Professional Documents
Culture Documents
LIFEINSURANCEPOLICIES
PROJECTREPORTSUBMITTEDINPARTIALFULFILMENTOFTHE
REQUIREMENTSFORTHEAWARDOFMASTERSDEGREEIN
BUSINESSADMINISTRATIONOFUNIVERSITYOFBANGALORE
SUBMITTED BY
JacobManuel
MBA
Reg.No.05MJCM6013
UndertheGuidanceof
Mrs.Vchandrakala
LISTOFTABLES
TableNo.
NameoftheTable
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
AgeoftheRespondents
Differentiationofthe
respondentsintomaleand
female
Different
iationoftherespondents
basedontheiroccupation
Tableshowingincome
groupofrespondents
Differentiationofthe
respondentsaccordingto
theirassetsowned
Marketshareofdifferent
lifeinsurancecompanies
Tableshowingattributes
fromrespondents
Factorswhichinfluenced
tobuythelifeinsurance
policy
Valueofrespondentslife
insurancepolicy
Respondentspreferenceto
investtheirmoney
Satisfactionofthe
respondentswiththe
currentlifeinsurance
company
Ratingoftheservice
offeredbyrespondents
lifeinsurancecompany
Consumerswillingnessto
communicateservice
offeredbytheirlife
insurancecompany
Numberoflifeinsurance
companyKnownby
respondents
Scoreofdifferentlife
insurancecompanies
PageNo.
39
41
43
45
47
49
51
53
55
57
59
61
63
65
67
LISTOFGRAPHS
GraphNo.
NameoftheGraph
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
AgeoftheRespondents
Differentiationofthe
respondentsintomaleand
female
Differentiationofthe
respondentsbasedontheir
occupation
Graphshowingincome
groupofrespondents
Differentiationofthe
respondentsaccordingto
theirassetsowned
Marketshareofdifferent
lifeinsurancecompanies
Graphshowingattributes
fromrespondents
Factorswhichinfluenced
tobuythelifeinsurance
policy
Valueofrespondentslife
insurancepolicy
Respondentspreferenceto
investtheirmoney
Satisfactionofthe
respondentswiththe
currentlifeinsurance
company
Ratingoftheservice
offeredbyrespondents
lifeinsurancecompany
Consumerswillingnessto
communicateservice
offeredbytheirlife
insurancecompany
Numberoflifeinsurance
companyKnownby
respondents
Scoreofdifferentlife
insurancecompanies
PageNo.
40
42
44
46
48
50
52
54
56
58
60
62
64
66
68
1.1
INTRODUCTIONTOTHESTUDY
Everyoneisexposedtovariousrisks.Futureisveryuncertain,butthereiswayto
protectonesfamilyandmakeoneschildrensfuturesafe.LifeInsurancecompanies
helpustoensurethatourfamilysfutureisnotjustsecurebutalsoprosperous.
This studytitledStudyofConsumersPerceptionaboutLifeInsurancePolicies
enables the Life Insurance Companies to understand how consumers perception
differsfrompersontoperson.Howaconsumerselects,organizesandinterpretsthe
servicequalityandtheproductqualityofdifferentLifeInsurancePolicies,offeredby
variousLifeInsuranceCompanies.
1.2
BACKGROUNDOFTHESTUDY
LifeInsuranceisacontractforpaymentofasumofmoneytothepersonassuredon
thehappeningoftheeventinsuredagainst.Usuallytheinsurancecontractprovides
forthepaymentofanamountonthedateofmaturityoratspecifieddatesatperiodic
intervalsoratunfortunatedeathifitoccursearlier.Obviously,thereisapricetobe
paidforthisbenefit.Amongotherthingsthecontractsalsoprovidesforthepayment
ofpremiums,bytheassured.
LifeInsuranceisuniversallyacknowledgedas atooltoeliminaterisk,substitute
certaintyforuncertaintyandensuretimelyaidforthefamilyintheunfortunateevent
ofthedeathofthebreadwinner.Inotherwords,itisthecivilizedworldspartial
solutiontotheproblemscausedbydeath.Lifeinsurancehelpsintwowaysdealing
withprematuredeath,whichleavesdependentfamiliestofendforthemselvesand
oldagewithoutvisiblemeansofsupport.
KEYPLAYERSINTHEINSURANCEINDUSTRY
1.
LIC
2.
ICICIPRUDENTIAL
3.
TATAAIG
4.
BIRLASUNLIFEINSURANCE
5.
MAXNEWYORK
6.
SAHARALIFE
7.
SBILIFEINSURANCE
8.
AXA(AIRTEL,I.E.BHARTIGROUPS)
9.
OMKOTAK
10.
ALLIANZBAJAJ
11.
AVIVA
12.
INGVYSYA
13.
RELIANCELIFEINSURANCE
14.
METLIFEINSURANCE
15.
SRIRAMSANLAM
16
HDFCSTANDARDLIFEINSURANCE
DifferentLifeInsurancePlans
1) Protectionplussavingsplan
2) ProtectionplusLiquidityplan
3) ProtectionplusAssetBuildingplan
4) InvestmentPlan
5) Pensionplanetc,
Thisstudywillhelpthecompaniestounderstandtheconsumersperceptionabout
differentlifeinsurancepolicies.
BenefitsofLifeInsurancePolicies.
1) Superiortoanyothersavingsplan:
Unlike any other savings plan, a life insurance policy affords full protection
against risk of death. In the event of death of a policy holder, the insurance
companymakesavailablethefullsumassuredtopolicyholdersnearanddear
ones. In comparison, any other savings plan would amount to only the total
savingsplanaccumulatedtilldate.Ifthedeathoccursprematurely,suchsavings
canbemuchlessthanthesumassuredwhichmeansthatthepotentialfinancial
losstothefamilyissizable.
2) EncouragesandForcesThrifts:
A saving deposit can easily be withdrawn. The payment of life insurance
premium, however, is considered sacrosanct and is viewed with the same
seriousnessasthepaymentofinterestonamortgage.Thus,alifeinsurancepolicy
ineffectbringsaboutcompulsorysavings.
3) Easysettlementandprotectionagainstcreditors:
Alifeinsurancepolicyistheonlyfinancialinstrumenttheproceedsofwhichcan
beprotectedagainsttheclaimsofacreditoroftheassuredbyeffectingavalid
assignmentofthepolicy.
4) AdministeringtheLegacyforBeneficiaries:
Speculativeorunwiseexpensescanquicklycausetheproceedstobesquandered.
Severalpolicieshaveforeseenthispossibilityandprovideforpaymentovera
periodofyearsorinacombinationofinstallmentsandlumpsumamounts.
5) ReadyMarketabilityandsuitabilityforquickborrowing:
Alifeinsurancepolicycan,afteracertaintimeperiod(generallythreeyears)be
surrenderedforacashvalue.Thepolicyisalsoacceptableasasecurityfora
commercialloan,forexample,astudentloan.
6) DisabilityBenefits:
Deathisnottheonlyhazardthatisinsured;manypoliciesalsoincludedisability
benefits.Typically,theseprovideforwaiveroffuturepremiumsandpaymentof
monthlyinstallmentsspreadoveracertaintimeperiod.
7) AccidentaldeathBenefits:
Manypoliciescanalsoprovideforanextrasumtobepaid(typicallyequaltothe
sumassured)ifdeathoccursasaresultofaccident
2.1STATEMENTOFTHEPROBLEM
This Study will help us to understand the consumers perception about life
insurance policies. This study will help the companies to understand, How a
consumer selects, organizes and interprets the Quality of service and product
offeredbylifeinsurancecompanies.
2.2SCOPEOFTHESTUDY
ThisstudyislimitedtotheconsumerswithinthelimitofBangalorecity.
The study will be able to reveal the preferences, needs, perception of the
customers regarding the life insurance products, It also help the insurance
companies to know whether the existing products are really satisfying the
customersneeds.
2.3 NEEDFORTHESTUDY
1)
2)
Consumermarketsandconsumerbuyingbehaviorcanbeunderstoodbefore
soundproductandmarketingplansaredeveloped
3)
This study will help companies to customize the service and product,
accordingtotheconsumersneed.
4)
Thisstudywillalsohelpthecompaniestounderstandtheexperienceand
expectationsoftheexistingcustomers.
5)
2.4 OBJECTIVEOFTHESTUDY
1. Ascertaintheprofileandcharacteristicsofpotentialbuyers.
2. Togainathoroughunderstandingoftheattributesthatprospectivebuyers
ascribetolifeinsurancepolicies.
3. Tohaveaninsightintotheattitudesandbehaviorsofcustomers.
4. Tofindoutthedifferencesamongperceivedserviceandexpectedservice.
5. Toproduceanexecutiveservicereporttoupgradeservicecharacteristics
oflifeinsurancecompanies.
6. Tounderstandconsumerspreferences.
7. Toaccessthedegreeofsatisfactionoftheconsumerswiththeircurrent
brandofInsuranceproducts.
2.5REVIEWOFLITERATURE:
Tocarrytheresearchworktheresearcherhasgonethroughafewreports,
books,journalsandwebsites.ThedetailsregardingLifeInsuranceIndustry,
history,originandgrowthoftheindustryis alsotakenfromsomebooks,
magazinesetc.Thesourcesofthisinformationisasfollows:
CataloguesandBroachersfromvariouslifeinsurancecompanies.
Articlesfrommagazinesandnewspaper.
Informationfromvariouswebsites.
2.6 RESEARCHDESIGN:
Aresearchdesignisabasicplanwhichguidestheresearcherinthecollection
and analysis of data required for practicing the research. Infant the research
designistheconceptualstructurewhichtheresearchisconducted.Itconstitutes
theBluePrintforthecollection,measurementandanalysisofthedata.The
studyiscarriedouttounderstandtheConsumerPerceptionaboutlifeinsurance
policiesinKottayamCity.Forthisstudytheresearcherusedexploratoryresearch
design.Thisresearchcovers50consumersinKottayamcity,belongingtovarious
agegroups.
2.7SAMPLEDESIGN:
The process ofdrawingasamplefroma largepopulation is calledsampling.
Populationreferstothetotalofitemsaboutwhichinformationisdefined.Well
selected samples may reflect fairly and accurately the characteristics of the
population.
2.7.1) SamplingUnit:
Thesampleunitofthissurveywasthecustomershavinglifeinsurancepoliciesin
KottayamCity,Kerala.
2.7.2) SampleSize:
Thesamplesizewas50customersofdifferentlifeinsurancecompanies,from
variouspartsoftheKottayamCity
2.7.3) SamplingTechniqueAdopted:Convenientsampling
2.7.4) :Sourceofdata
After identifying and defining the research problem and determining specific
informationrequiredtosolvetheproblemtheresearcherwilllookforthetypeand
sourcesofdatawhichmayyieldthedesiredresults,whiledecidingaboutthe
methodofdatacollectiontobeusedforthestudy,therearetwotypesofdata.
Theyareasfollows
2.8.1)PrimaryData:
Primarydataarethosewhicharecollectedforthefirsttime.Primarydatais
collectedbyframingquestionnaires.Thequestionnairecontainedquestions
whicharebothopenendedandclosedended.Openendedquestionsare
questionsrequiringanswersintherespondersownwords.Closedended
questionsarethosewhereintherespondenthastomerelycheckthe
Appropriateanswerfromalistofoptionsavailable.Anydoubtsraisedbythe
Respondentswereclarifiedtogettheperfectanswersfromthedistributors.
Openendedquestionsyieldedmoreinsightfulinformation,whereasclosed
Endedquestionswererelativelysimpletotabulateandanalyze.
2.8.2)SecondaryData:
Secondarydatameansdatathatarealreadyavailablei.e.theyrefertothedata
whichhavebeencollectedandanalyzedbysomeoneandcansavebothmoney
andtimeoftheresearcher.Secondarydatamaybeavailableintheformof
companyrecords,tradepublications,librariesetc.Secondarydatasourcesare
asfollows:
CompanyReports
DailyNewspaper
StandardTextbook
VariousWebsites
2.9 FIELDWORK
An interviewschedule and wellstructured questionnaire is administered to the
targetrespondentstocollectprimarydata(Copyofquestionnaireisattachedinthe
appendix).Openandcloseendedquestionsareusedinthequestionnaire.Theorder
ofthequestionsisinsuchamannerthattheybeginwithsimplequestionsandlead
onthequestionsthatneededmoreinvolvementfromrespondents.Thesecondary
dataarecollectedfromperiodicals,magazines,journalsandinternet.
2.10 OPERATIONALDEFINITIONSOFTHESTUDY
1. Marketing:
Marketing is a social and managerial process by which individuals and
group obtain what they need and want through creating, offering and
exchangingproductsofvaluewithothers.
2. MarketingManagement:
MarketingManagementistheprocessofplanningandexecutingthe
conception,
pricing,promotionanddistributionofindividualand
organizationalgoals.
3. MarketingResearch:
Marketingresearchisthesystematicandobjectivesearchfor,andanalysis
ofinformationrelevanttotheidentificationandsolutionofanyproblemsin
thefieldofmarketing.
4. ConsumerBehavior:
Consumerbehavioristhestudyofhowindividualsmakedecisionstospend
their available resources [time, money, efforts] on consumption related
items.
5. ConsumerResearch:
Consumerresearchisthemethodologyusedtostudyconsumerbehaviour.
6. MarketSegmentation:
Market segmentation is the process of dividing a market in the distinct
subsetsofconsumerwithcommonneedsorcharacteristicsandselecting
oneormoresegmentstotargetwithdistinctmarketingmix.
7. Positioning:
Positioningistheactofdesigningthecompanysofferingandimagesothat
theyoccupyameaningfulanddistinctcompetitivepositioninthetarget
consumersmind.
8. Perception:
Perceptionistheprocess bywhichanindividualselects,organizes,and
interpretsinformationinputtocreatemeaningfulpictureoftheworld.Fora
marketertoinfluenceamotivatedbuyertobuytheirproductsratherthana
competitorstheymustbecarefultotaketheperceptionprocessintoaccount
whiledesigningtheirmarketingcampaigns.Perceptionthereforeinfluence
whatproductconsumerbuys.
9.
Brand:
Abrandisaname,term,sign,symbol,ordesignoracombinationofthem,
usedtoidentifythegoodsorservicesofonesellerorgroupofsellerandthe
differentiatethemfromthoseofcompetitors.
10.Attitude:
An attitude is a person enduring favourable or unfavorable evaluation,
emotionalfeeling,andactiontendenciestowardssomeobjectoridea
11.Values:
Avalueisaconceptofthedesirable.Aninternalizedstandardofevaluation
a person possession. These standards determine or guide an individual
evaluationofthemanyobjectsencounteredineverydaylife.
12.Attributes:
Attributesarethestrengthsandweaknessesofabrandthatcreateattitudes
andareusedbyconsumerstochoosebetweenbrandsthatarerelatively
similarorfunctionallyequivalent.
2.11
LIMITATIONSOFTHESTUDY
Althoughthestudywascarriedoutwithextremeenthusiasmandcareful
planningthereareseverallimitationswhichhandicappedtheresearchviz.,
1.
TimeConstraints:
Thetimestipulatedfortheprojecttobecompletedislessandthus
there are chances that some information might have been left out,
however due care is taken to include all the relevant information
needed.
2.
Samplesize:
Due to time constraints the sample size was relatively small and
would definitely have been more representative if I had collected
informationfrommorerespondents.
3.
Accuracy:
Itisdifficulttoknowifalltherespondentsgaveaccurateinformation;
somerespondentstendtogivemisleadinginformation
2.12OVERVIEWOFTHEREPORT
Chapter1:Introduction
Thischaptertalksabouttheimportanceoflifeinsurancepoliciesandconsumer
perceptionoflifeinsurancepolicies.
Chapter2:Designofthestudy
DesignofthestudyincludesStatementofproblem,Scopeofthestudy,Objectives
ofthestudy,Reviewofliterature,Researchdesign,Sampledesign,Sources of
data,Fieldwork,Operationaldefinitionofthestudy,Limitationsofthestudy.
Chapter3:ProfileofRespondents:
ThischapterviewstheoriginandgrowthoftheIndustry,PresentstatusofIndustry,
profileofthecompanies,andprofileofsampleunit.
Chapter4:Analysisandinterpretation
In this chapter the data collected is compiled, processed and analyzed. Brief
descriptionsofthefindingsaregiveninthischapter.
Chapter5:SummaryofFindingsandsuggestions
Thischaptercontainsthesummaryoffindingsandsuggestionsaboutimproving
theservicequalityandproductquality.
3.1PROFILEOFTHEINDUSTRY:
HistoryandDevelopmentofLifeInsurance
1. LifeInsurance,initspresentform,cametoIndiafromtheUnitedKingdom
with establishment of a British firm, Oriental Life Insurance Company in
Calcuttain1818,followedbyBombayLifeAssuranceCompanyin1823,the
Madras Equitable Life Insurance society in 1829 and Oriental Government
securityAssurancecompanyin1874.Priorto1871,IndianLivesweretreated
as substandard and charged an extra premium of 15% to 20% . Bombay
MutualLifeAssuranceSociety,aIndianinsurerwhichcameintoexistencein
1871wasthefirsttocoverIndianlivesatnormalrates.
2. TheIndianlifeAssuranceCompaniesAct,1912wasthefirststatutorymeasure
to regulate life insurance business. Later, in 1928, the Indian Insurance
Companies Act was enacted, to enable the government to collect statistical
informationaboutbothlifeandnonlifeinsurancebusinesstransactedinIndia
by Indian and foreign insurers, including the provident insurance societies.
Comprehensive arrangement was, however, brought into effect with the
enactment of the Insurance Act, 1938. Efforts in this direction continued
progressivelyandtheactwasamendedin1950,makingfarreachingchanges,
suchasrequirementofequitycapitalforcompaniescarryingonlifeinsurance
business,ceilingonshareholdingsinsuchcompanies,submissionofperiodical
returnrelatingtoinvestmentsandsuchotherinformationtothecontrollerof
insuranceashemanycallfor,appointmentofadministratorformismanaged
companies,ceilingonexpensesofmanagementandagencycommission,
incorporationoftheInsuranceassociationofIndiaandformationofcouncils
andcommitteesthereof.
3. By1956,154Indianinsurers,16nonIndianinsurersand15providentsocieties
werecarryingonlineinsurancebusinessinIndia.On19th January1956,the
managementoftheentirelifeinsurancebusinessof229Indianinsurersand
providentinsurancesocietiesandtheIndianlifeinsurancebusinessof16non
IndianLifeinsurancecompaniesthenoperatinginIndia,wastakenoverbythe
centralGovernmentandthennationalizedon1stSeptember1956whentheLife
InsuranceCorporationcameintoexistence.
ReformsandImplications
The liberalization of the Indian insurance sector has been the subject of much
heated debate for some years. The sector is finally set to open up to private
competition.TheInsuranceRegulatoryandDevelopmentAuthoritybillwillclear
thewasforprivateentryintoinsuranceasthegovernmentiskeentoinviteprivate
sector participation into insurance. To address those concerns, the bill requires
direct insurers to have a minimum paidup capital of Rest. 1 billion, to invest
policyholdersfundsonlyinIndia;andtorestrictinternationalcompaniestoa
minorityequityholdingsof26percentinanynewcompany.IndianPromoterswill
alsohavetodilutetheirequityholdingto26percentovera10yearperiod.
Overthepastthreeyear,around30companieshaveexpressedinterestinentering
the sector and many foreign and Indian companies have arranged alliances.
Whethertheinsurerisoldornew,privateorpublic,expandingthemarketwill
MARKETSHARESOFDIFFERENTFIRMS
Company
Promoter
Totalcapital
(Rscrore)
Marketshare
Basedon
Premium
AMPSanmar
Reliancegroup
217
0.54
Avivalife
Dabur
459
1.12
BajajAllianz
Bajajauto
368
6.12
HDFCStandard
HDFC
250
2.96
BirlaSunLife
AdityaBirla
400
1.84
1085
7.11
440
0.63
260
0.71
500
1.32
355
0.4
100
0.06
Group
ICICI
ICICIBank
Prudential
INGVysya
KotakMahindra,
OldMutual
VysyaBank
KotakMahindra
Bank
MaxNewYork
MaxIndia
MetLife
Jammu&Kashmir
Bank
SaharaLife
SaharaIndia
Insurance
SBILife
SBI
350
1.52
TataAIG
Tatagroup
381
1.78
ThelikelyimpactofopeningupofIndiasinsurancesectoristhatprivateplayers
mayswampthemarket.Internationalinsurersoftenderiveasignificantpartof
their business from multinational operations. Multinational insurers are indeed
keenly interested as; perhaps their home markets are saturated while emerging
countrieshavelowinsurancepenetrationandhighgrowthrates.Asmallshareofa
largeandgrowingmarketcanbeprofitableandattractive.
Typeoflifeinsurancepolicies
Wholelifeinsurance
Wholelifeisaformofpermanentinsurance,withguaranteedratesandguaranteed
cashvalues.Itistheleastflexibleformofpermanentinsurance.
Universallifeinsurance
Universallifeissimilartowholelife,exceptthatyoucanchangethedeathbenefit
(the money paid to the beneficiary when the insured person dies), the amount of
premiumsandhowoftenyoupaythepremiums.
Variablelifeinsurance
Variablelifeinsuranceistheriskiestformofpermanentinsurance,butitcanalsogive
youthebestreturnforyourmoney.Essentially,thelifeinsurancecompanywillinvest
yourinsurancepremiumsforyou.Iftheinvestmentsdowell,thedeathbenefitand
cashvalueofthepolicygoup.Iftheydopoorly,theygodown.It'salittlelikeputting
yoursavingsintothestockmarket.
Grouplifeinsurance
Manycompaniesallowtheiremployeestobuygrouplifeinsurancethroughthecompany.
Usually,youcangetverygoodratesforthisinsurancebutyouhavetogivetheinsuranceup
whenyoustopworkingthere.Forthatreason,groupinsurancecanbeagoodwaytobuya
littleextralifeinsurance,butitdoesnotmakesensetomakeityourmainpolicy.
Thereareanumberofpoliciesforspecificinsuranceneeds.Someoftheseinclude:
1. Familyincomelifeinsurance.
Thisisadecreasingtermpolicythatprovidesastatedincomeforafixedperiodof
time,iftheinsuredpersondiesduringthetermofcoverage.Thesepayments
continueuntiltheendofatimeperiodspecifiedwhenthepolicyispurchased.
2. Familyinsurance.
Awholelifepolicythatinsuresallthemembersofanimmediatefamily
husband,wifeandchildren.Usuallythecoverageissoldinunitsperperson,
withtheprimarywageearnerinsuredforthegreatestamount.
3. Seniorlifeinsurance.
Alsoknownasgradeddeathbenefitplans,theyprovideforagradedamounttobe
paidtothebeneficiary.Forexample,ineachofthefirstthreetofiveyearsafter
theinsureddies,thedeathbenefitslowlyincreases.Afterthatperiod,theentire
deathbenefitispaidtothebeneficiary.Thismightbeappropriateifthe
beneficiaryisnotabletohandlealargeamountofmoneysoonafterthedeath,
butwouldbeinabetterpositiontohandleitafewyearslater.
4.Juvenileinsurance.
Thisislifeinsuranceonachild.Coverageispaidforbyanadult,usuallythe
parentsorguardians.Suchpoliciesarenotconsideredtraditionallifeinsurance
becausethechildisnotproducinganincomethatneedstobeprotected.However,
bybuyingthepolicywhenthechildisyoung,theparentsareabletolockinan
extremelylowpremiumrateandallowmanymoreyearsoftaxdeferredcashvalue
buildup.
4. Creditlifeinsurance.
Thisinsuranceisdesignedtopayoffthebalanceofaloanifyoudiebeforeyou
haverepaidit.Creditlifeinsuranceisavailableformanykindsofloansincluding
studentloans,autoloans,farmequipmentloans,furnitureandotherpersonal
loansincludingcreditcards.Creditlifeinsurancecanbepurchasedbyan
individual.Usuallyitissoldbyfinancialinstitutionsmakingloans,likebanks,to
borrowersatthetimetheytakeouttheloan.Ifaborrowerdies,theproceedsof
thepolicyrepaystheloandirectlytothelenderorcreditor.
5. Mortgageinsurance
Thisdecreasingtermcoverageisdesignedtopayofftheunpaidbalanceofa
mortgageifyoudiebeforethemortgageispaidoff.Premiumsaregenerallylevel
throughoutthetermofthepolicy.Thepolicyisusuallyindependentofthe
mortgage,meaningthatthefinancialinstitutiongrantingthemortgageisseparate
fromtheinsurancecompanyissuingthepolicy.Theproceedsofthepolicyare
paidtothebeneficiariesofthepolicy,notthemortgagecompany.The
beneficiaryisnotrequiredtousetheproceedstopayoffthemortgage
6.Annuity
An annuity is a form of insurance that enables you to save for your
retirement.Basically,yougivetheinsurancecompanymoneyforacertain
periodoftime,andthenafteryouretiretheywillpayyouacertainamountof
moneyeveryyearuntilyoudie.Therearemanydifferentformsofannuities.
.Mostpeoplewhobuyannuitiesare55orolder
3.2PROFILEOFTHEORGANISATIONS:
LIFEINSURANCECORPORATIONOFINDIA
LifeInsurancecorporationofIndiawasformedinSeptember1956bypassingLIC
Act,1956inIndianparliament.Onthenationalizationofthelifeinsurancein1956,
thepremiumratingofOrientalGovernmentsecuritylifeAssurancecompanywere
adopted by LIC with a reduction of 5% of the tabular premium or Re. 1 per
thousand sum assured, whichever was less. This reduction was made in
anticipationofeconomiesofscalethatwouldemergeonthemergerofdifferent
insurersinasingleentity.
LifeInsuranceCorporationOfIndiatherearemanythingstoconsiderasLife
InsuranceCorporationOfIndiaoffersvariousinsuranceproductswhicharevery
complex,butunderlyingthiscomplexityisasimplefact.Thebuildingblocksforall
Life Insurance Corporation Of India are (1) investment return; (2) mortality
experience;and(3)expensemanagement;foryourLifeInsuranceCorporationOf
India.
LICisthebiggestinsuranceplayerinthecountry.OutofthetotalpremiumofRs
3766croregeneratedbytheinsuranceindustrythroughgroupbusinessintheyear
200506,LICaloneaccountedforRs3051crore.
Inthefinancialyear200506,LIChasgrownat30.68%.Inrespectofnumberof
livesinsured,LIChasshownagrowthofover152%.Inrespectofnumberof
schemes,LIChasagrowthof2%.LIC'smarketshareinnumberofindividuals
coveredandnumberofpoliciesstandsat77%and81%,respectively.
ObjectivesOfLIC
1 SpreadLifeInsurancemuchmorewidelyandinparticulartotheruralareasand
tothesociallyandeconomicallybackwardclasseswithaviewtoreachingall
insurable persons in the country and providing them adequate financial cover
againstdeathatareasonablecost.
2 Maximizemobilizationofpeople'ssavingsbymakinginsurancelinkedsavings
adequatelyattractive.
3 Bear in mind, in the investment of funds, the primary obligation to its
policyholders,whosemoneyitholdsintrust,withoutlosingsightoftheinterest
ofthecommunityasawhole;thefundstobedeployedtothebestadvantageof
the investors as well as the community as awhole, keeping in view national
prioritiesandobligationsofattractivereturn.
4 Conduct business with utmost economy and with the full realization that the
moneysbelongtothepolicyholders.
5 Actastrusteesoftheinsuredpublicintheirindividualandcollectivecapacities.
1 Meetthevariouslifeinsuranceneedsofthecommunitythatwouldariseinthe
changingsocialandeconomicenvironment.
2 InvolveallpeopleworkingintheCorporationtothebestoftheircapabilityin
furtheringtheinterestsoftheinsuredpublicbyprovidingefficientservicewith
courtesy.
PromoteamongstallagentsandemployeesoftheCorporationasenseofparticipation,
pride and job satisfaction through discharge of their duties with dedication towards
achievementofCorporateObjective
VariouspoliciesofferedbylifeinsurancecorporationofIndiaare
1)
WholeLifeSchemes
1 Wholelifewithprofit
1 Limitedpaymentwholelife
2 SinglePremiumwholelife
3 Convertiblewholelifeplan
2)
EndowmentSchemes
1 Endowmentplanwithprofit
2 LimitedpaymentEndowment
3 JeevanMitra(DoubleCover)
4 JeevanMitra(Triplecover)
5 BhavishyaJeevan
6 JeevanAnand
7 NewJanaRaksha
3)TermAssurancePlan
1 AnmolJeevan
2 2YearTermAssurance
3 CovertibleTerm
4 NewBimaKiran
4) PlanforneedsofChildren
1
KomalJeevan
JeevanSukanya
JeevanKishore
JeevanBalya
JeevanChaya
Marriage/educationalannuity
DefferedEndowment
5. PeriodicMoneyBackPlan
1
JeevanSamridhi
JeevanRekhaPlan
MoneyBackPlan
JeevanSurabhi
Jeevanbharathi
6. Medicalbenefitslinkedinsurance
1
AshaDeepII
JeevanAshaII
7. ForbenefitstoHandicapped
1 JeevanAadhar
2 JeevanVishwas
8. Planstocoverhousingloans
1 Mortagageredemption
9. Jointlifeplan
1 Jeevansathi
10. Investmentplan
1 BimaNiveshTriplecover
11. Capitalmarketlinkedplan
1 Bimaplus.
INGVYSYALIFEINSURANCE
INGVysyaLifeInsuranceCompanyPrivateLimiteSdenteredtheprivatelifeinsurance
industryinIndiainSeptember2001,andinaspanof5yearshasestablisheditselfasa
distinctive life insurance brand with an innovative, attractive and customer friendly
productportfolioandaprofessionaladvisorsalesforce.
Ithasadedicatedandcommittedadvisorsalesforceofover21,000people,working
from 140 branches located in 74 major cities across the country and over 3,000
employees.ItalsodistributesproductsinclosecooperationwiththeINGVysyaBank
network.TheCompanyhasacustomerbaseofover4,50,000&isheadquarteredat
Bangalore.In2005,INGVysyaLifeearnedatotalincomeinexcessofRs.400croreand
alsohasasharecapitalofRs.440crore.
INGVysyaLifeInsuranceCompanyisheadquarteredatBangaloreandhasestablisheda
strongpresenceinthecitiesofDelhi,Mumbai,Kolkata,HyderabadandChennai.In
addition ING Vysya Life operates in Vizag, Vijaywada, Mangalore, Mysore, Pune,
Nagpur,Chandigarh,LudhianaandJaipur.
INGVysyaLifehaspioneeredproductinnovationsintheIndianlifeinsurancemarket
withcustomerorientedcashbonusendowmentandmoneybackproducts.(Reassuring
LifeandMaximisingLife),thefirstanticipatedwholelifeproduct(FulfillingLife)and
thefirstTerm/CriticalIllnesscombinationproduct(ConqueringLife).ConqueringLifeis
an innovative term and critical illness product that has been launched recently.
Conquering Life provides affordable term cover and critical illness coverage for 10
criticalillnessesofupto50%oftheSumAssured.
INGVysyaLifeInsuranceisajointventurebetweenINGInsuranceInternationalBVa
partofINGGroup,theworld'slargestlifeinsurancecompany.INGVysyaBank,with
1.5 million customers and over 400 outlets and GMR Technologies and Industries
Limited,partofGMRGroupalsobasedinBangaloreandinvolvedinthefieldofpower
generation,
INGVysyaLifehasapaidupcapitalofRs.140croresandanauthorisedcapitalofRs.
200crores.
Lifeinsuranceproductsofferedbythecompanyare:
1)Protectionplan
1 Criticalillnessplan
2 Endowmentplan
2) Savingsplan
1 Endowmentplan
2 Childprotectionplan
3 Moneybackplan
3) InvestmentPlan
Wholelifeplan
Limitedpaymentendowmentplan
Anticipatedwholelifeplan
4) RetirementPlan
Bestyears
NewFuturePerfect
TataAIGLifeInsurance
TataAIGLifeInsurancecompanyisajointventurebetweentheTataGroupand
AmericanInternationalGroupInc(AIG),theleadingUSbasedinternational
insuranceandfinancialservicesorganisationandthelargestunderwriterof
commercialandindustrialinsuranceinAmerica.
Itsmembercompanieswriteawiderangeofcommercial,personalandlifeinsurance
productsthroughavarietyofdistributionchannelsinapproximately130countriesand
jurisdictionsthroughouttheworld.AIGsglobalbusinessesalsoincludefinancial
servicesandassetmanagement,includingaircraftleasing,financialproducts,trading
andmarketmaking,consumerfinance,institutional,retailanddirectinvestmentfund
assetmanagement,realestateinvestmentmanagement,andretirementsavingsproducts.
Areasofbusiness
TataAIGLifeInsuranceproductsincludeabroadarrayoflifeinsurancecoverageto
bothindividualsandgroups.Forgroups,thecompanyhaslifeproductswhereasfor
individuals,ithastermproducts,endowmentproductsaswellasmoneybackproducts.
Forgroupsandindividuals,varioustypesofaddonsandoptionsareavailabletogiven
consumersflexibilityandchoice.
HDFCSTANDARDLIFE
ThePartnership:
HDFCandStandardLifefirstcametogetherforapossiblejointventure,toentertheLife
Insurancemarket,inJanuary1995.Itwasclearfromtheoutsetthatbothcompanies
sharedsimilarvaluesandbeliefsandastrongrelationshipquicklyformed.InOctober
1995thecompaniessigneda3yearjointventureagreement.
AroundthistimeStandardLifepurchaseda5%stakeinHDFC,furtherstrengtheningthe
relationship.
Thenextthreeyearswerefilledwithuncertainty,duetochangesingovernmentand
ongoingdelaysingettingtheIRDA(InsuranceRegulatoryandDevelopmentauthority)
Actpassedinparliament.Despitethisbothcompaniesremainedfirmlycommittedtothe
venture.
InOctober1998,thejointventureagreementwasrenewedandadditionalresourcemade
available.AroundthistimeStandardLifepurchased2%ofInfrastructureDevelopment
Finance Company Ltd. (IDFC). Standard Life also started to use the services of the
HDFCTreasurydepartmenttoadvisethemupontheirinvestmentsinIndia.
Towardstheendof1999,theopeningofthemarketlookedverypromisingandboth
companiesagreedthetimewasrighttomovetheoperationtothenextlevel.Therefore,
inJanuary2000anexpertteamfromtheUKjoinedahandpickedteamfromHDFCto
formthecoreprojectteam,basedinMumbai.
AroundthistimeStandardLifepurchasedafurther5%stakeinHDFCanda5%stakein
HDFCBank.
InafurtherdevelopmentStandardLifeagreedtoparticipateintheAssetManagement
CompanypromotedbyHDFCtoenterthemutualfundmarket.TheMutualFundwas
launchedon20thJuly2000
IncorporationofHDFCStandardLifeInsuranceCompanyLimited:
Thecompanywasincorporatedon14thAugust2000underthenameofHDFCStandard
LifeInsuranceCompanyLimited.
CompaniesambitionfromasfarbackasOctober1995,wastobethefirstprivate
companytoreenterthelifeinsurancemarketinIndia.Onthe23rdofOctober2000,this
ambitionwasrealisedwhenHDFCStandardLifewastheonlylifecompanytobe
grantedacertificateofregistration.
HDFCarethemainshareholdersinHDFCStandardLife,with81.4%,whileStandard
Lifeowns18.6%.GivenStandardLife'sexistinginvestmentintheHDFCGroup,thisis
themaximuminvestmentallowedundercurrentregulations.
HDFCandStandardLifehavealongandcloserelationshipbuiltuponsharedvaluesand
trust. The ambition of HDFC Standard Life is to mirror the success of the parent
companies andbetheyardstickbywhichallotherinsurancecompany'sinIndiaare
measured.
HDFCStandardLife'scumulativepremiumincome,includingthefirstyearpremiums
andrenewalpremiumsisRs.672.3Croresforthefinancialyear,AprNov2005.So
far the company has covered over 11,00,000 individuals and has declared 5th
consecutivebonusinasmanyyearsforits'withprofit'policyholders.
Productsofferedbythecompanyare:
INDIVIDUALPLAN
1 WithProfitEndowmentAssurance
2 WithProfitsMoneyBack
3 SinglePremiumWholeofLife
4 TermassurancePlan
5 LoanCoverTermAssurance
6 PersonalPensionPlan
7 ChildrensPlan
GROUPPLANS
1) GroupTermInsurance
2) DevelopmentInsurancePlan
ICICIPRUDENTIALLIFEINSURANCECOMPANY
ICICIPrudentialLifeInsuranceCompanyisajointventurebetweenICICI,a
premier financial powerhouse and Prudential plc, a leading international financial
servicesgroupheadquarteredintheUnitedKingdom.ICICIPrudentialwasamongstthe
first private sector insurance companies to begin operations in December 2000 after
receivingapprovalfromInsuranceRegulatoryDevelopmentAuthority(IRDA).
ICICIPrudentialiscurentlytheNo.1privatelifeinsurerinthecountry.Forthefinancial
year ended March 31, 2005, the company garnered Rs 1584 crore of new business
premiumforatotalsumassuredofRs13,780croreandwrotenearly615,000policies
ProductsofferedbyICICIPrudentialare
2) SavingsPlan
1 Smartkid
2 LifeTime
3 SavenProtect
4 CashBak
3) Protectionplan
1 LifeGuard
2 ExtraProtectionThrough
3 Riders
4) RetirementPlans
1 ForeverLife
1 Lifelinkpension
2 Lifetimepension
3 Reassure
5) InvestmentPlans
1 AssureInvest
2 LifeLink
6) Groupplans
1 GroupSuperannuation
2 GroupGratuity
3 GroupTermAssurance
OMKOTAKMAHINDRALifeInsuranceCompany
OM Kotak Mahindra Life Insurance Company Limited (OMKM), is a joint
venturebetweenKotakMahindraBankLtd.(KMBL),andOldMutualplc.AtOMKM,
theaimistohelpcustomerstakeimportantfinancialdecisionsateverystageinlifeby
offering them a wide range of innovative life insurance products, to make them
financiallyindependent.JeeneKiAzaadi...
TheProductsofferedbytheCompanyare
Individual Plan
1 KotakEndowmentPlan
2 KotakTermPlan
3 KotakRetirementIncomePlan
4 KotakChildAdvantagePlan
1 KotakPreferredTermPlan
2 KotakCapitalMultiplierPlan
3 KotakSafeInvestmentPlan
4 Riders
5 ExclusionsUnderRiders
Group Plan
KotakTermGrouplan
KotakGratuityGrouplan
KotakCreditTermGrouplan
Riders
ExclusionsUnderRiders
Rural
KotakGraminaBimayojana
METLIFEINSURANCECOMPANY
Foralmost135years,MetropolitanLifeInsuranceCompanyhasbeeninsuringthelives
ofthepeoplewhodependonthem.Theirsuccessisbasedontheirlonghistoryofsocial
responsibility, strong leadership, sound investments, and innovative products and
services.
MetLifeBegins
TheoriginsofMetropolitanLifeInsuranceCompany(MetLife)gobackto1863,whena
groupofNewYorkCitybusinessmenraised$100,000tofoundtheNationalUnionLife.
SupportingCountryandCommunity
Overtheyears,MetLifehasmadeadifferencebysupportingurbanrenewalprojectsand
community financing. The company's social commitment and its commitment to the
securityofitspolicyholdershaveproventobegoodbusiness.
MetLifeToday
ItisthefastestgrowingprivatelifeinsurancecompanyinIndia
Currentlyhaveover200,000satisfiedcustomers
OneofIndiasleadingprivatelifeinsurancecompany.
TotalbranchesofIndiaare,AndhraPradesh,Delhi,Gujarat,Jammu&Kashmir,
Karnataka,Kerala,Maharashtra,Orissa,Punjab,Rajasthan,TamilnaduandWestBengal.
ProductsOfferedbythecompanyare
1) WholeLife
1 Met100Nonpar
2 Met100Goldpar
3 Met100Platinumpar
2) Endowment
1 MetGoldpar
2 MetPlatinumpar
1 MetJuniorpar
2 MetjuniorNonpar
3) MoneyBack
1 MetSukh
2 MetJuniorMB
4) Term
1 MetMortagageProtector
2 MetRiders
3 Accidentaldeath
BIRLASUNLIFEInsuranceCompany
BirlaSunLifeFinancialServicesoffersarangeoffinancialservicesforresidentIndians
andNonResidentIndians.Broughttogetherbytwolarge,powerfulandreputedbusiness
houses,theAdityaBirlaGroupandSunLifeFinancial,itisouraimtoofferdiverseand
topqualityfinancialservicestocustomers.TheMutualFundandInsurancecompanies
providewealthmanagementandprotectionproductstocustomerswhiletheDistribution
and Securities companies provide brokerage and trading services for investment in
equities,debtsecurities,fixeddeposits,etc.
Insuranceisnotaboutsomethinggoingwrong.It'softenaboutthingsgoingright.Oneof
thewondersofhumannatureisthatweneverbelieveanythingcanactuallygowrong.
Surely,lifehasitsshareofifs.AtBirlaSunLifehowever,theybelieveithasitsequally
pleasantshareofbutsaswell.BirlaSunLifestandcommittedtohelpyourealisethose
happymomentswhichmakealife.Beitlivingthesamelifestyleinyourpostretirement
daysorprovidingasecurefutureforyourlovedones,incasesomethinghappenstoyou.
Thelifeinsuranceproductsofferedbythecompanyare
Individuallife
1 PremiumBackTermPlan
2 FlexiSecureLifeRetirementPlan
3 SinglePremiumBond
4 BirlaSunLifeTermPlan
5 FlexiLifeLineWholeLifePlan
6 FlexiCashFlowMoneybackPlan
7 GroupLife
8 ProGroupTermInsurance
9 GroupSuperannuationPlan
10 GroupGratuityPlan
MAXNEWYORKLIFEINSURANCE
MaxNewYorkLifeInsuranceCompanyLimitedisajointventurebetweenMaxIndia
Limited,amultibusinesscorporate,andNewYorkLifeInternational,aglobalexpertin
lifeinsurance.MaxNewYorkLifetodayemergedasthecountry'sleadingprivatelife
insurancecompany.NewYorkLifeisaFortune100companythathasover160yearsof
experienceinthelifeinsurancebusiness.MaxIndiaLimitedisamultibusinesscorporate
dealinginClinicalResearch,ITandTelecomServices,andSpecialtyPlasticProducts
businesses.MaxNewYorkLifeInsurancestarteditsoperationsinIndiain2000.Itisthe
firstlifeinsurancecompanyinIndiatobeawardedtheIS09001:2000certification.Max
NewYorkofferscustomizedproductstailoredtosuitindividual'sneeds.Withitsvarious
Products and Riders, there are more than 400 product combinations to choose from.
Today,MaxNewYorkLifeInsurancehasanetworkof57officesspreadover37cities
alloverIndia.
Theproductsare
WholeLifeParticipatingdConvertible
WholeLifeNonParticipating,
ChildrenEndowmentatage18,
ChildrenEndowmentatage24,
20yearEndowmentParticipatingPolicy,
Endowmenttoage60
4.1
INTRODUCTIONTOANALYSIS:
Inordertoextractmeaningfulinformationfromthedatathem.Theanalysiscanbe
conductedbyusingsimplestatisticaltoolslikepercentages,averagesandmeasuresof
dispersion.Alternativelythecollecteddatamaybeanalysedcollected,thedataanalysisis
carried out. The data are first edited, coded and tabulated for analyzing by using
diagrams,graphs,charts,picturesetc.Dataanalysisistheprocessofplanningthedatain
anorderedform,combiningthemwiththeexistinginformationandextractingfromthem
Interpretationistheprocessofdrawingconclusionsfromthegathereddatainthestudy.
Inthisresearchtheresearcherhasanalysedthedatausingpercentagesandgraphs.
4.2DATAANALYSISTOOLSUSED:
Inthisresearchthedataanalysistoolsusedarepercentagesandgraphs.The
variousattributeswereanalysedseparatelyandtheimportancetoeachwascalculatedon
thebasisofthepercentage.Therankhavingthemaximumpercentagewastakentobe
preferredimportancetotheparticularattribute.
Afterlookingateachattributeseparately,alltheattributeswereconsideredtogetherto
developamaponthemostpreferredrankforalltheattributes.
TABLE1
AGEOFRESPONDENTS:
SL.NO
AGEINYEARS
NUMBER
OF
RESPONDENTS
PERCENTAGE
OF
RESPONDENTS
1.
1928
28
56%
2.
2938
18%
3.
3948
12%
4.
4958
12%
5.
5968
0%
6.
6978
2%
TOTAL
50
100%
SOURCE:SURVEYDATA
INFERENCE:Theabovetableclassifiedtherespondentsaccordingtotheiragegroup.
Themajorityoftherespondentsbelongtotheagegroup19to28yearswith56%and
thesecondagegroupis29to38yearswith18%,followedby39to48yearsand49to
58yearswith12%each.
GRAPH1
AGEOFRESPONDENTS:
60%
56%
50%
40%
30%
18%
20%
12%
12%
10%
0%
0%
19 - 28
YRS
29 - 3839 - 48
YRS
YRS
49 - 5859 - 68
YRS
YRS
INTERPRETATION
Majorityoftheinsuranceholdersarebelongingtotheagegroupof2030years.
2%
69 - 78
YRS
TABLE2
DIFFERENCIATIONOFTHERESPONDENTSINTOMALEANDFEMALE:
TYPESOF
RESPONDENTS
NUMBEROF
RESPONDENTS
PERCENTAGEOF
RESPONDENTS
MALERESPONDENTS
37
74%
FEMALE
RESPONDENTS
13
26%
TOTAL
50
100%
SOURCE:SURVEYDATA
INFERENCE:Thistablehelpsustounderstandthattherearemorenumberofmale
consumerswith74%marketsharethanthefemaleconsumerswith26%
marketshare.
GRAPH2
DIFFERENCIATIONOFTHERESPONDENTSINTOMALEANDFEMALE:
80%
74%
70%
60%
50%
40%
26%
30%
20%
10%
0%
ENTS
POND
R ESPON
ENTS
RES
L
MALE
EMA
F
INTERPRETATION
Mostoftheinsuranceholdersaremalepeople,sowecanreachaconclusionthatthe
malepeoplearemoreawareabouttheinsuranceanditsimportance.
TABLE3
DIFFERENCIATIONOFRESPONDENTSBASEDONTHEIROCCUPATION:
SL.NO
OCCUPATION
NUMBEROF
RESPONDENTS
PERCENTAGE
OF
RESPONDENTS
1.
STUDENTS
4%
2.
GOVERNMENT
EMPLOYEES
20
40%
3.
PRIVATE
EMPLOYEES
24
48%
4.
HOUSEWIVES
4%
5.
RETIRED
PERSONS
4%
TOTAL
50
100%
SOURCE:SURVEYDATA
INFERENCE:Itcouldbeinferredthatmajorityofconsumersoflifeinsurance
policiesareprivateemployeeswith48%andGovernmentemployeeswith40%,
followedbystudents,housewivesandretiredpersonswith4%each.
GRAPH3
DIFFERENCIATIONOFRESPONDENTSBASEDONTHEIROCCUPATION:
60%
48%
50%
40%
40%
30%
20%
10%
4%
4%
4%
RSONS
0%
NT
EES
ES
TUDE
EM
OYE
M PL
E
ENT
RNM
WIVE
IV
ATE
IRED
US
PE
HO
RET
GOVE
INTERPRETATION
Theabovegraphshowsthattheemployeesarethelargeproportionofinsuranceholders
comparedtoothercategories.
TABLE4
TABLESHOWINGINCOMEGROUPOFRESPONDENTS:
SL.NO
INCOME
GROUP
NUMBEROF
RESPONDENTS
PERCENTAGE
OF
RESPONDENTS
1.
LESSTHAN
5000
18%
2.
500110,000
17
34%
3.
1000115000
14
28%
4.
1500120000
14%
5.
2000125000
4%
6.
GREATER
THAN30000
2%
TOTAL
50
100%
SOURCE:SURVEYDATA
INFERENCE:Themajorityofdominantincomegrouphavinglifeinsurancepolicies
belongtotheincomegroupof5,001to10,000,whichismiddleclassgroup.Followed
bytheincomegroupof10,001to15,000.
GRAPH4
GRAPHSHOWINGINCOMEGROUPOFRESPONDENTS:
40%
35%
30%
25%
20%
15%
10%
5%
0%
<5000
INTERPRETATION
Theabovetableshowsthatmostoftheconsumersofinsurancepoliciesarebelonging
totheincomegroupof500015000
TABLE5
DIFFERENCIATIONOFRESPONDENTSACCORDINGTOTHEASSETS
OWNED:
SL.NO
ASSETS
NUMBEROF
RESPONDENTS
PERCENTAGE
OF
RESPONDENTS
1.
HOUSE
19
38%
2.
TWO
WHEELER
26
52%
3.
CAR
10%
TOTAL
50
100%
SOURCE:SURVEYDATA
INFERENCE:Thistablehelpsustoknowthatmostofconsumerswithlife
insurancepoliciesowntwowheelerswith52%,19%ofconsumersownhouseand
5%oftheconsumersowncar.
GRAPH5
DIFFERENCIATIONOFRESPONDENTSACCORDINGTOTHEASSETS
OWNED:
60%
52%
50%
40%
38%
30%
20%
10%
10%
0%
HOUSE
TWO
WHEELER
CAR
TABLE6
MARKETSHAREOFDIFFERENTLIFEINSURANCECOMPANIES:
COMPANIES
NUMBEROF
RESPONDENTS
PERCENTAGEOF
RESPONDENTS
LIC
39
78%
TATAAIG
2%
HDFC
6%
ICICI
8%
METLIFE
2%
KOTAK
MAHINDRA
2%
ALLIANCEBAJAJ
2%
SOURCE:SURVEYDATA
INFERENCE:Thistablehelpsustounderstandthemarketshareofdifferentlife
insurancecompanies.LIChasamajorshareof78%,followedbyICICIPrudential
with8%marketshare,followedbyHDFCStandardLifewith6%marketshare.
GRAPH6
MARKETSHAREOFDIFFERENTLIFEINSURANCECOMPANIES:
90%
80%
78%
70%
60%
50%
40%
30%
20%
10%
2%
0%
IC
L
A AIG
TAT
6%
8%
2%
2%
I
C
HDFC
ICI
BAJ AJ
LIFE
MET
2%
MAHINDRA NCE
LIA
KOTAK
AL
INTERPRETATION
TheabovegraphshowsthatmostoftheinsuranceholdersaretheconsumersofLIC
SinceitcanbeunderstandthatthepeoplearehavingmoretrustintheLICcomparedto
otherprivateinsurancecompanies.
TABLE7
TABLESHOWINGATTRIBUTESFROMRESPONDENTS:
SL.NO
ATTRIBUTE
SCORE
RANK
1.
RETURNON
30
INVESTMENT
2.
COMPANY
REPUTATION
25
3.
PREMIUM
OUTFLOW
22
4.
SERVICE
QUALITY
19
5.
PRODUCT
QUALITY
17
SOURCE:SURVEYDATA
INFERENCE:Thistableshowsthestrengthsandweaknessesofthebrand,andwhat
aretheimportantcriteriaorattributesonwhichdecisionmakingisdone.Fromthistable
wecaninferthatconsumersgivemoreimportanceforReturnoninvestment,secondly
theyprefercompanyreputation,andthenpremiumoutflowfollowedbyservicequality
andproductquality.
GRAPH7
GRAPHSHOWINGATTRIBUTESFROMRESPONDENTS:
RANKEDACCORDINGTOTHEPRIORITY
6
5
5
4
4
3
3
2
2
1
1
0
T
T
VE
MEN
UTA
ETU
R
P
OM
TFLO
LITY
U
Q
OU
QUALITY
VICE
NY
TIO
N IN
N
R
EMIUM
ER
S
PRODUCT
INTERPRETATION
Theabovefigureshowsthestrengthsandweaknessesofthebrand,andwhatarethe
importantcriteriaorattributesonwhichdecisionmakingisdone.Fromthisfigurewecan
inferthatconsumersgivemoreimportanceforReturnoninvestment,secondlythey
prefercompanyreputation,andthenpremiumoutflowfollowedbyservicequalityand
productquality.
TABLE8
FACTORSWHICHINFLUENCEDTOBUYLIFEINSURANCEPOLICY:
SL.NO
FACTORS
SCORES
RANK
1.
PERSONAL
INTEREST
28
2.
FAMILY
16
3.
FRIENDS
4.
AGENTS
5.
ADVERTISEMENT
6.
OTHERS
SOURCE:SURVEYDATA
INFERENCE:Thistableishelpfulinknowingwhichmediaisbestsuitablefor
promotingalifeinsuranceproduct.Itcanbeseenthatpersonalinterestinfluencesa
consumerstobuyalifeinsuranceproduct,followedbyfamily,friends,agentsand
advertisements.
GRAPH8
FACTORSWHICHINFLUENCEDTOBUYLIFEINSURANCEPOLICY:
7
6
6
5
5
4
4
3
3
2
2
1
0
Y
L
INTEREST
PERSONAL
IEN
R
FAMI
DS
ERS
AGENTS
SEMENT
I
TH
ADVERT
INTERPRETATION
Theabovefigureshowsthatthekeyfactorwhichinfluencestheconsumerstobuythe
lifeinsuranceproductispersonalinterests,followedbyfamily,friends,agentsand
advertisements.
TABLE9
VALUEOFRESPONDENTSLIFEINSURANCEPOLICY:
SL.NO
AMOUNT
NUMBEROF
RESPONDENTS
PERCENTAGE
OF
RESPONDENTS
1.
<10000
0%
2.
10000
25000
10%
3.
25000
50000
16%
4.
50000
100000
15
30%
5.
>100000
22
44%
SOURCE:SURVEYDATA
INFERENCE:Itcanbeinferredthatmajorityofconsumersbuythelifeinsurancepolicy
whichcostsmorethanRs.1,00,000followedbyRs.50,000tpRs.1,00,000,followedby
Rs.25,000toRs.50,000.
GRAPH9
VALUEOFRESPONDENTSLIFEINSURANCEPOLICY:
50%
44%
45%
40%
35%
30%
30%
25%
20%
16%
15%
10%
10%
5%
0%
0%
> 10000
10000 25000
25000 50000
50000 100000
> 100000
INTERPRETATION
Theabovefigureshowsthatmajorityofconsumersbuythelifeinsurancepolicywhich
costsmorethanRs.1,00,000followedbyRs.50,000tpRs.1,00,000,followedbyRs.
25,000toRs.50,000.
TABLE10
RESPONDENTSPREFERENCETOINVESTTHEIRMONEY:
NUMBEROF
RESPONDENTS
PERCENTAGEOF
RESPONDENTS
INSURANCE
COMPANY
24
48%
BANK
26
52%
TOTAL
50
100%
SOURCE:SURVEYDATA
INFERENCE:Fromthetableitisclearthatmajorityofpeople(52%)prefertoinvestin
Bankandothers(48%)prefertoinvestinInsurancecompanies.
GRAPH10
RESPONDENTSPREFERENCETOINVESTTHEIRMONEY:
53%
52%
52%
51%
50%
49%
48%
48%
47%
46%
INSURACE
BANK
COMPANY
INTERPRETATION
Theabovefigureshowsthatmostoftherespondentsarepreferredtoinvesttheir
moneyinbankratherthaninsurancesector.
TABLE11
SATISFACTIONOFRESPONDENTSWITHCURRENTLIFEINSURANCE
COMPANY:
RESPONSE
NUMBEROF
RESPONDENTS
PERCENTAGEOF
RESPONDENTS
YES
47
94%
NO
6%
TOTAL
50
100%
SOURCE:SURVEYDATA
INFERENCE:Fromthistableitcouldbeinferredthat94%oftheconsumersare
satisfiedwiththeserviceandqualityofproductsoftheirlifeinsurancecompanies.
Only6%ofconsumersarenotsatisfied.
GRAPH11
SATISFACTIONOFRESPONDENTSWITHCURRENTLIFEINSURANCE
COMPANY:
100%
94%
90%
80%
70%
60%
50%
40%
30%
20%
10%
6%
0%
YES
NO
INTERPRETATION
Fromtheabovefigureitcouldbeinferredthatmostoftheconsumersaresatisfiedwith
theserviceandqualityofproductsoftheirlifeinsurancecompanies.
TABLE12
RATINGSOFTHESERVICESOFFEREDBYTHERESPONDENTSLIFE
INSURANCECOMPANY:
RATINGS
NUMBEROF
RESPONDENTS
PERCENTAGE
OF
RESPONDENTS
EXCELLENT
14%
VERYGOOD
12
24%
GOOD
20
40%
AVERAGE
11
22%
POOR
0%
TOTAL
50
100%
SOURCE:SURVEYDATA
INFERENCE:Fromthistableitcouldbeinferredthat40%oftheconsumershaverated
serviceofferedasgood,24%ofthemhaveratedthemasverygood,22%ofthemhave
ratedasaverageand14%ofthemhaveratedasexcellent.
GRAPH12
RATINGSOFTHESERVICESOFFEREDBYTHERESPONDENTSLIFE
INSURANCECOMPANY:
45%
40%
40%
35%
30%
25%
20%
15%
24%
22%
14%
10%
5%
0%
0%
OOD
OOR
P
XCELLENT
E
ERY GOOD
AVERAGE
INTERPRETATION
Fromtheabovefigureshowsthatmostoftherespondentshaveratedtheircurrentlife
insurancecompaniesperformanceasgood.
TABLE13
CONSUMERSWILLINGNESSTOCOMMUNICATETHESERVICEOFFERED
BYTHEIRLIFEINSURANCECOMPANY
RESPONSES
NUMBEROF
RESPONDENTS
PERCENTAGEOF
RESPONDENTS
YES
39
78%
NO
11
22%
TOTAL
50
100%
SOURCE:SURVEYDATA
INFERENCE:Fromthistableitcanbenotedthatthemajorityofconsumers(78%)
wouldliketocommunicatetheserviceofferedbylifeinsurancecompaniesand22%of
consumerswouldnotliketocommunicatetheserviceoffered.
GRAPH13
CONSUMERSWILLINGNESSTOCOMMUNICATETHESERVICEOFFERED
BYTHEIRLIFEINSURANCECOMPANY
90%
80%
78%
70%
60%
50%
40%
30%
22%
20%
10%
0%
YES
NO
INTERPRETATION
Fromtheabovefigureitcanbenotedthatthemajorityofconsumerswouldlike
tocommunicatetheserviceofferedbylifeinsurancecompanies
TABLE14
NUMBEROFLIFEINSURANCECOMPANYKNOWNBYRESPONDENTS:
NUMBEROFLIFE
INSURANCE
COMPANYKNOWN
NUMBEROF
RESPONDENTS
PERCENTAGEOF
RESPONDENTS
<5
29
58%
57
18
36%
810
4%
>10
2%
TOTAL
50
100%
SOURCE:SURVEYDATA
INFERENCE:Thistablehelpsustoknowtheconsumerawarenessaboutthelife
insurancecompanies.58%oftheconsumersareawareaboutlessthan5lifeinsurance
companies,followedby36%consumerswhoknow5to7lifeinsurancecompanies.
GRAPH14
NUMBEROFLIFEINSURANCECOMPANYKNOWNBYRESPONDENTS:
70%
60%
58%
50%
40%
36%
30%
20%
10%
4%
2%
0%
<5
5 TO 7
8 TO 10
> 10
INTERPRETATION
Theabovefigureshowsthatmostoftherespondentsareawareabout,around
fivecompanies
TABLE15
SCORESOFDIFFERENTLIFEINSURANCECOMPANIES:
COMPANIES
SCORES
RANK
LIC
345
ICICIPRUDENTIAL
211
HDFC
194
TATAAIG
123
INGVYSYA
121
BAJAJALLIANZ
118
METLIFE
90
OTHERS
41
SOURCE:SURVEYDATA
INFERENCE:Fromthetableitcanrankthelifeinsurancecompanies,LICstandsfirst,
followedbyICICIPrudentialfollowedbyHDFCStandardlife,followedbyTATAAIG.
GRAPH15
SCORESOFDIFFERENTLIFEINSURANCECOMPANIES:
3
2
1
2
1
0
LIC
IAL
N
G
AI
HD
ATA
T
ICI
IC
PRUDE
A
ANZ
ING
AL
LI
T
E
LIFE
OTHERS
M
BAJAJ
INTERPRETATION
Fromtheabovefigureitcanrankedthelifeinsurancecompanies,LICstandsfirst,
followedbyICICIPrudentialfollowedbyHDFCStandardlife,followedbyTATAAIG.
5.1
SUMMARYOFFINDINGS
1 Themajorityofrespondentsbelongtotheagegroupof19to28yearswith56%
followedbyagegroupof29to38yearswith18%.
2 The male consumers capture the Market share with 74%, followed by the
femaleconsumerswith26%.
3 Themajorityoftheconsumersoflifeinsurancepoliciesareprivateemployees
with48%andGovernmentemployeeswith40%
4 Thedominantincomegrouphavinglifeinsurancegroupbelongtothegroupof5001
to10,000followedby10,001to15,000.
5 LIChasamajormarketshareof78%.
6 Thefactorswhichinfluencedtobuylifeinsurancepolicyisthepersonalfactor,
followedbyfamily,friends,agentsandadvertisements.
1 Thevalueofrespondentslifeinsurancepolicycostsmorethan5,00,000followedby
1,00,000to5,00,000.
2 Majorityofthepeople(52%)prefertoinvestinbankothers(48%)prefertoinvestin
insurancecompany.
3 Majorityofconsumersaresatisfiedwiththeserviceandqualityofproductsoftheir
lifeinsurancecompanies.
4 Majorityofconsumers(78%)wouldliketocommunicatetheserviceofferedby
lifeinsurancecompanies.
5 Majorityofconsumers(58%)areawareaboutlessthan5lifeinsurancecompanies.
6 LICstandsfirstfollowedbyICICIprudential,followedbyHDFCStandardLife.
CONCLUSION
ThisstudytitledStudyofConsumersPerceptionaboutLifeInsurancePoliciesenables
theLifeInsuranceCompanies tounderstandhowconsumers perceptiondiffersfrom
persontoperson.Howaconsumerselects,organizesandinterpretstheservicequality
and the product quality of different Life Insurance Policies, offered by various Life
InsuranceCompanies
Theresponseoftheinsurancecompanieshasbeenverypositiveandwithinashortspan
ontime,theIndianinsurancemarketscenariohasseenaperceptiblechangeintermsof
improvedcustomerservicebenchmarksandintroductionofinnovativeandtailorsmade
products.
MostoftheinsurancemajorshaverepresentedintheformofjointventureinIndian
market.
Thenewproductsthathavebeenintroducedbythecompanieshavecertaininnovative
features in terms of better customer services and also wider covers. This has given
customeramplechoicetoselectproducts.
5.2RECOMMENDATIONSANDSUGGESTIONS
Withregardtoinsuranceproducts,consumersrespondatdifferentrates,dependingonthe
consumerscharacteristics.HenceInsurancecompaniesshouldtrytobringtheirnew
producttotheattentionofpotentialearlyadopters.
1) Duetotheintensecompetitioninthelifeinsurancemarket,thelifeinsurance
companieshavetoadoptbetterstrategiestoattractmorecustomers.
2) Keepingthecost,qualityandreturnoninvestmentintactisnecessaryinorderto
tacklethecompetition.
3) Lifeinsuranceproductsaretakenmainlybymiddleandhigherincomegroup.
Hencetheyshouldberegardedasmaimtargetedincomegroups.Life
insuranceproductswhicharesuitableforlowerincomegroupshouldalsobe
releasedsothatthemarketshareincreases.
4) Returnoninvestmentcompanyreputationandpremiumoutflowaremost
preferredattributesthatareexpectedbytherespondents.Hencegreaterfocus
shouldbegiventotheseattributes.
5) Privatelifeinsurancecompaniesshouldadopteffectivepromotionalstrategies
toincreasetheawarenesslevelamongtheconsumers.
6) Lifeinsurancecompaniesshouldaskfortheirconsumerfeedbacktoknow
whethertheconsumersarereallysatisfiedordissatisfiedwiththeserviceand
productofthecompanies.Iftheyaredissatisfied,thenthereasonsfor
dissatisfactionshouldbefoundoutandshouldbecorrectedinfuture.
7) The LIC brand name has earned a lot of goodwill and enjoys a high brand
equity.Asthereisintensecompetitioninlifeinsurancemarket,LICshouldwork
hardtomaintainitstoppositionandofferbetterserviceandproduct.
QUESTIONNAIRE
ASTUDYCONDUCTEDTOUNDERSTANDTHECONSUMERS
PERCEPTIONABOUTLIFEINSURANCEPOLICIES
1. Name:
2. Age:
3. Address:
3a.Phonenumber:
4. Occupation:
5. Monthlyincome:
<5000
15,00120000
6.
DoYouOwn
500110,000
20,00125,000
10,00015,000
>25,000
House
TwoWheeler
Car
7.
DoyouhaveaLifeInsurancePolicywithanyLife
InsuranceCampany?
Yes
No
7.a)Ifyes,nametheCompany___________________________________
2) Namethepolicywhichyouown_____________________________
8. Whatfactorsdoyouconsiderwhilebuyingalifeinsurancepolicy?
PremiumOutflow
ServiceQuality
ReturnonInvestment
9.
CompanyReputation
ProductQuality
WhatfactorsinfluencedtobuyLifeInsurancePolicy?
Personalinterest
Agents
Friends
Advertisements
Family
others
10.Whatisthevalueofyourlifeinsurance?
>10,000
50,0001,00,000
10,00025,000
>1,00,000
25,00050,000
11.DoyouprefertoinvestyourmoneyinaInsurancecompanyorinaBank?
InsuranceCompany
Bank
12.AreyousatisfiedwithyourcurrentLifeInsuranceCompany?
Yes
No
IfYesWhy?___________________________________________
IfNoWhy?___________________________________________
13.HowdoyouratetheserviceofferedbyyourLifeInsuranceCompany?
Excellent
Average
VeryGood
Poor
Good
14. WouldyouliketocommunicatetheserviceofferedbyyourLifeInsurance
Companytoothers?
Yes
No
15.
HowmanyLifeinsuranceCompanniesdoyouknow?
<5
57
810
16.HowdoyouratethefollowingLifeInsuranceCompanies?
LIC
HDFC
INGVYSYA
METLIFEINDIAINSURANCE
BAJAJALLIANZ
ICICI
Prudential
TATAAIG
Others
17.
WouldYouliketocontinuewiththesameLifeInsuranceCompany?
Yes
No
18.Anysuggestionsforimprovingtheserviceofferedbylifeinsurance
companies
ThankYou.
BIBLIOGRAPHY
TEXTBOOKS:
1)ServicesMarketing
RaviShankar.
2)MarketingManagement
PhilipKotler.
3)ConsumerBehaviour
LeonGSchiffman
LestieLazarKanwk.
>10
4)PrinciplesofinsuranceLaw
Dr.AvtarSingh.
WEBSITES:
WWW.GOOGLE.COM
WWW.LIC.COM