Asian Journal of Managerial Science

ISSN: 2249-6300 (P) Vol.6 No.2, 2017, pp.67-70

© The Research Publication, www.trp.org.in
DOI: https://doi.org/10.51983/ajms-2017.6.2.1249

Awareness Level of Women Policyholder towards LIC’s Policies in

Chennai City
S.Pradeepa1 and A.A. Ananth2
1
Research Scholar, 2Associate Professor
Department of Business Administration, Annamalai University, Tamil Nadu, India
E-Mail:[email protected]

Abstract - Insurance sector plays an important role in the (LICI) is adopting various strategies to develop customers’
financial sector of a country. The marketing strategy should be awareness about the various products as well as involving in
laid put in such a manner that it includes the requirement the fulfillment of various needs and requirements of the
from the launching policy till the final stage when it reaches in customers through their selection of different life insurance
the hand of customer, means the service provided to the
policies available in the market. Observing present scenario
policyholders or the end uses. It should be planned
accordingly, suiting the Indian society, because it is a of the LICI customers’ product awareness and their current
diversified one from high income group to low one. The new transactional life insurance policies, in this study the
entrants in the insurance business sector should take pains and investigation of customers’ product awareness and
understand people demand and needs and transform their transaction gap in Life Insurance Corporation of India has
policies as per their individual choices. They should be been conducted in Burdwan district, West Bengal. In this
designed to provide the facilities to customer as to give the study, accepted 221 usable responses were considered as the
customers full reliance and satisfaction. So this paper is made sample size and statistical package SPSS 16 was used to
an attempt to know the awareness of LIC among women perform the analyses.
policyholder in Chennai.
Keywords: Awareness, women policyholder, policy
Narendar and Sampath (2014) observed that the level of
I. INTRODUCTION awareness towards the rights and duties regarding insurance
is negligible. The study tries to understand the awareness of
The insurance sector in India has grown at faster rate after the people towards the rights and duties towards life
liberalization. Life Insurance is one of the fastest growing insurance products after the privatization of the insurance
and emerging markets in India. Insurance companies have a sector with special reference to Indian insurance sector. To
pivotal role in offering insurance products which meet the actually understand this, a primary research was conducted
requirements of the people and, at the same time, are to find out the level of awareness towards the rights and
affordable. There are various types of policies such as term duties of the policy holders across demographic profiles and
insurance, whole life insurance, endowment policies, money about the level of awareness towards life insurance policies
back plan, individual insurance, group insurance, pension prevailing in the Indian market. The study totally
plans, children’s plan and unit-linked plan offered by LIC. concentrates on the individual behaviour, attitudes and also
These policies are mostly specific to different income and crating the awareness regarding their contribution on Indian
age groups it’s big and monopoly public corporation for life insurance sector.
insurance. Many of the people they have trust worthy
because this corporation belongs to government and III. STATEMENT OF THE PROBLEM
expected assured return. The women policyholders are one
of the prime people to know the awareness of LIC policies Nowadays Women are increasingly managing of their
so that to enhance the policyholder behaviour towards family's financial affairs in India. In traditional Tamilnadu
investing in LIC. in which Chennai is a part, it had been women the finance
leader. But still they have not been taught to protect their
II. LITERATURE REVIEW life. The main reason was that they had no financial
independence. In the last two decades, working women
Choudhuri (2014) states the customers are very much have made great steps toward economic equality with men;
conscious about their needs and requirements towards however, two - third of women had no life insurance
insurance. Based on several factors, customers are now coverage. The policyholders are aware of all the plans, and
selecting different kinds of products in their life where their policy which comes under the plan of LIC is studied in this
awareness about the several existing life insurance products article because the researcher should know their women
varies situation wise, culture wise, nation wise, sector wise, policyholders’ awareness level of the policies in LIC.
industry wise and obviously over times. On the other hand,
like any other company, Life Insurance Corporation of India

67 AJMS Vol.6 No.2 July-December 2017

S.Pradeepa and A.A. Ananth

IV.OBJECTIVE OF THE STUDY investment avenues which are offered by LIC. It is better to
understand the profile of women policyholders before
1. To find out association between the demographic assessing their level of awareness and level of satisfaction
factors and awareness level of Life Insurance towards select investment avenues. The profile of women
Corporation products by an insured women. policyholders consists of their socio economic background
2. To provide suggestions to improve the awareness level which would enable the researcher to fulfill the objectives
among women in investing in LIC. of the study. In this study, age, marital status, educational
level, employment status and annual income of the
V. METHODOLOGY respondents are taken into consideration. The data for the
present study were collected from 520 women policyholders
The present study is aimed at analyzing the awareness of in LIC at Chennai metro and the data have been analyzed
women policyholders in Chennai metro towards select using the following statistical techniques.

VI. ANALYSIS OF INTERPRETATION

The level of significance for rejection or acceptance of the study both 0.01 and .05 level of significance has been
hypothesis has to be decided in advance. In the present used.
TABLE 1 ASSOCIATION BETWEEN AGE GROUPS OF RESPONDENTS AND THEIR AWARENESS LEVEL TOWARDS INVESTING IN LIC
of LIC and its associated Factors

Awareness Level About LIC

Age χ2 P
High Medium Low Total
Awareness about all plan

Up to 35 21 67 70 158
Years 4.04% 12.88% 13.46% 30.38%
benefits

36 to 50 47 99 82 228
Years 9.04% 19.04% 15.77% 43.85%
53.64 0
Above 50 64 44 26 134
Years 12.31% 8.46% 5.00% 25.77%
132 210 178 520
Total
25.38% 40.38% 34.23% 100.00%
Source: Primary data

TABLE 2 ASSOCIATION BETWEEN EDUCATION OF RESPONDENTS AND THEIR AWARENESS LEVEL TOWARDS INVESTING IN LIC
Factors

Education Awareness Level About LIC

of χ2 P
Respondents
High Medium Low Total
Awareness about all plan
of LIC and its associated

Up to 30 49 42 121
Graduate 5.77% 9.42% 8.08% 23.27%
46 76 44 166
Post graduate
8.85% 14.62% 8.46% 31.92%
34.64 0
56 85 92 233
Professional
10.77% 16.35% 17.69% 44.81%
132 210 178 520
Total
25.38% 40.38% 34.23% 100.00%
Source: Primary data

AJMS Vol.6 No.2 July-December 2017 68

 Awareness Level of Women Policyholder towards LIC’s Policies in Chennai City

TABLE 3 ASSOCIATION BETWEEN INCOME GROUPS OF RESPONDENTS AND THEIR AWARENESS LEVEL TOWARDS INVESTING IN LIC

Awareness Level About LIC

Factors
Income χ2 P
High Medium Low Total
Up to 3 49 66 49 146
Awareness about all

associated benefits
plans of LIC and its
lakh 5.96% 12.69% 9.42% 28.08%
3.1 lakh 47 104 70 221
- 6 lakh 9.04% 20.00% 13.46% 42.50%
20.627 0
Above 6 54 40 59 153
lakh 10.38% 7.69% 11.35% 29.42%
132 210 178 520
Total
25.38% 40.38% 34.23% 100.00%

TABLE 4 ASSOCIATION BETWEEN EMPLOYMENT OF RESPONDENTS AND THEIR AWARENESS LEVEL TOWARDS INVESTING IN LIC
Factors

Employment Awareness Level About LIC

of c2 P
Respondents
High Medium Low Total
Private 47 120 105 272
Awareness about all
plan of LIC and its

organization 9.04% 23.08% 20.19% 52.31%

associated

Government 72 63 59 194
organization
13.85% 12.12% 11.35% 37.31%
26.203 0
Self 13 27 14 54
Employed 2.50% 5.19% 2.69% 10.38%
132 210 178 520
Total
25.38% 40.38% 34.23% 100.00%

VII. FINDINGS customers who are professionals had low level awareness of
the LIC and its operations (N= 92 and 17.69%). High level
Chi-Square test was appliedto identify the association awareness was found (N=56 and 10.77%) from the same
between women policyholders and their awareness level group but less in numbers among the three groups. 10.38%
towards investing in LIC based on their age, education, of more than 6 lakh income holder had a good awareness on
income and work place. It is observed that the chi-square LIC (N=54) and 3.1- 6 lakh annual income holders’ had
value is greater than the p value 0.001. So the null low level awareness on LIC (N=70 and 13.46%).
hypothesis is rejected at 1% level of significance. Hence
there is association with the above given variable with the It shows that more income people have only moderate
awareness level towards LIC polices. awareness on investing in LIC. 20.19 percent of the private
organizational employees had low level awareness on LIC
Awareness is an important factor for analyzing LIC and its (N=105), but government employees had good awareness
functional operations. All service related organizations are on LIC and its functional operations (N=72 and 13.85%).
concentrating to increase the awareness level of their It is concluded that the awareness level about LIC attains
products and services. LIC is very popular among various the score as (Low- 178, Medium- 210, and High- 132).
insurance companies and it is pioneer also, but in case of Most of the policyholders’ opinion falls into medium level
investing money, people need its popularity which would be of awareness towards LIC.
created through awareness.
VIII. SUGGESTIONS BASED ON FINDINGS AND
This study reveals that 36-50 years old people whether they OBSERVATIONS
had contact with LIC, their awareness level had been low
(N=82 and 15.77%). High level awareness was recorded People are aware about presence of the insurance
from above 50 years of customers (N= 64 and 12.31%). companies, but awareness about the importance of

69 AJMS Vol.6 No.2 July-December 2017

S.Pradeepa and A.A. Ananth

insurance as risk avoidance tool is low. Companies the study has noted that improving insurance awareness
advertise about the tax saving benefits, maturity benefits, requires both structuring and enhancing the penetration of
etc., but they do not stress on the risk coverage aspect. an appropriate awareness creation campaign with a regional
and spatial focus. Such a campaign needs to be supported by
1. Existing Policy holders need to be educated more, on a stronger information infrastructure for the efficient
their own policy function in the life insurance market.
2. Enough awareness must be created by sharing their
policy’s bonus details, royalty amount, etc. REFERENCES
3. Apart from their own policy knowledge they can also
be educated on other attractive policy details, apt to [1] Choudhuri P.S (2004) “Investigation of Customers’ Product
Awareness and Transaction Gap in Life Insurance Corporation of
their family condition.
India”, International Journal of Research in Commerce &
4. This can be done at regular intervals, via SMS, email Management, 4(5), 69-72.
etc. [2] Jayapriya&Chandni (2016)“A Study on the Awareness, Preference
And Satisfaction of Policyholders towards LIC With Special
Reference to Malappuram District”. International journal of research
IX. CONCLUSION –Granthaalaya,Vol.4 (Iss.10).
[3] Narendar and Sampath (2014), “Consumer awareness towards life
The LIC should make enormous efforts to create insurance insurance sector in India”, ABHINAV International Monthly Refereed
awareness among the people especially working women Journal of Research in Management & Technology, 3(3), 45-51.
[4] Sheela&G.Arti (2007), Awareness of Life Insurance Policies,
who wants to protect their life. Since obviously the Insurance Chronicle, pp: 61-67.
insurance sector is still in emerging stage of development,

AJMS Vol.6 No.2 July-December 2017 70