A STUDY ON THE AWARENESS AND USAGE OF MICRO-INSURANCE

PRODUCTS WITH SPECIAL REFERENCE TO IDBI FEDERAL LIFE

INSURANCE COMPANY IN BANDARSINDRI AND BADASOLI AREAS
NEAR TO AJMER

SUBMITTED BY
RASMITA MANJARI GARANAYAK
PGDM-RM

CORPORATE GUIDE:
MR. ANAND BANSAL

FACULTY GUIDE:
PROF. ULLAS P. RAMAKRISHNAN

ASSISTANT BRANCH HEAD

IDBI FEDERAL LIFE INSURANCE, JAIPUR

FMS-IRM, JAIPUR

INTRODUCTION
Micro insurance is defined as insurance provided for low-income people by
a variety of insurers, run in accordance with generally accepted insurance
principles, and funded by premiums.
Risk protection
Low premiums and low coverage limit
It helps them to protect the gains in the event of any unfortunate events.
Common products of microinsurance are term plan,endowment plan, crop
insurance etc.
A micro-insurance policy is:
A general or life insurance policy with a sum assured of Rs. 50,000 or
less

COMPANY PROFILE
IDBI Federal Life Insurance is one of Indias growing life insurance
companies.
IDBI Federal Life Insurance Company is established in March 2008, a
joint venture between three major companies- IDBI Bank- Indias
premiere industrial bank, Federal bank private sector bank and Ageas
- international insurance company operating in Europe. IDBI Bank
holds 48% equity whereas Federal and Ageas hold 26% of equity each.
IDBI Federal distributes its products through a multi-channel network
consisting of Insurance agents, Bancassurance partners (IDBI Bank,
Federal Bank) Direct channel, and Insurance Brokers.

Products provided by the Company:

Microinsurance Group plan

OBJECTIVES OF THE STUDY:

To know the awareness of microinsurance.
Identifying the major issues of adoption of microinsurance
products.
To suggest improvement on how to increase sale of microinsurance products.

RESEARCH METHODOLOGY:
Universe: Bandarsindri and Badasoli
Sample size: 105
Sampling Method: Convenience Sampling
Research Design: Descriptive
Data Collection Method:
Primary data(Interview schedule)
Secondary data(Company documents, websites, journals )

ANALYSIS AND INERPRETAIONS

Table No-1 Awareness of microinsurance

Valid Yes

Frequenc
y
17

Percent
16.2

No

88

83.8

83.8

105

100.0

100.0

Total

Fig.1

Valid
Cumulative
Percent
Percent
16.2
16.2
100.0

Respondents have seen the advertisement of different companies

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
LIC(100%)

ICICI

Bajaj Allianz

Fig.2

IDBI Federal

Birla Sun Life

SBI Life

Respondents who have taken microinsurance products

yes(41.18%)
No(58.82%)

Fig.3

Respondents have taken different products of microinsurance

40%
35%
30%
25%
20%
15%
10%
5%
0%
Crop(0%)

Health(5.88%) Livestock(0%) Life(35.29%)

Fig.4

Asset(0%)

Disability(0%)

Respondents prefer the payment mode of premium for microinsurance products

60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

Fig:-5

Reasons for investing in microinsurance products

40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%

Fig:6

Major issues faced by respondents

60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

Fig:7

From where did

microinsurance

respondents

60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

Fig:8

come

to

about

FINDINGS:
16.2% of respondents
microinsurance.

are aware and 83.8% are not aware of

Major issues faced by respondents

57.14% -unawareness of microinsurance
14.29%-premium is non-refundable
28.57%-Dont trust private insurance companies
82.35% respondents came to know about microinsurance with the help
of agents of insurance company.

LIMITATIONS:
Time period is short.
Awareness of microinsurance is very low in areas of survey.
Language barrier.

SUGGETIONS
The company should focus more on the agents as well as local
festivals.
IDBI Federal Life Insurance Company should focus on the rural
areas for promotional so that people can aware of products of microinsurance.