ARESEARCHONCONSUMERPERCEPTIONABOUT

LIFEINSURANCEPOLICIES

PROJECTREPORTSUBMITTEDINPARTIALFULFILMENTOFTHE
REQUIREMENTSFORTHEAWARDOFMASTERSDEGREEIN
BUSINESSADMINISTRATIONOFUNIVERSITYOFBANGALORE

SUBMITTED BY
JacobManuel
MBA
Reg.No.05MJCM6013

UndertheGuidanceof
Mrs.Vchandrakala

LISTOFTABLES
TableNo.

NameoftheTable
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

12.
13.

14.
15.

AgeoftheRespondents
Differentiationofthe
respondentsintomaleand
female
Different
iationoftherespondents
basedontheiroccupation
Tableshowingincome
groupofrespondents
Differentiationofthe
respondentsaccordingto
theirassetsowned
Marketshareofdifferent
lifeinsurancecompanies
Tableshowingattributes
fromrespondents
Factorswhichinfluenced
tobuythelifeinsurance
policy
Valueofrespondentslife
insurancepolicy
Respondentspreferenceto
investtheirmoney
Satisfactionofthe
respondentswiththe
currentlifeinsurance
company
Ratingoftheservice
offeredbyrespondents
lifeinsurancecompany
Consumerswillingnessto
communicateservice
offeredbytheirlife
insurancecompany
Numberoflifeinsurance
companyKnownby
respondents
Scoreofdifferentlife
insurancecompanies

PageNo.
39
41
43
45
47
49
51
53
55
57
59

61
63

65
67

LISTOFGRAPHS
GraphNo.

NameoftheGraph
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

12.
13.

14.
15.

AgeoftheRespondents
Differentiationofthe
respondentsintomaleand
female
Differentiationofthe
respondentsbasedontheir
occupation
Graphshowingincome
groupofrespondents
Differentiationofthe
respondentsaccordingto
theirassetsowned
Marketshareofdifferent
lifeinsurancecompanies
Graphshowingattributes
fromrespondents
Factorswhichinfluenced
tobuythelifeinsurance
policy
Valueofrespondentslife
insurancepolicy
Respondentspreferenceto
investtheirmoney
Satisfactionofthe
respondentswiththe
currentlifeinsurance
company
Ratingoftheservice
offeredbyrespondents
lifeinsurancecompany
Consumerswillingnessto
communicateservice
offeredbytheirlife
insurancecompany
Numberoflifeinsurance
companyKnownby
respondents
Scoreofdifferentlife
insurancecompanies

PageNo.
40
42
44
46
48
50
52
54
56
58
60

62
64

66
68

1.1

INTRODUCTIONTOTHESTUDY

Everyoneisexposedtovariousrisks.Futureisveryuncertain,butthereiswayto
protectonesfamilyandmakeoneschildrensfuturesafe.LifeInsurancecompanies
helpustoensurethatourfamilysfutureisnotjustsecurebutalsoprosperous.

This studytitledStudyofConsumersPerceptionaboutLifeInsurancePolicies
enables the Life Insurance Companies to understand how consumers perception
differsfrompersontoperson.Howaconsumerselects,organizesandinterpretsthe
servicequalityandtheproductqualityofdifferentLifeInsurancePolicies,offeredby
variousLifeInsuranceCompanies.
1.2

BACKGROUNDOFTHESTUDY
LifeInsuranceisacontractforpaymentofasumofmoneytothepersonassuredon
thehappeningoftheeventinsuredagainst.Usuallytheinsurancecontractprovides
forthepaymentofanamountonthedateofmaturityoratspecifieddatesatperiodic
intervalsoratunfortunatedeathifitoccursearlier.Obviously,thereisapricetobe
paidforthisbenefit.Amongotherthingsthecontractsalsoprovidesforthepayment
ofpremiums,bytheassured.
LifeInsuranceisuniversallyacknowledgedas atooltoeliminaterisk,substitute
certaintyforuncertaintyandensuretimelyaidforthefamilyintheunfortunateevent
ofthedeathofthebreadwinner.Inotherwords,itisthecivilizedworldspartial
solutiontotheproblemscausedbydeath.Lifeinsurancehelpsintwowaysdealing

withprematuredeath,whichleavesdependentfamiliestofendforthemselvesand
oldagewithoutvisiblemeansofsupport.

KEYPLAYERSINTHEINSURANCEINDUSTRY
1.

LIC

2.

ICICIPRUDENTIAL

3.

TATAAIG

4.

BIRLASUNLIFEINSURANCE

5.

MAXNEWYORK

6.

SAHARALIFE

7.

SBILIFEINSURANCE

8.

AXA(AIRTEL,I.E.BHARTIGROUPS)

9.

OMKOTAK

10.

ALLIANZBAJAJ

11.

AVIVA

12.

INGVYSYA

13.

RELIANCELIFEINSURANCE

14.

METLIFEINSURANCE

15.

SRIRAMSANLAM

16

HDFCSTANDARDLIFEINSURANCE

DifferentLifeInsurancePlans
1) Protectionplussavingsplan
2) ProtectionplusLiquidityplan
3) ProtectionplusAssetBuildingplan
4) InvestmentPlan
5) Pensionplanetc,

Thisstudywillhelpthecompaniestounderstandtheconsumersperceptionabout
differentlifeinsurancepolicies.

BenefitsofLifeInsurancePolicies.

1) Superiortoanyothersavingsplan:
Unlike any other savings plan, a life insurance policy affords full protection
against risk of death. In the event of death of a policy holder, the insurance
companymakesavailablethefullsumassuredtopolicyholdersnearanddear
ones. In comparison, any other savings plan would amount to only the total
savingsplanaccumulatedtilldate.Ifthedeathoccursprematurely,suchsavings
canbemuchlessthanthesumassuredwhichmeansthatthepotentialfinancial
losstothefamilyissizable.
2) EncouragesandForcesThrifts:
A saving deposit can easily be withdrawn. The payment of life insurance
premium, however, is considered sacrosanct and is viewed with the same
seriousnessasthepaymentofinterestonamortgage.Thus,alifeinsurancepolicy
ineffectbringsaboutcompulsorysavings.
3) Easysettlementandprotectionagainstcreditors:
Alifeinsurancepolicyistheonlyfinancialinstrumenttheproceedsofwhichcan
beprotectedagainsttheclaimsofacreditoroftheassuredbyeffectingavalid
assignmentofthepolicy.
4) AdministeringtheLegacyforBeneficiaries:
Speculativeorunwiseexpensescanquicklycausetheproceedstobesquandered.
Severalpolicieshaveforeseenthispossibilityandprovideforpaymentovera
periodofyearsorinacombinationofinstallmentsandlumpsumamounts.

5) ReadyMarketabilityandsuitabilityforquickborrowing:
Alifeinsurancepolicycan,afteracertaintimeperiod(generallythreeyears)be
surrenderedforacashvalue.Thepolicyisalsoacceptableasasecurityfora
commercialloan,forexample,astudentloan.
6) DisabilityBenefits:
Deathisnottheonlyhazardthatisinsured;manypoliciesalsoincludedisability
benefits.Typically,theseprovideforwaiveroffuturepremiumsandpaymentof
monthlyinstallmentsspreadoveracertaintimeperiod.
7) AccidentaldeathBenefits:
Manypoliciescanalsoprovideforanextrasumtobepaid(typicallyequaltothe
sumassured)ifdeathoccursasaresultofaccident

2.1STATEMENTOFTHEPROBLEM
This Study will help us to understand the consumers perception about life
insurance policies. This study will help the companies to understand, How a
consumer selects, organizes and interprets the Quality of service and product
offeredbylifeinsurancecompanies.

2.2SCOPEOFTHESTUDY
ThisstudyislimitedtotheconsumerswithinthelimitofBangalorecity.
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
customersneeds.
2.3 NEEDFORTHESTUDY
1)

The deeper the companys understanding of consumers needs and

perception,theearliertheproductisintroducedaheadofcompetition,the
greatertheexpectedcontributionmargin.Hencethestudyisveryimportant.

2)

Consumermarketsandconsumerbuyingbehaviorcanbeunderstoodbefore
soundproductandmarketingplansaredeveloped

3)

This study will help companies to customize the service and product,
accordingtotheconsumersneed.

4)

Thisstudywillalsohelpthecompaniestounderstandtheexperienceand
expectationsoftheexistingcustomers.

5)

Apart from creating, manufacturing and distribution capabilities for life

insuranceproducts,anindepthstudyoftheconsumers,theirpreferencesand
demand for their product is very necessary for setting up an efficient
marketingnetwork.

2.4 OBJECTIVEOFTHESTUDY
1. Ascertaintheprofileandcharacteristicsofpotentialbuyers.
2. Togainathoroughunderstandingoftheattributesthatprospectivebuyers
ascribetolifeinsurancepolicies.
3. Tohaveaninsightintotheattitudesandbehaviorsofcustomers.
4. Tofindoutthedifferencesamongperceivedserviceandexpectedservice.
5. Toproduceanexecutiveservicereporttoupgradeservicecharacteristics
oflifeinsurancecompanies.
6. Tounderstandconsumerspreferences.
7. Toaccessthedegreeofsatisfactionoftheconsumerswiththeircurrent
brandofInsuranceproducts.

2.5REVIEWOFLITERATURE:

Tocarrytheresearchworktheresearcherhasgonethroughafewreports,
books,journalsandwebsites.ThedetailsregardingLifeInsuranceIndustry,
history,originandgrowthoftheindustryis alsotakenfromsomebooks,
magazinesetc.Thesourcesofthisinformationisasfollows:
CataloguesandBroachersfromvariouslifeinsurancecompanies.
Articlesfrommagazinesandnewspaper.
Informationfromvariouswebsites.

2.6 RESEARCHDESIGN:

Aresearchdesignisabasicplanwhichguidestheresearcherinthecollection
and analysis of data required for practicing the research. Infant the research
designistheconceptualstructurewhichtheresearchisconducted.Itconstitutes
theBluePrintforthecollection,measurementandanalysisofthedata.The
studyiscarriedouttounderstandtheConsumerPerceptionaboutlifeinsurance
policiesinKottayamCity.Forthisstudytheresearcherusedexploratoryresearch
design.Thisresearchcovers50consumersinKottayamcity,belongingtovarious
agegroups.

2.7SAMPLEDESIGN:
The process ofdrawingasamplefroma largepopulation is calledsampling.
Populationreferstothetotalofitemsaboutwhichinformationisdefined.Well
selected samples may reflect fairly and accurately the characteristics of the
population.
2.7.1) SamplingUnit:
Thesampleunitofthissurveywasthecustomershavinglifeinsurancepoliciesin
KottayamCity,Kerala.
2.7.2) SampleSize:
Thesamplesizewas50customersofdifferentlifeinsurancecompanies,from
variouspartsoftheKottayamCity
2.7.3) SamplingTechniqueAdopted:Convenientsampling
2.7.4) :Sourceofdata
After identifying and defining the research problem and determining specific
informationrequiredtosolvetheproblemtheresearcherwilllookforthetypeand
sourcesofdatawhichmayyieldthedesiredresults,whiledecidingaboutthe
methodofdatacollectiontobeusedforthestudy,therearetwotypesofdata.
Theyareasfollows
2.8.1)PrimaryData:
Primarydataarethosewhicharecollectedforthefirsttime.Primarydatais
collectedbyframingquestionnaires.Thequestionnairecontainedquestions
whicharebothopenendedandclosedended.Openendedquestionsare

questionsrequiringanswersintherespondersownwords.Closedended
questionsarethosewhereintherespondenthastomerelycheckthe
Appropriateanswerfromalistofoptionsavailable.Anydoubtsraisedbythe
Respondentswereclarifiedtogettheperfectanswersfromthedistributors.
Openendedquestionsyieldedmoreinsightfulinformation,whereasclosed
Endedquestionswererelativelysimpletotabulateandanalyze.
2.8.2)SecondaryData:
Secondarydatameansdatathatarealreadyavailablei.e.theyrefertothedata
whichhavebeencollectedandanalyzedbysomeoneandcansavebothmoney
andtimeoftheresearcher.Secondarydatamaybeavailableintheformof
companyrecords,tradepublications,librariesetc.Secondarydatasourcesare
asfollows:
CompanyReports

DailyNewspaper
StandardTextbook
VariousWebsites
2.9 FIELDWORK
An interviewschedule and wellstructured questionnaire is administered to the
targetrespondentstocollectprimarydata(Copyofquestionnaireisattachedinthe
appendix).Openandcloseendedquestionsareusedinthequestionnaire.Theorder
ofthequestionsisinsuchamannerthattheybeginwithsimplequestionsandlead
onthequestionsthatneededmoreinvolvementfromrespondents.Thesecondary

dataarecollectedfromperiodicals,magazines,journalsandinternet.

2.10 OPERATIONALDEFINITIONSOFTHESTUDY
1. Marketing:
Marketing is a social and managerial process by which individuals and
group obtain what they need and want through creating, offering and
exchangingproductsofvaluewithothers.
2. MarketingManagement:
MarketingManagementistheprocessofplanningandexecutingthe
conception,

pricing,promotionanddistributionofindividualand

organizationalgoals.
3. MarketingResearch:
Marketingresearchisthesystematicandobjectivesearchfor,andanalysis
ofinformationrelevanttotheidentificationandsolutionofanyproblemsin
thefieldofmarketing.
4. ConsumerBehavior:
Consumerbehavioristhestudyofhowindividualsmakedecisionstospend
their available resources [time, money, efforts] on consumption related
items.
5. ConsumerResearch:
Consumerresearchisthemethodologyusedtostudyconsumerbehaviour.
6. MarketSegmentation:
Market segmentation is the process of dividing a market in the distinct
subsetsofconsumerwithcommonneedsorcharacteristicsandselecting
oneormoresegmentstotargetwithdistinctmarketingmix.

7. Positioning:
Positioningistheactofdesigningthecompanysofferingandimagesothat
theyoccupyameaningfulanddistinctcompetitivepositioninthetarget
consumersmind.
8. Perception:
Perceptionistheprocess bywhichanindividualselects,organizes,and
interpretsinformationinputtocreatemeaningfulpictureoftheworld.Fora
marketertoinfluenceamotivatedbuyertobuytheirproductsratherthana
competitorstheymustbecarefultotaketheperceptionprocessintoaccount
whiledesigningtheirmarketingcampaigns.Perceptionthereforeinfluence
whatproductconsumerbuys.
9.

Brand:
Abrandisaname,term,sign,symbol,ordesignoracombinationofthem,
usedtoidentifythegoodsorservicesofonesellerorgroupofsellerandthe
differentiatethemfromthoseofcompetitors.

10.Attitude:
An attitude is a person enduring favourable or unfavorable evaluation,
emotionalfeeling,andactiontendenciestowardssomeobjectoridea
11.Values:
Avalueisaconceptofthedesirable.Aninternalizedstandardofevaluation
a person possession. These standards determine or guide an individual
evaluationofthemanyobjectsencounteredineverydaylife.

12.Attributes:
Attributesarethestrengthsandweaknessesofabrandthatcreateattitudes
andareusedbyconsumerstochoosebetweenbrandsthatarerelatively
similarorfunctionallyequivalent.
2.11

LIMITATIONSOFTHESTUDY
Althoughthestudywascarriedoutwithextremeenthusiasmandcareful
planningthereareseverallimitationswhichhandicappedtheresearchviz.,
1.

TimeConstraints:
Thetimestipulatedfortheprojecttobecompletedislessandthus
there are chances that some information might have been left out,
however due care is taken to include all the relevant information
needed.

2.

Samplesize:
Due to time constraints the sample size was relatively small and
would definitely have been more representative if I had collected
informationfrommorerespondents.

3.

Accuracy:
Itisdifficulttoknowifalltherespondentsgaveaccurateinformation;
somerespondentstendtogivemisleadinginformation

2.12OVERVIEWOFTHEREPORT
Chapter1:Introduction
Thischaptertalksabouttheimportanceoflifeinsurancepoliciesandconsumer
perceptionoflifeinsurancepolicies.
Chapter2:Designofthestudy
DesignofthestudyincludesStatementofproblem,Scopeofthestudy,Objectives
ofthestudy,Reviewofliterature,Researchdesign,Sampledesign,Sources of
data,Fieldwork,Operationaldefinitionofthestudy,Limitationsofthestudy.
Chapter3:ProfileofRespondents:
ThischapterviewstheoriginandgrowthoftheIndustry,PresentstatusofIndustry,
profileofthecompanies,andprofileofsampleunit.
Chapter4:Analysisandinterpretation
In this chapter the data collected is compiled, processed and analyzed. Brief
descriptionsofthefindingsaregiveninthischapter.
Chapter5:SummaryofFindingsandsuggestions
Thischaptercontainsthesummaryoffindingsandsuggestionsaboutimproving
theservicequalityandproductquality.

3.1PROFILEOFTHEINDUSTRY:
HistoryandDevelopmentofLifeInsurance
1. LifeInsurance,initspresentform,cametoIndiafromtheUnitedKingdom
with establishment of a British firm, Oriental Life Insurance Company in
Calcuttain1818,followedbyBombayLifeAssuranceCompanyin1823,the
Madras Equitable Life Insurance society in 1829 and Oriental Government
securityAssurancecompanyin1874.Priorto1871,IndianLivesweretreated
as substandard and charged an extra premium of 15% to 20% . Bombay
MutualLifeAssuranceSociety,aIndianinsurerwhichcameintoexistencein
1871wasthefirsttocoverIndianlivesatnormalrates.
2. TheIndianlifeAssuranceCompaniesAct,1912wasthefirststatutorymeasure
to regulate life insurance business. Later, in 1928, the Indian Insurance
Companies Act was enacted, to enable the government to collect statistical
informationaboutbothlifeandnonlifeinsurancebusinesstransactedinIndia
by Indian and foreign insurers, including the provident insurance societies.
Comprehensive arrangement was, however, brought into effect with the
enactment of the Insurance Act, 1938. Efforts in this direction continued
progressivelyandtheactwasamendedin1950,makingfarreachingchanges,
suchasrequirementofequitycapitalforcompaniescarryingonlifeinsurance
business,ceilingonshareholdingsinsuchcompanies,submissionofperiodical
returnrelatingtoinvestmentsandsuchotherinformationtothecontrollerof
insuranceashemanycallfor,appointmentofadministratorformismanaged

companies,ceilingonexpensesofmanagementandagencycommission,

incorporationoftheInsuranceassociationofIndiaandformationofcouncils
andcommitteesthereof.
3. By1956,154Indianinsurers,16nonIndianinsurersand15providentsocieties
werecarryingonlineinsurancebusinessinIndia.On19th January1956,the
managementoftheentirelifeinsurancebusinessof229Indianinsurersand
providentinsurancesocietiesandtheIndianlifeinsurancebusinessof16non
IndianLifeinsurancecompaniesthenoperatinginIndia,wastakenoverbythe
centralGovernmentandthennationalizedon1stSeptember1956whentheLife
InsuranceCorporationcameintoexistence.
ReformsandImplications
The liberalization 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.TheInsuranceRegulatoryandDevelopmentAuthoritybillwillclear
thewasforprivateentryintoinsuranceasthegovernmentiskeentoinviteprivate
sector participation into insurance. To address those concerns, the bill requires
direct insurers to have a minimum paidup capital of Rest. 1 billion, to invest
policyholdersfundsonlyinIndia;andtorestrictinternationalcompaniestoa
minorityequityholdingsof26percentinanynewcompany.IndianPromoterswill
alsohavetodilutetheirequityholdingto26percentovera10yearperiod.
Overthepastthreeyear,around30companieshaveexpressedinterestinentering
the sector and many foreign and Indian companies have arranged alliances.
Whethertheinsurerisoldornew,privateorpublic,expandingthemarketwill

Present challenges. A number of foreign Insurance Companies have set up

representativeofficesinIndiaandhavealsotiedupwithvariousassetmanagement
companies.SomeoftheIndiancompanieswhichhavetiedupwithInternational
companiesanditsmarketsharesare:

MARKETSHARESOFDIFFERENTFIRMS

Company

Promoter

Totalcapital
(Rscrore)

Marketshare
Basedon
Premium

AMPSanmar

Reliancegroup

217

0.54

Avivalife

Dabur

459

1.12

BajajAllianz

Bajajauto

368

6.12

HDFCStandard

HDFC

250

2.96

BirlaSunLife

AdityaBirla

400

1.84

1085

7.11

440

0.63

260

0.71

500

1.32

355

0.4

100

0.06

Group
ICICI

ICICIBank

Prudential
INGVysya
KotakMahindra,
OldMutual

VysyaBank
KotakMahindra
Bank

MaxNewYork

MaxIndia

MetLife

Jammu&Kashmir
Bank

SaharaLife

SaharaIndia

Insurance
SBILife

SBI

350

1.52

TataAIG

Tatagroup

381

1.78

ThelikelyimpactofopeningupofIndiasinsurancesectoristhatprivateplayers
mayswampthemarket.Internationalinsurersoftenderiveasignificantpartof
their business from multinational operations. Multinational insurers are indeed
keenly interested as; perhaps their home markets are saturated while emerging
countrieshavelowinsurancepenetrationandhighgrowthrates.Asmallshareofa
largeandgrowingmarketcanbeprofitableandattractive.
Typeoflifeinsurancepolicies
Wholelifeinsurance
Wholelifeisaformofpermanentinsurance,withguaranteedratesandguaranteed
cashvalues.Itistheleastflexibleformofpermanentinsurance.
Universallifeinsurance
Universallifeissimilartowholelife,exceptthatyoucanchangethedeathbenefit
(the money paid to the beneficiary when the insured person dies), the amount of
premiumsandhowoftenyoupaythepremiums.
Variablelifeinsurance
Variablelifeinsuranceistheriskiestformofpermanentinsurance,butitcanalsogive
youthebestreturnforyourmoney.Essentially,thelifeinsurancecompanywillinvest
yourinsurancepremiumsforyou.Iftheinvestmentsdowell,thedeathbenefitand
cashvalueofthepolicygoup.Iftheydopoorly,theygodown.It'salittlelikeputting
yoursavingsintothestockmarket.

Grouplifeinsurance
Manycompaniesallowtheiremployeestobuygrouplifeinsurancethroughthecompany.

Usually,youcangetverygoodratesforthisinsurancebutyouhavetogivetheinsuranceup
whenyoustopworkingthere.Forthatreason,groupinsurancecanbeagoodwaytobuya
littleextralifeinsurance,butitdoesnotmakesensetomakeityourmainpolicy.

Thereareanumberofpoliciesforspecificinsuranceneeds.Someoftheseinclude:

1. Familyincomelifeinsurance.
Thisisadecreasingtermpolicythatprovidesastatedincomeforafixedperiodof
time,iftheinsuredpersondiesduringthetermofcoverage.Thesepayments
continueuntiltheendofatimeperiodspecifiedwhenthepolicyispurchased.

2. Familyinsurance.
Awholelifepolicythatinsuresallthemembersofanimmediatefamily
husband,wifeandchildren.Usuallythecoverageissoldinunitsperperson,
withtheprimarywageearnerinsuredforthegreatestamount.

3. Seniorlifeinsurance.
Alsoknownasgradeddeathbenefitplans,theyprovideforagradedamounttobe
paidtothebeneficiary.Forexample,ineachofthefirstthreetofiveyearsafter
theinsureddies,thedeathbenefitslowlyincreases.Afterthatperiod,theentire
deathbenefitispaidtothebeneficiary.Thismightbeappropriateifthe
beneficiaryisnotabletohandlealargeamountofmoneysoonafterthedeath,
butwouldbeinabetterpositiontohandleitafewyearslater.
4.Juvenileinsurance.

Thisislifeinsuranceonachild.Coverageispaidforbyanadult,usuallythe

parentsorguardians.Suchpoliciesarenotconsideredtraditionallifeinsurance
becausethechildisnotproducinganincomethatneedstobeprotected.However,
bybuyingthepolicywhenthechildisyoung,theparentsareabletolockinan
extremelylowpremiumrateandallowmanymoreyearsoftaxdeferredcashvalue
buildup.
4. Creditlifeinsurance.
Thisinsuranceisdesignedtopayoffthebalanceofaloanifyoudiebeforeyou
haverepaidit.Creditlifeinsuranceisavailableformanykindsofloansincluding
studentloans,autoloans,farmequipmentloans,furnitureandotherpersonal
loansincludingcreditcards.Creditlifeinsurancecanbepurchasedbyan
individual.Usuallyitissoldbyfinancialinstitutionsmakingloans,likebanks,to
borrowersatthetimetheytakeouttheloan.Ifaborrowerdies,theproceedsof
thepolicyrepaystheloandirectlytothelenderorcreditor.
5. Mortgageinsurance
Thisdecreasingtermcoverageisdesignedtopayofftheunpaidbalanceofa
mortgageifyoudiebeforethemortgageispaidoff.Premiumsaregenerallylevel
throughoutthetermofthepolicy.Thepolicyisusuallyindependentofthe
mortgage,meaningthatthefinancialinstitutiongrantingthemortgageisseparate
fromtheinsurancecompanyissuingthepolicy.Theproceedsofthepolicyare
paidtothebeneficiariesofthepolicy,notthemortgagecompany.The
beneficiaryisnotrequiredtousetheproceedstopayoffthemortgage

6.Annuity
An annuity is a form of insurance that enables you to save for your
retirement.Basically,yougivetheinsurancecompanymoneyforacertain
periodoftime,andthenafteryouretiretheywillpayyouacertainamountof
moneyeveryyearuntilyoudie.Therearemanydifferentformsofannuities.
.Mostpeoplewhobuyannuitiesare55orolder

3.2PROFILEOFTHEORGANISATIONS:
LIFEINSURANCECORPORATIONOFINDIA
LifeInsurancecorporationofIndiawasformedinSeptember1956bypassingLIC
Act,1956inIndianparliament.Onthenationalizationofthelifeinsurancein1956,
thepremiumratingofOrientalGovernmentsecuritylifeAssurancecompanywere
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
anticipationofeconomiesofscalethatwouldemergeonthemergerofdifferent
insurersinasingleentity.
LifeInsuranceCorporationOfIndiatherearemanythingstoconsiderasLife
InsuranceCorporationOfIndiaoffersvariousinsuranceproductswhicharevery
complex,butunderlyingthiscomplexityisasimplefact.Thebuildingblocksforall
Life Insurance Corporation Of India are (1) investment return; (2) mortality
experience;and(3)expensemanagement;foryourLifeInsuranceCorporationOf
India.

LICisthebiggestinsuranceplayerinthecountry.OutofthetotalpremiumofRs
3766croregeneratedbytheinsuranceindustrythroughgroupbusinessintheyear
200506,LICaloneaccountedforRs3051crore.
Inthefinancialyear200506,LIChasgrownat30.68%.Inrespectofnumberof
livesinsured,LIChasshownagrowthofover152%.Inrespectofnumberof
schemes,LIChasagrowthof2%.LIC'smarketshareinnumberofindividuals
coveredandnumberofpoliciesstandsat77%and81%,respectively.
ObjectivesOfLIC
1 SpreadLifeInsurancemuchmorewidelyandinparticulartotheruralareasand
tothesociallyandeconomicallybackwardclasseswithaviewtoreachingall
insurable persons in the country and providing them adequate financial cover
againstdeathatareasonablecost.
2 Maximizemobilizationofpeople'ssavingsbymakinginsurancelinkedsavings
adequatelyattractive.
3 Bear in mind, in the investment of funds, the primary obligation to its
policyholders,whosemoneyitholdsintrust,withoutlosingsightoftheinterest
ofthecommunityasawhole;thefundstobedeployedtothebestadvantageof
the investors as well as the community as awhole, keeping in view national
prioritiesandobligationsofattractivereturn.
4 Conduct business with utmost economy and with the full realization that the
moneysbelongtothepolicyholders.

5 Actastrusteesoftheinsuredpublicintheirindividualandcollectivecapacities.

1 Meetthevariouslifeinsuranceneedsofthecommunitythatwouldariseinthe
changingsocialandeconomicenvironment.
2 InvolveallpeopleworkingintheCorporationtothebestoftheircapabilityin
furtheringtheinterestsoftheinsuredpublicbyprovidingefficientservicewith
courtesy.
PromoteamongstallagentsandemployeesoftheCorporationasenseofparticipation,
pride and job satisfaction through discharge of their duties with dedication towards
achievementofCorporateObjective

VariouspoliciesofferedbylifeinsurancecorporationofIndiaare
1)

WholeLifeSchemes
1 Wholelifewithprofit
1 Limitedpaymentwholelife
2 SinglePremiumwholelife
3 Convertiblewholelifeplan

2)

EndowmentSchemes
1 Endowmentplanwithprofit
2 LimitedpaymentEndowment
3 JeevanMitra(DoubleCover)
4 JeevanMitra(Triplecover)
5 BhavishyaJeevan
6 JeevanAnand
7 NewJanaRaksha

3)TermAssurancePlan
1 AnmolJeevan
2 2YearTermAssurance
3 CovertibleTerm
4 NewBimaKiran
4) PlanforneedsofChildren
1

KomalJeevan

JeevanSukanya

JeevanKishore

JeevanBalya

JeevanChaya

Marriage/educationalannuity

DefferedEndowment

5. PeriodicMoneyBackPlan
1

JeevanSamridhi

JeevanRekhaPlan

MoneyBackPlan

JeevanSurabhi

Jeevanbharathi

6. Medicalbenefitslinkedinsurance
1

AshaDeepII

JeevanAshaII

7. ForbenefitstoHandicapped
1 JeevanAadhar
2 JeevanVishwas

8. Planstocoverhousingloans
1 Mortagageredemption
9. Jointlifeplan
1 Jeevansathi
10. Investmentplan
1 BimaNiveshTriplecover
11. Capitalmarketlinkedplan
1 Bimaplus.

INGVYSYALIFEINSURANCE
INGVysyaLifeInsuranceCompanyPrivateLimiteSdenteredtheprivatelifeinsurance
industryinIndiainSeptember2001,andinaspanof5yearshasestablisheditselfasa
distinctive life insurance brand with an innovative, attractive and customer friendly
productportfolioandaprofessionaladvisorsalesforce.

Ithasadedicatedandcommittedadvisorsalesforceofover21,000people,working
from 140 branches located in 74 major cities across the country and over 3,000
employees.ItalsodistributesproductsinclosecooperationwiththeINGVysyaBank
network.TheCompanyhasacustomerbaseofover4,50,000&isheadquarteredat

Bangalore.In2005,INGVysyaLifeearnedatotalincomeinexcessofRs.400croreand
alsohasasharecapitalofRs.440crore.
INGVysyaLifeInsuranceCompanyisheadquarteredatBangaloreandhasestablisheda
strongpresenceinthecitiesofDelhi,Mumbai,Kolkata,HyderabadandChennai.In
addition ING Vysya Life operates in Vizag, Vijaywada, Mangalore, Mysore, Pune,
Nagpur,Chandigarh,LudhianaandJaipur.
INGVysyaLifehaspioneeredproductinnovationsintheIndianlifeinsurancemarket
withcustomerorientedcashbonusendowmentandmoneybackproducts.(Reassuring
LifeandMaximisingLife),thefirstanticipatedwholelifeproduct(FulfillingLife)and
thefirstTerm/CriticalIllnesscombinationproduct(ConqueringLife).ConqueringLifeis
an innovative term and critical illness product that has been launched recently.
Conquering Life provides affordable term cover and critical illness coverage for 10
criticalillnessesofupto50%oftheSumAssured.
INGVysyaLifeInsuranceisajointventurebetweenINGInsuranceInternationalBVa
partofINGGroup,theworld'slargestlifeinsurancecompany.INGVysyaBank,with
1.5 million customers and over 400 outlets and GMR Technologies and Industries
Limited,partofGMRGroupalsobasedinBangaloreandinvolvedinthefieldofpower
generation,

infrastructural development and

several other businesses.

INGVysyaLifehasapaidupcapitalofRs.140croresandanauthorisedcapitalofRs.
200crores.

Lifeinsuranceproductsofferedbythecompanyare:
1)Protectionplan
1 Criticalillnessplan
2 Endowmentplan
2) Savingsplan
1 Endowmentplan
2 Childprotectionplan
3 Moneybackplan
3) InvestmentPlan
Wholelifeplan
Limitedpaymentendowmentplan
Anticipatedwholelifeplan
4) RetirementPlan
Bestyears
NewFuturePerfect

TataAIGLifeInsurance
TataAIGLifeInsurancecompanyisajointventurebetweentheTataGroupand
AmericanInternationalGroupInc(AIG),theleadingUSbasedinternational
insuranceandfinancialservicesorganisationandthelargestunderwriterof
commercialandindustrialinsuranceinAmerica.
Itsmembercompanieswriteawiderangeofcommercial,personalandlifeinsurance
productsthroughavarietyofdistributionchannelsinapproximately130countriesand
jurisdictionsthroughouttheworld.AIGsglobalbusinessesalsoincludefinancial
servicesandassetmanagement,includingaircraftleasing,financialproducts,trading
andmarketmaking,consumerfinance,institutional,retailanddirectinvestmentfund
assetmanagement,realestateinvestmentmanagement,andretirementsavingsproducts.
Areasofbusiness
TataAIGLifeInsuranceproductsincludeabroadarrayoflifeinsurancecoverageto
bothindividualsandgroups.Forgroups,thecompanyhaslifeproductswhereasfor
individuals,ithastermproducts,endowmentproductsaswellasmoneybackproducts.
Forgroupsandindividuals,varioustypesofaddonsandoptionsareavailabletogiven
consumersflexibilityandchoice.

HDFCSTANDARDLIFE
ThePartnership:
HDFCandStandardLifefirstcametogetherforapossiblejointventure,toentertheLife
Insurancemarket,inJanuary1995.Itwasclearfromtheoutsetthatbothcompanies
sharedsimilarvaluesandbeliefsandastrongrelationshipquicklyformed.InOctober
1995thecompaniessigneda3yearjointventureagreement.
AroundthistimeStandardLifepurchaseda5%stakeinHDFC,furtherstrengtheningthe
relationship.
Thenextthreeyearswerefilledwithuncertainty,duetochangesingovernmentand
ongoingdelaysingettingtheIRDA(InsuranceRegulatoryandDevelopmentauthority)
Actpassedinparliament.Despitethisbothcompaniesremainedfirmlycommittedtothe
venture.
InOctober1998,thejointventureagreementwasrenewedandadditionalresourcemade
available.AroundthistimeStandardLifepurchased2%ofInfrastructureDevelopment
Finance Company Ltd. (IDFC). Standard Life also started to use the services of the
HDFCTreasurydepartmenttoadvisethemupontheirinvestmentsinIndia.
Towardstheendof1999,theopeningofthemarketlookedverypromisingandboth
companiesagreedthetimewasrighttomovetheoperationtothenextlevel.Therefore,
inJanuary2000anexpertteamfromtheUKjoinedahandpickedteamfromHDFCto
formthecoreprojectteam,basedinMumbai.
AroundthistimeStandardLifepurchasedafurther5%stakeinHDFCanda5%stakein
HDFCBank.

InafurtherdevelopmentStandardLifeagreedtoparticipateintheAssetManagement
CompanypromotedbyHDFCtoenterthemutualfundmarket.TheMutualFundwas
launchedon20thJuly2000
IncorporationofHDFCStandardLifeInsuranceCompanyLimited:
Thecompanywasincorporatedon14thAugust2000underthenameofHDFCStandard
LifeInsuranceCompanyLimited.
CompaniesambitionfromasfarbackasOctober1995,wastobethefirstprivate
companytoreenterthelifeinsurancemarketinIndia.Onthe23rdofOctober2000,this
ambitionwasrealisedwhenHDFCStandardLifewastheonlylifecompanytobe
grantedacertificateofregistration.
HDFCarethemainshareholdersinHDFCStandardLife,with81.4%,whileStandard
Lifeowns18.6%.GivenStandardLife'sexistinginvestmentintheHDFCGroup,thisis
themaximuminvestmentallowedundercurrentregulations.
HDFCandStandardLifehavealongandcloserelationshipbuiltuponsharedvaluesand
trust. The ambition of HDFC Standard Life is to mirror the success of the parent
companies andbetheyardstickbywhichallotherinsurancecompany'sinIndiaare
measured.
HDFCStandardLife'scumulativepremiumincome,includingthefirstyearpremiums
andrenewalpremiumsisRs.672.3Croresforthefinancialyear,AprNov2005.So
far the company has covered over 11,00,000 individuals and has declared 5th
consecutivebonusinasmanyyearsforits'withprofit'policyholders.

Productsofferedbythecompanyare:
INDIVIDUALPLAN
1 WithProfitEndowmentAssurance
2 WithProfitsMoneyBack
3 SinglePremiumWholeofLife
4 TermassurancePlan
5 LoanCoverTermAssurance
6 PersonalPensionPlan
7 ChildrensPlan
GROUPPLANS
1) GroupTermInsurance
2) DevelopmentInsurancePlan

ICICIPRUDENTIALLIFEINSURANCECOMPANY
ICICIPrudentialLifeInsuranceCompanyisajointventurebetweenICICI,a
premier financial powerhouse and Prudential plc, a leading international financial
servicesgroupheadquarteredintheUnitedKingdom.ICICIPrudentialwasamongstthe
first private sector insurance companies to begin operations in December 2000 after
receivingapprovalfromInsuranceRegulatoryDevelopmentAuthority(IRDA).
ICICIPrudentialiscurentlytheNo.1privatelifeinsurerinthecountry.Forthefinancial
year ended March 31, 2005, the company garnered Rs 1584 crore of new business
premiumforatotalsumassuredofRs13,780croreandwrotenearly615,000policies

ProductsofferedbyICICIPrudentialare
2) SavingsPlan
1 Smartkid
2 LifeTime
3 SavenProtect
4 CashBak
3) Protectionplan
1 LifeGuard
2 ExtraProtectionThrough
3 Riders
4) RetirementPlans

1 ForeverLife

1 Lifelinkpension
2 Lifetimepension
3 Reassure
5) InvestmentPlans
1 AssureInvest
2 LifeLink
6) Groupplans
1 GroupSuperannuation
2 GroupGratuity
3 GroupTermAssurance

OMKOTAKMAHINDRALifeInsuranceCompany
OM Kotak Mahindra Life Insurance Company Limited (OMKM), is a joint
venturebetweenKotakMahindraBankLtd.(KMBL),andOldMutualplc.AtOMKM,
theaimistohelpcustomerstakeimportantfinancialdecisionsateverystageinlifeby
offering them a wide range of innovative life insurance products, to make them
financiallyindependent.JeeneKiAzaadi...

TheProductsofferedbytheCompanyare
Individual Plan
1 KotakEndowmentPlan
2 KotakTermPlan
3 KotakRetirementIncomePlan

4 KotakChildAdvantagePlan

1 KotakPreferredTermPlan
2 KotakCapitalMultiplierPlan
3 KotakSafeInvestmentPlan
4 Riders
5 ExclusionsUnderRiders
Group Plan
KotakTermGrouplan
KotakGratuityGrouplan
KotakCreditTermGrouplan
Riders
ExclusionsUnderRiders
Rural
KotakGraminaBimayojana

METLIFEINSURANCECOMPANY
Foralmost135years,MetropolitanLifeInsuranceCompanyhasbeeninsuringthelives
ofthepeoplewhodependonthem.Theirsuccessisbasedontheirlonghistoryofsocial
responsibility, strong leadership, sound investments, and innovative products and
services.
MetLifeBegins
TheoriginsofMetropolitanLifeInsuranceCompany(MetLife)gobackto1863,whena
groupofNewYorkCitybusinessmenraised$100,000tofoundtheNationalUnionLife.

SupportingCountryandCommunity
Overtheyears,MetLifehasmadeadifferencebysupportingurbanrenewalprojectsand
community financing. The company's social commitment and its commitment to the
securityofitspolicyholdershaveproventobegoodbusiness.
MetLifeToday
ItisthefastestgrowingprivatelifeinsurancecompanyinIndia
Currentlyhaveover200,000satisfiedcustomers
OneofIndiasleadingprivatelifeinsurancecompany.
TotalbranchesofIndiaare,AndhraPradesh,Delhi,Gujarat,Jammu&Kashmir,
Karnataka,Kerala,Maharashtra,Orissa,Punjab,Rajasthan,TamilnaduandWestBengal.
ProductsOfferedbythecompanyare
1) WholeLife
1 Met100Nonpar
2 Met100Goldpar
3 Met100Platinumpar
2) Endowment
1 MetGoldpar
2 MetPlatinumpar

1 MetJuniorpar
2 MetjuniorNonpar
3) MoneyBack
1 MetSukh
2 MetJuniorMB
4) Term
1 MetMortagageProtector
2 MetRiders
3 Accidentaldeath

BIRLASUNLIFEInsuranceCompany
BirlaSunLifeFinancialServicesoffersarangeoffinancialservicesforresidentIndians
andNonResidentIndians.Broughttogetherbytwolarge,powerfulandreputedbusiness
houses,theAdityaBirlaGroupandSunLifeFinancial,itisouraimtoofferdiverseand
topqualityfinancialservicestocustomers.TheMutualFundandInsurancecompanies
providewealthmanagementandprotectionproductstocustomerswhiletheDistribution
and Securities companies provide brokerage and trading services for investment in
equities,debtsecurities,fixeddeposits,etc.
Insuranceisnotaboutsomethinggoingwrong.It'softenaboutthingsgoingright.Oneof
thewondersofhumannatureisthatweneverbelieveanythingcanactuallygowrong.

Surely,lifehasitsshareofifs.AtBirlaSunLifehowever,theybelieveithasitsequally
pleasantshareofbutsaswell.BirlaSunLifestandcommittedtohelpyourealisethose
happymomentswhichmakealife.Beitlivingthesamelifestyleinyourpostretirement
daysorprovidingasecurefutureforyourlovedones,incasesomethinghappenstoyou.
Thelifeinsuranceproductsofferedbythecompanyare
Individuallife
1 PremiumBackTermPlan
2 FlexiSecureLifeRetirementPlan
3 SinglePremiumBond
4 BirlaSunLifeTermPlan
5 FlexiLifeLineWholeLifePlan
6 FlexiCashFlowMoneybackPlan
7 GroupLife
8 ProGroupTermInsurance
9 GroupSuperannuationPlan
10 GroupGratuityPlan

MAXNEWYORKLIFEINSURANCE
MaxNewYorkLifeInsuranceCompanyLimitedisajointventurebetweenMaxIndia
Limited,amultibusinesscorporate,andNewYorkLifeInternational,aglobalexpertin
lifeinsurance.MaxNewYorkLifetodayemergedasthecountry'sleadingprivatelife
insurancecompany.NewYorkLifeisaFortune100companythathasover160yearsof
experienceinthelifeinsurancebusiness.MaxIndiaLimitedisamultibusinesscorporate
dealinginClinicalResearch,ITandTelecomServices,andSpecialtyPlasticProducts
businesses.MaxNewYorkLifeInsurancestarteditsoperationsinIndiain2000.Itisthe
firstlifeinsurancecompanyinIndiatobeawardedtheIS09001:2000certification.Max
NewYorkofferscustomizedproductstailoredtosuitindividual'sneeds.Withitsvarious
Products and Riders, there are more than 400 product combinations to choose from.
Today,MaxNewYorkLifeInsurancehasanetworkof57officesspreadover37cities
alloverIndia.
Theproductsare
WholeLifeParticipatingdConvertible
WholeLifeNonParticipating,
ChildrenEndowmentatage18,
ChildrenEndowmentatage24,
20yearEndowmentParticipatingPolicy,
Endowmenttoage60

4.1

INTRODUCTIONTOANALYSIS:
Inordertoextractmeaningfulinformationfromthedatathem.Theanalysiscanbe

conductedbyusingsimplestatisticaltoolslikepercentages,averagesandmeasuresof
dispersion.Alternativelythecollecteddatamaybeanalysedcollected,thedataanalysisis
carried out. The data are first edited, coded and tabulated for analyzing by using
diagrams,graphs,charts,picturesetc.Dataanalysisistheprocessofplanningthedatain
anorderedform,combiningthemwiththeexistinginformationandextractingfromthem
Interpretationistheprocessofdrawingconclusionsfromthegathereddatainthestudy.
Inthisresearchtheresearcherhasanalysedthedatausingpercentagesandgraphs.
4.2DATAANALYSISTOOLSUSED:
Inthisresearchthedataanalysistoolsusedarepercentagesandgraphs.The
variousattributeswereanalysedseparatelyandtheimportancetoeachwascalculatedon
thebasisofthepercentage.Therankhavingthemaximumpercentagewastakentobe
preferredimportancetotheparticularattribute.
Afterlookingateachattributeseparately,alltheattributeswereconsideredtogetherto
developamaponthemostpreferredrankforalltheattributes.

TABLE1
AGEOFRESPONDENTS:

SL.NO

AGEINYEARS

NUMBER
OF
RESPONDENTS

PERCENTAGE
OF
RESPONDENTS

1.

1928

28

56%

2.

2938

18%

3.

3948

12%

4.

4958

12%

5.

5968

0%

6.

6978

2%

TOTAL

50

100%

SOURCE:SURVEYDATA

INFERENCE:Theabovetableclassifiedtherespondentsaccordingtotheiragegroup.
Themajorityoftherespondentsbelongtotheagegroup19to28yearswith56%and
thesecondagegroupis29to38yearswith18%,followedby39to48yearsand49to
58yearswith12%each.

GRAPH1
AGEOFRESPONDENTS:

60%

56%

50%
40%
30%
18%

20%

12%

12%

10%
0%

0%
19 - 28
YRS

29 - 3839 - 48
YRS
YRS

49 - 5859 - 68
YRS
YRS

INTERPRETATION
Majorityoftheinsuranceholdersarebelongingtotheagegroupof2030years.

2%
69 - 78
YRS

TABLE2
DIFFERENCIATIONOFTHERESPONDENTSINTOMALEANDFEMALE:

TYPESOF
RESPONDENTS

NUMBEROF
RESPONDENTS

PERCENTAGEOF
RESPONDENTS

MALERESPONDENTS

37

74%

FEMALE
RESPONDENTS

13

26%

TOTAL

50

100%

SOURCE:SURVEYDATA

INFERENCE:Thistablehelpsustounderstandthattherearemorenumberofmale
consumerswith74%marketsharethanthefemaleconsumerswith26%
marketshare.

GRAPH2
DIFFERENCIATIONOFTHERESPONDENTSINTOMALEANDFEMALE:

80%

74%

70%
60%
50%
40%
26%

30%
20%
10%
0%

ENTS

POND

R ESPON

ENTS

RES
L

MALE

EMA
F

INTERPRETATION
Mostoftheinsuranceholdersaremalepeople,sowecanreachaconclusionthatthe
malepeoplearemoreawareabouttheinsuranceanditsimportance.

TABLE3
DIFFERENCIATIONOFRESPONDENTSBASEDONTHEIROCCUPATION:

SL.NO

OCCUPATION

NUMBEROF
RESPONDENTS

PERCENTAGE
OF
RESPONDENTS

1.

STUDENTS

4%

2.

GOVERNMENT
EMPLOYEES

20

40%

3.

PRIVATE
EMPLOYEES

24

48%

4.

HOUSEWIVES

4%

5.

RETIRED
PERSONS

4%

TOTAL

50

100%

SOURCE:SURVEYDATA

INFERENCE:Itcouldbeinferredthatmajorityofconsumersoflifeinsurance
policiesareprivateemployeeswith48%andGovernmentemployeeswith40%,
followedbystudents,housewivesandretiredpersonswith4%each.

GRAPH3
DIFFERENCIATIONOFRESPONDENTSBASEDONTHEIROCCUPATION:

60%
48%

50%
40%

40%
30%
20%
10%
4%

4%

4%

RSONS

0%
NT

EES

ES

TUDE

EM

OYE

M PL

E
ENT
RNM

WIVE

IV

ATE

IRED

US

PE

HO
RET

GOVE

INTERPRETATION

Theabovegraphshowsthattheemployeesarethelargeproportionofinsuranceholders
comparedtoothercategories.

TABLE4
TABLESHOWINGINCOMEGROUPOFRESPONDENTS:
SL.NO

INCOME
GROUP

NUMBEROF
RESPONDENTS

PERCENTAGE
OF
RESPONDENTS

1.

LESSTHAN
5000

18%

2.

500110,000

17

34%

3.

1000115000

14

28%

4.

1500120000

14%

5.

2000125000

4%

6.

GREATER
THAN30000

2%

TOTAL

50

100%

SOURCE:SURVEYDATA

INFERENCE:Themajorityofdominantincomegrouphavinglifeinsurancepolicies
belongtotheincomegroupof5,001to10,000,whichismiddleclassgroup.Followed
bytheincomegroupof10,001to15,000.

GRAPH4
GRAPHSHOWINGINCOMEGROUPOFRESPONDENTS:

40%
35%
30%
25%
20%
15%
10%
5%
0%
<5000

INTERPRETATION

5001 - 10001 - 15001 - 20001 - >25000

1000
15000 20000 25000

Theabovetableshowsthatmostoftheconsumersofinsurancepoliciesarebelonging
totheincomegroupof500015000

TABLE5

DIFFERENCIATIONOFRESPONDENTSACCORDINGTOTHEASSETS

OWNED:

SL.NO

ASSETS

NUMBEROF
RESPONDENTS

PERCENTAGE
OF
RESPONDENTS

1.

HOUSE

19

38%

2.

TWO
WHEELER

26

52%

3.

CAR

10%

TOTAL

50

100%

SOURCE:SURVEYDATA

INFERENCE:Thistablehelpsustoknowthatmostofconsumerswithlife
insurancepoliciesowntwowheelerswith52%,19%ofconsumersownhouseand
5%oftheconsumersowncar.

GRAPH5
DIFFERENCIATIONOFRESPONDENTSACCORDINGTOTHEASSETS
OWNED:

60%
52%
50%
40%

38%

30%
20%
10%

10%
0%
HOUSE

TWO
WHEELER

CAR

TABLE6
MARKETSHAREOFDIFFERENTLIFEINSURANCECOMPANIES:
COMPANIES

NUMBEROF
RESPONDENTS

PERCENTAGEOF
RESPONDENTS

LIC

39

78%

TATAAIG

2%

HDFC

6%

ICICI

8%

METLIFE

2%

KOTAK
MAHINDRA

2%

ALLIANCEBAJAJ

2%

SOURCE:SURVEYDATA

INFERENCE:Thistablehelpsustounderstandthemarketshareofdifferentlife
insurancecompanies.LIChasamajorshareof78%,followedbyICICIPrudential
with8%marketshare,followedbyHDFCStandardLifewith6%marketshare.

GRAPH6
MARKETSHAREOFDIFFERENTLIFEINSURANCECOMPANIES:

90%
80%

78%

70%
60%
50%
40%
30%
20%
10%

2%

0%
IC
L

A AIG
TAT

6%

8%
2%

2%

I
C
HDFC

ICI

BAJ AJ

LIFE
MET

2%

MAHINDRA NCE
LIA

KOTAK

AL

INTERPRETATION

TheabovegraphshowsthatmostoftheinsuranceholdersaretheconsumersofLIC
SinceitcanbeunderstandthatthepeoplearehavingmoretrustintheLICcomparedto
otherprivateinsurancecompanies.

TABLE7
TABLESHOWINGATTRIBUTESFROMRESPONDENTS:
SL.NO

ATTRIBUTE

SCORE

RANK

1.

RETURNON
30
INVESTMENT

2.

COMPANY
REPUTATION

25

3.

PREMIUM
OUTFLOW

22

4.

SERVICE
QUALITY

19

5.

PRODUCT
QUALITY

17

SOURCE:SURVEYDATA

INFERENCE:Thistableshowsthestrengthsandweaknessesofthebrand,andwhat
aretheimportantcriteriaorattributesonwhichdecisionmakingisdone.Fromthistable
wecaninferthatconsumersgivemoreimportanceforReturnoninvestment,secondly
theyprefercompanyreputation,andthenpremiumoutflowfollowedbyservicequality
andproductquality.

GRAPH7
GRAPHSHOWINGATTRIBUTESFROMRESPONDENTS:
RANKEDACCORDINGTOTHEPRIORITY
6
5

5
4

4
3

3
2

2
1

1
0

T
T

VE

MEN
UTA

ETU
R

P
OM

TFLO

LITY
U
Q

OU

QUALITY

VICE

NY

TIO

N IN
N
R

EMIUM

ER
S

PRODUCT

INTERPRETATION

Theabovefigureshowsthestrengthsandweaknessesofthebrand,andwhatarethe
importantcriteriaorattributesonwhichdecisionmakingisdone.Fromthisfigurewecan
inferthatconsumersgivemoreimportanceforReturnoninvestment,secondlythey
prefercompanyreputation,andthenpremiumoutflowfollowedbyservicequalityand

productquality.

TABLE8
FACTORSWHICHINFLUENCEDTOBUYLIFEINSURANCEPOLICY:
SL.NO

FACTORS

SCORES

RANK

1.

PERSONAL
INTEREST

28

2.

FAMILY

16

3.

FRIENDS

4.

AGENTS

5.

ADVERTISEMENT

6.

OTHERS

SOURCE:SURVEYDATA

INFERENCE:Thistableishelpfulinknowingwhichmediaisbestsuitablefor
promotingalifeinsuranceproduct.Itcanbeseenthatpersonalinterestinfluencesa
consumerstobuyalifeinsuranceproduct,followedbyfamily,friends,agentsand
advertisements.

GRAPH8
FACTORSWHICHINFLUENCEDTOBUYLIFEINSURANCEPOLICY:

7
6

6
5

5
4

4
3

3
2

2
1

0
Y
L

INTEREST

PERSONAL

IEN
R

FAMI

DS

ERS
AGENTS

SEMENT
I

TH

ADVERT

INTERPRETATION
Theabovefigureshowsthatthekeyfactorwhichinfluencestheconsumerstobuythe
lifeinsuranceproductispersonalinterests,followedbyfamily,friends,agentsand
advertisements.

TABLE9
VALUEOFRESPONDENTSLIFEINSURANCEPOLICY:
SL.NO

AMOUNT

NUMBEROF
RESPONDENTS

PERCENTAGE
OF
RESPONDENTS

1.

<10000

0%

2.

10000
25000

10%

3.

25000
50000

16%

4.

50000
100000

15

30%

5.

>100000

22

44%

SOURCE:SURVEYDATA

INFERENCE:Itcanbeinferredthatmajorityofconsumersbuythelifeinsurancepolicy
whichcostsmorethanRs.1,00,000followedbyRs.50,000tpRs.1,00,000,followedby
Rs.25,000toRs.50,000.

GRAPH9
VALUEOFRESPONDENTSLIFEINSURANCEPOLICY:

50%

44%

45%
40%
35%

30%

30%
25%
20%

16%

15%

10%

10%
5%
0%

0%
> 10000

10000 25000

25000 50000

50000 100000

> 100000

INTERPRETATION
Theabovefigureshowsthatmajorityofconsumersbuythelifeinsurancepolicywhich
costsmorethanRs.1,00,000followedbyRs.50,000tpRs.1,00,000,followedbyRs.
25,000toRs.50,000.

TABLE10
RESPONDENTSPREFERENCETOINVESTTHEIRMONEY:

NUMBEROF
RESPONDENTS

PERCENTAGEOF
RESPONDENTS

INSURANCE
COMPANY

24

48%

BANK

26

52%

TOTAL

50

100%

SOURCE:SURVEYDATA
INFERENCE:Fromthetableitisclearthatmajorityofpeople(52%)prefertoinvestin
Bankandothers(48%)prefertoinvestinInsurancecompanies.

GRAPH10
RESPONDENTSPREFERENCETOINVESTTHEIRMONEY:

53%
52%

52%
51%
50%
49%
48%
48%
47%
46%
INSURACE

BANK

COMPANY

INTERPRETATION
Theabovefigureshowsthatmostoftherespondentsarepreferredtoinvesttheir
moneyinbankratherthaninsurancesector.

TABLE11

SATISFACTIONOFRESPONDENTSWITHCURRENTLIFEINSURANCE
COMPANY:

RESPONSE

NUMBEROF
RESPONDENTS

PERCENTAGEOF
RESPONDENTS

YES

47

94%

NO

6%

TOTAL

50

100%

SOURCE:SURVEYDATA

INFERENCE:Fromthistableitcouldbeinferredthat94%oftheconsumersare
satisfiedwiththeserviceandqualityofproductsoftheirlifeinsurancecompanies.
Only6%ofconsumersarenotsatisfied.

GRAPH11
SATISFACTIONOFRESPONDENTSWITHCURRENTLIFEINSURANCE
COMPANY:

100%

94%

90%
80%
70%
60%
50%
40%
30%
20%
10%

6%

0%
YES

NO

INTERPRETATION
Fromtheabovefigureitcouldbeinferredthatmostoftheconsumersaresatisfiedwith
theserviceandqualityofproductsoftheirlifeinsurancecompanies.

TABLE12
RATINGSOFTHESERVICESOFFEREDBYTHERESPONDENTSLIFE
INSURANCECOMPANY:
RATINGS

NUMBEROF
RESPONDENTS

PERCENTAGE
OF
RESPONDENTS

EXCELLENT

14%

VERYGOOD

12

24%

GOOD

20

40%

AVERAGE

11

22%

POOR

0%

TOTAL

50

100%

SOURCE:SURVEYDATA

INFERENCE:Fromthistableitcouldbeinferredthat40%oftheconsumershaverated
serviceofferedasgood,24%ofthemhaveratedthemasverygood,22%ofthemhave
ratedasaverageand14%ofthemhaveratedasexcellent.

GRAPH12

RATINGSOFTHESERVICESOFFEREDBYTHERESPONDENTSLIFE
INSURANCECOMPANY:

45%

40%

40%
35%
30%
25%
20%
15%

24%

22%

14%

10%
5%

0%

0%
OOD

OOR
P

XCELLENT
E

ERY GOOD

AVERAGE

INTERPRETATION

Fromtheabovefigureshowsthatmostoftherespondentshaveratedtheircurrentlife
insurancecompaniesperformanceasgood.

TABLE13
CONSUMERSWILLINGNESSTOCOMMUNICATETHESERVICEOFFERED
BYTHEIRLIFEINSURANCECOMPANY
RESPONSES

NUMBEROF
RESPONDENTS

PERCENTAGEOF
RESPONDENTS

YES

39

78%

NO

11

22%

TOTAL

50

100%

SOURCE:SURVEYDATA

INFERENCE:Fromthistableitcanbenotedthatthemajorityofconsumers(78%)
wouldliketocommunicatetheserviceofferedbylifeinsurancecompaniesand22%of
consumerswouldnotliketocommunicatetheserviceoffered.

GRAPH13
CONSUMERSWILLINGNESSTOCOMMUNICATETHESERVICEOFFERED
BYTHEIRLIFEINSURANCECOMPANY

90%
80%

78%

70%
60%
50%
40%
30%

22%

20%
10%
0%
YES

NO

INTERPRETATION
Fromtheabovefigureitcanbenotedthatthemajorityofconsumerswouldlike
tocommunicatetheserviceofferedbylifeinsurancecompanies

TABLE14
NUMBEROFLIFEINSURANCECOMPANYKNOWNBYRESPONDENTS:

NUMBEROFLIFE
INSURANCE
COMPANYKNOWN

NUMBEROF
RESPONDENTS

PERCENTAGEOF
RESPONDENTS

<5

29

58%

57

18

36%

810

4%

>10

2%

TOTAL

50

100%

SOURCE:SURVEYDATA

INFERENCE:Thistablehelpsustoknowtheconsumerawarenessaboutthelife
insurancecompanies.58%oftheconsumersareawareaboutlessthan5lifeinsurance
companies,followedby36%consumerswhoknow5to7lifeinsurancecompanies.

GRAPH14
NUMBEROFLIFEINSURANCECOMPANYKNOWNBYRESPONDENTS:

70%
60%

58%

50%
40%

36%

30%
20%
10%

4%

2%

0%
<5

5 TO 7

8 TO 10

> 10

INTERPRETATION

Theabovefigureshowsthatmostoftherespondentsareawareabout,around
fivecompanies

TABLE15
SCORESOFDIFFERENTLIFEINSURANCECOMPANIES:
COMPANIES

SCORES

RANK

LIC

345

ICICIPRUDENTIAL

211

HDFC

194

TATAAIG

123

INGVYSYA

121

BAJAJALLIANZ

118

METLIFE

90

OTHERS

41

SOURCE:SURVEYDATA
INFERENCE:Fromthetableitcanrankthelifeinsurancecompanies,LICstandsfirst,
followedbyICICIPrudentialfollowedbyHDFCStandardlife,followedbyTATAAIG.

GRAPH15
SCORESOFDIFFERENTLIFEINSURANCECOMPANIES:

3
2
1

2
1

0
LIC

IAL
N

G
AI

HD

ATA
T

ICI
IC

PRUDE

A
ANZ

ING

AL

LI

T
E

LIFE
OTHERS

M
BAJAJ

INTERPRETATION

Fromtheabovefigureitcanrankedthelifeinsurancecompanies,LICstandsfirst,
followedbyICICIPrudentialfollowedbyHDFCStandardlife,followedbyTATAAIG.

5.1

SUMMARYOFFINDINGS

1 Themajorityofrespondentsbelongtotheagegroupof19to28yearswith56%
followedbyagegroupof29to38yearswith18%.

2 The male consumers capture the Market share with 74%, followed by the
femaleconsumerswith26%.

3 Themajorityoftheconsumersoflifeinsurancepoliciesareprivateemployees
with48%andGovernmentemployeeswith40%

4 Thedominantincomegrouphavinglifeinsurancegroupbelongtothegroupof5001
to10,000followedby10,001to15,000.

5 LIChasamajormarketshareof78%.

6 Thefactorswhichinfluencedtobuylifeinsurancepolicyisthepersonalfactor,
followedbyfamily,friends,agentsandadvertisements.

1 Thevalueofrespondentslifeinsurancepolicycostsmorethan5,00,000followedby
1,00,000to5,00,000.

2 Majorityofthepeople(52%)prefertoinvestinbankothers(48%)prefertoinvestin
insurancecompany.

3 Majorityofconsumersaresatisfiedwiththeserviceandqualityofproductsoftheir
lifeinsurancecompanies.

4 Majorityofconsumers(78%)wouldliketocommunicatetheserviceofferedby
lifeinsurancecompanies.

5 Majorityofconsumers(58%)areawareaboutlessthan5lifeinsurancecompanies.

6 LICstandsfirstfollowedbyICICIprudential,followedbyHDFCStandardLife.

CONCLUSION
ThisstudytitledStudyofConsumersPerceptionaboutLifeInsurancePoliciesenables
theLifeInsuranceCompanies tounderstandhowconsumers perceptiondiffersfrom
persontoperson.Howaconsumerselects,organizesandinterpretstheservicequality
and the product quality of different Life Insurance Policies, offered by various Life
InsuranceCompanies
Theresponseoftheinsurancecompanieshasbeenverypositiveandwithinashortspan
ontime,theIndianinsurancemarketscenariohasseenaperceptiblechangeintermsof
improvedcustomerservicebenchmarksandintroductionofinnovativeandtailorsmade
products.
MostoftheinsurancemajorshaverepresentedintheformofjointventureinIndian
market.
Thenewproductsthathavebeenintroducedbythecompanieshavecertaininnovative
features in terms of better customer services and also wider covers. This has given
customeramplechoicetoselectproducts.

5.2RECOMMENDATIONSANDSUGGESTIONS

Withregardtoinsuranceproducts,consumersrespondatdifferentrates,dependingonthe
consumerscharacteristics.HenceInsurancecompaniesshouldtrytobringtheirnew
producttotheattentionofpotentialearlyadopters.

1) Duetotheintensecompetitioninthelifeinsurancemarket,thelifeinsurance
companieshavetoadoptbetterstrategiestoattractmorecustomers.

2) Keepingthecost,qualityandreturnoninvestmentintactisnecessaryinorderto
tacklethecompetition.

3) Lifeinsuranceproductsaretakenmainlybymiddleandhigherincomegroup.
Hencetheyshouldberegardedasmaimtargetedincomegroups.Life
insuranceproductswhicharesuitableforlowerincomegroupshouldalsobe
releasedsothatthemarketshareincreases.

4) Returnoninvestmentcompanyreputationandpremiumoutflowaremost
preferredattributesthatareexpectedbytherespondents.Hencegreaterfocus
shouldbegiventotheseattributes.

5) Privatelifeinsurancecompaniesshouldadopteffectivepromotionalstrategies
toincreasetheawarenesslevelamongtheconsumers.
6) Lifeinsurancecompaniesshouldaskfortheirconsumerfeedbacktoknow
whethertheconsumersarereallysatisfiedordissatisfiedwiththeserviceand
productofthecompanies.Iftheyaredissatisfied,thenthereasonsfor
dissatisfactionshouldbefoundoutandshouldbecorrectedinfuture.

7) The LIC brand name has earned a lot of goodwill and enjoys a high brand
equity.Asthereisintensecompetitioninlifeinsurancemarket,LICshouldwork
hardtomaintainitstoppositionandofferbetterserviceandproduct.

QUESTIONNAIRE
ASTUDYCONDUCTEDTOUNDERSTANDTHECONSUMERS
PERCEPTIONABOUTLIFEINSURANCEPOLICIES
1. Name:
2. Age:
3. Address:
3a.Phonenumber:
4. Occupation:
5. Monthlyincome:
<5000
15,00120000
6.

DoYouOwn

500110,000
20,00125,000

10,00015,000
>25,000

House

TwoWheeler

Car

7.
DoyouhaveaLifeInsurancePolicywithanyLife
InsuranceCampany?
Yes
No
7.a)Ifyes,nametheCompany___________________________________
2) Namethepolicywhichyouown_____________________________
8. Whatfactorsdoyouconsiderwhilebuyingalifeinsurancepolicy?
PremiumOutflow
ServiceQuality
ReturnonInvestment
9.

CompanyReputation
ProductQuality

WhatfactorsinfluencedtobuyLifeInsurancePolicy?
Personalinterest
Agents

Friends
Advertisements

Family
others

10.Whatisthevalueofyourlifeinsurance?
>10,000
50,0001,00,000

10,00025,000
>1,00,000

25,00050,000

11.DoyouprefertoinvestyourmoneyinaInsurancecompanyorinaBank?
InsuranceCompany

Bank

12.AreyousatisfiedwithyourcurrentLifeInsuranceCompany?
Yes

No

IfYesWhy?___________________________________________
IfNoWhy?___________________________________________
13.HowdoyouratetheserviceofferedbyyourLifeInsuranceCompany?
Excellent
Average

VeryGood
Poor

Good

14. WouldyouliketocommunicatetheserviceofferedbyyourLifeInsurance
Companytoothers?

Yes

No

15.

HowmanyLifeinsuranceCompanniesdoyouknow?
<5

57

810

16.HowdoyouratethefollowingLifeInsuranceCompanies?
LIC
HDFC
INGVYSYA
METLIFEINDIAINSURANCE
BAJAJALLIANZ
ICICI
Prudential
TATAAIG
Others
17.

WouldYouliketocontinuewiththesameLifeInsuranceCompany?

Yes
No
18.Anysuggestionsforimprovingtheserviceofferedbylifeinsurance
companies
ThankYou.

BIBLIOGRAPHY

TEXTBOOKS:

1)ServicesMarketing

RaviShankar.

2)MarketingManagement

PhilipKotler.

3)ConsumerBehaviour

LeonGSchiffman
LestieLazarKanwk.

>10

4)PrinciplesofinsuranceLaw

Dr.AvtarSingh.

WEBSITES:
WWW.GOOGLE.COM
WWW.LIC.COM