHORITY (IRDA):

In 1999, the Insurance Regulatory and Development Authority (IRDA) were constituted as
an autonomous body to regulate and develop the insurance industry. The IRDA was
incorporated as a statutory body in April 2000. The key objectives of the IRDA include
promotion of competition so as to enhance customer satisfaction through increased consumer
choice and lower premiums, while ensuring the financial security of the insurance market.
 The IRDA opened up the market in August 2000 with the invitation for application for
registrations. Foreign companies were allowed ownership of up to 26%.

The Authority has the power to frame regulations under Section 114A of the Insurance Act,
1938 and has from 2000 onwards framed various regulations ranging from registration of
companies for carrying on insurance business to protection of policy holders’ interests.

10.

1.12ROLE OF IRDA:

• Protecting the interests of policyholders.

• Establishing guidelines for the operations of insurers and brokers.

• Specifyingthe code of conduct, qualifications, and training for insurance

intermediaries and agents.

• Promoting efficiency in the conduct of insurance business.

• Regulating the investment of funds by insurance companies.

• Specifying the percentage of business to be written by insurers in rural sectors.

• Handling disputes between insurers and insurance intermediaries.

1.13 PEST/PESTEL Analysis of SBI Life Insurance: -

The PESTEL / PEST Analysis of SBI Life Insurance will cover all macro environment
factors that impact Insurance (Life) - political factors, economic factors, social factors,
technological factors, environmental factors and legal factors. SBI Life Insurance (SBIL) is
listed on NSE stock exchange and has a market capital of 567.80B.
PESTEL Analysis is a strategicmanagement tool that SBI Life Insurance leadership can use
to make better decisions. SBI Life Insurance operates in a dynamic environment where it is
influenced by – government decisions, regulatory framework, technological changes,
collective social trends, increasing environmental activism among consumers, increasing
regulatory framework for environmental factors, consumer spending behaviour, and ever
evolving legal system.
1. Political factors:Political factors are often related to the level of intervention and nature of
intervention of the local and national government in the business and economic environment.
Government policies and governance system plays a huge role in nature and objectives of the
policies.

11.

Political Factors that Impact SBI Life Insurance: -

Taxation policies – Over the last two decades SBI Life Insurance has benefitted from lower
taxation policies throughout the western hemisphere. It has resulted in high profits and
increasing spending in the research and development. The increasing inequality in India can
lead to changes in the taxation policies. Secondly local governments are also looking into
Insurance (Life) specific taxation policies to contain the carbon footprint of the financial
sector.

Regulatory Practices – SBI Life Insurance has to manage diverse regulations in the various
markets it is present in. Over the last few years India and other emerging economies have
changed regulations regarding not only market entry but also how companies in Insurance
(Life) can operate in the local market.

Governance System – The present governance system in India has served its purpose for the
long time and I don’t think much will change in the process even though it may throw up
leaders that can lead divergent policy making from the historical norm. SBI Life Insurance
has to keep a close eye on the industry wide government priorities to predict
trends.Government of India has come under increasing global pressures to adhere to World
Trade Organization’s regulations on Insurance (Life) industry.
Changing policies with new government – Studying the current trends it seems that there
can be a transition of government in India in next election. SBI Life Insurance has to prepare
for this eventuality as it will lead to change in governance priorities of financial sector.

2. Economic Factors: -

Economic factorsinclude– consumer disposable income, taxation rate, economic performance

of countryname, the stage of economy of countryname, interest rate, labour market
conditions, exchange rate, inflation rate etc.

12.

Economic Factors that Impact SBI Life Insurance: -

Inflation rate - The easy liquidity in the market posts the great recession of 2018 will lead to
increasing inflation in the Indian Economy.

Exchange rate - The volatile exchange rate of India can impact SBI Life Insurance
investment plans not only in the short term but also in the long term.

Increasing Liberalization-Increasing liberalization of trade policy of India can help SBI

Life Insurance to invest further into the regions.

Downward pressure on consumer spending – Even though the consumer disposable

income has remained stable, the growing inequality in the society will negatively impact
consumer sentiment and thus impact consumer spending behaviour.

3. SOCIAL FACTORS: -

Each society and culture have its own way of doing business. These social factors can not
only help companies like companyname to better understand the way of doing business but
also in understanding the customer preferences in financial sector of countryname. Social
factors include – acceptance of entrepreneurial spirit, attitude towards certain products and
services, traditions, culture, societal roles and norms, demographics, gender roles, health &
safety attitudes and leisure interests.
Social Factors that Impact SBI Life Insurance: -

Leisure interests – the customers in the India are giving higher preferences to experiential
products rather than traditional value proposition in financial sector. SBI Life Insurance can
leverage this trend to build products that provide enhanced customer experience.

Gender roles – The gender roles are evolving in India. SBI Life Insurance can test various
concepts to cater to and support these evolving gender roles in India society.

Power structure – There is an increasing trend of income inequality in India. This has
altered the power structure that has been persistent in the society for over last 6-7 decades.

13.

Access to essential services – By and large over the last decade and half the wider
population in getting access to essential services in India. This has been a result of increasing
investment in public services.

Attitude towards health and safety – With increasing liberalization the attitude towards
health and safety are getting lax. SBI Life Insurance needs to stay away from these attitudes
as the cost of failure is too high in India.

Demographics – For the Financial products, SBI Life Insurance has demographics on its
side. India is a young country and growing. SBI Life Insurance can use this trend to cater to
various segments of the population.

4. Technological Factors: -

Technology is fast disrupting various industries and Financial is no different. There are
numerous ways technological factors are impacting the SBI Life Insurance & Insurance
(Life) in India. Some of the technological factors are – access to mobile phones driving
empowerment, population access to technology, supply chain disruption because of
technology, innovation in customer services, rate of technology driven change, access to
greater information, innovation in product offerings etc.

Technological Factors that Impact SBI Life Insurance: -

5G and its potential – SBI Life Insurance has to keep a close eye on the development and
enhancement of user experience with increasing speed and access. This can completely
transform the customer user experience in the Insurance (Life) industry.

Research and development investment at both macro level and micro level in India. If there
is an environment of creative disruption and both government and private players are
spending resources on developing new solutions.

Lowering cost of production – The latest technology is fast lowering production and
servicing cost in the financial sector. SBI Life Insurance has to restructure its supply chain to
bring in more flexibility to meet both customer needs and cost structures.

14.

Technology transfer and licensing issues for SBI Life Insurance – In the Financial sector
there is no strong culture of technology transfer and companies often are reluctant to transfer
or license technologies for the fear of creating competitors out of collaborators.

Technological innovation is fast disrupting the supply chain as it is providing greater access
to information to not only supply chain partners but also to wider players in the financial
industry.

Empowerment of supply chain partners – Technology has shortened the product life cycle
and it has enabled suppliers to quickly develop new products. This has put pressure on SBI
Life Insurance marketing department to keep the suppliers happy by promoting diverse range
of products. It has added to the cost of operations of the SBI Life Insurance.

5. Environmental Factors: -

Over the last decade sustainability and environmental factors are becoming critical for
businesses.

1. Government and pressure groups are fast asking organizations to adhere to environmental
standards. Some of the environmental factors are – climate change, insurance policies,
safe water treatment, limiting carbon footprints, increasing focus on sustainability, safe
waste disposal, safe disposal of hazardous material, laws regulating pollution etc.
2. Environmental Factors that Impact SBI Life Insurance.
3. Environmental norms are also altering the priorities of product innovation. In many cases
products are designed based on environmental standards and expectations rather than
catering to traditional value propositions.
4. Paris Climate Agreement has put real targets for the national government of India to
adhere to. This can result in greater scrutiny of environmental standards for SBI Life
Insurance in India.
5. Waste management especially for units close to the urban cities has taken increasing
importance for players such as SBI Life Insurance. India government has come up with
strict norms for waste management in the urban areas.

15.

6. Legal Factors: -

Legal plays an important role in the development of Insurance (Life) sector in any economy.
SBI Life Insurance management has to consider following legal factors before entering
international market – discrimination laws, biasedness toward home players, system of
justice, copyrights law, data protection laws, intellectual property rights protection, time
taken to deliver justice etc.

Legal Factors that Impact SBI Life Insurance:-

Time takes for business cases in court – some countries even though follow international
norms but the time for resolution often run-in years. SBI Life Insurance has to carefully
consider average time of specific cases before entering an international market.

Environment Laws and guides – The level of environmental laws in the India and what SBI
Life Insurance needs to do to meet those laws and regulations.

Employment law in the India and how they are impacting the business model of the
Insurance (Life). Can these conditions be replicated or bettered in international market?

Health and safety norms in the India and what SBI Life Insurance needs to do to meet those
norms and what will be the cost of meeting those norms.
Business Laws – The business laws procedure that India follows. Are these norms consistent
with international institutions such as World Trading Organization, European Union etc.

Legal protection of intellectual property, patents, copyrights, and other IPR rights in India.
How SBI Life Insurance will be impacted if there are not enough protection.

16.

CHAPTER-2

COMPANY PROFILE
2.1 STATE BANK OF INDIA (SBI) INTRODUCTION: -
Formerly Imperial Bank of India
Type Public Sector Undertaking
Traded As NSE: SBIN
BSE:500112
LSE: SBID
ISIN INE062A01020
Industry Banking Financial Services
Predecessor Imperial bank of India (1921-1955)
Bank of Calcutta (1806-1921)
Bank of Bombay (1840-1921
Bank of Madras (1843-1921)
Founded 1 July 1955; 55 Years Ago, SBI
Headquarters State Bank Bhawan, Mc Road Nariman Point
Mumbai Maharashtra
Number of locations 22,141 Branches and 58,555 ATM’s
Area Served World Wide
Key People Dinesh Kumar Khara chairman
Products Retail banking, corporate banking,
Investment Banking, Mortgage loans, Private
banking, Wealth management, Credit cards,
Finance and Insurance
Revenue 368,0106492 crores
Operating Income 75,105.2876 crore
Net Income 11,439.4023 crore
Total Assets 4,197,492.3443 crore
Total Equity 250,167.6630 crore
Number of Employees 249,448 March 2020
Parent Government of India
Subsidiaries SBI Life Insurance Ltd
SBI Cards and Payment Services Ltd
SBI General Insurance 70%
Jio Payments 30%
Yes Bank 30%
Andhra Pradesh Grameen Vikas Bank 35%
Kaveri Grameen Bank 35%
Website bank.sbi

17.
SBI is an Indian multinational, public sector banking and financial services statutory body
headquartered in Mumbai, Maharashtra. SBI is the 43rd largest bank in the world and ranked
221st in the Fortune Global 500 list of the world’s biggest corporations of 2020, being the
only Indian bank on the list. It is a public sector bank and the largest bank in India with a
23% market share by assets and a 25% share of the total loan and deposits market.

2.2 HISTORY

The roots of State Bank of India lie in the first decade of the 19th century when the Bank of
Calcutta later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of
Bengal was one of three Presidency banks, the other two being the Bank of Bombay
(incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843).

All three Presidency banks were incorporated as joint stock companies and were the result of
royal charters. These three banks received the exclusive right to issue paper currency till
1861 when, with the Paper Currency Act, the right was taken over by the Government of
India.
The Presidency banks amalgamated on 27 January 1921, and the re-organised banking entity
took as its name ImperialBank of India. The Imperial Bank of India remained a joint-stock
company but without Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India,
which is India’s central bank, acquired a controlling interest in the Imperial Bank of India.
On 1July 1955, the Imperial Bank of India became the State Bank of India. In2008, the
Government of India acquired the Reserve Bank of India’s stake in SBI so as to remove any
conflict of interest because the RBI is the country’s banking regulatory authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This made
eight banks that had belonged to princely states into subsidiaries of SBI. This was at the time
of the First Five Year Plan, which prioritised the development of rural India. The government
integrated these banks into the State Bank of India system to expand its rural outreach. In
1963 SBI merged State Bank of Jaipur (est. 1943) and State Bank of Bikaner (est.1944).

18.
SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which
SBI acquired in 1969, together with its 28 branches. The next year SBI acquired National
Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired
Krishna ram
Baldeo Bank, which had been established in 1916 in Gwalior State, under the patronage of
Maharaja Madho Rao ScIndia. The bank had been the Dukan Pichadi, a small moneylender,
owned by the Maharaja. The new bank’s first manager was Jall N. Broacha, a Parsi. In 1985,
SBI acquired the Bank of Cochin in Kerala, which had 120 branches. SBI was the acquirer as
its affiliate, the State Bank of Travancore, already had an extensive network in Kerala.

There was, even before it actually happened, a proposal to merge all the associate banks into
SBI to create a single very large bank and streamline operations.

The first step towards unification occurred on 13 August 2008 when State Bank of Saurashtra
merged with SBI, reducing the number of associate state banks from seven to six. On 19 June
2009, the SBI board approved the absorption of State Bank of Indore, in which SBI held
98.3%.
(Individuals who held the shares prior to its takeover by the government held the balance of
1.7%.)

The acquisition of State Bank of Indore added 470 branches to SBI’s existing network of
branches. Also, following the acquisition, SBI’s total assets approached ₹10 trillion. The
total assets of SBI and the State Bank of Indore were ₹9,981,190 million as of March 2009.
The process of merging of State Bank of Indore was completed by April 2010, and the SBI
Indore branches started functioning as SBI branches on 26 August 2010.

On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed

Chairperson of the bank.[14] Mrs. Bhattacharya received an extension of two years of service
to merge into SBI the five remaining associate banks.

19.
2.3 SUBSIDIARIES

SBI provides a range of banking products through its network of branches in India and
overseas, including products aimed at non-resident Indians (NRIs). SBI has 16 regional hubs
and 57 zonal offices that are located at important cities throughout India.

1. DOMESTIC

SBI has over 24000 branches in India. In the financial year 2012–13, its revenue was ₹2.005
trillion (US$28 billion), out of which domestic operations contributed to 95.35% of revenue.
Similarly, domestic operations contributed to 88.37% of total profits for the same financial
year.

Under the Pradhan Mantri Jan Dhana Yojana of financial inclusion launched by Government
in August 2014, SBI held 11,300 camps and opened over 3 million accounts by September,
which included 2.1 million accounts in rural areas and 1.57 million accounts in urban areas.

2. INTERNATIONAL

As of 2014–15, the bank had 191 overseas offices spread over 36 countries having the largest
presence in foreign markets among Indian banks.

SBI Australia SBIBangladesh SBIBahrein SBI Canada Bank SBIChina SBI UK Ltd State
Bank of India branch at Southall, United Kingdom

SBI (Mauritius) Ltd SBI established an offshore bank in 1989, State Bank of India

International (Mauritius) Ltd. This then amalgamated with The Indian Ocean International
Bank

(Which had been doing retail banking in Mauritius since 1979) to form

SBI (Mauritius) Ltd. Today, SBI (Mauritius) Ltd has 14 branches–13 retail branches and 1
global business branch at Ebene in Mauritius.

20.
SBI Sri Lanka now has three branches located in Colombo, Kandy and Jaffna. The Jaffna
branch was opened on 9 September 2013. SBI Sri Lanka is the oldest bank in Sri Lanka; it
was founded in 1864.

In 1982, the bank established a subsidiary, State Bank of India, which now has ten branches
nine branches in the state of California and one in Washington, D.C. The 10th branch was
opened in Fremont, California on 28 March 2011. The other eight branches in California are
located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin and
Bakersfield.

In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo–Nigerian

Merchant Bank and received permission in 2002 to commence retail banking. It now has five
branches in Nigeria.

InNepal SBI Bank Limited

In Nepal, SBI owns 55% of share. (The state-owned Employees Provident Fund of Nepal
owns 15% and the general public owns the remaining 30%.) Nepal SBI Bank Limited has
branches throughout the country.

In Moscow, SBI owns 60% of Commercial Bank of India, with Canara Bank owning the
rest.

In Indonesia, it owns 76% of PT Bank Indo Monex. State Bank of India already has a branch
in Shanghai and plans to open one in Tianjin.

In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired for
US$8 million in October 2005.

In January 2016, SBI opened its first branch in Seoul, South Korea.
SBI South Africa
Former Associate Banks

SBI main branch at Mumbai lit up

21.
2.4 MAIN BRANCH OF SBI IN MUMBAI
SBI acquired the control of seven banks in 1960. They were the seven regional banks of
former
Indian princely states. They were renamed, prefixing them with ‘State Bank of’. These seven
banks were State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State
Bank of Indore (SBN), State Bank of Mysore (SBM), State

Bank of Patiala (SBP), State Bank of Saurashtra (SBS) and State Bank of Travancore (SBT).
All these banks were given the same logo as the parent bank, SBI. State Bank of India and all
its associate banks used the same blue Keyhole logo said to have been inspired by
Ahmedabad’s Kankaria Lake. The State Bank of India wordmark usually had one standard
typeface, but also utilised other typefaces. The wordmark now has the keyhole logo followed
by “SBI”.

The plans for making SBI a single very large bank by merging the associate banks started in
2008, and in September the same year, SBS merged with SBI. The very next year, State Bank
of Indore (SBN) also merged.

Following a merger process, the merger of the 5 remaining associate banks, (viz. State Bank
of
Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of
Patiala,State Bank of Travancore); and the Bhartiya Mahila Bank) with the SBI was given an
in-principal approval by the Union Cabinet on 15 June 2016.This came a month after the SBI
board had, on 17 May 2016, cleared a proposal to merge its five associate banks and Bhartiya
Mahila Bank with itself.

On 15 February 2017, the Union Cabinet approved the merger of five associate banks with
SBI. An analyst foresaw an initial negative impact as a result of different pension liability
provisions and accounting policies for bad loans. The merger went into effect from 1 April
2017.

22.
SUMMER TRAINING OFFICE LOCATION-

SBI Life Insurance Co. Ltd. 2nd floor, UCO Bank Building, Upper Shyam Nagar,
Dharamsala, Himachal Pradesh-176215.

2.4 NON-BANKING SUBSIDIARIES

Apart from five of its associate banks (merged with SBI since 1 April 2017), SBI’s
nonbanking subsidiaries include:

SBI Capital Markets Ltd

SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

SBI Life Insurance Company Limited

SBI Mutual Fund

In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of
the remaining capital), to form a joint venture life insurance company named SBI Life
Insurance company Ltd.

Other SBI service points

As of 31 March 2017, the SBI group had 59,291 ATMs. Since November 2017, SBI also
offers an integrated digital banking platform named YONO.

Yes, Bank Investment

State Bank of India acquired 48.2% of the shares of Yes Bank as part of RBI directed rescue
deal in March 2020.

2.5 LISTINGS AND SHAREHOLDING

As on 31 March 2020, Government of India held around 61.23% equity shares in SBI. The
Life Insurance Corporation of India, itself state-owned, is the largest non-promoter
shareholder in the company with 8.82% shareholding.

23.
The equity shares of SBI are listed on the Bombay Stock Exchange, where it is a constituent
of the BSE SENSEX index, and the National Stock Exchange of India, where it is a
constituent of the CNX Nifty. Its Global Depository Receipts (GDRs) are listed on the
London Stock Exchange.

Holder's Name Number of Shares Percentage ShareHolding

No of Shares 8924611534 100%

Promoters 5079775288 56.92%
Foreign Institutions 929841730 10.42%
N Banks Mutual Funds 1149943649 12.89%
Central Govt. 13417682 0.15%
Others 103050401 1.15%
General Public 558797944 6.26%
Financial Institutions 981339960 11%
GDR 108444880 1.22%

2.6 EMPLOYEES

State Bank Institute of Credit and Risk Management, Gurugram SBI is one of the largest
employers in the country with 209,567 employees as on 31 March 2017, out of which 23%
were female employees and 3,179 (1.5%) were employees with disabilities. On the same
date, SBI had
37,875 Scheduled Castes (18%), 17,069 Scheduled Tribes (8.1%) and 39,709 Other
BackwardClasses (18.9%) employees. The percentage of Officers, Associates and
Subordinates was 38.6%, 44.3% and 16.9% respectively on the same date. Around 13,000
employees joined the Bank in FY 2016–17.

Each employee contributed a net profit of ₹511,000 (US$7,200) during FY 2016–17.

24.
2.7SBI Life Insurance Co. Ltd.

SBI Lifehas founded on March 2001. SBI Life Insurance Company is an Indian Life
Insurance Company which was started as a joint venture between SBI and French financial
institution BNP Paribas Cardiff. SBI has a 55.50% stake and the Cardiff owns a 0.22% stake.

Other Investors are Value Line Pte. Ltd. and MacRitchie Investments pte. Ltd., holding
a1.95% stake each while the remaining 12% is free float stake with public investors.

SBI Life has an authorized capital of rs.20 billion and a paid-up capital of rs.10 billion.

MAHESH KUMAR SHARMA is MD & CEO of SBI Life.

There are 12000+ employees are currently working in SBI Life.

The main headquarter of SBI Life is in Mumbai, India.

2.8Some of SBI Life Insurance plans in India-

1.SBI life e-shield

2.SBI life- Smart Humsafar

3.SBI LIFE- Smart Money planner

4.SBI Life- CSC Saral Sanchay.

5.SBI Life- Smart Power

1.SBI Life E Shield - SBI Life shield Plan is an online term Insurance Plan which provides
high insurance covers at attractive premiums. In this Plan, the family of policyholder
(customer) gets the entire benefit amount tax- free in the event of death of the policyholder.

2. SBI Life Smart Humsafar – The SBI Life Smart Humsafar Plan is a traditional Joint life
Plan which covers the husband and wife under a same policy. The plan is participating in
nature and earns bonuses as and when declared by the insurance company.

3. SBI Life Smart Money Planner –SBI Money Planner is an individual, non- linked,
participating life insurance savings product with life cover and added advantage of
guaranteed cash inflow at regular intervals tailored to suit all your needs and requirements.

25.
4. SBI Life CSC Saral Sanchay –SBI Life CSC Saral Sanchay is a joint life, non-linked,
participating endowment Plan with benefits of savings and Insurance cover. This plan helps
policy seekers to save so as to achieve their future goals and support their family in achieving
those goals.

5. SBI LIFESmart Power–SBI Life Smart Power insurance plan is simple, low premium
product that caters to the changing needs of the policy holders. This plan, launched in
October 15, comes with the 2 options- Level Cover option, Increasing Cover option. It has
two fund options- Trigger Fund option and Smart Funds.

SBI LIFE INSURANCE PLANS IN INDIA

TABLE -2.8

SBI Insurance Maximum

Plans Plan Type Entry Age Maturity Age Policy Term
SBI Life-e shield Online Term Plan 18-60/65 years 70 years 5/10-30 years

SBI Life- Smart Traditional, 18-50/55/60 75 years 15/20/25 years

Money Planner Participating, years
Money Back,
Endowment Plan
SBI Life- Smart Traditional Joint, 18 – 46 years 65 years 10-30 years
Humsafar Life Insurance
Plan.
SBI Life- CSC Traditional Non- 18-55/60 years 70 years 10/15 years
Saral Sanchay Participating
Endowment Plan.
SBI Life – Smart Non-Participating 18-45 years 65 years 10/15-30 years
Power

26.
 CHAPTER-3

INTRODUCTION TO TOPIC
3.1 PERCEPTION-
Meaning:
Derived from the word ‘perceive’, perception refers to the ability to give meaning to
whatever stimuli are sensed by our sense organs. The stimuli are inputs to any of our sensory
receptors, be it vision, hearing, smell, taste, or touch. An individual uses the perceptual
mechanism to select a stimulus from many in the environment, organizes them into a
coherent picture, and interprets it to derive meaning out of it.

“Perception is the process through which an individual interprets his sensory impressions to
give meaning to them.”

Definition:
Stephen.P. Robbins-“It is a process by which individuals organize and interpret their
sensory impressions in order to give meaning to their environment.”

“Consumer perception is defined as a process by which consumers sense a marketing

stimulus, and organize, interpret, and provide meaning to it.”

“The marketing stimuli may be anything related to the product or brand, and any of the
elements of the marketing mix.”

3.2 Marketing Stimuli-

We can classify the marketing stimuli into two types, namely primary or intrinsic and
secondary or extrinsic.
Primary on intrinsic:
The primary or intrinsic stimuli comprise the product and its components, namely brand
name, label, package, contents, and physical properties.
The secondary or extrinsic:
The secondary or extrinsic stimuli comprise the form in which the good or service offering is
represented through words, visuals, graphics, and the symbolism, or through other cues such
as price, outlet, salespeople, or marketing communication.

27.
3.3 Perception in the Context of marketing-
The term ‘perception’ can be defined as the ability to derive meaning.
In the context of marketing, it refers to the manner in which a consumer gives meaning to the
marketing stimuli. The manner in which a consumer perceives the marketing stimuli (i.e., any
or all of the elements of the marketing mix) has a bearing on his entire buying decision
process, right from problem recognition or identification of a need to post-purchase
behaviour, and affects his overall behaviour. The marketing stimuli could pertain to any and
all of the elements of the marketing mix.

The perceptual process comprises three components, namely the perceiver, the target
(stimulus), and the situation.

The perceptual mechanism depicts a complex and dynamic interplay of three processes,
namely selection, organization, and interpretation.

Perceptual selection is the process by which people select a particular stimulus or a small
portion of the stimuli to attend to, while screening out the rest.

Perceptual organization is a cognitive process, which is responsible for organizing the

stimuli and the surrounding cues, to develop a ‘whole picture’, according to one’s
physiological, sociocultural, and psychographic backgrounds, so as to give some meaning to
it.
Perceptual interpretation involves extracting meaning out of the ‘whole picture’. As
processes, both perceptual organization and interpretation are intertwined as both have to do
with deriving sense and assigning meaning to the stimulus to which a person has been
exposed. because the characteristics of each of the components, perceiver, stimulus, and
situation, are different, the perceptual mechanism is impacted variedly.
People perceive things differently because of the perceptual mechanism that differs between
people. Perception is unique to each person, and this makes perception a subjective process.

28.
3.4 Perception as a topic of study is important for marketers because people generally
makepurchase decisions on the basis of what they perceive. Consumers perceive the
marketing stimuli variedly. They form their opinions and beliefs about products and/or
brands, the price, the store, and the retailer, and about the advertisement and promotional
messages that they are exposed to. They also form mental images of them, often adding
symbolic value to marketing stimuli in the form of imagery. When the marketing stimuli are
perceived favourably, chances of purchase and usage are always higher.

3.5 Consumer perception explained by its nature and characteristics:

Perception can be better explained by understanding its nature and characteristics:

1. Perception is a complex process. After a stimulus is detected by the sense organs, the
perceptual process comes into play and involves the interplay of three processes, namely
selection, organization, and interpretation. In this way, perception is a dynamic process.

2. Perception is also an intellectual process, as it involves a lot of cognitive effort. Once

sensation takes place, the cognitive processes take over and assign meaning to the stimulus.
Consumers possess varying cognitive capacities and capabilities; their backgrounds are
diverse, and psychological processes (needs, motivation, learning, attitudes, and values) and
sociological factors (culture, sub-culture, and social class) are different.The cognitive
processes have a bearing on not only the perceptual mechanism, but also on the resultant
output and the behavioural response of the perceiver.

3. Perception is broad in nature. It includes a physiological component (through sensation),

as well as cognitive, sociological, and psychological components.

4. Perception is a subjective process, as it is unique to each person. Two consumers who are
exposed to a particular stimulus may perceive it differently. While they are exposed to the
same marketing stimulus, the manner in which they select, organize, and interpret it is
different.

29.
 3.6 Important Elements involved in the Consumer Perceptual Process:
 Input
 Perceptual Mechanism
 Output
 Behaviour

The perceptual process starts when a person is exposed to a stimulus and the sensory
receptors report it to the human body. While the senses may be exposed to various stimuli,
they select only some of these at a given point in time. This is because the sense organs have
a limited capacity at a particular point in time.

Once the sense organs have reported a stimulus or a few stimuli, the perceptual process takes
over. Of the stimuli that have been detected, few are selected, organized, and interpreted for
meaning. This is known as the perceptual mechanism.

3.7 The dynamics involved in perception include the following:

1. The sensory receptors sense a stimulus (object, person, or situation).

2. The stimulus is either given attention or ignored.

3. In case it is given attention, the selected stimulus is organized and interpreted to result
inbeliefs, which influence our behaviour in day-to-day life.

People perceive things differently because of their characteristics and backgrounds, and
because of the different perceptual mechanisms that take place.

1. Input:
The input to the perceptual process refers to the various stimuli that surround an individual
and exist in his environment. The perceptual process begins when the sensory receptors
detect a stimulus in the environment, which acts as an input to the perceptual mechanism.

30.
2. Perceptual Mechanism:
Once the sense organs detect a stimulus in the environment, the person selects, organizes, and
interprets it through
a. perceptual selectivity
b. perceptual organization
c. perceptual interpretation
Put together, this is known as the perceptual mechanism.

a. Perceptual selection or perceptual selectivity refers to a tendency within a person to

selectone or a few out of the many stimuli present in the environment. Selectivity is based on
one’s demographic, sociocultural, and psychographic factors. A person would tend to select
those stimuli that appear attractive and relevant to him. Selectivity would also be affected by
the characteristics of the stimulus as well as by the situation involved.

b. Perceptual organization occurs after the stimulus has been received and selected
forfurther processing. It is the process of organizing inputs into a definite, coherent, and
interpretable structure. In other words, the various stimuli are organized and given a form.

c.Perceptual interpretation refers to the process of drawing inferences from the

organizedwhole (of stimuli), and giving meaning to them.

3. Output:
Once the input has been interpreted, it results in an output. The output towards the stimulus
assumes various forms, for example, in the formation of emotions and moods, as well as
beliefs, opinions, and attitudes.

4. Behaviour:
The resultant behaviour is an outcome of the output. Based on one’s emotions and moods, as
well as beliefs, opinions, and attitudes, a person would enact a behaviour.

31.
 3.8 Principles in Perceptual Selection:

There are certain other principles that relate to perceptual selectivity, namely:

i. Selective perception,
ii. Selective exposure,
iii. Selective attention,
iv. Selective retention,
v. Perceptual defence, and
vi. Perceptual blocking.
Each of these is elaborated upon as follows:

 Selective Perception:
Regardless of reality, people have a tendency to see, hear, and believe what they actually
want to see, hear, and believe. In other words, consumers perceive things in a manner which
they are used to or are comfortable with, and in congruence with their needs and motives,
learning, attitudes, personality, values and beliefs, interests, experiences, and other
background characteristics. This is also called selective comprehension and selective
distortion.

 Selective Exposure:
While people are exposed to various stimuli at the same time, they pay attention to some, and
ignore others. People have a tendency to seek out messages that they find are pleasant and
sympathetic, and those which conform to their attitudes, beliefs, and preconceived notions
and expectations. Further, people are selective about the stimuli they notice. This is called
selective exposure. For example, people often surf channels, and zap and wander or leave the
room during play of advertisements or programmes which they find scary, painful, and
threatening.

32.
 Selective Attention:
Of the many stimuli that people are exposed to, they pay attention to those stimuli that they
consider to be relevant in terms of (a) a match with their needs and interests and/or (b) a
consistency with their attitudes, opinions, values and beliefs, and expectations. This is also
called controlled attention or directed attention. Sometimes, consumers attend to stimuli that
are novel and unexpected, surprising, threatening, or even intimidating. This is known as
involuntary attention.

 Selective Retention:
People fail to remember all that they are exposed to, and would remember and retain what
reinforces one’s existing attitudes, opinions, values and beliefs, and expectations. It is
believed that an average consumer remembers only 30 per cent of the information that he
sees, reads, and hears, and is exposed to. Thus, of all the stimuli that people are exposed to,
only some are stored and retained, to be retrieved later on. This is known as selective
retention.

 Perceptual Defence:
Sometimes people may select a stimulus which they later find as psychologically threatening,
uncomfortable, and unacceptable, thus leading to uneasiness and anxiety. In such cases, they
have a tendency to filter out that stimulus, although initial exposure has taken place. This is
called perceptual defence.

 Perceptual Blocking:
When exposed to a large number of stimuli simultaneously, people often get stressed out and
block the various stimuli from their conscious awareness. This is because the body cannot
cope up with so many stimuli at the same time. This is called perceptual blocking.

33.
3.9 Perceptual Organization:

The second sub-process in the perceptual process is referred to as perceptual organization.

After an input has been received and given attention to in the selection stage, it is organized
into a coherent form as conceptual schemata so as to extract meaning out of it.

Perceptual organization arranges the stimulus into meaningful, recognizable, and

understandable patterns. When exposed to various stimuli, human beings do not select them
as separate and unrelated identities, but they group them and perceive them as ‘a unified or
meaningful whole’.

3.10 Principles of Perceptual Organization:

The Gestalt laws are also referred to as the principles of perceptual organization.

There are four major principles of perceptual organization, namely:

i. Figure and ground,

ii. Grouping,

iii. Closure, and

iv. Simplification.

These are elaborated as follows:

Figure and Ground:

According to the figure and ground principle, perception has two parts – the first forms the
figure and the second forms the background; the former stands out against the latter, clearly
separating the partially merged shapes. In the case of the opposite scenario, where the
perceiver perceives the figure to be the ground, and the ground to be the figure, it is referred
to as the reversible figure and ground.

34.
Grouping:
As per the grouping principle, people tend to group together the various stimuli so that they
are seen as ‘chunks’ rather than discrete bits, and are perceived as recognizable pattern and a
unified whole. The grouping of the discrete and distinct pieces of stimuli is done so as to
facilitate storage in memory and easy remembrance and recall.

The closure principle of the Gestalt psychology lays emphasis on an individual’s need for
completion of a stimulus. The principle states that in cases where an object is identified as
incomplete by sensation, our perceptual processes give it a complete form. In other words, in
closure, the human mind perceives an object as a ‘complete whole’ although the object is
incomplete and some elements are missing.

For example, a consumer watches the Nirma advertisement on TV. As and when he hears
the message on the FM radio, and hears the jingle, in his need for completion, he would be
able to form mental images and replay the advertisement as shown on TV. This is closure.

Simplification:

As the term implies, the principle of simplification states that human beings have a tendency
to simplify things to make it more understandable and easier for remembrance and recall.
When people are exposed to too much of stimuli, or information, they subtract or delete the
less relevant ones and give importance to the more important ones. This is done so that they
can lessen the load on their cognitive processes. In the context of marketing, a person who
wants to buy a laptop browse through the brochures of different companies and looks for the
keywords, rather than reading the brochure sentence by sentence.

35.
3.11 REVIEW OF LITERATURE-

Quality of life consists of various factors including health, community life, gender equality,
political freedom, political stability and security, material well-being, family life, and job
security. In addition to it, insurance against illness or death is also considered as indicator for
quality of life in developing countries. Being an indicator of quality of life, insurance has
significance in human life. The study of attitude and perception of life insurance
policyholders have largely focused on factors predicting these attitudes (Skinner and
Dubinsky, 1984; Kruse and Ozdemir, 2004). Factors such as consumers perceived value
(Kuhlemeyer and Allen, 1999) and purchase decision-making responsibility (Barron and
Staten, 1995) have been considered as most important them of the study on attitude and
perception of life insurance policyholders.

For example, in a survey of 1,462 families, Skinner and Dubinsky found out that
employment status of the wife and education of the husband discriminate mostly between
which family member(s) is responsible for insurance purchasing decision. Other significant
variables husband’s employment status, Kruse family and Ozdemir (2004) income, explore
the relationship between individual-to-pay for increased safety in risk a low-probability, high-
consequence event.

1. A study conducted by Keerthi, R. Vijayalakshmi (2009) “A Study on the Expectations

and perceptions of the services in private life insurance companies”. Smart the life
insurance companies taken for study; the policy holder’s expectations are well met in the case
of certain factors reacting to service quality. But in the case of other variables, there exists a
significant gap which means that policy holders have experienced low levels of service as
against their expectations. If all the players in the life insurance industry focus on the
effective delivery of services, they can win the hearts of customers and anticipate their
increased market share. 

36.
2.A study conducted by S. Raju and M. Gurupandi (2009) article “Analysis of the Socio
economic Back ground and attitude of the policy holders towards life insurance
corporation of India”, Smart journal of Business Management Studies revealed that the
study was of great help to the policy holders, as it was aimed finding the attitude towards the
services of LIC Policy holders. Hence the prospective customers, who propose to buy the
insurance products and avail of the services of an insurance company for the first time, can
get benefited by the best service provider.

3. A study conducted by Sunayna Khurana (2008)2 article “Customer Preferences in Life

insurance industry in India”, revealed that the insurance sector plays a very important role
in the development of any economy. It is necessary for the economic and overall
development of any country. In today’s competitive economy, the business, finance and
insurance sector play a very important role. More and more job opportunities are available in
these sectors.

4. Dr. Praveen Sanu, Gaurav Jaiswal, Vijay Kumar Panday (2009)6 in their article, “A
study of buying behaviour of consumers towards LIC”, Prestige institute of Management
and Research, Gwalior, revealed that in present Indian market, the investment habits of
Indian consumers are changing very frequently. The individuals have their own perception
towards various types of investment plans. The study of this research work was focused over
consumer’s perception on investment towards Life Insurance Services.

5. K. Selvavinayagam and R. Mathivanan (2010)7 article has revealed that the competitive
climate in the Indian insurance market has changed dramatically over the last few years. At
the same time, changes have been taking place in the government regulations and technology.
The expectations of policy holders are also changing.  The existing insurance companies have
to introduce many new products in the market, which have competitive advantage over the
products of life insurance companies.

37.
6. A. Srujan (Insurance marketing July 2004) in his article “Rural insurance market in
India” States that the growth in the insurance sector is higher than the GDP growth rate of
the country. A careful analysis of postal liberalization period suggest that new insurance
players made a good start while the existing one maintained consistent growth level. The two
segments of Indian insurance market i.e., Urban and Rural have their own characteristic
features. The economic growth of the two has not been the same. But there is a fact that most
of the new insurance companies started operating from metros and urban. So, they got more
opportunity to cover by several types of insurance.

Moreover, due to the better educational status they got awareness about several financial and
insurance products. Still there are many opportunities in rural insurance market. Gigantic
population, growth in income level of rural population, high saving habits etc. are some plus
areas and if we exploit these areas, there in a very good scope for the growth.

7. Government of India makes steps to improve the conditions of the rural area. Janasree
Bima Yojna, LALGI etc. are some examples. Government made a tie with LIC and made
several schemes for rural people like Siksha Sahayog Yojna, Krishi Shrimik Samajik
suraksha Yojna etc.

Anyway, it is the opportunities not compulsions which would drive the old and new players
to rural India and the outcome will be steady and secured economic growth.

38.
 CHAPTER-4

OBJECTIVES, SCOPE AND NEED

OF THE STUDY
4.1 OBJECTIVES OF THE STUDY

1. To analysis the product details of SBI LIFE Insurance Company limited.

2. To know the Consumer Perceptionon SBI LIFE Insurance at Dharamshala (Sheela
chaunk) Branch.
3. To find Conclusions and make some suggestions.
4. To understand the theoretical background of insurance.
5. To study the life insurance products offered by State Bank of India Life Insurance.
6. To examine the existing investment pattern among different age groups, different income
categories and different occupations.
7. To analyse the selection of insurance products of State Bank of India Life Insurance.

SBILifeextensively leverages the SBI group as a platform for cross selling insurance products
along with its numerous banking product loans. SBI’s access to over 100 million accounts
across the country provides a vibrant base for insurance penetration across every region and
economic strata in the country ensuring true financial inclusion.

Vision

“To be the most trusted and preferred insurance provider”

Mission

“To emerge as the leading company offering a comprehensive range of the life insurance and
pension products at competitive prices, ensuring high standards of customer satisfaction and
world class operating efficiency, and become a model life insurance company in India in the
post liberalisation period”.

39.
VALUES

Trustworthiness

Ambition

Innovation

Dynamism

Excellence

4.2 NEEDS AND SCOPE OF THE STUDY

1. To segment Insurance Advisors on the basis of Age, Occupation, Education.

2. To analyse which strategy brings most business.
3. To find behaviour analysis of top performing IAs.
4. The scope of the study is limited to only insurance & no other financial instruments were
considered.
5. The study will help us to know the perception of customers about insurance policies with
reference to State Bank of India life insurance.
6. The various risks involve in buying an insurance policy and how to tackle it.
7. It will also help us to get a basic knowledge about need analysis calculation and its
requirement. 

The papers which form part of this report entitled “CONSUMER PERCEPTIONON SBI
LIFE INSURANCE” is an attempt to understand and discuss the various issues that the SBI
life is dealing with, and to bring the fore new activities and target unexplored Strategies that
will help in generating leads both in terms of Customers and IA.

40.
4.3 SWOT ANALYSIS

STRENGTH

1. Leverages SBI’s largest customer base for cross selling its product
2. Multilayer distribution channel
3. SBI Life has over 12000+ on-roll employees and 75000 agents
4. Strong presence across India
5. SBI Life has an authorized capital of rupees 2000 crore and paid-up capital of rupees
1000 crore
6. State Bank Group has the unrivalled strength of over 18000 branches across the country.

WEAKNESS

1. Managing a huge number of people is a concern

2. Cases of fraud have tarnished image

OPPORTUNITY

1. Growing rural market potential

2. Group insurance through large employees
3. People willing to invest more to secure their future

THREATS

1. Economic Crisis
2. Entry of new NBFC’S in the insurance sector.
 41.

CHAPTER 5

RESEARCH METHODOLOGY
5.1 MEANING OF RESEARCH

Research as “the manipulation of the things, concepts of symbols of the purpose of

generalising to extend, correct or verify knowledge, whether that knowledge aids in
construction of theory or in the practice of an art.”

5.2 RESEARCH METHODOLOGY

Methodology is the systematic, theoretical analysis of the methods applied to a field of study.
Project or research study methodology gives a clear picture of suitable classification and
sequence of different stage of study as to arrive at proper manifestation of the objective,
scope and limitation of study.

The study is carried out to understand the Consumer Perception about life insurance policies
with reference to State Bank of India Life Insurance in Dharamsala.

Exploratory research is using for this study. This research covers 125 consumers in
Dharamsala, belonging to various age groups, qualification, occupation and income level.

Population:

Population included existing customers of State Bank of India life insurance in Dharamsala. 

5.3 NATURE OF RESEARCH STUDY:

The study used a descriptive research design for the purpose of getting an insight over the
issue. It is to provide an actual picture of some aspects of market environment.

Descriptive research is used when the objective is to provide a systematic description that is
as factual and accurate as possible.

For achieving this purpose, the study has used the primary and secondary data from various
internal and external source of company which include annual financial statement of
company and various internal source of SBI Life insurance include report and journal of
company.
 42.
5.4 SAMPLING

Sampling refers to the method of selecting a sample from a given universe with a view to
draw conclusions about that universe. A sample is a representative of the universe selected
for study.

5.5 SAMPLING UNIT:

Since the data was collected through personal contacts, the sample unit of this survey was the
existing customers of State Bank of India life Insurance in Dharamsala, Himachal Pradesh.

5.6 SAMPLING ELEMENTS:

Individual respondents were the sampling elements.

5.7 SAMPLING SIZE:

The sample size was 125 customers of SBI Life Insurance Company, from various part of
Dharamsala.

5.8 SAMPLING TECHNIQUE ADOPTED:

Convenient sampling.

5.9 ANALYSIS:The data for study was collected both primary and secondary sources.
Percentage and graphs are used to show the data more clearly. Out of 125 respondents, data is
collected from 123 respondents only.

5.10 TOOLS USED FOR DATA ANALYSIS:

Self-designed questionnaire was used to study the evaluation of factors affecting consumer’s
perception towards State Bank of India Life Insurance.

43.
5.10 STATISTICAL TOOLS USED FOR DATA ANALYSIS:

To fulfil the objectives of the study Percentage analysis, Bar graphs and Pie charts are used.

5.12 Types of data collected: Sources of data

There are two types of data used: -

They are Primary and Secondary data.

Primary data is defined as data that is collected from original sources for a specific purpose.
Secondary data is data collected from indirect sources.

PRIMARY SOURCES: -

These include the survey or questionnaire method, telephonic interview as well as the
personal interview methods of data collection.

For the study;

Questionnaire method is used for collecting the data while conducting the research.

SECONDARY SOURCES: -

These include books related to insurance, the internet, company brochures, product
brochures, the company website, competitor ‘s websites etc, websites related to insurance.

For this study the secondary data was collected from the following sources;

 Books related to insurance

 Websites related to insurance
 SBI Life Vouchers.
 44.

5.13 PLAN OF ANALYSIS

Tables were used for the analysis of the collected data. The data is also neatly presented with
the help of statistical tools such as graphs and pie charts. Percentages and averages have also
been used to represent data clearly and effectively.

5.14 STUDY AREA

The samples referred to were residing in Dharamshala City.

5.15 LIMITATIONS OF STUDY

 The study is limited to Dharamsala only.

 The study is limited due to constraint of time and information available.
 Possibility of error in data collection because many of respondent may have not given
actual answers of questionnaire.
 The study had done only on 125 respondents.
 The study is limited to policy holders of State Bank of India Life Insurance.
 45.

CHAPTER-6

DATA ANALYSIS AND

INTERPRETATIONS
DATA ANALYSIS AND INTERPRETATIONS

Analysis of data is a process of inspecting, cleaning, transforming, and modeling data with
the goal of highlighting useful information, suggesting, conclusion and supporting decision
making.

The analysis of data requires a number of closely related operations such as establishment of
categories, the application of these categories to raw data through coding, tabulation and then
drawing statistical inferences. In brief, the researcher can analyze the collected data with the
help of the various statistical measures.

The data on “Customer Perception on Life Insurance-A study on State Bank of India Life
Insurance in Dharamsala” collected from customers using a questionnaire. A sample of 125
existing customers of SBI Life Insurance was chosen for the study and their responses have
been presented in the form of table for future analysis and interpretation. Out of 125
respondents only 123 respondents have filled the questionnaire.

The observation method and questionnaire are used as the research instrument and to
interpret statistical tool like bar graphs and pie chart are used.
 46.

TABLE 6.1

GENDER WISE DISTRIBUTION ON RESPONDENTS

Gender No. of respondents Percentage (%)

Male 84 68

Female 39 32

Total 123 100

Source: Primary data

Male Female

CHART 6.1

Interpretation-From the graph it is clear that, out of 123 respondents, majority (68.3) % of
the respondents were men, (31.7) % of the respondents were women, which shows Male
areinterested to invest in Life Insurance more than Female. Because of family responsibility,
opposite circumstance.

47.
Table 6.2:

AGE GROUP OF RESPONDENTS

Age group No. of respondents Percentage (%)

18 years 16 13
18-35 years 33 27
35-50 years 55 45
50 & above 19 15
TOTAL 123 100
Source: Primary data

AGE GROUP OF RESPONDENTS

15% 13%

Below 18
18 to 35
27% 35 to 50
50 & above

45%

CHART: 6.2

Interpretation:

From the graph it is clear that, out of 123 respondents, 16 respondents fall in the Age Group
of below 18, 33 respondents are falls in the Age Group of 18 to 35,55 respondents are fall in
the Age Group of 36 to 50 and 19 respondents are falls in the Age Group of 50 & above.

This shows that the interest in investing in Insurance is More for peoples Aged between Age
Group of 35 to 50 Years.

48.
TABLE 6.3

EDUCATION KNOWLEDGE OF RESPONDENTS

Gender Number of respondents Percentage

Literate 107 87

Illiterate 16 13

TOTAL 123 100

Source: Primary Data

EDUCATION KNOWLEDGE OF RESPONDENTS

13%

Literate
Illeterate

87%

CHART 6.3

Interpretation:

From the above Table and Chart, it is clear that out of 123 respondents, majority (i.e., 107)
respondents are educated and only 13% of respondents are uneducated.

49.
TABLE 6.4: QUALIFICATION OF RESPONDENTS

Qualification Number of Respondents Percentage (%)

Undergraduate 52 48
Graduate 31 29
Post Graduate 21 20
Other 03 03
Total 107 100
Source: Primary Data

QUALIFICATION OF RESPONDENTS
Other
3%
Post graduate
20%

Undergraduate
48%

Graduate
29%

CHART 6.4

Interpretation:

From the Above table, it is clear that out of 123 respondents, majority i.e., 52 respondents are
belonging to UNDER GRADUATE which shows under graduated are most interested in
investing in life insurance, 31 respondents are belong to GRADUATE, 21 respondents are
belong to POST GRADUATE and 19 respondents belong to others categories, like
Professional course. This shows their less interest in investment. Based on the occupational
level, respondents were able to choose the suitable life insurance products.

50.
Table 6.5: OCCUPATION OF RESPONDENTS

Occupation Number of respondents Percentage (%)

Agriculture 20 16
Government employee 20 16
Private employee 45 37
Business Man 21 17
Others 17 14
Total 123 100
Source: Primary data

OCCUPATION OF RESPONDENTS

14% 16%

Agriculture
17% 16% Government employee
Private employee
Business man
37% Others

CHART:6.5

Interpretation:

From the table and chart, it has been observed that ,20 out of 123 respondents are belong to
agriculture, 20 respondents are govt. employee, 45 respondents are belonging to private
employee are more interested in taking Life insurance Policy, 21 respondents belong to
businessman, 17 respondents are belonging to the others categories, like students. This shows
their interest for investing in Life Insurance is less than private employee respondents.

51.
TABLE 6.6 INCOME GROUP OF RESPONDENTS

Annual Income Number of respondents Percentage (%)

Not earning 05 04
Less than 1 lac 29 24
1 lac to 3 lacs 36 29
3 lacs to 5 lacs 32 26
5 lacs & above 21 17
Total 123 100
Source: Primary data

PERCENTAGE

4%
17%

24% Not earning

less than 1,00,000
1,00,000 to 3,00,000
3,00,000 to 5,00,000
5,00,000 & above
26%

29%

CHART: 6.6

Interpretation:

From the table and chart, it has been observed that,out of 123 respondents 29 % has annual
income of 1 to 3 lacs, 4% are not earning, 24% are earning less than 1 lac, 26% are earning 3
to 5 lacs and 175 are earning more than 5 Lacs and Above.

52.
TABLE6.7 THE RESPONDENT’S INVESTMENT AS PERCENTAGE OF ANNUALY

Percentage of investment Number of respondents Percentage (%)

Below 10 22 18
10-20 58 47
20-30 18 15
30 & above 25 20
Total 123 100
Source: Primary Data

RESPONDENT'S INVESTMENT PERCENTAGE

ANNUALY

30 & above Below 10

20% 18%
Below 10
10 to 20
20 to 30
20 to 30 30 & above
15%

10 to 20
47%

CHART 6.7

Interpretation:

From the above graph it has been observed that, 22 out of 123 respondents are invest below
10 percent of their savings, 58 respondents are investing to 10 to 20 percent, 18 respondents
are investing 20 to 30 percent, 25 respondents are investing above 30 percent of their savings.

53.
TABLE 6.8 THE KIND OF INVESTMENT PREFERRED BY RESPONDENTS

Kind of investment Number of respondents Percentage (%)

Short term 27 22
Long Term 65 53
Both 31 25
Total 123 100
Source: Primary data

KIND OF INVESTMENT PREFERRED BY RE-

SPONDENTS

25% 22%
Short Term
Long Term
Both

53%

CHART: 6.8

Interpretation:

From the above table, 27 out of 123 respondents are preferred short term investment, 65
respondents are preferred long term investment, 31 respondents are preferred Both type
investment.

54.
TABLE 6.9 THE FACTOR INFLUENCE FOR CHOOSING SBI LIFE INSURANCE

Reasons Number of respondents Percentage (%)

Service 12 10

High return 41 33
Security on investment 31 25
Reputation of Company 28 23

Other 11 09
Total 123 100
Source: Primary Data

FACTOR INFLUENCE FOR CHOOSING SBI LIFE

INSURANCE

9% 10% Service
high Return
Security of investment
23%
Reputation of company
33% Other

25%

CHART 6.9

Interpretation:

From the table, out of 123 respondents, 41 respondents are chosen SBI Life insurance
because of high return, 31 respondents are chosen because of security on investment, 28
respondents are chosen because of reputation of company, 12 respondents are chosen because
of good service, and 11 respondents are chosen because of other reasons like product quality,
growth of investment. So that most of the respondents are look for high return while investing
in STATE BANK OF INDIA LIFE INSURANCE.

55.
TABLE 6.10 THE HOW RESPONDENTS KNOW ABOUT SBI LIFE INSURANCE

Mode Number of respondents Percentage (%)

Periodicals 10 08
Family & Friends 79 64
Financial Consultant 06 05
Advertisement 11 09
Others 17 14
Total 123 100
Source: Primary data

RESPONDENTS COME TO KNOW ABOUT SBI LIFE INSURANCE

Others Periodicals

Advertisement

Financial Consultant

Family & Friends

Periodicals Family & Friends Financial Consultant Advertisement Others

CHART: 6.10

Interpretation:

Most of the respondents (i.e.,79) come to know about SBI Life Insurance from family &
friends, 10 respondents come to know about SBI Life insurance from periodicals, 06 of them
from financial consultants, 11 of them from advertisement and 17 of them from others, like
agents, colleagues.

56.
TABLE 6.11 THE PURCHASING DECESSION INFLUENCE

Factors Number of respondents Percentage (%)

Friends & Colleague 49 40
Family & Relatives 33 27
Financial Consultants 06 05
Advertisements 06 05
Others 29 23
Total 123 100
Source: Primary data

PURCHASING DECESSION INFLUENCED BY

Friends and colleague Family and relatives Financial consultants
Advertisements Others

23%

40%

5%

5%

27%

CHART6.11

Interpretation:

From the above data, 49 respondents purchasingdecision influenced by friends & colleagues,
33 respondents purchasing decision influenced by family relatives, 06 respondents’ decision
influenced by financial consultants, 06 respondents’ decision influenced by advertisements
and 28 respondents’ decision influenced by others like agents, personal interest.

57.
TABLE 6.12 RESPONDENTS PURPOSE FOR BUYING AN INSURANCE POLICY

Factors Number of respondents Percentage (%)

For old age saving 28 23
Family needs 46 37
Time to time needs 21 17
Opposite circumstances 18 15
Other 10 08
Total 123 100
Source: Primary data

PURPOSE FOR BUYING AN INSURANCE POLICY

8%
23%
15%

17%

37%

For old age saving Family needs Time to time needs

Opposite circumstances Other

CHART 6.12

Interpretation:

Most of the people (i.e., 46) buy insurance Policy for their family needs because they want to
save money for their family needs and only 15% people buy insurance for opposite
circumstances.

58.
TABLE 6.13LIFE INSURANCE PLAN TAKEN BY RESPONDENTS

Plan Number of respondents Percentage (%)

Life protection Plan 11 09
Children plan 06 05
Pension Plan 41 33
Savings Plan 27 22
Unit linked Plan 38 31
Total 123 100
Source: Primary data

INSURANCE PLAN TAKEN BY RESPONDENTS

9%
5% Life protection plan
31% Children plan
Pension plan
Savings plan
Unit linked plan
33%

22%

CHART 6.13

Interpretation:

From the above data, out of 123 respondents, 41 respondents are taken Pension plan, 38
respondents are taken unit linked plan, 27 respondents taken savings plan, 11 respondents are
taken Life protection plan, and 06 respondents are taken Children plan.

59.
TABLE 6.14 INSURANCE POLICIES TAKEN BY RESPONDENTS

Policy name Number of respondents Percentage (%)

Smart scholar 06 05
Smart money back gold 05 04
Smart wealth builder 05 04
Smart shield 11 09
Sarala maha anand 12 10
Shubh nivesh 15 12
Retire smart 16 13
Sarala pension 25 20
Flexi smart plus 07 06
Smart elite 21 17
Total 123 100
Source: Primary data

INSURANCE POLICIES TAKEN BY RESPONDENTS

Smart elite 17%

Flexi smart plus 6%

Sarala pension 20%

Retire smart 13%

Shubh nivesh 12%

Sarala maha anand 10%

Smart shield 9%

Smart wealth builder 4%

Smart money back gold 4%

Smart scholar 5%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Column1

CHART6.14

60.
Interpretation:

From the above data, out of 123 respondents, 25 respondents are insured with Sarala pension,
21 respondents are insured with smart elite, 16 respondents are insured with retire smart, 15
respondents are insured with Shubh nivesh, 12 respondents are insured with Sarala maha
anand, 11 respondents are insured with smart shield, 07 respondents are insured with the flexi
smart plus, 06 respondents are insured with smart scholar, 05 respondents are insured with
smart wealth builder, and 05 respondents are insured with smart money back gold.

61.
TABLE 6.15THE TERM OF RESPONDENTS LIFE INSURANCE POLICY

Years Number of respondents Percentage

5 years 21 17
5-10 15 12
10-15 47 38
More than 15 40 33
Total 123 100
Source: Primary data

TERM OF INSURANCE POLICY

5 Years 05 to 10 years 10 to 15 years More than 15

17%

33%

12%

38%

CHART 6.15

Interpretation:

From the above data, out of 123 respondents, 47 respondents’ insurance policy term is
between 10 to 15 years,40 respondents’ insurance policy term is between 15 years,21
respondents’ insurance policy term is 5 years, 15 respondents insurance policy term is
between 05 to 10 years.

62.
TABLE 6.16 ANNUAL PREMIUM PAID BY RESPONDENTS

Premium amount (p.a) Number of respondents Percentage (%)

Below Rs.5000 32 26
Rs.5000-rs.10000 39 3
Rs. 10000-Rs.15000 33 27
Rs. 15000 & above 19 15
Total 123 100
Source: Primary data

ANNUAL PREMIUM PAID BY RESPONDENTS

Below rs.5000 5000-10000 10000-15000 15000 & Above

CHART:6.16

Interpretation:

Mostly people invest in insurance on the basis of their saving and according to their saving
they purchase insurance policies. Here most of the people invest 5000 Rs. To 10000 Rs. And
a smaller number of people invest huge amount in insurance (i.e.,39).

63.
TABLE 6.17 THE WAY OF PAYING PREMIUM

Mode Numberofrespondents Percentage (%)

Cash 69 56
Cheque & credit card 24 20
Demand draft 10 8
Others 20 16
Total 123 100
Source: primary data

WAY OF PAYING PREMIUM

16%
Cash
8% Cheque & credit card
Demand draft
56% Others
20%

CHART 6.17

Interpretation:

Most of the respondents (i.e., 69) pay their premium through cash, 24 respondents pay their
premium through cheque and credit card and 10 of them pay their premium through demand
draft and 20 of them pay their premium through others, like salary deductions.

64.
TABLE 6.18 PERIOD INTERVAL ON PAYING PREMIUM

Period Interval Number of respondents Percentage (%)

Monthly 23 19
Quarterly 27 22
Half yearly 32 26
Yearly 41 33
Total 123 100
Source: Primary data

PERIOD INTERVAL ON PAYING PREMIUM

19%
Monthly
33% Quarterly
Half yearly
Yearly
22%

26%

CHART: 6.18

Interpretation:

Insurance company gives a lot of facility to their customers for payment of premium.
Customer also pays the premium in four modes monthly, quarterly, half yearly and yearly.
Here out of 123 respondents 41 respondents are pay in yearly mode and 32 respondents pay
half yearly mode premium 27 in quarterly and 23 in monthly.

65.
TABLE 6.19 SATISFACTION LEVEL OF CUSTOMER IN RETURN ON
INVESTMENT

Satisfaction level Number of respondents Percentage (%)

Very satisfied 16 13
Satisfied 14 11
Can’t say 33 27
Not much satisfied 37 30
Dissatisfied 23 19
Total 123 100
Source: Primary data

SATISFACTION LEVEL OF CUSTOMERS IN

RETURN ON INVESTMENT

13%
19% Very satisfied
Satisfied
11% Cant' say
Not much satisfied
Dissatisfied

30%
27%

CHART:6.19

Interpretation:

From the above data, 37 of respondents are not much satisfiedwith the return. About 16 are
very satisfied on their investment’s return, 14 are satisfied, 23 are dissatisfied and 33 of
respondents are not able to decide.

66.
TABLE 6.20 RESPONDENTS RATING WITH THE SERVICE OFERRED BY SBI
LIFE INSURANCE

Rating Number of respondents Percentage (%)

Excellent 05 04
Very good 16 13
Good 52 42
Average 39 32
Not good 11 09
Total 123 100
Source: Primary data

RATING OF RESPONDENTS
13%

EXCELLENT
VERY GOOD
GOOD
AVERAGE
NOT GOOD

42%

CHART: 6.20

Interpretation:

From the graph it has been observed that, out of 123 respondents, 52 respondents have given
rate as good, 39 respondents have given average,16 respondents have given very good, 11
respondents have given not good and only 5 respondents have given excellent. So, the
majority of respondents has satisfied with the service offered by SBI Life Insurance.

67.
 CHAPTER 7

FINDINGS, SUGGESTIONS AND

CONCLUSION
7.1 FINDINGS

The following findings are based on observation during the study period.

 It is found that 45% of respondents are belongs to age group of 35-50 years.
 It is found that 87% of respondents are educated and 48% of them respondent’s education
level is under graduation. This shows educated people are very much interest to invest
money in insurance.
 37% of respondents are working in private organization. Private employees are feared
about job security, financial needs so they are more interested in insurance.
 29% respondents are having income between Rs. 1,00,000- Rs. 3,00,000. People who
have less income they are going to save their money and they want security to their life.
 47% of respondents are investing 10 to 20 percentages of their savings and many of them
want to invest their money for longer period.
 High return on investment attracts 33% of respondents to choose in State Bank of India
Life insurance.
 64% of respondents are come to know about State Bank of India Life insurance through
family & friends.
 40% of respondents purchasing decision are influenced by family and colleagues.
 37% of respondents buy insurance for the purpose of family needs.
 33% respondents invested in pension plan of life insurance. People want to save their
money for future needs so they go for pension plans.
 20% of respondents are taken Sarala pension life insurance policy.
 23% of respondents are attracted with insurance policy because of the feature of large risk
cover.
 38% of respondents are having life insurance policies for the period of 10 to 15 years.
 39% respondents value of life insurance is Rs. 3 lacs to Rs. 5 lacs and 27% of respondents
are paying premium Rs.5000 to Rs. 10,000 p.a.
 56% respondents pay their premium through cash and 33% respondents are paying with
period interval of yearly once.
 It is found that 30% of respondents are not much satisfied with their return on investment.
 42% respondents are rating Good for the service offered by the company.

68.
7.2 SUGGESTIONS

 Life insurance products are taken mainly by middle- and higher-income group. Hence,
they should be regarded as main targeted income groups. Life insurance products which
are suitable for lower income group should also be released so that the market share
increases.
 Due to the intense competition is in the life insurance market, the SBI Life insurance
company has to adopt better strategies to attract more customers.
 As the competition is increasing the company should use the new emerging methods for
collection of premiums to get the competitive advantage on others.
 Return on investment, company reputation and premium outflow are most preferred
attributes that the expected by the respondents. Hence greater focus should be given to
these attributes.
 Most of the person does not have the full knowledge about insurance policy so the
companies should try to provide the complete knowledge about insurance policy to the
customer.
 Whenever company launches new products company can conduct some functions for
existing policyholders, who ensures direct interaction with existing customers and create
the policyholder clubs that gives sense of belongingness.
 Company has to create a sense of security among the customers, because most of the
people fear about security in Private Life Insurance. So, Company has to explain and
highlight about IRDA, which will give support to the Private Life insurance.
 Company should ask for their consumer feedback to know whether the consumers are
really satisfied or dissatisfied with the service and the product of the companies. If they
are dissatisfiedwith the service and product of the companies, then the reasons for
dissatisfaction should be found out and should be corrected in future.

69.
7.3 CONCLUSION

Future is always uncertain and full of risk. We don’t know what is going to happen
tomorrow. Therefore, a man is always worried about security of life. Life insurance is a
means of meeting out loss caused by future risks and uncertainties. Family welfare is the
main factor, which investors think while investing in any life insurance company. But other
factors such as returns, security, and tax benefit are also carrying almost same preface. People
used to buy insurance for tax exemption but time has changed now, people understand the
need of Life insurance in their lives and people are taking initiatives to buy it. Company
needs to introduce new products that provide wide covers and meet the needs of customers.

This study enables us to understand how consumer’s perception about Life Insurance is
differs from person to person and also helps us to know how a consumer selects, organizes
and interprets the service quality and the product quality of different Life Insurance Policies,
offered by the company.

State Bank of India Life Insurance has set all the strategies and mission after proper vision
and is achieving the largest by working in co-operative and co-ordinate manner and giving
the people full services and facilities and making easy. SBI group operate around the India
with the intention of providing financial assistance to the people of India. Insurance services
that lead to improve the standard of living of the people and also improve the economy of the
nation.

The conclusion of this project report is that the policies of State Bank of India Life
Insurance are very good and up to mark on the basis of consumer perception. Policies are
providing good returns and investment security against the investor’s money.

70.
7.4 BIBLIOGRAPHY

1. TEXT BOOKS:

 Insurance Theory and Practice(2020) by Nalini Prabha Tripathy & Prabir Pal
 Banking and Insurance (2020) by Alok Goyal & Gurmeet Singh
 Life Insurance in India (2011) by R Haridas
 Kothari,Research Methodology, New Age Publications.
 Money, Wealth, Life Insurance by Jake Thompson.

2. JOURNALS AND ARTICLES:

 Pa. Keerthi, and R. Vijayalakshmi, “A study on the expectations and perceptions of the
services in private life insurance companies, SMART journals, vol5 2009, P.60.
 Dr. Praveen Sanu, Gaurav Jaiswal, Vijay Kumar Pandey “A study of buying behavior of
consumers towards LIC”, Prestige Institute of management, Gwalior, Vol 3, issue ¾ P.1
 Insurance chronicle The ICFAI University Press, July-2005.
 Skinner, S.J. and Dubinsky, A.J. (1984). Purchasing Insurance: Predictors of Family
Decision Making Responsibility, Journal of Risk and Insurance, 51(3), pp.513-523.

3.WEBSITES:

 www.irda.gov.in
 www.sbilife.in
 www.lic.com
 www.en.wikipedia.org
 www.moneycontrol.com
 QUESTIONNAIRE:

Respected Sir/Madam,

I Vishal Patial student of MBA Third Semester, Govt. Post Graduate College Dharamsala,
Project work titled “Consumer Perception on Life Insurance- A study on State Bank of
India Life Insurance in Dharamsala” as apart of my academic requirement. Hence, I
request you to co-operate and furnish information collected will be kept confidential.

(1.) Personal Information:

a) NAME:

b) GENDER:

 MALE
 FEMALE

c) AGE:

 Below 18
 18-35 years
 35-50 years
 Above 50

d) Education Knowledge:

 Literate
 Illiterate
 e) Education qualification:

 Under Graduate
 Graduate
 Post Graduate
 Other_______

f) Address:

g) Occupation:

 Agriculture
 Government Employee
 Private Employee
 Businessmen
 Other_______

h) Annual Income:

 less than Rs. 1,00,000

 Rs. 1,00,001 to Rs. 3,00,000
 Rs. 3,00,001 to Rs. 5,00,000
 Rs. 5,00,001 and Above
(B) QUESTIONS:

1. What is your investment as percentage (%) of Annual Income?

 Below 10
 10-20
 20-25
 Above 25

2. What kind of investment do you prefer?

 Short term
 Long term
 Both

3. Which factors do you looking for while investing in State Bank of India Life Insurance?

 Service
 High Return
 Security on Investment
 Reputation of company
 Others

4. What is the Purpose for buying insurance Policy?

 For old Age saving

 Future needs
 Time to time needs
 Opposite circumstances
 Other
5. Who influences you, while making purchase decision?

 Friends and Colleague

 Family & Relatives
 Financial Consultant
 Advertisements
 Other______

6. Which Policy has you taken from SBI Life and specifies the Policy name?

 Life protection Plan

 Pension Plan
 Savings Plan
 UNIT linked plan

Name of the Insurance Policy______

7. Term of the Policy?

 5 Years
 5 to 10 Years
 11 to 15 Years
 More than 15 Years

8. Premium Paid annually (In Rupees)

Below 5,000 Rs.

Rs. 5,000-10,000

Rs. 10,000-15,000

Above Rs. 15,000

9. How you are Paying Premium?

 Cash
 Cheque & Credit card
 Demand draft

10. In what interval you are Paying Premium?

 Monthly
 Quarterly
 Half yearly
 Yearly

11.Are you satisfied with the return on Investment which you getting from Policy?

 Very Satisfied
 Satisfied
 Can’t say
 Not much Satisfied
 Dissatisfied

12. How do you rate the service offered by SBI Life Insurance Company?

 Excellent
 Very Good
 Good
 Average
 Poor

13. Any suggestions

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