A FINAL PROJECT REPORT ON CUSTOMER PERCEPTION TOWARDS WEALTHSURANCE PLAN OF IDBI FORTIS LTD.

SPECIAL REFRENCE TO:(IDBI FORTIS LIFE INSURANCE, ROYAPETTAH, CHENNAI) A PROJECT REPORT SUBMITTED TO THE SCHOOL OF MANAGEMENT SRM UNIVERSITY

In Partial fulfillment of the requirements for the award of the degree of Master of Business Administration Submitted By:RICHA SINGH REG. NO.- 35080492 Under The Guidance Of:Company Guide Mrs.S.Yogalakhmi D.Manager IDBI FORTIS Project Guide Mr. S.Arun Kumar A.Professor Faculty SCHOOL OF MANAGEMENT

BONAFIDE CERTIFICATE

Certified that this project titled "Customer Perception Towards WealthsurancePlan of IDBI FORTIS LTD. is a bonafide work of Richa Singh (Reg no:- 35080492) who carried out the research under my supervision. Certified further, that to the best of my knowledge the work reported here in does not from part of any other project or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

Signature of the guide:

Signature of HOD:

Signature of the External Examiner:

ACKNOWLEDGEMENT

I owe everything in my life to other. A person single headed can achieve nothing. In my attempt to do the project many people have graciously extend their guidance, advice and criticism to improve our work.

I wish to express my heartful thanks to our Dean Dr.Jayashree Suresh for providing infinite facilities and gave me an opportunity to do this project work to be successful.

I express my sincere thanks to my project internal guide S.Arun Kumar for his guidance and valuable suggestions, which made this project, a successful one. I express my heartful gratitude to IDBI FORTIS Life Insurance Company Ltd. for providing me the opportunity to undertake this project in their esteemed organization. My gratitude also extends to the staffs of departments whose words of encouragements kept the spirits high throughout the course of my project.

ABSTRACT

This project is a study about the customer awareness towards wealthsurance plan of IDBI FORTIS LTD.. The study helps to find new target groups, which may help the improvement in performance of the customer. Chi-squire test has been used as a statistical tool for the research which finds the relation between age and risk taken by the respondents, amount invested and risk taken and purpose of investment and the annual income. The findings have been that there is no significant relationship between the aforementioned hypotheses. There is also relation between the educational qualification of the respondents and the awareness towards Wealthsurance plans. The respondents are willing to take moderate risk while investing in Wealthsurance plans. The overall picture states most of the respondents doesn't have the complete knowledge about the equity market and the debt market. So the investor should be educated about the equity and debt market. The education qualification of the respondent plays a vital role while investing in Wealthsurance plans. And also the advisors should be provided with good training about the products before they meet the customers. There is also difficulty for the respondents to monitor the market regularly which many of the respondents are not willing to do. So the company should create awareness of Wealthsurance plans and winning the confidence of the customer.

LIST OF CONTENTS

Sl. No.

TITLE NAME

Page No.

CHAPTER I

1.1 1.2 1.3 1.4 1.5 1.6 1.7

Introduction Statement of Problem Objectives of the study Research methodology Limitations of the study Scope of the study Tools Of Analysis Company profile Industry profile Product profile Review Of Literature Analysis and interpretation Summary Of Findings Recommendations Conclusion Appendices Bibliography

1 4 5 6 8 9 10 11 13 14 21 22 43 44 45 46 51

CHAPTER II

2.0 2.1 2.2

CHAPTER III

3.0 3.1

CHAPTER IV

4.0 4.1

CHAPTER V

5.0

LIST OF TABLES

S.No 1. 2. 3. 4. 5. 6. 7. 8.

TITLE OF THE TABLE Age classification of the respondents Gender classification of the respondents Education qualification of the respondents Occupation of the respondents Annual income of the respondents Respondents awareness of the insurance companies Purpose of investment in insurance Willingness of the respondents to take the risk while investing in insurance Investment in other avenues by the respondents Awareness of thewealthsurance Plans of IDBI fortis life Source of informations about the wealthsurance Plans Investment in the wealthsurance Plans of IDBI fortis life Amount invested in wealthsurance plan of IDBI fortis life Satisfaction level with respect to the service provided by IDBI fortis Investment made in other companies Education of the respondents who made investment in wealthsurance Plans Annual income of the respondents who made investment in wealthsurance Plans

Page No. 22 23 24 25 26 27 28 29

9. 10. 11. 12.

30 31 32 33

13.

34

14.

35

15. 16.

36 37

17.

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CHAPTER-1 INTRODUCTION
"Insurance" is basically a sharing device. The losses to assets resulting from natural

calamities like fire, flood, earthquake, accidents, etc., are met out of the common pool contributed by large number of persons who are exposed to similar risks. Thus contribution of many is used to pay the losses suffered by unfortunate few. However the basic principle is that loss should occur as a result of natural calamities or unexpected events which are beyond human control. Moreover the insured person should not make any gains out of insurance. It is natural to think of insurance of physical assets such as motor car insurance or fire insurance but often we forget that creator of all these assets is the human being whose efforts have gone a long way in building up the assets. In that sense, human life is a unique income-generating asset. Unlike the physical assets, which decrease in value with passage of time, the individual becomes more experienced and more matured as he advances in age. This raises his earning capacity. The purpose of life insurance is to protect the income of individual and provide financial security to his family, which is dependent on his income in the event of his premature death. The individual himself also needs financial security for the old age or on his becoming permanently disabled when his income will stop. Insurance also has an element of savings in certain plans.

Setting New Standards: The biggest benefit of liberalization has been to the customer, who now has a wide choice in terms of product range. As against the traditional endowment and money back policies Private insurance companies have come out with the latest version of market linked products available in the international markets and they are quite different from other conventional plans Market Link Plans provides for life insurance where the policy value at any time varies according to the value of the underlying assets at the time. Market link insurance plan is life insurance solution that provides the client with the benefits of protection and flexibility in investment. The investment decision is borne by the policy holder where by he may lose money and may not achieve his financial goals but has the potential of earning high returns which opportunity is not available under conventional policy .The value of the fund goes up and down based upon market conditions. It is a vehicle for small investors to participate and have the potential of gain from the equity markets. Market linked insurance plan is fundamentally different from with and without profit plans. Features of wealthsurance Plans: Wealthsurance plans distinguishes itself through the multiple benefits it provides to the customer the plan is a one stop solution providing 1. Life protection 2. Investment and savings 3. Flexibility 4. Transparency 5. Liquidity 6. Tax free return

In a falling interest rate scenario and boom experienced in the equity markets, insurance policies are becoming popular and favored by market savy and high networth individuals. Competition has spued the usage of technology in the insurance industry. While earlier obtaining the status of life insurance policy was a time consuming process, customers can now get their policy status and other information through call centers, interactive voice response systems and through the internet. The creation of the insurance Regulatory and Development Authority (IRDA) has helped customers vastly as the authority now specifies time limits for documentation and settlement of claims. The regulator has also made it mandatory for insurers to have a premium calculator on their website, which makes it easier for the customer to compare products across companies In the last three years of liberalization, promoters of private insurance companies have demonstrated their long-term commitment to the Indian market in the best way. more than investments by promoters in any other segment of the financial sector. The insurance industry has also played a significant role in mobilizing the savings of the individuals, providing cover against unforeseen contingencies and is investing these funds for economic development of the country. With only one fourth of the insurable population been provided insurance protection there is vast scope of growth for all the private companies in the future, as untapped potential is still very large. The total investment in private life insurance companies is now over Rs.3, 000 crore, which is much

STATEMENT OF PROBLEM IDBI FORTIS LTD. is the no 1 company among the private players. apart from other companies have come out with the latest version of insurance products available in international market, which are quiet different from other conventional plans. These plans have become very popular because of the transparency and the flexibility it offers to the client. In today's times, wealthsurance plan of IDBI FORTIS LTD. provides solutions for all the needs of a client like insurance planning, financial needs, financial planning for children's future and retirement plan. Despite having so many advantages the customer's perception towards these plans has been different. The company wants to find out how the customer feels about their wealthsurance plans and also about the service provided by them. The company also wants to find out the customer's perception towards the other companies in this industry.

OBJECTIVES OF THE STUDY

Primary Objective: To find out the level of customer perception towards IDBI FORTIS Life Insurance wealthsurance plans. Secondary Objective: To find out, most preferred area of investment by the customer. To examine the problems faced by customers in terms of service. To study the preference of customers in terms of different players in the industry

HYPOTHESIS:Quite often a research hypothesis is a predictive statement, capable of being tested by scientific methods that relates and independent variable to some dependent variable. The following hypotheses were set in order to achieve the objectives.

There is no significant relationship between the purpose of investment in insurance and the annual income.

There is no significant relationship between the risk taken while investing and the amount invested. There is no significant relationship between age of the respondent and the risk taken by them while investing.

RESEARCH METHODOLOGY
Introduction: According to the oxford advanced Learners Dictionary of current English the meaning of research is a "Careful Study or investigation especially in order to discover new facts or information". Research is defined as movement from the known to the unknown. It is an effort to discover something. According to Clifford Woody "Research comprise defining and redefining problems formulating hypothesis or suggested solutions, collecting/ organizing and evaluating data making deduction & research conclusions and at last carefully testing the conclusion to determine whether they fit the formulation hypothesis.

Research design:
Research design is a plan of action that guides the entire research. There are four types of research design available. They are 1. Exploratory Research Design 2. Descriptive Research Design 3. Diagnostic Research Design 4. Experimental Research Design In this Study Descriptive Research Design has been adopted.

Sampling Method: Simple random sampling method was adopted to select sample customer. under this sampling design, every item of the universe has an equal chance of inclusion in the sample. it is, so to say, a lottery method in which individual units are picked up from the whole group not deliberately but by some mechanical process. the list of 1200 customers of IDBI Bank in the Royapetth Branch has been given. Every customer has been given the numbers and the sample size of 120 has been selected by placing all these numbers in a box and the numbers are picked up randomly.

Sample Size: The sample size for the study is 120.

Pre-testing: Pre-testing as it is known is a method which has to be followed strictly. Once questionnaire is drafted it should be field tested before finalizing. he responses are studied to determine the need for restructuring the questionnaire. Pre-testing was done on a group of 15 respondents. With the result of the pre-testing the researcher has reframed some of the questions. Period of Study: The period of study is for two months i.c., March to April 2010. Method of Data Collection: The data collected for the study includes both primary and secondary data in order to attain the objectives of the study. Apart from this information regarding the company, future prospects etc have been collected from websites, clipping, from newspapers, magazines, journals, books.
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Questionnaire Design: Quite often questionnaire is considered as the heart of a survey operation. Hence it should be very carefully constructed. Questionnaire was prepared with the combinations of various types of questions which have been listed below. The number of questions used under each type are 2 yes/no questions, 11 closed ended questions, 2 open ended questions and 2 scaling/ranking questions. Limitations of the Study: The time constraint had restricted the researcher from an in depth study. The number of respondents who respond to the survey being limited there are chances for bias in the output of the survey. The respondents have little awareness over the private companies. So, it is difficult to find out the opinion about the wealthsurance plans of the company. most of the respondents are not
interested to give their suggestions for the survey.

SCOPE OF THE STUDY

The survey is confined to opinion survey about IDBIfortis wealthsurance Plans in Royapettah, chennai region. The study is to find out the customers perception towards IDBI wealthsurance plans. The study is conducted in order to know the satisfaction level of customers in terms of services provided by IDBIfortis life insurance plan. The respondent willingness to take the risk while investing in wealthsurance plans is also analyzed. The study is conducted in order to know how the age, income, education, and occupation of the respondents will influence the investment in wealthsurance plans. The study also involves in identifying and analyzing the purpose of insurance.

TOOLS OF ANALYSIS
The role of statistics in research is to furnish as a tool in designing research, analyzing its data and drawing conclusions there from. As every individual clearly knows that a researcher cannot ignore the science and statistics. Tools used are as follow.

1. Chi-Square test : The objective of the chi-square test is to determine whether there is any significant difference exists among the various groups. Chi-square test involves comparison of expected frequency (Ei) with observed frequency (Oi) to determine whether the difference between the two is greater than the tabulated value that might occur by chance. There are 5 steps in using chi-square test. 1. The difference between each observed frequency and each expected frequency is computed. 2. The difference is squared. 3. Each squared difference is divided by the respective expected frequency. 4. Their quotients are added together to obtain the computed chi square value. 5. This computed value is then compared to tabulate chi-square value. If the computed x2 value is greater than the tabulated x2 value at a predetermined level of significance and degrees of freedom, the hypothesis is rejected. On the other hand, if the calculated x2 value is less than the tabulated valued, the hypothesis is accepted.

X2

= (O-E)2/E

Where, O = Observed frequency E = Expected frequecy 2. Weighted Average method : When the relative importances of the different observations are not the same, we compute weighted arithmetic mean. The terms "Weight" stands for the relative importance of the different observations. The formula for this is, Xw = WXi/Wi Where, Xw Xi Wi = = = Weighted arithmetic mean The variable Weights attached to the variable Xi i-1 ................. n 10

CHAPTER-II COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd, is a joint venture between three leading financial conglomerates Indias premier development and commercial bank, IDBI, Indias leading private sector bank, Federal Bank and Europes premier Bancassurer, Fortis, each of which enjoys a significant status in their respective business segments. In this venture, IDBI owns 48% equity while Federal Bank and Fortis own 26% equity each. IDBI Fortis launched its first set of products across India in March 2008, after receiving the requisite approvals from the Insurance Regulatory Development Authority (IRDA). Today, we offer our services through a vast nationwide network across the branches of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and partners.

About the Promoters:

IDBI Bank Ltd. continues to be, since its inception, Indias premier industrial development bank. Created in 1956 to support Indias industrial backbone, IDBI Bank has since evolved into a powerhouse of industrial and retail finance. Today, it is amongst Indias foremost commercial banks, with a wide range of innovative products and services, serving retail and corporate customers in all corners of the country from over 620 branches and more than 1050 ATMs. The Bank offers its customers an extensive range of diversified services including project financing, 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 Indias financial sector such as the Securities and Exchange Board of India (SEBI), National Stock Exchange of India Limited (NSE) and National Securities Depository Ltd.

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Federal Bank is one of Indias leading private sector banks, with a dominant presence in the state of Kerala. It has a strong network of over 640 branches and 670 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. The Bank operates on the core banking platform and is RTGS/ NEFT enabled through which it offers state-of-the-art technology enabled products and services. In addition to interconnected branches and ATMs, the Bank has a wide range of services like Internet Banking, Mobile Banking, Tele Banking, 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. Fortis is an international insurance group composed of AG Insurance, the overall market leader in life and non-life insurance in Belgium, distributing its insurance products through the network of BNP Paribas Fortis Bank and independent insurance brokers, and Fortis Insurance International with subsidiaries in the UK, France, Hong Kong, Luxembourg (Non-life), Germany, Turkey, Russia and Ukraine, and joint ventures in Luxembourg (Life), Portugal, China, Malaysia, Thailand and India. At IDBI Fortis we endeavor to deliver products that provide value and convenience to the customer. Through a continuous process of innovation in product and service delivery we intend to deliver world-class wealth management, protection and retirement solutions to Indian customers.

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INDUSTRY PROFILE

Insurance is primarily collective cooperation to share a particular risk. This concept is as old as the dawn of human civilization. The joint family system in India is an example of concept of life insurance. Marine insurance is considered to be the oldest branch of insurance for providing protection against loss/damage in sea voyages. Life insurance in its modem form came to India from England in 1818 with the formation of Oriental Life insurance Company in Calcutta mainly by Europeans to help widows of their kin. By 1968 there were 285 companies doing business of insurance in India. These companies were insuring European lives. Indians were treated substandard lives and were offered insurance with an extra premium of 15 to 20% over European lives. Bombay life Assurance Society was the first Indian Company started in 1870 that started insuring Indians at standard rates. Oriental Govt Security Life Assurance Company established in 1874 became a leading Indian insurance Company. Life Insurance business in India was nationalized by an Ordinance on 19 Jan 1956. LIC Act was passed in July 1956 LIC of India started in operation on 01 Sep 1956. Prior to nationalization of life insurance business there were 245 companies. Which were merged with LIC. General insurance industry in India was nationalized in the Year 1972 by merging 107 companies. With effect from 1st Jan 1973. GIC of India and its four subsidiary companies i.e. New India Assurance Company, Oriental Insurance Company, National Insurance Company, United India Insurance Company started operations in General Insurance Business.With the passing of IRDA Act 1999, the insurance sector was opened up, and Private insurance Companies were allowed to enter life/Non life insurance business with a maximum of 31% participation by a foreign partner. Presently there are over the 25 Life insurance Companies and 20 Non-life insurance Companies operating in the insurance market.

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ABOUT THE WEALTHSURANCE PLAN:At IDBI Fortis, we think differently about insurance. We have set out to create products that help realise your unique dreams and aspirations, by drawing upon the power of insurance. Our Wealthsurance line of products combines wealth creation and insurance protection into one powerful financial solution. Wealthsurance Plans allow you to build wealth with planned as well as flexible savings along with a choice of investment options. What is more, once you sign up, Wealthsurance Plans can ensure that your financial goals are achieved even if there were unforeseen crises such as death, accident, disablement or serious illness. The Wealthsurance Foundation Plan makes available to you the full power and features of this truly versatile range. Let me highlight a few key concepts. Wealthsurance is a comprehensive investment solution

Wealthsurance is designed to be an investment solution. It offers a full range of investment choices similar in features to those you are already familiar with such as bank deposits, bonds, post office schemes or mutual funds. The investment options are designed to meet the needs of all types of investors, whether cautious or risk-taking. So whenever you are looking to make an investment, think about investing in Wealthsurance. Wealthsurance is a wealth-management account

Wealthsurance is indeed a wealth-management solution. You can make a single investment or regular contributions. You can even manage most of your financial savings in it by choosing an appropriate mix of investment options. Think about the convenience of managing your entire portfolio in a single account and watch your wealth grow over time.

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Wealthsurance is for those who will live

Life insurance is sometimes thought of as for those who might die, but Wealthsurance is for those who will live. While it provides benefits upon death, Wealthsurance is also designed to offer a whole package of living benefits. You can get benefits on terminal illness, major diseases, hospitalisation and disablement so you are well cared for in the event of a health crisis or accident. Wealthsurance is a tax-free wealth-builder account

In Wealthsurance, you can build wealth free of income tax. Not only do you get tax benefits on your contributions, but all the returns you earn on your investments and the benefits you receive are tax-free. You can also switch amongst investment options without incidence of any tax. In essence, Wealthsurance is a tax-free wealth management account.

Wealthsurance is a long-term plan with short-term liquidity

Wealthsurance allows you to build wealth over the long-term, but it also gives you the ability to withdraw your money when needed, after completion of three years from the commencement of the plan. With Wealthsurance you can achieve medium as well as long-term financial goals.

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Wealthsurance meets your changing needs

Wealthsurance is designed to meet your investment and insurance needs even as they change over time. You may not need another plan because you will be able to increase, decrease or manage the wealthbuilding and insurance benefits as you desire. Wealthsurance is different from traditional insurance Wealthsurance is not like traditional life insurance you might know. It is an investment plan focused on wealth creation and living benefits. Sometimes people think that they only need a limited amount of life insurance. But as long as you have financial goals and you wish to build and manage wealth, or desire living benefits in your own lifetime, you will find Wealthsurance useful. Wealthsurance has as many options as you need Wealthsurance gives you multiple options because we want to meet your specific needs. At the same time we have made it easy for you to choose by developing Ready Plans to meet the typical needs of customers. Quite likely there is a Ready Plan that meets your needs. But if you wish, you can build a Custom Plan to suit your own circumstances Contact us to get your Wealthsurance Plan today

I invite you to please spend a little time in browsing through the Wealthsurance section on this website. I am sure that you will appreciate its flexibility and benefits. Please contact us and our representative will visit you to assist in making your Wealthsurance Plan. Get your Plan today and benefit from the great possibilities Wealthsurance offers. Looking forward to welcoming you to the family of Wealthsurers.

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MISSION AND VISION

Our Vision
TobetheleadingProviderofwealthmanagement,protection&retirementsolutionsthatmeetstheneedsofour customer&addsvaluetotheirlives.

OurMission:
Weaimtoberecognisedasaleadingproviderofwealthmanagement,protectionandretirement propositionsthatsatisfytheneedsofandaddvaluetoourkeycustomersegments. Weshallcontinuallystrivetoenhancethecustomerexperience,inrelationshipmanagementandservice delivery,andinteractwithourcustomersinthemostconvenientandcosteffectivemanner. Weshallbetransparentinourdealingsandactwithintegrity. Weshallinvestinandbuildqualityhumancapitalinordertoachieveourmission.

Ourcorevalues
TransparencyCrystalClear Clearcommunication,nofineprint. Nomiscommunication

ValuetoCustomersAlwaysagooddeal Aproductandserviceofferinginwhichcustomersperceivevalue

RockSolidDeliveronpromise Financialstrength,operationallyrobust,clearnessinclaims

CustomerfriendlyHandinhand Adviceandsupportinworkingwithcustomersandpartners

ProfittoStakeholdersBalanceStakeholderinterests

Balancetheinterestsofcustomers,partners,employees,shareholdersandcommunity

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HIST TORY OF IDBI FOR RTIS LTD.

IDBIFortisLifeInsurance I Co. C Ltd.,isajointventu urebetweenthreefina ancialcomp paniesdev velopmentand a comm mercialban nk,IDBIBank,Indiaspr rivatesecto orbank,Fed deralBankand a Europe sBancassu urer,Fortis, whic chwasform medonMarc ch2008. Inthis t venture e,IDBIBank kowns48% %equitywhi ileFederalBank B andFo ortis own26%equity yeach

FederalBank 26% % IDBIBa ank 48% % Fo ortis 26 6%

==

HIST TORY: 2006 6: IDBI Ban nk, Federal Bank B and Belgian-Dutc B ch insuranc ce major For rtis Insuranc ce Inter rnational NV V signed a MoU M to star rt a life insu urance comp pany 2008 8: IDBI Fort tis Life Insu urance Co. Ltd., L which started its o operations in i March 20 008

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2008: IDBI Fortis opens its second branch in Andhra Pradesh in Vijayawada 2008: IDBI Fortis Life positive on assured return products 2008: IDBI Fortis launches the Bondsurance Plan 2009: IDBI Fortis announces Rs 250cr capital infusion 2009: Nimbus ropes in IDBI Fortis as title sponsor of IndiaSri Lanka series 2009: 'IDBI Fortis' Boss-Ka-Boss receives PRCI Award 2009: IDBI Fortis launches Retiresurance Pension Plan 2009: IDBI Fortis scores with Goalsurance 2009: IDBI Fortis reaches the banks of Hoogly 2009: IDBI Fortis launches Incomesurance Immediate Annuity 2009: IDBI Fortis Life Insurance uses an interactive application to help users easily calculate their taxes 2009: IDBI Fortis reaches the City of Eastern Light 2009: IDBI Fortis receives bronze Dragon at 'PMAA 2009' 2009: IDBI Fortis Life Insurance introduces financial inclusion plan in rural Orissa 2009: IDBI Fortis launches Termsurance Protection Plan 2009: IDBI Fortis redefines endowment & money back with Incomesurance 2009: IDBI Fortis to open 65 more branches; raise headcount by 1,000

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Why Wealthsurance Your dreams and aspirations need money to fulfill them. Make a promise to build wealth

Everyone needs money to fulfill their dreams. Everyone has unique dreams and aspirations. For themselves and their loved ones. Whether it is to build a house, educate a child or gain financial security. The list can be long, but most of them require money.

Make a promise to save adequately and build wealth. Dreams do not come true, unless you make the effort to bring them true. To meet your cherished goals, you have to make the promise to save enough money and build the wealth you need. But once you have made that promise, you will need a plan which can ensure that your goals will indeed be

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CHAPTER-III

REVIEW OF LITERATURE
In this section, the literature has been reviewed with especially a view to the customer's perception and how to keep business with customers. Customer Perception: This truth is no different from raising a small child. Once a child understands (Perceives) that negative actions swiftly result in negative consequences, the child will change his (or) her behaviour. And once a child understands (perceives) that positive actions will earn positive rewards he will want to continue to behave appropriately in order to be rewarded. The same concept applies to customers perception. "It is not who you are, its who people think you are" Your companies success can be measured in only one way. The perceived value to your customer. Everything else is secondary.It provides you with a way to accurately measure how customers think of your company, products & services. According to Zaltman (P6) "ability to grasp or understand the mind of the market represent the next source of competitive advantages for the marketers" it therefore behooves readers to over come six key areas so as to recognize that. 1. In general consumer display both reason and emotion functioning simultaneously. 2. Unconscious thinking reflects forces that operate below the level of awareness or beyond the power of articulations. 3. Mind, Brains, Bodies & culture interact in a dynamic, open complex adoptive system. 4. Memories are constructed from metaphors, myths and other aspects of social discourse. 5. Verbal languages represent only as small portion of largely non verbal thought. 6. Consumer's actively form a range of memories feelings & experiences. Such recognition suggest the importance of unconscious forces (including feeling images, sensation & experience) that guides the consumer as a complex system. These forces require that we distinguish knowing that from why consumer prefer one offering to another, the surface level quantity of data gathered from the deeper level quantity of the meanings extracted mere buying from the fill consumption experience includes all relevant emotion & meanings involved.
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3.1:-ANALY YSIS AND D INTERP PRETAT TION AG GE

1. CL LASSIFICATION OF F THE RESPONDEN NTS

SNO O 1 2 3 4 5

A AGE 25 5 30 31 35 36 6 40 41- 50 A ABOVE 51 T TOTAL

NO.OF F RESPO ONDENTS S 10 24 33 29 24 120

PERC CENTAGE % 8.3 20 27.5 24.1 20 100

Infer rence: From the e above tab ble it can be e inferred that t 27.5% respondents are betwe een the age group 36 40 years s , 24.1% of f the respon ndents were e between th he age group p 41 50 , followed b by above 51 , 31- 35 and a 25 30 0 with the percentages p 20%, 20% and 8.3%

35 5 30 0 25 5 20 0 15 5 10 0 5 0 1 2 3 4 5 AGE NO.O OFRESPONDEN NTS PERCENTAGE%

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2. GENDER CLASSIFICATION OF THE RESPONDENTS:-

SNO 1 2

GENDER MALE FEMALE TOTAL

NO.OF RESPONDENTS 74 46 120

PERCENTAGE % 61.6 38.3 100

INFERENCE: From the above table it can be is inferred that 61.6% are male respondents and 38.3% are female respondents.

GENDERCLASSIFICATION

1MALE 2FEMALE

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3.EDUC CATION QU UALIFICAT TION OF THE T RESPO ONDENTS S SNO 1 2 3 4 EDUCA ATION HSC C GRADU UATE PG G OTHE ERS TOTA AL NO.O OF RESPOND DENTS 23 47 33 17 120 PERCENT TAGE % 19.1 1 39.1 1 27.5 5 14.1 1 100

INFERE ENCE: F From the tab ble it can be inferred i that 39.1% of the e respondent ts are gradua ates, 27.5% are a the post graduates follow wed by Hsc and a others with w 19.1% an nd 14.1%

EDUCA ATION QU UALIFICA ATION OF THE RESP PONDENT TS

120 100 80 60 40 20 0 1 2 3 4 TAGE PERCENT NO.OFRESPONDANTS EDUCATION EDUC CATION NO.O OFRESPONDA ANTS PERC CENTAGE

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4. OCC CUPATION N OF THE RESPONDE R ENTS SN NO 1 2 3 4 5 6 OCCUP PATION SELF EM MPLOYE GO OVERNMEN NT SERVAN NT PRIV VATE HOUSE E WIFE RETI IRED OTH HERS TOT TAL NO.OF RES SPONDENTS 27 28 32 11 14 8 120 PER RCENTAGE E % 22.5 23.3 26.6 9.1 11.6 6.6 100

INFERE ENCE:

From th he table it ca an be inferr red that 26.6 6% of privat te employee es, 23.3% a are governm ment servants s followed by b self emp ployees, retir red, house wife's w and others. o

120 100 80 60 0 40 0 20 0 0 1 2 3 4 EDU UCATION NO.OFRESPOND DANTS PER RCENTAGE

EDUCAT TION

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5. ANNUAL INCOME OF THE RESPONDENTS SNO ANNUAL INCOME NO.OF. RESPONDENTS PERCENTAGE %

1 2 3 4 5

BELOW 1 LAC 1-2 LAC 2-5 LAC 5- 10 LAC ABOVE 10 LAC TOTAL

27 53 18 12 10 120

22.5 44.1 15 10 8.3 100

INFERENCE: From the table it can be inferred that 44% of the respondents are in the income group 1- 2 lac, followed by below 1 lac, 2-5 lac, 5-10 lac and above 10 lac.

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NNUAL INC COME OF THE T RESPO ONDENTS AN

120 100 80 ANNUALINCOME 60 40 20 0 1 2 3 4 5 NO.OF.RESPONDENTS R S PERCENT TAGE%

6. RESPOND DENTS AWARENESS OF INSURA ANCE COM MPANYS

SNO

MPANY COM

NO.OF. RESPONDENTS S 52 26 12 8 22 120

PER RCENTAGE E % 43.3 21.6 10 6.6 18.3 100 27

1 2 3 4 5

L LIC IDBIF FORTIS BIRLA SUN S LIFE IDBI FOR RTIS LIFE OTH HERS TO OTAL

IN NFERENCE E: Fro om the abov ve table 43.3% of the re espondents were aware e of lIC foll lowed by ID DBI FO ORTIS, OTH HERS, BIR RLA SUN LI IFE, and SB BI LIFE.

120

100

80 COM MPANY 60 NO.O OF.RESPONDE ENTS PERC CENTAGE% 40

20

0 1 2 3 4 5

7. PURPOSE E OF INVES STMENT IN N INSURAN NCE

SNO 1 2 3 4 5

PUR RPOSE OF INV VESTMENT LIFE CO OVERAGE RETU URNS LIQU UIDITY INVES STMENT OTH HERS TOTAL

NO.OF. RES SPONDENT T 72 12 8 22 6 120

PERC CENTAGE % 60 10 6.6 18.3 5 100

28

FERENCE: NF

From th he table it can c be inferr red that 60% % of the res spondents ha ave invested d in ins surance for life coverag ge, followed d by investm ments, return ns, liquidity y and others s.

120

100

80

PURPOSEOF ESTMENT INVE NO.O OF.RESPOND DENT PERC CENTAGE%

60

40

20

0 1 2 3 4 5

8. WILLING GNESS OF THE RE ESPONDENTS TO TAKE THE E RISK WHILE W V RANCE INVESTING IN INSUR

SNO

INV VESTMENT T RISK

NO.O OF. RESPOND DENTS 18 8 43 3 28 8 31 120 0

PERCEN NTAGE % 15 5 35.8 23.3 25.8 100 0

1 2 3 4

HIGH RIS SK M MODERATE RISK LOW RIS SK RISK AVER RSE TOTAL L

29

: INFERENCE: From th he table it can n be inferred d that 35.8% of the respon ndents are w willing to take e oderate risk followed f by risk r averse, low l risk , and d high risk. mo

120 100 80 IN NVESTMENTRISK R 60 40 20 0 1 2 3 4 NO.OF.RESPON NDENTS PE ERCENTAGE%

MENT IN OT THER AVE ENUES 9. INVESTM

SNO

INVES STMENTS

NO.OF. RE ESPONDENT TS 25 47 16 18 14 120

PERCENTAG GE % 20.8 39.1 13.3 15 11.6 100

1 2 3 4 5

MUTUA AL FUNDS FIXED DEPOSITS SH HARES REAL ESTATES OT THERS TO OTAL

30

INFERENCE : From th he table it can n be inferred d that 39.1% of the respon ndents invested in fixed posits follow wed by mutua al funds, real l estates and others. dep

120 100 80 INVE ESTMENTS 60 40 20 0 1 2 3 4 5 NO.OF.RESPOND DENTS PERCENTAGE%

10 . AWAREN NESS OF WEALTHSUR W RANCE PL LANS OF ID DBIFORTIS S. S SNO 1 2 3 4 AWARE ENESS FULLY AWARE A P PARTIALLY Y AWARE NOT AW WARE CANT SAY TOT TAL NO.O OF.RESPON NDE NTS 32 52 20 16 120 PE ERCENTAG GE % 26.6 43.3 16.6 13.3 100

INFERENCE: : From th he table it can n be inferred d that 43.3% of the respon ndents are pa artially awar re of arket link pla ans followed by fully awa are, not awar re and can't say. s ma

120 100 80 AWAR RENESS 60 40 20 0 1 2 3 4 NO.O OF.RESPONDENTS PERCENTAGE%

RMATION ABOUT THE T WEAL LTHSURAN NCE PLAN NS OF 10. SOURCE OF INFOR B FORTIS S IDBI

SNO

E OF SOURCE INFORMA ATION NEWPAP PERS MEDI IA ADVISO ORS FRIEN NDS TOTA AL

NO.O OF.RESPOND DENTS

PERCENTAGE % 20.8 2 18.3 1 45.8 4 15 100

1 2 3. 4.

25 22 55 18 120

INFERENCE Fro om the above e table it can n be inferred that t 45.8% of o the respon ndents got the e information n about the e market link k plans throug gh advisors followed f by newspapers, n media and f friends

120 100 80 SOURC CEOFINFORM MATION 60 40 20 0 1 2 3 4 NO.OF.RESPONDENT TS PERCENTAGE%

INV VESTMEN NT IN THE WEALTHSU W URANCE PLANS P OF IDBI I FORT TIS SNO 1 2 INVESTM MENT MADE E YES NO TOTAL L NO.OF.R RESPONDE ENTS 47 73 120 TAGE PERCENT % 39.1 60.9 100

33

INFERENCE:

From the above table we can infer that 60.9% of the respondents are not aware of market link plans. Only 39.1% respondents are aware of the Market Link plans

PERCENTAGE%

1YES47 2NO73

STATISTICAL ANALYSIS

34

1. Chi-square test to find out the relationship between the purpose of investment in insurance and the annual income of the respondent. Null Hypothesis (Ho) : There is no significant relationship between the purpose of investment in insurance and the annual income. Alternate Hypothesis (H1) : There is significant relationship between the purpose of the investment in insurance and the annual income.

Purpose of investment in Insurance

Life Returns Liquidity Investment Others Coverage

Total

Annual Income Below 1,00,000

12

27

1 to 2,00,000 2 to 5,00,000 5 to 10,00,000 Above 10,00,000 Total

28 15 9 8 72

7 0 0 0 12

2 1 2 0 8

11 2 12 2 22

5 0 0 0 6

53 18 12 10 120

35

CHI SQUARE TEST 0 12 5 3 6 1 28 7 2 11 5 15 0 1 2 0 9 0 2 1 0 8 0 0 2 0 E 16.2 2.7 1.8 4.95 1.35 31.8 5.3 3.53 9.7 2.65 10.8 1.8 1.2 3.3 0.9 7.2 1.2 0.8 2.2 0.6 6 1 0.66 1.83 0.5 (0-E)2 17.64 5.29 1.44 1.025 0.1225 14.44 2.89 2.3404 1.69 5.5225 17.64 3.25 0.04 1.69 0.81 3.24 1.44 1.44 1.44 0.36 4 1 0.4356 0.17 0.25 Total = (0-E)2 E 1.088 1.959 0.8 0.222 0.0907 0.454 0.545 0.663 0.1742 2.083 1.6333 1.8055 0.333 0.5121 0.9 0.45 1.2 1.8 0.654 0.6 0.666 1 0.66 0.0928 0.5 20.5859

Degree of freedom

(r-1) (c-1) (5-1) (5-1) = 16

The tabulated value of x2 at 16 degree of freedom and at 0.05 level of significance is 26.296 Since the calculated value is less than the tabulated value our null hypothesis is accepted and alternate hypothesis is rejected. Inference: There is no significance relationship between the purpose of investment in insurance and the annual income. 2. Chi-square test find out the relationship between the risk taken while investing and the amount invested.

Null Hypothesis: There is no significant relationship between the risk taken while and the
amount invested. Alternate Hypothesis: There is significance relationship between the risk taken while investing and the amount invested.

Risk taken while High Risk Moderate Risk Low Risk Risk Averse Total

Investing

Amount invested Below 25,000 25,000 - 50,000 50,000 - 75,000 6 3 2 5 2 3 5 4 2 2 2 0 18 11 7

TABLE CHI- SQUARE

0 6 5 5 2 3 2 4 2 2 3 2 0 2 3 0 1 1 3 0 0

E 5 6.1 4.2 2.7 3.04 3.8 2.6 1.7 1.9 2.3 1.7 1.04 1.7 2.04 1.4 0.9 1.3 1.7 1.1 0.7

(0-E)2 1 1.21 0.64 0.49 0.0016 3.24 1.96 0.09 0.01 0.49 0.09 1.0816 0.09 0.9216 1.96 0.01 0.01 1.69 1.21 0.49 Total =

(0-E)2 E 0.2 0.19 0.15 0.18 0.005 0.85 0.75 0.05 0.005 0.21 0.05 1.04 0.05 0.45 1.4 0.01 0.01 0.9 1.1 0.7 8.3955

Degree of freedom (4-1) (5-1) 12 The tabulated value of x2 at 12 degrees of freedom and at 0.05 level of significance is 21.026 Since the computed value is less than the tabulated value Null Hypothesis is accepted and alternate hypothesis is rejected.

Inference: There is no significant relationship between the risk taken while investing and the amount invested. Chi-Square table find out the relationship between the age of the respondents and the risk taken by the respondent while investing. Null Hypothesis: There is no significant relationship between age of the respondent and the risk taken while investing.

Alternate Hypothesis:

There is significant relationship between the age of the respondent and the risk taken while investing.

AGE RISK

25-30

31-35

35-40

Above 51

Total

High Risk Moderate Risk Low Risk

Risk Averse TOTAL

3 4 2 1 10

5 12 3 4 24

6 19 4 4 33

1 3 10 10 24

18 43 28 31 120

TABLE CHI- SQUARE

0 3 5 6 3 1 4 12 19 5 3 2 2 4 9 10 1 4 4 12 10

E 1.5 3.6 5 4.35 3.6 3.6 8.6 12 10.3 8.6 2.3 5.6 7.7 6.8 5.6 2.6 6.2 8.5 7.5 6.2

(0-E)2 2.25 1.96 1 1.8225 6.76 0.16 11.56 49 28.09 37.36 0.09 6.76 13.69 4.84 19.36 2.56 4.84 20.25 20.25 14.44 Total =

(0-E)2 E 1.5 0.54 0.2 0.4 1.9 0.04 1.34 4.08 2.7 3.6 0.03 1.2 1.7 0.07 3.45 1 0.07 2.38 2.7 2.3 32.38

DEGREE OF FREEDOM:(r-1) (c-1)

4x5 21.026 The tabulated value of x2 at 12 degrees of freedom and at 0.05 level of significance is 21.026. Since the tabulated value is less than the calculated value our alternate hypothesis is accepted and null hypothesis is rejected.

Inference: There is significant relationship between the age of respondents and amount the investments.1. Weighted average method to find out the level of satisfaction of respondents For flexibility

Weights Claim settlements Quarterly Reports Customer care Service Renewal premium Others

r1=w5 18

r2=w4 9

r3=w3 8

r4=w2 10

r5=w1 2

Weighted Weighted points Average 172 11

Rank III

14

13

10

166

11.06

IV

16

10

164

10.53

23

183

11.86

16

15

171

11.07

II

From the table is a evident that renewal premium has been given the first rank followed by others, claims settlement, quarterly reports & customer care service. 2. Weighted average method to find out the customers perception towards other players in the industry.

For Security: Weights LIC IDBI Fortis HDFC Standard Life Birla Sun life SBI Life Others r1=w5 68 41 26 19 33 12 r2=w4 22 26 34 14 24 27 r3=w3 9 19 18 41 19 15 r4=w2 14 25 22 20 30 24 r5=w1 7 9 20 26 14 32 Weighted points 490 425 384 340 392 293.4 Weighted Average 32.66 28.33 25.6 22.66 26.13 19.53 Rank I II IV V III VI

From the table it is evident that people are more secure with LIC followed by IDBI fortis, SBI Life, HDFC Standard Life, Birla Sun Life and Others.

For Liquidity:

Weights LIC IDBI Fortis HDFC Standard Life Birla Sun life SBI Life Others

r1=w5 22 37 21

r2=w4 14 17 19

r3=w3 38 8 16

r4=w2 19 32 25

r5=w1 27 26 39

Weighted points 351 367 318

Weighted Average 23.4 24.46 21.2

Rank II I V

28 30 16

9 18 20

21 15 26

23 27 16

39 30 42

324 345 312

21.6 23 20.8

IV III VI

From the table it can be stated that IDBI Fortis has been given the First rank in terms of liquidity followed by LIC, SBI Life. Birla Sun Life, HDFC Standard Life and Others.

From the table is a evident that renewal premium has been given the first rank followed by others, claims settlement, quarterly reports & customer care service. 2. Weighted average method to find out the customers perception towards other players in the industry.

Weights LIC IDBIFortis HDFC Standard Life Birla Sun life SBI Life Others

r1=w5 28 27 19 21 14 11

r2=w4 31 18 22 19 22 20

r3=w3 12 23 27 31 19 32

r4=w2 23 31 14 16 35 30

r5=w1 26 21 38 33 30 27

Weighted points 372 359 330 339 315 318

Weighted Average 24.8 23.93 22 22.6 21 21.2

Rank I II IV III VI V

From the table it can be stated that LIC has been given the First rank in terms of flexibility followed by IDBIFortis, Birla Sunlife, HDFC Standard Life, SBI Life and others.

For Service:

Weights LIC IDBIFortis HDFC Standard Life Birla Sun life SBI Life Others

r1=w5 28 52 21 27 15 23

r2=w4 22 18 32 18 25 10

r3=w3 14 21 16 31 22 39

r4=w2 32 19 27 16 23 25

r5=w1 24 10 24 28 35 23

Weighted points 357 443 259 360 322 345

Weighted Average 23.8 29.53 23.93 24 21.46 23

Rank IV I III II VI V

From the table it can be stated that IDBIFortis has been given First rank in terms of service followed by Birla Sun life, HDFC Standard Life, LIC, Others and SBI.

For Returns:

Weights LIC ICICI Fortis HDFC Standard Life Birla Sun life SBI Life Others

r1=w5 36 38 21 28 19 22

r2=w4 23 29 19 16 27 15

r3=w3 199 21 26 19 13 31

r4=w2 26 15 31 18 31 18

r5=w1 16 17 23 39 30 34

Weighted points 397 416 344 336 334 333

Weighted Average 26.46 27.73 22.93 22.4 22.26 22.2

Rank II I III IV V VI

From the table it can be stated that IDBIFortis has been given the First rank in terms of returns followed by LIC, HDFC Standard Life, Birla Sun Life, SBI Life and Others.

Para Meters companies IDBIFortis HDFC Standard Life Birla Sun life SBI Life Others

Security

Liquidity

Flexibility Service

Returns

I II IV V III VI

II I V IV III VI

I II IV III VI V

IV I III II VI V

II I III IV V VI

From the table it can be inferred that LIC has been given first rank in terms of security, IDBI Fortis has been given first rank in terms of liquidity, LIC has been given first rank in terms of flexibility and IDBI Fortis has been given first rank in terms of service and returns.

CHAPTER-IV FINDINGS

1. The respondents have wide knowledge about the market link plans of different insurance companies. 2. The respondents are willing to take moderate risk while investing in market link plans. 3. The education qualification of the respondent plays a vital role while investing in market link plans. The respondent working in private organization is fully aware of the market link plans. 4. Most of the respondents dont have the complete knowledge about the equity 5. Market and the debt market. The respondents feel that the advisors are a major source of information about the 6. Market link plans. 7. Most of the respondents are satisfied with the service provided by the company. 8. LIC has been a major competitor for IDBI Fortis in the market link plans.

RECOMMENDATIONS

1. The investor should be educated about the equity and debt market. 2. IDBIfortis have to concentrate on lower income category by coming out with cheaper premium rates. 3. The investors should be given monthly reports instead of quarterly reports. 4. IDBIfortis has to concentrate more on advertisement through news papers televisions etc., in order to inform the customers about the different options available in market link plans. 5. The advisors should be provided with good training about the products before they meet the customers. 6. Against the population 105 crores only 10 crores are covered by insurance. Private insurance companies have to reach to all segment of market by winning the confidence of the public.

CHAPTER- V

CONCLUSIONS
Life is uncertain and life insurance makes this uncertain as certain.

Even though the breadwinner of the family dies, the family will not suffer and they can enjoy the life insurance cover. Life insurance will protect the family and make them happy in future. People make their investment in market link plans for life coverage as well as for returns but they have to take high risk Though there is a lot of action and excitement in the market by advertisements and sales promotions by IDBIfortis still there lingers a doubt among the common people of how safe it is to go for private insurance players. Since insurance is a long-term investment, many investors are worried whether the private companies will be exits around after 20 years when the policy matures. Such apprehensions however are not wrong. But to safeguard the investors, all the insurance companies are playing under IRDA standard frameworks. So through the research study, the researcher found the positive level of customer awareness towards insurance linkage plans. But the private sector insurance companies should give confidence to the investors towards the linkage plans. Insurance companies have to conduct seminars contact Programmes, Counselling sessions to the investors for develop their insurance knowledge. Insurance companies so far have concentrated only on 10% of the total population. They have to concentrate on remaining 90% of the people.

APPENDICES

QUESTIONNAIRE
To study the Customers Perception towards wealthsurance plans of IDBI FORTIS Life Insurance

Name :

Address :

1.

Sex :

Male [ ]

Female [ ]

2.

Age: 25 - 30 [ ] 31 - 35 [ ] 36 - 40 [ ] 41 - 50 [ ] Above 51 [ ]

3.

Education: HSC [ ] Graduate [ ] PG [ ] Others [ ]

4.

Annual Income: Below1, 00,000 [ ] 2 to 5, 00,000 [ ] Above 10, 00,000 [ ] 1- to 2, 00,000 [ ] 5 to 10, 00,000 [ ]

5.

Occupation: Self Employee [ ] House Wife [ ] Government Servant [ ] Retired [ ] Private Employee [ ] Others [ ]

6. If I say Life Insurance which company comes to your mind? L.I.C. [ ] IDBI Fortis [ ] Birla Sun Life [ ]

SBI Life [ ]

Others [ ]

7. What is the purpose of your investment in insurance?

Life Coverage [ ] Investment []

Returns [ ] Others [ ]

Liquidity [ ]

8. Have you invested in any of the following? Mutual Funds [ ] Real Estate [ ] Fixed Deposits [ ] Others [ ] Shares [ ]

9.

Are you aware of Wealthsurance plans of IDBI Fortis?

Fully aware [ ]

Partially Aware [ ]

Not aware [ ]

Cant Say [ ]

10.

How did you come to know about these plans?

News Papers [ ]

Media [ ]

Advisors [ ]

Friends [ ]

11.

How much risk are you willing to take while investing insurance High Risk [ ] Low Risk [ ] Moderate Risk [ ] Risk Averse [ ]

12.

Have you ever invested in the Wealthsurance plans of IDBI Fortis?

Yes [ ]

No [ ]

13.

If yes how much money have you invested?

Below 25,000 [ ]

25,000 - 50,000 [ ]

50,000-75,000 [ ]

75,000 - 1, 00,000 [ ]

Above 1, 00,000 [ ]

14.

Are you satisfied with the service provided by IDBI Fortis?

Yes [ ]

No [ ]

Cant Say [ ]

15.

Rate the following provided by IDBI Fortis Excellent Very good Good Average Poor

Customer service Quterly reports Renewal premium Customer care service Others

16.

Apart from IDBI Fortis Wealthsurance Plans in which company have you Invested? LIC [ ] HDFC Standard Life [ ] Birla Sun Life [ ]

SBI Life [ ]

Others [ ]

17.

Rank the following according to your priority?

Product LIC IDBI Fortis HDFC Standard Birla Sun Life SBI Life Others

Security

Liquidity

Flexibility

Service

Returns

18.

Any suggestion to make these plans more effective? 1. 2. 3.

Signature: PLACE: DATE:

BIBILOGRAPHY

www.idbifortis.com www.goggle.com www.wealthsurance.com www.lic.com www.sbi.com

BOOK:Marketing Management ( Philip kotler)

MarketingResearch(GCBeri)