Importance

of Insurance
to
Consumers
Submitted By:
Vaisali Singh

Introducti
on

Insurance is a means of protection from financial loss. It is a

form of risk management primarily used to hedge against the risk
of a contingent, uncertain loss.
An entity which provides insurance is known as an insurer,
insurance company, or insurance carrier. A person or entity who
buys insurance is known as an insured or policyholder. The
insurance transaction involves the insured assuming a
guaranteed and known relatively small loss in the form of
payment to the insurer in exchange for the insurer's promise to
compensate the insured in the event of a covered loss. The loss
may or may not be financial, but it must be reducible to financial
terms, and must involve something in which the insured has an
insurable interest established by ownership, possession, or
preexisting relationship.

The following point shows the role and importance of

insurance:
1. Generates financial resources
2. Provide safety and security
3. Life insurance encourages savings
4. Promotes economic growth
5. Medical support
6. Spreading of risk
7. Source of collecting funds

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

To

find out the differences among

perceived service and expected service

To

produce an executive service report to

upgrade service characteristics of life
insurance companies.

To

access the degree of satisfaction of the

consumers with their current brand of
Insurance products.

Literature
Review

The Malhotra Committee felt the need to provide

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

Research
Methodology

The design of the plan adopted for the study is stated below
:1. Data Collection Methods:a)
Primary Data
b)
Secondary Data

2. Type of Research Design

My research design was descriptive method.

3. Sampling Design
Probability Sampling
Area Sampling
We visit different customers for this sampling

4. Sample Size = 100

5. Methods
The respondents were interviewed by personal contacts.
This is the most variable method to research.

Importan
This study is limited to the consumers ce
within
the limit of Lucknow city.

The

study will be able to reveal the

preferences, needs, perception of the
customers regarding the life insurance
products, It also help the insurance
companies to know whether the existing
products are really satisfying the customers
needs .