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CHAPTER-I

1.1 INTRODUCTION

INSURANCE INDUSTRY

The business of insurance started with marine business. Traders, who used to gather in the
Lloyd’s coffee house in London, agreed to share the losses to their goods while being carried by
ships. The losses used to occur because of pirates who robbed on the high seas or because of bad
weather spoiling the goods or sinking the ship. The first insurance policy was issued in 1583 in
England. In India, insurance began in 1870 with life insurance being transacted by an English
company, the European and the Albert. The first Indian insurance company was the Bombay
Mutual Assurance Society Ltd, formed in 1870. This was followed by the Oriental Life Assurance
Co. in 1874, the Bharat in 1896 and the Empire of India in 1897.

Later, the Hindustan Cooperative was formed in Calcutta, the United India in Madras, the
Bombay life in Bombay, the National in Calcutta, the New India in Bombay, the Jupiter in Bombay
and the Lakshmi in New Delhi. These were all Indian companies, started as a result of the swadeshi
movement in the early 1900s. By the year 1956, when the life insurance was nationalized and the
Life Insurance Corporation of India (LIC) was formed on 1st September 1956, there were 170
companies and 75 provident fund societies transacting life insurance business in India. After the
amendments to the relevant laws in 1999, the L.I.C. did not have the exclusive privilege of doing
life insurance business in India. By 31.3.2002, eleven new insurers had been registered and has
begun to transact life insurance business in India.

NEED OF INSURANCE

Assets are insured, because they are likely to be destroyed, through accidental occurrences.
Such possible occurrences are called perils. Fire, floods, breakdowns, lightning, earthquakes, etc,
are perils. If such perils can cause damage to the asset, we say that the asset is exposed to that risk.
Perils are the events. Risks are the consequential losses or damages. The risk to an owner of a
building, because of the peril of an earthquake, may be a few lakhs or a few crores of rupees,
depending on the cost of the building and the contents in it.
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The risk only means that there is a possibility of loss or damage. The damage may or may
not happen. Insurance is done against the contingency that it may happen. There has to be an
uncertainty about the risk. Insurance is relevant only if there are uncertainties. If there is no
uncertainty about the occurrence of an event, it cannot be insured against. In the case of a human
being, death is certain, but the time of death is uncertain. In the case of a person who is terminally
ill, the time of death is not certain, though not exactly known. He cannot be insured.

Insurance does not protect the asset. It does not prevent its loss due to the peril. The peril
cannot be avoided through insurance. The peril can sometimes be avoided, through better safety and
damage control management. Insurance only tries to reduce the impact of the risk on the owner of
the asset and those who depend on that asset. It only compensates the losses – and that too, not
fully.

Only economic consequences can be insured. If the loss is not financial, insurance may not
be possible. Examples of non-economic losses are love and affection of parents, leadership of
managers, sentimental attachments to family heirlooms, innovate and creative abilities, etc.

TYPES OF INSURANCE
 Automobile insurance
 Aviation insurance
 Boiler insurance
 Builder’s risk insurance
 Casualty insurance
 Disability insurance
 Liability insurance
 Marine cargo insurance
 Purchase insurance
 Credit insurance
 Crime insurance
 Crop insurance
 Directors and officers liability insurance
 Property insurance
 Terrorism insurance
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 Title insurance
 Travel insurance
 Workers’ compensation
 Life insurance
 Total permanent disability insurance
 Locked funds insurance
 Marine insurance
 Financial loss insurance
 Health insurance
 Professional indemnity insurance
 Environmental liability insurance
 Pet insurance
 Political risk insurance

INTRODUCTION OF LIFE INSURANCE

Life insurance is designed to protect life and to product family against financial uncertainties
that may result due to unfortunate demise or illness. It can also view as a comprehensive financial
instrument, as a part of the financial planning offering savings & investment facilities along with
cover against financial loss. By choosing the right policy as per the needs i.e. customized solutions,
you will be able to plan for a secure future for yourself and your loved ones.

We all have different financial needs and objectives. But life insurance plays a fundamental
role in most of our plans for financial security. That's because of the variety of life insurance plans
available and the many ways they can be customized to meet unique needs at different periods of
your life.
MAJOR COMPETITORS OF RELIANCE LIFE INSURANCE

 Reliance Insurance Corporation of India

 ICICI Prudential Life Insurance

 Bajaj Allianz Life

 HDFC Standard Life Insurance

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INSURANCE IN INDIA

About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were
operating in India at the time of nationalization. Nationalization was accomplished in two stages;
initially the management of the companies was taken over by means of an Ordinance, and later, the
ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance
Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created
on 1st September, 1956, with the objective of spreading life insurance much more widely and in
particular to the rural areas with a view to reach all insurable persons in the country, providing them
adequate financial cover at a reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its
corporate office in the year 1956. Since life insurance contracts are long term contracts and during
the currency of the policy it requires a variety of services need was felt in the later years to expand
the operations and place a branch office at each district headquarter. re-organization of LIC took
place and large numbers of new branch offices were opened. As a result of re-organization servicing
functions were transferred to the branches, and branches were made accounting units. It worked
wonders with the performance of the corporation. It may be seen that from about 200.00 crores of
New Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it took
another 10 years for LIC to cross 2000.00 crore mark of new business. But with re-organization
happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on
new policies.

Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7
zonal offices and the corporate office.
LIC’s Wide Area Network covers 100 divisional offices and connects all the branches
through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-
line premium collection facility in selected cities. LIC’s ECS and ATM premium payment facility is
an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centers have been
commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune
and many other cities.
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With a vision of providing easy access to its policyholders, LIC has launched its
SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer.
The digitalized records of the satellite offices will facilitate anywhere servicing and many other
conveniences in the future.

LIC continues to be the dominant life insurer even in the liberalized scenario of Indian
insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC has
issued over one crore policies during the current year. It has crossed the milestone of issuing
1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the
corresponding period of the previous year.

INSURANCE BUSINESSES IN INDIA ARE

 1818: Oriental Life Insurance Company, the first life insurance company on Indian soil
started functioning.
 1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company
started its business.
 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the
life insurance business.
 1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
 1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
 1956: 245 Indian and foreign insurers and provident societies are taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with
a capital contribution of Rs. 5 crore from the Government of India.
HOW INSURANCE WORKS

The mechanism of insurance is very simple. People who are exposed to the same risks come
together and agree that, if any one of them suffers loss, the others will share the loss and make good
to the person who lost. All people who send goods by ship are exposed to same risks, which are
related to water damage, ship sinking, piracy, etc. Those owning factories are not exposed to these
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risks, but they are exposed to different kinds of risks like, firer, hailstorms, earthquakes, lightning,
burglary, etc. Like this, different kinds of risks can be identified and separate groups made,
including those exposed to such risks. By this method, the heavy loss that any one of them may
suffer is divided into bearable small losses by all. In other words, the risk is spread among the
community and the likely big impact on one is reduced smaller manageable impacts on all.

INSURANCE AS A SECURITY TOOL

The United Nations Declaration of Human Rights 1948 provides that “Everyone has a right
to standard of living adequate for the health and well being of himself and his family, including
food, clothing, and housing and medical care and necessary social service and the right to security in
the event of unemployment, sickness, disability. Life insurance provides such an alternate
arrangement. If this did not happen, another family will be pushed into the lower strata of society.
The lower strata create a cost on society. Life insurance tends to reduce such a cost. In this sense,
the life insurance business is complimentary to the states efforts in the social management.

In a capitalist society provision of security is largely left to the individual. Insurance is one
of them to provide social security by state under some schemes.

ROLE OF INSURANCE IN ECONOMIC DEVELOPMENT

For economic development investments are necessary. Investments are made out of savings.
A life insurance is a major instrument for the mobilization of savings, particularly from the middle
and lower income groups. This savings are channeled into investments for economic growth.
Major Market Players in India.

Presently there are 15 Life insurance companies in the country. There is only one public
sector company LIC and the rest 14 are private sector. Although LIC has been dominating the Life
Insurance business since past few years the private players have now started to build up momentum.

HDFC – STANDARD LIFE

HDFC Standard is a 74:26 joint venture between HDFC and Standard Life. It is a private
sector company. The market share for FY 2005-06 was 2.87%.
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BIRLA SUN LIFE INSURANCE COMPANY

Birla Sun Life Insurance Company is a 74:26 joint venture between Birla group and Sun Life
Financial. It is a private sector company. The market share for FY 2005-06 was 1.89%.

ICICI PRUDENTIAL LIFE INSURANCE

ICICI Prudential Life is a 74:26 joint venture between ICICI and Prudential. It is a private
sector company. The market share for FY 2005-06 was 7.35%.

LIFE INSURANCE CORPORATION OF INDIA (LIC)

Life Insurance Corporation of India is a 100% government held Public Sector Company.
Being the first to be established LIC is the forerunner in the Life Insurance sector. The market share
for FY 2005-06 was 71.44%.

KOTAK MAHINDRA OLD MUTUAL

Kotak Mahindra OLD Mutual is a 74:26 joint venture between Kotak Mahindra bank and
Old Mutual. It is a private sector company. The market share for FY 2005-06 was 1.11%.

MAX NEW YORK LIFE

Max New York Life is a 74:26 joint venture between J & Bank, Pallonji & Co and MetLife.
It is a private sector company. The market share for FY 2005-06 was 1.23%.

AVIVA LIFE INSURANCE INDIA

Aviva Life insurance is a 74:26 joint venture between Aviva and Dabur. It is a private sector
company. The market share for FY 2005-06 was 1.14%.

ING VYSYA LIFE INSURANCE

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ING Vysya Life Insurance is joint venture between Exide (50%), Gujarat Cements (14.87%),
Enam (9.13%) and ING (26 %). It is a private sector company. The market share for FY 2005-06 is
0.79%.

METLIFE INDIA

MetLife India is a 74:26 joint venture between J & K Bank, Pallonji & Co and MetLife. It is
a private sector company. The market share for FY 2005-06 was 0.40%.

BAJAJ ALLIANZ LIFE INSURANCE COMPANY

Bajaj Allianz Life Insurance Company is a 74:26 joint venture between Bajaj Auto limited
and Allianz AIG. The market share for FY 2005-06 was 7.56%.

SBI LIFE INSURANCE COMPANY LTD

SBI Life Insurance Company is a 74:26 joint venture between SBI and Cardiff S.A. It is a
private sector company. The market share for FY 2005-06 was 2.31%.

TATA AIG GROUP

TATA AIG group is a 74:26 joint venture between Tata Group and AIG. It belongs to the
private sector. The market share for FY 2005-06 was 1.29%.

SAHARA INDIA LIFE INSURANCE COMPANY LTD

First Wholly Indian Owned Private Life Insurance Company. The market share for FY 2005-
06 was 0.06 %.

SHRIRAM LIFE INSURANCE COMPANY LTD

Shriram Life is a recent entrant into the life insurance sector. It is a 74:26 joint venture
between the Shriram group through its Shriram Financial Holdings and Sanlam Life Insurance
Limited, South Africa.
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MARKET SHARE OF PUBLIC AND PRIVATE SECTOR COMPANIES

MARKET SHARE OF PRIVATE SECTOR INSURANCE COMPANIES

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INSURANCE REGULATORY DEVELOPMENT AUTHORITY (IRDA)

On the recommendation of Malhotra Committee, an Insurance Regulatory Development Act

(IRDA) passed by Indian Parliament in 1993. Its main aim was to activate an insurance regulatory
apparatus essential for proper monitoring and control of the Insurance industry. Due to this Act
several Indian private companies have entered into the insurance market, and some companies have
joined with foreign partners. In economic reform process, the Insurance Companies has given boost
to the socio-economic development process. The huge amount of funds that are at the disposal of
Insurance Companies are directed as desired avenues like housing, safe drinking water, electricity,
primary education and infrastructure. Above all the policyholders gets better pricing of products
from competitive insurance companies.

LIBERALIZATION

The opening up of Insurance sector was a part of the ongoing liberalization in the financial
sector of India. The domain of State-run insurance companies was thrown open to private enterprise
on December 7, 1999, with the introduction of the Insurance Regulatory and Development Authority
(IRDA) Bill. The opening up of the sector gave way to the world known names in the industry to
enter the Indian market through tie-ups with the eminent business houses. What was once a quiet
business is becoming one of the hottest businesses today.

POST LIBERALIZATION

The changing face of financial sector and the entry of several companies in the field of Life
Insurance segment are one of the key results of these liberalization efforts. Insurance business by
way of generating premium income adds significantly to the GDP. Despite the fact that the market is
vast in India for the Insurance business, the coverage is far less compared with the international
standards. With the entry of private players, the Indian Insurance Market may finally be able to
make deeper penetration in to newer segments and expand the market size manifold. The quality of
service will also improve and there will be wide. Therefore, it may be advantageous to be a second-
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round entrant. In the Life insurance market the need risk assessment systems and data that are the
key to success in the Life insurance market are significantly underdeveloped in India even today.

SIGNIFICANCE OF THE STUDY

 The success of the organization depends on markets.

 The study was mainly undertaken to identify the market through insurance.

 If the market Insurance are identified it would possible for the management to take the

necessary steps to improve the sales of the product.

 Since markets are considered as improvements for the company market will lend to the

success of the company in the long run.

 The need for the study can be recognized when the result of related study required

suggestions & recommendations to the similar solutions.

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SCOPE OF THE STUDY

 The study is to define the customer needs, preference and full fill their expectations.

 It will be helpful for the management to identify the market potential.

 Since the study is general one, it can be adopted by similar organizations.

 The recommendations and suggestions of the study can also be applied to similar
project or similar situation.
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STATEMENT OF THE PROBLEM

Insurance sector is a booming sector and the penetration in India is quiet low. So, all the
private players are trying to increase the market share in the public. This study also involves creating
awareness among the urban and rural consumer about the insurance sector and also the various
policies involving various premium rates. Since the penetration of private companies and policies is
low among the consumer, it is necessary to create awareness about life insurance policies and to
know the satisfaction level among consumer. Hence the present studies entitled awareness about it
among the consumer.
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OBJECTIVES OF THE STUDY

 To study the market of Life Insurance products with reference to LIC Life Insurance.

 To understand the strength and weakness of LIC Life Insurance products.

 To find the best LIC Life Insurance product in terms of movements & quality.

 To analyze the various factors that affects the LIC Life Insurance.

 To make Suggestions & recommendations to improve the market position of LIC Life
Insurance products.
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RESEARCH METHODOLOGY

4.1 RESEARCH DESIGN

“A research design is the arrangement of conditions for collection and analysis data in a
manner that aims to combine relevance to the researcher purpose with economy in procedure”.

It constitutes the blueprint for the collection, measurement and analysis of data. As such the
design includes an outline of what the researcher will do form writing the hypothesis and its
operational implication to the final analysis of data.

More explicitly, the design decisions happen to be in respect of;

 What is the study about?

 Why is the study being made?
 Where will the study be carried out?
 What type of data is required?
 Where can the data are found?
 What periods of time will the study include?
 What will be the sample design?
 How will the data be analyzed?
 In what style will the report be prepared?
 What techniques of data collection will be used?

The Research Design undertaken for the study is Descriptive one. A study, which wants
to portray the characteristics of a group or individuals or situation, is known as Descriptive study. It
is mostly qualitative in nature.
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4.2 TYPES OF DATA COLLECTED

 Primary Data

Questionnaires are prepared and personal interview was conducted. Most of the questions
are consist of multiple choices. The structured interview method was undertaken. The interview was
conducted in English as well as in Tamil. Proper care was taken to frame the interview schedule in
such a manner it should be easily understood in view of educational level of the employees.
Generally 32 questions are prepared and asked to the customers.

 Secondary Data

Secondary data was collected from Internets, various books, Journals, and Company
Records.

4.3 QUESTIONNAIRE CONSTRUCTION

Questionnaires were constructed based on the following types:

 Open ended questions

 Close ended questions
 Multiple choice questions

4.4 DEFINING THE POPULATIONS

The Population or Universe can be Finite or infinite. The population is said to be infinite if it
consist of a unfixed number of elements so that it is possible to enumerate it in its totality. So In this
projects consist of infinite population.

4.5 SAMPLING PLAN

A sampling plan is a definite design for obtaining a sample from the sampling frame. It
refers to the technique or the procedure the researcher would adopt in selecting some sampling units
from which inferences about the population is drawn. Sampling design is determined before any
data are collected.
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Convenient Sampling technique was adopted. In this method the researcher select those units
of the population in the sample, which appear convenient to him or the management of the
organization where he is conducting research.

4.6 SAMPLE SIZE

100 samples are taken.

4.7 FIELD WORK

The field works is done at---------.

4.8 PERIOD OF SURVEY

The period is from December 2014 to March 2015.

4.9 DESCRIPTION OF STATISTICAL TOOLS USED

 Percentage method
 Correlation

4.9.1 PERCENTAGE METHOD

In this project Percentage method test was used. The percentage method is used to know the
accurate percentages of the data we took, it is easy to graph out through the percentages. The
following are the formula

No of Respondent
Percentage of Respondent = x 100
Total no. of Respondents

From the above formula, we can get percentages of the data given by the respondents.
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4.9.2 CORRELATION

Correlation analysis deals with the association between two or more variables. It does not tell
anything about cause and effect relationship. Correlation is classified in two types as

 Positive and

 Negative correlation.

SPEARMAN Correlation method, it also can be said as Rank Correlation. It is defined by the

symbol ‘r’

6 ∑ di²
FORMULA r = 1- ______________

n (n²-1)

Correlation value shall always lie between +1 and-1. When r =1, it shows there is
perfect positive correlation between variables. When r = 0, There is no correlation.
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LIMITATIONS OF THE STUDY

 There are samples collected from those who brought the Life Insurance.

 There is a difficulty to ascertain the customer to collect the sample.

 The sample size was restricted to 100 due to these factors.

 The study will be effect only for the next six months & vary accordingly.
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REVIEW OF LITERATURE

Overall customer satisfaction is generally considered to be a multi-attribute model

(Woodruff, Cadotte and Jenkins,1983). Components of overall satisfaction
(SAT_OVERALL) that have been examined include product satisfaction (e.g., Oliver 1993;
Homburg and Rudolph 2001), interpersonal satisfaction (e.g., Lele and Sheth 1988; Manning
and Reece 2001), satisfaction with the price of the offering(e.g., Anderson 1996),and
satisfaction with vendor performance (e.g., Sheth 1073)

Researchers have sought greater understanding of the overall satisfaction construct in

industrial markets by examining the phenomenon in different situation. In a study of
consumer can be simultaneously satisfied with one or more components of satisfaction
related to a specific offering while being dissatisfied with other components of satisfaction
for that same offering. Thus, while experiencing relatively high overall satisfaction, a
customer might be extremely dissatisfied with one or more aspects of that offering.

Extensive research into the factors influencing customer satisfaction has been
conducted in consumer markets (e.g., Spreng et al.1996: Swan and Oliver 1991; Oliver swan
1989; Churchil and Surprenant 1982), but relatively little such research has been conducted
in industrial markets. In spite of this dearth of research, Patterson, Johnson, and Spreng
(1997) find that industrial buyers, like consumers, consider multiple attributes when
evaluating overall satisfaction.

While industrial buyers weight their judgments differently than consumers, the
disconfirmation paradigm is applicable in B2B markets (Patterson, Johnson and Spreng,
1997). In the expectancy- disconfirmation model of customer satisfaction, the most widely
accepted and studied model (Patterson, Johnson and Spreng, 1997), customers compare their
perceptions of performance (not objective actual performance) with their pre-purchase
expectations to form judgments about the experience (Olshavsky and Spreng, 1989).
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When expectations are met, i.e., when perceived performance is lose to expectations,
little conscious thought is given to the process. However, when perceived performance is
higher (lower) than the expected level of performance, expectations are said to be
disconfirmed. When expectations are lower (higher) than perceived performance, satisfaction
(dissatisfaction) is experienced.

According to Keiningham, Munn, and Evans (2003, p. 37), “both practitioners and
academics have accepted the premise that customer satisfaction results in customer behavior
patterns that positively affect business results.” While it is highly argued that retaining
current customers is easier than attracting new ones, as it would normally cost 20 times more
to attract new customers rather than keeping existing ones per Carson Research Consulting,
Inc. report.

Continuous customer satisfaction from the offered product will lead to an easy
purchase decision every time the need for these products and services arises. Thus,
customers tend to become loyal to these providers, where their satisfaction helps to increase
customer loyalty, reducing the need to allocate marketing budget to acquire new customers,
where their word-of-mouth will also bring potential customers, increasing revenue and
profit.

According to Hoyer and MacInnis (2001), satisfied customers form the foundation of
any successful business as customer satisfaction leads to repeat purchase, brand loyalty, and
positive word of mouth.
As positive and negative feelings can coexist, customers may like parts of the service while
rejecting other parts.

According to Willard Hom Satisfaction is the state felt by a person who has
experienced a performance (or outcome) that has fulfilled his or her expectations.
Satisfaction is thus a function of relative levels of expectation and perceived performance…
Expectations are formed on the basis of past experiences with the same or similar situations,
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statements made by friends and other associates, and statements made by the supplying
organization. (Kotler & Clarke, 1987).

According to Kano Model Theory of customer satisfaction. Basically Kano saw three
types of customer satisfaction: required (basic quality also threshold requirements), more is
better (performance quality) and delighter (excitement quality).
Customers expectations change over time. Often what was once enough to delight a
customer (remote control for a TV) becomes expected. Once a feature is expected the
organization gets no credit for providing it they only risk a negative reaction if they fail to
provide it.

AndrewMennie,GeneralManager,eGain Ever wondered how much customer

satisfaction is worth? We all know and accept that it is a strategic goal for all organisations
involved in the delivery of customer service.

Yet in all my experience as a professional in this arena, I have never come across a
customer services director who could articulate the financial value of customer satisfaction to
their business. Conversely, I have never met a Customer Service Director who wasn’t
measured on it. How bizarre. Big business is happy to measure it but doesn’t know what it’s
worth.

According to Michael D. Johnson

1) customization is more important than reliability in determining customer satisfaction,
(2) customer expectations play a greater role in sectors in which variance in production
and consumption is relatively low, and
(3) customer satisfaction is more quality-driven than value- or price-driven. The authors
conclude with a discussion of the implications of ACSI for public policymakers,
managers, consumers, and marketing in general

According to O'Loughlin: Customer satisfaction and retention are key

issues for organizations in today’s competitive market place. As such, much research and
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revenue has been invested in developing accurate ways of assessing consumer satisfaction at
both the macro (national) and micro (organizational) level, facilitating comparisons in
performance both within and between industries.

According to Thomas Leutbecher “This project work deals with a

customer satisfaction survey, conducted in a café in downtown Helsinki. The main objective
is to find weak points of the business from a customer perspective in order to give
recommendations for optimising the companies performance”.

Glossary Entony:
The extent to which a customer’s expectations of product quality, service quality, and price
are met.

Kotler:
Customer satisfaction is the measure of how well our PRODUCTS, SERVICE, SUPPORT
and ENGAGEMENT are able to meet the customer EXPECTATIONS.
Customer satisfaction is a measure of how well our…
PRODUCTS- Products including physical products and services.

SERVICE- Customer service post sale. This includes responding to customer queries and
issues.

SUPPORT- Repair, maintenance and upkeep of your products post sales.

ENGAGEMENET- Engaging with customer, apart from the above mentioned contexts
(product, service and support). This includes offering new products, schemes, up-sell and
cross-sell.
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PROFILE OF THE STUDY

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DATA ANALYSIS AND INTERPRETATION

TABLE 5.1.1 RESPONDENTS PROFILE OF AGE

AGE (In Years) FREQUENCY )%( PERCENTAGE

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35-45 66 66
25-35 25 25
Above 50 5 5
Less than 50 4 4
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION
Table shows, among the 100 sample respondents, the majority of 66% of the respondents fall
in the age group of 35-45 years. Another 25% fall in the category of 25-35 years. There are 5% of
the respondents who fall in the age group of above 50 years, while the remaining 4% are in the age
group of below 25 years. Thus, from the analysis it can be concluded that the majority (66%) of
respondents fall in the age group of 35-45.

CHART 5.1.1 RESPONDENTS PROFILE OF AGE

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66%
70

FREQUENCY
60
50
40
30 22%
20
10 4% 5%
0
BELOW 25 25-35 35-45 ABOVE 50

AGE

TABLE 5.1.2 GENDER PROFILE OF THE RESPONDENTS

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GENDER FREQUENCY )%( PERCENTAGE

Male 73 73
Female 27 27
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION

Table shows, the 100 sample respondents, the majority of 73% of the respondents are Male,
while the remaining 27% are female. Thus, from the analysis it can be concluded that the male
respondents constituted the major position (73%)

CHART 5.1.2 GENDER PROFILE OF RESPONDENT

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80
73%
70
FREQUENCY 60
50
40
27%
30
20
10
0
MALE FEMALE

GENDER
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TABLE 5.1.3 MARITAL STATUS OF RESPONDENTS

MARITAL STATUS FREQUENCY )%( PERCENTAGE

Married 99 99
Unmarried 1 1

TOTAL 100 100

(Source: Primary Data)

INTERPRETATION

Table shows, among the 100 sample respondents, the majority (99%) of the respondents are
married while the remaining 1% is unmarried among the respondents. Thus, from the analysis it can
be concluded that the majority (99%) of respondents who are married.

CHART 5.1.3 MARITAL STATUS OF RESPONDENTS

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120

99%
FREQUENCY 100

80

60

40

20
1%
0
MARRIED UNMARRIED

MARITAL STATUS
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TABLE 5.1.4 EXPERIENCE PROFILE OF THE RESPONDENTS

EXPERIENCE OF
RESPONDENT FREQUENCY )%( PERCENTAGE
3-5 57 57
2-3 27 27
Above 2 11 11
Less than 5 5 5
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION

As it could be seen in Table, among the 100 sample respondents, the highest of 57% of the
respondents fall in the experience group of 3-5 years. Another 27% fall in the category of 2-3 years.
There are 11% of the respondents who fall in the experience group of less then 2 years, while the
remaining 5% are in the experience group of above5 years. Thus, majority (57%) of respondents are
in the experience group of 3-5.

CHART 5.1.4 EXPERIENCE PROFILES OF RESPONDENTS

 33

60 57%

50
FREQUENCY
40
27%
30

20
11%
10 5%

0
LESS THAN 2 2 TO 3 3 TO 5 GREATER THAN 5

EXPERIENCE OF RESPONDENTS

TABLE 5.1.5 ANNUAL INCOME LEVEL OF RESPONDENTS

 34

ANNUAL INCOME FREQUENCY )%( PERCENTAGE

).In RS(
3,00,000 - 1,50,000 50 50
Less Than 1,50,000 27 27
4,20,000 - 3,00,000 14 14
Greater Than 4,20,000 9 9
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION

Table shows, out of 100 sample respondents, the majority 50% of the respondents earn
annual income between 150000-300000.Another 27% of respondents are less than 150000. There
are 14% of the respondents who earn between 300000-420000, the remaining 9% among the
respondents earn above 420000. Thus, from the analysis it can be concluded that the respondents
who earn between 150000-300000 constituted the major position (50%).
 35

CHART 5.1.5 ANNUAL INCOME LEVEL OF RESPONDENTS

60 50%
FREQUENCY

50
40
27%
30
14%
20 9%

10
0
1,50,000-3,00,000 Less than 1,50,000 3,00,000-4,20,000 Greater than 4,20,000

EXPERIENCE OF RESPONDENTS

TABLE 5.1.6 AWARENESS ABOUT LIFE INSURANCE POLICIES

 36

AWARENESS FREQUENCY )%( PERCENTAGE

Yes 100 100
No 0 0
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION

As it could be seen in table among the 100 sample respondent all of them were aware of the
life insurance policies, (i.e.) 100%. Thus from the analysis it can be concluded that 100% of
respondents are aware of the life insurance policies.

CHART 5.1.6 AWARENESS ABOUT LIFE INSURANCE POLICIES

 37

120
100%
FREQUENCY 100
80
60
40
20 0%

0
YES NO

AWARENESS OF LIFE INSURANCE

TABLE 5.1.7 INTENDED TYPE OF POLICY IN FUTURE

 38

TYPE OF POLICY RESPONDENT )%( PERCENTAGE

Child secure plan 42 42
Wealth + Health plan 36 36
Golden year plan 7 7
Market rate of return 12 12
Automatic investment plan 3 3
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION

As it could be seen in chart among the 100 sample respondents, 42 respondents are preferred
to take Child secure plan and 36 respondents are preferred to take Wealth+ health plan. Thus from
the analysis it can be concluded that 42 respondents preferred to take Child secure plan.

CHART 5.1.7 INTENDED TYPE OF POLICY IN FUTURE

 39

45
42%
40 36%
35
FREQUENCY

30
25
20
15 12%

10 7%

5 3%

0
Market rate of Automatic Golden year plan Child secure plan Wealth+Health
return investment plan plan

INTEND TYPE OF POLICY

TABLE 5.1.8 PREFERRED INSURANCE COMPANY IN FUTURE

 40

COMPANY RESPONDENT PERCENTAGE

LIC 55 55
RELIANCE 29 29
BAJAJ 5 5
ICICI 2 2
HDFC 9 9
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION
Table shows, among the 100 sample respondents, 55 respondents are preferred to take LIC as
there company and 29 respondents are preferred to take RELIANCE as there company. Thus from
the analysis it can be concluded that 55 of the respondents preferred to take LIC as there company
and among the private company RELIANCE as their company.

CHART 5.1.8 PREFERRED INSURANCE COMPANY IN FUTURE

 41

60 55%

FREQUENCY 50
40
29%
30
20
9%
10 5%
2%

0
LIC RELIANCE BAJAJ ICICI HDFC

PREFERRED INSURANCE COMPANY

TABLE 5.1.9 CURRENT INSURANCE COMPANY

 42

CURRENT COMPANY RESPONDENT PERCENTAGE )%(

LIC 64 64
LIC AND HDFC 27 27
LIC AND ICICI 4 4
RELIANCE 3 3
OTHERS 2 2
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION

Table among the 100 sample respondents, 64% respondents is having policies in LIC and 27
of respondents are having policies in both LIC and HDFC and 4 respondents are having in LIC and
ICICI and 3 respondents are having in RELIANCE. Thus from the analysis it can be concluded that
64 of the respondents are having policies in LIC and HDFC is in the second place when compared to
others private players.

CHART 5.1.9 CURRENT INSURANCE COMPANY

 43

70 64%

60

FREQUENCY
50

40
27%
30
20
4%
10 3% 2%

0
LIC LIC & HDFC LIC & ICICI RELIANCE OTHERS

CURRENT INSURANCE COMPANY

TABLE 5.1.10 NUMBER OF POLICIES

 44

NO. OF POLICIES RESPONDENT PERCENTAGE )%(

ONE 45 45
TWO 36 36
THREE 11 11
FOUR 8 8
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION
Table shows, among the 100 sample respondents, 45 respondents are having two policies and
36 of respondents are having three policies.11 respondents are having four and five policies. 8
respondents are having above five policies. Thus from the analysis it can be concluded that 45 of the
respondents having two policies.
 45

CHART 5.1.10 NUMBERS OF POLICIES

50 45%
FREQUENCY

40 36%

30

20
11%
8%
10

0
1 2 3 4

NUMBER OF POLICIES

TABLE 5.1.11 CURRENT PREMIUM PAYMENT PERIOD

 46

PERIOD RESPONDENT PERCENTAGE )%(

Monthly 53 53
Quarterly 20 20
Annual 13 13
Half yearly 13 13
One time 1 1
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION
Table shows, among the 100 sample respondents, 53 respondents are paying monthly
premium payment and 20 respondents are paying quarterly premium payment. Thus from the
analysis it can be concluded that 51 respondents are paying monthly premium payment.
 47

CHART 5.1.11 CURRENT PREMIUM PAYMENT PERIOD

60
53%
50
FREQUENCY

40

30
20%
20
13% 13%

10
1%
0
MONTHLY QUATERLY ANNUAL HALF YEARLY ONE TIME

PERIODS
 48

TABLE 5.1.12 CURRENT PREMIUM AMOUNT PAID ANNUALLY

AMOUNT RESPONDENT PERCENTAGE )%(

3000-5000 34 34
Less than 3000 23 23
5000-7000 23 23
Greater Than 9000 20 20
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION
Table shows, among the 100 sample respondents, 34 respondent's annual premium payment
is in between Rs 3000-5000 and 23 respondent's annual premium payment is below Rs 3000. Thus
from the analysis it can be concluded that 34 respondent's annual premium payment is in between
Rs 3000-5000.

CHART 5.1.12 CURRENT PREMIUM AMOUNT PAID ANNUALLY

 49

40
34%
35
30
FREQUENCY
25 23% 23%
20%
20
15
10
5
0
3000-5000 Less than 3000 5000 - 7000 Greater than
9000

AMOUNTS

TABLE 5.1.13 SOURCE OF AWARENESS

 50

SOURCE RESPONDENTS PERCENTAGE )%(

Television 85 85
Newspaper 37 37
Magazines 24 24
Online 10 10
Word of Mouth 7 7
Friends 10 10

TOTAL 100 100

(Source: Primary Data)

INTERPRETATION

As it could be seen in table, among the 100 sample respondent, it is clear that most of the
respondents came to know about the insurance through Television (85%) and the second highest
source are the Newspaper (37%). The respondents have come to know about the insurance through
word of mouth is very low (7%). Thus, from the analysis it can be concluded that 85% of the
respondents came to know about insurance polices through Television.
 51

CHART 5.1.13 SOURCE OF AWARENESS

90 85%
80
FREQUENCY

70
60
50
37%
40
30 24%
20
10% 10%
10 7%
0
TELEVISION NEWSPAPERS MAGAZINES ONLINE WORD OF FRIENDS
MOUTH

AMOUNTS

TABLE 5.1.14 AWARENESS ABOUT THE INSURANCE COMPANY

 52

COMPANY’S NAME RESPONDENTS PERCENTAGE )%(

LIC 100 100
HDFC 75 75
ICICI 55 55
SBI 55 55
BAJAJ 27 27
BIRLA 26 26
Tata AIG 19 19
SRIRAM 18 18
ING Vysya 16 16
KOTAK 6 6
Max Newyork 5 5
Sahara 3 3
AVIVA 3 3
BARATHI 0 0
METLIFE 0 0
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION

As it could be seen in table among the 100 sample respondent, it is clear that 100% of the
respondents are aware of LIC. And among the private players HDFC has ranked first (75%) and
followed by ICICI (55%), BAJAJ (27%), BIRLA (26%). None of the respondent has come to know
about Metlife and Max Barathi AXA life insurance. Thus most of the respondents are aware of LIC
and in the private sector HDFC Standard Life insurance.

CHART 5.1.14 AWARENESS OF INSURANCE COMPANY

 53

120
100%
100
FREQUENCY

80 75%

60 55% 55%

40 27%
26%
19% 18%
20 16%
6% 5% 3% 3%
0

METLIFE
MAX NEWYORK
TATA AIG

ING VYSYA

BARATHI
ICICI

KOTAK
LIC

HDFC

BIRLA

AVIVA
SRIRAM

SAHARA
SBI

BAJAJ

AMOUNTS

TABLE 5.1.15 PURPOSE OF TAKING POLICIES

PURPOSE RESPONDENTS PERCENTAGE )%(

 54

tax benefit 57 57
Risk Factor 46 46
Investments 38 38
Schemes 22 22
Brand 19 19
Premium 6 6
Others 1 1

TOTAL 100 100

(Source: Primary Data)

INTERPRETATION

As it could be seen in table among the 100 sample respondents, 57% have opted Tax
Benefits as the major purpose of taking life insurance policies and Life risk factor, Investment are
also the purpose of taking life insurance policies. Thus from the analysis it can be concluded that
most of the respondents are preferred to take policies for the purpose of Tax Benefits.
 55

CHART 5.1.15 PURPOSE OF TAKING POLICIES

FREQUENCY
57%
60 46%
50 38%
40
30 22%
19%
20 6%
10 1%
0
TAX BENEFITS

INVESTMENTS

PREMIUM
SCHEMES
RISK FACTOR

OTHERS
BRAND
AMOUNTS

TABLE 5.1.16 PREFERRED PREMIUM PERIOD

 56

PERIOD FREQUENCY PERCENTAGE )%(

Monthly 48 48
Annual 21 21
Half yearly 16 16
Quarterly 15 15
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION

Table shows, among the 100 sample respondents, 48% of the respondents preferred monthly
premium payment period and 21% of the respondents preferred annual premium payment period.
Thus from the analysis it can be concluded that 48% of the respondents preferred monthly premium
payment period.

CHART 5.1.16 PREFERRED PREMIUM PERIOD

 57

60
48%
50

FREQUENCY
40
30
21%
20 16% 15%

10
0
MONTHLY ANNUAL HALF YEARLY QUARTERLY

PERIODS

TABLE 5.1.17 PREFERRED PREMIUM MODE OF PAYMENTS

 58

MODE RESPONDENTS )%( PERCENTAGE

Salary deduction 58 58
Through agent 11 11
By cash 7 7
By cheque 18 18
Online payment 6 6
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION

Table shows, 4.7 among the 100 sample respondents, 58% of the respondents preferred
Salary Deduction as mode of payment and 18% of the respondents preferred cheque as the mode
payment. Thus from the analysis it can be concluded that 58% of the respondents preferred Salary
Deduction as mode of payment.
 59

CHART 5.1.17 PREFERRED PREMIUM PAYMENTS

70
58%
60
FREQUENCY

50
40
30
18%
20
11%
10 7% 6%

0
Salary Deduction Through Agent By Cash By Cheque Online Payment

PAYMENTS

TABLE 5.1.18 PREFERRED DELIVERY OF POLICY DOCUMENTS

 60

POLICY DOCUMENTS RESPONDENTS )%( PERCENTAGE

Through agent 43 43
Personally insurance company's 32 32
By post 22 22
Online 3 3
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION

Table shows, among the 100 sample respondents, 43% of the respondents preferred to get the
documents through agent and 32% of the respondents preferred to get the documents from the
insurance office itself. Thus, from the analysis it can be concluded that 43% of the respondents
preferred to get the documents through agent.

CHART 5.1.18 PREFERRED DELIVERY OF POLICY DOCUMENTS

 61

50 43%
FREQUENCY
40
32%
30
22%
20

10 3%

0
Online By Post Through Agent Insurance company

DELIVERY POLICY DOCUMENTS

TABLE 5.1.19 PREFERRED MODE OF SETTELEMENT

MODE RESPONDENTS PERCENTAGE )%(

 62

By cheque 75 75
By cash 19 19
On account transfer 6 6
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION

Table shows, among the 100 sample respondents, 75% of the respondents preferred to get the
claims settlement through by cheque and 19% of the respondents preferred to get the claims
settlement through cash. Thus from the analysis it can be concluded that 75% of the respondents
preferred to get the claim settlement through cheque.

CHART 5.1.19 THE PREFERRED MODE OF SETTELEMENT

 63

80 75%
FREQUENCY 70
60
50
40
30 19%
20
6%
10
0
By Cheque By Cash On Account
transfer
MODE OF SETTLEMENT

TABLE 5.1.20 PREFERRED INSURANCE COMPANY

 64

SECTOR FREQUENCY PERCENTAGE )%(

Public sector 75 75
Private sector 25 25
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION

Table shows, among the 100 sample respondent 75% of respondents are preferred public
sector and 25% of the respondents are preferred private sector. Thus from the analysis it can be
concluded that 75% of respondents are preferred public sector.

CHART 5.1.20 PREFERRED INSURANCE COMPANY

 65

80

70

60
FREQUENCY

50

40

30

20

10

0
PUBLIC SECTOR PRIVATE SECTOR

PREFERRED INSURANCE COMPANY

 66

TABLE 5.1.21 PREFERENCES FOR FUTURE POLICY

PARTICULARS NO. OF RESPONDENTS PERCENTAGE )%(

Yes 34 34
No 66 66
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION

Table shows, among the 100 sample respondent 66% of respondents are preferred to take
policy in future and 34% of the respondents are not preferred to take policies in future. Thus from the
analysis it can be concluded that 66% of respondents are preferred to take policy in future.

CHART 5.1.21 PREFERENCES FOR FUTURE POLICY

 67

70 66%

60

50
FREQUENCY

40
34%

30

20

10

0
YES NO
PERFERENCE OF FUTURE POLICY
 68

TABLE 5.1.22 HOLDING OF INSURANCE POLICY

HOLDING POLICIES RESPONDENTS PERCENTAGE )%(

Yes 98 98
No 2 2
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION
As it could be seen in Table among the 100 sample respondent 98% of respondents are
currently having policies and 2% of the respondents are not having policies. Thus from the analysis it
can be concluded that 98% of respondents are currently having policies.
 69

CHART 5.1.22 HOLDING OF INSURANCE POLICY

120

98%
100
FREQUENCY

80

60

40

20
2%
0
YES NO

HOLDING OF POLICY
 70

TABLE 5.1.23 CURRENT TYPE OF POLICY

POLICIES RESPONDENTS PERCENTAGE (%)

Wealth Plus health plan 57 57
Child secure plan 56 56
Market rate of return plan 50 50
Golden year plan 30 30
Automatic Investment plan 16 16
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION
Table shows, among the 98 sample respondents, 57 respondents are having Wealth plus
health plan policies and 54 respondents are having Child secure plan policies and 50 respondents are
having Market rate of return plan policy. Thus from the analysis it can be concluded that 57
respondents having Wealth Plus health plan policy.

CHART 5.1.23 CURRENT TYPE OF POLICY

 71

60 57% 56%
50%
50
RESPONDENTS
40
30%
30

20 16%

10

0
Wealth+ Health Child Seure Market Rate Golden Year Automatic
Plan Plan Plan Plan Investment Plan

CURRENT TYPE OF POLICY ORDER

TABLE 5.1.24 PRESENT PURPOSE OF TAKING POLICIES

 72

PURPOSE YES PERCENTAGE

Tax Benefits 59 59
Investment 39 39
Risk Factor 38 38
Market Returns 30 30
Health Plan 18 18
Retirement benefits 8 8
TOTAL 100 100
(Source: Primary Data)

INTERPRETATION
Tables among the 100 sample respondents, 59 respondents are having policies for the
purpose of tax savings and 39 respondents are having policies for the purpose of Investment. Thus
from the analysis it can be concluded that 59 respondents are having policies for the purpose of tax
savings.

CHART 5.1.24 PRESENT PURPOSE OF TAKING POLICIES

 73

70
59%

PERCENTAGE
60
50
39% 38%
40 30%
30
18%
20
8%
10
0
Tax Benefits Investment Risk factor Market Health plan Retirement
returns Benefits

PURPOSE OF TAKING POLICES

CHAPTER-VI
 74

6.1 FINDINGS OF THE STUDY

SPECIFIC FINDINGS
 Majority (66%) of respondents fall in the age group of 35-45.

 The male respondents constituted the major position (73%).

 Majority (99%) of respondents who are married.

 Majority (57%) of respondents are in the experience group of 3-5.

 The respondents who earn between 1,50,000 - 3,00,000 constituted the major position (50%).

 100% of respondents are aware of the life insurance policies.

 85% of the respondents came to know about insurance polices through agents.

 Most of the respondents are aware of LIC and in the private sector RELIANCE Life
insurance.

 Most of the respondents are preferred to take policies for the purpose of Tax benefits.

 48% of the respondents preferred monthly premium payment period.

 58% of the respondents preferred Salary Deduction as mode of payment.

 43% of the respondents preferred to get the documents through agent.

 Most of the respondents ranked premium amount as first followed by period of premium and
feature of policy.

 75% of respondents are preferred public sector.

 Most of the respondents are selecting the agent's by knowledge of policy followed by
convincing approach and investment advice.

 Most of the respondents are selecting the insurance company first to fulfillment of customer
needs followed by availability of product and services and brand name.
 66% of respondents are preferred to take policy in future.
 75

 Most of the respondents are ranked Child Secure Plan as first.

 Most of the respondents are preferred to take Child Secure and Automatic Investments.

 28 respondents preferred to take Children's policy.

 57 respondents having Child Secure plan.

 55 of the respondents preferred to take LIC as there company and among the private
company RELIANCE as their company.

 98% of respondents are currently having policies.

 64 of the respondents are having policies in LIC and RELIANCE is in the second place when
compared to others private players.

 45 of the respondents having two policies.

 59 respondents are having policies for the purpose of tax benefits.

 51 respondents are paying monthly premium payment.

 34 respondent's annual premium payment is in between Rs 30,000-50,000.

 The respondents are satisfied with the current agent services.

 86 respondents are got scores in between 22 – 28, so the respondents are satisfied with the
agent service.

 The respondents are satisfied with the current company services.

 87 respondents are got scores in between 40 – 52, so the respondents are satisfied with the
insurance company.

6.2 SUGGESTIONS OF THE STUDY

 76

 More new products and services should be innovated through financial engineering process.

 To increase the market share of LIC they can introduce new policies with low premium to
rural people.

 Based on the LIC Life Insurance unique factors like more interest & tax saving facilities.
They can tie-up with various public/private sectors to cover the insurance needs of the

employees.

 Periodical market survey should be conducted to enhance the satisfaction.

 77

CHAPTER-VII

CONCLUSIONS

Insurance sector is one of the most booming sectors in India. The penetration level of
insurance in India is only 2.5% when compared to 9-15% in the developed nations. There is a huge
market for the Insurance products in the future in India.

In today insurance world, currently the LIC Life insurance is developed in rather than other
insurance company. In Wealth + Health plan is better than other insurance medical policy.

All the insurance company produced medical policy but the LIC Life Insurance provides
customer based product or medical policy.

The project was very useful to the researcher to understand the life insurance business.
 78

APPENDICES
ANNEXURE-1

QUESTIONNAIRE

Name: _____________________________
Age:
a) Below 25 b) 25- 35 c) 35 -45 d) Above 50
Gender: a) Male b) Female.
Marital Status: a) Married b) Unmarried
Occupation: a) Public Sector b) Private Sector c) Business d) Others
Designation: ______________________________
Experience (in years)
a) Less than 2 years b) 2-3 years c) 3-5 years d) Above 5 years
Annual Income:
a) Less than Rs. 1,50,000 b) Rs.1,50,000 – 3,00,000 c) Rs.3,00,000 – 5,00,000
d) Above Rs.5,00,000

1. Do you know about Life Insurance Polices?

a) Yes b) No

2. Do you have any Life Insurance Polices?

a) Yes b) No

3. If yes, name of the Insurance Company in which you have the Policy?
a) Bharati Axa b) Birla Sunlife c) HDFC d) ICICI
e) Bajaj Alliance f) ING Vysya g) Kotak h) Metlife
i) Shriram Life j) SBI Life k) Tata AIG
l) Reliance Life Insurance

4. Would you like to purchase LIC Life Insurance product in the next year?
a) Yes b) No
 79

If No, mention the reason ___________________________________

5. Which insurance company do you prefer?

a) Public Sector b) Private Sector

6. How many polices do you have?

a) Less than 2 b) 2-5 c) 6-10 d) More than 10

7. What is the period of premium payment?

a) Annual b) Half Yearly c)Monthly d) Quartly
e) One time f) any other (Please specify)

8. Do you know about LIC Life Insurance?

a) Yes b) No

9. How did you know the LIC Life Insurance?

a) Advertisement b) Friends c) Family d) Advisor e) Others

10. Have you taken any policy from LIC Life Insurance?
a) Yes b) No
If yes, how many policies you have taken?
a) Less than 2 b) 2-5 c) 6-10 d) More than 10
11. Which type of product you prefer to buy?
a) Market rate of return plan d) Golden year investment plan
b) Child secure plan e) Automatic investment plan
c) Wealth plus health plan
12. What is the most important reason for purchasing LIC Life Insurance product?
a) Quality b) Premium c) Brand
d) Risk factor employee e) Schemes (Policies) f) Interest
g) Tax Benefit

13. Could you please indicate your investment across option?

a) Postal savings b) Fixed deposits
 80

c) Shares d) Recurring deposits

e) Mutual funds f) Real estate

14. Are you happy with the services of your present Life Insurance Company?
a) Yes b) No

15. If No, what made you think So? give reasons?

a) Advisors follow up not well
b) Untimely intimation of renewal premium
c) No promptness in delivery
d) Longer duration of processing
e) Not transparent

Others ____________________

16. What are the three best features you could expect from our product?
Life time risk low with endorsement
Endorsement alone
Risk cover alone
Any other

17. In considering the overall direction of the company how the company marketing effects
matching its customer expectations?
Marketing Effects Excellent VeryGood Good Fair
a) The company’s vision & direction
b) Creating aware of financial strength of the company
c) The efficiency of work flow in the company
d) Company marketing tactics in reaching customer
e) Regularly introduction of new product
f) Company focusing improving customer satisfaction

18. Which media do you prefer is most effective to deliver our message?
a) Television b) Newspapers c) Magazines
d) Online e) Word of mouth

19. What message is being received from our advertising?

 81

a) Good service b) Good product c) Discount

d) Product warranty e) Seasonal offer f) Free package

20. Which tool do you prefer to purchase our product?

a) Offer b) Product warranty c) Interest
d) Free gifts e) Discounts f) Tax Benefit

21. Which policies you buy for your family?

a) Market rate of return plan b) Golden year investment plan
c) Child secure plan d) Automatic investment plan
e) Wealth plus health plan

22. Which policy you wish to replace?

a) Market rate of return plan d) Golden year investment plan
b) Child secure plan e) Automatic investment plan
c) Wealth plus health plan

23. Which factor do you expect more from LIC Life Insurance products?
Schemes Quality Price Service Product Warranty Sales promotion
Market rate of return plan
Golden year investment plan
Child secure plan
Automatic investment plan
Wealth plus health plan

24. Compared to other product availability how do you feel about you say the product is?
______________________________________________________________

25. If any suggestions __________________________________________

BIBLIOGRAPHY

REFERENCE BOOKS
 82

 Khan. M. Y, FINANCIAL SERVICES, Tata McGraw-Hill, New Delhi

 Gordon and Natarajan, Financial Markets and Services, Himalaya Publishing House,

Mumbai

 V.A Avadhani, Marketing of Financial Services, Himalaya Publishing House, Mumbai

WEBSITES

 www.reliancelifeinsurance.com

 www.wikipedia.com

 www.yahoo.com

 www.google.com

 www.irda.com

REPORTS

 IRDA Reports