Black Book Project - Nida Shaikh

A PROJECT REPORT ON
“A STUDY ON CONSUMER PERCEPTION ABOUT

LIFE INSURANCE POLICIES IN INDIA”
A Project Submitted to
University of Mumbai for partial completion of the degree of
Bachelor in Commerce (Banking and Insurance)
Under the Faculty of Commerce
By
NIDA SALIM SHAIKH
SEAT NO. - 6042
Under the Guidance of

MISS. SONALI DEVADIGA
Affiliated to University of Mumbai

GURUKUL COLLEGE OF COMMERCE,
GHATKOPAR [E], MUMBAI-400077.
APRIL – 2022
1|Page
DECLARATION
I the undersigned SHAIKH NIDA SALIM Student of GURUKUL

COLLEGE OF COMMERCE, BBI Semester VI (2021-2022) hereby,
declare that the work embodied in this project work titled “A
STUDY ON CONSUMER PERCEPTION ABOUT LIFE
INSURANCE POLICIES IN INDIA” Forms my own contribution
to the research work carried out under the guidance of MISS.
SONALI DEVADIGA is a result of my own research work and has
not 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.
Name and Signature of the learner
MISS. NIDA SALIM SHAIKH
Certified by
Name and signature of the Guiding
Teacher
MISS. SONALI DEVADIGA
2|Page
ACKNOWLEDGMENT
To list who all have helped me is difficult because they are so

numerous and the depth is so enormous.
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. NANDITA ROY, and
Vice-Principal MISS. JANHAVI RAO for providing the necessary
facilities required for completion of this project.
I take this opportunity to thank our Coordinator DR. PRITI

GHAG, and in charge DR. RAJENDRA VARE for their moral
support and guidance.
I would also like to express my sincere gratitude towards my

project guide MISS. SONALI DEVADIGA 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.
Name and Signature of the learner
MISS. NIDA SALIM SHAIKH
3|Page
CERTIFICATE
This is to certify that MISS. SHAIKH NIDA SALIM has worked

and duly completed her project work for the degree of Bachelor in
Commerce (Banking and Insurance) under the Faculty of
Commerce in the subject of Commerce and her project is entitled,
“A STUDY ON CONSUMER PERCEPTION ABOUT LIFE
INSURANCE POLICIES IN INDIA” under my supervision.
I further certify that the entire work has been done by the learner
under my guidance and that no part of it has been submitted
previously for any Degree or Diploma of any University.
It is his own work and facts reported by his personal finding and
investigations.
EXTERNAL SIGNATURE MISS. SONALI DEVADIGA
(Guiding Teacher)
DR. PRITI GHAG Dr. NANDITA ROY

(Co-Ordinator) (Principal)
Date of submission:
4|Page
INDEX
Sr. No Tile of the Chapter Page No.
01 INTRODUCTION 9 – 34
02 RESEARCH METHODOLOGY 35 - 40
03 LITERATURE REVIEW 41 - 53
04 DATA ANALYSIS, INTERPRETATION 54 - 81
AND PRESENTATION
05 CONCLUSION AND SUGGSTION 82 - 84
06 BIBLIOGRAPHY/ANNEXURE 85 - 90
5|Page
LIST OF TABLES
Table Name of the Table Page

No. No.
1 Age of Respondents 55
2 Differentiation of the respondents into male and female 56
3 Differentiation of the respondents based on their 57
occupation
4 Table showing income group of respondents or 58
respondents’ families
5 Respondents or their family having life insurance 60
policies
6 Market share of different life insurance companies 61
7 Table showing attributes from respondents 62
8 Factor which influenced to buy the life insurance policy 63
9 Value of respondent’s or their family’s life insurance 64
policy
10 Respondent’s preference to invest their money 65
11 Satisfaction of the respondents with the current life 66
insurance company
12 Death of respondent’s family members due to 67
coronavirus
13 The help of life insurance companies during the death of 68
respondent’s family members
14 Rating of the service offered by respondent’s or by their 69
family’s life insurance company
15 Consumers’ willingness to communicate service offered 70
by their or by their family’s life insurance company
16 Number of life insurance company known by respondents 71
17 Ratings of different life insurance companies 72
18 Respondent’s continuation with the same life insurance 78
company
6|Page
LIST OF PIE CHARTS

No. No.
1 Age of Respondents 55
2 Differentiation of the respondents into male and female 56
3 Differentiation of the respondents based on their 57
occupation
4 Chart showing income group of respondents or 58
respondents’ families
5 Respondents or their family having life insurance 60
policies
6 Market share of different life insurance companies 61
7 Factor which influenced to buy the life insurance policy 63
8 Value of respondent’s or their family’s life insurance 64
policy
9 Respondent’s preference to invest their money 65
10 Satisfaction of the respondents with the current life 66
insurance company
11 Death of respondent’s family members due to 67
coronavirus
12 The help of life insurance companies during the death of 68
respondent’s family members
13 Ratings of the service offered by respondent’s or by 69
their family’s life insurance company
14 Consumers’ willingness to communicate service offered 70
by their or by their family’s life insurance company
15 Number of life insurance company known by 71
respondents
16 Respondent’s continuation with the same life insurance 78
company
7|Page
LIST OF GRAPHS

No. No.
1 Differentiation of the respondents according to the assets 59
they or their family owns
2 Table showing attributes from respondents 62
3 Ratings of different life insurance companies 73 - 76
8|Page
[
CHAPTER 1: INTRODUCTION OF THE STUDY .
1.1: WHAT IS INSURANCE?

Insurance is a contract, represented by a policy, in which an individual or entity
receives financial protection or reimbursement against losses from an insurance
company. The company pools clients' risks to make payments more affordable
for the insured.
Insurance policies are used to hedge against the risk of financial losses, both
big and small, that may result from damage to the insured or her property, or
from liability for damage or injury caused to a third party.
1.2: WHAT IS MEANT BY LIFE INSURANCE?
Life insurance is a contract between an insurance policy holder and an insurer

or assurer, where the insurer promises to pay a designated beneficiary a sum of
money upon the death of an insured person (often the policy holder).
Depending on the contract, other events such as terminal illness or critical
illness can also trigger payment. The policy holder typically pays a premium,
either regularly or as one lump sum. The benefits may include other expenses,
such as funeral expenses.
Life policies are legal contracts and the terms of each contract describe the
limitations of the insured events. Often, specific exclusions written into the
contract limit the liability of the insurer; common examples include claims
relating to suicide, fraud, war, riot, and civil commotion. Difficulties may arise
9|Page
where an event is not clearly defined, for example: the insured knowingly
incurred a risk by consenting to an experimental medical procedure or by taking
medication resulting in injury or death.
Modern life insurance bears some similarity to the asset-management industry

and life insurers have diversified their product offerings into retirement
products such as annuities.
o Life-based contracts tend to fall into two major categories:
• Protection policies: designed to provide a benefit, typically a lump-

sum payment, in the event of a specified occurrence. A common
form—more common in years past of a protection-policy design
is term insurance.
• Investment policies: the main objective of these policies is to facilitate

the growth of capital by regular or single premiums. Common forms
(in the United States) are whole life, universal life, and variable
life policies.
1.3: INTRO TO THE STUDY:
Everyone is exposed to various risks. Future is very uncertain, but there is way
to protect one’s children’s future safe. Life Insurance companies help us to
ensure that our family’s future is not just secure but also prosperous.
This study titled “Study of Consumers Perception about Life Insurance

Policies” enables the Life Insurance Companies to understand how consumer’s
perception differs from person to person. How a consumer selects, organizes
and interprets the service quality and the product quality o f different Life
Insurance Policies, offered by various Life Insurance Companies.
10 | P a g e
1.4: PROFILE OF THE STUDY:
1.4 (1): History and Developments of Life Insurance:
Life Insurance in the modern form was first set up in India through a British
Company called the Oriental Life Insurance Company in 1818 followed by the
Bombay Assurance Company in 1823 and the Madras Equitable Life Insurance
Society in 1829. All these companies operated in India but did not insure the
lives of Indians. They insured the lives of Europeans living in India. Some of
the companies that started later did provide insurance for Indians, as the y were
treated as “substandard”. The first Indian insurance company under the name
“Bombay Life Insurance Society” started its operation in 1870 and started
covering Indian lives at standard rates. Later “Oriental Government Security
Life Insurance Company”, was established in 1874, with Sir Phirozshah Mehta
as one of its founder directors.
The Insurance Act was passed in 1912, followed by a detailed and amended
Insurance Act of 1938 that looked into investments, expenditure and
management of these companies’ funds. In 1914 there were only 44 companies;
by 1940 this number grew to 195. Business in force during this period grew
from Rs.22.44 crores to Rs.304.03 crores (1628381 polices).
By the mid-1950s, there were around 170 insurance companies and 80

provident fund societies in the country’s life insurance scene. However, in the
absence of regulatory systems, scams and irregularities were almost a wa y of
life in most of these companies. The Government of India nationalized the life
insurance industry in January 1956 by merging about 245 life insurance
companies and forming Life Insurance Corporation of India (LIC), which
started functioning from 01.09.1956. After completing the arduous task of
integration of about 245 life insurance companies, LIC of India gave an
exemplary performance in achieving various objectives of nationalization. The
non-life insurance business continued to thrive with the private sector till 1972.
The general insurance industry was nationalized in 1972. With this, nearly 107
insurers were amalgamated and grouped into four companies - National
Insurance Company, New India Assurance Company, Oriental Insurance
11 | P a g e
Company and United India Insurance Company. These were subsidiaries of the
General Insurance Company (GIC).
The Insurance Regulatory and Development Authority, an autonomous

insurance regulator set up in 2000, has extensive powers to oversee the
insurance business and regulate in a manner that will safeguard the interests of
the insured. Insurance is a federal subject in India. There are two legislations
that govern the sector- The Insurance Act, 1938 and the IRDA Act, 1999. The
insurance sector in India has come a full circle from being an open competitive
market to nationalization and back to a liberalized market again. Tracing the
developments in the Indian insurance sector reveals the 360 degree turn
witnessed over a period of almost two centuries
Important Milestones in Life Insurance Regulations In India
• 1818 – Establishment of the Oriental Life Insurance Company in Kolkata

• 1912 – The Indian Life Insurance Companies Act enacted as the first statute
to regulate the life insurance business.
• 1928 – The Indian Insurance Companies Act enacted to enable the
government to collect statistical information about both life and non -life
insurance businesses.
• 1938 – Earlier legislation consolidated and amended by the Insurance Act
with the objective of protecting the interests of the insuring public.
• 1956 – 245 Indian and foreign insurers and provident societies taken over
by the Central government and nationalized. LIC formed by an Act of
Parliament, viz. LIC Act,1956, with a capital contribution of Rs.5crore from
the Government of India.
• 1972 – Nationalization of general insurance business in India
• 1993 – Setting up of Malhotra Committee
• 1994 – Recommendations of Malhotra Committee
• 1995 – Setting up of Mukherjee Committee
• 1996 Setting up of (interim) Insurance Regulatory Authority and
Recommendations of the IRA
• 1997 – Mukherjee Committee Report submitted but not made public
12 | P a g e
• 1997 – The Government gives greater autonomy to LIC, GIC and its
subsidiaries with regard to the restructuring of boards and flexibility in
investment norms aimed at channeling funds to the infrastructure sector
• 1998 – The cabinet decides to allow 40% foreign equity in private insurance
companies-26% to foreign companies and 14% to NRI’s, OCB’s and FII’s.
• 1999 – The Standing Committee headed by Murali Deora decides that
foreign equity in private insurance should be limited to 26%. The IRA bill
is renamed the Insurance Regulatory and Development Authority (IRDA)
Bill 1999. Cabinet clears IRDA Bill.
• 2000 – President gives Assent to the IRDA Bill and Monopoly of Public
Sector Insurance company marks an end and Private companies make
inroad.
1.4 (2) Types of Life Insurance Policies:
An individual today has an array option to choose from when it comes to

financial planning. Most people focus on the wealth creation aspect and
compromise with the protection element. In the wake of rising inflation, change
in lifestyle patterns and move to nuclear families, life insurance should be the
first step in financial planning.
Overview of Different Types of Life Insurance :
Types of Life Insurance Overview

Term Life Insurance Provides full risk cover against any type
of eventuality.
Whole Life Insurance Offers life insurance coverage till 100
years of age.
Endowment Life Insurance Provides the combined benefit of life
Policy insurance cum saving.
Money Back Insurance Policy Provides periodic return along with the
benefit of life insurance cover.
Savings and Investment Provides an opportunity to save and gain
Policy long-term investment returns.
Retirement Insurance Plans Helps to create a retirement corpus, so
that you can retire gracefully.
ULIP Life Insurance Plans Offers the benefit of investment cum life
insurance.
Child Insurance Policy Helps to secure the future of your child.
13 | P a g e
1. Term Life Insurance:
Term life insurance is a type of life insurance that provides a death to the
beneficiary only if he insured dies during a specified period. If the policyholder
survives until the end of the period, or term, the insurance coverage ceases
without value and a payout or death claim cannot be made. Term life insurance
is income replacement that remains active for a specified number of years. Term
life insurance is (one of) the most affordable types of life insurance . It can
further be classified into level term insurance, decreasing term life insurance
and increasing term life insurance.
2. Whole Life Insurance:
Whole life insurance is an insurance plan that provides you coverage

throughout your lifetime provided the policy is in force. Whole life insurance
policies also contain a cash value component that increases over time. You can
withdraw your cash value or take out a loan against it as per your convenience.
In addition, in case of your beneficiaries will be redu ced.
3. Endowment Policy:
An endowment policy is defined as a types of life insurance policies that is

payable to the insured if he/she is still living on the policy’s maturity date, or
to beneficiary otherwise. Endowment plans provide you with dual combination
of protection and savings. In this policy, if the insured dies during the term of
the insurance policy, the nominee receives the sum assured plus the bonus or
participating profit or guaranteed additions, if any. T he bonus or profit is paid
for the numbers of years that the insured survives in the policy term.
4. Money Back Policy:
Money back policy gives you money during the policy tenure. It gives you
percentage of the sum assured at regular intervals during your policy term. If
you live beyond the term of the insurance policy then you will receive the
remaining portion of the corpus and the accrued bonus also at the end of the
policy term.
14 | P a g e
But in case of an unfortunate event before the full term of the insurance policy
is over; the beneficiaries are entitled to receive the entire sum assured
regardless of the number of installments paid out. Money back policies are the
most expensive insurance options offered by insurance companies as they
provide returns to the insured during the policy tenure.
5. Savings and Investment Plans:
Savings and investment plans are the types of insurance plans that provide you
the assurance of lump sum funds for you and your family’s future expenses.
While providing an excellent savings tool for your short term and long term
financial goals, these plans also assure your family a certain sum by way of an
insurance cover. This is a broad categorization that covers both the traditional
and unit linked plans.
6. Retirement Plans:
These plans provide you with income during retirement is called the Retirement
Plan. These plans are offered by Life Insurance companies in India and help
you to build a retirement corpus. On maturity, this corpus is invested for
generating a regular income stream which is referred to as pension or annuity.
7. Unit Linked Insurance Plans – ULIPs
ULIPs are a type of life insurance plan that provide you with a dual advantage
of protection and flexibility in investment. It is a type of life insurance where
the cash value of a policy varies according to the current net asset value of the
underlying investment assets. The premium paid is used to purchase units in
investment assets chosen by the policyholder.
8. Child Insurance Policy:
A child insurance policy is a saving cum investment plan that is designed to

meet your child’s future financial needs. It allows your kids to live their dreams
and gives you the advantage to start investing in the children’s plan right from
the time the child is born and provisions to withdraw the savings once the child
15 | P a g e
reaches adulthood. Some child insurance policies do allow intermediate
withdrawals at certain intervals. Life insurance is not just to fulfill the daily
expenses of the family in the absence of breadwinner. It should be capable
enough to bail out the family during large financial exigencies. So, one should
always choose one or two best types of life insurance which can support his/her
family in different stages of life.
How do you select the Right Types of Life Insurance?
• Firstly, set your goals, expectations and other expenses that may crop up
during your lifetime.
• Look for plans that will give our family financial stability when you are
no more.
• Check out the best insurance companies and compare the plans offered
by them.
• Take a close look at the policy inclusions and exclusions, life coverage,
claim settlement ratio and it’s record.
• Consult an advisor for additional information and advice on what is Best
Life Insurance Policy for you and your family.
1.4 (3): Impact of Coronavirus on Life Insurance Sector

Amid the spread of coronavirus various measures are being taken by the
insurance players. COVID-19 has spread in more than 70 countries around the
world and has led to lockdown in India. Due to the outbreak of coronavirus the
need to buy health and life insurance has been realized by many as people want
to ensure best medical treatment for themselves and their family members.
While all the major industries and sectors are getting affe cted, let’s see how it
has impacted the health and life insurance in India.
Impact of Coronavirus on Insurance in India:
The Insurance Regulatory and Development Authority of India has asked the
insurance providers to offer coverage for issues arising due to the new Novel
Coronavirus. And the impact on both life and health insurance is likely .
16 | P a g e
Life Insurance:
A lot of people who have a life insurance cover have been wondering if the
death of the insured will be covered under the existing life ins urance plan. So,
will your insurer compensate your family if you succumb to the coronavirus?
In an existing life insurance policy if an individual pass away due to COVID -

19 then his/her nominees will be provided the policy sum insured as the death
benefit. Here it is important for the nominee or the beneficiary to know that life
insurance policies usually cover death related to medical conditions. It means
that if the deceased person has a life insurance policy then his/her dependents
will be given the policy amount on filing a claim with the insurer.
The death benefit is basically the sum assured amount that the insurance
company is liable to pay to the insured's family in the case of his untimely
demise during the policy term. While purchasing the policy the insurer asks the
policyholder to mention the name of the nominee to whom the insurer will pay
after his/her demise. The amount is mentioned in the policy documents.
However, as per the recent IRDAI regulations, life insurance companies in

India are also offering indemnity-based health insurance plans. They are
basically medical insurance policies that recompense the insured for the actual
hospitalization expenses that are incurred during the treatment i.e. up to the
total sum assured.
And if you are thinking of getting a life insurance policy during this time, then
you need to remember that the insurer will charge the premium based on your
medical conditions and medical history. And there is no denying that pandemic
like COVID-19, is likely to have some impact on your life insurance policy
issuance and the premium amount.
17 | P a g e
In a Nutshell:
Clearly, the spread of coronavirus has impacted our lives in many ways. But
with insurance once does not need to worry about the hospitalization cost, as it
is easier to avail treatment in one of the best hospitals. However, with hygiene
and social distancing one can minimize the spread. But in case someone gets
diagnosed with this new virus then both health and life insurance policies have
you covered. The impact of coronavirus is visible in almost all the sectors, and
insurance companies are also improvising and launching custom -made plans to
cater to the needs of the customers, which is the need of the hour!
1.4(4): Features and Benefits of Life Insurance in India:
The average penetration and density of life insurance in India is a measly

2.76%. There have been improvements in this arena but overall the growth has
been rather slow in India. Not many people are aware of the benefits of life
insurance and the numbers for penetration are an indicator of the same.
Accidents and mishaps are strong indicators of how fragile human life can be
and how we need to systemically insure our lives. It is an important tool for
providing an individual's family with safety and security. It acts as a protective
cover to safeguard the insured's dependents. In the event individuals do not
insure their lives, their dependents end up facing the tragic loss of their loved
one along with a whole host of liabilities such as rent, loans, EMI' s and child
services.
Life insurance is crucial for families to feel security and a sense of confidence
to continue their lives without losing their everyday stability. To help
understand the key features and advantages of life insurance, here's a quick
lowdown.
18 | P a g e
Features of Life Insurance Plans:
• Policyholder : Policyholder is the individual who pays the premium for

the life insurance policy and signs a life insurance contract with a life
insurance company.
• Premium: A premium is the cost the policyholder pays the life insurance
company for covering his/her life.
• Maturity: Maturity is the stage at which the policy term is completed and
the life insurance contract ends.
• Insured: Insured is the individual whose life is secured via the life
insurance. After his/her death the insurance company is accountable to
provide a financial amount to the dependents.
• Sum Assured : The amount the insurance company pays the dependents of
the insured if those events occur which are specified in the life insurance
contract.
• Policy Term : Policy term is the specified duration (listed in the life
insurance contract) for which the insurance company provides a life cover
and the time period during which the contract is active (listed in the life
insurance contract).
• Nominee: A nominee is an individual listed in the life insurance contract
who is entitled to receive the predetermined compensation, as a part of
the policy.
• Claim: On the insured's demise, the nominees can file a claim with the
insurance provider in order to receive the predetermined payout amount.
Key Advantages of life Insurance Policy in India:
Death Benefits : Life insurance enables individuals to protect themselves and their
families, in case of any unfortunate happening in the life of the insurer. The
insurer pays an amount equivalent to the sum assured as specified in the
contract along with applicable bonuses. This is known as the death benefit.
• Investment Components : Certain whole life insurance policies offer

two-pronged benefits of both insurance and investment. While one half of
19 | P a g e
your premium is paid toward insurance, the other half is invested in
equity, debt or combinations of both. You get the best of both worlds with
a protective covering as well as high returns on your investments. You
can make the most of this component by investing in funds that align with
your investment horizon and risk appetite.
• Maturity Benefits : Life insurance policies can also double as a savings

instrument by offering maturity benefits. If the insured survives the policy
term and no claims have been made, the total premiums paid are returned
at the time of maturity of the policy. In this manner, your life insurance
plan can have a savings component, while also offering a protective cover.
• Tax Benefits : Under the umbrella of Section 80C of the Income Tax
Act (ITA), individuals can reduce their tax liabilities by investing in
specific instruments. Term insurance is one of them. Under section 80C,
the premium paid for your life insurance policy is eligible to attain a
maximum tax deduction for up to Rs.1.5 lakh. In addition to this, under
Section 10(10D), any payouts you receive from your insurance policy are
completely tax-free.
• Coverage Against Liabilities: To fulfill your dreams and attain your

goals, you may have required a certain amount of financial support - in
the form of loans, mortgages and other types of debt. Be it student loans
or credit card debt, dealing with such liabilities can be a source of great
financial strain, without a steady stream of income. While you may have
the funds to pay off a part of your loans now, your family may find it
difficult to manage such liabilities in the event of your unfortunate
demise, owing to the loss of income.
• Riders : You can opt for riders to enhance your life insurance coverage.
A number of riders, ranging from Critical Illness to Accidental Total
Permanent Disability are available and help protect you and your loved
ones against instances wherein your life cover may not come into play.
20 | P a g e
1.5 : TOP LIFE INSURANCE COMPANIES IN INDIA:
Insurance Companies Insurance Companies
1. Life Insurance Corporation of 2. HDFC Life Insurance Company

India
3. SBI Life Insurance Company 4. ICICI Prudential Life Insurance

Company
5. Max Life Insurance Company 6. Bajaj Allianz Life Insurance

Company
7. Kotak Mahindra Life Insurance 8. Aditya Birla Life Insurance

Company
9. TATA AIA Life Insurance 10. IndiaFirst Life Insurance

Company Company
11. PNB MetLife Insurance 12. Canara HSBC OBC Life

Company Insurance Company
13. Reliance Nippon Life Insurance 14. Exide Life Insurance Company
Company
15. Bharti AXA Life Insurance 16. Star Union Dai-Ichi Life
Company Insurance Company
17. Future Generali Life Insurance 18. Shriram Life Insurance

Company Company
19. Ageas Federal Life Insurance 20. Pramerica Life Insurance

Company Company
21. Aviva Life Insurance Company 22. AEGON Life Insurance

Company
23. Sahara India Life Insurance 24. Edelweiss Tokio Life Insurance
Company Company
21 | P a g e
1.6: PROFILE OF THE ORGANISATIONS:
1. Life Insurance Corporation of India:
The Life insurance Corporation of India was established on 1 September 1956,

when the Parliament of India passed the Life Insurance of India Act that
nationalized the insurance industry in India. Over 245 insurance companies and
provident societies were merged to create the state-owned Life Insurance
Corporation of India.
As of 2019, Life Insurance Corporation of India had total life fun d of ₹28.3
trillion. The total value of sold policies in the year 2018 –19 is ₹21.4 million.
Life Insurance Corporation of India settled 26 million claims in 2018 –19. It has
290 million policy holders.
o Types Of Life Insurance Plans:

• Endowment Plan
• Term Assurance Plans
• Rider
• Money Back Plans
• Whole Life Plans
22 | P a g e
2. HDFC Life Insurance Company:
HDFC Standard Life Insurance Company is a private company providing long

term insurance services to the customers. This company was founded in the
year 2000 by Hasmukhbai Parekh and it head-quartered in Mumbai, India.
HDFC Life Insurance Company provides employment to more than 13,771
employees and has a presence in over 980 cities spread across India.
o Types of HDFC Life Insurance Plans:

• Term Plans
• Retirement Plans
• Health Plans
• Investment Plans
• Child Plans
• Woman Plans
3. SBI Life Insurance Company:
Founded in the year 2001, as a joint venture between State Bank of India and
BNP Paribas Cardif, two highly distinguish service provider in financial
domain. SBI holds 74% of the capital and BNP Paribas Cardif holds 26% of the
capital.
o Types of SBI Life Insurance Plans:

• Individual Plans
• Group Plans
• Online Plans
4. ICICI Prudential Life Insurance:
ICICI Prudential Life Insurance Company is a joint venture between the ICICI
Bank, and Prudential Plc., a leading international financial services group
headquartered in the United Kingdom. ICICI Bank holds 74% and Prudential
Plc. Having 26% of the stake of the joint venture as per the government rules.
23 | P a g e
o Life Insurance Plans:
• ICICI Pru Term Plans

• ICICI Pru ULIP Plans
• ICICI Pru Pension Plans
• ICICI Pru Child Insurance Plans
• ICICI Pru Investment Plans
• ICICI Pru Group Insurance Plans
• ICICI Pru Rural Plans
5. MAX Life Insurance Company:
Max Life Insurance Company Limited is a joint venture between Max Financial
Services Limited and Axis Bank Limited. Max Financial Services Limited is a
part of the Max Group, an Indian multi business corporation. Max Life has a
total claim paid ratio of 99.35% as per the annual audited financials for the FY
20-21. Max Life offers comprehensive protection and long-term savings life
insurance solutions, through its multichannel distribution including agency and
third-party distribution partners.
o Types of life insurance plans:
• Best Max Life Insurance Plans

• Max Life Insurance Plans for Senior Citizens in India
• Max Life Insurance Plans for Child
• Max Life Insurance Riders
6 Bajaj Allianz Life Insurance Company:
Bajaj Allianz Life Insurance Company is one of the most popular and reputed
life insurance providers in India. The company is a joint venture of two titans’
groups namely Bajaj FinServ Limited and Allianz SE. In this joint venture,
Bajaj FinServ Limited holds 74% and the remaining 26% is held by Allianz,
SE. This joint venture is a leading conglomerate known for offering top -notch
products and dedicated customer service.
24 | P a g e
Bajaj Allianz Life Insurance company, which started its operation in 2001, has
a wide presence i.e. 582 branches across India. The company offers a strong
portfolio of life insurance products like life insurance, health insurance, car
insurance, bike insurance, travel insurance, etc. to meet the insurance needs of
their customers. All these products are designed to offe r financial security and
financial support to their customers.
o Bajaj Allianz Life Insurance Plans:
• Bajaj Allianz Unit Linked Insurance Plan

• Bajaj Allianz Term Plans
• Bajaj Allianz Child Plans
• Bajaj Allianz Retirement Plans
• Bajaj Allianz Investment Plans
• Bajaj Allianz Savings Plan
• Bajaj Allianz Health Plans
7. Kotak Mahindra Life Insurance Company
Kotak Mahindra Life Insurance Company Limited (Kotak Life) is a 100%

owned subsidiary of Kotak Mahindra Bank ltd. (Kotak). Kotak Life provides
world-class insurance products with high customer empathy. Its product suite
leverages the combined prowess of protection and long-term savings.
o Types of Life Insurance Plans:
• Protection Plan
• Savings & Investment Plan
• Retirement Plan
8. Aditya Birla Sun Life Insurance Company:
Aditya Birla Sun Life Insurance Company Limited (ABSLI) is a joint venture
between the Aditya Birla Group and Sun Life Financial Inc., an international
financial services company from Canada. Aditya Birla Sun Life Insurance has
contributed to the growth and development of the life insurance industry.
25 | P a g e
Their customer base comprises of over two million policy holders. The
company offers a complete range of plans comprising protection solutions,
children’s future solutions, wealth with protection solutions, hea lth and
wellness solutions, retirement solutions and savings with protection solutions.
Its distribution network is in over 500 cities, 560 branches, around 85,000
empanelled advisors and over 140 partnerships with corporate agents, brokers
and banks.

• Life Term Solutions
• Savings with Protection
• Children’s Future solutions
• Pension Solution Plan
• Ulip solution Plans
• Rural
• NRI
9. TATA AIA Life Insurance Company:
Tata AIA Life Insurance Company Limited (Tata AIA Life) is a joint venture
company, formed by Tata Sons Pvt. Ltd. And AIA Group Ltd. (AIA). Tata AIA
Life combines Tata’s pre-eminent leadership position in India and AIA’s
presence as the largest, independent listed pan-Asian life insurance group in
the world spanning 18 markets in the Asia Pacific region.

• Protection Plans
• Wealth Plans
• Savings Plans
• Group Plans
• Micro Insurance Plans
26 | P a g e
10. IndiaFirst Life Insurance Company:
Headquartered in Mumbai, IndiaFirst is a life insurance company promoted by

two large public sector banks – Bank of Baroda and Andhra Bank along with
Legal and General, UK’s leading risk, wealth and investment company. Bank
of Baroda holds 44% stake in the company, while Andhra Bank and Leg al
General have 30% and 26% stakes respectively.
o Types Of Life Insurance Plans:

• IndiaFirst Term Plans
• IndiaFirst ULIP Plans
• IndiaFirst Child Plans
• IndiaFirst Investment Plans
11. PNB MetLife India Insurance Company:
PNB MetLife India Insurance Company Limited (PNB MetLife) is a life

insurance company in India. It is a joint venture between MetLife International
Holdings Inc. (MIHI), Punjab National Bank Limited (PNB), Jammu &
Kashmir Bank Limited (JKB), M.Pallonji and company Private Limited and
other private investors, with MIHI and PNB being the major shareholders.
Earlier known as MetLife India, PNB MetLife is present in India since 2001.

• PNB MetLife Term Plans
• PNB MetLife ULIP Plans
• PNB MetLife Child Plans
• PNB MetLife Investment Plans
12. Canara HSBC OBC Life Insurance Company:
The company is a joint venture between Canara Bank, HSBC Insurance (Asia
Pacific) Holding Ltd and Oriental Bank of Commerce (OBC). In this venture,
Canara Bank owns 51% equity while HSBC Insurance and OBC own 26% and
23% equity respectively. Launched on 16 June 2008, the Company has
27 | P a g e
exclusive access to around 60 million customers and a pan -India network of
around 7000 branches of the three shareholder banks.

• Canara HSBC OBC Life Insurance Term Plans
• Canara HSBC OBC Life Insurance ULIP Plans
• Canara HSBC OBC Life Insurance Child Plans
• Canara HSBC OBC Investment & Traditional Plans
13. Reliance Nippon Life Insurance Company:
Reliance life insurance is an integral part of Reliance Capital. Reliance capital

is a financial service provider in India. It has a diversified business in terms of
asset management, mutual funds, and insurances of all kind , commercial
finance and other related financial activities. With a net worth of Rs.13547
crore and assets worth Rs.47440 crore, Reliance capital has proved to be the
largest financial service provider in India. With over 10 million policy holders,
more than 717 branches and 63016 agents, the company has proved its w orth
as the largest non-bank supported private life insurer.
o Types of Reliance Life Insurance Plans:

• Protection plans
• Retirement plans
• Health plans
• Savings and investment plans
• Child plans
• Unit Linked plans
• Solutions for groups
28 | P a g e
14. Exide Life Insurance Company:
Exide Life Insurance Company Limited, is an established and profitable life

insurance company, which commenced operations in 2001-02. The Company is
head quartered in Bengaluru. It manages assets of INR18,381 Crores (as on 31
March, 2021). Exide Life Insurance distributes its products through multiple
channels viz. Agency, Bancassurance, Corporate Agency & Broking, Direct
Channel and Online. The Agency channel comprises of 40,000+ advisors
attached to across 200 locations across the country (as on 31 March 2021). The
company offers individual as well as group life insurance solutions.

• Exide Life Term Plans
• Exide Life Savings & Investment Plans
• Exide Life Child Plans
• Exide Life Pension Plans
15. Bharti AXA Life Insurance Company:
Bharti AXA Life Insurance is a joint venture between the Indian conglomerate
Bharti Enterprises and the AXA Group, a multinational investment -banking
firm headquartered in Paris. In this joint venture, Bharti owns 74% of the stake
and AXA owns the remaining 26%. Bharti Enterprises is in the country’s
pioneer in the telecom sector under the name of Bharti Airtel Limited. Having
customer base over 70million, it is India’s private-sector provider of
telecommunications services.
o Bharti AXA Life Insurance Plans:

• Bharti AXA Life Insurance Term Plans
• Bharti AXA Life Insurance ULIP Plans
• Bharti AXA Life Insurance Child Plans
• Bharti AXA Life Insurance Investment Plans
• Bharti AXA Life Insurance Pension Plans
29 | P a g e
16. Star Union Dai-Ichi Life Insurance Company:
Star Union Dai-Ichi Life Insurance Co. Ltd. (SUD Life) is a joint venture (JV)
of India’s two leading public sector banks – Bank of India, Union Bank of India
and Dai-Ichi- Life, the 2 nd largest life insurance company in Japan. The
consortium of three leading financial service provider, makes the SUD life
insurance plans as the paramount insurance solution and crafted to suit the
protection needs of larger mass on Indian Population. With over 1564 branches
to offer the cater the insurance needs of larger rural population, SUD Life
pledge a long-term commitment towards their customers and stake holders and
have earned the trust of 64 million customers.
o Star Union Dai-Ichi Life Insurance Plans :

• Child Plans
• Protection Plans
• Saving Plans
• Wealth Plans
• Retirement Plans
17. Future Generali India Life Insurance Company:
Future Generali Life Insurance Company Ltd. is a joint venture between the
Future Group, Generali Group, and Industrial Investment Trust Limited (IITL).
Future Group is a leading business house with multiple businesses spanning
across the retail space. The company has presence in multiple consumer -centric
businesses like retail, consumer finance, capital, insuran ce, media, brands, and
logistics. It owns and manages multi retail formats such as Pantaloons, Big
Bazaar, Central, Food Bazaar, and Home Town.

• Future Generali Term Plans
• Future Generali ULIP Plans
• Future Generali Child Plans
• Future Generali Investment Plans
• Future Generali Pension Plans
30 | P a g e
18. Shriram Life Insurance Company:
Shriram Life Insurance is an insurance provider in rural market. The diverse

insurance plans offered to cater the need of insurance for mass public and
economically weaker section of society.
o Shriram Life Insurance Plans:

• Child Life Insurance Plans
• Term Life Insurance Plans
• Pension Life Insurance Plans
• Investment Linked Life Insurance Plans (ULIP)
• Combi Life Insurance Plans
• Endowment Life Insurance Plans
• Group Life Insurance Plans
• Micro Life Insurance Plans
• Savings Plans
• Women Life Insurance Plans
19. Ageas Federal Life Insurance Company:
Ageas Federal Life Insurance Co. LTD (previously recognized as IDBI Federal
Life Insurance Co LTD) is one of the fastest-growing life insurance
organizations in India. The company provides a vast range of retirement, wealth
management, and protection solution to corporate customers and individuals.
Ageas Federal Life Insurance Co LTD is a joint venture of IDBI Bank, India’s
premier commercial and premier development bank, and Federal Bank, a
leading bank of India in the private sector, and Ageas, a multinational insurance
company of Europe.
o Ageas Federal Life Insurance Plans:

• Ageas Federal Term Plans
• Ageas Federal ULIP Plans
• Ageas Federal Investment Plans
• Ageas Federal Child Plans
• Ageas Federal Pension Plans
31 | P a g e
20. Pramerica Life Insurance Company:
Headquartered in Gurgaon, Pramerica Life Insurance Company Limited

(formerly known as DHFL Pramerica Life Insurance Company) is a leading
insurance company in India. The company started its operations in 2008 across
the country and is collaboration between Prudential International Holdings and
DHFL Investments Limited, an entirely owned subsidiary of DHFL (Dewan
Housing Finance Corporation LTD.). Ever since its inception, the company has
made extensive growth in terms of its customer support, distri bution networks,
and annual premium. It has a PAN India presence with 135 branches and 2190
employee at present and around 2.1 million lives are secured with its life
insurance policies.
o Pramerica Life Insurance Plans:

• DHFL Pramerica Life Insurance Plans
• DHFL Pramerica Life ULIP Plans
• DHFL Pramerica Life Child Plans
• Pramerica Life Savings Plan
• DHFL Pramerica Life Retirement Plans
21. Aviva Life Insurance Company:
Aviva Life Insurance Company is formed between Dabur Invest Corp and
Aviva Group. Dabur Invest Corp is producing traditional healthcare products
since time immemorial. Aviva Group is a UK based insurance group serving 31
million customers across 16 countries. Together Aviva Life Insurance has
become a key player in the sector quality products and efficient service.
o Aviva Life Insurance Plans:

• Aviva Life Insurance Term Plan
• Aviva Life Insurance Child Plan
• Aviva Saving Plan
• Aviva Retirement Plan
• Aviva Endowment Plan
• Aviva Life Insurance Group Plan
32 | P a g e
22. AEGON Life Insurance Company:
AEGON Life Insurance Company Limited launched its operations in India in

July, 2008 and since then has emerged as a strong player in the insurance
industry. Currently, the company enjoys a good market share and has launched
different types of life insurance products for meeting all the varied needs of
individuals at attractive premium rates.
o Aegon Life Insurance Plans:

• Term Insurance
• Health Insurance
• ULIPs
• Saving Plan
• Retirement plan
• Child Plan
• Rural Plan
• Group Insurance Plan
23. Sahara India Life Insurance Company:
Sahara India Pariwar entered the life insurance industry in the year 2004 as
India’s first wholly Owned Private Life Insurance Company with copious
presence in most parts of the country. The core objectives of the company has
been to reach out the country to all segments of society not only to the
privileged and urban based but to those belonging to the middle clas s and living
in the rural areas as well. With the state-of-the-art technology, Sahara India
offers extensive range of competitive products to caters the insurance ne eds of
individuals of all ages and segments.

• Unit Linked Plans
• Money Back Plans
• Endowment Plans
• Term Assurance Plans
• Group Insurance Plans
33 | P a g e
Apart from the above segments, Sahara India offers add -on plans such as
Accident Benefit and Critical illness Riders
24. Edelweiss Tokio Life Insurance Company:
Establish in 2011, Edelweiss Tokio Life Insurance Company LTD is a new age
life insurance player in India. It is a joint venture between Edelweiss, a leading
financial service company established in India and Tokio Marine, a life
Insurance companies in Japan. The stake of the company is divided into a ratio
of 74:26 between Edelweiss and Tokio Marine respectively.

• Edelweiss Tokio Life Terms Plans
• Edelweiss Tokio Life ULIP Plans
• Edelweiss Tokio Life Child Plans
• Edelweiss Tokio Life Pension Plans
• Edelweiss Tokio Life Investment Plans
34 | P a g e
CHAPTER 2: RESEARCH METHODOLOGY
2.1: STATEMENT OF THE PROBLEM:
This study will help us to understand the consumer’s perception about life
insurance policies. This study will help the companies to understand, how a
consumer selects, organizes and interprets the Quality of services and product
offered by life insurance companies.
2.2: SCOPE OF THE STUDY:
This study is limited to the consumers. The study will be able to reveal the
preferences, needs, perception of the customers regardi ng the life insurance
products. It also helps the insurance companies to know whether the existing
products are really satisfying the customer needs.
2.3: NEED OF THE STUDY:
1. The deeper the company understands of consumer’s needs and

perception, the earlier the product is introduced ahead of competition,
the greater the expected contribution margin. Hence the study is very
important.
35 | P a g e
2. Consumer markets and consumer buying behavior can be understood
before sound product and marketing plans and developed.
3. This study will help companies to customize the service and product,
according to the consumer’s needs.
4. This study will also help the companies to understand the experience
and expectations of the existing customers.
5. Apart from creating, manufacturing and distribution capabilities for
life insurance products, an in depth study of the consumers, their
preferences and demand for their product is very necessary for setting
up an efficient marketing network.
2.4: OBJECTIVES OF THE STUDY:
1. Ascertain the profile and characteristics of potential buyers.

2. To gain a thorough understanding of the attributes that prospective
buyer’s ascribed to life insurance policies.
3. To have an insight into the attitudes and behaviors of customers.
4. To find out the differences among perceived services and expected
services.
5. To produce an executive service report to upgrade service
characteristics of life insurance companies.
6. To understand consumer’s preferences.
7. To access the degree of satisfaction of the consumers with their
current brand of Insurance products.
8. To compare the differences in consumer perception of male and
female consumers.
9. To develop and standardize a measure to evaluate investment pattern
in life insurance services.
10. To open new vistas for further researchers.
36 | P a g e
2.5: SAMPLE DESIGN:
The process of drawing a sample from a large population is called sampling.

Population refers to the total of items about which information is defined.
Well selected samples may reflect fairly and accurately the characteristics of
the population.
2.5.1: Sampling Unit: The sample unit of this survey was the students and
private employees who have basic idea of life insurance policies or who have,
or their family have life insurance policies.
2.5.2: Sampling Size: The sample size was 100 responders who have basic
idea of life insurance policies or who have, or their family have life insurance
policies.
2.5.3: Sampling Technique Adopted: Convenient sampling
2.6: SOURCE OF DATA:
After identifying and defining the research problem and determining specific
information required to solve the problem the researcher will look for the type
and sources of data which may yield the desired results, while deciding about
the method of data collection to be used for the study, there are two types of
data.
They are as follows-
2.6.1: Primary Data: Primary data are those which are collected for the first
time. Primary data is collected by framing questionnaires. The questionnaire
contained questions which are both open-ended and close-ended. Open-ended
questions are questions requiring answers in the responders own words. Closed-
ended questions are those wherein the respondent has to merely check the
appropriate answer from list of options available. Any doubts raised by the
respondents were clarified to get the perfect answers from the distributors.
Open-ended questions yielded more insightful information, whereas closed -
ended questions were relatively simple to tabulate and analyze.
37 | P a g e
2.6.2: Secondary Data: Secondary data means data that are already available
i.e. they refer to the data which have been collected and analyzed by someone
and can save both money and time of the researcher. Secondary data may be
available in the form of company records, trade publications, libraries etc.
Secondary data sources are as follows:
• Various websites
• Company reports
2.7 FIELD WORK:
Well-structured questionnaire is administered to the target respondents to

collect primary data (copy of questionnaire is attached in the appendix). Open
and close ended questions are used in the questionnaire. The order of the
questions is in such manner that they begin with simple questions and lead on
the questions that needed more involvement from respondents. The secondary
data are collected from previous research papers, from company reports and
internet.
2.8: RESEARCH DESIGN:
Research design is a basic plan which guides the researcher in the collection
and analysis of data required for practicing the research. Infant the research
design is the conceptual structure which the research is conducted. It constitutes
the ‘blue print’ for the collection, measurement and analysis of the data. The
study is carried out to understand the Consumer Perception about Life
Insurance policies in India. For this study the researcher used exploratory
research design. This research covers 100 responders who have basic idea of
life insurance policies or who have, or their family have life insurance policies,
belonging to various age groups.
38 | P a g e
2.9: OPERATIONAL DEFINITIONS OF THE STUDY:
1. Marketing: Marketing is a social and managerial process by which

individuals and group obtain what they need and want through creating,
offering and exchanging products of value with others.
2. Marketing Management: Marketing management is the process of planning

and executing the conception, pricing, promotion and distribution of individual
and organizational goals.
3. Marketing Research: Marketing research is the systematic and objective

search for, and analysis of information relevant to the identification and
solution of any problems in the field of marketing.
4. Consumer Behavior: Consumer behavior is the study of how individuals

make decisions to spend their available resources (time, money and efforts) on
consumption related items.
5. Consumer Research: Consumer research is the methodology used to study

consumer behavior.
6. Market Segmentation: Market segmentation is the process of dividing a

market in the distinct subsets of consumer with common needs or
characteristics and selecting one or more segments to target with distinct
marketing mix.
7. Positioning: Positioning is the act of designing the company’s offering and

image so that they occupy a meaningful and distinct competitive position in the
target consumer’s mind.
8. Perception: Perception is the process by which an individual selects,

organizes, and interprets information input to create meaningful picture of the
world. For a marketer to influence a motivated buyer to buy their products
rather than a competitors they must be careful to take the pe rception process
into account while designing their marketing campaigns, perception therefore
influence what product consumer buys.
39 | P a g e
9. Brand: A brand is a name, term, sign, symbol, or design or a combination
of them, used to identify the goods or services of one seller or group of seller
and differentiates them from those of competitors.
10. Attitude: An attitude is a person enduring favorable or unfavorable

evaluation, emotional feeling, and action tendencies towards some object or
idea.
11. Values: A value is a concept of the desirable. An internalized standard of

evaluation a person possession these standards determine or guide an individual
evaluation of the many objects encountered in everyday life.
12. Attributes: Attributes are the strengths and weaknesses of a brand that
create attitudes and are used by consumers to choose between brands that are
relatively similar or functionally equivalent.
2.10: LIMITATIONS OF THE STUDY:
Although the study was carried out with extreme enthusiasm and careful
planning there are several limitations which handicapped the research –
1. Time constraints: The time stipulated for the project to be completed is

less and thus there are chances that some information might have been left out,
however due care is taken to include all the relevant information.
2. Sample size: Due to time constraints the sample size was relatively
small and would definitely have been more representatives if I had collected
information from more respondents.
3. Accuracy: It is difficult to know if all the respondents gave accurate

information; some respondents tend to give misleading information.
40 | P a g e
CHAPTER 3: LITERATURE REVIEW
To carry the research, work the researcher has gone through a few research
papers, websites and company’s reports. The details regarding Life Insurance
Industry, history, origin and growth of the industry is also taken from some
research papers, company’s reports, various websites etc. The sources of this
information are as follows:
• Report data from various life insurance companies.

• Basic data from previous research papers.
• Information from various websites.
3.1 REVIEW OF LITERATURES:
Mouna Zerriaa and Hedi Noubbigh (2015), in their research paper,

“Determinants of Life Insurance Demand in the MENA Region” have tried to
investigate the determinants of life insurance consumption in the Middle East
and North Africa (MENA) region using a sample of 17 countries over the period
2000- 2012.They have used two measures of life insurance demand: insurance
density and insurance penetration. This research states that consumption
increases with income, interest rates and inflation and also it highlights that
country’s level of financial development, life expectancy and educational
attainment stimulates life insurance demand in a nation.
41 | P a g e
Luqman Adedamola Sulaiman, Stephen Migiro, Tessema Yeshihareg (2015),
from south Africa in their research work, “Investigating the factors influ encing
the life insurance market in Ethiopia” have made a study using secondary data
on eleven independent variables – six of which are economic and five
demographic variables for a period of 28 years from 1979/1980 to 2007/2008
and for analysis purpose error correction mechanism (ECM), the Johansen co
integration test and the Augmented Dickey-Fuller test were utilized. The study
found that Inflation had a statistically noticeable negative impact on the
demand and supply in the life insurance market. In addition, there was a
statistically significant negative effect of young dependency ratio on life
insurance market demand while old dependency ratio had a statistically
significant positive relation to life insurance supply.
The researchers have recommended that during high inflation, life insurance
companies should revise price decisions to enhance the life insurance market
and to minimize the inverse effect of young dependants; insurers need extensive
sensitization on the young age through their families and promote products that
suit the young children – such as children’s education policies. C.Balaji (2015),
in his paper- Customer awareness and satisfaction of life insurance policy
holders with reference to Mayiladuthurai town tries to measure awareness
among the urban and rural consumer about the insurance sector and also the
various policies involving various premium rates. The study was conducted by
examining around 100 sample respondents which revealed that 100% of
respondents are aware of the life insurance policies; whereas 87% of the
respondents came to know about insurance policies through agen ts. But it also
came to light that Most of the respondents are aware of government insurance
company LIC and in the private sector HDFC Standard Life insurance.
Finally, the research concludes that the penetration level of insurance in India
is only 2.3% when compared to 9-15% in the developed nations. So there is a
huge market for the Insurance products in the future in India. Venkataramani.K,
Dr.R.Mohan Kumar, Dr.G.Brinda (2015), in their article, “A study on the
attitude of Consumers and Insurance Agents towards the proposed increase in
42 | P a g e
Foreign Direct Investment (FDI) in Insurance sector in India” have conducted
quantitative survey to gauge the attitude of public and the insurance agents who
are doing the business on behalf of the insurance companies tow ard the decision
of government of India to rise the cap in FDI in insurance sector from 26% to
49%.The study was conducted in Chennai city with a study sample of 200 which
consist of insurance customers and insurance agents And the study focused on
four major factors like impact on economy, impact on service to customers,
general benefits, impact on insurance business/market.
The study on the bases of analysis of the results revealed that respondents of
the study perceived that proposed rise in the FDI cap in the insurance sector
will have much higher impact on the service level of the insurance companies
than on the other factors such as impact on economy, overall benefits to the
customers, impact on insurance business & indicated that the general
respondents of the study welcomed the move by the government to increase the
FDI cap in insurance. In particularly common people are satisfied with the
service of the private insurance companies and expected that the service will
be still better if the competition in the industry increases further.
K.V.Ramanathan (2011) in his article “A study on policy holder’s satisfaction

with reference to Life Insurance Corporation of India” identified a reliable and
valid instrument for assessing customer perceived service qu ality, awareness
level, and satisfaction level of customer of life insurance industry. Here, service
quality needs to be measured during a six dimensional hierarchal structure
consisting of assurance, competence, personalized financial planning,
corporate image, tangibles and technology dimensions. This would help the
service managers to efficiently allocate resources, by focusing on important
dimensions first.
C. Balaji (2015), in his paper- Customer awareness and satisfaction of life

insurance policy holders with reference to Mayiladuthurai town tries to measure
awareness among the urban and rural consumer about the insurance sector and
43 | P a g e
also the various policies involving various premium rates. The study was
conducted by examining around 100 sample respondents which revealed that
100% of respondents are aware of the life insurance policies; whereas 87% of
the respondents came to know about insurance policies through agents. But it
also came to light that Most of the respondents are aware of government
insurance company LIC and in the private sector HDFC Standard Life
insurance. Finally the research concludes that the penetration level of insurance
in India is only 2.3% when compared to 9-15% in the developed nations. So
there is a huge market for the Insurance products in the future in India.
Dr Sunayna Khurana (2013), in her article, “Analysis of Service Quality Gap

in Indian Life Insurance Industry” says that Life insurance companies in India
offer similar kinds of plans and services, but they could provide differences in
terms of service quality .In this context this research tried to find out the gap
between Customer expectation & customer perception in the Life i nsurance
industry by examining a Sample of 200 customers of 10 top performing Life
insurance companies in Haryana state. The study found that there is highest gap
in customer expectations and perceptions towards the competency dimension
of service quality. That means customers are expecting high service quality and
perceiving very less quality in case of services related to competency
dimensions.
Sonal Nena (2013), in her study-“Performance Evaluation of Life Insurance

Corporation (LIC) of India” has tried to analyze growth and performance of
LIC. She analyzed the major source of income (Premium Earned) of the LIC,
as well as the significant heads of expenses of LIC to measure the performance
.This study has proved that LIC has been success in terms of creat ing value for
its policyholders. The performance evaluation also showed consistent increase
in its business. During the study period there was no major change in the
performance of the LIC. So it was finally concluded that performance remained
unchanged and LIC has maintained the market value of their products.
Syed Ibrahim (2012), in his research “Consumers’ Grievance Redressal

System in the Indian Life Insurance Industry - An Analysis” attempts to review
on consumer protection and the awareness with reference to the grievances
44 | P a g e
settlement operations of the Life Insurance Industry in India. The study was
based on relevant secondary data which was been collected mainly through the
data bases of Insurance Regulatory Development Authority of India (IRDA),
Reserve Bank of India (RBI), various reports and other studies for a period of
5 years. The research based on various statistical analyses revealed that LIC
has succeeded in resolving consumer’s grievances when compared to the
private insurers but even private players were active in resolving the grievances
only in performance year ends .The paper also highlight that IRDA has recently
established the Consumer Affairs Department to give a special focus to and
oversee the compliance by insurers of the IRDA Regulations for Protection of
Policyholders’ Interests and also to empower consumers by educating them
regarding details of the procedures and mechanisms that are available for
grievance redressal.
Banana, K et al (2018) stated that insurance is a protection against economic

arising due to an unexpected event. Manohar Giri (2019) in his study stated
that life insurance plays a predominant role in securing the life of the individual
as well as protect their family at the time of death of the policyholder.
Debabrata et al (2010) specified that insurance helps in the growth of the
economy by channelizing the individuals’ savings for most productivity
purpose. Muthusamy A et al (2016) highlighted the importance of insurance
and its safety protection for individuals to encourage savings habit among
people. Chaudhary et al (2016) stated that insurance protect the policyholders
and also helps in enhancing the savings.
Chaudhary,S. et al (2016) stated that in their research paper examined

the various factors, influencing consumer while purchasing lif e insurance
policies. Mahesh Bhattad (2017) he focused on the effect of distribution
channels and policy sales process. He discussed about the advancement of
technology in insurance companies for the betterment of customer demands
which help insurance market to increase the sales of insurance policy and
analyzed the customer usage of internet to purchase insurance policy. Banana,
K et al (2018) examined the customer perception on claim settlement services
in life insurance companies. He discussed about the growth and development
45 | P a g e
of LIC in India, mainly his study focused on the changing efficiency levels of
claim management. Convenience sampling method was used in his study and
scheduled questionnaire were used to collect data from employees and
customers of LIC.
3.2 LIFE INSURANCE DISTRIBUTION CHANNELS AND ITS

PERCEPTION:
The Indian Insurance industry has witnessed the major growth in the past few
decades. With the introduction of new products and plans, they not only helped
consumers by providing financial protection but also contribute to the nation’s
economy. According to IRDAI India’s life insurance companies clocked
11.36% boom in their collective premium income at Rs 48.26 lakh crore during
the fiscal ended March 2020. Premium income is one of the yard stick to
measure the growth of insurance industry. During the financial year 2018-2019
the life insurance industry Premium income is one of the yard stick to measure
the growth of insurance industry. During the financial year 2018-19 the life
insurance industry collected the premium of Rs. 43.33 lakh crore.
Through the growth of life insurance industry witnessed growth the giant
insurance company i.e, the LIC witnessed decline in the premium. During
March 2020 market share of LIC recorded at 82.76% and other life insurers’
market share registered at 22.54%. The private players are also playing
dominating role in the insurance sector their share in the total premium
recorded at 17.24% (March 31, 2020). Marketing of insurance services is
critical and complex to the periodicity changes in price, settlement process,
claims which affect the buying behavior of the customers. Distribution is one
of the important determinants of success for insurance sector. In order to reach
the customers intermediaries plays a lead role by bridging the gap between the
insured and insurer. The distribution channels play a vital role in insurance
sectors by selling the insurance products based on the need and demand of
policyholders.
The traditional method of distribution channels is replaced by many new

modern channels like Bancassurance, Direct selling, Online Marketing, Micro
46 | P a g e
Insurance and Web aggregators. According to the Insurance Information
institute report 2010 the insurance agents’ market share registered at 48% and
in 2019 it has increased to 53%. Irfan et al (2013) in their study stated that in
India, distribution system has changed and brought many innovations to reach
customer. Internet have a major negative impact with compare to the agent,
However consumer do not prefer to buy policy through internet. PR Chang et
al (2011) opined that traditional sales channels are performing well with
compare to Bancassurance channels, Salesperson of traditional channels sell
policy by diversified financial products, where the bancassurance need more
training about the insurance products.
Sumnider Kaw Bana et al (2016) the life insurance need to improve the
perceptive of the clients regarding various channels by providing awareness,
knowledge and guiding to the policyholder about the policy and procedure of
distribution channels. Sanketh (2017) stated in his article that in India the life
insurance industry is dominated by the individual agent (41%). Now a day’s
awareness about insurance policies is created through social media which make
policyholder to select right policies and choose right distribution channels by
comparing all the channels through using technologies. They concluded that
selecting of distribution channels is based on the perception of the customers.
Chattha. S et al (2018) stated that advancement in technology and increasing
demands of customer helped insurance sector to become more competitive in
market.
There are various definitions provided by researchers regarding the perception

According to Shibani Barah (2019) “perception is a belief or an opinion, often
held by many people and based on how things seem Kotler (1997) define
customer perception as “is the process by which a customer selects, organizes
and interprets information to create a meaningful picture of a particular thing”.
Customer perception is a process by which a customer view certain matter
based on the certain factors such as price and overall experience. When it comes
to influencing customer to purchase the policies of a particula r life insurance
policy, their perception of the distribution channels is taken into account. The
perception is varying from customer to customer based on certain demographic
factor. Perception about the particular policies can be developed from a variety
47 | P a g e
of things which includes their own need, experience about the product.
Likewise the perception on selecting distribution channels is based on certain
factor like price, time, service, accessibility, technology etc.
3.3 New Business Statement of Life Insurers for the period ended
30 th September, 2021 (Premium & Sum Assured in Rs. Cr.):
Sr. Insurer No. of policies / schemes
no.
Up to 30th Up to 30th Growth Market
Sept, 2020 Sept, 2021 in % share
1 Aditya Birla Sun life 114424 96616 -15.56 0.93
Individual Single Premium 914 1069 16.96 0.21
Individual Non-single 113201 95458 -15.67 0.97
Premium
Group Single Premium 27 35 29.63 5.97
Group Non-Single Premium 1 2 100.00 0.06
Group Yearly Renewable 281 52 -81.49 0.47
Premium
2 Aegon Life 8753 5657 -35.37 0.05

Premium
Group Single Premium 0 0 NA 0.00
Group Non-Single Premium 0 0 NA 0.00
Premium
3 Ageas Federal Life 15687 17663 12.60 0.17

Individual Single Premium 2251 2251 -32.20 0.44
Individual Non-single 15412 15412 24.63 0.16
Premium
Group Non-Single Premium 0 0 -100.00 0.00
Group Yearly Renewable 0 0 NA 0.00
Premium
4 Aviva Life 9738 8741 -10.24 0.08

Premium
48 | P a g e
Premium
5 Bajaj Allianz Life 188747 186168 -1.37 1.79

Premium
Group Yearly Renewable 27 45 66.67 0.41
Premium
6 Bharti Axa Life 48101 50310 4.59 0.48

Premium
Group Single Premium 7 5 -28.57 0.85
Premium
7 Canara HSBC OBC Life 70243 67529 -3.86 0.65

Premium
Premium
8 Edelweiss Tokio Life 35901 25715 -28.37 0.25

Premium
Premium
9 Exide Life 63258 54825 -13.33 0.53

Premium
Premium
49 | P a g e
10 Future Generali Life 23359 14098 -39.65 0.14
Premium
Premium
11 HDFC Standard Life 444329 409161 -7.91 3.94

Premium
Premium
12 ICICI Prudential Life 278085 287123 3.25 2.76

Premium
Premium
13 India First Life 73257 102101 39.37 0.98

Premium
Premium
14 Kotak Mahindra Life 138679 116050 -16.32 1.12

Premium
Premium
50 | P a g e
15 Max Life 283537 258789 -8.73 2.49
Premium
Premium
16 PNB Met Life 100252 104836 4.57 1.01

Premium
Premium
17 Pramerica Life 12939 12263 -5.22 0.12

Premium
Premium
18 Reliance Nippon Life 83549 73199 -12.39 0.70

Premium
Premium
19 Sahara Life 0 0 NA 0.00

Individual Single Premium 0 0 NA 0.00
Individual Non-single 0 0 NA 0.00
Premium
Premium
51 | P a g e
20 SBI Life 598854 769635 28.52 7.40
Premium
Premium
21 Shriram Life 99471 108379 8.96 1.04

Premium
Premium
22 Star Union Dai-Ichi Life 33219 52150 56.99 0.50

Premium
Premium
23 Tata AIA Life 199652 201115 0.73 1.93

Premium
Premium
Private Total 2924034 3022123 3.35 29.07

Premium
Premium
52 | P a g e
24 LIC of India 6161576 7374125 19.68 70.93
Premium
Premium
Grand Total 9085610 10396248 14.43 100.00

Premium
Premium
Note:
1. The first year Premium in the statement refers to actual premium collected
by life insurers net of only free look cancelations for the period.
2. Compiled on the basis of data submitted by the Insurance companies.
53 | P a g e
CHAPTER 4:
DATA ANALYSIS, INTERPRETATION AND

PRESENTATION
4.1: INTRODUCTION TO ANALYSIS:
We have to extract the meaningful information from the data. The analysis can
be conducted by using simple statistical tools like percentages, averages and
measures of dispersion. Alternatively the collected data may be analyzed
collected; the data analysis is carried out. The data are first edited, coded and
tabulated for analyzing by using diagrams, graphs, charts, pictures, etc. Data
analysis is the process of planning the data in an ordered form, combining them
with the existing information and extracting from them. Interpretation is the
process of drawing conclusions from the gathered data in the study. In this
research the researcher has analyzed the data using percentages and graphs.
4.2: DATA ANALYSIS TOOLS USED:
In this research the data analysis tools used are percentages and graphs. The
various attributes were analyzed separately and the importance to each was
calculated on the basis of the percentage. The rank having maximum percentage
was taken to be preferred importance to the particular attribute. After looking
54 | P a g e
at each attribute separately, all the attributes were considered together to
develop a map on the most preferred rank for the entire attribute.
4.3 SURVEY DATA:
TABLE 1 - Age of Respondents:
Sl. No Age In Years Number Of Percentage Of

Respondents Respondents
1 Below 18 8 8%
2 19-25 62 62%
3 26-30 8 8%
4 31-45 19 19%
5 Above 45 3 3%
Total 100 100%
SOURCE: Survey data
Inference: The above table classified the respondents according to their age
group. The majority of the respondents belong to the age group 19 to 25 years
with 62% and the second age group is 31 to 45 years with 19%, followed by
below 18 years and 26 to 30 years with 8% each and in the last above 45 years
age group with 3%.
PIE CHART 1 – AGE OF RESPONDENTS: -
AGE
3%
8%
19%
8%
62%
below 18 19-25 26-30 31-45 above 45
Interpretation: Majority of the insurance holders are belonging to the age

group of 19-25 years.
55 | P a g e
TABLE 2 - Differentiation of The Respondents into Male And Female:
Types Of Respondents Number Of Percentage Of

Male Respondents 54 54%
Female Respondents 46 46%
Total 100 100%
SOURCE: Survey data
Interference: This table helps us to understand that there is more number of

male consumers with 54% market share than the female consumers with 46%
market share.
PIE Chart 2 – Differentiation of The Respondents into Male And Female:
GENDER
46%
54%
MALE FEMALE
Interpretation: Most of the insurance holders are male people, so we can reach
a conclusion that the male people are more aware about the insurance and it s
importance.
56 | P a g e
TABLE 3 - Differentiation of Respondents Based on Their or Their
Family’s Occupation:
S. No Occupation Number of Percentage of

1 Students 60 60%
2 Government employees 0 00%
3 Private employees 40 40%
4 House wives 0 00%
5 Retired persons 0 00%
Total 100 100%
SOURCE: Survey data
Inference: It could be inferred that majority of consumers of life insurance

policies are students with 60% and private employees with 40%.
PIE CHART 3 – Differentiation of Respondents Based on Their or Their

Family’s Occupation:
OCCUPATION
0% 0%
40%
60%
0%
Students Government employees Private employees

House wives Retired persons
Interpretation: The above pie chart shows that the students and private
employees are the large proportion of insurance holders compared to others
categories.
57 | P a g e
TABLE 4 - Table Showing Income Group Of Respondents Or Respondents’
Families
Sl. Income Group Number of Percentage of

No Respondents Respondents
1 Less than 5000 11 11%
2 5001-10000 10 10%
3 10001-15000 17 17%
4 15001-20000 09 9%
5 20001-25000 11 11%
6 Greater than 30000 42 42%
Total 100 100%
SOURCE: Survey data
Inference: The majority of dominant income group having life insurance

policies belong to the income group of greater than 30000, followed by the
income group of 10001-15000.
PIE CHART 4 – Pie Chart Showing Income of The Respondents or

Respondents’ Families
INCOME
11%
10%
42%
17%
9%
11%
Less than 5000 5001-10000 10001-15000

15001-20000 20001-25000 Greater than 30000
Interpretation: The above chart shows that most of the consumers of insurance
policies are belonging to the income group of greater than 30000.
58 | P a g e
GRAPH 1 - Differentiation of Respondents According to the Assets They
or Their Family Owns:
ASSETS OWNED
House
Two wheelar
Car
None
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
100 50 0
SOURCE: Survey data
Interpretation: This graph shows us to know that most of the consumers with
life insurance policies own house with 77%, 48% of consumers own two
wheelers, 10% of consumers own car and 11% own nothing above all. From
this, we come to know that the preference of consumers buying life insurance
policies changes from person to person according to the assets they own.
59 | P a g e
TABLE 5: Respondents or their Family Having Life Insurance Policies
Number of Respondents Percentage of Respondents

Yes 55 55%
No 45 45%
Total 100 100%
SOURCE: Survey data
Inference: This table helps us to understand that among 100 respondents, 55%
of respondents have life insurance policies and the remaining 45% do not have
any life insurance policies.
PIE CHART 5: Respondents or Their Family Having Life Insurance

Policies
LIFE INSURANCE
45%
55%
YES NO
Inference: The above pie chart shows that most of the respondents have life
insurance policies by 55% and 45% of the majority don’t have any life
insurance policies. Awareness is there regarding life insurance but still, more
awareness needs to be made.
60 | P a g e
TABLE 6: Market Share of Different Life Insurance Companies
Sl. No Companies Number of Percentage of

1 Life Insurance 43 86%
Corporation
2 Hdfc Life Insurance 1 2%
3 Max Life Insurance 4 8%
4 Aditya Birla Life 1 2%
Insurance
5 Tata Aia Life Insurance 1 2%
Total 50 100%
SOURCE: Survey data
Inference: This table helps us to understand the market share of different life
insurance companies. Life Insurance Corporation has a major share of 86%,
followed by Max Life Insurance with an 8% market share, followed by HDFC
Life Insurance, Aditya Birla Life Insurance, and TATA AIA Life Insurance
with the same percentage of market share which is 2% each.
PIE CHART 6: Market Share of Different Life Insurance Companies
MARKET SHARE
2%
2% 2%
8%
86%
Life Insurance Corporation Max Life Insurance

HDFC Life Insurance Aditya Birla Life Insurance
TATA AIA Life Insurance
Interpretation: The above pie chart shows that the most of the life insurance
holders are the consumers of Life Insurance Corporation with an 86% market
share since it can be understood that the people are having more trust in the
Life Insurance Corporation to other private life insurance companies.
61 | P a g e
TABLE 7: Table Showing Attributes from Respondents:
Sl. No Attribute Score Rank

1 Return On Investment 64% 1
2 Company’s Reputation 37% 3
3 Premium Outflow 34% 4
4 Service Quality 52% 2
5 Product Quality 29% 5
SOURCE: Survey data
Inference: This table shows the strengths and weaknesses of the brand, and
what are the important criteria or attributes on which decision making is done.
From this table we can infer that consumers give more imp ortance for return
on investment, secondly they prefer service quality, and then company’s
reputation followed by premium outflow and product quality .
GRAPH 2: Graph Showing Attributes from Respondents (Ranked

According to the Priority)
PRIORITY
Return on investment
Company's reputation
Premium outflow
Service quality
Product quality
0% 10% 20% 30% 40% 50% 60% 70%
100 50 0
Interpretation: The above figure shows the strengths and weakness of the
brand, and what are the important criteria or attributes on which decision
making is done. From this figure we can infer that consumer give more
importance for return on investment, secondly they prefer service quality, and
then company’s reputation followed by premium outflow and product quality.
62 | P a g e
TABLE 8: Factors Which Influenced To Buy Life Insurance Policy:
Sl. Factors Number of Percentage of

1 Personal Interest 42 42%
2 Family 27 27%
3 Friends 4 4%
4 Agents 7 7%
5 Advertisement 4 4%
6 Others 16 16%
Total 100 100%
SOURCE: Survey data
Inference: This table is helped in knowing which media is best suitable for
promoting a life insurance product. It can be seen that personal interest(42%)
influences a consumer to buy life insurance product, followed by family(27%),
others(16%), agents(7%), friends and advertisements (4% each).
PIE CHART 7: Factors Which Influenced To Buy Life Insurance Policy
INFLUENED BY
16%
4%
42%
7%
27%
4%
Personal interest Friends Family Agents Advertisements Other
Interpretation: The above figure shows that the key factor which influenced
the consumers to buy the life insurance product is personal interest, followed
by family, other, agents, friends and advertisements.
63 | P a g e
TABLE 9: Value of Respondent’s Or Their Family’s Life Insurance
Policy:
Sl. Amount Number of Percentage of

1 Lesser Than 10000 12 12%
2 10000-25000 12 12%
3 25000-50000 9 9%
4 50000-100000 16 16%
5 Greater Than 100000 27 27%
6 None 24 24%
Total 100 100%
SOURCE: Survey data
Inference: It can be inferred that majority of consumers buy life insurance

policy which costs more than Rs.1,00,000 followed by Rs.50,000 to
Rs.1,00,000, followed by Rs.10,000 to Rs.25,000 and less than Rs.10,000,
followed by Rs.25,000 to Rs.50,000.
PIE CHART 8: Value of Respondent’s or their Family’s Life Insurance

Policy
VALUE OF POLICY
12%
24%
12%
9%
27%
16%
Less than 10000 10000-25000 25000-50000

50000-100000 Greater than 100000 None
Interpretation: The above chart shows that majority of consumers buy life
insurance policy which costs more than Rs.1,00,000 followed by Rs.50,000 to
Rs.1,00,000, followed by Rs.10,000 to Rs.25,000 and less than Rs.10,000,
followed by Rs.25,000 to Rs.50,000.
64 | P a g e
TABLE 10: Respondents Preference to Invest Their Money:
Number of Percentage of
Insurance Company 48 48%
Bank 52 52%
Total 100 100%
SOURCE: Survey data
Inference: From the table it is clear that majority of people (52%) prefer to
invest in bank and others (48%) prefer to invest in insurance companies.
PIE CHART 9: Respondents Preference To Invest Their Money
PREFERENCES
48%
52%
Insurance company Bank
Interpretation: The above pie chart shows that most of the respondents are
preferred to invest their money in bank rather than insurance sector.
65 | P a g e
TABLE 11: Satisfaction of Respondents with Current Life Insurance
Company:
Response Number of Percentage of

Yes 67 75.3%
No 22 24.7%
Total 89 100%
SOURCE: Survey data
Inference: From this table it could be inferred that 75.3% of the consumers are
satisfied with the service and quality of products of their life insuranc e
companies and 24.7% of consumers are not satisfied.
PIE CHART 10: Satisfaction of Respondents with Current Life Insurance

Company
SATISFACTION
25%
75%
YES NO
Interpretation: From the above pie chart it could be inferred that most of the
consumers are satisfied with the services and quality of products of their life
insurance companies.
66 | P a g e
TABLE 12: Death of Respondent’s Family Members Due to Coronavirus
Sl. Responses Number of Percentage of

1 YES 21 21%
2 NO 79 79%
Total 100 100%
SOURCE: Survey data
Inference: This table helps us to know that no death in respondents’ families

is 79%, followed by 21% who lost their family members due to coronavirus.
PIE CHART 11: DEATH OF RESPONDENT’S FAMILY MEMBERS

DUE TO CORONAVIRUS
DEATH
21%
No
Yes
79%
INTERPRETATION: The above pie chart shows us that no death rate in

respondents’ families is higher (79%) than the death rate in respondents’
families (21%).
67 | P a g e
TABLE 13: The Help of Life Insurance Companies During The Death Of
Respondents’ Family Members.
Sl. Responses Number of Percentage of

1 Yes 13 23.6%
2 No 42 76.4%
Total 55 100%
SOURCE: Survey data
Inference: From this table, it could be inferred that majority of respondents

didn’t get help from their life insurance company which is 76.4%, followed by
23.6% who got help from their life insurance company.
PIE CHART 12: THE HELP OF LIFE INSURANCE COMPANIES

DURING THE DEATH OF RESPONDENTS’ FAMILY MEMBERS.
HELPFUL
24%
YES
NO
76%
INTERPRETATION: The above pie chart shows us that 76% of respondents

did not get help from their life insurance company and 24% of the
respondents did get help from their life insurance companies.
68 | P a g e
TABLE 14
RATINGS OF THE SERVICES OFFERED BY THE RESPONDENT’S

OR BY THEIR FAMILY’S LIFE INSURANCE COMPANY:
RATINGS NUMBER OF PERCENTAGE OF

RESPONDENTS RESPONDENTS
Excellent 14 17%
Very good 27 32%
Good 27 32%
Average 9 11%
Poor 7 8%
Total 84 100%
SOURCE: Survey data
INFERENCE: From this table it could be inferred that 32% of the consumers
have rated service offered as very good and good, 17% of them have rated
them as excellent, 11% of them have rated as average and 8% of them have
rated as poor.
PIE CHART 13
RATINGS OF THE SERVICES OFFERED BY THE RESPONDENT’S

OR BY THEIR FAMILY’S LIFE INSURANCE COMPANY
RATINGS
8%
17%
11% Excellent
Very good
Good
Average
32%
32% Poor
INTERPRETATION: From the above pie chart shows that most of the
respondents have rated their current life insurance company’s performance as
very good and good.
69 | P a g e
TABLE 15: CONSUMERS WILLINGNESS TO COMMUNICATE THE
SERVICE OFFERED BY THEIR OR BY THEIR FAMILY’S LIFE
INSURANCE COMPANY:
RESPONSES NUMBER OF PERCENTAGE OF

Yes 27 32%
No 20 23%
May be 38 45%
Total 85 100%
SOURCE: Survey data
INFERENCE: From this table it can be noted that the majority of consumers
(45%) are not sure to communicate about the service offered by their life
insurance company, 32% of consumer would like to communicate and 23% of
consumers would not like to communicate the service offered.
PIE CHART 14: Consumers Willingness To Communicate The Service

Offered By Their Or By Their Family’s Life Insurance Company:
WILLINGNESS
32%
45% Yes
No
Maybe
23%
INTERPRETATION: From above pie chart it can be noted that the majority
of the consumers are not sure to communicate about the service offered by
their life insurance companies.
70 | P a g e
TABLE 16 NUMBER OF LIFE INSURANCE COMPANY KNOWN BY
RESPONDENTS:
NUMBER OF LIFE NUMBER OF PERCENTAGE OF

INSURANCE RESPONDENTS RESPONDENTS
COMPANY KNOWN
Less than 5 64 64%
5-7 22 22%
8-10 6 6%
More than 10 8 8%
Total 100 100%
SOURCE: Survey data
INFERENCE: This table helps us to know the consumer awareness about the
life insurance companies. 64% of the consumers are aware about less than 5
life insurance companies, followed by 22% consumers who know 5 to 7 life
insurance companies, followed by 8% consumers who know more than 10 life
insurance companies and remaining 6% consumers know 8 to 10 life insurance
companies.
PIE CHART 15 NUMBER OF LIFE INSURANCE COMPANY KNOWN

BY RESPONDENTS
LIFE INSURANCE COMPANIES KNOWN
8%
6%
Less than 5
5 to 7
22%
8 to 10
64% More than 10
INTERPRETATION: The above pie chart shows that most of the respondents
are aware of around 5 life insurance companies and the least of the respondents
are aware of 8 to 10 life insurance companies.
71 | P a g e
TABLE 17: RATINGS OF DIFFERENT LIFE INSURANCE COMPANIES
COMPANIES EXCELLEN VERYGOO GOOD AVERAG POO TOTAL

T D E R
Life Insurance 38 23 32 6 1 100
Corporation
HDFC Life 11 34 40 12 3 100
Insurance
SBI Life 19 26 40 13 2 100
Insurance
ICICI Prudential 15 26 41 17 1 100
Life Insurance
Max Life 13 23 40 18 6 100
Insurance
Bajaj Allianz Life 12 26 40 20 2 100
Insurance
Kotak Mahindra 10 30 42 16 2 100
Life Insurance
Aditya Birla Life 10 29 41 17 3 100
Insurance
TATA AIA Life 18 23 45 12 2 100
Insurance
IndiaFirst Life 9 21 46 20 4 100
Insurance
PNB MetLife 5 16 50 25 4 100
Insurance
Canara HSBC 7 22 45 18 8 100
OBC Life
Insurance
Reliance Nippon 13 18 45 18 6 100
Life Insurance
Exide Life 4 18 48 23 7 100
Insurance
Bharti AXA Life 8 21 45 19 7 100
Insurance
Star Union Dai- 8 14 49 24 5 100
Ichi Life
Insurance
Future Generali 8 20 44 24 4 100
Life Insurance
Shriram Life 6 15 43 28 8 100
Insurance
Ageas Federal 8 15 45 23 9 100
Life Insurance
Others 10 16 44 20 10 100
SOURCE: Survey data
INFERENCE:
From the above table, it can be rank the life insurance companies,
1. Life Insurance Corporation (38) has the most ‘Excellent’ rating,

followed by SBI Life Insurance (19).
72 | P a g e
2. HDFC Life Insurance (34) has the most ‘Very good’ rating, followed
by Kotak Mahindra Life Insurance (30).
3. PNB MetLife Insurance (50) has the most ‘Good’ rating, followed by
Star Union Dai-Ichi Life Insurance (49).
4. Shriram Life Insurance (28) has the most ‘Average’ rating, followed by
PNB MetLife Insurance (25).
5. Others (10) have the most ‘Poor’ rating, followed by Ageas Federal
Life Insurance (9).
GRAPH 3: RATINGS OF DIFFERENT LIFE INSURANCE COMPANIES
(A)
RATINGS
45
40
35
30
EXCELLENT
25
Score
VERY GOOD
20
GOOD
15
AVERAGE
10
POOR
5
0
LIC HDFC LIFE SBI LIFE ICICI.P LIFE MAX LIFE
Life Insurance Company
INTERPRETATION: From the above figure, it can be ranked the life insurance
companies, in ‘Excellent’ Life Insurance Corporation has the highest score
(38), in ‘Very good’ HDFC Life Insurance has the highest score (34), in ‘Good’
ICICI Prudential Life Insurance has the highest score (41), in ‘Average’ Max
Life Insurance has the highest score (18) and in ‘Poor’ again Max Life
Insurance has the highest score (6).
73 | P a g e
(B)
RATINGS
50
45
40
35
30 EXCELENT
Score
25
VERY GOOD
20
15 GOOD
10 AVERAGE
5 POOR
0
KOTAK.M BAJAJ.A LIFE ADITYA.B LIFE TATA.A LIFE INDIA.F LIFE
LIFE
companies, in ‘Excellent’ TATA AIA Life Insurance has the highest score (18),
in ‘Very good’ Kotak Mahindra Life Insurance has the highest score (30), in
‘Good’ again TATA AIA Life Insurance has the highest score (45), in
‘Average’ we got two life insurance companies with same highest score (20)
are Bajaj Allianz Life Insurance and IndiaFirst Life Insurance and in ‘Poor’
again IndiaFirst Life Insurance has the highest score (4).
74 | P a g e
(C)
RATINGS
60
50
40
EXCELLENT
Score
30
VERY GOOD
20 GOOD
AVERAGE
10
POOR
0
PNB.M LIFE CANARA LIFE RELIANCE.N EXIDE LIFE BHARTI.A LIFE
LIFE
companies, in ‘Excellent’ Reliance Nippon Life Insurance has the highest score
(13), in ‘Very good’ Canara HSBC OBC Life Insurance has the highest score
(22), in ‘Good’ PNB MetLife Insurance has the highest score (50), in ‘Average’
again PNB MetLife Insurance has the highest score (25) and in ‘Poor’ also
Canara HSBC OBC Life Insurance has the highest score (8).
75 | P a g e
(D)
RATINGS
60
50
40
EXCELLENT
Score
30
VERY GOOD
20 GOOD
AVERAGE
10
POOR
0
STAR.U LIFE FUTURE.G SHRIRAM LIFE AGEAS.F LIFE OTHERS
LIFE
companies, in ‘Excellent’ other Life Insurance has the highest score (10), in
‘Very good’ Future Generali Life Insurance has the highest score (20), in
‘Good’ Star Union Dai-Ichi Life Insurance has the highest score (49), in
‘Average’ Shriram Life Insurance has the highest score (28) and in ‘Poor’ again
other Life Insurance has the highest score (10).
If we put all graphs (A, B, C & D) then the below-given followings are
interpreted-
1. Life Insurance Corporation(38) stands first in ‘Excellent’s’ ratings,

followed by SBI Life Insurance(19), followed by TATA AIA Life
Insurance(18), followed by ICICI Prudential Life Insurance(15), and so
on.
2. HDFC Life Insurance(34) stands first in ‘Very good’s’ ratings, followed

by Kotak Mahindra Life Insurance(30), followed by Aditya Birla Life
Insurance(29), followed by ICICI Prudential Life Insurance and SBI Life
Insurance (26 each), and so on.
76 | P a g e
3. PNB MetLife Insurance(50) stands first in ‘Good’s’ ratings, followed by
Star Union Dai-Ichi Life Insurance(49), followed by Exide Life
Insurance(48), followed by IndiaFirst Life Insurance(46), and so on.
4. Shriram Life Insurance(28) stands first in ‘Average’s’ ratings, followed

by PNB MetLife Insurance(25), followed by Star Union Dai-Ichi Life
Insurance and Future Generali Life Insurance(24 each ), and so on.
5. Other Life Insurance(10) stands first in ‘Poor’s’ ratings, followed by

Ageas Federal Life Insurance(9), followed by Canara HSBC OBC Life
Insurance and Shriram Life Insurance(8 each), and so on.
6. If we go through the highest scores wholly then, PNB MetLife Insurance

comes first with the highest ratings of 50 in ‘Good’, followed by Life
Insurance Corporation second with 38 ratings in ‘Excellent’, followed
by HDFC Life Insurance third with 34 ratings in ‘Very good’, followed
by Shriram life Insurance fourth with 28 ratings in ‘Average’, and Other
Life Insurance with 10 ratings stands last on the fifth position in ‘Poor’.
7. If we consider ‘Excellent’ as a top ranker then, it can be rank the Life

Insurance Companies, Life Insurance Corporation stands first wi th 38
scores, SBI Life Insurance second with 19 scores, TATA AIA Life
Insurance third with 18 scores, and ICICI Prudential Life Insurance will
stand in the fourth position in the ranking with 15 scores.
8. Life Insurance Corporation being the apex in the Life Insurance Industry
has the highest rating in ‘Excellent’ with 38 scores and has a low ‘Poor’
rating of 1 score, as it is a Public company, respondents or consumers
trust and believe more in Life Insurance Companies than in the other
Private companies.
77 | P a g e
TABLE 18:
RESPONDENT’S CONTINUATION WITH THE SAME LIFE

INSURANCE COMPANY
SL.NO RESPONSES NUMBER OF PERCENTAGE OF

1 Yes 66 76.7%
2 No 20 23.3%
Total 86 100%
SOURCE: Survey data
INFERENCE: From this table, it can be noted that 76.7% of respondents want
to continue with the same life insurance company, and 23.3% would not like
to continue with the same insurance company.
PIE CHART 16
RESPONDENT’S CONTINUATION WITH THE SAME LIFE

INSURANCE COMPANY
CONTINUATON
23%
YES
NO
77%
INTERPRETATION: From the above pie chart, it can be noted that the
majority of 77% of the respondents want to continue with the same life
insurance company whereas 23% of the respondents would not like to
continue with the same life insurance company.
78 | P a g e
❖ Suggestions from respondents’ perception as a consumer of life
insurance policies regarding the improvement needed in the services
offered by life insurance companies:
• First of all the life insurance companies need to understand the

problems of customers, consumers should need to be satisfied with the
services given by their life insurance companies.
• Customers should have the power to do their policy excluding agents,
as most of the money goes to agents.
• Clear terminologies in policy documents and no hidden clauses cause
claims to be rejected.
• Life insurance companies have to remind about the policies or bonds
done by consumers within 6 months.
• Adding new channels to communicate with customers for policy
questions and claims.
• Some life insurance companies do not provide the exact value which
they promised.
• The claim process should be easy. Customers’ support should be easily
available.
• The number of maturity years should be reduced it should not be too
long.
• Life insurance companies must reduce the investment period to gain
more customers.
• Endowment plans have very long terms maybe they have to be short -
term.
• Enrolling in the policy restrictions should be easy.
• Life insurance must have good plans for the customers.
• Life insurance companies must compare returns with purchasing
powers.
• Life Insurance companies should create more awareness regarding
policies’ benefits.
79 | P a g e
• Life insurance companies should have good communication with
investors.
• Minor problems such as fractures should to be added.
• The return rate should be flexible and more.
• There should be an app that contains the details of policies.
• The services should be proper.
• Life insurance companies needs to be honest with its services.
• Partner with other professionals.
• Increase in the rate of return.
• Life insurance companies should keep on improving.
• There should be an improvement in customer services.
• Improvement in the rate of interest.
• There should be best policy offers.
• Services should be digital.
❖ SUMMARY OF FINDINGS:
• The majority of respondents belong to the age group of 19 to 25 years
with 62% followed by age group of 31 to 45 years with 19%.
• Male consumers capture the market shares with 54%, followed by the
female consumers with 46%.
• The majority of the respondents are students with 60% and private
employees with 40%.
• The dominant income group belongs to the group of greater than 30,000
followed by 10,001 to 15,000.
• The majority of the 77% respondents have their own house followed by
48% who have two-wheelers.
• 55% of the respondents or their family has a life insurance policy and
45% of the respondents don’t have a life insurance policy.
• Life Insurance Corporation has a major market share of 86%.
80 | P a g e
• The factors which consider while buying life insurance policy are return
on investment, followed by service quality, company’s reputation,
premium outflow and product quality.
• The factors which influenced to buy life insurance policy are the
personal factor, followed by family, other factors, agents, friends and
advertisement.
• The value of respondents or their family’s life insurance pol icy costs
greater than 100,000 followed by 50,000 to100, 000.
• Majority of the people (52%) prefer to invest in bank others (48%)
prefer to invest in insurance company.
• Majority of consumers are satisfied with the services and quality of
products of their life insurance companies.
• There was 79% of no death in respondents’ families due to coronavirus
and 21% of the respondents faced death in their family due to
coronavirus.
• The majority of consumers have rated their or their family’s life
insurance services as very good and good, followed by excellent,
average and poor.
• The majority of 44.7% of consumers are not sure about communicating
about the services offered by their life insurance companies, 31.8% of
the consumers would like to communicate and 23.5% of consumers are
not interested in it.
• Majority of consumer (64%) are aware of about less than 5 life
insurance companies.
• If we consider ‘Excellent’ as a top ranker then, it can be rank the Life
Insurance Companies, Life Insurance Corporation stands first with 38
scores, SBI Life Insurance second with 19 scores, TATA AIA Life
Insurance third with 18 scores, and ICICI Prudential Life Insurance will
stand in the fourth position in the ranking with 15 scores .
• The majorities of 76.7% of the consumers are happy with their current
life insurance company and would like to continue with the same life
insurance company.
81 | P a g e
CHAPTER 5: CONCLUSIONS AND SUGGESTIONS
CONCLUSION:
This study titled “Study of Consumers Perception about Life Insurance

Policies” enables the Life Insurance Companies to understand how consumer’s
perception differs from person to person. How a consumer selects, organizes
and interprets the service quality and the product quality of different Life
Insurance Policies, offered by various Life Insurance Companies.
The response of the insurance companies has been very positive and within a
short span on time, the Indian insurance market scenario has seen a perceptive
change in terms of improved customers services benchmarks and introduction
of innovative and tailors made product.
Most of the insurance majors have represented in the form of joint venture in
Indian market.
The new products that have been introduced by the companies have certain
innovative features in terms of better customer services and also wider covers.
This has given customer ample choice to select products.
82 | P a g e
RECOMMENDATIONS AND SUGGESTIONS
With regard to life insurance products, consumers respond at different rates,

depending on the consumers characteristics. Hence Life Insurance companies
should try to bring their new product to the attention of potential early adopters.
o Due to the intense competition in the life insurance market, the life
insurance companies have to adopt better strategies to attract more
customers.
o Keeping the cost, quality and return on investment in tact is necessary

in order to tackle the competition.
o Life insurance products are taken mainly by middle and higher income
group. Life insurance products which are suitable for lower income
group should also be released so that the market share increases.
o Return on investment company reputation and premium outflow are most

preferred attributes that are expected by the respondents. Hence greater
focus should be given to these attributes.
o Private life insurance companies should adopt effective’s promotional

strategies to increase the awareness level among the consumers.
83 | P a g e
o Life insurance companies should ask for their consumer feedback to
know whether the consumers are really satisfied or dissatisfied with the
service and product of the companies. If they are dissatisfied, then the
reasons for dissatisfaction should be found out and should be corrected
in future.
o The LIC brand name has earned a lot of goodwill and enjoys high brand
equity. As there is intense competition in life insurance market, LIC
should work hard to maintain its top position and offer better service and
product.
84 | P a g e
CHAPTER 6: BIBLIOGRAPHY/ANNEXURE
BIBLIOGRAPHY:
✓ IRDA (https://www.irdai.gov.in/)
✓ Research gate (https://www.researchgate.net/)
✓ Wikipedia (https://www.wikipedia.org/)
✓ Investopedia (https://www.investopedia.com/)
✓ Policy Bazar (https://www.policybazaar.com/)
✓ https://www.policybazaar.com/life-insurance/articles/types-of-life-
insurance/
✓ https://en.wikipedia.org/wiki/Life_Insurance_Corporation
✓ https://www.policybazaar.com/insurance-companies/hdfc-life-
insurance/
✓ https://www.policybazaar.com/insurance-companies/birla-sun-life-
insurance/
✓ https://www.policybazaar.com/insurance-companies/bajaj-allianz-life-
insurance/
✓ https://www.policybazaar.com/insurance-companies/canara-hsbc-life-
insurance/
✓ https://en.wikipedia.org/wiki/Life_Insurance_Corporation
✓ https://www.mbaknol.com/investment-management/evolution-and-
development-of-life-insurance-in-india/
85 | P a g e
ANNEXURE:
A Study Conducted to Understand the Consumer’s Perception

About Life Insurance Policies
1) Email id:
2) Name:
3) Age:
a) Less than 18
b) 18-20
c) 21-25
d) 26-35
e) 36-45
f) Above 45
86 | P a g e
4) Gender :
a) Male
b) Female
5) Occupation
a) Student
b) Government employee
c) Private employee
d) House wife
e) Retired person
6) Monthly income you or of your family members earns:

a) Less than 5000
b) 5001-10000
c) 10001-15000
d) 15001-20000
e) 20001-30000
f) Greater than 30000
7) Do you or your family own?

a) House
b) Two wheeler
c) Car
d) None
8) Do you or your family have a life insurance policy with any life insurance
company?
a) Yes
b) No
8. a) If yes, name the company __________________________
b) Name the policy which you own __________________________
87 | P a g e
9) What factors do you consider while buying life insurance policy?
a) Premium outflow
b) Company’s reputation
c) Service quality
d) Product quality
e) Return on investment
10) What factors influenced you or your family to buy life insurance policy?
a) Personal interest
b) Friends
c) Family
d) Agents
e) Advertisements
f) Other
11) What is the value of your or of your family’s life insurance?

a) Less than 10,000
b) 10000-25000
c) 25000-50000
d) 50000-100000
e) Greater than 100000
f) None
12) Where do you prefer to invest your money in a life insurance company or
in a bank?
a) Insurance company
b) Bank
13) Are you satisfied with your of your family’s current life insurance
company?
a) Yes
b) No
88 | P a g e
If Yes why? ____________________________________
If No why? _____________________________________
14) Was there any death in your family due to coronavirus?

a) Yes
b) No
If yes, was your or your family’s life insurance helpful?
a) Yes
b) No
15) How do you rate the services offered by your or from your family’s life
insurance company?
a) Excellent
b) Very good
c) Good
d) Average
e) Poor
16) Would you like to communicate the services offered by your or by your
family’s life insurance company?
a) Yes
b) No
c) Maybe
17) How many Life insurance companies do you know?

a) Less than 5
b) 5-7
c) 8-10
d) More than 10
89 | P a g e
18) How do you rate the following life insurance companies?
Companies Excellent Very good Good Average Poor

Life Insurance
Corporation
HDFC Life
Insurance
SBI Life Insurance
ICICI Prudential
Life Insurance
Max Life Insurance
Bajaj Allianz Life
Insurance
Kotak Mahindra
Life Insurance
Aditya Birla Life
Insurance
TATA AIA Life
Insurance
IndiaFirst Life
Insurance
PNB MetLife
Insurance
Canara HSBC OBC
Life Insurance
Reliance Nippon
Life Insurance
Exide Life
Insurance
Bharti AXA Life
Insurance
Star Union Dai-
Ichi Life Insurance
Future Generali
Life Insurance
Shriram Life
Insurance
Ageas Federal Life
Insurance
Others
19) Would you or your family like to continue with the same life insurance
company?
a) Yes
b) No
20) Any suggestions for improving the services offered by life insurance
companies.
_____________________________________________________________
_________________________________________________________.
90 | P a g e

Black Book Project - Nida Shaikh

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Black Book Project - Nida Shaikh

Uploaded by

Copyright:

Available Formats

A PROJECT REPORT ON

“A STUDY ON CONSUMER PERCEPTION ABOUT

Under the Guidance of

Affiliated to University of Mumbai

I the undersigned SHAIKH NIDA SALIM Student of GURUKUL

Wherever reference has been made to previous works of others, it

I, here by further declare that all information of this document has

Name and Signature of the learner

MISS. NIDA SALIM SHAIKH

To list who all have helped me is difficult because they are so

I would like to acknowledge the following as being idealistic

I take this opportunity to thank the University of Mumbai for

I take this opportunity to thank our Coordinator DR. PRITI

I would also like to express my sincere gratitude towards my

I would like to thank my College Library, for having provided

Name and Signature of the learner

MISS. NIDA SALIM SHAIKH

This is to certify that MISS. SHAIKH NIDA SALIM has worked

EXTERNAL SIGNATURE MISS. SONALI DEVADIGA

DR. PRITI GHAG Dr. NANDITA ROY

Sr. No Tile of the Chapter Page No.

04 DATA ANALYSIS, INTERPRETATION 54 - 81

05 CONCLUSION AND SUGGSTION 82 - 84

Table Name of the Table Page

Table Name of the Table Page

Table Name of the Table Page

CHAPTER 1: INTRODUCTION OF THE STUDY .

1.1: WHAT IS INSURANCE?

1.2: WHAT IS MEANT BY LIFE INSURANCE?

Life insurance is a contract between an insurance policy holder and an insurer

Modern life insurance bears some similarity to the asset-management industry

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

• Protection policies: designed to provide a benefit, typically a lump-

• Investment policies: the main objective of these policies is to facilitate

1.3: INTRO TO THE STUDY:

This study titled “Study of Consumers Perception about Life Insurance

1.4 (1): History and Developments of Life Insurance:

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

The Insurance Regulatory and Development Authority, an autonomous

Important Milestones in Life Insurance Regulations In India

• 1818 – Establishment of the Oriental Life Insurance Company in Kolkata

1.4 (2) Types of Life Insurance Policies:

An individual today has an array option to choose from when it comes to

Overview of Different Types of Life Insurance :

Types of Life Insurance Overview

2. Whole Life Insurance:

Whole life insurance is an insurance plan that provides you coverage

An endowment policy is defined as a types of life insurance policies that is

4. Money Back Policy:

5. Savings and Investment Plans:

7. Unit Linked Insurance Plans – ULIPs

8. Child Insurance Policy:

A child insurance policy is a saving cum investment plan that is designed to

How do you select the Right Types of Life Insurance?

1.4 (3): Impact of Coronavirus on Life Insurance Sector

Impact of Coronavirus on Insurance in India:

In an existing life insurance policy if an individual pass away due to COVID -

However, as per the recent IRDAI regulations, life insurance companies in

1.4(4): Features and Benefits of Life Insurance in India:

The average penetration and density of life insurance in India is a measly

• Policyholder : Policyholder is the individual who pays the premium for

Key Advantages of life Insurance Policy in India: