STUDY ABOUT AWARENESS OF INSURANCE AMONG PEOPLE

A Project Submitted to

University of Mumbai for partial completion of the degree of

Master in Commerce [Banking and Finance].

Under the Faculty of Commerce

Submitted by

JULIET ANGEL AMALORPAVARAJ

ROLL NO.16

Under the Guidance of

DR. RAJASHRI DESHPANDE

KERALEEYASAMAJAM (REGD.) DOMBIVLI’S

MODEL COLLEGE

NOVEMBER 2019
STUDY ABOUT AWARENESS OF INSURANCE AMONG PEOPLE

A Project Submitted to

University of Mumbai for partial completion of the degree of

Master in Commerce [Banking and Finance].

Under the Faculty of Commerce

Submitted by

JULIET ANGEL AMALORPAVARAJ

ROLL NO.16

Under the Guidance of

DR. RAJASHRI DESHPANDE

KERALEEYASAMAJAM (REGD.) DOMBIVLI’S

MODEL COLLEGE

NOVEMBER 2019
 CERTIFICATE
This is to certify that Ms. JULIET ANGEL AMALORPAVARAJ has worked and duly
completed her project work for Master in Commerce under the Under the Faculty of Commerce
and her project is entitled‘’ A STUDY ONAWARENESS OF INSURANCE AMONG
PEOPLE”, under my supervision I further certify that the work has been done by the learner
under my guidance and that no part of it has been submitted previously for any degree or
diploma of any University.

It is her own work and the facts reported by her personal findings and investigations.

(DR. VINAY BHOLE)

DATE OF SUBMISSION

GUIDING TEACHER
 DECALARATION

I, the undersigned [Link] ANGEL AMALORPAVARAJ hereby, declare that the work
embodied in this project work titled “A STUDY ON AWARENESS OF
INSURANCEAMONG PEOPLE”, forms my own contribution to the research work carried
out under the guidance of PROF. RAJASHRI DESHPANDE , is a result of my own research
work and has not been previously submitted to any other University for any Degree/Diploma to
this or any other University.

Wherever reference has been made to previous works of others, it has been clearly indicated as
such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and presented
in accordance with academic rules and ethical conduct.

JULIET ANGEL AMALORPAVARAJ

Certified by,

RAJASHREE DESHPANDE
 ACKNOWLEDGEMENT

To list who all have helped me in difficult because they are so numerous and depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in
the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this
Project.

I would like to thank my Principal, [Link] for providing the necessary facilities
required for completion of this project.

I take this opportunity to thankCoordinator and Prof. Thrivikraman MV, for his moral
Support andguidance.

I would like to express my sincere gratitude towards my project guide Prof.

RajashreeDeshpanhde whose guidance and care made the project Successful.

I would like to thank my College Library, for having provided Various Reference booksand
magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helpedme in the
completion of the project especially my Parents and Peers who supported methroughout my
project.
 INDEX

CHAPTE CONTENTS PAGE

R NO. NO.
1. Introduction 1-43
2. Research Methodology 44-50
3. Review Of Literature 51-54
4. Data Analysis, Interpretation & Presentation 55-73
5. Findings 74
6. Conclusion 75
7. Recommendations And Suggestions 76-77
Bibliography And Annexure
 CHAPTER 1-STUDY ON AWARENESS OF INSURANCE AMONG
PEOPLE

INTRODUCTION

Everyone is exposed to various risks.

Future is very uncertain, but there is
way to protect one’s family and make
one’s children’s future safe. Life
Insurance companies help us to ensure
that our family’s future is not just
secure but also prosperous. Life Insurance is particularly important if you are the sole
breadwinner for your family. The loss of you and your income could devastate your family. Life
insurance will ensure that if anything happens to you, your loved ones will be able to manage
financially.

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

It is a commonly acknowledged phenomenon that there are countless risks in every sphere of life
.for property, there are fire risk; for shipment of [Link] are perils of sea; for human life
there is risk of death or disability and so on. The chances of occurrences of the events causing
1
losses are quite uncertain because these may or may not take place. Therefore, with this view in
mind, people facing common risks come together and make their small contribution to the
common fund. While it may not be possible to tell in advance, which person will suffer the
losses, it is possible to work out how many persons on an average out of the group, may suffer
losses. When risk occurs, the loss is made good out of the common fund in this way each and
every one shares the risk .in fact they share the loss by payment of premium, which is calculated
on the likelihood of loss .In olden time, the contribution make the above-stated notion of
insurance.

2
DEFINITION OF INSURANCE

Insurance has been defined to be that in, which a sum of money as a premium is paid by the
insured in consideration of the insurer’s bearings the risk of paying a large sum upon a given
contingency. The insurance thus is a contract whereby:

 Certain sum, termed as premium, is charged in consideration,

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

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

3
EVOLUTION OF INSURANCE IN INDIA

The marine insurance is the oldest form of insurance. If we trace Indian history there are
evidence that marine insurance was practiced here about three thousand years ago. The code of
Manu indicates that there was the practice of marine insurance carried out by the traders in India
with those of Srilanka, Egypt and Greece .It is wonderful to see that Indians had even anticipated
the doctrine of average and contribution. Freight was fixed according to season and was then
very much at the mercy of the wind and other elements. Travelers by sea and land were very
much exposed to the risk of losing their vessels and merchandise because of piracy on open seas
and highway robbery of caravans was very common. The practice of insurance was very
common during therule of Akbar to Aurangzeb, but the nature and coverage of the insurance in
this period is not well known. It was the British insurer who introduced general insurance in
India in the modern form. The Britishers opened general insurance in India around the year
1700 .Thefirst company known as the sun insurance office was set up in Calcutta in the year
1710. This was followed by several insurance companies like London assurance and royal
exchange assurance (1720), Phoenix Assurance Company (1782). Etc. General insurance
business in the country was nationalized with effect from 1st January 1973 by theGeneral
Insurance Business (Nationalization) Act, 1972. More than 100 non-life insurance companies
including branches of foreign companies operating within the country were amalgamated and
grouped into four companies, the National Company Ltd., the New India Assurance Company
Ltd., the Oriental Insurance Company Ltd., and the United India Insurance Company Ltd. with
head offices at Calcutta, Bombay, New Delhi and Madras, respectively. Life insurance in the
current form came in India from united kingdom with the establishment of a British firm, oriental
life assurance company in 1818 followed by Bombay life assurance company in 1823, the
madras equitable life insurance societyin 1829 and oriental life assurance company in [Link]
to 1871, Indian lives were treated as sub standard and charged an extra premium of 15% to 20%.
Bombay mutual life assurance society, an Indian insurer that came in to existence in 1871, was
the first tocover Indian lives at normal rates. The Indian insurance company Act 1923 was
enacted inter alia, to enable the government to collect statistical information about life and
nonlife insurance business transacted in India by Indian and foreign insurer, including
theprovident insurance societies. The first half of the 20th century marked by two world wars,

4
the adverse affects of the World War I and World War II on the economy of India, and in
between them the period of worldwide economic crises triggered by the Great depression. The
first half of the 20th century was also marked by struggles for India’s independence. The
aggregate effect of these events led to a high rate of bankruptcies and liquidation of life
insurance companies in India. This had adversely affected the faith of the general public in
theutility of obtaining life cover. In this background, the Parliament of India passed the Life
Insurance of India Act on 19th June 1956, and the Life Insurance Corporation of India was
created on 1st September, 1956, by consolidating the life insurance business of 245 private life
insurersand other entities offering life insurance services.

Since 1972, the insurance has been totally under the control ofgovernment of India through LIC
and GIC and its subsidiaries. As a result, revenue of both of them increased in the last years .The
amount of savings pooled by LIC increased from Rs.2704 crores in 1974 to Rs.57670 in 1994
with an annual growth rate of 16.53. Similarly, premium underwritten by GIC rose from 280
crores in 193 to 7647 crores in1998 showing an annual growth rate of 25.18%. Despite increase
in premium collected by both LIC and GIC there were inefficiency in to the insurance sector.
Apart from that a major policy shift by the Narasimha Rao government during 1990’[Link] Indian
economy opened for foreign competition .In this background The government of India in 1993
had set-up a high powered committee by [Link], former governor reserve bank of India,
to examine the structure of Indian insurance sector and recommended changes to make it more
efficient and competitive keeping in view structural changes in other part of the financial system
of the country.

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

5
6
 THE IMPORTANCE OF INSURANCE

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

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

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

7
INSURANCE SECTOR REFORMS

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

THE MALHOTRA COMMITTEE REPORT:

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R. N.
Malhotra, was formed to evaluate the Indian insurance industry and recommend its future
direction. In 1994, the committee submitted the report and gave the following recommendations:

STRUCTURE

 Government stake in the insurance Companies to be brought down to 50%

 Government should take over the holdings of GIC and its subsidiaries so that the
subsidiaries can act as independent corporations.
 All the insurance companies should be given greater freedom to operate.

COMPETITION

 Private Companies with a minimum paid up capital of Rs.1 billion should be allowed to
enter the industry.
 No Company should deal in both Life and General Insurance through a single entity.
 Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies.
 Postal Life Insurance should be allowed to operate in the rural market.
 Only one State Level Life Insurance Company should be allowed to operate in each state.

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REGULATORY BODY

 The Insurance Act should be changed.

 An Insurance Regulatory body should be set up.
 Controller of Insurance

INVESTMENTS

 Mandatory Investments of LIC Life Fund in government securities to be reduced from

75% to 50%.
 GIC and its subsidiaries are not to hold more than 5% in any company.

CUSTOMER SERVICE

 LIC should pay interest on delays in payments beyond 30 days.

 Insurance companies must be encouraged to set up unit linked pension plans.
 Computerization of operations and updating technology to be carried out in insurance
industry.
 Overall, the committee strongly felt that in order to improve the customer services
andincrease the coverage of the insurance industry should be opened up to competition.
 But at the same time, the committee felt the need to exercise caution as any failure on
thepart of new players could ruin the public confidence in the industry.

9
PRINCIPLES

Insurance involves pooling funds from many insured entities (known as exposures) to pay for the
losses that some may incur. The insured entities are therefore protected from risk for a fee, with
the fee being dependent upon the frequency and severity of the event occurring. In order to be an
insurable risk, the risk insured against must meet certain characteristics. Insurance as a financial
intermediary is a commercial enterprise and a major part of the financial services industry, but
individual entities can also self-insure through saving money for possible future losses.

INSURABILITY:

Risk which can be insured by private companies typically shares seven common
characteristics:

o Large number of similar exposure units:Since insurance operates through pooling

resources, the majority of insurance policies are provided for individual members of large
classes, allowing insurers to benefit from the law of large numbers in which predicted
losses are similar to the actual losses. Exceptions include Lloyd's of London, which is
famous for ensuring the life or health of actors, sports figures, and other famous
individuals. However, all exposures will have particular differences, which may lead to
different premium rates.

o Definite loss: The loss takes place at a known time, in a known place, and from a known
cause. The classic example is death of an insured person on a life insurance policy. Fire,
automobile accidents, and worker injuries may all easily meet this criterion. Other types
of losses may only be definite in theory. Occupational disease, for instance, may involve
prolonged exposure to injurious conditions where no specific time, place, or

10
 causeidentifiable. Ideally, the time, place, and cause of a loss should be clear enough that
areasonable person, with sufficient information, could objectively verify all three
elements.

o Accidental loss: The event that constitutes the trigger of a claim should be fortuitous, or
at least outside the control of the beneficiary of the insurance. The loss should be pure, in
the sense that it results from an event for which there is only the opportunity for cost.
Events that contain speculative elements such as ordinary business risks or even
purchasing a lottery ticket are generally not considered insurable.

o Large loss: The size of the loss must be meaningful from the perspective of the insured.
Insurance premiums need to cover both the expected cost of losses, plus the cost of
issuing and administering the policy, adjusting losses, and supplying the capital needed to
reasonably assure that the insurer will be able to pay claims. For small losses, these latter
costs may be several times the size of the expected cost of losses. There is hardly any
point in paying such costs unless the protection offered has real value to a buyer.

o Affordable premium: If the likelihood of an insured event is so high, or the cost of the
event so large, that the resulting premium is large relative to the amount of protection
offered, then it is not likely that the insurance will be purchased, even if on offer.
Furthermore, as the accounting profession formally recognizes in financial accounting
standards, the premium cannot be so large that there is not a reasonable chance of a
significant loss to the insurer.

o Calculable loss: There are two elements that must be at least estimable, if not formally
calculable: the probability of loss, and the attendant cost. Probability of loss is generally
an empirical exercise, while cost has more to do with the ability of a reasonable person in
possession of a copy of the insurance policy and a proof of loss associated with a claim
presented under that policy to make a reasonably definite and objective evaluation of the
amount of the loss recoverable as a result of the claim.

11
o Limited risk of catastrophically large losses: Insurable losses are ideally
independentand non-catastrophic, meaning that the losses do not happen all at once and
individual losses are not severe enough to bankrupt the insurer; insurers may prefer to
limit their exposure to a loss from a single event to some small portion of their capital
base. Capital constrains insurers' ability to sell earthquake insurance as well as wind
insurance in hurricane zones. In the United States, flood risk is insured by the federal
government. In commercial fire insurance, it is possible to find single properties whose
total exposed value is well in excess of any individual insurer's capital constraint. Such
properties are generally shared among several insurers, or are insured by a single insurer
who syndicates the risk into the reinsurancemarket.

12
LEGAL

When a company insures an individual entity, there are basic legal requirements and regulations.
Several commonly cited legal principles of insurance include:

 Indemnity – the insurance company indemnifies, or compensates, the insured in the case of
certain losses only up to the insured's interest.

 Benefit insurance – as it is stated in the study books of The Chartered Insurance Institute, the
insurance company does not have the right of recovery from the party who caused the injury
and is to compensate the Insured regardless of the fact that Insured had already sued the
negligent party for the damages (for example, personal accident insurance)

 Insurable interest – the insured typically must directly suffer from the loss. Insurable interest
must exist whether property insurance or insurance on a person is involved. The concept
requires that the insured have a "stake" in the loss or damage to the life or property insured.
What that "stake" is will be determined by the kind of insurance involved and the nature of
the property ownership or relationship between the persons. The requirement of an insurable
interest is what distinguishes insurance from gambling.

 Utmost good faith - the insured and the insurer are bound by a good faith bond of honesty
and fairness. Material facts must be disclosed.

13
 Contribution – insurers which have similar obligations to the insured contribute in the
indemnification, according to some method.

 Subrogation – the insurance company acquires legal rights to pursue recoveries on behalf of
the insured; for example, the insurer may sue those liable for the insured's loss. The Insurers
can waive their subrogation rights by using the special clauses.

 Causa proxima, or proximate cause – the cause of loss (the peril) must be covered under the
insuring agreement of the policy, and the dominant cause must not be excluded

 Mitigation – In case of any loss or casualty, the asset owner must attempt to keep loss to a
minimum, as if the asset was not insured.

14
 INDEMNIFICATION

To "indemnify" means to make whole again, or to be reinstated to the position that one was in to
the extent possible, prior to the happening of a specified event or peril. Accordingly, life
insurance is generally not considered to be indemnity insurance, but rather "contingent"
insurance (i.e., a claim arises on the occurrence of a specified event). There are generally three
types of insurance contracts that seek to indemnify an insured:

 A "reimbursement" policy
 A "pay on behalf" or "on behalf of policy"
 An "indemnification" policy from an insured's standpoint, the result is usually the same:
the insurer pays the loss and claims expenses.

If the Insured has a "reimbursement" policy, the insured can be required to pay for a loss and
then be "reimbursed" by the insurance carrier for the loss and out of pocket costs including, with
the permission of the insurer, claim expenses.

Under an "indemnification" policy, the insurance carrier can generally either "reimburse" or "pay
on behalf of" whichever is more beneficial to it and the insured in the claim handling process.
(An individual, corporation, or association of any type, etc) becomes the 'insured' party once
Under a "pay on behalf" policy, the insurance carrier would defend and pay a claim on behalf of
the insured who would not be out of pocket for anything. Most modern liability insurance is
written on the basis of "pay on behalf" language which enables the insurance carrier to manage
and control the claim.

An entity seeking to transfer risk is assumed by an 'insurer', the insuring party, by means of a
contract, called an insurance policy. Generally, an insurance contract includes, at a minimum, the
following elements: identification of participating parties (the insurer, the insured, the
beneficiaries), the premium, the period of coverage, the particular loss event covered, the amount
of coverage (i.e., the amount to be paid to the insured or beneficiary in the event of a loss), and

15
exclusions (events not covered). An insured is thus said to be "indemnified" against the loss
covered in the policy.

When insured parties experience a loss for a specified peril, the coverage entitles the
policyholder to make a claim against the insurer for the covered amount of loss as specified by
the policy. The fee paid by the insured to the insurer for assuming the risk is called the premium.
Insurance premiums from many insured are used to fund accounts reserved for later payment of
claims – in theory for a relatively few claimants – and for overhead costs. So long as an insurer
maintains adequate funds set aside for anticipated losses (called reserves), the remaining margin
is an insurer's profit.

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17
TYPES OF INSURANCE:

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

 AUTO INSURANCE

Auto insurance protects the policyholder against financial loss in the event of an incident
involving a vehicle they own, such as in a traffic collision.

Coverage typically includes:

 Property coverage, for damage to or theft of the car.

 Liability coverage, for the legal responsibility to others for bodily injury or property
damage.

 Medical coverage, for the cost of treating injuries, rehabilitation and sometimes lost
wages and funeral expenses.

 GAP INSURANCE

Gap insurance covers the excess amount on your auto loan in an instance where your insurance
company does not cover the entire loan. Depending on the company's specific policies it might or
might not cover the deductible as well. This coverage is marketed for those who put low down
payments have high interest rates on their loans, and those with 60-month or longer terms. Gap
insurance is typically offered by a finance company when the vehicle owner purchases their
vehicle, but many auto insurance companies offer this coverage to consumers as well.

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  HEALTH INSURANCE

Health insurance policies cover the cost of medical treatments. Dental insurance, like medical
insurance, protects policyholders for dental costs. In most developed countries, all citizens
receive some health coverage from their governments, paid through taxation. In most countries,
health insurance is often part of an employer's benefits.

ACCIDENT, SICKNESS AND UNEMPLOYMENT INSURANCE

 Disability insurance policies provide financial support in the event of the policyholder
becoming unable to work because of disabling illness or injury. It provides monthly support
to help pay such obligations as mortgage loans and credit cards. Short-term and long-term
disability policies are available to individuals, but considering the expense, long-term
policies are generally obtained only by those with at least six-figure incomes, such as
doctors, lawyers, etc. Short-term disability insurance covers a person for a period typically
up to six months, paying a stipend each month to cover medical bills and other necessities.

 Long-term disability insurance covers an individual's expenses for the long term, up until
such time as they are considered permanently disabled and thereafter Insurance companies
will often try to encourage the person back into employment in preference to and before
declaring them unable to work at all and therefore totally disabled.

 Disability overhead insurance allows business owners to cover the overhead expenses of
their business while they are unable to work.

 Total permanent disability insurance provides benefits when a person is permanently

disabled and can no longer work in their profession, often taken as an adjunct to life
insurance.

19
  Workers' compensation insurance replaces all or part of a worker's wages lost and
accompanying medical expenses incurred because of a job-related injury.

 CASUALTY INSURANCE

Casualty insurance insures against accidents, not necessarily tied to any specific property. It is a
broad spectrum of insurance that a number of other types of insurance could be classified, such as
auto, workers compensation, and some liability insurances.

 Crime insurance is a form of casualty insurance that covers the policyholder against
losses arising from the criminal acts of third parties. For example, a company can obtain
crime insurance to cover losses arising from theft or embezzlement.

 Political risk insurance is a form of casualty insurance that can be taken out by businesses
with operations in countries in which there is a risk that revolution or other political
conditions could result in a loss.

20
  LIFE INSURANCE

Life insurance provides a monetary benefit to a decedent's family or other designated

beneficiary, and may specifically provide for income to an insured person's family, burial,
funeral and other final expenses. Life insurance policies often allow the option of having the
proceeds paid to the beneficiary either in a lump sum cash payment or an annuity. In most states,
a person cannot purchase a policy on another person without their knowledge.

Annuities provide a stream of payments and are generally classified as insurance because they
are issued by insurance companies, are regulated as insurance, and require the same kinds of
actuarial and investment management expertise that life insurance requires. Annuities and
pensions that pay a benefit for life are sometimes regarded as insurance against the possibility
that a retiree will outlive his or her financial resources. In that sense, they are the complement of
life insurance and, from an underwriting perspective, are the mirror image of life insurance.

Certain life insurance contracts accumulate cash values, which may be taken by the insured if the
policy is surrendered or which may be borrowed against. Some policies, such as annuities and
endowment policies, are financial instruments to accumulate or liquidate wealth when it is
needed.

21
  PROPERTY INSURANCE

Property insurance provides protection against risks to property, such as fire, theft or weather
damage. This may include specialized forms of insurance such as fire insurance, flood insurance,
earthquake insurance, home insurance, inland marine insurance, boiler insurance. The term
property insurance may, like casualty insurance, be used as a broad category of various subtypes
of insurance, some of which are listed below:

 AVIATION INSURANCEprotects aircraft hulls and spares, and associated liability

risks, such as passenger and third-party liability. Airports may also appear under this
subcategory, including air traffic control and refueling operations for international
airports through to smaller domestic exposures.

 BOILER INSURANCE (also known as boiler and machinery insurance, or equipment

breakdown insurance) insures against accidental physical damage to boilers, equipment
or machinery.

 BUILDER’S RISK INSURANCEinsures against the risk of physical loss or damage to

property during construction. Builder's risk insurance is typically written on an "all risk"
basis covering damage arising from any cause (including the negligence of the insured)
not otherwise expressly excluded. Builder's risk insurance is coverage that protects a
person's or organization's insurable interest in materials, fixtures or equipment being used
in the construction or renovation of a building or structure should those items sustain
physical loss or damage from an insured peril.

 CROP INSURANCEmay be purchased by farmers to reduce or manage various risks

associated with growing crops. Such risks include crop loss or damage caused by
weather, hail, drought, frost damage, insects, or [Link]-based insurance uses
models of how climate extremes affect crop production to define certain climate triggers
that if surpassed have high probabilities of causing substantial crop loss. When
harvestlosses occur associated with exceeding the climate trigger threshold, the index-
insured farmer is entitled to a compensation payment.

22
 EARTHQUAKE INSURANCEis a form of property insurance that pays the
policyholder in the event of anearthquake that causes damage to the property. Most
ordinary home insurance policies do not cover earthquake damage. Earthquake insurance
policies generally feature a high deductible. Rates depend on location and hence the
likelihood of an earthquake, as well as the construction of the home.

 FIDELITY BONDis a form of casualty insurance that covers policyholders for losses
incurred as a result of fraudulent acts by specified individuals. It usually insures a
business for losses caused by the dishonest acts of its employees.

 FLOOD INSURANCEprotects against property loss due to flooding. Many U.S.

insurers do not provide flood insurance in some parts of the country. In response to this,
the federal government created the National Flood Insurance program which serves as the
insurer of last resort.

 HOME INSURANCE, also commonly called hazard insurance or homeowners

insurance, provides coverage for damage or destruction of the policyholder's home.
Maintenance-related issues are typically the homeowner's responsibility. The policy may
include inventory, or this can be bought as a separate policy, especially for people who
rent housing. In some countries, insurers offer a package which may include liability and
legal responsibility for injuries and property damage caused by members of the
household, including pets.

 MARINE INSURANCE AND MARINE CARGO INSURANCEcovers the loss or

damage of vessels at sea or on inland waterways, and of cargo in transit, regardless of the
method of transit. When the owner of the cargo and the carrier are separate corporations,
marine cargo insurance typically compensates the owner of cargo for losses sustained
from fire, shipwreck, etc., but excludes losses that can be recovered from the carrier or
the carrier's insurance. Many marine insurance underwriters will include "time element
coverage in such policies, which extends the indemnity to cover loss of profit and other
business expenses attributable to the delay caused by a covered loss.

23
24
 BACKGROUND
OF STUDY

“Life Insurance is a contract for payment of a sum of money to the person assured on the
happening of the event insured against”. Usually the insurance contract provides for the payment

25
of an amount on the date of maturity or at specified dates at periodic intervals orat unfortunate
death if it occurs earlier. Obviously, there is a price to be paid for thisbenefit. Among other
things the contracts also provides for the payment of premiums, by the assured.

Life Insurance is universally acknowledged as a tool to eliminate risk, substitute certainty for
uncertainty and ensure timely aid for the family in the unfortunate event of the death of the
breadwinner. In other words, it is the civilized world’s partial solution to the problems caused by
death. Life insurance helps in two ways dealing with premature death, which leaves dependent
families to fend for themselves and old age withoutvisible means of support.

The most common types of life insurance are whole life insurance and term life insurance.
Whole life insurance provides a lifetime of protection as long as you pay the premiums to keep
the policy active. They also accrue a cash value and thus offer a savings component. Term life
insurance provides protection only during the term of the policy and the policies are usually
renewable at the end of the terms.

26
27
 TYPES OF LIFEINSURANCE POLICIES

WHOLE LIFE INSURANCE POLICY:

Whole life is a form of permanent insurance, with guaranteed rates and guaranteed cash values.
It is the least flexible form of permanent insurance. It covers the insured for life. The insured
does not receive moneywhile he is alive; the nominee receives the sum assured plus bonus upon
death of theinsured.

UNIVERSAL LIFE INSURANCE

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

VARIABLE LIFE INSURANCE

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

GROUP LIFE INSURANCE

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

ENDOWMENT POLICIES

Cover the insured for a specific period. The insured receivesmoney on survival of the term
and is not covered thereafter.

28
MONEY BACK POLICIES

The nominee receives money immediately on death of theinsured. On survival the insured
receives money at regular intervals during the [Link] policies cost more than endowment
with profit policies.

ANNUITIES / CHILDREN'S POLICIES

The nominee receives a guaranteed amount of moneyat a pre-determined time and not
immediately on death of the insured. On survival theinsured receives money at the same pre-
determined time. These policies are best suitedfor planning children's future education and
marriage costs.

PENSION SCHEMES

It is the policies that provide benefits to the insured only upon [Link] the insured dies
during the term of the policy, his nominee would receive the benefitseither as a lump sum or
as a pension every month. Since a single policy cannot meet allthe insurance objectives, one
should have a portfolio of policies covering all the needs.

29
THERE ARE A NUMBER OF POLICIES FOR SPECIFIC INSURANCE
NEEDS. SOME OF THESE INCLUDE:

A. FAMILY INCOME LIFE INSURANCE

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

B. FAMILY INSURANCE.

A life whole policy that insurers all the members off immediate family husband,wife ,
[Link], the coverage is sold in units per person, with the primary wage-earner
insured for the greatest amount.

C. SENIOR LIFE INSURANCE.

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

D. JUVENILE INSURANCE.

This is life insurance on a child. Coverage is paid for by an adult, usually theparents or
guardians. Such policies are not considered traditional life insurancebecause the child is not
producing an income that needs to be [Link], by buying the policy when the
child is young, the parents are able to lock in anextremely low premium rate and allow many
more years of tax-deferred cashvalue buildup.

30
E. .CREDIT LIFE INSURANCE.

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

F. MORTGAGE INSURANCE

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

G. ANNUNITY

An annuity is a form of insurance that enables you to save for your retirement. Basically, you
give the insurance company money for a certain period of time and then after you retire they
will pay you a certain amount of money every year until you die.

31
 COMPANY PROFILE:

 LIFE INSURANCE COMPANIES BRIEF DETAILS

There are currently, a total of 24 life insurance companies in India. Of these, Life Insurance
Corporation of India (LIC) is the only public sector insurance company. All others are private
insurance companies. Many of these are joint ventures between public/private sector banks and
national/international insurance-financial companies.

Private life insurance companies in India got access to the life insurance sector in the year 2000.
Most private players have tied up with international insurance giants for their life insurance
foray.

LIFE INSURANCE CORPORATION OF INDIA:

Life Insurance Corporation of India (abbreviated as LIC) is an Indian state-owned

insurancegroup and investment corporation owned by the Government of [Link] Life
Insurance Corporation of India was founded in 1956 when theParliament of India passed the Life
Insurance of India Act that nationalized the insurance industry in India. Over 245 insurance
companies and provident societies were merged to create the state-owned Life Insurance
Corporation of India.
As of 2019, Life Insurance Corporation of India had total life fund of ₹28.3 [Link] total
value of sold policies in the year 2018-19 is ₹21.4 million. Life Insurance Corporation of India
settled 26 million claims in 2018-19. It has 290 million policy holders.

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VISION

"A trans-nationally competitive financial conglomerate of significance to societies and Pride of

India”

MISSION

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

SLOGAN

LIC's slogan yogakshemamvahaamyaham is in Sanskrit which loosely translates into English as

"Your welfare is our responsibility". The slogan can be seen in the logo, written in Devanagari
script. This line means "I carry what they lack, and I preserve what they have".

AWARDS AND RECOGNITIONS:

 The Economic Times Brand Equity Survey 2012 rated LIC as the No. 6 Most Trusted
Service Brand of India.
 From the year 2006, LIC has been continuously winning the Readers' Digest Trusted
brand award.
 Voted India's Most Trusted brand in the BFSI category according to the Brand Trust
Report for 4 continuous years - 2011-2014 according to the Brand Trust Report.

33
PRODUCTS OFFERED BY LIC:

LIC TERM PLANS:

 LIC ANMOL JEEVAN

 LIC AMULYA JEEVAN
 LIC E-TERM

LIC PENSION PLANS:

 LIC JEEVAN AKSHAY

 LIC NEW JEEVAN NIDHI
 PRADHAN MANTRI VAYA VANDANA YOJANA

LIC CHILD PLANS

 LIC NEW CHILDREN MONEY BACK POLICY

ENDOWMENT PLANS:

 LIC’S JEEVAN PRAGATI

 LIC’S JEEVAN LABH
 LIC’S SINGLE PREMIUMENDOWMENT PLANS
 LIC’S NEW ENDOWMENT PLANS
 LIC’S JEEVAN LAKSHYA

LIC WHOLE LIFE PLANS

 LIC’S JEEVAN UMANG

LIC MONEY BACK PLANS

 LIC NEW MONEY BACK PLAN (20 OR 25 YRS)

 LIC NEW BIMA BACHAT
 LIC JEEVAN TARUN

34
35
ICICI PRUDENTIAL LIFE INSURANCE COMPANY

ICICI Prudential Life Insurance Corporation of India is a joint venture between ICICI Bank Ltd.;
one of the India’s leading private sector bank and Prudential Plus; one of the largest international
financial service group. The company began its operation in December 2000 as the first private
sector Life insurance in India. For over a decade the company has maintained its top
mostposition amongst the private life insurer in country. To fulfill the different life stage
requirements of the customer, ICICI Prudential Life Insurance provides an array of products that
enables the buyers to achieve the long term goal. ICICI Prudential life insurance offers products
like term plan, ULIP plan, Pension Plan, Child Plan and Investment Plan.

PRODUCT PORTIFOLIO

 ICICI PRU1 WEALTH PLAN

 ICICI PRU LIFETIME CLASSIC
 ICICI PRU ELITE LIFE SUPER
 ICICI PRU GUARANTEED WEALTH PROTECTOR
 ICICI PRU SMART LIFE
 ICICI PRUDENTIAL SMART KID SOLUTION

36
TATA AIA LIFE INSURANCE COMPANY

TATA Sons and the AIA Group teamed up to form a joint venture and has launched TATA AIA
life Insurance Company. In this venture the majority of stake i.e. 75% is held by TATA Sons and
26 % by AIA Group of company. The company works with a customer centric approach and
offers an extensive range of Insurance Product to people, association and corporate insurance
buyers. Started working in year 2001 the company provides various plan in multiple segments
like group plan, child plan, wealth plan, protection plan, saving plan and micro insurance plan.
Among the numerous insurance companies in India, TATA AIA Life Insurance has made a
remarkable position in the insurance sector of the country. 

PRODUCT PORTFOLIO:

 INVEST ASSURE
 HEALTH PROTECTOR
 STAR KID
 MONEY SAVER PLAN
 HEALTH FIRST
 ASSURE GOLDEN LIFE
 ASSURE 10, 20, 30 YEARS – SECURITY AND GROWTH
 ASSURE EDUCATE AT 18, 21
 ASSURE CAREER BUILDER PLAN AT 27

37
 HDFC STANDARD LIFE INSURANCE COMPANY

HDFC Standard Life Insurance Corporation India is a joint venture between Housing
Development Financial Corporation Ltd. and Standard Life Plus. Founded in year 2000 HDFC
Standard Life insurance is one of the leading insurance firm in India. The company has currently
27 retail and 8 group products in portfolio. In order to meet the various needs of the customer the
company provides an array of individual and group insurance solutions like pension plan, saving
and health plan, protection plan, child plan and women plan. With over 414 branches spread in
900 cities and towns in India the company has a claim settlement ratio of 95.02%. HDFC Life
Insurance Company offers plans in a much customized way to fulfill the requirements of the
customer.

PRODUCT PORTIFOLIO

INDIVIDUAL AND GROUP PLANS:

 WITH PROFIT ENDOWMENT ASSURANCE

 WITH PROFITS MONEY BACK
 SINGLE PREMIUM WHOLE OF LIFE
 TERM ASSURANCE PLAN
 LOAN COVER TERM ASSURANCE
 PERSONAL PENSION PLAN
 GROUP TERM INSURANCE
 DEVELOPMENT INSURANCE PLAN

38
KOTAK MAHINDRA LIFE INSURANCE COMPANY

Headquartered in Mumbai the J.V between Kotak Mahindra Group and Old Mutual Fund is
Kotak Mahindra Life Insurance. It is one of the fastest growing insurance company in India that
has a 4 million trusted policyholder nationwide. Keeping their customers in high priority the
company provides a much affordable range of term plan, ULIP planchild plan, saving plan,
investment plan, protection plan and retirement plan. The company has much gained name in the
market for delivering outstanding value to its customer through customized products and
excellent service. The Kotak Mahindra Life Insurance provides plans with a maximum tenure of
30 years and eligibility criteria with minimum 18 years to maximum 65 years.

PRODUCT PORTFOLIO:

INDIVIDUAL PLAN:

 KOTAK ENDOWMENT PLAN

 KOTAK TERM PLAN
 KOTAK RETIREMENT INCOME PLAN
 KOTAK CHILD ADVANTAGE PLAN
 KOTAK CAPITAL MULTIPLIER PLAN
 KOTAK SAFE INVESTMENT PLAN
GROUP PLAN

 KOTAK CREDIT AND TERM GROUP PLAN

39
 RELIANCE LIFE INSURANCE COMPANY

One of the India’s largest life insurance firm Reliance Life Insurance (now changed to reliance
Nippon life insurance) is a part of Reliance capital of the Reliance Group. The company has over
10 million policyholder country wise with a network close to 1,230 branches across the country.
The company is currently the largest non-bank supported private life insurer in India. Reliance
Life Insurance has claim settlement ration of approximately 95.01% and have a record of
maximum grievances resolved over a year. The company mainly target products to individuals
along with the group sand corporate entities. The company offers some of the most
comprehensive plans like retirement, children, protection, investment and health plan. The
maximum tenure of the policies is 35 years and the eligibility criteria to avail the criteria starts
from minimum 18 years – maximum 55 years.

PRODUCT PORTFOLIO:

RELIANCE LIFE INSURANCE –PROTECTION PLANS:

 RELIANCE TERM PLAN

 RELIANCE ONLINE TERM
 RELIANCE ONLINE INCOME PROTECT

40
RELIANCE LIFE INSURANCE – RETIREMENT PLANS:

 RELIANCE SMART PENSION PLAN

 RELIANCE IMMEDIATE ANNUITY PLAN

RELIANCE LIFE INSURANCE – SAVINGS AND INVESTMENTS

 RELIANCE SUPER MONEY BACK PLAN

 RELIANCE GUARANTEED MONEY BACK PLAN
 RELIANCE FIXED SAVINGS
 RELIANCE FIXED MONEY BACK PLAN
 RELIANCE LIFELONG SAVINGS
 RELIANCE MONEY MULTIPLIER PLAN

RELIANCE LIFE INSURANCE – CHILD PLANS:

 RELIANCE CHILD PLAN

 RELIANCE EDUCATION PLAN

41
PNB METLIFE INSURANCE COMPANY

An association of Punjab National Bank PNB MetLife Insurance is one of the fastest growing
life insurance companies in India. The company has over 1,800 corporate clients in India and is
spread over 150 different locations in country. The company is well known for its protection and
retirement products. Apart from this there are various plans like child plan, saving plan, ULIP
plan, Monthly income plan and money back plan that is offered to the customer. PNB MetLife
Insurance Company in India came into action in year 2008 and was recognized as best private
sector insurance company for the year 2013-2014. For the insurance products offered by the
company the eligibility criteria starts from minimum 18 years –maximum 65 years old.

PRODUCT PORTFOLIO:

PNB METLIFE TERM PLANS:

 MET FAMILY INCOME PROTECTOR PLUS

PNB METLIFE ULIP PLANS:

 MET SMART PLATINUM PLAN

PNB METLIFE CHILD PLANS:

 MET SMART CHILD

 MET COLLEGE PLAN

42
PNB METLIFEPENSION PLANS:

 MET MONTHLY INCOME PLAN-10 PAY

PNB METLIFEINVESTMENT PLANS:

 MET MONEY BACK PLAN

 MET SMART ONE
 MET SMART ONE
 MET BACHAT YOJANA
 MET DHAN SAMURIDDHI

43
BIRLA SUN LIFE INSURANCE COMPANY:

With a 2.5 million of customer base the Birla Sun Life Insurance is one of the leading insurance
companies in India.  Birla Sun Life Insurance came in to existence with the joint venture
between Aditya Birla Group and Sun Life Financial Inc. The company is known as a pioneer of
Unit Linked Life Insurance plans and has over 600 branches spread over 500 cities across the
country. A complete range of insurance services is offered by Birla Sun Life Insurance like
protection plan, child plan, health and retirement solution, ULIP plan, customized group product
and life stage product to provide complete satisfaction to the customers. With a claim settlement
ratio of 88.45 % the company offers the best plans for the customers.

PRODUCT PORTFOLIO:

INDIVIDUAL LIFE:

 PREMIUM BACK TERM PLAN

 FLEXI SECURE LIFE RETIREMENT PLAN
 BIRLA SUN LIFE TERM PLAN
 FLEXI LIFE LINE WHOLE LIFE PLAN
 FLEXI CASH FLOW MONEY BACK PLAN

GROUP LIFE:
 PRO GROUP TERM INSURANCE
 GROUP SUPERANNUATION AND GRATUITY PLAN
BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED:

44
Bajaj Allianz Life Insurance is a joint venture between the European financial services company
Allianz SE and BajajFinsery Limited. The company has gained name as one of the top most life
insurance brand in India. Among the other life insurance companies in India Bajaj Allianz Life
Insurance Company meet its customers need by providing them a huge range of products right
from ULIP and Child Plan to Group and Health Insurance. The company provides a huge array
of customized products that cater the every single demand of the customer and provide them a
transparent benefit. Launched in year 2001 this life insurance company provides a one stop
solution to the customers and help them in achieving their financial goals.

PRODUCT PORTFOLIO:

BAJAJ TERM PLAN:

 ISECURE PLAN
 ISECURE PLAN-II
 ISECURE LOAN PLAN
 ISECURE MORE PLAN
 LIFE SECURE
 LIFESTYLE SECURE

BAJAJ ALLIANZ LIFE ULIP PLANS:

 INVESTMENT PLANS- FUTURE GAIN

 INVESTMENT PLANS -FOR FORTUNE GAIN
 INVESTMENT PLANS -FUTURE WEALTH GAIN
 INVESTMENT PLANS -FUTURE GAIN
 INVESTMENT PLANS- LONGLIFE GOALS

45
BAJAJ ALLIANZ LIFE CHILD PLANS:

 BAJAJ ALLIANZ YOUNG ASSURE

 BAJAJ ALLIANZ LIFE LONG ASSURE

BAJAJ ALLIANZ LIFEPENSION PLANS:

 BAJAJ ALLIANZ LIFE PENSION GUARANTEE PLAN

 BAJAJ ALLIANZ LIFERETIRE RICH
 BAJAJ ALLIANZ LIFE LONG GOALS PLANS

BAJAJ ALLIANZ LIFEINVESTMENT PLANS:

 BAJAJ ALLIANZ INVEST ASSURE

 BAJAJ ALLIANZ LIFE MY WEALTH GOAL
 BAJAJ ALLIANZ FORTUNE GAIN
 BAJAJ ALLIANZ ELITE ASSURE

BAJAJ ALLIANZ LIFESAVING PLANS:

 BAJAJ ALLIANZ SAVE ASSURE

 BAJAJ ALLIANZ GUARANTEE ASSURE
 BAJAJ ALLIANZ CASH ASSURE
 BAJAJ ALLIANZ SUPER LIFE ASSURE
 BAJAJ ALLIANZ INCOME ASSURE

BAJAJ ALLIANZ LIFE GROUP INSURANCE PLANS:

 BAJAJ ALLIANZ LIFE JAN SURAKSHA YOJANA

 BAJAJ ALLIANZ LIFE GROUP TERM LIFE INSURANCE PLAN
 BAJAJ ALLIANZ LIFE GROUP SUPER ANNUNATION SECURE

46
 CHAPTER 2 – RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY:

 Ascertain the profile and characteristics of potential buyers.

 To have an insight into the attitudes and behaviors of customers.
 To find out the differences among perceived service and expected service.
 To produce an executive service report to upgrade service characteristics of life insurance
companies.
 To access the degree of satisfaction of the consumers with their current brand of insurance
products

STATEMENT OF THE PROBLEM:

This study will help us to understand “the awareness of life insurance among people”. This study
will help the companies to understand, how a consumer selects, organizes and interprets the
Quality of service and product portfoliolife insurance companies.

SAMPLE DESIGN:

The process of drawing a sample from a large population is called sampling. Population refers to
the total of items about which information is defined. Well-selected samples may reflect fairly
and accurately the characteristics of the population.

SAMPLING UNIT:

The sample unit of this survey was the customers having life insurance policies in Kalyan city.

47
SAMPLE SIZE:

The sample size was 50 customers of different life insurance companies, from the various parts
of the Kalyan city.

SAMPLING TECHNIQUE ADOPTED:

Convenient sampling

SOURCES OF DATA:
After identifying and defining the research problem and determining specific information
required to solve the problem the researcher will look for the type and sources of data which may
yield the desired results, while deciding about the method of data collection to be used for the
study, there are two types of data.

 PRIMARY DATA:

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

 SECONDARY DATA:

Secondary data means data that are already available i.e. they refer to the data which have been
collected and analyzed by someone and can save both money and time of the researcher.

48
Secondary data may be available in the form of company records, trade publications, libraries
etc. Secondary data sources are as follows:
 Company Reports
 Daily Newspapers
 Standard Textbook
 Various Websites
 Magazines
 Periodicals
 Internet

 FIELD WORK:

An interview-schedule and well-structured questionnaire is administered to the target

respondents to collect primary data (Copy of questionnaire is attached in the appendix). Open
and close-ended questions are used in the questionnaire. The orders of the questions are in such a
manner that they begin with simple questions and lead on the questions that needed more
involvement from respondents. The secondary data are collected from periodicals, magazines,
journals and Internet.

49
IMPORTANCES OFSTUDY:

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

2) Consumer markets and consumer buying behavior can be understood before sound product
and marketing plans are developed.

3) This study will help companies to customize the service and product, according to the
consumer’s need.

4) This study will also help the companies to understand the experience and expectations of the
existing customers.

5)Apart from creating, manufacturing and distribution capabilities for life insurance products,
and in depth study of the consumers, their preferences and demand for their product is very
necessary for setting up an efficient marketing network.

50
SCOPE OF THE STUDY:

 The study will be able to reveal the preferences, needs, perception of the customers
regarding the life insurance products.
 It also helps the insurance companies to know whether the existing products are really
satisfying the customers needs.
 The study helps the insurance company by creating awareness about the consumers of
different ages and income levels.
 The study also enables the companies to focus the consumer preferences and expectations
on the product which they offer.

51
HYPOTHESIS:

H0:- There is significant difference between level of awareness towards life insurance among
male and female.

H1:-There is no significant difference between level of awareness towards life insurance among
male and female.

H0:- There is relationship between education of the respondents and attitude toward life
insurance.
H2:- There is no relationship between education of the respondents and attitude toward life
insurance.

52
LIMITATIONS OF STUDY:

Although the study was carried out with extreme enthusiasm and careful planning there are
several limitations, which handicapped the research viz.

 Time Constraints:

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

 Sample size:

Due to time constraints the sample size was relatively small and would definitely have been
more representative if I had collected information from more respondents.

 Accuracy:

It is difficult to know if all the respondents gave accurate information; some respondents tend to
give misleading information.

53
 CHAPTER 3- REVIEW OF LITERATURE:

 C. Balaji (2015), in his paper- Customer awareness and satisfaction of life insurance
policy holders with reference to Mayiladuthurai town tries to measure awareness among
the urban and rural consumer about the insurance sector and also the various policies
involving various premium rates. The study was conducted by examining around sample
respondents which revealed that 100% of respondents are aware of the life insurance
policies; where as 87% of the respondents came to know about insurance policies through
agents. But it also came to light that Most of the respondents are aware of government
insurance company LIC and in the private sector HDFC Standard Life insurance. Finally
the research concludes that the penetration level of insurance in India is only 2.3% when
compared to 9-15% in the developed nations. So there is a huge market for the Insurance
products in the future in India.

 Savita Jindal (2014), in her study on, “Ethical Issue in Insurance Companies: A
Challenge forIndian Insurance Sector” has attempted to find out various ethical issue of
insurance companiesin India by examining a sample of 50 people from insuring public
were interviewed withinsurance policies of life insurance to find out the ethical ways in
settlement of claims. The studyrevealed that insurance companies in India are Failing in
identifying the customer's needs andrecommend products and services that meet their
need followed by Misrepresenting in termsand conditions while selling products to
customers, Unethical remarks about competitors, theirproducts, or their employees or
agents and lastly lack of expertise or skills to competentlyperform one's duties. Finally
the paper concludes that insurance companies have recognized themoral dilemma in
claims settlement; they understand that if claims are not settled in ethicalmanner it will
result in bad consequence for company image which will fall back on the insuredor the
beneficiary. Finally the research stated that insurance business sector has many areas
forimprovement and development.
 SACHIN SURANA & AMAR(2013),in the research article lapsation of policy; a threat
or curse for life insurance industry. This research has attempted to find out the cause and
effects relationship of the Lapsation of policy. This study explains that Lapsation refers to

54
 the situation when the customer fails to pay the premium on his policy within the
timeframe plus the grace period allowed by the company& it is often termed as
persistency. The research has highlighted that wrong commitment by insurance agents,
malpractices by the insurance distribution agencies, financial burden of the costumers &
finally poor service quality are few reasons causing lapse of insurance policies. This
lapsation will not only affect the costumers in terms of lack of benefits but also majorly
effect insurance companies in terms of high initial cost, adverse effect on liquidity
position and majorly decrease of public image all this totally hamper the overall growth
of insurance company.

 .Vijay Kumar (2012)"A Contemporary Study of Factors Influencing Urban and Rural
Consumers for Buying Different Life Insurance Policies in Haryana”, makes an in- depth
study of the factors influencing buyer behaviour for buying life insurance policies in
Haryana. The survey was conducted in Haryana on 1000 policyholders. The study
outlines that the insurance agent was the most influential factor for selecting the life
insurance policy among rural and urban policyholders. The other crucial determinants of
buying behaviour were also identified such as income, economic status, product
attributes, agent attributes, and price. Theresult indicates that there was a significant
difference in the buying behaviours of rural andurban policyholders.

 Upadhyaya and Badlani (2011), in their research, attempt to identify the key success
factors in the life insurance industry, in terms of customer satisfaction so as to survive
intense competition and to increase the market share. The objectives of the study are to
identify the factors of customer satisfaction in retail life Insurance in India and to study
the importance of technology in fulfilling Customer Satisfaction. Data was collected from
and Maharashtra state in India. The study concludes that despite high satisfaction levels,
there remains a lot to be done by the management of the retail life Insurance companies
to maximize their customer satisfaction and improve the quality of service. The
satisfaction of the customer with the services of the Life Insurance Companies was found
to be linked with the performance of the service in India. The paper explains that Micro-

55
 insurance concept means it’s a concept that provides protection to individuals who have
little savings and is tailored specifically for lower valued assets and compensation for
illness, injury or death. And it also highlights that Micro-insurance is often found in
developing countries. In India according to IRDA regulation act of 2002 insurance
companies were compelled to obtain insurance business on a quota basis from pre-
defined rural areas and social sectors. In addition the regulation also creates a new
intermediary called the micro-insurance agent for selling and servicing various micro-
insurance products among the rural masses.

 SREEDEVI LAKSHMIKUTTY AND SRIDHARAN BASKAR, in their research on

“Insurance Distribution in India - A Perspective”, this paper discusses the distribution
channels from the perspective of the socio-cultural ethos of the market and how these
channels fit into it, along with where the various companies face challenges and
bottlenecks. The authors have explored the various dimension of Distribution Scenario in
the Indian market and highlight that a multi-channel strategy is better suited for the
Indian market. The research concludes that current state of insurance distribution in India
is still in flux, so for companies to succeed in marketing of insurance depends on
understanding the social and cultural needs of the target population, and matching the
market segment with the suitable intermediary segment.

 Nagaraja Rao, K.(2010), in his article “Challenges in Designing Need Based Products in
Life Insurance for Inclusive Growth in India”, analyses the challenges faced by the
insurers in designing need-based products in insurance for inclusive growth, and
concludes that the policies of life insurance companies are still not rural-centric, catering
to the specific needs of the people. With a view to popularizing life insurance, he
recommends that the consumers need to study the rural market, analyse the specific needs
of each segment and design innovative products, to suit the requests of the people to the
objective of inclusive growth.

56
 ALOK MITTAL AND AKASH KUMAR (2003),in their study “An Exploratory Study
of Factors Affecting Selection of Life Insurance Products” have attempted to identify the
factors which are affecting the consumers in taking into consideration before selecting a
life insurance product and determining the extent to which these factors are taken into
consideration for choosing life insurance products. The study highlighted that consumers
take into consideration factors like product attributes, customer delight, payment mode,
product flexibility, risk coverage, grace period, professional advisor, and maturity period
as important before making a decision on selection of a life insurance product but most
important factors which are of vital importance was product attributes, and the least
important was maturity period.

 [Link] RAO (2004)presented a paper titled “Alternative Distribution

Channels inIndia” in Global Conference of Actuaries. This research points out that a
distribution channelmeans a set of interdependent organizations involved in the process
of making a product orservice available for use or consumption by the consumer by
creating place utility & the value ofhaving the products where the customer wants them,
when they want them. The research saidthat in Distribution in Life Insurance requires the
intermediaries. The current insurance marketdepends heavily on Individual Agency
channel but it concluded that Alternative distributionchannels can give competitive edge
for the Insurers, a statistics of Alternative Distributionchannels of LIC suggest that
corporate agencies including banks are garnering 82% and the rest18% is coming from
Brokers & Over time bank assurance may get at least 20% distributionshare in life
insurance market.

57
 CHAPTER4- DATA ANALSIS, INTERPRETATION AND
PRESENTATION:

INTRODUCTION TO ANALYSIS:

Inorder to extract meaningful information from the data [Link] analysis can beconducted by
using simple statistical tools like percentages, averages and measuresof dispersion. Alternatively
the collected data may be analyzed, the data analysis iscarried out. The data are first edited,
coded and tabulated for analyzing by usingdiagrams, graphs, charts, pictures etc. Data analysis is
the process of planning thedata in an ordered form, combining them with the existing
information andextracting from them.
Interpretation is the process of drawing conclusions from the gathered data in thestudy. In this
research the researcher has analyzed the data using percentages andgraphs.

DATA ANALYSIS TOOLS USED:

In this research the data analysis tools used are percentages and graphs. The various attributes
were analyzed separately and the importance to each was calculated on the basis of the
percentage. The rank having the maximum percentage was taken to be preferred importance to
the particular attribute. After looking at each attribute separately, all the attributes were
considered together to develop a map on the most preferred rank for all the attributes.

58
 TABLE 1

AGE OF RESPONDENTS

[Link] AGE IN YEARS NUMBER PERCENTAGE

OF OF
RESPONDENTS RESPONDENTS

1. 19 – 28 24 48%

2. 29 – 38 13 26%
3. 39 – 48 6 12%
4. 49 – 58 6 12%
5. 59 – 68 0 0%
6. 69 – 78 1 2%
TOTAL 50 100%

SOURCE: SURVEY DATA

59
 GRAPH 1- GRAPH SHOWING AGE OF RESPONDENTS

60%

50%

40%

30%

20%

10%

0%
19-28 29-38 39-48 49-58 59-68 69-78
AGE IN YRS

INFERENCE:The above table and graph classified the respondents according to their age
group. The majority of the respondents belong to the age group 19 to 28 years with48% and the
second age group is 29 to 38 years with 26%, followed by 39 to 48 years and 49 to 58years with
12% each.

60
 TABLE 2

DIFFERENCIATION OF THE RESPONDENTS INTO MALE AND FEMALE

TYPES OF NUMBER OF PERCENTAGE OF

RESPONDENTS RESPONDENTS RESPONDENTS
MALE 34 68%
RESPONDENTS
FEMALE 16 32%
RESPONDENTS
TOTAL 50 100%

SOURCE: - SURVEY DATA

GRAPH 2- GRAPH SHOWING RESPONDENTS OF MALE AND FEMALE

MALE RESPONDENT
FEMALE RESPONDENT

INFERENCE: This table and graph helps us to understand that there are more number of
male consumers with 68% market share than the female consumers with 32% Market share.

61
 TABLE 3
DIFFERENCIATION OF RESPONDENTS BASED ON THEIR OCCUPATION
[Link] OCCUPATION NUMBER OF PERCENTAGE OF
RESPONDENTS
RESPONDENTS
1. STUDENTS 2 4%

2. GOVERNMENT 20 40%
EMPLOYEES
3. PRIVATE 24 48%
EMPLOYEES
4. HOUSE WIVES 2 4%

5. RETIRED 2 4%
PERSONS
TOTAL 50 100%
SOURCE: SURVEY DATA

GRAPH3- GRAPH SHOWING RESPONDENTS BASED ON OCCUPATION

60%

50%

40%

30%

20%

10%

0%
STUDENTS GOVERNMENT PRIVATE HOUSE WIVES RETIRED
EMPLOYEES EMPLOYEES PERSONS

OCCUPATION

INFERENCE: It could be inferred that majority of consumers of life insurance policies are
private employees with 48% and Government employees with 40%, followed by students, house
wives and retired persons with 4 % each.
TABLE 4 -TABLE SHOWING INCOME GROUP OF RESPONDENTS

62
 [Link] INCOME NUMBER OF PERCENTAGE OF
GROUP RESPONDENTS
RESPONDENTS

1. LESS THAN 5000 5 10%

2. 5001 – 10,000 16 32%

3. 10001 – 15000 17 34 %

4. 15001 – 20000 8 16 %

5. 20001 – 25000 2 4%

6. GREATER THAN 30000 1 2%

7. NIL 1 2%

TOTAL 50 100%

SOURCE: SURVEY DATA

GRAPH 4-GRAPH SHOWING INCOME GROUP OF RESPONDENTS

40%
35%
30%
25%
20%
15%
10%
5%
0%
<5000 5001- 10001- 15001- 20001- > NIL
10000 15000 20000 25000 25000

INFERENCE: The majority of dominant income group having life insurance policies belong
to the income group of 10,001 to 15,000, which is middle class group. Followed by the income
group of 5,001 to 10,000.
TABLE 5

63
 DIFFERENCIATION OF RESPONDENTS ACCORDING TO THE ASSETS
OWNED
[Link] ASSETS NUMBER OF PERCENTAGE OF
RESPONDENTS
RESPONDENTS
1. HOUSE 19 38%

2. TWO 25 50%
WHEELER
3. CAR 6 12%

TOTAL 50 100%

SOURCE: SURVEY DATA

GRAPH5- SHOWING DIFFERENCIATION OF RESPONDENTS ACCORDING TO

THE ASSET OWNED
60%

50%

40%

30%

20%

10%

0%
HOUSE TWOWHEELER CAR

INFERENCE: This table helps us to know that most of consumers with life insurance
policies own two wheelers with 50%, 38% of consumers own house and12% of the consumers
own car.
TABLE 6
MARKET SHARE OF DIFFERENT LIFE INSURANCE COMPANIES

64
 NUMBER OF PERCENTAGE OF
COMPANIES RESPONDENTS RESPONDENTS
LIC 39 78%

TATA AIA 1 2%

HDFC 3 6%

ICICI 4 8%

RELIANCE LIFE 1 2%

KOTAK MAHINDRA 1 2%

ALLIANCE BAJAJ 1 2%

SOURCE: SURVEY DATA

GRAPH 6- GRAPH SHOWING MARKET SHARE OF DIFFERENT LIFE INSURANCE
COMPANIES

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
I E J
LIC AI
A FC
IC
IC LIF RA JA
TA HD C E IN
D BA
TA N AH CE
LIA M N
RE K LIA
TA AL
KO

INFERENCE: This table helps us to understand the market share of different life insurance
companies. LIC has a major share of 78 %, followed by ICICI Prudential with 8% market share,
followed by HDFC Standard Life with 6% market share.
TABLE 7
TABLE SHOWING ATTRIBUTES FROM RESPONDENTS

65
[Link]. ATTRIBUTE RESPONDENTS RANK

1. RETURN ON 17 1
INVESTMENT

2. COMPANY 13 2
REPUTATION

3. PREMIUM 10 3
OUTFLOW

4. SERVICE 7 4
QUALITY

5. PRODUCT 3 5
QUALITY

SOURCE: SURVEY DATA

66
 GRAPH 7

GRAPH 7- GRAPH SHOWING ATTRIBUTES FROM RESPONDENTS

18
16
14
12
10
8
6
4
2
0
RETURN ON COMPANY PREMIUM SERVICE PRODUCT
INVESTMENT REPUTATION OUTFLOW QUALITY QUALITY

INFERENCE: This table shows the strengths and weaknesses of the company, and what are
the important criteria or attributes on which decision making is done. From this table we can
infer that consumers give more importance for Return on investment, secondly they prefer
company reputation, and then premium outflow followed by service quality and product quality.

67
 TABLE 8

FACTORS WHICH INFLUENCED TO SELECT LIFE INSURANCE COMPANY

[Link] FACTORS RESPODENTS RANK

1. PERSONAL INTEREST 25 1

2. FAMILY 11 2

3. FRIENDS 6 3

4. AGENTS 5 4
5. ADVERTISEMENT 2 5
6. OTHERS 1 6

SOURCE: SURVEY DATA

GRAPH 8-GRAPH SHOWINGFACTORS WHICH INFLUENCED TO SELECT A LIFE
INSURANCE COMPANY
30

25

20

15

10

0
ST ILY DS NT
S TS ER
S
ERE M IEN E EN H
NT FA FR AG M OT
LI TISE
A R
SON DVE
R A
PE

INFERENCE: This table is helpful in knowing which media is best suitable forpromoting a
life insurance company. It can be seen that personal factor influences aconsumers to select a life
insurance company, followed by family, friends, agents andadvertisements.

68
 TABLE 9
VALUE OF RESPONDENTS LIFE INSURANCE POLICY
[Link] AMOUNT NUMBER OF PERCENTAGE OF
RESPONDENTS RESPONDENTS
1. < 10000 0 0%
2. 10000 – 25000 5 10%
3. 25000 – 50000 8 16%
4. 50000-100000 15 30%
5. > 100000 22 44%

SOURCE : SURVEY DATA

GRAPH 9- GRAPH SHOWING VALUE OF RESPONDENTS LIFE INSURANCE

POLICY

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
< 10000 10000 – 25000 – 50000- > 100000
25000 50000 100000

INFERENCE: It can be inferred that majority of consumers buy the life insurance
policywhich costs more than Rs. 1,00,000 followed by Rs. 50,000 to Rs.1,00,000, followed byRs
25,000 to Rs.50,000.

69
 TABLE 10
RESPONDENTS PREFERENCE TO INVEST THEIR MONEY

NUMBER OF PERCENTAGE OF
RESPONDENTS RESPONDENTS
INSURANCE 24 48%
COMPANY
BANK 26 52%

TOTAL 50 100%

SOURCE: SURVEY DATA

GRAPH 10- GRAPH SHOWING RESPONDENTS PREFERENCE TO INVEST THEIR

MONEY
53%

52%

51%

50%

49%

48%

47%

46%

45%
INSURANCE COMPANY BANK

INFERENCE: From the table it is clear that majority of people (52%) prefer to invest inBank
and others (48%) prefer to invest in Insurance companies

TABLE 11

70
 SATISFACTION OF RESPONDENTS WITH CURRENT LIFE INSURANCE
COMPANY
RESPONSES NUMBER OF PERCENTAGE OF
RESPONDENTS RESPONDENTS
YES 47 94%

NO 3 6%

TOTAL 50 100%

SOURCE: SURVEY DATA

GRAPH 11- GRAPH SHOWING SATISFACTION OF RESPONDENTS WITH

CURRENT LIFE INSURANCECOMPANY

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
YES NO

INFERENCE: From this table it could be inferred that 94% of the consumers are satisfied
with the service and quality of products of their life insurance companies. Only 6% of consumers
are not satisfied.

71
 TABLE 12
RATINGS OF THE SERVICES OFFERED BY THE RESPONDENT’S LIFE
INSURANCE COMPANY
RATINGS NUMBER OF PERCENTAGE OF
RESPONDENTS RESPONDENTS
EXCELLENT 7 14%

VERY GOOD 12 24%

GOOD 20 40%

AVERAGE 11 22%

POOR 0 0%

50 100%

SOURCE: - SURVEY DATA

GRAPH 12- GRAPH SHOWING RATINGS OF THE SERVICES OFFERED BY THE
RESPONDENT’S LIFE INSURANCE COMPANY

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
EXCELLENT VERY GOOD GOOD AVERAGE POOR

INFERENCE: From this table it could be inferred that 40% of the consumers have rated service
offered as good, 24% of them have rated them as very good, 22% of them have rated as average
and 14% of them have rated as excellent.

72
 TABLE 13

CONSUMERS WILLINGNESS TO COMMUNICATE THE SERVICE OFFERED

BY THEIR LIFE INSURANCE COMPANY
RESPONSES NUMBER OF PERCENTAGE OF
RESPONDENTS RESPONDENTS

YES 39 78%

NO 11 22%

TOTAL 50 100%

SOURCE: - SURVEY DATA

GRAPH 13
CONSUMERS WILLINGNESS TO COMMUNICATE THE SERVICE OFFERED
BY THEIR LIFE INSURANCE COMPANY
90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
YES NO

INFERENCE: From this table it can be noted that the majority of consumers (78%) would
like to communicate to others about the service offered by life insurance companies and 22% of
consumers would not like to communicate the service offered.

73
 TABLE 14

NUMBER OF LIFE INSURANCE COMPANY KNOWN BY RESPONDENTS

NUMBER OF LIFE NUMBER OF PERCENTAGE OF

INSURANCE RESPONDENTS RESPONDENTS
COMPANY KNOWN
<5 18 36%

5-7 29 58%

8-10 2 4%

>10 1 2%

TOTAL 50% 100%

SOURCE: - SURVEY DATA

GRAPH 14 - GRAPH SHOWING NUMBER OF LIFE INSURANCE COMPANY
KNOWN BY RESPONDENTS

70%

60%

50%

40%

30%

20%

10%

0%
LESS THAN 5 5 TO7 8 TO10 GREATER THAN 10
INFERENCE: This table helps us to know the consumer awareness about the life insurance
companies. 58% of the consumers are aware about 5 to 7 life insurance companies, followed by
36% consumers who know less than 5 life insurance companies.
TABLE 15

74
 SCORES OF DIFFERENT LIFE INSURANCE COMPANIES

COMPANIES SCORES RANK

LIC 345 1

ICICI PRUDENTIAL 211 2

HDFC 194 3

TATA AIA 123 4

RELIANCE LIFE 121 5

BIRLA SUN LIFE 118 6

PNB MET LIFE 90 7
OTHERS 41 8

SOURCE: - SURVEY DATA

75
 GRAPH 15- GRAPH SHOWING SCORES OF DIFFERENT LIFE INSURANCE
COMPANIES

9
8
7
6
5
4
3
2
1
0
L E E E RS
LIC TIA FC AI
A
LIF LIF LIF
N HD TA C E N ET THE
E SU O
UD TA N M
R LIA RL
A B
IP RE
BI PN
IC
IC

INFERENCE: From the table we can rank the life insurance companies, LIC stands first,
followed by ICICI Prudential followed by HDFC Standard life, followed by TATA AIG.

76
 CHAPTER 5-FINDINGS
 The majority of respondents belonged to the age group of 19 to 28 years which formed
48% followed by age group of 29 to 38 years which formed 26%.

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

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

 LIC has a major market share of 78%.

 The factors which influenced to select a life insurance company are the personal factor,
followed by family, friends, agents and advertisements.

 The value of respondents life insurance policy costs more than 1,00,000 followed by
50,000 to 1,00,000.

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

 Majority of consumers are satisfied with the service and quality of products of their life
insurance companies.

 Majority of consumers (78%) would like to communicate the service offered by life
insurance companies.

 Majority of consumers (58%) are aware about 5 to 7 life insurance companies.

 LIC stands first followed by ICICI prudential, followed by HDFC Standard Life.

77
CHAPTER 6 -RECOMMENDATIONS AND SUGGESTIONS:

With regard to insurance companies, consumers respond at different rates, depending on the
consumers characteristics. Hence Insurance companies should try to bring their new product to
the attention of potential early adopters.

 Due to the intense competition in the life insurance market, the life insurance companies
have to adopt better strategies to attract more customers.

 Keeping the cost, quality and return on investment in tact is necessary in order to tackle
the competition.

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

 Hence they should be regarded as main targeted income groups. Life insurance products
which are suitable for lower income group should also be released so that the market
share increases.

 Return on investment, company reputation and premium outflow are mostpreferred

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

 Private life insurance companies should adopt effective promotional strategies to increase
the awareness level among the consumers.

 Life insurance companies should ask for their consumer feedback to know whether the
consumers are really satisfied or dissatisfied with the serviceand product of the
companies. If they are dissatisfied, then the reasons for dissatisfaction should be found
out and should be corrected in future.

78
 The LIC brand name has earned a lot of goodwill and enjoys a high brand equity. As
there is intense competition in life insurance market, LIC should work hard to maintain
its top position and offer better service and product.

79
 CHAPTER 7 -CONCLUSION

An Insurance policy is an investment oriented plan. As compared to other investment plans, the
investment portfolio of the Insurance Policy functions like a mutual fund and other investment. It
is invested in a portfolio of debt and equity instruments, in conformity with the announced
investment policy. Hence it grows or erodes in line with the performance of that portfolio.

From this study it reveals that the people’s awareness towards Insurance Policy andInsurance
Company changed a lot. A 5 years before the consumers and the general publicwere not
interested to take an Insurance Policy but now days there are many options andchoices in front of
the customers. They are interested to take high return policies in orderto secure their lives.
People are aware of all the benefits and returns of insurance [Link] a result of this new
international and domestic companies are coming to the IndianMarket.

Since there are many players in the Indian Insurance Market the competition level is veryhigh.
So the companies are introducing new schemes. From this it is found that The LICis the major
market share holder in the insurance field. Even if there are many players inthis field still it is an
untapped market. Only a few portion of Indian population is insured.

80
 CHAPTER 8- BIBLIOGRAPHY:

 DR. SINGH, AVTAR, PRINCIPLES OF INSURANCE LAW, S CHAND & SONS,

DELHI 2003.

 LEON G. SCHIFFMAN, LESTIE LAZAR KANWK, CONSUMER BEHAVIOUR,

HIMALAYA PUBLISHERS, DELHI 2004.
 KOTLER PHILIP, MARKETING MANAGEMENT, PEARSON EDUCATION
INC. 11TH EDITION.
 STANTON WILLIAM J, ETZEL MICHAEL J, WALKER BRUCE J,
FUNDAMENTALS OF MARKETING, MCGRAW-HILL INTERNATIONAL,
SINGAPORE, 2002.
 RAVI SHANKAR, SERVICES MARKETING, PRENTICE HALL, 2000.
 VALARIE AZITHAML, MARRY JO BITTNER, SERVICES OF MARKETING,
PRENTICE HALL, 2001.
 RUTCHNEE .T & [Link] KUMAR,CONSUMER PREFERENCE & BUYING
PERCEPTION OF READY MADE SILK
GARMENTS,PGDSM,INTERNATIONAL CENTER FOR TRAINING &
RESEARCH IN TROPICAL SERICULTURE.

 Newspapers:
 Economic Times
 Business Line
 WEBLIOGRAPHY

 WIKIPEDIA
 [Link] [Link]
 SCRIBD

81
82
 ANNEXURE

A STUDY CONDUCTED TO UNDERSTAND THEAWARENESS OF LIFE

INSURANCE POLICIES AMONG PEOPLE:

1) Name:

2) Email Address:

3) AGE

4) Occupation:

5) Monthly income:

 5000-10,000
 10,000-15,000
 15,000-20000
 20,000-25,000
 Above 25,000

6) Do you own?
 House
 Two wheeler
 Car

7) Do you have a Life Insurance Policy with any Life Insurance Company?
 Yes
 No
a)If yes name the company___________________________

b) Name the policy you own___________________________

8) What factors do you consider while selecting a life insurance company?

83
  Premium outflow
 Company reputation
 Service Quality
 Product Quality
 Return on Investment

9) What factors influenced to select a Life Insurance company?

 Personal interest
 Friends
 Family
 Agents
 Advertisements
 Others

10) What is the value of your life insurance?

 >5,000
 >10,000
 10,000-25,000
 25,000-50,000
 50,000-1,00,000
 >1,00,000

11) Do you prefer to invest your money in an Insurance company or in a Bank?

 Insurance Company
 Bank

12) Are you satisfied with your current Life Insurance Company?
 Yes
 No
A) If Yes Why?____________________________
b) If No Why? ___________________________

84
13) How do you rate the service offered by your Life Insurance Company?
 Excellent
 Very Good
 Good
 Average Poor

14) Would you liketo communicate the service offered by your Life Insurance Company to
others?

 Yes
 No

15) How many Life insurance Companies do you know?

 <5
 5-7
 8-10
 >10

16) How do you rate the following Life Insurance Companies?

 LIC
 HDFC
 KOTAK
 MET LIFE INDIA INSURANCE
 BIRLA SUNLIFE
 ICICI Prudential
 TATA AIG
 Others

17) Would you like to continue with the same Life Insurance Company?

85
  Yes
 No

18) Any suggestions for improving the service offered by life insurance companies?

Thank You

86
87