TO ANALYSE THE CUSTOMER PREFERENCE TOWARDS INVESTING IN INSURANCE WITH SPECIAL REFERENCE TO ICICI PRUDENTIAL LIFE INSURANCE IN ERODE

CITY

PROJECT REPORT
Project report submitted to the Bharathiar University In partial Fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINSTRATION Submitted by

R.SATHISH Reg. No. 1035F0309 Under the Guidance Ms.G.MANJU, MBA.M.Com.M.Phil, Associate professor,

DEPARTMENT OF MANAGEMENT SCIENCE

KONGU ARTS AND SCIENCE COLLEGE

(Affiliated to Bharathiar University, Coimbatore) Nanjanapuram, Erode-638107. 2010-2012

ACKNOWLEDGEMENT

We take this opportunity to acknowledge with great pleasure, deep satisfaction and gratitude. The investigator places on record, their sincere thanks to

Thiru.A.VENKATACHALAM, B.sc., correspondent, Kongu Arts and Science College,Erode for providing the opportunity to conduct the study. The investigator is highly indebted to Dr.N.RAMAN, M.B.A., M.Com., M.Phil., B.Ed., PGDCA., Ph.D., principal, Kongu Arts and Science College,Erode for his blessings and encouraging words to complete the study. We sincerely thank Mrs.P.POONGODI, M.B.A.,M.Phil.,Ph.D., Head of Management Department, Kongu Arts and Science College,Erode for his motivation and encouragement to complete this project successfully. Our whole hearted and profound thanks to Ms.G.MANJU, MBA.M.Com.M.Phil, Associate professor,Department of Management Science, for her valuable support, worthy guidance, encouragement, kind co-operation and timely help to complete this research in time. Finally our heartfelt thanks to our family and friends who have helped us to complete this project.

R.Sathish

CERTIFICATE
This is to be certify that the project report entitled TO ANALSE THE CUSTOMER PREFERENCE TOWARDS INVESTING IN INSURANCE WITH SPECIAL REFERENCE TO ICICI PRUDENTIAL LIFE INSURANCE IN ERODE CITY is a bonafide record of the work done by Sathish.R(Reg. No: 1035FO309) and submitted in partial fulfillment of the requirements for the award of Degree of MASTER OF BUSINESS ADMINISTRATION, Bharathiar University, Coimbatore.

Head of the Department

Faculty Guide

Principal

Internal Examiner

External Examiner

Viva voce Exam held on_________

DECLARATION

We hearby declare that project work entitled TO ANALYSE THE CUSTOMER PREFERENCE TOWARDS INVESTING WITH SPECIAL REFERENCE TO ICICI PRUDETIAL LIFE INSURANCE IN ERODE CITY , Submitted to Bharathiar university, Coimbatore in partial fulfillment of the requirements for the award of the Degree of Master of Business Administration is a record of original project work done by us during our period of study in Kongu Arts And Science College, Nanjanapuram, Erode under the guidance of Ms.G.MANJU,MBA.,M.Com.,M.Phil,

Signature of the candidate Place : Date :

LIST OF CONTENTS
S.NO
List of Tables List of Charts

PARTICULARS

PAGE NO.

1 I.
INTRODUCTION AND DESIGN OF THE STUDY

1.1 Introduction of the study 1

1.2 Objectives of the study

36
1.3 Need for the Study

37
1.4 Limitations of the Study

38
1.5 Scope of the Study

39
1.6 Research Methodology

39
1.6.1 Research Instrument

39
1.6.2 Sample Size

39
1.6.3 Sample process

40
1.6.4 Data Analysis

41 II. III. IV.

COMPANY PROFILE

44
DATA ANALYSIS AND INTERPRETATION

96
FINDING, SUGGESTIONS AND CONCLUSIONS BIBLIOGRAPHY ANNEXURE

CHAPTER .I 1.1 INTRODUCTION AND DESIGN OF THE STUDY Meaning of Insurance:

Insurance provides financial protection against a loss arising out of happening of an uncertain event. A person can avail this protection by paying premium to an insurance company. A pool is created through contributions made by persons seeking to protect themselves from common risk. Premium is collected by insurance companies which also act as trustee to the pool. Any loss to the insured in case of happening of an uncertain event is paid out of this pool. Insurance works on the basic principle of risk-sharing. A great advantage of insurance is that it spreads the risk of a few people over a large group of people exposed to risk of similar type. Definition :

Insurance is a contract between two parties whereby one party agrees to undertake the risk of another in exchange for consideration known as premium and promises to pay a fixed sum of money to the other party on happening of an uncertain event (death) or after the expiry of a certain period in case of life insurance or to indemnify the other party on happening of an uncertain event in case of general insurance. The party bearing the risk is known as the 'insurer' or 'assurer' and the party whose risk is covered is known as the 'insured' or 'assured'. Concept of Insurance / How Insurance Works:

The concept behind insurance is that a group of people exposed to similar risk come together and make contributions towards formation of a pool of funds. In case a person actually suffers a loss on account of such risk, he is compensated out of the same pool of funds. Contribution to the pool is made by a group of people sharing common risks and collected by the insurance companies in the form of premiums.

Principles of Insurance: Insurance - Definition The contract of Insurance is a promise of compensation for certain potential future losses in exchange for a periodic payment [known as premium]. Insurance is intended to protect the financial well-being of an individual or a company or any other entity in case of unexpected loss. An agreement to the terms of an insurance policy creates a contract between the insured and the insurer. In exchange for the premiums paid by the insured, the insurer agrees to pay the policy holder a certain sum of money upon the occurrence of a specific event or on maturity. In most cases, the policy holder pays part of the loss (called the deductible), while the insurer pays the rest. Examples include health insurance, car insurance, life insurance, disability insurance, and business insurance. Main principles of Insurance:

Utmost good faith Indemnity Subrogation Contribution Insurable Interest Proximate Cause

Utmost Good Faith (Uberrimae Fides) It is the duty of the client to disclose all material facts relating to the risk being covered. A material fact is a fact that would influence the mind of a prudent underwriter while deciding whether or not to accept a risk for insurance and on what terms. This duty to disclose operates at the time of inception, atrenewal as well as at any point mid term. Indemnity When the event that is insured against occurs, the Insured will be placed in the same monetary position that he/she occupied immediately before the happening of the event.

In the event of a claim the insured must:

Prove that the event occurred Prove that a monetary loss has also occurred Transfer any rights that he/she may be having for the recovery from another source to the Insurer, if he/she is fully indemnified.

Subrogation With regards to insurance, subrogation is a feature of principle of indemnity and therefore only applies to contracts of indemnity and hence does not apply to life assurance or personal accident policies. It aims to prevent an insured to recover more than the indemnity that he receives under his insurance (where that represents the full amount of his loss) and enables the insurer to recover or reduce the loss.

Insurance Trends in India :

With the de-regulation in Indian Insurance industry, the monopoly of public sector companies in life insurance and general insurance has come to an end. This has augmented the innovative practices initiated by the private players. Growth in the interactive technology such as internet has further created a wave of excitement in the insurance market. Indian economy and Indian Insurance sector is committed to a double digit growth. Heres a glimpse of Insurance Industry over 190 years.

Background :

Insurance is a Rs 450 billion industry in India. The value of the market is determined by gross premium incomes. The life insurance segment writes about 80% of the overall market value.Indian Insurance market was at its all time high in 2003 with a growth of about 17.4% over the pervious year. Since 2001 Insurance is growing at the rate of 15-20 % annually. The growth in the insurance industry is affected by volatility in real estate rates, GDP rates and long term

interest rates. Fluctuations in exchange rates also affect the growth in this sector. The gross premium as a percentage of the GDP has gone up from 2.3 in the year 2000 to 4.8 in 2006. Together with banking services, it adds about 7% to the countrys GDP.

History of Indian Insurance :

A] Ancient Historical Times :

Insurance is as old as human society itself. The ancient origin of insurance is Emerigon, whose brilliant and learned Traite des Assurances, first published in 1783, is still read with respect and admiration. The result shows that insurances were known to the ancients such as Romans, Phoenicians Rhodians, although the business of underwriting commercial risks was probably not highly developed. The histories of Livy and Suetonius shows that the contractors who undertook to transport provisions and military stores to the troops in Spain stipulated that the government should assume all risk of loss by reason of perils of the sea or capture and this was probably the first time when insurance process was known. There were friendly societies organized, for the purpose of extending aid to their unfortunate members from a fund made up of contributions from all. These societies undoubtedly existed in China and India in the earliest times. The earliest traces of Insurance in the ancient Indian history was in the form of marine trade loans or carriers contracts, which can be found in Kautilyas Arthashastra, Yajnyavalkyas Dharmashastra and Manus Smriti. These works show that the system of credit and the law of interest were well developed in India. They were based on clear appreciation of hazard involved and the means of safeguarding against it.

1.2 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE: To Analyse the various factors which drive people to invest in private Insurance companies. To understand customers requirements in depth so that activities can be planned in order to have better Performance/Acceptance.

SECONDARY OBJECTIVES: To find out the age group of customers who prefer to invest in policies. To find out the professional status of individuals investing in policies. To find the segmentation in market with respect to income levels who favour policies. To find the reach of Advertisements by policies. To rate the factors which help in Decision Making for people to prefer policies.

1.3 NEED FOR THE STUDY

The main aim of the study is to find out what the customers expect from the Insurance product and make it move fast in the market. To measure the brand awareness and demand of the ICICI Prudential policies. To measure the customer attitude towards private Insurance sector.

1.4 LIMITATIONS OF THE STUDY Personal bias cant completely rule out. Due to time cost and resource constrains the survey was conducted in Erode city. Limitations during data collection like hesitation on the fact of samples. The sample size was restricted to 150 respondents and the respondents were chosen on convenience basis.

1.5 SCOPE FOR FURTHER STUDY

Customers are ever changing. They get newer ideas, opinions and are looking at quality for every rupee they dispose. For companies to live up to expectations of customers they need to organize their activities in such a way that their acceptance levels should be high compared to that of their competitions. Thus the focus is on analyzing the customer on various parameters so that they can approach him with generalized need based solutions. Henceforth, this project suits the above requirements in order to understand the Customers attitude in erode city.

This project looks at various aspects which Insurance Company should undertake in order to sustain and grab the market from competition.

1.6 RESEARCH METHODOLOGY

Descriptive Research Design Descriptive research includes surveys and fact-findings enquiries of different kinds. The major purpose or descriptive research is description of the state of affairs, as it exists at present. In social science and business research we quite often use the term "EXPOST FACTOR" research for descriptive research studies. The main characteristic of this method is that the research has not control over the variables, he can only report what has happened or what is happening.

The study is based on both primary and secondary data. Primary data: The information, which is followed on fresh for the first, time and thus happen to be original in character. Primary data is collected through survey and the method is used for: Questionnaire Secondary data: Secondary data are those which have already been collected by someone else and which have already been passed through the statistical process. Some of the sources are as follows : Company internal records News papers Magazines Other published sources Directories Websites etc

1.6.1. Research Instrument Questionnaire : Questionnaire construction is a crucial part of the survey and once the questionnaire is upto the mark then that it self is an indication of sources of the project. A good questionnaire will make the respondents feel easy and generate to fill up the questionnaire, which also minimizes rejection or Questionnaire by the respondents to a greater extent.

1.6.2. Sample Size: This refers to the number of items to be selected from the universe to constitute a sample. The size of sample should neither be excessively large, nor too small. It should be optimum. The size of sample is 150. Sampling Area: Erode city.

1.6.3. Sampling Process: Sampling process consists of the following sequential steps.

a. Define the population: The population for a survey on changes of brand preferences in middle class Element : To analyze the customer attitude towards investing insurance with specific reference to M/s.1CICl Prudential Insurance Ltd.

b. Sampling Frame: A sampling frame is a mean of representing the elements or the population . Sampling frame - respondents address record. c. Sampling Unit: The sampling unit is the basic containing the elements or the population to be sampled. Sampling unit - brand preferences in general.

d. Sampling Method: The sampling method is the way the sample units are to be selected. The sampling taken in the survey as convenience sampling due to time constraints.

1.6.4 Data analysis: 1. Percentage Method: percentage refers to a special kind of ratio; percentage is used in making comparison between two or more series of data percentages are used to describe relationship. 100 Percentage of respondents: No of respondents X Total respondents Percentage is used in processing the data. Bar charts and pie diagrams are used to explain tabulation clearly.

2. Chi-square Test: The objective chi-square test is to determine whether the real or significant difference exists among the various groups. Chi-square test involves comparison of expected frequency (E) with the observed frequency (O) to determine whether the difference between the two is greater than which might occur by change.

Conditions to Use Two sets of data i.e., observed and expected. Data based on same sample Each observed and expected count of five or larger. The different between rows and columns must represent categorical variable.

Steps: The difference between each observed frequency and expected frequency is computed. The difference observed and squared.

 Each observed difference is divided by its respective expected. The quotient is added together to obtain the computer chi-square. The computed value is compared to tabulated chi-square. If the computed value is greater than the tabulated value at a pre determined level of significance and degree of freedom the hypothesis is rejected. On the other hand if calculated chi-square value is less than the table value. The hypothesis is accepted. E(Oi-Ei) X = Ei Where x = Chi-Square Oi = Observed frequency Ei= Expected Frequency

3. Co- efficient of correlation: Of the several mathematical methods of measuring correlation , the karl Pearsons method, popularly known as persons coefficient for correlation, is most widely used in practice. The pearson coefficient of correlation is denoted by the symbol r. It is one for the very few symbols that are used universally for describing the degree of correlation between two series. When deviations are taken from an assumed mean the following formula is applicable: N dxdy - dxdy ___________________________________ Ndx - (dx) N dy - ( dy)

r=

dx dy

= sum of the deviations of X series from an assumed mean = sum of the deviations of Y series from an assumed mean.

dxdy = sum of the product of the deviations of X and Y series from their assumed Mean.

dx = sum of the squares of the deviations of X series from an assumed mean dy = sum of the squares of the deviations of Y series from an assumed mean.

CHAPTER II

COMPANY PROFILE

ICICI PRUDENTIAL LIFE INSURANCE COMPANY

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial service group head quartered in the United Kingdom. ICICI Prudential was amongst the first private sector Insurance Company to begin operations in December 2000 after receiving approval from Insurance Regulatory Development authority (IRDA).

ICICI Prudential equity base stands at Rs.825 billion with ICICI Bank and Prudential policy holding 74% and 26% stake respectively. In the year ended September 30 2004, the company garnered Rs.498 crore of new business premium for a total sum assured of over Rs.23, 000 crore and had mover 1 million polices. The company has a network of over 40,000 advisors mass well as 7 banacassurance tie-ups.

Today, ICICI Prudential equity stands at Rs.675 Crore with ICICI Bank and Prudential police holding 74% and 26% stake respectively. In the quarter ended June 30,2004. The company issued over 1,00,000 policies for a total sum assured of over Rs.3753 Crore and had business premium income of Rs.243 Crore. Today the company is the number one private life insurance in India having commenced operations in 62 cities and forces in India.

ICICI Prudential life insurance company as a joint venture between ICICI Bank, a premier financial power house and prudential policy.

2.2 Vision:
To make ICICI Prudential the dominant life and pensions player built on trust by worldclass people and service. This we hope to achieve by understanding the needs of customers and offering them superior products and service Leveraging technology to service customers quickly, efficiently and conveniently developing and implementing superior Risk management and

investment strategies to offer sustainable and stable returns to our policy holders providing an enabling environment to foster growth and learning for our employees and above all, building transparency in all our dealings.

The success of the company will be founded in its unflinching commitment to 5 crore values-integrity customer first, boundaryless, ownership and passion. Each of the value describes what the company stands for, the qualities of our people and the way we work.

We do believe that we are on the threshold of an exciting new opportunity, where we can play a significant role in redefining and reshaping the sector. Given the quality of our parentage and the commitment of our team, there are no limits to our growth.

2.3 Promoters
ICICI and prudential came together in 1993 to form Prudential ICICI Asset Management Company, Which has today emerged as one of the leading mutual funds in India. The two companies bring together two of the strongest financial service brands in Asia, known for their professionalism, excellent quality of service and long term commitment to you. Riding on the success of this relationship, the two companies joined hands once more in 2000, to form ICICI Prudential Life Insurance, with a commitment to provide leading-edge life insurance solutions.

ICICI bank has 74% stake in the company, and Prudential plc has 26%.

ICICI Bank ICICI Bank (NYSE:IBN) is Indians second largest bank with an asset base of Rs.106812 crore. ICICI Bank provides a broad spectrum of financial services to individuals and companies. This includes mortgages car and personal loans, credit and debit cards, corporate and agricultural finance, the bank service a growing customer base of more than 7 million customer accounts and 5 million bondholders accounts through a multi-channel access network. This includes about 450 branches and extension counters, 1675 ATMs, call centers and internet banking (www.icicibank.com). ICICI Bank posted a nets profile of Rs.1, 206 crore for the year ended March 31, 2003. ICICI Bank is the only company to be rated above the country rating by the

international rating agency Moddys and the only Indian company to be awarded an investment grade international credit rating. The bank enjoys the highest AAA (or equivalent) rating from all the leading Indian rating agencies.

Prudential plc Established in 1848, Prudential plc is a leading international financial services company in the UK. With around US$250 billion funds under management, and more than 16 million customers worldwide. Prudential has brought to market an integrated range of financial service products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance, in Asia, Prudential is UKs largest life insurance company with a vast network of 22 life and mutual fund operations in twelve countries- China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia the Philippines, Singapore, Taiwan, Thailand and Vietnam. Since 1923, prudential has championed customer- centric products and services, supported by over 60,000 staff and agents across the region.

2.4 PRODUCT PROFILE

2.4.1 Insurance Solutions for Individuals

ICICI Prudential Life Insurance offers a range of innovative, customer centric products that meet the needs of customers at every life stage. Its 20 products can be enhanced with up to 6 riders, to create a customized solution for each policy holders.

2.4.2 Savings Solutions SecurePlus is a transparent and feature-packed savings plan that offers 3 levels of protection. CashPlus is a transparent, feature-packed savings plan that offers 3 levels of protection as well as liquidity options.

2.4.3 Save?n?Protect is a traditional endowment savings plan that offers life protection along with adequate returns. CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a childs marriage, expenses for a childs higher education or purchase of an asset. LifeTime & LifeTime II offer customers the flexibility and control to customize the police to meet the changing needs at different life stages. Each offer 4 fund options? Preserver, Protector, Balancer and Maximiser. LifeLink II is a single premium Market Linked Insurance plan which combines life insurance cover with the opportunity to stay invested in the stock market. Premier Life is a limited premium paying plan that offers customers life insurance cover till the age of 75.

 Invest Shield Life is a market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest. Invest Shield Cash is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with flexible liquidity options. Invest Shield Gold is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with limited premium payment terms.

2.4.4 Protection Solutions

LifeGuard is a protection plan, which offers life cover at very low cost. It is available in 3 options? level term assurance, level term assurance with return of premium and single premium.

2.4.5 Child Plans SmartKid education plans provide guaranteed educational benefits to a child along the insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the childs life. SmartKid plans are also available in unitlinked form? both single premium and regular premium.

2.4.6 Retirement Solutions Forever Life is a retirement product targeted at individuals in their thirties. SecurePluse Pension is a flexible pension plan that allows one to select between 3 levels of cover.

2.4.7 Market-linked retirement products LifeTime Pension II is a regular premium market- linked pension plan. LifeLink Pension II is a single premium market-linked pension plan. InvestShields Pension is a regular premium pension plan with a capital guarantee on the investible premium and declared bonuses.

2.4.8 Group Insurance Solutions

ICICI Prudential also Group Insurance Solution for companies seeking to enhance benefit to their employees.

ICICI Pru Group Gratuity Plan: ICICI Pru group gratuity plans helps employers funds their statutory gratuity obligation in a scientific manner. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations.

ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined contribution superannuation scheme to provide a retirement Kitty for each member of the group. Employees have the option of choosing from various annuity options or opting for a partial communication of the annuity at the time of retirement.

ICICI Pru Group Term Plan: ICICI Pru flexible group term solution helps provide affordable cover to member of a group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death.

2.5 OUTLINE OF THE STUDY

Insurance is concerned with the protection of economic value of assets. The beginning of insurance business is traced to the city of London. It started with the marine business. Marine traders, who used to gather at Lloyds coffee house in London, agreed to share losses to goods during transportation by ship. In India insurance started with life insurance. It was in the early 19th century when the Britishers on their postings in India felt the need of life insurance cover. It started with English Companies like. The European and the Albert. The first Indian insurance company was the Bombay Mutual Society Ltd., formed in 1870.

In the wake of the Swadeshi Movement in India in the early 1900s, quite a good number of Indian companies were formed in various parts of the country to transact insurance business. To name a few: Hindustan Co-operative and National Insurance in Kolkata, United India in Chennai, Bombay Life ,New India and Jupiter in Mumbai and Lakshmi Insurance in New Delhi.

In 1956, life insurance business was nationalized and LIC of India came into being on 1.9.1956. The government took over the business of 245 companies who were transacting life insurance business at that time. Thereafter, LIC got the exclusive privilege to transact life insurance business in India. Relevant laws were amended in1999 and LICs monopoly right to transact life insurance business in India came to end. At the close of financial year ending 31.3.2004, twelve new companies were registered with the Insurance Regulatory Development Authority (IRDA) to transact life insurance business in India.

CHAPTER III DATA ANALYSIS AND INTERPRETATION

PERCENTAGE ANALYSIS

TABLE NO: 3.1 AGE WISE CLASSIFICATION Age Group 18-25 Years 25-35 35-45 Above 45 No of Respondents 43 61 13 33 Percentage 28.67 40.67 8.66 22

Total

150

100

Inference: The above table inferred that 40.67 % of the respondents are between the age group of 25 35 followed by 28.67 % of the respondents are between 18 25, 8.66 % are between 35 45 and 22 % are above 45 years.

CHART NO: 3.1 AGE WISE CLASSIFICATION

50
40.67

40
28.67

30
22

20
8.66

10

0
18-25 Years 25-35 35-45 Above 45

TABLE NO: 3.2 GENDER DETAILS

Gender Male Female Total Inference:

No. of Respondents 117 33 150

Percentage 64.5 35.5 100

The above table inferred that 64.5 % of the respondents are male and 35.5% of the respondent are female.

CHART.3.2 GENDER DETAILS

36% Male Female 64%

TABLE NO: 3.3 MARRIED STATUS

Status

No. of Respondents

Percentage

Married

37

35.5

Unmarried

113

64.5

Total

150

100

Inference: The above table inferred that 35.5 % of the respondents are married and 64.5% of the respondent are unmarried.

CHART 3.3 MARRIED STATUS

64.5 70 60 Percentage 50 40 30 20 10 0 Married Married Status Unmarried 35.5

TABLE NO: 3.4 PROFESSIONAL QUALIFICATION

QUALIFICATION 10th 12th Graduate Post Graduate Total

NO.OF RESPONDENT 24 30 34 62 150

PERCENTAGE 11 20 24 45 100

Inference: The above table inferred that 11 % of the respondents are 10th qualified and 20 % of the respondent are 12th qualified and 24% of the respondent are graduate and 45% of the respondent are post graduate.

CHART 3.4

PROFESSIONAL QUALIFICATION

50 45 40 35 Percentage 30 25 20 15 10 5 0 10th 12th Graduate Post Graduate Qualification Level 11 20 24 45

TABLE NO: 3.5

PROFESSIONAL Professional M.B.A CA ICWA/CFA/CS Engineer L.L.B Doctor Total NO.OF RESPONDENT 37 14 8 63 7 21 150 PERCENTAGE 26 7 4 46 3 14 100

Inference: The above table inferred that 26 % of the respondents are M.B.A and 7 % of the respondent are CA and 4% of the respondent are ICWA/CFA/CS and 46% of the respondent are Engineer and 3% of the respondent are L.L.B and 14% of the respondent are doctor.

CHART 3.5

PROFESSIONAL

50 45 40 35 30 25 20 15 10 5 0

Percentage

Professional

TABLE NO: 3.6

NATURE OF OCCUPATION Nature of Job Salaried Self Employed House Wife / Student Retired / Pensioner Agriculture Others Total No of Respondents 82 32 11 12 4 9 150 Percentage 54.67 21.33 7.33 8 2.67 6 100

Inference: The above table inferred that 54.67 % of the respondents are salaried persons, 21.33 % of the respondents are self employed, 8 % of the respondents have retired and pensioners, 7.33 % of the respondents are housewife/students, 6 % 0f the respondents are from others and 2.67 % are from agriculture.

CHART NO: 3.6

NATURE OF OCCUPATION

Graph showing the nature of Occupation 60 50 40 30 20 10 0

54.67

21.33 7.33 8 2.67

Salaried

Self Employed

House Wife / Student

Retired / Pensioner

Agriculture

Others

TABLE NO: 3.7

LEVEL OF INCOME

Income Upto 1 Lac Upto 2 Lacs 3 to 5 Lacs Above 5 Lacs Total

No of Respondents 51 51 36 12 150

Percentage 34 34 24 8 100

Inference: From the above table it is inferred that 34% of the respondents have income upto 1 lakh and 2 lakh, 24% of the respondents have income between 3-5 lakhs and 8% are above 5 lakhs income customers.

CHARTNO: 3.7

LEVEL OF INCOME

Graph showing the Level of Income

40 34 34 24

30

20 8 10

0 Upto 1 Lac Upto 2 Lacs 3 to 5 Lacs Above 5 Lacs

Income

TABLE NO: 3.8

PATTERN OF INVESTMENT

Response

No of Respondents

Percentage

Postal Savings Fixed Deposits Shares Recurring Deposits Mutual Funds Real Estates Others Total Inference:

21 38 19 25 21 22 4 150

14 25.33 12.67 16.67 14 14.67 2.67 100

From the above table it is inferred that reveals 25.33% of the respondents invest in fixed deposits, 16.67% of the respondents have recurring deposits, 14.67%of the respondents invest in real estates, 14% of the respondents have mutual funds and postal savings, 12.67% of respondents invest in shares, and 2.67% are interested in other plans.

CHART NO: 3.8

PATTERN OF INVESTMENT

30
25.33

20
14 12.67

16.67 14 14.67

10
2.67

Postal Savings

Fixed Deposits

Shares

Recurring Deposits

Mutual Funds Real Estates

Others

TABLE NO: 3.9

NUMBER OF POLICY HOLDERS

Response Yes No Total

No of Respondents 128 22 150

Percentage 85.33 14.67 100

Inference: From the above table it reveals that 85.33% of respondents have taken insurance, 14.67% of the respondents have not taken insurance.

CHART NO: 3.9

NUMBER OF POLICY HOLDERS

14.67

Yes No

85.33

TABLE NO: 3.10

PERCEPTION TOWARDS THE CONCEPT OF INSURANCE

Response Life General Total

No of Respondents 94 56 150

Percentage 62.6 37.4 100

Inference: From the above table it reveals that 62.6% of respondents have taken life insurance, 37.4% of the respondents have general.

CHART 3.10

PERCEPTION TOWARDS THE CONCEPT OF INSURANCE

Life

General

37%

63%

TABLE NO: 3.11

PERCEPTION OF CUSTOMERS ON THE CONCEPT OF INSURANCE

Response Investment Tool Tax Saving Tool Cover of probable risk Saving Tool Others Total Inference:

No of Respondents 29 7 40 52 22 150

Percentage 19.33 4.67 26.67 34.67 14.67 100

From the above table it reveals that 4.67% of respondents treats insurance as saving tool, 26.67% of respondents treats insurance as cover of probable risk, 19.33% of respondents treats insurance as investments tool, 4.67% of respondents consider insurance as Tax saving tool, and 14.67% of respondents have no idea on insurance.

CHART NO: 3.11

PERCEPTION OF CUSTOMERS ON THE CONCEPT OF INSURANCE

40 35 30 Percentage 25 20 15 10 5 0 Investment Tool Tax Saving Tool Cover of probable risk Response Saving Tool Others 4.67 19.33 14.67 26.67 34.67

TABLE NO: 3.12 FACTORS THAT ARE TO BE CONSIDERED BEFORE INVESTMENT

Response Goodwill of the Company Rate of returns offered Brand image Diversified business group Service Offered Years of business Others Total

No of Respondents 30 32 22 12 15 10 31 150

Percentage 20 21.33 14.67 8 10 6.67 19.34 100

Inference: From the above table it is inferred that 21.33% of them respondents have decision of invest in financial institutions as it is offering good rate of returns offered, 20% of the respondents invest in financial institutions against goodwill of the company, 14.67% of because of brand image of the company and 14.67% have no idea in insurance, 10% of the respondents invest to the service offered, 8% of the respondents invest against diversified business groups, 6.67% of the respondents invest against years of business, 19.34% of the respondents invest in others.

CHART NO: 3.12

FACTORS THAT ARE TO BE CONSIDERED BEFORE INVESTMENT

25 Percentage 20 15 10 5 0

20

21.33 14.67 10 8 6.67

19.34

Response

TABLE NO: 3.13

SOURCE OF INFORMATION ABOUT THE LIFE INSURANCE.

Response Friends Relatives Colleagues TV Ads All of the above Others Total

No of Respondents 41 39 19 13 16 22 150

Percentage 27.33 26 12.67 8.67 10.67 14.67 100

Inference: From the above table it is inferred that 27.33% of them respondents got information about life insurance company from friends, 26% of the respondents got through relatives, 12.67% of the respondents got through their colleagues, 10.67% of the respondents got from all of the above, 8.67% of the respondents got information from TV Ads, 14.67% of the respondents showed no response towards insurance.

CHART NO: 3.13

SOURCE OF INFORMATION ABOUT THE LIFE INSURANCE.

27.33

26

30 20 10 0
Friends Relatives Colleagues TV Ads All of the abpve 12.67 8.67 14.67 10.67

Others

TABLE NO: 3.14

INVESTMENT IN THE PRIVATE LIFE INSURANCE COMPANY.

Response Yes No Total

No of Respondents 114 36 150

Percentage 76 24 100

Inference: From the above table it is inferred that 76% of the respondents have invested in private life insurance company, 24% of the respondents do not invest in private life insurance company.

CHART NO: 3.14

INVESTMENT IN THE PRIVATE LIFE INSURANCE COMPANY.

24%

Yes No

76%

TABLE NO: 3.15

VARIOUS LIFE INSURANCE COMPANIES.

Response ICICI Metlife TATA HDFC Bajaj ICICI LIC Bajaj TATA Sanmar Metlife HDFC Others

No of Respondents 15 2 1 3 7 38 37 8 4 4 5 4 22

Rank 4 10 11 9 6 1 2 5 8 8 7 8 3

TABLE NO: 3.16

FACTORS TO BE CONSIDERED BEFORE INVESTING IN INSURANCE COMPANY. Sample Brand image Service offered Rate of returns offered Product mix Product features Need based solutions Reference from a known Others TOTAL No of Respondents 25 20 31 11 21 9 9 24 150 Percentage 16.67 % 13.33% 20.67% 7.33% 14% 6% 6% 16% 100

Inference: From the above table it is inferred that 20.67% of respondents invest in insurance company which offer high rate of returns, 16.67% of respondents respond to brand image of the company, 13.33% of the respondents respond to the services offered in the company, 7.33% of the respondents product mix, 6% of the respondents follow need based solution and reference from a known some, 16% of the respondents follow the others.

CHART NO: 3.15

FACTORS TO BE CONSIDERED BEFORE INVESTING IN INSURANCE COMPANY.

14.67% 1.33% 6%

13.33%

6%

20.67%

14%

7.33%

TABLE NO: 3.17

CONTENTION OF CUSTOMERS ON THE SERVICE OF LIFE INSURANCE

Response Yes No TOTAL

No of Respondents 124 26 150

Percentage 82.6 17.4 100

Inference: From the above table it is inferred that 82.6% of respondents are satisfied with the present life insurance company, 17.4% of the respondents are not satisfied with the insurance company.

CHART NO: 3.16

CONTENTION OF CUSTOMERS ON THE SERVICE OF LIFE INSURANCE

90 80 70 Percentage 60 50 40 30 20 10 0

82.6

17.4

Yes Response

No

TABLE NO: 3.18

DISSATISFACTION ON THE SERVICE OF LIFE INSURANCE COMPANY.

Response Advisors follow up not good Longer duration of processing No promptness in delivery Others TOTAL

No of Respondents 7 6 8 127 150

Percentage 4.67% 4% 5.33% 84.67% 100

Inference: The above table inferred that the main reason for dissatisfaction present in life insurance company are 4.67% of advisor follow up and 4% of the respondent are lack of promptness in deliver and 5.33% of the respondent are non transparency and delivery in process and 84.67% of the respondent are others.

CHART NO: 3.17

DISSATISFACTION ON THE SERVICE OF LIFE INSURANCE COMPANY.

4.67% 4% 5.33%

84.67%

TABLE NO: 3.19

COMPANY REPRESENT IS NEEDED.

Response Yes No TOTAL Inference:

No of Respondents 113 37 150

Percentage 75.5 24.5 100

From the above table it is inferred that 75.5% of respondents attend their problems with company representative, 24.5% of respondents do not attend their problems with company representative.

CHART NO: 3.18

COMPANY REPRESENT IS NEEDED.

No, 24.5

Yes, 75.5

Table 3.20

CHI-SQUARE TEST FACTORS TO BE CONSIDERED BEFORE INVESTING IN INSURANCE COMPANY.

Null Hypothesis (H0)

There is no significant relationship between age and purpose of income.

Alternative Hypothesis (H1) :

There is a significant relationship between age and purpose income.

TABLE NO. 1 AGE VS PURPOSE OF INCOME LEVEL

S.no AGE 1 LAK 2 LAK 3-5 LAK ABOVE TOTAL 5 LAK 43 3 61 3 13 0 33 6 150 12

1 2 3 4

18-25 25-35 35-45 ABOVE 45 Total

10 20 10 11 51

15 23 3 10 51

15 15 0 6 36

FORMULA 2=(OiEi)2 Ei Ei = Column total x row total Grand total

Where,

Oi-refers to the Observed frequency Ei-refers to the Expected frequency

2 Result

Calculated value of 2 Level of significance

= =

42.93 5%

Degree of Freedom

= = =

(c-1) (r-1) (4-1) (4-1) 9

Table Value of 2

21.026

42.93>21.026 Calculated value > table value

Conclusion
The calculate of chi square value is greater than table value. So null hypothesis is rejected. Hence there is a significant relationship between age and purpose and income.

TABLE NO.2

AGE VS PURPOSE OF INCOME LEVEL

Null Hypothesis (H0) : There is no significant relationship between occupation and purpose of income . Alternative Hypothesis (H1) : There is a significant relationship between occupation and purpose income. S.no Occupation 1 LAK 2 LAK 3-5 LAK ABOVE TOTAL 5 82 10 32 0 11 0 12 2 4 0 9 0 150 12

1 2 3 4 5 6

Salaried Self employed House wife/ student Retired / pensioner Agriculture Others Total

30 11 4 3 1 2 51

24 10 7 5 2 3 51

18 11 0 2 1 4 36

FORMULA 2=(OiEi)2 Ei Ei = Column total x row total Grand total

Where,

Oi-refers to the Observed frequency Ei-refers to the Expected frequency

2 Result Calculated value of 2 Level of significance = = 30.2 5%

Degree of Freedom

= = =

(c-1) (r-1) (4-1) (6-1) 15

Table Value of 2

21.026

30.2>21.026 Calculated value > table value

Conclusion
The calculate of chi square value is greater than table value. So null hypothesis is rejected. Hence there is a significant relationship between occupation and purpose and income.

CO- EFFICIENT OF CORRELATION

Table No: 3.21

X 30 32 22 12 15 10 9 22 dx (X-13) 17 19 9 -1 2 -3 -4 9 48 dx 289 361 81 1 4 9 16 81 842 Y 25 20 31 11 21 9 11 22 dy (Y-16) 9 4 15 -5 5 -7 -5 6 22 dy 81 16 225 25 25 49 25 36 482 dxdx 153 76 135 5 10 21 20 54 474

Calculation : N dXdY - dXdY ___________________________________ NdX - (dX) N dY - ( dY) (8) (474) (48) (22) _________________________________ (8) (842) - (48) (8) (482) (22)

r=

r=

r=

2736 3865.05

r=

0.707

Result : From the above calculation , so there is relationship .

CHAPTER IV

FINDINGS ,SUGGESTIOS AND CONCLUSION.

4.1 FINDINGS 40.67 % of the respondents are between the age group of 25 35 followed by 28.67 % of the respondents are between 18 25. 54.67 % of the respondents are salaried persons, 21.33 % of the respondents are self employed. 34% of the respondents have income upto 1 lakh and 2 lakh, 24% of the respondents have income between 3-5 lakhs and 8% are above 5 lakhs income customers. 25.33% of the respondents invest in fixed deposits, 16.67% of the respondents have recurring deposits, 14.67%of the respondents invest in real estates. 85.33% of respondents have taken insurance, 14.67% of the respondents have not taken insurance. 52.67% of respondents have taken life insurance, 39.93% of the respondents have taken both life and general. 34.67% of respondents treats insurance as saving tool, 26.67% of respondents treats insurance as cover of probable risk. 21.33% of them respondents have decision of invest in financial institutions as it is offering good rate of returns offered, 20% of the respondents invest in financial institutions against goodwill of the company, 14.67% of because of brand image of the company .

 27.33% of them respondents got information about life insurance company from friends, 26% of the respondents got through relatives, 12.67% of the respondents got through their colleagues. 59.33% of the respondents have invested in private life insurance company, 26% of the respondents do not invest in private life insurance company, and 14.67% of the respondents have no interest in insurance. 25.33% of the respondents invest in ICICI prudential, 24.67% of respondents invest in LIC. According to the table it clearly notifies that LIC has majority of respondents followed by ICICI prudential. 20.67% of respondents invest in insurance company which offer high rate of returns, 16.67% of respondents respond to brand image of the company, 13.33% of the respondents respond to the services offered in the company. 67.33% of respondents are satisfied with the present life insurance company, 18% of the respondents are not satisfied with the insurance company, and 14.67% of the respondents have no response towards insurance companies. The main reason for dissatisfaction present in life insurance company are true of advisor follow up, lack of promptness in deliver, non transparency and delivery in process. 62% of respondents attend their problems with company representative, 23.33% of respondents do not attend their problems with company representative, and 14.67% of respondents have no response towards insurance.

4.2 SUGGESTIONS It is suggested that the company brouchers must be available in regional (Local) language according to the company location. It is suggested to company that to give training for the advisors has go to the people exploring about policies. It is suggested to the company to go for service camps so that the people will get awareness about the policies. The company have to give more advertisement to create the awareness about the insurance.

CONCLUSION

From the research conducted it is conducted that 25-35 age group of customers preferred to invest in policy. The job holders and self employed people invest mainly in policies. The annual income of the respondents between 1-2 lakhs generally. From the study it is observed that the reach of advertisement for policies is less because the major source of information for life insurance is through family and friends. The prospective insurers considers rate of return and good will of the company has decision making factors. To finally researcher concludes that the customers have very good attitude towards private insurance company because they offer very good service and speed of transaction is high.

BIBLOGRAPHY

REFERENCE FROM BOOKS : Gupta. S.P., Statistical Methods , New Delhi, Sultan Chand & Sons 1998 Publishers,

Kothari. C.R., Research Methodology, New Delhi, Vishva Publications, Second Edition, Reprint Editions 2000.

Prakashan

Philip Kotler, Gray Armstrong, Principles of Marketing, New Delhi, Publications, Second Edition 1998

Prentice - Hall

Saravanavel. P. Research Methodology, Allahabad, Kitab Mahal Publishers,

2001.

REFERENCE FROM WEBSITES :

www.google.com www.iciciprulife.com

ANNEXURE

QUESTIONNAIRE

Personal information Name Age: 18-25 [ Gender Male [ ] 25-35 [ ] : ] Female [ : ] Unmarried [ 12 Th ] ] 35-45 [ ] above 45 [ ] :

Marital status Married [ 10th [ ]

Educational qualification: [ ] Graduate [ ] ]

Post graduate [ If professional : MBA [ Engineer [ You are a : Salaried [ ] Self employed [ ] ] ] CA [ LLB [ ] ]

ICWA/CFA/CS [ Doctor [ ]

House wife/ student [

] Retired / pensioner [ Agriculture [ ]

] Others

Financial information

1. Could you please tell me approximate annual income Upto 1lac [ ] ] Upto 2 lac [ ] 3 to 5 lacs [ ]

Above 5 lacs [

2. Could you please indicate your investment across options Postal saving [ ] Fixed deposits ] mutual funds [ [ ] ] shares [ ]

Recurring deposit [ Others ----------------

real estates [ ]

3. Do you have insurance Yes [ ] ] No [ ] ]

If yes, life [

General [

4. What is your perception towards the concept of insurance? It is an investment tool [ ] ] it is a tax saving tool [ it is a savings tool [ ] ]

It is a cover for probable risk [ Others [ ]

5. What are the various factors you look for in a financial institution before you make a decision to invest? Good will of the company [ Brand offered Services offered Others [ ] [ [ ] ] ] Rate of returns offered [ ] ] ]

Diversified business group [ Years of business [

6. What are you various sources of information about life insurance companies? Friends [ ] Relatives [ ] Colleagues [ ] TV ads [ ]

All the above [ ]

7. Could you please tell if you have invested in a private life insurance company? Yes [ ] No [ ]

8. Could you recall names of some life insurance companies you prefer? LIC,ICICI [ ] LIC,Metlife [ ] LIC,TATA [ ] LIC,HDFC [ ]

LIC,Bajaj [ ] ICICI [ ] LIC [

] Bajaj [ ] TATA [ ] Sanmar [ ]

Met life[ ] HDFC [ ] OTHERS [ ]

9. What are the various factors you considered to invest in that company? Brand image [ ] [ [ Services offered [ ] ] Product mix [ ] ] [ ]

Rate of returns offered Product features

Need based solution ] others

Reference from a known source [

10. Are you happy with the services of your present life insurance company? Yes [ ] No [ ]

11. If no, what made you think so? Give reasons Advisors follow up not good [ ] ]

Longer duration of processing [ No promptness in deliver Others [ ]

____________________

12. Do you want me to help you in sending a company representative to attend to your problems? Yes [ ] No [ ]

THANK YOU