CHAPTER- I

INTRODUCTION

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Introduction:

Everyone is exposed to various risks. Future is very uncertain, but there is way to protect
one’s family and make one’s children’s future safe. Life Insurance companies help us to
ensure that our family’s future is not just secure but also prosperous.

Life Insurance is particularly important if you are the sole breadwinner for your family. The loss
of you and your income could devastate your family. Life insurance will ensure that if anything
happens to you, your loved ones will be able to manage financially.

This study titled “Study of Consumers Perception about Life Insurance Policies”
enables the Life Insurance Companies to understand how consumer’s perception differs
from person to person. How a consumer selects, organizes and interprets the service
quality and the product quality of different Life Insurance Policies, offered by various
Life Insurance Companies.

Insurance is a tool by which fatalities of a small number are compensated out of funds
(premium payment) collected from plenteous. Insurance companies pay back for financial losses
arising out of occurrence of insured events e.g. in personal accident policy death due to accident,
in fire policy the insured events are fire and other allied perils like riot and strike, explosion etc.
hence insurance safeguard against uncertainties. It provides financial recompense for losses
suffered due to incident of unanticipated events, insured with in policy of insurance. Moreover,
through a number of acts of parliament, specific types of insurance are legally enforced in our
country e.g. third party insurance under motor vehicles Act, public liability insurance for handlers
of hazardous substances under environment protection Act. Etc.

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WHAT IS INSURANCE

It is a commonly acknowledged phenomenon that there are countless risks in every

sphere of life .for property, there are fire risk; for shipment of goods. There are perils of
sea; for human life there are risk of death or disability; and so on .the chances of
occurrences of the events causing losses are quite uncertain because these may or may
not take place. Therefore, with this view in mind, people facing common risks come
together and make their small contribution to the common fund. While it may not be
possible to tell in advance, which person will suffer the losses, it is possible to work out
how many persons on an average out of the group, may suffer losses. When risk occurs,
the loss is made good out of the common fund .in this way each and every one shares the
risk .in fact they share the loss by payment of premium, which is calculated on the
likelihood of loss .in olden time, the contribution make the above-stated notion of
insurance
DEFINITION OF INSURANCE
Insurance has been defined to be that in, which a sum of money as a premium is paid by
the insured in consideration of the insurer’s bearings the risk of paying a large sum upon a given
contingency. The insurance thus is a contract whereby:

a. Certain sum, termed as premium, is charged in consideration,

b. Against the said consideration, a large amount is guaranteed to be paid by
the insurer who received the premium,
c. The compensation will be made in certain definite sum, i.e., the loss or the
policy amount which ever may be, and
d. The payment is made only upon a contingency

More specifically, insurance may be defined as a contact between two parties, wherein one party
(the insurer) agrees to pay to the other party (the insured) or the beneficiary, a certain sum upon a
given contingency (the risk) against which insurance is required.

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TYPES OF INSURANCE

Insurance occupies an important place in the modern world because of the risk, which can be
insured, in number and extent owing to the growing complexity of present day economic system.
The different type of insurance have come about by practice within insurance companies, and by
the influence of legislation controlling the transacting of insurance business, broadly, insurance
may be classified into the following categories:

1. Classification from business point of view

a) Life insurance, and
b) General insurance
2. Classification on the basis of nature of insurance

a) Life insurance
b) Fire insurance
c) Marine insurance
d) Social insurance, and
e) Miscellaneous insurance

3. Classification from risk point of view

a) Personal insurance
b) Property insurance
c) Liability insurance
d) Fidelity general insurance
THE IMPORTANCE OF INSURANCE

Insurance benefits society by allowing individuals to share the risks faced by many people. But
it also serves many other important economic and societal functions. Because insurance is available
and affordable, banks can make loans with the assurance that the loan’s collateral (property that can be
taken as payment if a loan goes unpaid) is covered against damage. This increased availability of
credit helps people buy homes and cars. Insurance also provides the capital that communities need to
quickly rebuild and recover economically from natural disasters, such as tornadoes or hurricanes.

Insurance itself has become a significant economic force in most industrialized countries.
Employers buy insurance to cover their employees against work-related injuries and health
problems. Businesses also insure their property, including technology used in production, against
damage and theft. Because it makes business operations safer, insurance encourages businesses to
make economic transactions, which benefits the economies of countries. In addition, millions of
people work for insurance companies and related businesses. In 1996 more than 2.4 million
people worked in the insurance industry in the United States and Canada. Insurance as an
investment that offers a lot more in terms of returns, risk cover & as also that tax concessions &
added bonuses

Not all effects of insurance are positive ones. The possibility of earning insurance
payments motivates some people to attempt to cause damage or losses. Without the
possibility of collecting insurance benefits, for instance, no one would think of arson, the
willful destruction of property by fire, as a potential source of money.
THE INSURANCE INDUSTRY TODAY

Since the 1970s, the insurance business has grown dramatically and undergone
tremendous changes. As a result of the deregulation of financial services businesses— including
insurance, banking, and securities trading—the roles, products, and services of these formerly
distinct businesses have become blurred. For instance, citizens in the U.S. state of California
voted in 1988 to allow banks to sell insurance in that state. In Canada, banks may also soon be
allowed to sell insurance.

Advances in communications technology have also allowed traditionally

distinct financial businesses to keep instantaneous track of developments in other businesses
and compete for some of the same customers. Some insurance companies now offer deposit
accounts and mortgages. In the United States, life insurance companies now sell more
pension plans and other asset management services than they do conventional life insurance.

In addition, improvements in geological and meteorological technology have the

potential to change the way property insurers calculate risks of damage. For example, as
scientists improve their abilities to predict severe weather patterns, such as hurricanes, and
geological disturbances, such as earthquakes, insurers may change how they provide
protection against losses from such events
EVOLUTION OF INSURANCE IN INDIA

The marine insurance is the oldest form of insurance. If we trace Indian history there are
evidence that marine insurance was practiced here about three thousand years ago. The
code of Manu indicates that there was the practice of marine insurance carried out by the
traders in India with those of Srilanka, Egypt and Greece .it is wonderful to see that
Indians had even anticipated the doctrine of average and contribution. Fright was fixed
according to season and was then very much at the mercy of the wind and other elements.
Travelers by sea and land were very much exposed to the risk of losing their vessels and
merchandise because of piracy on open seas and highway robbery of caravans was very
common. The practice of insurance was very common during the rule of Akbar to
Aurangzeb, but the nature and coverage of the insurance in this period is not well known.
It was the British insurer who introduced general insurance in India in the modern form.
The Britishers opened general insurance in India around the year 1700 .the first company
known as the sun insurance office was set up in Calcutta in the year 1710. This was
followed by several insurance companies like London assurance and royal exchange
assurance (1720), Phoenix Assurance Company (1782). Etc. General insurance business
in the country was nationalized with effect from 1st January 1973 by the General
Insurance Business (Nationalization) Act, 1972. More than 100 non-life insurance
companies including branches of foreign companies operating within the country were
amalgamated and grouped into four companies, viz., the National Insurance Company
Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd., and
the United India Insurance Company Ltd. with head offices at Calcutta, Bombay, New
Delhi and Madras, respectively.
Insurance sector have characteristic that give can boost to the growth of any economy
.it is due to the savings done at the individual level and at micro level it generates funds
for infrastructure building as the cash flow is constant while the payout is differed, so
that the insurance companies are becoming biggest investors in long gestation
infrastructure development projects and hence have a great Importance to the
developing economy like India.
Insurance sector with an annual growth rate of 15-20% and the largest number of life
insurance policies in force, the potential of the Indian insurance industry is huge.
Customer satisfaction, a term frequently used in marketing, is a measure of how products and
services supplied by a company meet or surpass customer expectation. In a competitive market
place where business competes for customers, Customer satisfaction is seen as a key
differentiator and has become a key element of business strategy. Kotler (2004) defined customer
satisfaction as ‘a person’s feeling of pleasure or disappointment resulting from comparing a
product’s perceived performance (or outcome) in relation to his/her expectation’. He also said
that “the key to customer retention is customer satisfaction.”
The purpose of this training was to have practical experience of working within the
organization, in the field of marketing and to have exposure to the important
management practices in field of marketing.
Life insurance in the current form came in India from united kingdom with the establishment of a
British firm, oriental life assurance company in 1818 followed by Bombay life assurance
company in 1823, the madras equitable life insurance society in 1829 and oriental life assurance
company in 1874.prior to 1871, Indian lives were treated as sub standard and charged an extra
premium of 15% to 20%. Bombay mutual life assurance society, an Indian insurer that came in to
existence in 1871, was the first to cover Indian lives at normal rates. The Indian insurance
company Act 1923 was enacted inter alia, to enable the government to collect statistical
information about life and non-life insurance business transacted in India by Indian and foreign
insurer, including the provident insurance societies.

th
The first half of the 20 century marked by two world war, the adverse affects of
the World War I and World War II on the economy of India, and in between them the period
of world wide economic crises triggered by the Great depression. The first half of the 20th
century was also marked by struggles for India’s independence. The aggregate effect of these
events led to a high rate of bankruptcies and liquidation of life insurance companies in India.
This had adversely affected the faith of the general public in the utility of obtaining life cover

In this background, the Parliament of India passed the Life Insurance of India Act on
19th June 1956, and the Life Insurance Corporation of India was created on 1st
September, 1956, by consolidating the life insurance business of 245 private life insurers
and other entities offering life insurance services.
Since 1972, the insurance sector has been totally under the control of government of India
through LIC and GIC and its subsidiaries. As a result, revenue of both of them increased in the
last years .the amount of savings pooled by LIC increased from Rs.2704 crores in 1974 to Rs .
57670 in 1994 with an annual growth rate of 16.53%

.similarly premium underwritten by GIC rose from 280 crores in 193 to 7647 crores in
1998 showing an annual growth rate of 25.18%.

Despite increase in premium collected by both LIC and GIC their were inefficiency
and red tapeisum creeped in to the insurance sector. Apart from that a major policy shift by
the Narasimha Rau government during 1990’s.the Indian economy opened for foreign
competition .In this background The government of India in 1993 had set-up a high powered
committee by R.N Malhothra ,former governor reserve bank of India, to examine the
structure of Indian insurance sector and recommended changes to make it more efficient and
competitive keeping in view structural changes in other part of the financial system of the
country.

Insurance sector has been opened up for competition from Indian private insurance
companies with the enactment of Insurance Regulatory and Development Authority Act,
1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and
Development Authority (IRDA) was established on 19th April 2000 to protect the interests of
holder of insurance policy and to regulate, promote and ensure orderly growth of the
insurance industry. IRDA Act 1999 paved the way for the entry of private players into the
insurance market, which was hitherto the exclusive privilege of public sector insurance
companies/ corporations.
EVOLUTION OF INSURANCE ORGANIZATION

With a view to serve the society, the insurance organizations have been developed
in different forms with innovation of insurance practice for social welfare and
development; some of these forms are outlined here.

a) Self-insurance
The arrangement in which an individual or concern sets up a private fund to meet the
future risk. If some losses happened in the future the firm meets the loss out of the fund.
While it may be called ‘self insurance’ it is not a single matter of fact, insurance at all
because there is no hedge, no shifting, or distributing the burden of risk among larger
Persons. It is merely a provision to meeting the unforeseen event. Here the insured become
the insurer for the particular risk. But it can be effectively worked only when there is wide
distribution of risks subjected the same hazard.

b) Partnership
A partnership firm may also carry on the insurance business for the sake of profit. Since it is not
an entity distinct from the persons comprising it, the personal liability of partners in respect to the
partnership debts is unlimited. In case of huge loss the partners may have to pay from their own
personal funds and it will not be profitable to them to starts insurance business .in the early period
before the advent of joint stock companies many insurance undertakings were partnership firms
or unincorporated companies

c) Joint stock companies

The joint stock companies are those, which are organized by the shareholders who subscribe
the necessary capital to start the business. These are formed for earning profits for the stockholders
who are the real owners of the companies. The management of a company is entrusted to a board of
directors who is elected by the shareholders from amongst themselves. The company can operate
insurance business and policyholders have nothing to do with the management of the concern. But in
life insurance it is the practice to share certain portion of profit among the certain policyholders.
d) Mutual fund companies
The mutual fund companies are co- operative association formed for the purpose of
effecting insurance on the property of its members. The policyholders are themselves the
shareholders of the companies each member is insured as well as insured. They have
power to participate in management and in the profit sharing to the full extent. Whenever
the income is more than the expenses and claims, it is accumulated I the form of saving
and is entitled in reducing the rate of premium. Since the insured are insurers also, they
always try to reduce the management expenses and to keep the business at sound level.

e) Co-operative insurance organizations

Cooperative insurance organizations are those concerns, which are incorporated and
registered under Indian cooperative societies Act. The concerns are also called ‘co
operative insurance societies’ these societies like mutual fund companies are non profit
organization .the aim is to provide insurance protection to its members at the lowest
reasonable net cost .the Indian insurance Act. 1938, has provided special provisions for
the co-operative insurance societies, but after nationalization the societies have ceased to
exist.

f) Lloyd’s Association

Lloyd’s association is one of the greatest insurance institutions in the world. Taking its
name from the coffee house Lloyd where underwriters assembled to transact business and pick-up
news. The organization traces its origins to the latter part of the seventeenth century .so it is the
oldest insurance organization in existing form in the world. In 1871,Lloyds Act was passed
incorporating the members of the association into a single corporate body with perpetual
succession and a corporate seal .the powers of Lloyds corporation were extended from the
business of marine insurance to the other insurance and guarantee business. The Lloyds
Association also publishes, Lloyds list and register of shipping for the information of insuring
public and the insurers
 g) State Insurance
The government of a nation, some times, owns the insurance and runs the business for the
benefit of the public. The sate insurance is defined as that insurance which is under public
sector. In Brazil, Japan and Mexico, the insurance are largely nationalized. Previously, the
state undertook only those insurances, which were regarded as vital for the national interest.

INSURANCE SECTOR REFORMS

Having looked at the insurance sector, the efforts made by the government to
make the industry more dynamic and customer friendly. To begin with, the Malhotra
committee was set up with the objective of suggesting changes that would achieve the
much required dynamism.

The Malhotra Committee Report

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI

Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry and
recommend its future direction. In 1994, the committee submitted the report and gave the
following recommendations:

Structure
Government stake in the insurance Companies to be brought down to 50%
Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations
All the insurance companies should be given greater freedom to operate
Competition
Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter
the industry
No Company should deal in both Life and General Insurance through a single entity
Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies.
Postal Life Insurance should be allowed to operate in the rural market.
Only one State Level Life Insurance Company should be allowed to operate in each stat
Regulatory Body
The Insurance Act should be changed.
An Insurance Regulatory body should be set up.
Controller of Insurance (Currently a part from the Finance Ministry)
Investments
Mandatory Investments of LIC Life Fund in government securities to be reduced from
75% to 50%.
GIC and its subsidiaries are not to hold more than 5% in any company (There current
holdings to be brought down to this level over a period of time).
Customer Service
LIC should pay interest on delays in payments beyond 30 days.
Insurance companies must be encouraged to set up unit linked pension plans.
Computerization of operations and updating of technology to be carried out in the
insurance industry.
Overall, the committee strongly felt that in order to improve the customer services and increase
the coverage of the insurance industry should be opened up to competition.

But at the same time, the committee felt the need to exercise caution as any failure on the
part of new players could ruin the public confidence in the industry
Few Life Insurance policies are:

Whole life policies - Cover the insured for life. The insured does not receive money while
he is alive; the nominee receives the sum assured plus bonus upon death of the insured.

Endowment policies - Cover the insured for a specific period. The insured receives
money on survival of the term and is not covered thereafter.

Money back policies - The nominee receives money immediately on death of the insured.
On survival the insured receives money at regular intervals during the term. These
policies cost more than endowment with profit policies.

Annuities / Children's policies - The nominee receives a guaranteed amount of money at a

pre-determined time and not immediately on death of the insured. On survival the insured
receives money at the same pre-determined time. These policies are best suited for planning
children's future education and marriage costs.

Pension schemes - are policies that provide benefits to the insured only upon retirement. If the
insured dies during the term of the policy, his nominee would receive the benefits either as a
lump sum or as a pension every month. Since a single policy cannot meet all the insurance
objectives, one should have a portfolio of policies covering all the needs
1.2 BACKGROUND OF THE STUDY
“Life Insurance is a contract for payment of a sum of money to the person assured on the
happening of the event insured against”. Usually the insurance contract provides for the
payment of an amount on the date of maturity or at specified dates at periodic intervals or
at unfortunate death if it occurs earlier. Obviously, there is a price to be paid for this
benefit. Among other things the contracts also provides for the payment of premiums, by
the assured.
Life Insurance is universally acknowledged as a tool to eliminate risk, substitute certainty
for uncertainty and ensure timely aid for the family in the unfortunate event of the death
of the breadwinner. In other words, it is the civilized world’s partial solution to the
problems caused by death. Life insurance helps in two ways dealing with premature
death, which leaves dependent families to fend for themselves and old age without visible
means of support.
The most common types of life insurance are whole life insurance and term life insurance.
Whole life insurance provides a lifetime of protection as long as you pay the premiums to
keep the policy active. They also accrue a cash value and thus offer a savings component.
Term life insurance provides protection only during the term of the policy and the policies
are usually renewable at the end of the term
 There are many Life Insurance Companies like

LIFE INSURANCE CORPORATION OF INDIA

BAJAJ ALLIANZ LIFE INSURANCE COMPANY

ICICI PRUDENTIAL LIFE INSURANCE COMPANY

HDFC STANDARD LIFE INSURANCE COMPANY

BIRLA SUN-LIFE INSURANCE COMPANY

ING VYSYA LIFE INSURANCE COMPANY

METLIFE INSURANCE COMPANY

TATA AIG LIFE INSURANCE COMPANY

MAX NEW YORK LIFE INSURANCE COMPANY

OM KOTAK MAHINDRA LIFE INSURANCE COMPANY

OBJECTIVE OF THE STUDY:

 Ascertain the profile and characteristics of potential buyers.

 To have an insight into the attitudes and behaviors of customers.

 To find out the differences among perceived service and expected service
 .To produce an executive service report to upgrade service characteristics of life
insurance companies.

 To access the degree of satisfaction of the consumer with the current brand of insurance
products.
REVIEW OF LITERATURE:

The literature review section critically examine the recent or historically significant studies, company
data or industry reports that acts as a basis for proposed studies to begin with the research discussion
of the related literature and relevant secondary data from a comprehensive prospective, moving to
more specific studies, that are associate with research problem. Basically the literature should be
applied to the study, than the researcher proposes. The literature may also explain the needs for the
proposed work to appraise the short comings and informational gaps in secondary data sources.

To carry the research work the researcher has gone through a few reports, books, journals
and websites. The details regarding Life Insurance Industry, history, origin and growth of the
industry is also taken from some books, magazines etc. The sources of this information are as
follows:
Catalogues and Broachers from various life insurance companies. Articles from
magazines and news paper.Information from various websites.
RESEARCH Methodology

2.1 STATEMENT OF THE PROBLEM

This Study will help us to understand the consumer’s perception about life
insurance companies. This study will help the companies to understand, how a
consumer selects, organizes and interprets the Quality of service and product
offered by life insurance companies.

2.2 SCOPE OF THE STUDY

This study is limited to the consumers within the limit of Bangalore city.
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
customers needs .

2.3 NEED FOR THE STUDY

1) The deeper the understanding of consumer’s needs and perception, the earlier the
product is introduced ahead of competitors, the expected contribution margin
will be greater .Hence the study is very important.

2) Consumer markets and consumer buying behavior can be understood before

sound product and marketing plans are developed
3) This study will help companies to customize the service and product,
according to the consumer’s need.
4) This study will also help the companies to understand the experience and
expectations of the existing customers.
5) Apart from creating, manufacturing and distribution capabilities for life
insurance products, an in depth study of the consumers, their preferences and
demand for their product is very necessary for setting up an efficient
marketing network.
RESEARCH DESIGN:
A research design is a basic plan, which guides the researcher in the collection and analysis of
data required for practicing the research. Infect the research design is the conceptual structure
where the research is conducted. It constitutes the ‘Blue Print’ for the collection, measurement
and analysis of the data. The study is carried out to understand the Consumer Perception about
life insurance companies in Bangalore city .For this study the researcher used exploratory
research design. This research covers 50 consumers in Bangalore city, belonging to various age
groups.

2.7 SAMPLE DESIGN:

The process of drawing a sample from a large population is called sampling. Population refers to
the total of items about which information is defined. Well-selected samples may reflect fairly
and accurately the characteristics of the population.
Sampling Unit:
The sample unit of this survey was the customers having life insurance policies in
Bangalore city.
Sample Size:
The sample size was 50 customers of different life insurance companies, from
the various parts of the Bangalore city.
Sampling Technique Adopted:
Convenient sampling
 2.8 SOURCES OF DATA:
After identifying and defining the research problem and determining specific information
required to solve the problem the researcher will look for the type and sources of data
which may yield the desired results, while deciding about the method of data collection to
be used for the study, there are two types of data.

Primary Data:
Primary data are those, which are collected for the first time. Primary data is collected by framing
questionnaires. The questionnaire contained questions, which are both open-ended and closed-
ended. Open-ended questions are questions requiring answers in the responder’s own words.
Closed-ended questions are those wherein the respondent has to merely check the appropriate
answer from a list of options available. Any doubts raised by the respondents were clarified to get
the perfect answers from the distributors. Open-ended questions yielded more insightful
information, whereas closed-Ended questions were relatively simple to tabulate and analyze.

Secondary data
Secondary data means data that are already available i.e. they refer to the data which have
been collected and analyzed by someone and can save both money and time of the researcher.
Secondary data may be available in the form of company records, trade publications, libraries
etc. Secondary data sources are as follows:
Company Reports
Daily Newspaper
Standard Textbook
Various Websites
FIELD WORK:
An interview-schedule and well-structured questionnaire is administered to the target
respondents to collect primary data (Copy of questionnaire is attached in the appendix) Open
and close-ended questions are used in the questionnaire. The orders of the questions are in
such a manner that they begin with simple questions and lead on the questions that needed
more involvement from respondents.The secondary data are collected from periodicals,
magazines, journals and Internet.
OPERATIONAL DEFINITIONS OF THE STUDY
Marketing:
Marketing is a social and managerial process by which individuals and group obtain what
they need and want through creating, offering and exchanging products of value with
others
.
Marketing Management:
Marketing Management is the process of planning and executing the conception, pricing,
promotion and distribution of individual and organizational goals.

Marketing Research:
Marketing research is the systematic and objective search for, and analysis of information
relevant to the identification and solution of any problems in the field of marketing.

Consumer Research:
Consumer research is the methodology used to study consumer behaviour.

Consumer Behaviour:
Consumer behaviour is the study of how individuals make decisions to spend their
available resources [time, money, efforts] on consumption related items .

Market Segmentation:
Market segmentation is the process of dividing a market in the distinct subsets of
consumer with common needs or characteristics and selecting one or more segments to
target with distinct marketing mix.

Positioning:
Positioning is the act of designing the company’s offering and image so that they occupy a
meaningful and distinct competitive position in the target consumer’s mind.
Perception:
Perception is the process by which an individual selects, organizes, and interprets information
input to create a meaningful picture of the world. For a marketer to influence a motivated
buyer to buy their products rather than competitors they must be careful to take the
perception process into account while designing their marketing campaigns. Perception
therefore influence what product consumer buys.

Attitude:
An attitude is a person enduring favorable or unfavorable evaluation, emotional feeling,
and action tendencies towards some object or idea.

Attributes:
Attributes are the strengths and weaknesses of a brand that create attitudes and are used
by consumers to choose between brands that are relatively similar or functionally
equivalent.

Values:
A value is a concept of the desirable. An internalized standard of evaluation a person
possession. This standard determines or guide an individual evaluation of the many
objects encountered in everyday life.

Brand:
A brand is a name, term, sign, symbol, or design or a combination of them, used to
identify the goods or services of one seller or group of seller and the differentiate them
from those of competitors.
2 LIMITATIONS OF THE STUDY
Although the study was carried out with extreme enthusiasm and careful planning there
are several limitations, which handicapped the research viz.

Time Constraints:
The time stipulated for the project to be completed is less and thus there are chances
that some information might have been left out, however due care is taken to include all
the relevant information needed.

Sample size:
Due to time constraints the sample size was relatively small and would definitely have
been more representative if I had collected information from more respondents .
Accuracy:
It is difficult to know if all the respondents gave accurate information; some respondents
tend to give misleading information.
 CHAPTER-II
PROFILE OF THE ORGANISATION
History and Development of Life Insurance

Life Insurance, in its present form, came to India from the United Kingdom with
establishment of a British firm, Oriental Life Insurance Company in Calcutta in 1818,
followed by Bombay Life Assurance Company in 1823, the Madras Equitable Life Insurance
society in 1829 and Oriental Government security Assurance Company in 1874. Prior to
1871, Indian Lives were treated as sub-standard and charged an extra premium of 15% to
20%. Bombay Mutual Life Assurance Society, a Indian insurer which came into existence in
1871 was the first to cover Indian lives at normal rates.

The Indian life Assurance Companies Act, 1912 was the first statutory measure to regulate
life insurance business. Later, in 1928, the Indian Insurance Companies Act was enacted, to
enable the government to collect statistical information about both life and non-life insurance
business transacted in India by Indian and foreign insurers, including the provident insurance
societies. Comprehensive arrangements were, however, brought into effect with the
enactment of the Insurance Act, 1938.

By 1956, 154 Indian insurers, 16 non-Indian insurers and 15 provident societies were
carrying online insurance business in India. On 19 th January 1956, the management of the
entire life insurance business of 229 Indian insurers and provident insurance societies and
the Indian life insurance business of 16 non-Indian Life insurance companies then
operating in India, was taken over by the central Government and then nationalized on 1 st
September 1956 when the Life Insurance Corporation came into existence.

With largest number of life insurance policies in force in the world, Insurance happens to
be a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent
annually and presently is of the order of Rs 450 billion. Together with banking services,
it adds about 7 per cent to the country’s GDP. Gross premium collection is nearly 2 per
cent of GDP and funds available with LIC for investments are 8 per cent of GDP.
The (non-life) insurance business continued to thrive with the private sector till 1972. Their
operations were restricted to organized trade and industry in large cities. The general insurance
industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated and grouped
into four companies- National Insurance Company, New India Assurance Company, Oriental
Insurance Company and United India Insurance Company. These were subsidiaries of the
General Insurance Company (GIC).

Indian federal government considers insurance as one of major sources of funds for
infrastructure development. The government has identified the following as major thrust areas:

* Timely and reliable statistical data and information about policies and markets to instill a
degree of credibility;
* A code of good practices based on international best practices to raise the standard of Indian
insurance sector;
* Strengthening of supervision and regulation;
* Market participation in decision-making;
* High solvency standard' and Developing alternative channels.

Till end of 1999-2000 fiscal years, two state-run insurance companies, namely, Life Insurance
Corporation (LIC) and General Insurance Corporation (GIC) were the monopoly insurance (both
life and non-life) providers in India. Under GIC there were four subsidiaries-- National Insurance
Company Ltd, Oriental Insurance Company Ltd, New India Assurance Company Ltd, and
United India Assurance Company Ltd. In fiscal 2000-01, the Indian federal government lifted all
entry restrictions for private sector investors. Foreign investment insurance market was also
allowed with 26 percent cap. GIC was converted into India's national reinsure from December,
2000 and all the subsidiaries working under the GIC umbrella were restructured as independent
insurance companies.

Indian Parliament has cleared a Bill on July 30, 2002 de-linking the four subsidiaries from GIC.
A separate Bill has been approved by Parliament to allow brokers, cooperatives and
intermediaries in the sector. Currently insurance companies- both private and public-- have to
cede 20 percent of its reinsurance with GIC. GIC is planning to increase re-insurance premium
by 20 percent which works out at Rs 3000 cr. GIC is actively considering entry into overseas
markets including West Asia, South-east Asia and SAARC region.
The Insurance Regulatory & Development Authority, an autonomous insurance regulator set up in
2000, has extensive powers to oversee the insurance business and regulate in a manner that will
safeguard the interests of the insured. The history of life insurance in India dates back to 1818
when it was conceived as a means to provide for English Widows. Interestingly in those days a
higher premium was charged for Indian lives than the non-Indian lives as Indian lives were
considered more risky for coverage.

The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company
to charge same premium for both Indian and non-Indian lives. The Oriental Assurance Company
was established in 1880. The General insurance business in India, on the other hand, can trace its
roots to the Triton (Title) Insurance Company Limited, the first general insurance company
established in the year 1850 in Calcutta by the British. Till the end of nineteenth century
insurance business was almost entirely in the hands of overseas companies.

Yet, nearly 80 per cent of Indian population is without life insurance cover while
health insurance and non-life insurance continues to be below international standards.
And this part of the population is also subject to weak social security and pension
systems with hardly any old age income security. This itself is an indicator that growth
potential for the insurance sector is immense.

A well-developed and evolved insurance sector is needed for economic

development as it provides long-term funds for infrastructure development and at the
same time strengthens the risk taking ability. It is estimated that over the next ten years
India would require investments of the order of one trillion US dollar. The Insurance
sector, to some extent, can enable investments in infrastructure development to sustain
economic growth of the country.
SWOT ANALYSIS

 Strengths
1. A strong backup by two giant organizations KOTAK MAHINDRA is India’s premier
financial institution. And Life Insurance, which is UK’s largest and world’s second
largest Life Insurance organization.

2. KOTAK MAHINDRA Life offers a wide range of insurance policies covering all types
of income groups.

3. The organization offers maximum number of riders / Add On benefits along with the
insurance policies

4. KOTAK MAHINDRA offers triple cover in case of accidental death in mass surface
public transport.

5. Only KOTAK MAHINDRA Life offers major surgical benefit rider.

 Weaknesses
1. KOTAK MAHINDRA Life does not offer a critical illness rider, i.e. the policy continues
even after claim to the full face amount. This rider is only offered by HDFC Standard
Life Insurance Company.

2. Only Max New York Life offers COMA, Multiple Sclerosis in critical illness rider.

3. LIC charges Re. 1 per thousand for accidental death, disability benefit and waiver of
premium rider, but KOTAK MAHINDRA Life charges Rs. 1.35 per thousand for the
same.

4. KOTAK MAHINDRA Life does not offer competitive group insurance policies.
 Opportunities
 Change in business cycles contributes as an opportunity for the company because it offers
various policies suitable in different economic scenarios.

 Large size of untapped population is also an opportunity for KOTAK MAHINDRA Life.

 Change in life style and perception in favor of Life insurance is another opportunity for
KOTAK MAHINDRA Life.

 Increased awareness among people regarding benefits of life insurance also contributes to
the opportunities of the company.

 Continuous improvement in technology is an opportunity for the organization.

 Threats
1. Reducing interest rates for government securities also poses a threat to the organization.

2. Competition posed by the existing life insurers and new entrants is also a threat to the
company.

.
THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA)

The Malhotra Committee felt the need to provide greater autonomy to insurance companies in
order to improve their performance and enable them to act as independent companies with
economic motives. For this purpose, it had proposed setting up an independent regulatory body-
The Insurance Regulatory and Development Authority. Based on the Malhotra committee report
in April 2000 IRDA was incorporated. Since being set up as an independent statutory body the
IRDA has put in a framework of globally compatible regulations. Section 14 of the IRDA Act
1999, lays the duties, power and functions of the authority .the authority shall have the duty to
regulate, promote and ensure orderly growth of the insurance business and reinsurance business.

Reforms and Implications

The liberalizations 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. The
Insurance Regulatory and Development Authority bill will clear the way for private entry
into insurance, as the government is keen to invite private sector participation into
insurance. To address those concerns, the bill requires direct insurers to have a minimum
paid-up capital of Rest. 1 billion, to invest policyholder’s funds only in India; and to
restrict international companies to a minority equity holding of 26 percent in any new
company. Indian Promoters will also have to dilute their equity holding to 26 percent
over a 10-year period.
Over the past three year, around 30 companies have expressed interest in entering the sector and
many foreign and Indian companies have arranged alliances. Whether the insurer is old or new,
private or public, expanding the market will present challenges. A number of foreign Insurance
Companies have set up representative offices in India and have also tied up with various asset
management companies. Some of the Indian companies, which have tied up with International
partners, are.
 Indian Partners International Partners
Bombay Dyeing General Accident, UK
Tata American Int. Group, US
Dabur Group Liberty Mutual Fund, US
ICICI Prudential, UK
Sundaram Finance Winterthur Insurance, Switzerland
Hindustan Times Commercial Union, UK
Ranbaxy Cigna, US
HDFC Standard Life, UK
CK Birla Group Zurich Insurance, Switzerland
DCM Shriram Royal Sun Alliance, UK
Godrej J Rothschild , UK
M A Chidambaram Met Life
Cholamandalam Guardian Royal Exchange, UK
SK Modi Group Legal and General, Australia
20th Century Finance Canada Life
Alpic Finance Allianz Holding, Germany
Vysya Bank ING
Kotak Mahindra Chubb, US

The likely impact of opening up of India’s insurance sector is that private players may
swamp the market. International insurers often derive a significant part of their
business from multinational operations. Multinational insurers are indeed keenly
interested as; perhaps there home markets are saturated while emerging countries have
low insurance penetration and high growth rates
Type of life insurance policies

Whole life insurance

Whole life is a form of permanent insurance, with guaranteed rates and guaranteed
cash values. It is the least flexible form of permanent insurance.

Universal life insurance

Universal life is similar to whole life, except that you can change the death benefit
(the money paid to the beneficiary when the insured person dies), the amount of
premiums and how often you pay the premiums.

Variable life insurance

Variable life insurance is the riskiest form of permanent insurance, but it can also give
you the best return for your money. Essentially, the life insurance company will invest
your insurance premiums for you. If the investments do well, the death benefit and
cash value of the policy go up. If they do poorly, they go down. It's a little like putting
your savings into the stock market.

Group life insurance

Many companies allow their employees to buy group life insurance through the company.
Usually, you can get very good rates for this insurance but you have to give the insurance
up when you stop working there. For that reason, group insurance can be a good way to
buy a little extra life insurance, but it does not make sense to make it your main policy.
Whole life insurance
Whole life is a form of permanent insurance, with guaranteed rates and guaranteed
cash values. It is the least flexible form of permanent insurance.

Universal life insurance

Universal life is similar to whole life, except that you can change the death benefit
(the money paid to the beneficiary when the insured person dies), the amount of
premiums and how often you pay the premiums.

Variable life insurance

Variable life insurance is the riskiest form of permanent insurance, but it can also give
you the best return for your money. Essentially, the life insurance company will invest
your insurance premiums for you. If the investments do well, the death benefit and
cash value of the policy go up. If they do poorly, they go down. It's a little like putting
your savings into the stock market.

Group life insurance

Many companies allow their employees to buy group life insurance through the company. Usually,
you can get very good rates for this insurance but you have to give the insurance up when you stop
working there. For that reason, group insurance can be a good way to buy a little extra life insurance,
but it does not make sense to make it your main policy.
There are a number of policies for specific insurance needs. Some of these include:

1. Family income life insurance.

This is a decreasing term policy that provides a stated income for a fixed period of time,
if the insured person dies during the term of coverage. These payments continue until the
end of a time period specified when the policy is purchased.

2. Family insurance.
A whole life policy that insures all the members of an immediate family --
husband, wife and children. Usually the coverage is sold in units per person, with
the primary wage-earner insured for the greatest amount.

3. Senior life insurance.

Also known as graded death benefit plans, they provide for a graded amount to be paid to
the beneficiary. For example, in each of the first three to five years after the insured dies,
the death benefit slowly increases. After that period, the entire death benefit is paid to the
beneficiary. This might be appropriate if the beneficiary is not able to handle a large
amount of money soon after the death, but would be in a better position to handle it a few
years later.

4. Juvenile insurance.
This is life insurance on a child. Coverage is paid for by an adult, usually the
parents or guardians. Such policies are not considered traditional life insurance
because the child is not producing an income that needs to be protected. However,
by buying the policy when the child is young, the parents are able to lock in an
extremely low premium rate and allow many more years of tax-deferred cash
value buildup
.

31
 5. Credit life insurance.
This insurance is designed to pay off the balance of a loan if you die before you have
repaid it. Credit life insurance is available for many kinds of loans including student
loans, auto loans, farm equipment loans, furniture and other personal loans including
credit cards. Credit life insurance can be purchased by an individual. Usually it is sold
by financial institutions making loans, like banks, to borrowers at the time they take out
the loan. If a borrower dies, the proceeds of the policy repay the loan directly to the
lender or creditor.

6. Mortgage insurance

This decreasing term coverage is designed to pay off the unpaid balance of a
mortgage if you die before the mortgage is paid off. Premiums are generally level
throughout the term of the policy. The policy is usually independent of the mortgage,
meaning that the financial institution granting the mortgage is separate from the
insurance company issuing the policy. The proceeds of the policy are paid to the
beneficiaries of the policy, not the mortgage company. The beneficiary is not
required to use the proceeds to pay off the mortgage

7. Annuity
An annuity is a form of insurance that enables you to save for your retirement.
Basically, you give the insurance company money for a certain period of time,
and then after you retire they will pay you a certain amount of money every year
until you die. There are many different forms of annuities. . Most people who buy
annuities are 55 or older

The insurance industry in India can broadly classify in two parts. They are.
 1) Life insurance.
2) Non-life (general) insurance.

1) Life insurance:-
Life insurance can be defined as “life insurance provides a sum of money if the person
who is insured dies while the policy is in effect”.
In 1818 British introduced to India, with the establishment of the oriental life insurance
company in Calcutta. The first Indian owned Life Insurance Company; the Bombay mutual life
assurance society was set up in 1870. The life insurance act, 1912 was the first statuary measure
to regulate the life insurance business in India. In 1983, the earlier legislation was consolidated
and amended by the insurance act, 1938, with comprehensive provisions for detailed effective
control over insurance. The union government had opened the insurance sector for private
participation in 1999, also allowing the private
Companies to have foreign equity up to 26%. Following the opening up of the insurance
sector, 12 private sector companies have entered the life insurance business.

Benefits of life insurance:

1. Life insurance encourages saving and forces thrift.
2. It is superior to a traditional savings vehicle.
3. It helps to achieve the purpose of life assured.
4. It can be enchased and facilitates quick borrowing.
5. It provides valuable tax relief.
 PROFILE OF THE ORGANISATIONS:

Kotak Mahindra Life Insurance

 Origin

Kotak Mahindra is one of India's leading financial organizations, offering a wide range of
financial services that encompass every sphere of life. From commercial banking, to stock
broking, to mutual funds, to life insurance, to investment banking, the group caters to the diverse
financial needs of individuals and corporate.

The group has a net worth of over Rs. 6,523 crores and has a distribution network of branches,
franchisees, representative offices and satellite offices across cities and towns in India and
offices in New York, London, San Francisco, Dubai, Mauritius and Singapore. The Group
services around 6.2 million customer accounts.

Brief history:

Kotak Mahindra group, established in 1985 by Uday Kotak, is one of India’s leading financial
services conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group’s
flagship company, received a banking license from the Reserve Bank of India (RBI). With this,
KMFL became the first non-banking finance company in India to be converted into a bank –
Kotak Mahindra Bank Limited (KMBL).

In a study by Brand Finance Banking 500, published in February 2014 by the Banker magazine
(from The Financial Times Stable), KMBL was ranked 245th among the world’s top 500 banks
with brand valuation of around half a billion dollars ($481 million) and brand rating of AA+.
[2] [3]
   KMBL is also ranked among the top 5 Best Ranked Companies for Corporate Governance
in IR Global Ranking.
Old Mutual, a company with 160 years experience in life insurance, is an international financial
services group listed on the London Stock Exchange and included in the FTSE 100 list of
companies, with assets under management worth $ 400 Billion as on 30th June, 2006. For
customers, this joint venture translates into a company that combines international expertise with
the understanding of the local market.
Kotak Mahindra believes in offering its customers a lifetime of value. A commitment that has
made it a leading financial services group with a net worth of over Rs. 3,200 crore, employing
around 10,800 people in its various businesses and has a distribution network of branches,
franchisees, representative offices and satellite offices across 300 cities
and towns in India and offices in New York, London, Dubai, Mauritius and Singapore. The
Group services around 2.6 million customer accounts. Old Mutual plc is an international savings
and wealth management company based in the UK. Originating in
South Africa in 1845, the group has a balanced portfolio of businesses offering asset
management, life assurance, banking and general insurance services in over 40 countries, with a
focus on South Africa, Europe and the United States, and a growing presence in Asia Pacific.
The group aims to provide consistent strong investment performance to customers through
diversified risk exposure and superior returns. By conducting its business worldwide under its
core values of integrity, respect and accountability, Old Mutual aspires to push beyond
boundaries to drive value for all its stakeholders. Old Mutual is the 37th largest company in the
FTSE100 with a market cap of approximately £10 billion and is listed on the London,
Johannesburg and Stockholm stock exchanges. It has 53,000 employees worldwide. For the
quarter ended 31st March 2007, the group reported an increase in adjusted operating profit of 5%
to £398 million (IFRS basis) and had £249 billion of funds under management. For customers,
this joint venture translates into a company that combines international expertise with the
Understanding of the local market.
COMPETITORS:

Life Insurance Corporation of India was formed in September 1956 by passing LIC
Act, 1956 in Indian parliament. On the nationalization of the life insurance in 1956,
the premium rating of Oriental Government security life Assurance company were
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
anticipation of economies of scale that would emerge on the merger of different
insurers in a single entity.

Life Insurance Corporation Of India - there are many things to consider as Life Insurance
Corporation of India offers various insurance products which are very complex, but underlying
this complexity is a simple fact. The building blocks for all Life Insurance Corporation of India
are (1) investment return; (2) mortality experience; and (3) expense management; for your Life
Insurance Corporation Of India Kotak Mahindra Old Mutual Life Insurance is a 74:26 joint
venture between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Mahindra Old Mutual
Life Insurance is one of the fastest growing insurance companies in India and has shown.
Objectives of LIC
• Spread Life Insurance much more widely and in particular to the rural areas and
to the socially and economically backward classes with a view to reaching all
insurable persons in the country and providing them adequate financial cover
against death at a reasonable cost.
• Maximize mobilization of people's savings by making insurance-linked savings
adequately attractive.
• Bear in mind, in the investment of funds, the primary obligation to its
policyholders, whose money it holds in trust, without losing sight of the interest
of the community as a whole; the funds to be deployed to the best advantage of
the investors as well as the community as a whole, keeping in view national
priorities and obligations of attractive return.
• Conduct business with utmost economy and with the full realization that the
moneys belong to the policyholders.
• Act as trustees of the insured public in their individual and collective capacities.

• Meet the various life insurance needs of the community that would arise in the
changing social and economic environment.
• Involve all people working in the Corporation to the best of their capability in
furthering the interests of the insured public by providing efficient service with
courtesy.
Promote amongst all agents and employees of the Corporation a sense of participation,
pride and job satisfaction through discharge of their duties with dedication towards
achievement of Corporate Objective
VISION
"A trans-nationally competitive financial conglomerate of significance to societies and
Pride of India “

MISSION
"Explore and enhance the quality of life of people through financial security by providing
products and services of aspired attributes with competitive returns, and by rendering
resources for economic development”

Various policies offered by life insurance corporation of India are

1) Whole Life Schemes
• Whole life with profit
• Limited payment whole life
• Single Premium whole life
• Convertible whole life plan
2) Endowment Schemes
• Endowment plan with profit
• Limited payment Endowment
• Jeevan Mitra (Double Cover)
• Jeevan Mitra (Triple cover)
• Bhavishya Jeevan
• Jeevan Anand
• New Jana Raksha

3) Term Assurance Plan

• Anmol Jeevan
• 2 Year Term Assurance
• Covertible Term
• New Bima Kiran
4) Plan for needs of Children
• Komal Jeevan
• Jeevan Sukanya
• Jeevan Kishore
• Jeevan Balya
• Jeevan Chaya
• Marriage/educational annuity
• Deffered Endowment

5) Periodic Money Back Plan

• Jeevan Samridhi
• Jeevan Rekha Plan
• Money Back Plan
• Jeevan Surabhi
• Jeevan bharathi

6) Medical benefits linked insurance

• Asha Deep II
• Jeevan Asha II

7) For benefits to Handicapped

• Jeevan Aadhar
• Jeevan Vishwas

8) Plans to cover housing loans

• Mortagage redemption
9) Joint life plan
• Jeevan sathi
10) Investment plan
• Bima Nivesh Triple cover
11) Capital market linked plan
• Bima plus.

Description of the LIC Policies

Whole life plan:
Whole life plan are those policies which life assured has to pay premiums till his
death the sum assured will be paid to his dependent generally 70 years is assumed as
a maximum age for payment of premium.
Under the whole life premium are payable throughout the life time of the life assured
and this is the cheapest form of policy.
This plan is ideally suited to person who wants maximum provision for his family at
minimum cost. It also meets the needs for funds required for funeral, religious rites
and ceremonies to be performed, tax liabilities if any and expenses connected with the
last sickness and hospital charges etc.

Endowment Assured Plan:

Endowment plans are not covering the risk for whole life of the life assured. The term
of risk cover under this plan is as per the need of life assured. Endowment assurance
plan are the most popular. They are eminently
Suited to meet it one policy the twin demands of old age provision and risk cover for
family. The sum assured is payable on maturity or at death if earlier. Thus an
Endowment Assurance Policy provides for retirement and also serves as a means of
family provisions.

Term Assurance
Under the term assurance the risk cover is generally for specific short term. Such term
assurance is maximum for 2 years. Generally this type of assurance is useful for air
traveling.
Money Back Plans
Under this plan specific percentage of sum assured will be backed to the life assured after
specific period of time. This plan is of special interest to person who besides desiring to
provide for their own old age and family feels the need for lump sum benefits at
periodical intervals. Under these policies part of the sum assured is paid to the life
assured in installments at selected intervals.
Children Plan
Under the children plans the risk on the life of the children where covered generally this
type of plans are helpful in education and marriage of the children.
Jeevan Balya:
This plan is designed to enable a parent to provide for the child by payment of a very
low premium an Endowment Assurance Policy, the risk under which will commence
from the vesting date. In addition, Premium benefit and income benefit are included
as additional benefit by payment of appropriate additional premium during the
deferment period.
This policy shall be cancelled in case the life assured shall die before the deferred
dates and in such an event provided the policy is then in full force in for a reduced
cash option.
Marriage Endowment/ educational annual plan
Every father desires to see that his children are well settled in life through sound education,
leading to good jobs and happy marriage. These needs arise at ages which can be
approximately anticipated. Say when the children are between 18 to 25 year of age. This plan
provides for a sum assured to keep aside to meet marriage educational expenses of children.
Under this plan the S A along with the vested bonus shall be payable at the end of the
selected term either is lump sum or in ten half yearly installment, at the option of the life
assured nominee beneficiary.
Jeevan Mitra
This plan provides additional insurance cover equal to the sum assured in the even of
death during the term of policy so that the total insurance cover in the event of death
is twice the basic sum assured. i.e. The basic sum assured is doubled and the accrued
bonus is also paid.
ING VYSYA LIFE INSURANCE

ING Vysya Life Insurance Company Private Limited entered the private life insurance
industry in India in September 2001, and in a short span of 18 months has established
itself as a distinctive life insurance brand with an innovative, attractive and customer
friendly product portfolio and a professional advisor force. It also distributes products
in close cooperation with its sister company ING Vysya Bank through Bank assurance.
Currently, it has over 3000 advisors working from 22 locations across the country and
over 300 employees.
ING Vysya Life Insurance Company is headquartered at Bangalore and has established a
strong presence in the cities of Delhi, Mumbai, Kolkata, Hyderabad and Chennai. In
addition ING Vysya Life operates in Vizag, Vijaywada, Mangalore, Mysore, Pune, Nagpur,
Chandigarh, Ludhiana and Jaipur.
ING Vysya Life has pioneered product innovations in the Indian life insurance market with
customer-oriented cash bonus endowment and money back products. (Reassuring Life and
Maximising Life), the first anticipated whole life product (Fulfilling Life) and the first
Term/Critical Illness combination product (Conquering Life). Conquering Life is an
innovative term and critical illness product that has been launched recently. Conquering Life
provides affordable term cover and critical illness coverage for 10 critical illnesses of upto
50% of the Sum Assured. ING Vysya Life declared a bonus in September 2002 of 5% (cash
bonus - payable immediately) and 4% (reversionary bonus - payable at the end of the term).
The company has over 25,000 customers at the end of 2002 and has achieved a first
premium income of Rs. 17 crores in 2002.
ING Vysya Life Insurance is a joint venture between ING Insurance International BV a
part of ING Group, the world's largest life insurance company (Fortune Global 500,
2002), ING Vysya Bank, with 1.5 million customers and over 400 outlets and GMR
Technologies and Industries Limited, part of GMR Group also based in Bangalore and
involved in the field of power generation, infrastructural development and several other
businesses.
ING Vysya Life has a paid up capital of Rs.140 crores and an authorised capital of Rs.
200 crores.
Life insurance products offered by the company are:
1) Protection plan
• Critical illness plan
• Endowment plan
2) Savings plan
• Endowment plan
• Child protection plan
• Money back plan
3) Investment Plan

• Whole life plan

• Limited payment endowment plan

• Anticipated whole life plan

 TATA-AIG Life Insurance

Tata-AIG Life Insurance Company is a joint venture between the Tata Group and American
International Group Inc (AIG), the leading US-based international insurance and financial
services organization and the largest underwriter of commercial and industrial insurance in
America. Its member companies write a wide range of commercial, personal and life
insurance products through a variety of distribution channels in approximately 130 countries
and jurisdictions throughout the world. AIG’s global businesses also include financial
services and asset management, including aircraft leasing, financial products, trading and
market making, consumer finance, institutional, retail and direct investment fund asset
management, real estate investment management, and retirement savings products. TATA
holds 76% shares and AIG holds 24% shares in the total share capital of TATA AIG.

Tata AIG Life Insurance Company Ltd. "Tata AIG Life" offers a broad array of life insurance
products to individuals, associations and businesses of all sizes, with a wide variety of additional
coverage to ensure our customers can find an insurance product to meet their needs. Tata-AIG Life
Insurance and Tata-AIG General Insurance, both joint ventures between the Tata Group and
American International Group (AIG), provide life and general insurance policies and solutions to
th
companies, institutions and organizations across India. It is licensed to operation on 12 February
2001. TATA-AIG life is spread over28 branch offices and 39 training offices across the country.
Tata-AIG Life offers a broad array of life insurance products and solutions to
corporate and other organizations. These products and solutions have various value-added
benefits and options that deliver flexibility and choice to the company's clients. Tata AIG
Life has completed its 4th year of operations and registered a Total Premium of Rs. 497
Crores for the period April 2004 - March 2005.
 The company has some 20 life insurance products with over 250 product combinations, including
endowment to term, pension to group life and credit life, money back to whole life plans, etc. Tata-
AIG Life uses different distribution channels, including direct marketing, brokerage and banc
assurance, to service client groups in 19 Indian cities.

Tata-AIG Life is the first private insurer in India to offer group retirement
schemes. Additionally, the company's group management division focuses on
providing employee benefit solutions.

PRODUCTS

The product range of TATA-AIG Life is wide-spread across different segments.

Some of the products are mentioned below.

Maha life

Invest Assure
Health Protector
Star Kid

Shubh Life
Nirvana
Nirvana Plus

Money Saver Plan

Health First
Assure Golden Life

Assure 10, 20, 30 years – Security and Growth

Assure Educate at 18, 21

Assure Career Builder Plan at 27

Assure Golden Years Plan
Assure 21 Money Saver Plan

Assure 1/5/10/15/20/25 years/ to age

lifelines TROP
HDFC STANDARD LIFE INSURANCE
The Partnership:

HDFC and Standard Life first came together for a possible joint venture, to enter the Life
Insurance market, in January 1995. It was clear from the outset that both companies
shared similar values and beliefs and a strong relationship quickly formed. In October
1995 the companies signed a 3 year joint venture agreement.
Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the
relationship.
The next three years were filled with uncertainty, due to changes in government and
ongoing delays in getting the IRDA (Insurance Regulatory and Development authority)
Act passed in parliament. Despite this both companies remained firmly committed to the
venture.
In October 1998, the joint venture agreement was renewed and additional resource made available.
Around this time Standard Life purchased 2% of Infrastructure Development Finance Company Ltd.
(IDFC). Standard Life also started to use the services of the HDFC Treasury department to advise
them upon their investments in India.

Towards the end of 1999, the opening of the market looked very promising and both
companies agreed the time was right to move the operation to the next level. Therefore,
in January 2000 an expert team from the UK joined a hand picked team from HDFC to
form the core project team, based in Mumbai.
Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in
HDFC Bank.
In a further development Standard Life agreed to participate in the Asset Management
Company promoted by HDFC to enter the mutual fund market. The Mutual Fund was
launched on 20th July 2000
Incorporation of HDFC Standard Life Insurance Company Limited:
The company was incorporated on 14th August 2000 under the name of HDFC Standard
Life Insurance Company Limited. Companies ambition from as far back as October 1995,
was to be the first private company to re-enter the life insurance market in India. On the
23rd of October 2000, this ambition was realized when HDFC Standard Life was the only
life company to be granted a certificate of registration. HDFC are the main shareholders
in HDFC Standard Life, with 81.4%, while Standard Life owns 18.6%. Given Standard
Life's existing investment in the HDFC Group, this is the maximum investment allowed
under current regulations. HDFC and Standard Life have a long and close relationship
built upon shared values and trust. The ambition of HDFC Standard Life is to mirror the
success of the parent companies and be the yardstick by which all other insurance
company's in India are measured.
Products offered by the company are:
INDIVIDUAL PLAN
• With Profit Endowment Assurance
• With Profits Money Back
• Single Premium Whole of Life
• Term assurance Plan
• Loan Cover Term Assurance
• Personal Pension Plan
• Children’s Plan

• Group Term Insurance

• Development Insurance Plan
 ICICI PRUDENTIAL LIFE INSURANCE COMPANY

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse, and prudential plc, a leading international financial services group
headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector
insurance companies to begin operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA).

ICICI Prudential’s equity base stands at Rs. 925 crore with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. In the quarter ended June 30,
2005 , the company garnered Rs 335 crore of new business premium for a total sum
assured of Rs 2,619 crore and wrote 111,522 policies. For the past four years, ICICI
Prudential has retained its position as the No. 1 private life insurer in the country, with a
wide range of flexible products that meet the needs of the Indian customer at every step
in life.

Products offered by ICICI Prudential are

Savings PlaN

Protection plan

Life Guard
Extra Protection Through

Riders

Retirement Plans

Forever Life

Life link pension

Life time pension

Reassure

Investment Plans

Assure Invest

Life Link

Group plans

Group Superannuation

Group Gratuity

Group Term Assurance

 OM KOTAK MAHINDRA LIFE INSURANCE COMPANY

Established in 1985 as Kotak Capital Management Finance promoted by Uday Kotak

the company has come a long way since its entry into corporate finance. It has dabbled in
leasing, auto finance, hire purchase, investment banking, consumer finance, broking etc. The
company got its name Kotak Mahindra as industrialists Harish Mahindra and Anand
Mahindra picked a stake in the company. Kotak Mahindra is today one of India's leading
Financial Institutions

Old Mutual plc is an international financial services group based in London with
expanding operations in life assurance, asset management, banking and general
insurance. Old Mutual is listed on the London Stock Exchange (where it is included on
the FTSE 100 Index) and also on the South African, Namibian, Malawi and Zimbabwe
stock exchanges. It has 156 years of experience in the life insurance business. The
Products offered by the Company are

Individual Plan

• Kotak Endowment Plan

• Kotak Term Plan

• Kotak Retirement Income Plan

• Kotak Child Advantage Plan

• Kotak Preferred Term Plan

• Kotak Capital Multiplier Plan

• Kotak Safe Investment Plan

• Riders

• Exclusions Under Riders

Group Plan

Kotak Term Group plan

Kotak Gratuity Group plan

Kotak Credit Term Group plan

Riders

Exclusions Under Riders

Rural

Kotak Gramina Bima Yojana

MET LIFE INSURANCE COMPANY
MetLife
For almost 137 years, Metropolitan Life Insurance Company has been insuring the lives
of the people who depend on them. Their success is based on their long history of social
responsibility, strong leadership, sound investments, and innovative products and
services.
MetLife Begins
The origins of Metropolitan Life Insurance Company (MetLife) go back to 1863, when a
group of New York City businessmen raised $100,000 to found the National Union Life
and
Helping and Healing People
In 1909, MetLife Vice President Haley Fiske announced that "insurance, not merely as a
business proposition, but as a social program" would be the future policy of the company
Supporting Country and Community
Over the years, MetLife has made a difference by supporting urban renewal projects and
community financing. The company's social commitment and its commitment to the
security of its policyholders have proven to be good business.
MetLife Today In 2001 MetLife was the first insurance company to establish a financial
holding company with a nationally chartered bank.

Products Offered by the company are

1) Whole Life
• Met 100 Non par
• Met 100 Gold par
• Met 100 Platinum par
2) Endowment
• Met Gold par
• Met Platinum par
• Met Junior par
• Met junior Non par

3) Money Back
• Met Sukh
• Met Junior MB
4) Term
• Met Mortagage Protector
• Met Riders
• Accidental death
BIRLA SUN LIFE INSURANCE COMANY LIMITED

Birla Sun Life Financial Services offers a range of financial services for resident Indians and
Non Resident Indians. Brought together by two large, powerful and reputed business houses,
the Aditya Birla Group and Sun Life Financial , it is our aim to offer diverse and top quality
financial services to customers. The Mutual Fund and Insurance companies provide wealth
management and protection products to customers while the Distribution and Securities
companies provide brokerage and trading services for investment in equities, debt securities,
fixed deposits, etc.
Insurance is not about something going wrong. It's often about things going right. One of the wonders of
human nature is that we never believe anything can actually go wrong. Surely, life has its share of ifs. At
Birla Sun Life however, they believe it has its equally pleasant share of buts as well. Birla Sun Life stand
committed to help you realize those happy moments which make a life. Be it living the same lifestyle in
your post retirement days or providing a secure future for your loved ones, in case something happens to
you.
The life insurance products offered by the company are
Individual life
• Premium Back Term Plan
• Flexi Secure Life Retirement Plan
• Single Premium Bond
• Birla Sun Life Term Plan
• Flexi Life Line Whole Life Plan
• Flexi Cash Flow Money back Plan

• Pro Group Term Insurance

• Group Superannuation Plan
• Group Gratuity Plan
MAX NEW YORK LIFE INSURANCE COMPANY LTD.

Max New York Life today emerged as the country's leading private life insurance company
having recorded a sum assured of over Rs 2100 crore for the year ending March 31, 2002.
This was the first full year of operations for Max New York Life.

The company has sold over 64,000 policies in the last financial year. The total annualized first year
premium for the financial year was over Rs 43 crore with the First Year Premium Income amounting
to over Rs 38 crore. This has exceeded the expectations of the company and the projections as
submitted to IRDA. Over 70 per cent of the premia income was from protection-oriented Whole Life
Policies, which reinforces the company's focus on providing the true value of life insurance to the
customer

Given the better-than-expected performance of the company, the shareholders have

increased their investment in the company to Rs 250 crore with an authorized share
capital to Rs 300 crore making Max New York Life Insurance Company among the
highest capitalized life insurance companies in India
Max New York Life also met its commitment for the rural and social sectors.

The company has 11 offices, over 1900 Agent Advisors and over 490 employees. Max New York
Life believes in delivering top value to all its stakeholders. As part of the best practices adopted, the
Company instituted satisfaction survey's conducted by independent agencies to measure the
satisfaction levels of its customers, agents and employees. Max New York Life has clearly emerged
as delivering top value across all these stakeholders

Max New York Life offers a suite of flexible products. It has eight base products and
nine options & riders that can be customized to over 250 combinations enabling
customers to choose the policy that best fits their need
The products are –
Whole Life Participating d Convertible
Whole Life-Non-Participating,
Children Endowment at age 18,
Children Endowment at age 24,
20-year Endowment Participating Policy,
Endowment to age 60,
Five-year Term Renewable an,
Easy Term
BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED

Bajaj Allianz life Insurance Company Limited is a joint venture between Bajaj Auto
Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and
strength. Bajaj Allianz General Insurance received the Insurance Regulatory and
Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to
conduct General Insurance business (including Health Insurance business) in India. The
Company has an authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74% and
Allianz, AG, holds the remaining 26% Germany.

In its first year of operations, the company has acquired the No. 1 status among the private
non-life insurers. As on 31st March 2003, Bajaj Allianz General Insurance maintained its
leadership position by garnering a premium income of Rs.300 Crores.

Bajaj Allianz also became one of the few companies to make a profit in its first full year
of operations. Bajaj Allianz made a profit after tax of Rs.9.6 crores

Bajaj Allianz today has a network of 42 offices spread across the length and breadth
of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are
interconnected with the Head Office at Pune.

In the first half of the current financial year, 2004-05, Bajaj Allianz garnered a
premium income of Rs. 405 crores, achieving a growth of 84% and registered a 52%
growth in Net profits of Rs.20 Crores over the last year for the same period. In the financial
year 2003-04, the premium earned was Rs.480 Crores, which is a jump of 60% and the
profit zoomed by 125% to Rs. 21.6 Crores
 CHAPTER III
ANALYSIS AND INTERPRETATION OF DATA
 INTRODUCTION TO ANALYSIS:

In order to extract meaningful information from the data them. The analysis can be
conducted by using simple statistical tools like percentages, averages and measures of
dispersion. Alternatively the collected data may be analyzed, the data analysis is carried out.
The data are first edited, coded and tabulated for analyzing by using diagrams, graphs,
charts, pictures etc. Data analysis is the process of planning the data in an ordered form,
combining them with the existing information and extracting from them.

Interpretation is the process of drawing conclusions from the gathered data in the study. In
this research the researcher has analyzed the data using percentages and graphs.

4.2 DATA ANALYSIS TOOLS USED:

In this research the data analysis tools used are percentages and graphs. The various attributes
were analyzed separately and the importance to each was calculated on the basis of the
percentage. The rank having the maximum percentage was taken to be preferred importance to
the particular attribute.

After looking at each attribute separately, all the attributes were considered together to
develop a map on the most preferred rank for all the attributes.
 TABLE 1

AGE OF RESPONDENTS

SL.NO AGE IN YEARS NUMBER PERCENTAGE

OF OF
RESPONDENTS RESPONDENTS

1. 19 – 28 24 48 %

2. 29 – 38 13 26 %

3. 39 – 48 6 12 %

4. 49 – 58 6 12 %

5. 59 – 68 0 0%

6. 69 – 78 1 2%

TOTAL 50 100 %

SOURCE :- SURVEY DATA

INFERENCE: The above table classified the respondents according to their age group.

The majority of the respondents belong to the age group 19 to 28 years with 48% and the

second age group is 29 to 38 years with 26%, followed by 39 to 48 years and 49 to 58

years with 12% each.

 GRAPH 1

AGE OF RESPONDENTS

60%

50% 48%

40%

30% 26%

20%
12% 12%
10%
2%
0%
0%
19 - 28 29 - 38 39 - 48 49 - 58 59 - 68 69 - 78
YRS YRS YRS YRS YRS YRS
 TABLE 2

DIFFERENCIATION OF THE RESPONDENTS INTO MALE AND FEMALE

TYPES OF NUMBER OF PERCENTAGE OF

RESPONDENTS RESPONDENTS RESPONDENTS

MALE RESPONDENTS 34 68%

FEMALE 16 32%
RESPONDENTS

TOTAL 50 100 %

SOURCE: - SURVEY DATA

INFERENCE: This table helps us to understand that there are more number of

male consumers with 68% market share than the female consumers with 32%

Market share.
 GRAPH 2

DIFFERENCIATION OF THE RESPONDENTS INTO MALE AND FEMALE

80%

68%
70%

60%

50%

40%
32%
30%

20%

10%

0%

M Fem
 TABLE 3

DIFFERENCIATION OF RESPONDENTS BASED ON THEIR OCCUPATION

SL.NO OCCUPATION NUMBER OF PERCENTAGE

RESPONDENTS OF
RESPONDENTS

1. STUDENTS 2 4%

2. GOVERNMENT 20 40 %
EMPLOYEES

3. PRIVATE 24 48 %
EMPLOYEES

4. HOUSE WIVES 2 4%

5. RETIRED 2 4%
PERSONS

TOTAL 50 100 %

SOURCE :- SURVEY DATA

INFERENCE: It could be inferred that majority of consumers of life insurance policies

are private employees with 48% and Government employees with 40%, followed by

students, house wives and retired persons with 4 % each.

 GRAPH 3

DIFFERENCIATION OF RESPONDENTS BASED ON THEIR OCCUPATION

60%

48%
50%

40%
40%

30%

20%

10%
4% 4% 4%

0%

(S) (G) (P) (h) (R)

 TABLE 4

TABLE SHOWING INCOME GROUP OF RESPONDENTS

SL.NO INCOME NUMBER OF PERCENTAGE

GROUP RESPONDENTS OF
RESPONDENTS

1. LESS THAN 5 10 %
5000

2. 5001 – 10,000 16 32 %

3. 10001 – 15000 17 34 %

4. 15001 – 20000 8 16 %

5. 20001 – 25000 2 4%

6. GREATER 1 2%
THAN 30000

7. NIL 1 2%

TOTAL 50 100 %

SOURCE: - SURVEY DATA

INFERENCE: The majority of dominant income group having life insurance policies

belong to the income group of 10,001 to 15,000, which is middle class group. Followed

by the income group of 5,001 to 10,000.

 GRAPH 4

GRAPH SHOWING INCOME GROUP OF RESPONDENTS

40%

35%

30%

25%

20%

15%

10%

5%

0%
<5000 5001 - 10001 - 15001 - 20001 - >25000 NIL 1000 15000
20000 25000
 TABLE 5

DIFFERENCIATION OF RESPONDENTS ACCORDING TO THE ASSETS

OWNED

SL.NO ASSETS NUMBER OF PERCENTAGE OF

RESPONDENTS RESPONDENTS

1. HOUSE 19 38 %

2. TWO 25 50 %
WHEELER

3. CAR 6 12 %

TOTAL 50 100 %

SOURCE: - SURVEY DATA

INFERENCE: This table helps us to know that most of consumers with life insurance

policies own two wheelers with 50%, 38% of consumers own house and12% of the

consumers own car.

 GRAPH 5

DIFFERENCIATION OF RESPONDENTS ACCORDING TO THE ASSETS

OWNED

60%

50%
50%

40% 38%

30%

20%

12%
10%

0%
HOUSE TWO CAR
WHEELER
 TABLE 6

MARKET SHARE OF DIFFERENT LIFE INSURANCE COMPANIES

COMPANIES NUMBER OF PERCENTAGE OF

RESPONDENTS RESPONDENTS

LIC 39 78 %

TATA AIG 1 2%

HDFC 3 6%

ICICI 4 8%

MAX NEWYORK 1 2%

KOTAK MAHINDRA 1 2%

ALLIANCE BAJAJ 1 2%

SOURCE: - SURVEY DATA

INFERENCE: This table helps us to understand the market share of different life insurance

companies. LIC has a major share of 78 %, followed by ICICI Prudential with 8% market

share, followed by HDFC Standard Life with 6% market share.

 GRAPH 6

MARKET SHARE OF DIFFERENT LIFE INSURANCE COMPANIES

90%
78%
80%

70%

60%

50%

40%

30%

20%
10% 6% 8%
2% 2% 2% 2%
0% I

LIC TATA AIG HDFC ICICI MAX KOTAK BAJAJ

 TABLE 7

TABLE SHOWING ATTRIBUTES FROM RESPONDENTS

SL.NO ATTRIBUTE RESPONDENTS RANK

1. RETURN ON 17 1
INVESTMENT

2. COMPANY 13 2
REPUTATION

3. PREMIUM 10 3
OUTFLOW

4. SERVICE 7 4
QUALITY

5. PRODUCT 3 5
QUALITY

SOURCE :- SURVEY DATA

INFERENCE: This table shows the strengths and weaknesses of the company, and what

are the important criteria or attributes on which decision making is done. From this table

we can infer that consumers give more importance for Return on investment, secondly

they prefer company reputation, and then premium outflow followed by service quality

and product quality.

 GRAPH 7

GRAPH SHOWING ATTRIBUTES FROM RESPONDENTS

18 17

16

14 13

12
10
10

8 7

4 3

0
ROI Co. Repo Premium SQ PQ
 TABLE 8

FACTORS WHICH INFLUENCED TO SELECT LIFE INSURANCE COMPANY

SL.NO FACTORS RESPONDENTS RANK

1. PERSONAL INTEREST 25 1

2. FAMILY 11 2

3. FRIENDS 6 3

4. AGENTS 5 4

5. ADVERTISEMENT 2 5

6. OTHERS 1 6

SOURCE :- SURVEY DATA

INFERENCE: This table is helpful in knowing which media is best suitable for

promoting a life insurance company. It can be seen that personal factor influences a

consumers to select a life insurance company, followed by family, friends , agents and

advertisements.
 GRAPH 8

FACTORS WHICH INFLUENCED TO SELECT A LIFE INSURANCE

COMPANY

30

25
25

20

15

11

10

6
5
5
2
1

0
(Personal) (Family) (Friends) (Agent) (Advt) (Others)
 TABLE 9

VALUE OF RESPONDENTS LIFE INSURANCE POLICY

SL.NO AMOUNT NUMBER OF PERCENTAGE OF

RESPONDENTS RESPONDENTS

1. < 10000 0 0%

2. 10000 – 25000 5 10 %

3. 25000 – 50000 8 16 %

4. 50000-100000 15 30 %

5. > 100000 22 44 %

SOURCE :- SURVEY DATA

INFERENCE: It can be inferred that majority of consumers buy the life insurance policy

which costs more than Rs. 1,00,000 followed by Rs. 50,000 to Rs.1,00,000, followed by

Rs. 25,000 to Rs. 50,000.

 GRAPH 9

VALUE OF RESPONDENTS LIFE INSURANCE POLICY

50%
44%
45%

40%

35%
30%
30%
25%
20%
16%

15%
10%
10%
5%
0%
0%
> 10000 10000 - 25000 50000> 100000-25000 50000 -100000
 TABLE 10

RESPONDENTS PREFERENCE TO INVEST THEIR MONEY

NUMBER OF PERCENTAGE OF
RESPONDENTS RESPONDENTS

INSURANCE 24 48 %
COMPANY

BANK 26 52 %

TOTAL 50 100 %

SOURCE :- SURVEY DATA

INFERENCE: From the table it is clear that majority of people (52%) prefer to invest in

Bank and others (48%) prefer to invest in Insurance companies.

 GRAPH 10

RESPONDENTS PREFERENCE TO INVEST THEIR MONEY

53%

52%
52%

51%

50%

49%

48%
48%

47%

46%
INSURACE BANK
COMPANY
 TABLE 11

SATISFACTION OF RESPONDENTS WITH CURRENT LIFE INSURANCE

COMPANY

RESPONSE NUMBER OF PERCENTAGE OF

RESPONDENTS RESPONDENTS

YES 47 94 %

NO 3 6%

TOTAL 50 100 %

SOURCE :- SURVEY DATA

INFERENCE: From this table it could be inferred that 94% of the consumers are satisfied

with the service and quality of products of their life insurance companies. Only 6% of

consumers are not satisfied.

 GRAPH 11

SATISFACTION OF RESPONDENTS WITH CURRENT LIFE INSURANCE

COMPANY

100% 94%
90%

80%

70%

60%

50%

40%

30%

20%

6%
10%
0%
YES NO
 TABLE 12

RATINGS OF THE SERVICES OFFERED BY THE RESPONDENT’S LIFE

INSURANCE COMPANY

RATINGS NUMBER OF PERCENTAGE OF

RESPONDENTS RESPONDENTS

EXCELLENT 7 14 %

VERY GOOD 12 24 %

GOOD 20 40 %

AVERAGE 11 22 %

POOR 0 0%

TOTAL 50 100 %

SOURCE: - SURVEY DATA

INFERENCE: From this table it could be inferred that 40% of the consumers have rated

service offered as good, 24% of them have rated them as very good, 22% of them have

rated as average and 14% of them have rated as excellent.

 GRAPH 12

RATINGS OF THE SERVICES OFFERED BY THE RESPONDENT’S LIFE

INSURANCE COMPANY

45%
40%
40%
35%
30%
24%
25% 22%
20%
14%
15%
10%
5%
0%
0%
Excellent Very good Good Average Poor
 TABLE 13

CONSUMERS WILLINGNESS TO COMMUNICATE THE SERVICE OFFERED

BY THEIR LIFE INSURANCE COMPANY

RESPONSES NUMBER OF PERCENTAGE OF

RESPONDENTS RESPONDENTS

YES 39 78 %

NO 11 22 %

TOTAL 50 100 %

SOURCE :- SURVEY DATA

INFERENCE: From this table it can be noted that the majority of consumers (78%) would like to

communicate to others about the service offered by life insurance companies and 22% of

consumers would not like to communicate the service offered.

 GRAPH 13

CONSUMERS WILLINGNESS TO COMMUNICATE THE SERVICE OFFERED

BY THEIR LIFE INSURANCE COMPANY

90%
78%
80%
70%
60%
50%
40%
30% 22%
20%
10%
0%
YES NO
 TABLE 14

NUMBER OF LIFE INSURANCE COMPANY KNOWN BY RESPONDENTS

NUMBER OF LIFE NUMBER OF PERCENTAGE OF

INSURANCE RESPONDENTS RESPONDENTS
COMPANY KNOWN

<5 18 36 %

5–7 29 58 %

8 – 10 2 4%

>10 1 2%

TOTAL 50 100 %

SOURCE :- SURVEY DATA

INFERENCE: This table helps us to know the consumer awareness about the life insurance

companies. 58% of the consumers are aware about 5 to 7 life insurance companies, followed by

36% consumers who know less than 5 life insurance companies.

 GRAPH 14

NUMBER OF LIFE INSURANCE COMPANY KNOWN BY RESPONDENTS

70%

60% 58%

50%

40% 36%

30%

20%

10%
4%
2%
0%
<5 5 TO 7 8 to 10 > 10
 TABLE 15

SCORES OF DIFFERENT LIFE INSURANCE COMPANIES

COMPANIES SCORES RANK

LIC 345 1

ICICI PRUDENTIAL 211 2

HDFC 194 3

TATA AIG 123 4

ING VYSYA 121 5

BIRLA SUNLIFE 118 6

MET LIFE 90 7

OTHERS 41 8

SOURCE:- SURVEY DATA

INFERENCE: From the table we can rank the life insurance companies, LIC stands first,

followed by ICICI Prudential followed by HDFC Standard life, followed by TATA AIG.
 GRAPH 15

SCORES OF DIFFERENT LIFE INSURANCE COMPANIES

9
8
8
7
7
6
6
5
5
4
4
3
3
2
2
1
1

0
LIC ICICI HDFC TATA ING BIRLA MET life Others
 CHAPTER-IV
CONCLUSION AND RECOMMENDATION
 CONCLUSION

An Insurance policy is an investment oriented plan. As compared to other investment

plans, the investment portfolio of the Insurance Policy functions like a mutual fund and

other investment. It is invested in a portfolio of debt and equity instruments, in

conformity with the announced investment policy. Hence it grows or erodes in line with

the performance of that portfolio.

From this study it reveals that the consumer’s attitude towards Insurance Policy and

Insurance Company changed a lot. A 5 years before the consumers and the general public

were not interested to take an Insurance Policy but now days there are many options and

choices in front of the customers. They are interested to take high return policies in order

to secure their lives. People are aware of all the benefits and returns of insurance policies.

As a result of this new international and domestic companies are coming to the Indian

Market.

Since there are many players in the Indian Insurance Market the competition level is very

high. So the companies are introducing new schemes. From this it is found that The LIC is

the major market share holder in the insurance field. Even if there are many players in this

field still it is an untapped market. Only a few portion of Indian population is insured.

RECOMMENDATIONS :
With regard to insurance companies, consumers respond at different rates, depending on the

consumers characteristics. Hence Insurance companies should try to bring their new

product to the attention of potential early adopters.

 Due to the intense competition in the life insurance market, the life

insurance companies have to adopt better strategies to attract more customers.

 Keeping the cost, quality and return on investment in tact is necessary in order to

tackle the competition.

 Life insurance products are taken mainly by middle and higher income group.

 Hence they should be regarded as maim targeted income groups. Life insurance

products which are suitable for lower income group should also be released so that the

market share increases

 Return on investment, company reputation and premium outflow are most preferred

attributes that are expected by the respondents. Hence greater focus should be given

to these attributes.
Suggestion:
The majority of respondents belonged to the age group of 19 to 28 years which formed
48% followed by age group of 29 to 38 years which formed 26%.

The male consumers capture the Market share with 68%, followed by the female consumers
with 32%.

The majority of the consumers of life insurance companies are private employees with 48% and
Government employees with 40%

The dominant income group having life insurance group belong to the group of 10001 to
15,000 followed by 5,001 to 10,000.

LIC has a major market share of 78%.

The factors which influenced to select a life insurance company is the personal factor,
followed by family, friends, agents and advertisements.
The value of respondents life insurance policy costs more than 1, 00,000 followed
by 50,000 to 1,00,000.

Majority of the people (52%) prefer to invest in bank others (48%) prefer to invest in
insurance company.

Majority of consumers are satisfied with the service and quality of products of their life
insurance companies.
Majority of consumers (78%) would like to communicate the service offered by life
insurance companies.
Majority of consumers (58%) are aware about 5 to 7 life insurance companies.
LIC stands first followed by ICICI prudential, followed by HDFC Standard Life.