IN COMPANY TRAINING REPORT

ON
CONSUMER

BEHAVIOUR

TOWARDS

DIFFERENT

FINANCIAL

PRODUCTS IN I.D.B.I FEDERAL LIFE INSURANCE CO. LTD

COMPLETED IN I.D.B.I FEDERAL LIFE INSURANCE CO. LTD

Submitted in partial fulfillment of the requirement of bachelor of business administration

(BBA), Guru Nanak Dev University

TRAINING SUPERVISOR:-

SUBMITTED BY:-

MR. SACHIN GARG

SHUBHAM CHAUHAN

CHIEF MANAGER(AGENCY)

ENROLMENT NO:-

I.D.B.I FEDERAL LIFE INSURANCE CO. LTD

10541202153

SESSION2014-15(BATCH: 2012-15)
GURU NANAK DEV UNIVERSITY,AMRITSAR

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Acknowledgement
I would like to thank IDBI Federal Life Insurance Co. for giving me the opportunity to work in
this field. In particular I would like to thank my Reporting manager MR. MANAS DAS whose
guidance has helped me in completing the project.
I would also like to thank my industry mentor MR. SACHIN GARG who has provided me
valuable information about the all the products and how to generate prospects and leads.
It is my profound privilege and pleasure to express an overwhelming sense of gratitude and
regard to Prof. MRS. KANCHAN BAJAJ for her patience and valuable time to go through the
interim project and progress reports, and guide me during the course of study.

SHUBHAM CHAUHAN

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EXECUTIVE SUMMARY
In todays corporate and competitive world, I find that insurance sector has the
maximum growth and potential as compared to the other sectors. The main purpose of
the study is to find the customer buying behavior for Life Insurance of I.D.B.I federal
Life Insurance Company in Hubli region which has been done and will help the
company to make the marketing strategy for the different segments. The study which has
been made during this project will help the company to make strategies for this region
and emphasize on their weaker areas. The Brand Image of various companies will be
known. The company can find out where their competitor stands in the minds of the
people. Research has been done by primary data collection, and primary data has been
collected by meeting with the people in Hubli region. Data collection has been done
through by giving structured questionnaire. This study will be based on sampling. This is
a descriptive study.
In this sector the visibility of the brand matters the most and is of utmost importance.
Since, insurance is the backup plan for more risky propositions like shares and stocks.
Hence the customers who want to go for these propositions too are extremely risk averse.
Hence there has to be products specifically for this segment. And then expand
furthermore into other segments while keeping their base customers with them.

TABLE OF CONTENTS
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CHAPTER-1

INTRODUCTION
1.1 OVERVIEW OF THE INDUSTRY

CHAPTER-2 COMPANY PROFILE

2.1 ORIGIN
2.2 MISSION
2.3 ACHIEVEMENTS
2.4 ORGANISATION STRUCTURE OF THE COMPANY
2.5 SWOT ANALYSIS
2.6 PRODUCT ANALYSIS
2.7 INTRODUCTION TO THE TOPIC
CHAPTER-3 RESEARCH METHOLOGY
3.1 OBJECTIVE OF THE STUDY
3.2 RESEARCH DESIGN AND METHODOLOGY
3.3 LIMITATIONS OF THE STUDY
CHAPTER-4 DATA ANALYSIS AND INTERPRETATION
CHAPTER-5

CONCLUSION AND RECOMMENDATIONS

ANNEXURE
-QUESTIONNAIRE
BIBLIOGRAPHY

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CHAPTER-1
INTRODUCTION

1.1 OVERVIEW OF THE INDUSTRY

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The history of Insurance in India is deep-rooted. Since the earliest times insurance has been
carried out in some form or the other. Insurance in India has developed overtime and has taken
ideas from other countries- England in particular.
The history of insurance is divided into three phases as follows:

PHASE I Pre Liberalization

PHASE II Liberalization

PHASE III Post Liberalization

Phase I Pre- Liberalization

1818- 1829

First Insurance company in 1818 the Oriental Life insurance company in

Kolkata (then Calcutta) was the first company to start a life insurance business
in india. However, the company failed in 1834. In 1829 the Madras Equitable
had begun transacting Life insurance business in Madras Presidency.

1870

Following the enactment of the British Insurance act 1870, The last three decades of
the nineteenth century saw the creation of the Bombay Mutual, Oriental and Empire
of India in the Bombay Residency.

1912
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The Indian Life Assurance Companies Act 1912 was the first statutory measure to

regulate Life Business.

1928

The Indian Insurance Companies act 1928 gave the Government the power to
collect statically information above both life and non life business transacted in
Indian by Indian and foreigner insurers, including provident insurance societies.

1938

To protect the interest of the insuring public, the earlier legislation was consolidated
and amended by the Insurance Act 1938 which gave the Government effective
control over the activities of insurers.

1950s

In the 1950s, competition in the insurance business was very high and there were
allegations of unfair trade practices. The government of India therefore decided to
nationalize insurance business.

1957

Formation of the General insurance Council (GI Council) : the GI council

represents the collective interests of the non-life insurance companies in India. The
council speaks out on issues of common interest, participates in discussions related
to policy formation, and acts as an advocate for high standards of customer service
in the insurance industry.

1972

The General Insurance Business (Nationalization) Act 1972 was passed. The
General insurance Corporation of India was formed in pursurance of Section
9(1) of GIBNA. It was incorporated on 22 November 1972 under the companies Act
1956 as a private company limited by shares.

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PHASE II- Liberalization

The start of reform

The international payment crisis of the 1990s forced the Government to re-think its industrial
policies and regulations.

1993

Malhotra Committee: In 1993 the government set up a committee under chairmanship

of RN Malhotra, the former Governor of RBI, To make recommendation for the
reform of the insurance sector.

1999

Formation of IRDA: following the recommendations of the Malhotra committee

report, The Insurance regulatory and Development Authority was constituted as an
autonomous body in 1999 to regulate and develop the insurance industry. The IRDA
was incorporated as a statutory body in April 2000.

PHASE III Post Liberalization

Recommendations of Malhotra Committee, the insurance sector were opened to private
companies. Foreign companies were also allowed to participate in Indian Insurance market
through joint ventures with Indian Companies. Under current regulations for the foreign partner
cannot hold more than 26% stake in the joint venture.
The key objective of the IRDA includes the promotion of competition with a view to increasing
customer satisfaction through more consumer choice and lower premiums, while ensuring the
financial security of insurance market. The IRDA has the power to make regulations under
section 114A of insurance Act 1938. Since 2000 it has introduced various regulations ranging
from the registration of companies for carrying on insurance business to the protection of policy
8 | Page

holders interest.
Recent developments in the insurance industry
By 2010 India was the fth largest insurance market in the world and it is still growing rapidly.
There has been a lot of change in the decade since the market was opened up to the private
sector.
Further we will look at some of the important developments of the last few years.

Growing importance of IT

All insurance companies now use information technology (IT) to

benet their business and to improve convenience for their
customers. Today, customers can pay their premiums and check the
status and other details of their policy using the companys website.
Updates relating to the receipt of premiums or changes to their
policy are sent to the customer through mobile SMS.

Many banks have joined with insurance companies to cross-sell

insurance products to their customers. Insurance companies benet from
Bancassurance

the wide network and loyal customer base Of banks, and the contribution
that bancassurance makes to insurance sales has steadily grown over the
last few years. The banks benet through being able to provide valueadded products to their customers and from the fee income they receive
in return from the insurance companies. Many banks have started their
own life insurance subsidiaries.

Most of the insurance companies have now started selling insurance

Online Sales

products online. This eliminates the need for an intermediary and

reduces costs. This saving can be passed to customers in the form of
reduced premiums.

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Micro-insurance products provide insurance protection to people in

lower income groups, such as self-help group (SHG) members, farmers,
Micro Insurance

rickshaw pullers and others against the risks that they and their assets are
exposed to. The premiums for these products may be as low as Rs. 15
and are collected on a weekly basis.

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CHAPTER-2
COMPANY PROFILE

2.1 ORIGIN
2006:-IDBI signs MoU with Fortis
-IDBI - Tripartite MOU with Federal Bank & Forties Insurance
International
-IDBI, Federal Bank and Fortis Sign Joint Venture Agreement To
Establish A New Life Insurance Company In India

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2009:- IDBI Federal Life launches new plan for senior citizens.
- IDBI Fortis redefines endowment & money back with Incomesurance
- IDBI Fortis launches Termsurance Protection Plan
- IDBI Fortis bags bronze Dragon at 'PMAA 2009'
- IDBI Fortis Life Insurance uses an interactive application to help users easily calculate their
taxes
- IDBI Fortis launches Incomesurance Immediate Annuity
- IDBI Fortis launches Retiresurance Pension Plan
- 'IDBI Fortis' Boss-Ka-Boss bags PRCI Award
- IDBI Fortis announces Rs 250cr capital infusion
2010:-

IDBI Federal launches brand new campaigns!

IDBI Federal introduces a cover for loans, Loansurance

IDBI Federal launches Wealthsurance Milestone Plan

IDBI Fortis Life Insurance is now IDBI Federal Life Insurance

2011:- IDBI Federal heralds the New Year with Childsurance

- IDBI Federal unveils 3-in-1 Lifesurance Savings Plan
- IDBI Federal launches insured wealth plan
- IDBI Federal pioneers Medical Test-free Term Plan for Seniors
- IDBI Federal launches unit linked Pension Plan
- IDBI Federal targets HNIs with Wealthsurance Premier
- IDBI Federal launches Retiresurance Guaranteed Pension Plan
- IDBI Federal-Samhita financial literacy drive a big hit in MP
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- IDBI Federal launches a plan with double life cover and no medicals
- IDBI Federal makes its online debut
- IDBI Federal Bondsurance plan offers attractive guaranteed Tax-Free Returns, Life
Cover
- IDBI Federal and IDBI Bank reaches out to Surli through Termsurance Grameen
Suraksha
2013:- IDBI Federal breaks-even in Five years; posts maiden profit of Rs 9.24 crore
- IDBI Federal in association with Phoenix Foundation organises a trek for the physically
challenged

2014:-

IDBI Federal launches 7 new plans

IDBI Federal backs home grown talent; elevates Vighnesh Shahane as CEO

IDBI Federal Life Insurance Co Ltd.

is a joint-venture of IDBI Bank, India's premier

development and commercial bank, Federal Bank, one of India's leading private sector banks and
Ageas, a multinational insurance giant based out of Europe. In this venture, IDBI Bank owns
48% equity while Federal Bank and Ageas own 26% equity each. Having started in March 2008,
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in just five months of inception, IDBI Federal became one of the fastest growing new insurance
companies by garnering Rs.100 Cr in premiums. Through a continuous process of innovation in
product and service delivery IDBI Federal aims to deliver world-class wealth management,
protection and retirement solutions that provide value and convenience to the Indian customer.
The company offers its services through a vast nationwide network 2,308 partner bank branches
of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and partners. As on
31st December 2013, the company has issued nearly 5.5 lakh policies with a sum assured of over
Rs. 32,110.48 crores.
About the sponsors of IDBI Federal Life Insurance Co Ltd:
IDBI Bank Ltd.

continues to be, since its inception, India's

premier industrial development bank. It came into being as on July 01, 1964 to support
India's industrial backbone. Today, it is amongst India's foremost commercial banks, with
a wide range of innovative products and services, serving retail and corporate customers
in all corners of the country from 1201 branches and 2156 ATMs. The Bank offers its
customers an extensive range of diversified services including project finance, term
lending, working capital facilities, lease finance, venture capital, loan syndication,
corporate advisory services and legal and technical advisory services to its corporate
clients as well as mortgages and personal loans to its retail clients. As part of its
development activities, IDBI Bank has been instrumental in sponsoring the development
of key institutions involved in India's financial sector - National Stock Exchange of India
Limited (NSE) and National Securities Depository Ltd, SHCIL (Stock Holding
Corporation of India Ltd), CARE (Credit Analysis and Research Ltd).
Federal Bank

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is one of India's
leading private sector banks, with a dominant presence in the state of Kerala. It has a strong
network of over 1,142 branches and 1,312 ATMs spread across India. The bank provides over
four million retail customers with a wide variety of financial products. Federal Bank is one of the
first large Indian banks to have an entirely automated and interconnected branch network. In
addition to interconnected branches and ATMs, the Bank has a wide range of services like
Internet Banking, Mobile Banking, Tele Banking, and Any Where Banking, debit cards, online
bill payment and call centre facilities to offer round the clock banking convenience to its
customers. The Bank has been a pioneer in providing innovative technological solutions to its
customers and the Bank has won several awards and recommendations.
AGEAS

is an international insurance group with a heritage spanning more

than 180 years. Ranked among the top 20 insurance companies in Europe, Ageas has chosen to
concentrate its business activities in Europe and Asia, which together make up the largest share
of the global insurance market. These are grouped around four segments: Belgium, United
Kingdom, Continental Europe and Asia and served through a combination of wholly owned
subsidiaries and partnerships with strong financial institutions and key distributors around the
world. Ageas operates successful partnerships in Belgium, UK, Luxembourg, Italy, Portugal,
Turkey, China, Malaysia, India and Thailand and has subsidiaries in France, Hong Kong and UK.
Ageas is the market leader in Belgium for individual life and employee benefits, as well as a
leading non-life player through AG Insurance. In the UK, Ageas has a strong presence as the
fourth largest player in private car insurance and the over 50's market. Ageas employs more than
13,000 people and has annual inflows of more than EUR 21 billi
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2.2 MISSION
MISSION
To continually strive to enhance customer experience through innovative product offerings,
dedicated relationship management and superior service delivery while striving to interact with
our customers in the most convenient and cost effective manner.
To be transparent in the way we deal with our customers and to act with integrity.
To invest in and build quality human capital in order to achieve our mission.

VALUES

Transparency: Crystal Clear communication to our partners and stakeholders

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

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

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

Profit to Stakeholders: Balance the interests of customers, partners, employees,
shareholders and the community at large
EXCELLENCE
"In every aspect of work ranging from the in-house training institute to the detailed Personal
Insurance Plan. IDBI Federal is focused on achieving the highest standards of quality in every
aspect of their business".

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HONESTY
"Is the heart of the Life Insurance business? IDBI Federal believes that above all, Life Insurance
is based on trust. Transparency, Dependability and Integrity will form the cornerstones of the
IDBI Federal experience."
KNOWLEDGE
"Is what makes experts. IDBI Federal is focused on the Life Insurance business. Perfectly
combining global expertise with local knowledge, IDBI Federal is the Indian Life Insurance
specialist."
CARING
"For the customer IDBI Federal is redefining the Life Insurance paradigm to focus on the needs
of the customers. The IDBI Federal service process is responsive, personalized, humane and
empathetic."
CULTURE
Our "in house culture recipe" has some of the finest ingredients going into its making. Some of
the more prominent aspects of our culture are stated below:

i. Customer comes first

ii. Do it right the first time

iii. Bias for result oriented action

iv. Financial strength and discipline

v. Clarity of purpose

vi. International quality standards

vii. Inclusive Meritocracy

viii. Learning opportunities

ix. Fun at work

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x. Commitment to published value system

TECHNOLOGY
To monitor and manage its network equipment across 34 sites, IDBI Federal uses Tulip Proactive
Managed CE solution. The solution includes device management, proactive troubleshooting and
notification support. With the implementation of the solution, IDBI has reported improvement of
network performance and availability, with a faster, more effective change and configuration
management.
PRODUCTS
IDBI Fortis launched its first set of products across India in March 2008, after receiving the requisite
approvals from the Insurance Regulatory and Development Authority (IRDA). IDBI Federal offers
services through a nationwide network across the branches of IDBI Bank and Federal Bank in addition to
a network of advisors and partners. IDBI Federal has 60 branches across the country.

2.3 ACHIEVEMENTS

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IDBI Federal Life Insurance has achieved break even in 2012-13, its fifth year of operations. The
company has reported a maiden profit of Rs 9.24 crore in 2012-13, thus making it one of the
fastest to break-even in the Life Insurance industry. In an industry challenged by falling margins,
shrinking new business volumes, high cost ratios and low profitability, this is a significant
achievement.
IDBI Federal started its operations in March 2008 and is amongst the most successful start-ups in
the Indian Life Insurance market. A pioneer in product innovation, IDBI Federals approach is
very innovative and reflects a fresh way of looking at and thinking about life insurance. The
Companys innovative products with trademarked names such as Wealthsurance TM,
IncomesuranceTM, RetiresuranceTM, etc have been well-received by its customers and have been
an

important

contributing

factor

to

its

success.

IDBI Federals New Business Premium (APE) grew by 23% in 2012-13, which compares with
the negative growth of -15% posted by the industry. The company also witnessed a 44% increase
in the number of new business policies sold as compared to the previous year. IDBI Federal has
also been driving profitability through the right product mix. The product mix has continuously
been shifted to long-term, traditional products. Share of traditional products in the new business
premium increased to 83% as compared to 67% in the previous year. Share of regular premium
products

increased

to

78%

as

compared

to

69%

in

the

previous

year.

Mr. G V Nageswara Rao, Managing Director & CEO, IDBI Federal Life Insurance, said, I am
extremely happy to announce that IDBI Federal has recorded its maiden profit of Rs 9.24 crore
in 2012-13. Achieving break-even in the fifth year is a significant landmark. We have pursued
profitable growth as our company strategy. Our new business premium growth of 23%
15% reported by the industry. Our growth rate is one of the highest in the industry, with a large
number of companies posting negative growth. What is even more satisfying is the fact that this
achievement comes at a time when the entire Life Insurance industry is facing many challenges
and

growth

is

hard

to

come

by.

IDBI Federal has a healthy solvency ratio at 491% as against the regulatory requirement of
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150%. Mr. Rao said, I am delighted to say that IDBI Federal enjoys a comfortable solvency
ratio to take care of its next phase of growth. As we have reached the profit-making state, we will
not require any further capital infusion. Our AUM has moved up by 24% from Rs. 2,208 crores
to Rs 2,732 crores during the current year. IDBI Federal has paid-up share capital of Rs 800
crore.
The company recorded a 13th month persistency rate of 76% which is among the top 5 in the
industry. In terms of 25th, 37th and 49th month persistency rates, IDBI Federal is among the top 3.
IDBI Federals strong persistency record is testimony to the quality of its sales and the
confidence the customers have shown in the companys products and its investment
performance. For the calendar year 2012, IDBI Federals Equity Fund raked No 1 in its
investment performance among the 72 ulip funds in the industry against which it is benchmarked
internally. IDBI Federals customer complaints, as reported by IRDA, is among the lowest in the
industry.
A strong focus on cost discipline ensured a drop in IDBI Federals cost ratio from 26% in 201112 to 24% in 2012-13, which is among the lowest expense ratios in the industry.
IDBI Federal Life Insurances performance has been a result of its better than industry business
growth, better persistency experience, more profitable product-mix, robust investment
performance as well as lower cost ratio. In a fast-changing industry landscape, IDBI Federal was
quick to realize the challenges and act on them. Todays announcement validates its success in
meeting

these

challenges.

A customer centric approach is at the heart of IDBI Federal. We have introduced various
measures to ensure that the policyholders interests are upheld at all times. We recognize the role
of long term planning through life insurance and thus focus our efforts in selling regular
premium long term products. Pre-Issuance calling to confirm all sales ensures that the customer
is being sold the right product as per his needs. All this has resulted in value creation for the
customer and is reflected in our high persistency rates. In fact, as a result, our customer
complaints
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are

also

much

lower

than

the

industry

average,

Mr.

Rao

said.

Mr. Rao added, This performance is testimony to our constant focus towards innovation,
offering tailor-made financial solutions that create value for our customers and help them to
realize their dreams and aspirations. We entered as the 18th player in the industry and
differentiation was the key to our success. Our approach of product branding is unique in the
industry and has helped us achieve a strong mindshare among target audiences.
SPONSORSHIPS, AWARDS
IDBI Fortis Life Insurance Company was selected as the title sponsor for the India-Sri Lanka
Cricket Series. This was followed by the IDBI Fortis Wealthsurance Twenty20. Wealthsurance
Made Easy (WME), a knowledge aid by IDBI Fortis for its sales force, won The Bronze Dragon
in the category for Best Dealer/Sales Force activity at the Promotion Marketing Awards of Asia
(PMAA).

2.4 ORGANISATIONAL STRUCTURE OF THE COMPANY

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CHIEF EXECUTIVE
OFFICER
Mr.Nageshwara Rao

COUNTRY HEAD
Mr.Murali

HUMAN RESOURCES HEAD

Mrs. Radhika Venkatraman

MARKETING HEAD
Mr. Amit Tripathi

TRAINING HEAD
Mrs. Vaishali

2.5 SWOT ANALYSIS OF IDBI

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STRENGTH

Superior customer service vs. competitors.

Products have required accreditations.

High degree of customer satisfaction.

Good place to work

Lower response time with efficient and effective service.

Dedicated workforce aiming at making a long-term career in the field.

Large pool of technically skilled manpower with in depth knowledge and under
standing of the market

WEAKNESSES

Some gaps in range for certain sectors.

Customer service staffs need training.

Processes and systems, etc

Management cover insufficient.

Sectoral growth is constrained by low unemployment levels and competition for staff.

Low customer confidence on the private players.

OPPORTUNITUES

Insurable population: According to IRDA only 10% of the population is insured which
represent around 30% of the insurable population. This suggests more than 300m
people, with the potential to buy insurance, remain uninsured.

International companies will help in building world class expertise in local market by
introducing the best global practice.

Could extend to overseas broadly.

New specialist applications.

Could seek better customer deals.

Fast-track career development opportunities on an industry-wide basis.

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An applied research centre to create opportunities for developing techniques to provide

added-value services.

THREATS

Big public sector insurance companies like Life Insurance Corporation (L IC) of India,
National Insurance Company Limited, Oriental Insurance Limited, New India
Assurance Company Limited and United India Insurance Company Limited. People
trust and go to them more.

Legislation could impact and Great risk involved.

Very high competition prevailing in the industry.

Vulnerable to reactive attack by major competitors

Lack of infrastructure in rural areas could constrain investment

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2.6 PRODUCT ANALYSIS

IDBI Federal Incomesurance Guaranteed Money Back Insurance Plan (UIN No.
135N031V01) is a non-linked non-participating money back plan which gives you
guaranteed* returns on your investment, so that you stop worrying about the future. With
Incomesurance, you can guarantee a secure future for your family even when you
are not around.

IDBI Federal Lifesurance Savings Insurance Plan is a fixed term non-linked

participating plan that provides you the twin benefits of long-term savings and life cover.
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How does Life insurance work?

IDBI Federal Wealthsurance Suvidha Growth Insurance Plan (UIN: 135L033V01)

is a simple unit linked plan that helps you take your first step towards wealth creation
and that too, with ease. Whats more, the life cover with this plan provides financial
protection to your loved ones.
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How does wealthsurance work?

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

endowment plan that ensures a childs future financial needs are fulfilled. Childsurance
Savings, is designed to give guaranteed annual payouts and aid the important milestones
in a childs life.

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2.7 INTRODUCTION TO THE TOPIC

CONSUMER BEHAVIOUR TOWARDS DIFFERENT FINANCIAL PRODUCTS IN
I.D.B.I FEDERAL LIFE INSURANCE CO. LTD
DEFINING CONSUMER BEHAVIOUR:
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Consumer Behaviour may be defined as the interplay of forces that takes place during a
consumption process, within a consumers self and his environment.
- this interaction takes place between three elements viz. knowledge, affect and behaviour;
- it continues through pre-purchase activity to the post purchase experience;
- it includes the stages of evaluating, acquiring, using and disposing of goods and services.
The consumer includes both personal consumers and business/industrial/organizational
consumers.
Consumer behaviour explains the reasons and logic that underlie purchasing decisions and
consumption patterns; it explains the processes through which buyers make decisions.
The study includes within its purview, the interplay between cognition, affect and behaviour that
goes on within a consumer during the consumption process: selecting, using and disposing of
goods and services.
Cognition: This includes within its ambit the knowledge, information processing and thinking
part; It includes the mental processes involved in processing of information, thinking and
interpretation of stimuli (people, objects, things, places and events). In our case, stimuli would be
product or service offering.
Affect: This is the feelings part. It includes the favourable or unfavourable feelings and
corresponding emotions towards a stimuli (eg. towards a product or service offering or a brand).
These vary in direction, intensity and persistence.
Behaviour: This is the visible part. In our case, this could be the purchase activity: to buy or
not a buy (again specific to a product or service offering, a brand or even related to any of the 4
Ps).
The interaction is reciprocal between each of the three towards each other and with the
environment.
BEHAVIOUR TOWARDS THE FINANCIAL PRODUCTS IN IDBI FEDERAL.
The consumer behaviour is important for idbi because it enables them to better focus our efforts
where we can get the results we want. By understanding consumer behaviour; our business will
provide the consumer with better goods and services. Better goods and services results in more

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sales and therefore more profit. Not only is it important to improve goods and services; it is
necessary to know what type of products and what type of service to offer.
The Consumer behaviour is strongly tied to their phase in the life cycle. Patterns of spending are
dictated by what is happening at a given time. Younger couples with no children have different
needs than those who have started a family. While teenagers and elderly people have more
discretionary income and can spend more freely.
Knowing this will help us decide who our core customer is. By using this information to
influence buying decisions; we can increase sales.
It is also important to plan marketing strategies that are focused on this group. These strategies
should target our market and focus on niche marketing. Resources should not be spent marketing
to consumers outside of our target.
The idbi federal begin to understand our market when we have satisfied certain questions about
our customers. Why do they choose one product over the next? What impact does the role of
culture, education and advertising has on the decision to choose a product? How and why is the
consumer planning to use the product? Why are they loyal to a specific brand? What are the risks
involved in using or switching to our brand?
Having the answer to these questions will help us gain consumer confidence. Idbi federal may
have the best product, but the consumer does not know this. the idbi federal will speak to them
through our status in the community, our good-will, our price points and the way our product
relates to them. These factors will help to determine who will become our customers and who
won't.
Consumers have needs and wants, and our objective is to identify the need and create the want.
Our ultimate goal is to influence consumer behaviour and convert this into profits for our
company. Businesses that can predict consumer behaviour have the edge over their competitors.
To predict consumer behaviour requires knowledge of the consumers values, goals and lifestyle.
Companies with this asset use it to develop better strategies, and are better able to win over
consumers. Hence, this study is very important.

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CHAPTER-3
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RESEARCH METHODOLOGY

3.1OBJECTIVES OF STUDY

To identify the main influences on customer buying behavior.

To distinguish the factors influencing customer buying behavior.
To study brand awareness of IDBI Federal among people
To conduct in- depth interviews with the management of IDBI- Federal Life Insurance

Co.Ltd and understand insights about generating leads.

To use various activities planned at different locations across Delhi to generate leads and
get business for IDBI- Federal Life Insurance Co.Ltd.
To find out important factors why people buy and not buy insurance
To find how people rate insurance as investment mode over other modes like FD, NSC,
PPF etc.

3.2 Research design: Research design is simply the framework or plan for a study, Used
guide in collecting and analysing data.
For the study: for conducting that research I selected the Descriptive research design.
Descriptive research is also called Statistical Research. The main goal of this type of research
is to describe the data and characteristics about what is being studied. The idea behind this type
of research is to study frequencies, averages, and other statistical calculations. Although this
research is highly accurate, it does not gather the causes behind a situation. Descriptive research
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is mainly done when a researcher wants to gain a better understanding of a topic. That is,
analysis of the past as opposed to the future.
Descriptive research is the exploration of the existing certain phenomena. The details of the facts
wont be known. The existing phenomenas facts are not known to the persons.
Data Requirement Analysis:
The data required is about the investment pattern of the respondents, the income level under
which they fall, the respondents current status of having any insurance policy, their awareness
level if IDBI Federal and their likeness to invest in IDBI Federal.
Data Collection:
The data is collected through primary and secondary research. The data is collected through
primary research by doing field Survey in Delhi/NCR region and secondary research through
text books, websites, previous studies etc. The scope of research is restricted to Delhi/NCR
region and the research approach descriptive method.
1. Questionnaires.

2. Pie chart and Bar chart

1. Questionnaires:
This is the most popular tool for the data collection. A questionnaire contains question that the
researcher wishes to ask his respondents which is always guided by the objective of the survey.

2. Pie chart:
This is very useful diagram to represent data , which are divided into a number of categories.
This diagram consists of a circle of divided into a number of sectors, which are proportional to
the values they represent. The total value is represented by the full create. The diagram bar chart
can make comparison among the various components or between a part and a whole of data.
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Bar chart:
This is another way of representing data graphically. As the name implies, it consist of a number
of whispered bar, which originate from a common base line and are equal widths. The lengths of
the bards are proportional to the value they represent.

Preparation of report:
The report was based on the analysis and presented with the findings and suggestions. The
sample of the questionnaires is attached with the report itself.

SAMPLE PLANNING
SAMPLE UNIT
Customers of I.D.B.I FEDERAL LIFE INSURANCE CO. LTD
SAMPLING METHOD
Random Sampling method
SAMPLE SIZE
50 Consumers
RESEARCH TOOL
Questionnaire
RESEARCH AREA
Delhi and NCR
TIME FRAME
6 to 8 week

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3.3 LIMITATIONS OF THE STUDY

Although the study was carried out with extreme enthusiasm and careful planning there are
several limitations, which handicapped the research viz,
Accuracy: It is difficult to know if all the respondents gave accurate information; some
respondents tend to give misleading information. Some of the respondent were reluctant
to share their investment information.
Availability: It was difficult to find respondents as they were busy in their schedule, and
collection of data was very difficult. Sometimes when I entered in a shop for the survey,
the owners tend to ask their employees to fill the survey instead of filling themselves.
However, most of the employees responded well and depicted more interest than the
owners of shops.

Lack of awareness in household ladies: Some of the samples were taken from the
households in day time when only house wife was found. They had little understanding
about the insurance and the policies taken by their husbands. Most of them were not
aware about the investment done by their husbands.

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CHAPTER-4
DATA ANALYSIS AND INTERPRETATION

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Data Analysis & Interpretation

Now we do a survey with approx. 50 people regarding their behavior towards different financial
products in I.D.B.I FEDERAL LIFE INSURANCE CO. LTD. with the help of these following
questions:Q1. Which plans of I.D.B.I federal do you have ?
Plans
Lifesurance
Incomesurance
Chilsurance
Wealthsurance
Total

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No. of respondent
5
15
3
27
50

Percentage
10
25
5
60
100

70
60
50
40
Column1

30
20
10
0
lifesurance

incomesurance

childsurance

wealthsurance

Q2. Is the premium payment mode of IDBI federal insurance product easy?
Response

No of respondent

Percentage

Yes

50

100

No

Total

50

100

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120
100
80
60

Column2

40
20
0
yes

no

Q3. What is the time period of the policy of IDBI federal do you have?
Time period
5 years
5-10 years
Life time
Total
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No. of respondent
20
15
15
50

Percentage
40
30
30
100

45
40
35
30
25
Series 3

20
15
10
5
0
5 years

5-10 years

life time

Q4. What do you like about the policy of I.D.B.I federal?

Response
Tax benefit under 80c
High return
Short term
Total

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No. of respondents
30
5
15
50

Percentage
60
10
30
100

70
60
50
40
Series 3

30
20
10
0
tex benefit

high return

short term

Q5. Are you satisfied with the service provided by insurance agents?
Response
Yes
No
Total

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No. of respondents
40
10
50

Percentage
80
20
100

90
80
70
60
50
Series 3

40
30
20
10
0
yes

no

Q6. Are the insurance plans and procedure of IDBI insurance company understandable
easily?
Response
Yes
No
Total

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No. of respondents
40
10
50

Percentage
85
15
100

90
80
70
60
50
Series 3

40
30
20
10
0
yes

no

Q7. Are you satisfied with your current policy?

Response
Yes
No
Total

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No. of respondent
20
30
50

Percentage
40
60
100

70
60
50
40
Series 3

30
20
10
0
yes

no

Q8. How do you rate the products of IDBI federal?

Response
Good
Satisfactory
Poor
Total

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No. of respondents
15
10
25
50

Percentage
30
15
45
100

50
45
40
35
30
25

Series 3

20
15
10
5
0
good

satisfactory

poor

Q9. Do you think IDBI federal products needs improvement?

Response
Yes
No
Total

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No. of respondents
30
20
50

Percentage
60
40
100

70
60
50
40
Series 3

30
20
10
0
yes

no

Q10. Would you like to have another insurance policy in IDBI federal company?
Response
Yes
No
Total
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No. of respondents
15
35
50

Percentage
40
60
100

70
60
50
40
Series 3

30
20
10
0
yes

no

CONCLUSION
Future is always uncertain and full of risk. It is not certain that what is going to happen
tomorrow. Therefore a man is always worried about security of property and life. Insurance is a
means of meeting out loss caused by future risks and uncertainties. Life insurance is the

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necessary and considerable factor for any person for covering the risk of life and for future
security.
The conclusion of this project report is that consumer buying behaviour towards the products in
IDBI Federal and its products is very low. People look for trusted name and agent accessibility
as the most important factor to invest in any insurance company. Being a 6 year old company,
IDBI Federal has not able to succeed itself in placing as a trusted name. That could be the reason
why majority of people still not interested in investing in IDBI Federal. The company has got
very low products awareness. Until/unless people are not aware about the products, they will be
reluctant in investing in any company.
The customer perception about insurance has become very positive now. More and more people
are interested in taking insurance not only to cover uncertainty but also for future investment.
Based on the report, it was chosen as the most preferred investment mode now. The perception
about Indian private insurance companies has been positive as well. Two third of people said
Indian companies are either good or satisfactory. Most of the people were satisfied with their
current policies. This has been made possible by the constant efforts by the companies to focus
on their services.

Suggestions
The survey find that the most important reason for customer dissatisfaction was the poor
returns and promises broken by their respective companies. IDBI Federal need to ensure

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that its policies should have good returns and its agent do not make exaggerated claims of
high returns.
Trusted name and agent accessibility are the most important factors which people look
while choosing an insurance company. The company need to focus on these two factors
in order to make it most preferred insurance company.

IDBI Federal has emerged as the second most preferred choice after HDFC life among
private companies. HDFC life has been getting lot of advertisement space in media from
past few years and this is the reason why it is most preferred choice among private
companies. IDBI Federal need to take a cue from it and increase it advertisement spend to
become the most preferred choice.

Currently, IDBI Federal does not offer quarterly and monthly payment option while this
option look cumbersome to company but it also need to understand that middle class
people think to take high cover but at the same time they are not able to pay premium at
one go i.e. annual mode. The company need to introduce monthly as well as quarterly
payment option in order to reach middle segment.

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ANNEXURE

SAMPLE QUESTIONNAIRE
Consumer behaviour towards different financial products in I.D.BI FEDERAL LIFE
INSURANCE CO. LTD
Dear sir/madam please answer the following questions by tick the suitable options.
Q1. Which plans of IDBI federal do you have?
Childsurance ( )

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lifesurance ( )

incomesurance ( )

wealthsurance ( )

Q2. Is the premium mode of IDBI federal insurance product is easy?

Yes ( )

no ( )

Q3. What is the time period of IDBI federal products do you have?
5 years ( )

5-10 years ( )

lifetime ( )

Q4. What do like about the policy of IDBI federal?

Tax benefits ( )

high return ( )

Q5. Are you satisfied with the service provided by insurance agents?
Yes ( )

no ( )

Q6. Are The insurance plans policy and procedure of IDBI insurance company
understandable easily?
Yes ( )

no ( )

Q7. Are you satisfied with your current policy?

Yes ( )

no ( )

Q8. How do you rate the products of IDBI federal?

Good ( )

poor ( )

satisfactory ( )

Q9. Do you think IDBI federal products needs improvement?

Yes ( )

no ( )

Q10. Would you like to have another insurance policy in IDBI federal company?
Yes ( )

THANK

YOU

no ( )

FOR

QUESTIONNAIRE.
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YOUR

CO-OPERATION

IN

COMPLETING

THIS

52 | P a g e

Bibliography

Bibliography
Books
Kothari C.R , Research Methodology , 3rd edition, 2014,New age international publishers
Ltd- New Delhi
Malhotra Naresh K. & Berks Davis F., Marketing Research: An Apllied Approach, 3rd
edition, 2007, Prentice Hall of India

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Megazines and newspapers

The economic times

The hindustan times
Campaign (magazine) indian edition. 2009-08-07
DNA (newspaper). 2009-11-26

Websites

www.idbifederal.com
www.idbi.com
www.ageas.com
www.idbifederal.com
www.bimaonline.com
www.policybazaar.com
www.Business-standard.com

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