University of Mumbai

A STUDY ON CUSTOMER PERCEPTION TOWARDS INSURANCE

SECTOR

A Project Submitted to University of Mumbai for partial completion of the degree of

Bachelor of Accounting & Finance

Under the Faculty of Commerce

By

SUREKHA SURESH YADAV

Roll NO-52

Under the Guidance of

Prof. ROSHNI UDHWANI

ANNALEELA COLLEGE OF COMMERCE AND ECONOMICS

(Affiliated to University of Mumbai)

Kurla (E).

MAHARASHTRA

2022-2023

1
 A STUDY ON CUSTOMER PERCEPTION TOWARDS INSURANCE SECTOR

A Project Submitted to University of Mumbai for partial completion of the degree of

Bachelor of Accounting & Finance

Under the Faculty of Commerce

By

SUREKHA SURESH YADAV

Roll NO-52

Under the Guidance

of

Prof. ROSHNI UDHWANI

ANNALEELA COLLEGE OF COMMERCE AND ECONOMICS

(Affiliated to University of Mumbai)

Kurla (E).

MAHARASHTRA

2022-2023

2
 ANNALEELA COLLEGE OF COMMERCE AND ECONOMICS

(Affiliated to University of Mumbai)

KURLA, MUMBAI,400070

2022-2023

Certificate

This is to certify that

Miss. SUREKHA SURESHA YADAV of B.com (Accountancy & Finance) has worked and
dulycompleted the Project Work titled “A study on customer perception towards insurance
sector”“during the academic year 2022-23 under the guidance of Prof. ROSHNI UDHWANI
submittedon 17th March to this college in fulfillment of the curriculum of BACHELOR OF
COMMERCE(Accounting & Finance) UNIVERSITY OF MUMBAI

This is a bona fide Project Work and the information present is True and original to the
best of our knowledge and belief

INTERNAL EXAMINAR EXTERNAL EXAMINAR

COORDINATOR PRINCIPAL

3
 DECLERATION

I the undersigned Miss. Surekha Suresh Yadav, declare that the work
embodied in this project work titled “A study on customer perception towards
insurancesector” forms my own contribution to the research work carried out
under the guidance of Prof. ROSHNI UDHWANI is a result of my own
research work hasnot been previously submitted to any other University for any
other Degree/ Diploma to this or any other University.

Wherever reference has been made to previous works of others, it has been
clearly indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained
and presented in accordance with academic rules and ethical conduct.

Surekha Suresh Yadav

4
 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the
depth is so numerous.
I would like to acknowledge the following as being idealistic channels and
fresh dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to
do this project.
I would like to thank my Principal, Dr. RAJENDRA PATIL for providing
the necessary facilities required for completion of this project.
I take this opportunity to thank our Coordinator Prof. ROSHNI
UDHWANI, for her moral support and guidance.
I would also like to express my sincere gratitude towards my project guide
Prof. ROSHNI UDHWANI whose guidance and care made the project
successful.
I would like to thank my College Library, for having provided various
reference books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported
me throughout my project.

5
 INDEX

Chapter. Title name Page no

no

1 INTRODUCTION
1.1 What is insurance
1.2 Semantics
1.3 History of Insurance Industry in India
7-30
1.4 Types of Insurance
1.5 The Importance of Insurance
1.6 Insurance Reforms
1.7 Contribution of the Insurance Sector to Indian Economy
1.8 Distribution Channels in Insurance Sector
1.9 Factors affecting life Insurance Policy

2 RESEARCH METHODOLOGY

2.1 Objectives of the Study

2.2 Scope of the Study
31-33
2.3 Need of the Study
2.4 Sampling Size

3 REVIEW OF LITERATURE 34-40

4 HYPOTHESIS 41

5 DATAANALYSIS 42-53

6 SESSIONS, CONCLUSION &BIBLOGRAPHY 54-58

6
 CHAPTER 1
INTRODUCTION: -
Insurance is defined as the simple mechanism of some people who are exposed
to the same level of risk of suffering destruction damage to their properties, that are
likely to be caused by perils like accidents, fire, floods, earthquakes, etc. Coming
together and agreeing to share the loss sustained any one of the members; that is, the
loss of one or more members is spread among all. Risk is uncertainty of a finance loss
. It should not be confused with peril which is the probable number of losses out of a
given number of exposures. It should not be confused with peril which is defined as
the causes losses or with hazard which is a condition that may increase the changes of
loss
. Finally, risk must not be confused with loss itself which is the unintentional decline
in or disappearance of value arising from a contingency. Wherever there is
uncertainty with respect to a probable loss there is risk.

Every risk involves the loss of one kind or the other. The function of insurance
is to spread the loss over a large number of people who have agreed to cooperate with
each other at the time of loss. The risk cannot be aviated but loss occurring due to a
certain risk can be distribute among payable to a person. They haveagreed to share
the loss because the changes of losses same level time and among playbill person are
not know. Any of them may suffer loss due to a given risk, so, the rest of the people
who have agreed will share the loss. The larger the number of primum which is
calculated on the probability of loss. In olden time the contribution by the person was
made at time of loss. However, now that this activity is organized, the insurance
companies collect the contribution in the form of premium even at the stage of
agreeing to share the loss. The insurance is also defined as a social as device to
accumulate funds to meet the uncertain losses arising through a certain risk to a
person insured against the risk.

Service organizations facing tough competition in the global market

because of globalization and liberalization of the Indian economy. Hence, it
is helpful for service organizations to know the customer service level

7
perceptions in

8
order to overcome the competitors and attract and retain the customers.
Because of the globalization and liberalization of Indian

economy, Indian service sector has been opened for

multinationalcompanies. Services are defined as the activities, which are
involved in producing intangible products as education, entertainment, food
and lodging, transportation, insurance, trade, government, financial, real,
medical consultancy, repair and maintenance like occupation. Customer
service is an integral part of Life insurance organization. It is necessary to
identify the key success factors in life insurance industry, in terms of
customer satisfaction soaps to survive in intense competition and increase
the market share.

Insurance in India is usually understood as a measure to save the tax for an

individual. It has not been considered as a medium for investment for a long
time. In Indian mentality, savings can be done only in banks in terms of fixed
deposits and other investment facilities available to them. Some people also
like to invest in gold. After independence, the LIC was nationalized in 1956,
and then the general insurance business was nationalized in 1972. LIC of
India has monopoly over the Indian life insurance sector. But after the entry
of privet insurance players having alliance with foreign insurance experts,
Indian insurance market turned into a highly competitive market. The
Insurance Regulatory and Development Authority Act 1999 (IRDA Act) was
passed by parliament of India and in the year president of India gave his
consent to the act.

9
Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to

spread the message of life insurance in the country and mobilize people’s savings for
nation-building activities. LIC with its central office in Mumbai and seven zone
offices at Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur and Bhopal,
operates through 100 divisional offices in important cities and 2,048 branch offices.
LIC has 5.59 lakh active agents spread over the country. The Corporation also
transacts business abroad and` has offices in Fiji, Mauritius and United Kingdom.
LIC is associated with joint ventures abroad in the field of insurance, namely, Ken-
India Assurance Company Limited, Nairobi; United Oriental Assurance Company
Limited, Kuala Lumpur; and Life Insurance Corporation (International), E.C.
Bahrain. It has also entered into an agreement with the Sun Life (UK) for marketing
unit linked life insurance and pension policies in U.K. In 1995-96, LIC had a total
income from premium and investments of $ 5 Billion while GIC recorded a net
premium of $ 1.3 Billion. During the last 15 years, LIC's income grew at a healthy
average of 10 per cent as against the industry's 6.7 per cent growth in the rest of
Asia(3.4 per cent in Europe, 1.4 per cent in the US). LIC has even provided
insurance cover to five million people living below the poverty line, with 50 per cent
subsidy inthe premium rates. LIC's claims settlement ratio at 95 per cent and GIC's
at 74 per cent are higher than that of the global average of 40 per cent. Compounded
annual growth rate for Life insurance business has been 19.22 per cent per annum.

Departmental details in LIC

➢ Sales Department

This department is mainly concerned with the sale of new policies and is headed by
Assistant Branch Manager Sales (ABMS). The internal agent of LIC is the
Development Officer who has the job of communicating and training the Free-
Lancing agents. It is the development officer who continuously encourages the
agents
10
to get new business and the income, performance and commission through policy
selling comes under the jurisdiction of this department.

➢ New Business Department

This department performance the very important function of underwriting new

policies which are sent to it for authentication. It checks that all the information
provided by the customer is true and the proposal form and all other details and
proofs are legal. After scrutinizing the new policy, it issues the first premium
receipts (FPR) and then issues the policy bond. If anything is found insufficient
the proposal form is sent back to the sales department to correct the mistake and
again submit it.

➢ Policy Service Department

After the policy bond is issued, the case is passed on to this department to look after
sales service of the policy. It takes care of the premium dates and if the policy is
lapsed then its revival is done by this department. Also, if any loan is required by
the customer against his/her policy then its approval has to be given from the policy
service department only.

➢ Accounts Department

It is responsible for processing of all the cheques and loans which come to it.
The details regarding financial aspects are covered under this department

➢ Claims Department

All types of claims i.e., survival benefit claim, maturity claim and death claim
are settled by this department. In case of death claim if death occurs after three
years, then no investigation is involved in the settlement process and if it occurs
before three years then proper investigation is done and the claim is considered
to be an early claim case.

11
➢ Micro Department

This department has all important functions of coordinating with each

department. Each day’s business is collected and its four copies are made and one
copy is sent to the divisional office, second is submitted to the branch manager,
and third remains with the in charge of micro department and fourth in the branch
office.

➢ Office Service Department

This department takes care of all miscellaneous tasks of office and dispatch of
cheques, loans etc. come under the responsibility of this department.

Products and Services in LIC

LIC has eight zonal offices and 105 divisional offices located in different parts of
India. It compromises of 2,048 branches and employs over 10, 02, 149 agents for
soliciting life insurance business from public. LIC has extended its activities in 12
countries from outside India, primarily to cater to the insurance needs of non-
resident Indians. LIC aims at strengthening its relationship with its vast customer’s
base by providing value-added service such as credit cards and offering premium
payment facility to the policyholders. It is the largest insurance player in India and
its objective is to channelize its funds for the benefit of the community at large. It
enjoys a near monopoly power in the solicitation and sale of life insurance policies
in India. The corporation has major business houses as clients, under the group
business of India. It has more than 1, 18,000 corporate clients covering more than
3, 15, 00,000 members. Apart from the corporate group insurance business the
pension & group schemes are responsible for ‘Ramadi Bema Yojana’, a social
security schemes for the rural landless households under the aegis of the
Government of India. LIC has been investing a major portion of its funds in
socially-oriented sectors with a view to reach every insurable person in the country
and provide adequate financial cover against death at a reasonable cost. Another
12
goal is to mobilize people’s savings adequately. LIC has recently tied up with

13
Policybazaar.com an insurance portal that enables the consumers to get detailed
information on the policy. It is one of the leading online nonlife and life
insurance aggregator to sell its policy Jeevan Aisha on the internet.

General Insurance Corporation of India (GIC)

The general insurance industry in India was nationalized and a government

company known as General Insurance Corporation of India (GIC) was formed by
the Central Government in November 1972. With effect from 1 January 1973 the
erstwhile 107 Indian and foreign insurers which were operating in the country prior
to nationalization, were grouped into four operating companies, namely, (I)
National Insurance Company Limited; (ii) New India Assurance Company
Limited;
(iii) Oriental Insurance Company Limited; and (iv) United India Insurance
Company Limited. (However, with effect fromDec'2000, these subsidiaries have
been de-linked from the parent company and made as independent insurance
companies). All the above four subsidiaries of GIC operate all over the country
competing with one another and underwriting various classes of general insurance
business except for aviation insurance of national airlines and crop insurance which
is handled by the GIC. Besides the domestic market, the industry is presently
operating in 17 countries directly through branches or agencies and in14 countries
through subsidiary and associate companies. General Insurance Co. Ltd (GIC) is
the largest reinsurance company in India in terms of gross premiums accepted in
FY17 and accounted for ~60% of the premiums ceded by Indian insurers to
reinsurers during the year, according to CRISIL Research. GIC is also an
international reinsurer and underwrote business from 161 countries as on 30
Jun’17. According to CRISIL Research, the company is ranked 12th largest global
reinsurer in CY16 and the 3rd largest Asian reinsurer in CY15, in terms of gross
premiums accepted. GIC provides reinsurance across many key business lines
including fire (property), marine, motor, engineering, agriculture, aviation/space,
health, liability, credit and financial and life insurance. GIC has developed its
overseas business through their home office in Mumbai, branch offices in London,

14
Dubai and Kuala Lumpur, a representative office in Moscow, a subsidiary in the
United Kingdom

15
that is a member of Lloyd’s of London and a subsidiary in South Africa. GIC has
been rated “A-” (Excellent) with a stable outlook by AM Best for 10 consecutive
years. In addition, GIC has paid successive annual dividends in the past 5 fiscal
years, aggregating ₹ 3,320 crore. The gross premiums on a restated consolidated
basis from the International Business stood at ₹ 10,300 crore for FY17, ₹ 8,340
crore for FY16 and ₹ 6,609 crore for FY15, witnessing a CAGR of 24.84% from
FY15-17. In FY17, FY16 and FY15, the gross premiums for risks outside of
India were 30.5%, 45.0% and 43.3%, respectively, of the total gross premiums.

The gross premiums on a consolidated restated basis from the international business
for Q1FY18 stood at ₹ 3,005 crore, and the gross premiums for risks outside of
India were 17.34% of the total gross premiums.

Business Segments

➢ Fire (Property) Reinsurance:

Includes the reinsurance of risks to non-marine property from damage due to fire,
lightning, explosion, implosion, landslides, subsidence, water damage and other
property related risks. In addition, GIC writes reinsurance for catastrophic events
such as earthquakes, tsunamis, storms, floods, cyclones, hurricanes, and other acts
of nature. In FY17, 74.5% of their gross premiums on a restated consolidated
basis in the fire (property) segment were from direct insurers and 25.5% were
from reinsurers.

➢ Marine Reinsurance:

The marine segment includes the reinsurance of risks relating to marine hull,
marine cargo and upstream oil and gas activities. In FY17, 82.9% of the gross
premiums on a restated consolidated basis in their marine segment were from
direct insurers and 17.1% were from reinsurers.

16
➢ Miscellaneous Reinsurance:

This includes motor reinsurance, engineering reinsurance, agriculture reinsurance,

aviation reinsurance, health reinsurance, liability reinsurance, credit and financial
liability reinsurance and others.

➢ Life Reinsurance:

In the life reinsurance segment, the major benefits GIC underwrite are death,
critical illness and disability. In FY17, 88.6% of the gross premiums on a restated
consolidated basis in the life insurance segment were from direct insurers and
11.4% were from reinsurers.

17
1.1 What Is Insurance?

Insurance is a tool by which fatalities of a small number are

compensated out of funds (premium payment) collected from plenteous.
Insurance is a safeguard against uncertain events that may occur in the
future. It is an arrangement where the losses experienced by a few are
extended over several who are exposed to similar risks. It is a protection

against financial loss arising on the happening of an unexpected event. Insurance

companies collect premium to provide security for the purpose. Loss is
paid out of the premium collected from people and the
insurance companies act as trustees to the

amount so collected. These companies have proposal forms which are

filled to give details of insurance required. Depending upon the answers
in the proposal from insurance companies assess the risk and decide on
the premium. Insurance companies are risk bearers. They underwrite the
risk in return for an insurance premium. the function of insurance is to
provide protection, prevent losses, capital formation etc. hence insurance
can be defined as a tool in which a sum of money as a premium is paid

by the insured in consideration of the insurer’s bearing the risk of paying a

large sum .it may also be defined as a contract wherein one party (insurer)
agrees to pay the other party (insured) or his beneficiary, a certain sum upon
a given contingency against which insurance is required. Insurance industry
commands massive funds through sales of insurance products to large
number of clients. Insurers also create liabilities and commit themselves to
compensate for losses occurring to the policyholders on future date. It also
plays an important role in process of capital formation.

18
1.2. Semantics

1. Risk

It is defined as an uncertainty of a financial loss. It is the unintentional

decline in or disappearance of value arising from contingency.

2. Policy

It is the document which embodies the insurance contract

3. Whole life policy:

It is the policy under which the amount of policy will be paid only on
death of the insured. Premiums may be payable throughout the life or
for a limited period.

4. Endowment policy
Endowment policies entitle the insured to receive the amount of the
policy on his reaching a certain age and premiums also stops. If death
occurs earlier, amount of the policy will be paid at that time and
payment of premium will also stop at that time

5. Claim

It is the amount which an insurer has to pay against a policy.

6. Reinsurance

It refers to placing a part of the risk by an insurer with another insurer. The
object is to reduce the possible loss to be borne by the original insurer,
who pays premiums at the ordinary rates to the reinsurer. Reinsure must
pay commission to the original insurer.

19
7. Premium

A periodic payment made on an insurance policy.

8. Insurance penetration
It is defined as insurance premium as a share of gross domestic product.

9. Insurance density
Insurance density is defined as per capita expenditure on insurance
premium i.e., Premium per capita.

10. Actuary

The actuary is a specialist who combines an understanding of risks

and mathematical technique to develop financial products to manage
these risks, price these products. He helps in designing insurance plans
and then evaluates the financial risk of the company which it takes
while selling an insurance policy.

20
1.3. History of Insurance Industry in India

The insurance industry in India over the past century has gone through big
changes. In India this industry reveals the 360 degrees turn. 360-degree
turn means that it started in India from being an open competitive marketto
nationalization and back to a liberalized market again. Insurance industryin
India started as a fully private system with no restriction on foreign
participation in the Nineteenth Century. Before independence, a few British
insurance companies dominated the Market. Life insurance was first set up
in India through a British company called the Oriental Life Insurance
Company in 1818, followed by the Bombay Assurance Company in 1823
and the Madras Equitable Life Insurance Society in 1829.All of these
companies operated in India but did not insure the lives of Indians. They
were there ensuring the lives of Europeans living in India. Some of the
companies that started later did provide insurance for Indians. But they
were treated as "substandard" and therefore had to pay an extra premium
of20% or more. The first company that had policies that could be bought
by Indians with "fair value" was the Bombay Mutual Life Assurance
Society starting in 1871.The first general insurance company, Triton
Insurance Company Ltd., was established in 1850. It was owned and
operated by the British. The first general insurance company was the Indian
Mercantile Insurance Company Limited set up in Bombay in1907.By 1938;
the insurance market in India had nearly 176 companies (both life and non-
life). After the independence, the industry went to the other extreme. It
became a state-owned monopoly. The industry started to witness a problem
like fraud. Hence many regulations were put in place to reduce and control
the problems in the industry. After which Insurance was nationalized. In
1956, the then financeminister S. D. Deshmukh announced nationalization
of the life insurance business and then the general insurance business was
nationalized in 1972. Only in 1999 private insurance companies have been
allowed back into the business of insurance with a maximum of 26% of
foreign holding.

21
1.4. Types of Insurance Insurance

occupies an important place in the modern world because of the risk, which
can be insured, in number and extent owing to the growing complexity of
present-day economic system. The different type of insurance has come
about by practice within insurance companies, and by the influence of
legislation controlling the transacting of insurance business, broadly,
insurance may be classified into the following categories:

1. Classification from business point of view

a) Life insurance, and b) General insurance

2. Classification on the basis of nature of insurance

a) Life insurance b) Fire insurance c) Marine insurance d) Social

insurance, and e) Miscellaneous insurance

3. Classification from risk point of view

a) Personal insurance b) Property insurance c) Liability insurance d)

Fidelity general insurance

22
1.5. The Importance of Insurance Insurance

benefits society by allowing individuals to share the risks faced by many

people. But it also serves many other important economic and societal
functions. Because insurance is available and affordable, banks can make
loans with the assurance that the loan’s collateral (property that can be
taken as payment if a loan goes unpaid) is covered against damage. This
increased availability of credit helps people buy homes and cars. Insurance
also provides the capital that communities need to quickly rebuild and
recover economically from natural disasters, such as tornadoes or
hurricanes. Insurance itself has become a significant economic force in
most industrialized countries.

Employers buy insurance to cover their employees against work-related

injuries and health problems. Businesses also insure their property,
including technology used in production, against damage and theft.
Becauseit makes business operations safer, insurance encourages
businesses to makeeconomic transactions, which benefits the economies of
countries. In addition, millions of people work for insurance companies and
related businesses. In 1996 more than 2.4 million people worked in the
insurance industry in the United States and Canada.

Insurance as an investment that offers a lot more in terms of returns, risk

cover & was also that tax concessions & added bonuses not all effects of
insurance are positive ones. The possibility of earning insurance payments
motivates some people to attempt to cause damage or losses. Without the
possibility of collecting insurance benefits, for instance, no one would
think of arson, the willful destruction of property by fire, as a potential
source of money.

23
METHODS OF INSURANCE

According to the study book of the characteristic insurance institute, there

are variant methods of insurance as follows:

1. Co-insurance - risk shared between insurers

2. Dual insurance - having two or more policies with overlapping coverage

of a risk (both the individual policies would not pay separately under a
concept name contribution, they would contribution to hater to make up the
policyholder. Whoever, in case of contingency insurance such as life
insurance, dual payment is allowed).

3. Self-insurance - situations where risk is not transfer to insurance

companies and solely return by the entities or individual themselves.

4. Reinsurance - situations when the insurer passes some part of or all risk
to another insurer, called the reinsurer.

24
1.6. INSURANCE REFORMS

Having looked at the insurance sector, the efforts made by the

government to make the industry more dynamic and customer friendly. To
begin with, the Malhotra committee was set up with the objective of
suggesting changes that would achieve the much-required dynamism.

The Malhotra Committee Report

In 1993, Malhotra Committee, headed by former Finance Secretary and

Rigoberto R. N. Malhotra, was formed to evaluate the Indian insurance
industry and recommend its future direction. In 1994, the committee
submitted the report and gave the following recommendations:

Structure

i. Government stake in the insurance Companies to be brought down

to 50%.

ii. Government should take over the holdings of GIC and its
subsidiaries so that these subsidiaries can act as independent
corporations.

iii. All the insurance companies should be given greater freedom to

operate.

Competition

Private Companies with a minimum paid up capital of Rs.1bn should be

allowed to enter the industry No Company should deal in both Life and
General Insurance through single entity foreign companies may be allowed
to enter the industry in collaboration with the domestic companies. Postal
Life Insurance should be allowed to operate in the rural market. Only one
State Level Life Insurance Company should be allowed to operate in each
stat

25
Regulatory Body

The Insurance Act should be changed. An Insurance Regulatory body

should be set up. Controller of Insurance (Currently a part from the Finance
Ministry)

Investments

Mandatory Investments of LIC Life Fund in government securities to be

reduced from75% to 50%.GIC and its subsidiaries are not to hold more
than 5% in any company (There current holdings to be brought down to
this level over a period of time)

Customer Service

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

companies must be encouraged to set up unit linked pension plans.
Computerization of operations and updating of technology to be carried out
in the insurance industry. Overall, the committee strongly felt that in order
to improve the customer services and increase the coverage of the
insurance industry should be opened up to competition. But at the same
time, the committee felt the need to exercise caution as any failure on the
part of new players could ruin the public confidence in the industry.

26
LIFE INSURANCE

After the entry of new players and increase in the penetration levels, could
see the insurance sector cross the Rs 2,00,000-core mark in business by
2010.The current size of the sector is estimated to be at Rs 50,000 core,
which has seen a compound annual growth rate (CAGR) of around 175
percent in the last few years. The insurance sector, both life and non-life, is
likely to grow by over 200 percent, and private insurers are expected to
achieve a growth rate of 140 percent as a result of aggressive marketing
technique. It added that state owned insurance companies are likely to be
35- 40 percent. On account of intense marketing strategies adopted by the
private insurance players, the market share of state-owned insurance
companies like GIC, LIC and others has come down to 70 percent in last 4-
5 years from over 97 percent. Despite regulation, the private players are
offering 35 percent rate of return to is policy holders against 20 percent by
public-sector insurers. The industry body also noted that India’s life
insurance premium is 1.8 percent as a percentage of GDP whereas it is 5.2
percent in the US, 6.5 percent in the South Korea. The services sector
offersimmense opportunities for expansion opportunities for expansion
opportunities and the rural market, also, offers tremendous growth
opportunities for insurance companies.

27
GENERAL INSURANCE

General insurance in India has been expecting growth except in some

portfolios like motor insurance, fire and engineering. These portfolios are
still under tariff- this means that premium depends on a fixed
predetermined rate structure. In India, GDS as a proportion of GDP at
current prices increased from 26.1% in 2002-03 to 28.1% in 2003- 04.
house hold sector continued to be the major contributor to GDS at 24.3% in
2003- 04. this can be attributed to soft interest rates prevailing in housing
sector. General Insurance has low market penetration. It is 1.95% and ranks
51st.However in collection of premia it is ranked 23rd. The ratio of the
premium collected to that of GDP is 0.58. The main reason for the general
insurance industry to perform very poorly was because of the slow
settlement of claims. Moreover, the rates of claim in India were highest in
the world. It was 70 percent compared to 40 percent internationally. This
meant that out of 100 people who had insured their commodities 70
claimed for a loss or damage. The main reason for the lack of demand for
general insurance is that people consider it as an unnecessary expenditure.
However, it must be noted that the general insurance has been earning
consistent profits and has an efficient dividend paying record accompanied
by a steady growth in its financial resources. The industry is recognized as
one of the largest financial Institutions in the country. Some of the private
players in this sector are- ICICI – Lombard, Reliance, Royal-Sundaram,
Cholmondeley etc.

28
1.7. Contribution of the Insurance Sector to Indian Economy

Some surveys have predicted that India and China will play a very vital
role in the years to come. Indian economy can be termed as an
emergingeconomy as it is doubling its GDP in 3 to 5 years and moreover it
is not dependent on any particular sector for its GDP. If we look at the GDP
of the Indian economy very closely over the years, we can easily come to
know the changing structure of the economy. We can also come to know
the changing contribution of the various sectors like agriculture,
manufacturingand the service sector. In the financial year 1993-94,
agricultural sector contributed to 31%, manufacturing accounted to 26.3%
and the service sector contributed to 42.7% of the total GDP of the country.
Thus, over the years as India became an emerging economy in 2003-04
manufacturing sector contributed for 21.7 %, manufacturing contributed for
the 26.8whereas service sector contributed for 51.4% of the total GDP.
There has been 7.5% growth in the total GDP of the country and is
estimated to grow at 8.0% in 2006-07. The Indian economy has shown
signs of strong performance despite a rise in oil prices, high inflation rate
and abnormal rains in many parts of the country. The overall growth of the
Indian economy has been equally supported by all the three sectors of the
economy,i.e., the agriculture, manufacturing and the service sector.
Insurance, together with the banking sector, contributes to about 7.3 % of
the total GDPof India, and the gross premium collected contributes to about
2% of the total GDP of the country the insurance sector in India has
completed a full circle from being an open competitive market to
nationalization and back toaliberalized market again. Tracing the
developments in the Indian insurance sector reveals the 360- degree turn
witnessed over a period of almost 200 years.

29
1.8. Distribution Channels in Insurance Sector: -

An insurance cover is an intangible product evidenced by a written contract

known as the ‘policy’. Insurer’s market various insurance covers either
directly or through various distribution Channels— individual agents,
corporate agents (including Banc assurance) and Brokers. The marketer in
the distribution network is in direct interface with the prospect and the
customer. Life insurance products are sold through individual agents and
many of them have this as their only career occupation. General insurance
products are sold through individual agents, corporate agents and brokers.
Distribution channels such as agents are licensed by the IRDA. To get an
agency license, one has to have certain minimum qualifications; practical
training in insurance subjects and passes an examination conducted by the
Insurance Institute of India. IRDA regulations on licensing of
agents/brokers lay down the code of conduct for individual agents,
corporate agents and brokers. A separate note on the code of conduct is
appended to this note. Thus, it is seen that the dos and don’ts for these
intermediaries are given clearly at the point of sale as well as in the event
of a claim. Service does not end with the customer receiving his document;
it in fact only begins here. After sales service is as important or even more
important – like when refund has to be made or when a claim has to be
made. One of the issues that are of great concern affecting professionalism
in insurance activities is resorting rebating by intermediaries. Rebating is
prohibited as per Section 41 of the Insurance Act, 1938 and the public are
advised not to deal with intermediaries offering rebate of any kind
Rebating means a share of commission receivable by the agent/broker is
given to the prospect/client. This is done to attract the client in the purchase
of insurance contract by offering cash. Competition among agents/brokers
is so cut-throat, some agents indulge in such unethical practices. Public are
advised not to ask for any prohibited rebates in premium since commission
payment to an agent is the only income for some to take care of their
families. Similarly, agents are also advised not to indulge in such
practices which could cause them
30
loss of agency income. Why there is need for alternate distribution
channels?

1. To increase insurance penetration in the country

2. To differentiate on basis of customer service to retain and attract
new customers so as to expand business
3. To increase insurance awareness and knowledge among people.
4. To satisfy the needs of more demanding customers.
5. To improve cost efficiency in insurance distribution.
6. What determines choice of distribution channel for an insurance
company?
7. Where are the customers?
8. What is target customer profile?
9. Which product (linked, traditional, term etc.) can be sold through
distribution channel?
10. Which channel provides best buying experience and value to target
customer segment?
11. The customer preferences vary by market segment like geography,
age, income, life style etc., and market characteristics change over
time.

31
1.9. Factors affecting life Insurance Policy

Life Insurance policy is a contract between the insurance company and the insured or
the policy holder. The objective of buying a best life insurance policy in India is to
cover you adequately so that in case of your death, your beneficiary still manages to
maintain the same lifestyle. The death benefit can also help pay off debts or overcome
the contribution of your earnings.

But nevertheless, buying a good life insurance policy covering your needs
appropriately is absolutely dependent on you. You have to be very clear about what is
dear to you and what you want to cover. If you are the only bread winner in the family
then your goal should be to cover yourself adequately or if there are other members
like your spouse contributing to the earnings, get you and your spouse a good cover
sufficient to protect your family in times of crisis.

Many people look at life insurance policies critically, but it is the only financial
support one can expect in critical times. This is also the reason we pay premium year
after year to avail its service. Factors that predominantly affect your life insurance
policy are:

1. Age –
The younger you are the premium will be cheap. The moments you get old the
premium tend to rise. This is because the older you get you are more prone to risks
than the younger people. An insurance company does this slotting as per the
mortality chart available to them.

2. Sex –
The studies have revealed that women folks live longer than men. Thus, the
premium of a man's life insurance policy is always on the higher side than that of a
woman. The researches have justified early death of man because of stressful life
they lead, the pressure of being the bread winner, etc.

32
3. Occupation –

If you are a pilot the premium of your policy will definitely be high because
your job involves high risk. And the insurance companies charge you for
covering the risk. If you are a teacher you are working in a low-risk zone so
yourpremium will be lower.

4. Health –
Health is often the most important factor, followed by age and sex which
affects your life insurance policy. Someone with poor health will have to pay a
very high premium, or even be uninsurable. Poor health raises the rates for life
insurance policy because it decreases the number of years you are likely to pay
premiums and increases the risk of paying a claim early.

5. Lifestyle –

If you lead a lavish life then your premium to be paid will obviously be on the
higher side. To enable your beneficiary to maintain the same grand lifestyle,
you have to cover yourself exponentially.

33
 CHAPTER 2
RESEARCH METHODOLOGY

2.1. Objectives of the Study

i. To find out the awareness of insurance among the people.

ii. To find out the important criteria that people think about before investing in
an insurance policy.

iii. To find out whether gender bias is involved in investing life insurance or not.

iv. To know about the various Investment alternatives that is mostly preferred
by the people.

2.2. Scope of the Study

i. The result of this research would help the company to have a better
understanding about the consumer’s perception towards life
insurance.

ii. The study helps the company by creating awareness about the consumers of
different ages and income levels.

iii. The study also enables the company to focus the consumer’s preferences and
expectations on the product which they offer.

34
2.3. Need of the Study

• This study helps the company to identify its competitive position among its
industrial competitors by which the company can further improve its performance
to enjoy high reputation among clients.

• This study also helps in making necessary changes in the attributes of the
insurance cover offered by the company so that the customers can enjoy the benefits
of the insurance cover.

The need for the study also arises to identify and offer additional insurance
products according to the expectations of the customers. Research Methodology

2.4. Sampling Size

The sample size of the study was 52.

Sampling Method

Methodology is a systematic way of solving a problem it includes the research

methods for solving a problem.

 Type of research - Descriptive research.

 Data source -Primary and Secondary data.

 collection tools –Questionnaires Sample size -52

The task of data collection begins after a research problem has been defined. In this
study data was collected through both primary and secondary data sources.

35
A. Primary Data

A primary data is a data, which is collected for gathering information first time and to
analyses the problem. In this study the primary data was collected among the
consumers using questionnaires.

B. Secondary Data

Secondary data consist of information that already exists somewhere, having been
collected for some other purpose. In this study secondary data was collected from
company websites, magazines and brochures.

36
 CHAPTER 3
Review of literature

C. Meara and D. M. Eswaran (2011); -

explored a study on customer satisfaction towards cross selling of insurance products
and supplementary services in Coimbatore district, centers around the dependent
variable customer usage behavior and their relationship with the related independent
variables such as Age, Gender, Marital status, Education, Occupation, Family Income,
No. of years banking and Frequency of Visit to bank. Statistical tools ANOVA and
Garrett ranking were used and reveled that cross selling of insurance product is not
influenced by age of respondent but have strong opinion on cross selling of insurance
product is associated with education (UG), occupation (Business), and frequency of
bank visit.

R. Serenade, M. G. Saravana raj and M. Lathe Naaman (2011): -

conducted a study on the insurance product pattern and consumer preference for ULIP
Life Insurance Product with reference to Delhi City to find out how much the
consumer in Delhi city prefer for ULIP Life Insurance. The collected data were
analyzed by using simple percentage analysis, weighted average method, ranking
method, Analysis of variance, chi-square, F-test and correlation and it is found that
most of the customer are satisfied with ULIP and enjoys an excellent perception of
brand value.

Annand Prakash, Sanjay Kumar Johan and S. P. Kallikak: -

the research describes Indian’s attitude towards service quality for life insurance
business presented through different demographic factors. This research reveals that,
type of customer personality, age, gender, levels of education, and monthly income
influence the attitude towards the service quality and also provides the research
implications useful for business transformation and further development of research
on service quality.

Ghosh Amlin:
inferred the relationship between life insurance sector reform in India and the growth
of life business in post reform period. It shows that the relationship between the
insurance sector reform and development of life insurance sector in India is bi-
directional. It is due to huge potentiality of life insurance market.

Masala and Vimal Priyank:

concluded that LIC continues to dominate instructor sector. Private sector insurance
companies also tried to increase their market share. Life insurance has today become a
mainstay of any market economy since it offers plenty of scope for game ring large
sums of money for long period of time. The study compared premium policies and
market share of companies.

37
Kalani, Silence and Achira:
examined claim settlement ratio of LIC with other insurance companies in India .Study
observed that there are cases of frauds in claims settlement that may happened but if
the policyholder uses proper precaution he will prevent himself from fraud LIC of
India provides better corporate services for setting the customer claims .D-mat may
improve transparency and efficiency of the claim settlement .Authors studies
comparison of claim settlement ratio of LIC with other life industry and survey of
policyholder and opinion regarding claim settlement.

Yadav and Mohini:

the study entitled claim settlement of life insurance policies in insurance services with
special references of Life Insurance Corporation of India Authority have focused on
management framework of LIC for the settlement, impacts of claim settlement on the
sale of life insurance policies by LIC of India, claim settlement process followed by
LIC of India awareness towards claim settlement among customer and analyzed
qualityof services provided by LIC of India for claim settlement.

Ptyalin Chandra Khan and Mantra D:

analyzed that the overall position of LIC was found to be quite satisfactory as the
profit after tax improved by 270% in the last 12 year. It had strong liquidity position.
The company had sufficient current asset to meet the current liabilities. This resembles
that LIC is quite capable to earn superior return in this competitive environment.

Srivastav, Samir K, and Ray, Avishay (2012)

in their paper determines a set of marketing, financial and operational variable to
predict benchmark financial strength of general insurance firms in India. It
incorporates qualitative input from practicing manger and industry expert before
carrying out qualitative modeling and analysis. We collected .compiled and analyzed
the key financial operation and business data of their Indian insurance firms. The
NAIC IRIS ratios method was used to opt-in risk classification. Linear regression and
logit technics were there after applied to estimate the significant factor (direction-wise
and magnitude- wise) which influence insurer solvency. There result suggest that the
factor that most significantly influence Indian non-life insurance and lines of business,
the firm market share, the premium growth rate, the underwriter performance and the
claims incurred. Further the factor which have the strongest effect are market share,
change in inflation rate, firm size, lines of business and claims incurred. The paper
provides insures with easy-to use operational and marketing indicator to bench market
their solvency risk. It will lead to competitive goal setting for continuous
improvement. Estimation of appropriate market /economic parameters can be a useful
input for regulators.

38
Sharma Paramita (2011)
in her study aims to develops the managerial competency framework for the middle
level manager of the general insurance sector in India, secondary research provides the
overview of existing general competency model. The need was observed for
competency-based framework in the insurance sector in India. Survey was conducted
among ninety-eight level managers of the public and private sector general insurance
companies. The result revealed the fourteen managerial competencies. analytical skills,
communication skills, ability to motivate, ability to plan and term management. Job
knowledge managerial skill, where the most important skill was communication skill
inter -personal skill and term management.

Pascale Torque (2012)

in his study found that a number of years, the Dutch, German and French health
insurance system have been attempting to contain cost and diversify their sources of
finance, which traditionally have come mainly from social contribution.
Diversification may involve broader -based public finance, as well as greater recourse
to private resources and operators. In the case of the Netherland and Germany, the
reforms go hand in hand with efforts to introduce competition between health
insurance bodies. In France, private complementary insurance has become
indispensable for adequate access to health care. However, these measures have
repercussion, which social assistance programmer have difficult in addressing.

Malhotra, R. N. (1996)
a committee on reform in the insurance sector was formed to discuss on the media’s
insurance sector - According to his survey, the awareness level of various policies of
both General and Life Insurance Company is quite limited. He is also of the view that
a fair proportion of people are of the opinion that peerless companies are offering only
general insurance.

Ashes Deb Roy (1987)

in his article entitled “We Care for our Customer “has examined the nature and
importance of better customer services to policyholder and has emphasized the need
for quality in services. He has given a detailed note on the various steps to be taken by
Life Insurance Company to improve the customer services such as training
programmer conducted by company to its agents and employees, opening new
branches and introduction of computer in insurance branch office.

Mishra M. N. (1987)
made a study to appraisal the strategist of Life Insurance Company. While reviewing
the strategies, the author felt that before 1960 Life Insurance Company did not give
much attention to the objective of customer satisfaction, but from 1980 onwards the
corporation had taken several remedial measures to provide better customer services
and improve the customer satisfaction.

39
Rao (2014)
explained that liberalization of the financial services sector has led to insurance
companies functions increasingly under competitive pressure; so companies are
consequently directing their strategies towards increasing customer satisfaction and
loyalty through improved services quality with the opening of insurance industry to
private players ,the competition has intensified and it has become very difficult for the
companies to attract and retain the policyholder .Every company has recognized the
need for shifting from a traditional strategies to survive in the market .It is in this
context
, the process of CRM has been adopted by all private and public sector insurance
companies as well. CRM technology and company’s management tools are maturing
and finding wider adoption with large insurance companies. This study is an endeavor
to examine and evaluate the various CRM initiatives in life insurance companies and
compare the strategies used by public sector LIC with private sector companies.

Eck and Neotses (2006)

states that to determine the major reason for the lack of success in marketing life
insurance in Latin American and the Caribbean. Their result points at the importance
of cultural variables of which the most significant is the percentage of the population
that professes to be Catholic. They attribute this to a strong correlation between
religious belief and risk preferences. The other major factor is the population ‘s
attitude towards financial instruments in general. Both results are robust to the model
specification. The finding should be of interest to insurance companies attempting to
market life insurance throughout the world.

Rajeshwari and Earthenware (2011)

determined that the customer satisfaction is the perception of the customer on the
services whether that service has met his needs and the expectation. Service quality,
personal factor, perception of equity and fairness or failure are the factors that
influence the customer satisfaction. However, the perception and expectation of the
policyholder who has taken the policies from Life Insurance Company vary from
person to person. This study emphasizes the perception of the policyholder about the
services rendered by the LIC of India and intends to promote a better theoretical
understanding and recognition of the complexities to services quality and its
measurement with respect to life insurance. The study is based on 380 policyholders
from Virudhunagar District situated in South Tamil Nadu. This study also examines
the relationship between the demographic factor and SERVQUAL mean score. to
determine the reliability of the attributes, the Cronbach Alpha is used to measure
reliability of the dimension reliability, responsiveness, assurance, empathy and
tangible. The giant public sector life insurance company in the study area with their
thick infrastructure facilities and network of branches enjoyed a monopoly status in
spite of the competition withprivate players on the basis their services quality .The
opinion survey with the policyholder also brings to the fore the LIC has served them
well in regard to dissemination of product knowledge, issue of policies ,after sales
services before and after claim even though a slight discontent is reported by minority
.

40
Dhana Sekaran (2013)
states that the Indian insurance sector has changed rapidly ever since the market
opened several years ago. The entry of Private Life Insurance with long experience of
selling to discerning customers around the world has brought about new, modern
products and services. This new breed of private life insurance companies is taking
away the market share from LIC, a monopoly of early years. In early days Life
Insurance policies were considered as an instrument, which gives life cover only but
today, life insurance policies with the caption of market -linked plans are considered as
a saving instrument with life cover. This study provides detailed report on the factor
influencing in selected insurance. product with special references to HDFC Standard
Life Insurance Company Limited. This research will help the company to identify the
factors influencing private insurance products. This research has been done in
Coimbatore with special references to HDFC Standard Life Insurance Company
Limited by delectating a sample of 200 people. It focuses on ascertaining the process
of selecting an insurance product by customer.” The objective of this project is to
study the decision process in selecting an insurance product.” The research design
used in this project is “Descriptive “. Questionnaire method was used to collect the
requisite data. The statistical tools used for analyzing the data are simple percentage,
weighted average and square test. The agents play a very significant role in the factors
influencing an insurance product. People desire to have specific insurance products.
The detailed findings and recommendations are given in the final pages in this report.

Tirumala et al (2012)
has found that insurance companies in India are vital for one’s saving purpose. He
made a study to know the awareness level of customers about insurance products,
factors influencing the selection of insurance products. The study revealed that
beginning of insurance was looked at as a “tax - benefit” investment. Slowly, however
the mindset of the common man is changing. Life Insurance is now looked on as
investment vehicle, with the introduction of private players in the sectors there has
been more transparency and flexibility in the sector. Better services, individual
attention and pure transparency have given the private sector an upper hand.

Maher and Cammock (1976)

agree that Insurance is usually of as a product that spreads the risk of serious, but that
low-probability, losses among thus providing some financial protection to each
individual.

Unfeather (1979)
said that his product makes good sense, particularly when the protection is purchased
against potential losses so large as to be catastrophic, such as total destruction of one's
home, a large accident liability judgment, or death of the primary family breadwinner.
However, it has long been recognized that this sensible product is difficult to sell.

41
Kotler (1973)
consider insurance to be in the category of “unsought goods,” along with product such
as preventive dental services and burial plots. He notes that unsought goods pose
special challenges to the market. Slavic, Fisch off, Lichtenstein, Corrigan, and Combs
(1977) found that subject were more likely to buy insurance against small, high -
probability losses than insurance against large, low-probability losses, Hershey and
Shoemaker (1980) reported the opposite result.

Unfeather (1979)
“It is not the magnitude of a potential loss that inspires people to buy insurance
voluntarily -it is the frequency with which a loss is likely to occur”. Kahneman and
Tversky (1979) reported a risk -averse individual, therefore, should avoid nearly all
types of risk. Empirical evidence, however, suggests most people are risk averse for
gains and risk seeking for losses.

Michael L. Smith (1982)

said that a typical life insurance contract provides a package of option or right to the
policy owner that is not precisely duplicated by any other combination of commonly
available contract. Viewed from this perspective, life insurance enjoys a unique
position in the field of investment and should be judged in this light. The paper shows
that an options viewpoint provides a more complete explanation of policy owner
behavior towards life insurance than the convention saving and protection view.

Michel L. Walden (1985)

told that the options packagers view of the whole life insurance policy suggests that a
whole life policy is a package of option, each of which has value and is expected to
influence the prices of the policy. This viewpoint implies the general hypothesis that
price differences between whole life policies can be explained by differences in policy
contract provision and differences in selected company characteristics. The options
packages theory was empirically investigated using regression analysis on data from a
sample of policies markets in North Carolina. The results suggest support for the
options package theory.

Venkaiah and Sudhir (2013)

conducted a survey to find out the performance of private insurance players and took a
sample of 200 respondents. They found that very few respondents feel private
companies are as per the expectation of customers and they feel no risk in investing in
private companies. Responded want more policies with tax benefits among private
companies.

42
Kumar
the survey has been conducted by him on 200 respondents in Dehradun only. In his
survey he found that maximum investors are youth and there is gender business in
investment patterns. Married people and people residing in urban areas invest more in
LIC. He even found that maximum people opted for yearly payment plans. Major
portion of holder belongs to service sector and average middle-class people. Maximum
people invested in LIC on the basis of brand name and invested more in money back
policies.

Jain and Saini (2012)

in their article has highlighted the role of IRDA for the life insurance industry in India
and has continued that social, cultural, political, personal, psychological and
demographic factor influence the consumer behavior. This study reveals that
demographic factors have a major impact on the purchasing decision of consumers.
The leadership does not lie in getting the maximum number of policies sold but in
understanding the demography of the customers and targeting them in their way.
Finally, being they considered the success of insurance marketing dependent on
understanding the social and cultural need of the target population.

Singh (2014)
conducted a sample survey on 255 responded of Utter Pradesh to analyses life
insurance consumer behavior. Main purpose for which the study was conducted was to
assess the social economic status of responded and to examine the impact of status on
insurance purchasing capacity. The study show that maximum people invest for the
tax rebates and family safety. He found that major insurance products be child plan
and. He even found that maximum people like to get insurance product directly from
insurance agents followed by bank, financial institutions, and broker. It was found that
government services men of 26-45 year of age buy more insurance products and
middle-income group one lakh to three lakh people buying more insurance policies.

Shampoo and Vibhute (2013)

conducted a survey in Kolhapur on 127 responded to find out the preference of
customers towards insurance policy, the satisfaction level towards ULIP plan and
traditional plan and the factor influencing the investment decisions. It was found that
LIC to be major insurance player and traditional plans being more prepared than ULIP
plans. Majority of holders thinks take policies from financial advisor and Banks.
Investor opinion of investment also depend upon service quality, reputation, trust
worthiness and future plans of company.

43
 CHEPTER NO 4
HYPOTHESIS

Hypothesis 1

Ho: There is no significant difference in the service level perceptions of public and privet sector
insurance companies.

H1: There is significant difference in the service level perceptions of public and privet sector
insurance companies.

Hypothesis 2

Ho: There is no significant difference in customer perception across gender.

H1: There is significant difference in customer perception across gender

Hypothesis 3

Ho: There is no significant difference in customer perception across occupation.

H1: There is significant difference in customer perception across occupation

44
 CHAPTER NO 04
DATA ANALYSIS & INTERPRETATION
1. Age?
Table no. 1

Age % of respondents
Below 20 4.7%
21 to 30 81%
31 to 40 0%
Above 40 14.3%
Total 100%

Chart No: 4.1

Age

14.30%, 144%.70%, 5%

81%, 81%

Below 20 21 to 30 above 40

Interpretation
The respondents were requested to indicate their age from the finding 4.7% of the
respondents are from the group of age below 81% of the respondents are from the
group of age 21 to 30 year, and 0% of respondents are from the group of age 31 to
40, while the 14.3% of respondents are from the age above 40.

45
 2. Gender?

Table no. 2

Gender % of respondents

Male 47.6%

Female 52.4%

Total 100%

Chart No: 4.2

Gender

52.4% 47.6%

Male

Interpretation
The distribution of respondents in terms of gender According to the
finding 47.6% the respondents are male and the 52.4% of the respondents
are female.

46
 3. Qualification?

Table no. 3

Qualification % of respondents
Under Graduation 19%
Post-Graduation 33.3%
Professional 19%
Other 28.6%
Total 100%

Chart No: 4.3

Qualificatio

19%
28.6%

Under
Graduation
33.3% Post
19%
Graduation

Interpretation

The respondents in term of qualification from the finding 19% are the
respondents are the Under graduation ,33.3% of the respondents are the
qualification is post- graduation, the 19% of the respondents are professional and
the 28.6% of the respondents are the other.

47
 4. Occupation?

Table no. 4

Occupation % of respondents

Business 9.5%

Professional 38.1%

Housewife 9.5%

Other 42.9%

Chart No: 4.4

Occupation

9.50%, 9%

42.90%, 43%
38.10%, 38%

Business Professional Housewife

9.50%, 10% Other

Interpretation
In term of occupation the respondents from the finding 9.5% of respondents doing
business, 38.1%of the respondents are professional and the 9.5% of the respondents
are house wife and 42.9% of the other.

48
5. Annual Income Level?
Table no. 5

Annual Income Level % of respondent

Below 1 lakh 33.3%

1 lakh to 3 lakhs 42.9%

3 lakhs to 5 lakhs 14.3%

Above 5 lakhs 9.5%

Total 100%

Chart No: 4.5

Annual Income level

9.50%, 10%
14.30%, 14%33.30%, 33%

Below 1 lakh
1 lakh to 3 lakh
42.90%, 43% 3 lakh to 5 lakh
Above 5 lakh
Interpretation
In term of annual income level, the respondents from the finding 33.3% of
respondents below 1 lakh, 42.9%of the respondents between 1 lakh to 3 lakh and
the 14.3% of the respondents between 3 lakhs to 5 lakh and 9.5% of the
respondents above 5 lakhs.

49
 6. Do you have any insurance policy with any insurance company?
Table no. 6

Particulars % of respondents

Yes 81%

No 19%

Total 100%

Chart No: 4.6

Insurance Policy

Yes
No

Interpretation
The awareness about the insurance policy is increased. As show in the chart 81% of
the respondents are aware of insurance policy and 19% are not aware.

50
7. What type of investment do you prefer?

Table no. 7

Particulars % of respondents

Short term 47.6%

Long term 52.4%

Total 100%

Chart No: 4.7

Type of Investment

52% 48%

Short term long term

Interpretation

According to the chart 47.6% of respondents preferring short term policy and
the long-term policy there are 52.4% of respondents are prefer.

51
8. What are the various companies you are aware of?

Table no. 8

Particulars % of respondent
ICICI Prudential 23.8%

Bajaj Allianz 9.5%

HDFC Standard 14.3%
Birla Sun Life 9.5%
LIC 42.9%
Total 100%

Chart No: 4.8

The various companies of

24%
ICICI
43%
Prudential
10%
Bajaj Allianz
14.3% HDFC
10%
Standard

Interpretation
As per the survey 23.8% of respondents are aware of ICICI Prudential, and the
other than 9.5% of respondents aware of BAJAJ ALLIANZ. 14.3% of the HDFC
and 9.5 of the Birla sun lives, the highest of the respondents are 42.9% in LIC.

52
9. What factors do you consider while buying an insurance policy?

Table no. 9

Particulars % of respondents
Premium 47.6%
Company Reputation 9.5%
Service Quality 28.6%
Product Quality 14.3%
Total 100%

Chart No: 4.9

factors do you consider while buying an insurance policy

14%

48%
29%

9%
Premium
Company Reputation Service Quality Produc

Interpretation
According to the chart the respondents are buying an insurance policy with the
47.6% of the premium 9.5% of the respondents in company reputation, other than
28.6% of the services quality and the 14.3% of the respondents are buying
product quality.

53
10. What are sources of information about insurance policy?

Table no. 10

Particulars % of respondent
Media 14.3%
Friend 28.6%
Relatives 33.3%
Agents 23.8%
Total 100%
Chart No: 4.10

sources of information about

insurance

14%
24%

Media
28% Friend
Relativ
33%
es

Interpretation

In terms of the analyzing the data followed by the chart analysis the 14.3%
respondents are through the media and the other than the 28.6% respondents are
the finding information through the friend sand 33.3% respondents are related
to the relatives’ base and 23.3% respondents are through the agents.

54
11. Whom have brought policy have you taken?

Table no. 11

Particulars % of respondents

LIC India 66.70%

Private Insurance 14.30%

Both 19%

Total 100%

Chart No: 4.11

whom have brought policy have you taken

19%

14%
67%
LIC India
Private Insurance Both

Interpretation
According to the chart the data has analyzed by the 66.7% of the respondent are
LIC of India 14.3%of the private insurance company and the 19% of, both has
brought by the insurance policy.

55
12. Give your Suggestion or opinion about insurance policy?

Table no. 12

particulars Sales

No 40%

Nothing 10%

would 10%

No Suggestion 40%

Chart No: 4.12

Suggestio

40% 40%
No
Nothi
ng
10%10% woul

Interpretation
According to the chart the data has analyzed the 40% suggest no, 10% nothing, 10%
would, and the 40% of the no suggest.

56
 CHAPTER NO 5

SUGGESTIONS & RECOMMENDATIONS

1. Consumer should be aware of company’s profile and returns associated

with insurance.
2. The Financial advisor should be right enough to serve the consumers. The
consumer should also be aware of the advisor or others who is looking after
their investments.
3. Company should publish their performance by comparing it with their competitors.
4. Company should adopt strategies to explore that private insurance companies
are safer and securer than public insurance company like LIC.
5. Middle income people suggest that premium can be collected on monthly
basis instead of twice a year.
6. Company’s reputation is more important because bad impression on image
or brand name is considered while decision making among consumers.
7. The company, if possible, should invest in advertising, conduct road shows, and
spend money on hoardings, so that it can better propagate awareness about its various
lesser-known products.
8. Some special focus should be laid on individual risk coverage while designing
the products.
9. To sell insurance products through electronic Medias. 10. Claim settlement
process should be made fast and must not involve lengthy.

57
Conclusion

Insurance is a tool by which fatalities of a small number are compensated out of funds
collected from plenteous. Insurance is a safeguard against uncertain events that may
occur in the future. Over the last 5 to 6 years, the ICICI Prudential life insurance
companies have tripled investors’ money than the other competent; this progress
leads to increase the company image and makes a way to lead the total insurance
market.
Thus, the study also comprise company image is the highly important criteria that
consumers consider before taking up a life insurance. This is mainly because people
expect safety and secure for their money which they invest, followed by the factor
Premium which we pay to the insurer and then Bonus and Interest paid by the
company, services etc. Insurance is a large investment and you will most likely
purchase multiple policies throughout your lifetime. It is essential that you know
what each type of insurance covers and how it works so you can make the best
decision about what to buy. Do not base your decision on just what is cheapest, but
look at what it provides. Take the time to shop around and find the right insurance
for your situation. People often say they cannot afford insurance, but the reality is
that they cannot afford not to have it. It can save them from thousands or more
dollars in unplanned expenses when unexpected situations arise. You do not want to
waste your money on policies that do not meet your needs, but the right insurance
policy can protect you and your family from unforeseen disasters.

58
Bibliography

• PHILIP KOTLER (2001) 'Marketing Management', Prentice Hall LH.Ltd.

New Delhi, Millennium edition.
• KOTHARI C.R. (1999) 'Research Methodology', Whishaw Prakash an, New
Delhi, edition.
• LEON G. SCHFFMAN and LESLIE LAZAR Kanuka (2007) 'Consumer
Behavior', Prentice Hall Pvt.Ltd., New Delhi, 9i edition.
• Sivakumar & Priyank (2012), “A Comparative Study of Public and Private
Life Insurance Companies in India” The Indian Journal of Commerce, Vol. 65,
No.1.
• Vijaya Kumar, (2004) “Globalization of Indian Insurance Sector Issues
and Challenges”, Journal of Management Accountant, p.195-198.

59
Annexure:

1. Name?

2. Age?

3. Gander?

4. Qualification?

5. Occupation?

6. Annual income level?

7.Do you have any insurance policy with any insurance company?

8.What type of investment do you prefer?

9. What are the various companies you are aware of?

10. What factors do you consider while buying an insurance policy?

11. What are your sources of information about insurance policy?

60
12. Whom have brought policy have you taken?

13. Give your Suggestion?

…...……………………………. END ……………………………….

61