DECLARATION

We Abhijeet Anshul , Ritu ,Zafar,, students of PGDM Semester 3rd 2011, at Business School of
Delhi,Greater Noida hereby declare that this Project Report under the title “Customer’s
bahaviour towards life insurance policies” is the record of my original work under the
guidance of Prof. Mr. Vijay Anand Dubey(H.O.D . operations ).

Place:Greater Noida ABHIJEET SHARMA

ANSHUL LUTHRA

RITU GEHLOT

ZAFAR KAMAL

Date :28/3/2011 PDGM (2010-2012)

 ACKNOWLEDGEMENT

It give us immense pleasure to present the project on “Consumer Preference

towards LIFE Insaurance”. It was a totally different & wonderful experience to
be a part of this project.
The researchers express their sincere gratitude to Prof. Mr. Vijay Anand
Dubey(H.O.D . operations ) his project guide who has been so co-operative &
helpful from the first day of till end the project . He also helped us a lot in
enhancing knowledge about the techniques used in completing the project .

In all it was a great experience of working on this project.

TABLE OF CONTENTS

i. DECLARATION

ii. ACKNOWLEDGEMENT

iii. TABLE OF CONTENTS

iv. BRIEF SUMMARY

-INTRODUCTION

-OBJECTIVE

ABOUT THE COMPANY

-INDUSTRY PROFILE
-COMPANY PROFILE

1. RESEARCH METHODOLOGY
2. DATA ANALYSIS AND RESULTS
3. INTERPRETATION OF FINDINGS
4. LIMITATIONS
5. CONCLUSION
6. RECOMMENDATION
7. CONTRIBUTION OF MEMBERS
8. BIBLIOGRAPHY
9. ANNEXTURE
 BRIEF SUMMARY

INTRODUCTION
A general term ‘insurance’ is related to service sector. Insurance is concerned with
the protection of economic value of asset .In this project we have chosen the
insurance sector which is one of the popular sector in our country .The analysis of
consumer preference towards LIFE insurance is done in different sector. When
conducting the interviews we also sensed a connection with working life, and the
thought of us soon working is as unfamiliar anymore.
We are looking forward for recognition and suggestions for improvement of
our research.

Objective of the study

 Consumer Preference towards LIFE Insaurance

The study has also other distinct objective as preference towards return,
preference towards tax saving and preference towards life protection.
Other factor which attract them as premium, brand ,duration and refrence.

Need of the study:

The project was an attempt to explore the consumer behavior towards life
insurance in different sector. The project was started on 28-02-2011 after knowing
relevant information about the insurance policies. The project started in four
different regions covering all the segment of people. In project we meet seventy
people and know about their behavior towards life insurance through
questionnaire. During our work we found the perception of the people about
insurance, what the desire from it , and if they want to take insurance policy then
what they want from the organization
 Brief History of the Insurance Sector in India

Insurance sector in India is one of the booming sectors of the economy and is
growing at the rate of 15-20 per cent annum. Together with banking services, it
contributes to about 7 per cent to the country's GDP. Insurance is a federal subject
in India and Insurance industry in India is governed by Insurance Act, 1938, the
Life Insurance Corporation Act, 1956 and General Insurance Business
(Nationalization) Act, 1972, Insurance Regulatory and Development Authority
(IRDA) Act, 1999 and other related Acts.

The origin of life insurance in India can be traced back to 1818 with the
establishment of the Oriental Life Insurance Company in Calcutta. It was
conceived as a means to provide for English Widows. In those days a higher
premium was charged for Indian lives than the non-Indian lives as Indian lives
were considered riskier for coverage. The Bombay Mutual Life Insurance Society
that started its business in 1870 was the first company to charge same premium for
both Indian and non-Indian lives. In 1912, insurance regulation formally began
with the passing of Life Insurance Companies Act and the Provident Fund Act.

By 1938, there were 176 insurance companies in India. But a number of frauds
during 1920s and 1930s tainted the image of insurance industry in India. In 1938,
the first comprehensive legislation regarding insurance was introduced with the
passing of Insurance Act of 1938 that provided strict State Control over insurance
business.
  
 
Insurance sector in India grew at a faster pace after independence. In 1956,
Government of India brought together 245 Indian and foreign insurers and
provident societies under one nationalized monopoly corporation and formed Life
Insurance Corporation (LIC) by an Act of Parliament, viz. LIC Act, 1956.
 
The (non-life) insurance business/general insurance remained with the private
sector till 1972. There were 107 private companies involved in the business of
general operations and their operations were restricted to organized trade and
industry in large cities. The General Insurance Business (Nationalization) Act,
1972 nationalized the general insurance business in India with effect from January
1, 1973. The 107 private insurance companies were amalgamated and grouped into
four companies: National Insurance Company, New India Assurance Company,
Oriental Insurance Company and United India Insurance Company. These were
subsidiaries of the General Insurance Company (GIC).

 
 
In 1993, the first step towards insurance sector reforms was initiated with the
formation of Malhotra Committee, headed by former Finance Secretary and RBI
Governor R.N. Malhotra. The committee was formed to evaluate the Indian
insurance industry and recommend its future direction with the objective of
complementing the reforms initiated in the financial sector. 
 
Insurance companies in India
IRDA has till now provided registration to 12 private life insurance companies and
9 general insurance companies. If the existing public sector insurance companies
are considered then there are presently 13 insurance companies in the life side and
13 companies functioning in general insurance business. General Insurance
Corporation has been sanctioned as the "Indian reinsurer" for underwriting only
reinsurance business. 

List of Insurance companies in India

LIFE INSURERS Websites
Public Sector
Life Insurance Corporation of India www.licindia.com
Private Sector
Allianz Bajaj Life Insurance Company Limited www.allianzbajaj.co.in
Birla Sun-Life Insurance Company Limited www.birlasunlife.com
HDFC Standard Life Insurance Co. Limited www.hdfcinsurance.com
ICICI Prudential Life Insurance Co. Limited www.iciciprulife.com
ING Vysya Life Insurance Company Limited www.ingvysayalife.com
Max New York Life Insurance Co. Limited www.maxnewyorklife.com
MetLife Insurance Company Limited www.metlife.com
Om Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.com
SBI Life Insurance Company Limited www.sbilife.co.in
TATA AIG Life Insurance Company Limited www.tata-aig.com
AMP Sanmar Assurance Company Limited www.ampsanmar.com
Dabur CGU Life Insurance Co. Pvt. Limited www.avivaindia.com
GENERAL INSURERS
Public Sector
National Insurance Company Limited www.nationalinsuranceindia.com
 New India Assurance Company Limited www.niacl.com
Oriental Insurance Company Limited www.orientalinsurance.nic.in
United India Insurance Company Limited www.uiic.co.in
Private Sector
Bajaj Allianz General Insurance Co. Limited www.bajajallianz.co.in
ICICI Lombard General Insurance Co. Ltd. www.icicilombard.com
IFFCO-Tokio General Insurance Co. Ltd. www.itgi.co.in
Reliance General Insurance Co. Limited www.ril.com
Royal Sundaram Alliance Insurance Co. Ltd. www.royalsun.com
TATA AIG General Insurance Co. Limited www.tata-aig.com
Cholamandalam General Insurance Co. Ltd. www.cholainsurance.com
Export Credit Guarantee Corporation www.ecgcindia.com
HDFC Chubb General Insurance Co. Ltd.  
REINSURER
General Insurance Corporation of India www.gicindia.com

Some of the important milestones in the life insurance

business in India are:  

1850 – Non life insurance debuts with triton insurance company

1870 – Bombay mutual life assurance society is the first Indian owned Life insurer
1912 - The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.  
 
1928 - The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.  
 
1938 - Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.  
 
1956 - 245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz.
LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of
India.  
 
The General insurance business in India, on the other hand, can trace its roots to
the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British.
 
 
Some of the important milestones in the general insurance business in India are:  
 
1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact
all classes of general insurance business.
 
 
1957 - General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business practices.  
 
1968 - The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.  
 
1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized
the general insurance business in India with effect from 1st Jan.  
 
1973- insurers amalgamated and grouped into four company’s viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.

PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN INDIA

The life insurance industry in India grew by an impressive 47.38%, with premium
income at Rs. 1560.41 billion during the fiscal year 2006-2007.
Though the total volume of LIC's business increased in the last fiscal year (2006-
2007) compared to the previous one, its market share came down from 85.75% to
81.91%.
The 17 private insurers increased their market share from about 15% to about 19%
in a year's time. The figures for the first two months of the fiscal year 2007-08 also
speak of the growing share of the private insurers. The share of LIC for this period
has further come down to 75 percent, while the private players have grabbed over
24 percent.
With the opening up of the insurance industry in India many foreign players
have entered the market. The restriction on these companies is that they are not
allowed to have more than a 26% stake in a company’s ownership.
Since the opening up of the insurance sector in 1999, foreign investments of Rs.
8.7 billion have poured into the Indian market and 19 private life insurance
companies have been granted licenses.

Innovative products, smart marketing, and aggressive distribution have

enabled fledgling private insurance companies to sign up Indian customers faster
than anyone expected. Indians, who had always seen life insurance as a tax saving
device, are now suddenly turning to the private sector and snapping up the new
innovative products on offer. Some of these products include investment plans
with insurance and good returns (unit. inked plans),multi-purpose insurance plans,
pension plans, child plans and money back plans.

COMPANY PROFILE
 LIFE INSURANCE CORPORATION OF INDIA

The Life Insurance Corporation of India (LIC) ( भारतीय जीवन बीमा निगम) is

the largest state-owned life insurance company in India, and also the country's
largest investor. It is fully owned by the Government of India. It also funds close to
24.6% of the Indian Government's expenses. It has assets estimated of  9.31 trillion
(US$206.68 billion). It was founded in 1956 with the merger of more than 200
insurance companies and provident societies.
Headquartered in Mumbai, financial and commercial capital of India, the Life
Insurance Corporation of India currently has 8 zonal Offices and 101 divisional
offices located in different parts of India, at least 2048 branches located in different
cities and towns of India along with satellite Offices attached to about some 50
Branches, and has a network of around 1.2 million agents for soliciting life
insurance business from the public.

History
The Oriental Life Insurance Company, the first corporate entity in India offering
life insurance coverage, was established in Calcutta in 1818 by Bipin Bernard
Dasgupta and others. Europeans in India were its primary target market, and it
charged Indians heftier premiums. The Bombay Mutual Life Assurance Society,
formed in 1870, was the first native insurance provider. Other insurance companies
established in the pre-independence era included
Bharat Insurance Company (1896)
United India (1906)
National Indian (1906)
National Insurance (1906)
Co-operative Assurance (1906)
Hindustan Co-operatives (1907)
Indian Mercantile
General Assurance
Swadeshi Life (later Bombay Life)
The first 150 years were marked mostly by turbulent economic conditions. It
witnessed, India's First War of Independence, adverse effects of the World War
I and World War II on the economy of India, and in between them the period of
world wide economic crises triggered by the Great depression. The first half of the
20th century also saw a heightened struggle 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 the utility of obtaining life cover.
The Life Insurance Act and the Provident Fund Act were passed in 1912, providing
the first regulatory mechanisms in the Life Insurance industry. The Indian
Insurance Companies Act of 1928 authorized the government to obtain statistical
information from companies operating in both life and non-life insurance areas.
The subsequent Insurance Act of 1938 brought stricter state control over an
industry that had seen several financially unsound ventures fail. A bill was also
introduced in the Legislative Assembly in 1944 to nationalize the insurance
industry.

Nationalization
In 1955, parliamentarian Amol Barate raised the matter of insurance fraud by
owners of private insurance companies. In the ensuing investigations, one of
India's wealthiest businessmen, Ram Kishan Dalmia, owner of the Times of
India newspaper, was sent to prison for two years. Eventually, the Parliament of
India passed the Life Insurance of India Act on 1956-06-19, and the Life Insurance
Corporation of India was created on 1956-09-01, by consolidating the life
insurance business of 245 private life insurers and other entities offering life
insurance services. Nationalization of the life insurance business in India was a
result of the Industrial Policy Resolution of 1956, which had created a policy
framework for extending state control over at least seventeen sectors of the
economy, including the life insurance.
LIC Operate All Over India
 HR POLICIES OF LIC
Managing people to succeed in today’s highly competitive global environment is
important. They offer the key ingredients for making Human Resources an active
contributor for their organizational success.
The areas which their virtual university focuses on are: 

• HR Practices 
• Organizational Behaviors 
• People Management 
• Performance Management 
• Recruitment and Retention 
• Training and Development

HR PRACTICES
These have a continuing and significant influence on employment productivity.
And look at the best practices in the industry to cope with an increasing number of
employees encountering new working environments, cultures, restructuring and the
pervasive and often deleterious effects of technology.

ORGANISATIONAL BEHAVIOUR
Takes a micro-view on emphasising behaviour in organisation of individuals and
small groups. Individual behaviour includes perception, values, learning,
motivation, personality, while group behaviour includes group dynamics,
communication, power and politics.
PEOPLE MANAGEMENT
All about the skill in getting diverse workforces to work together towards
achieving organisational goals and objectives. 
PERFORMANCE MANAGEMENT
Future-oriented continuous process to which managers and employees need to
devote time, all the time. It encompasses performance appraisal, self-assessment,
reward systems and Total Quality Management. 

RECRUITMENT & RETENTION

The key area of focus here is getting the right person for the job. This has an
important part in achieving strategic goals and has an impact on employment
stability and turnover. 

TRAINING AND DEVELOPMENT

Provides an insight into the hows and whys of training, right from an employee's
induction to his exit in an organisation. 

Human Resource Management 

Human resource (or personnel) management, in the sense of getting things done
through people. It's an essential part of every manager's responsibilities, but many
organizations find it advantageous to establish a specialist division to provide an
expert service dedicated to ensuring that the human resource function is performed
efficiently. 
"PEOPLE ARE OUR MOST VALUABLE ASSET" IS WHAT THE HR
MANAGER OF LIC SAID TO US. 
FUNCTIONS OF HRM PLAYED BY LIC 
"PEOPLE ARE OUR MOST VALUABLE ASSET"
Function 1: Manpower planning 
The penalties for not being correctly staffed are costly. 
• Understaffing loses the business economies of scale and specialization, orders,
customers and profits. 
• Overstaffing is wasteful and expensive, if sustained, and it is costly to eliminate
because of modern legislation in respect of redundancy payments, consultation,
minimum periods of notice, etc. Very importantly, overstaffing reduces the
competitive efficiency of the business. 
Planning staff levels requires that an assessment of present and future needs of the
organization be compared with present resources and future predicted resources.
Appropriate steps then be planned to bring demand and supply into balance.
What future demands will be is only influenced in part by the forecast of the
personnel manager, whose main task may well be to scrutinize and modify the
crude predictions of other managers. Future staffing needs will derive from:
• Sales and production forecasts 
• The effects of technological change on task needs 
• Variations in the efficiency, productivity, flexibility of labor as a result of
training, work study, organizational change, new motivations, etc. 
• Changes in employment practices (e.g. use of subcontractors or agency staffs,
hiving-off tasks, buying in, substitution, etc.) 
• Variations, which respond to new legislation, e.g. payroll taxes or their abolition,
new health and safety requirements 
• Changes in Government policies (investment incentives, regional or trade grants,
etc.) 
That, in turn, will involve the further planning of such recruitment, training,
retraining, labor reductions (early retirement/redundancy) or changes in workforce
utilization as will bring supply and demand into equilibrium, not just as a one–off
but as a continuing workforce planning exercise the inputs to which will need
constant varying to reflect 'actual' as against predicted experience on the supply
side and changes in production actually achieved as against forecast on the demand
side.
Function 2: Recruitment and selection of employees
Recruitment of staff should be preceded by:
An analysis of the job to be done (i.e. an analytical study of the tasks to be
performed to determine their essential factors) written into a job description so that
the selectors know what physical and mental characteristics applicants must
possess, what qualities and attitudes are desirable and what characteristics are a
decided disadvantage;
• In the case of replacement staff a critical questioning of the need to recruit at all
(replacement should rarely be an automatic process). 
• Effectively, selection is 'buying' an employee hence bad buys can be very
expensive. For that reason some firms (and some firms for particular jobs) use
external expert consultants for recruitment and selection. 
• Equally some small organizations exist to 'head hunt', i.e. to attract staff with high
reputations from existing employers to the recruiting employer. However, the 'cost'
of poor selection is such that, even for the mundane day-to-day jobs, those who
recruit and select should be well trained to judge the suitability of applicants. 
The main sources of recruitment are:
• Internal promotion and internal introductions (at times desirable for morale
purposes) 
• Careers officers (and careers masters at schools) 
• University appointment boards 
• Agencies for the unemployed 
• Advertising (often via agents for specialist posts) or the use of other local media
(e.g. commercial radio) 
Interviewing can be carried out by individuals, by panels of interviewers or in the
form of sequential interviews by different experts and can vary from a five minute
'chat' to a process of several days. Ultimately personal skills in judgment are
probably the most important, but techniques to aid judgment include selection
testing for:
• Aptitudes (particularly useful for school leavers) 
• Attainments 
• General intelligence 

Financial Strengths

 LIC's investment income in 2007-08 was Rs.40,655 crores. Out of Total income of
Rs, 1,76,559.28 Crs.
 Total Assets of the corporation as on 31.3.07 were Rs. 6,74,514.78 Crs.
 Largest institutional investor in Share Market. On an average Rs.100 crore
invested every day. During theyear 2007 LIC earned the profit Rs.10,000 Crs.
from the Sale of Equity.
 Largest Financial institutional investor both Equity market & Term House.

Marketing strategies
Life insurance is a contract that pledges payment of an amount to the person
assured (or his nominee) on the happening of the event insured against. Life
Insurance, assumption by an insuring organization of the risk of death of a
policyholder. Unlike loss in insurance on property, loss in life insurance is certain
to occur and is total. The element of uncertainty is when death will occur.
Mortality is subject to the laws of probability, however, and life-insurance
premiums can be calculated from mortality tables, which indicate the average
number of people in each age and gender group that will die each year. A person
trained to make such calculations, known as an actuary, determines the amount of
premiums to be collected yearly from each group in order for the principal (the
premiums) and its earned interest to equal the benefits to be paid to the
policyholders' beneficiaries. The principal payment required annually constitutes
the net premium. A loading charge to cover company expenses and contingencies
is added to the net premium, yielding the total, or gross premium, which the
insured pays.

What is RESEARCH METHODOLOGY

Research Methodology in a way is a written game plan for conducting research.
Research Methodology has many dimensions. It includes not only the research
methods but also consider the logic behind the methods used in the context of the
study and complains why only a particular method or techniques has been used . it
also helps to understand the assumptions underlying various techniques and the
criteria by which they can decide that certain techniques will be applicable to
certain problems and other will not. Therefore in order to solve a research problem,
it is necessary to design a research methodology for the problem as the some may
problem to problem.

This part focus on the various techniques ,methods and assumption used in this
study .It sheds light on the research problem , objaective of the study , and also its
limitation .The later part explain the manner in which the dat are collected
,classified ,tabulated analyzed and interrupted so as to each to conclusive result.

The study is diagnostic nature and thus the overall research design is going to be
rigid.The design should provide enough provision for protection against biasness
and must maximize reliability.

RESEARCH METHODOLOGY
Based on the objective of study, it was found that an exploratory and conclusive
research will solve the purpose in most effective way. exploratory research
approach was adopted for the study.

Source of data
Considering the research objective and type of research, both ‘primary data’ and
‘secondary data’ was decided to be the source of data for the research.

Research method
‘survey’ method was chosen as research method for the
Data collection method

A structured questionnaire was developed as data collection instrument.Thinkinh

about the time constrain of the respondent only ‘cosed ended’ were paced in the
questionnaire.

Data Analysis and Presentation:

Spss was used for tabulation ,data analysis and preparing graph-chart.

DATA ANALYSIS AND RESULTS

 Why do you normally obtain life insurence policy?

Cumulative
Frequency Percent Valid Percent Percent

Valid RETURN 15 21.4 21.4 21.4

TAX SAVING 22 31.4 31.4 52.9

LIFE PROTECTION 33 47.1 47.1 100.0

Total 70 100.0 100.0

From the above figure we can say that among 70 respondent 33 that is 47 %
consider insurance as life protection and 22 that is 31% consider it as tax saving
and 15 that is 22 %consider it as return prospective .so most of the respondent
consider life protection as rationale behind holding a life insurance policy.

Which type of Life Insurance Policy are you

normally intersted in?
Cumulative
Frequency Percent Valid Percent Percent

Valid Endowment 17 24.3 24.3 24.3

Joint Policy 14 20.0 20.0 44.3

ULIP 14 20.0 20.0 64.3

Child Education 10 14.3 14.3 78.6

Any policy that cover my risk 15 21.4 21.4 100.0

Total 70 100.0 100.0

From the above figure we can say that among 70 respondent most of the
respondent prefer endowment as insurance plan.
 For How many years do you preffer to invest?
Cumulative
Frequency Percent Valid Percent Percent

Valid Less than 3years 4 5.7 5.7 5.7

3 to 5 years 15 21.4 21.4 27.1

5 to 10 years 25 35.7 35.7 62.9

More than 10 years 25 35.7 35.7 98.6

6 1 1.4 1.4 100.0

Total 70 100.0 100.0

More than 70% people prefer to invest for more than five years in life insurance
policy
 Brand Frequency
Cumulative
Frequency Percent Valid Percent Percent

Valid No Influence 6 8.6 8.6 8.6

Least influence 12 17.1 17.1 25.7

Some what influence 14 20.0 20.0 45.7

Influence 22 31.4 31.4 77.1

Extreme Influence 16 22.9 22.9 100.0

Total 70 100.0 100.0

53%people generally influenced by the brand image of life insurance company.

 Refrence Frequency
Cumulative
Frequency Percent Valid Percent Percent

Valid No Influence 14 20.0 20.0 20.0

Least influence 21 30.0 30.0 50.0

Some what influence 15 21.4 21.4 71.4

Influence 12 17.1 17.1 88.6

Extreme Influence 8 11.4 11.4 100.0

Total 70 100.0 100.0

20 % people have taken life insurance policy by the recommendation of reference

group. So we can say that generally people do not influenced by reference group.
 Which life insurance company do you prefer?
Cumulative
Frequency Percent Valid Percent Percent

Valid L.I.C. 44 62.9 62.9 62.9

Birla sun life insurance 3 4.3 4.3 67.1

AVIVA 8 11.4 11.4 78.6

other 15 21.4 21.4 100.0

Total 70 100.0 100.0

From the above figure we can say that among 70 respondent 40 that is 62% prefer
L.I.C policy.so we can conclude that LIC is the major market player and is
preferred by maximum no. of people.
 Advertisement Influence
Cumulative
Frequency Percent Valid Percent Percent

Valid STRONGLY AGREE 11 15.7 15.7 15.7

AGREE 30 42.9 42.9 58.6

NEITHER AGREE NOR 16 22.9 22.9 81.4

DISAGREE

DISAGREE 9 12.9 12.9 94.3

STRONGLY DISAGREE 4 5.7 5.7 100.0

Total 70 100.0 100.0

Near about 51 % of the people agreed that they are influenced by the advertisement
of life insurance policy.
 Chi-Square test Between Purchase Intention and Age
Group

H0: Purchase intention and age group are independent of each other.
H1: Purchase intention and age group are dependent of each other.
Note- Since data related to two different attribute is collected
(it appears from marketing prospective therefore chi-square as test of independence
is indicated )

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Age * Why do you normally 70 100.0% 0 .0% 70 100.0%

obtain life insurence policy?

Age * Why do you normally obtain life insurence policy?

Crosstabulation
Count

Why do you normally obtain life insurence policy?

LIFE
RETURN TAX SAVING PROTECTION Total

Age 15-25 4 3 10 17

26-40 8 12 12 32

41-60 3 7 11 21

Total 15 22 33 70
 Chi-Square Tests
Asymp. Sig. (2-
Value Df sided)

Pearson Chi-Square 3.398a 4 .494

Likelihood Ratio 3.635 4 .458

Linear-by-Linear Association .040 1 .842

N of Valid Cases 70

a. 2 cells (22.2%) have expected count less than 5. The minimum expected count is 3.64.

SPSS Output :
1. First table shows that there is no missing data .
2. Second table shows that the cross tabulation between purchase intention and
age group .
3. From the third table Pearson chi-square significance value of two tail test .
494 which is greater than alpha=.05
Therefore accept Ho
So Purchase intention and age group are independent of each other.
 Correlations
How much an
Why do you insurance policy
normally obtain influence you in
life insurence prospective of Life
policy? Protection?

Why do you normally obtain life Pearson Correlation 1 .635**

insurence policy?
Sig. (2-tailed) .000

N 70 70

How much an insurance policy Pearson Correlation .635** 1

influence you in prospective of
Sig. (2-tailed) .000
Life Protection?
N 70 70

**. Correlation is significant at the 0.01 level (2-tailed).

 From the above SPSS output it is clear that coefficient of correlation ‘r’
between insurance policy and life protection policy .635
i.e. there is strong positive correlation.
 i.e. coefficient of determination is .39 this implies that about 40% varaition in
dependent variable can be explained by independent variable
 60 unexplained variance.
 INTERPRETATION OF FINDING
 The buying of life insurance policy is dependent on life protection .
 Life protection is preferred by the most of the respondent during by a life
insurance policy.
 Endowment policy is preferred the most.
 Among 70 respondent maximum number of respondent preferred to invest more
than five year.
 Only 20% of the respondents were influenced by the reference group.
 Among 70 respondent near about 53% of the respondent look for the good
brand while taking life insurance policy
 Among 70 respondent near about 5o% of the respondent influenced by the
advertisement of the life insurance policy.
 According to the customer major market player who offer better insurance
policy is L.I.C.
 Limitation

Some of the difficulties and limitation faced by us during our research work which
are as follows.

 We did not get complete feed from the respondent about the question as they
were busy in their work.
 Bad image people towards the L.I.P.
 Availability of respondent was often a great concern as they are quiet busy
as their assign task.
 The survey was based on completely random sampling .so there is always a
chance of error up to a certain limit.
 Lack of awareness about the earning opportunity earning in the insurance
sector
 Sincerity of answering the question cannot be judged.
 Conclusion
In India, there is throat cut competition in the market of Life Insurance that brand
service which adopt new strategy for sale we have come to know about the
customer perception about the insurance sector and how it varies

 The buying of life insurance policy is dependent on life protection

 Life protection is preferred by the most of the respondent during by a life
insurance policy.
 The insurance companies must advertised more in the market because not all
people know more about life insurance policy.
 The endowment concept must be specifically promoted.
 People should not be afraid to invest money in insurance and must use it an
effective tool for tax planning and long term.
 Most number of people wants guaranteed life protection through insurance
policy. So company must focus on this for the customer investment
 Recommendation
Needless to say,the organization which set the benchmark for its same
industry,hardly has any weak corner and hence don’t need much
recommendation.May be the best conclusion and recommendation for it is to
continue with the present business vision.

The above paragraph is very much applied for LIC.Hardly having any
weakness/drawbacks it is enjoying the market leadership in the insurance
business.So it would not be wrong if said only better lic is the destination of LIC.

Hence LIC should continue with the present way of working,as it is proving its
worth,and changing its business dynamics time to time,as per global call,just like it
responds in the past.

Still some aspects must be pointed out as recommendation thinking of

future.Because these things may not pose a threat on LIC now,but may act as a

 An insurance company must work with honesty to win the confident of its
customers .
 Life insurance companies should be more reliable and investor by providing
better facilities.
 Life insurance companies should give emphasis on their after-sale-service.
 The promotional activities of insurance companies should be good.

 Life insurance companies should provide the necessary information and the
importance of life insurance to the customers.
  They should adopt better marketing techniques to increase awareness among
the customers.

CONTRIBUTION OF TEAM MEMBERS

Questionnaire- Zafar ,Ritu, Abhijeet, Anshul

Data collection- Zafar ,Ritu, Abhijeet, Anshul
Spss Input- Ritu and Zafar
Spss Interpretation- Abhijeet and Anshul
Secondary Data collection by- Ritu and abhijeet
Ms word Input By- Zafar and Anshul
Printing of Research Project By- Abhijeet
 BIBLIOGRAPHY

www.irdaindia.org

www.licindia.com

www.wikipedia .org

REFERENCE BOOKS:

 Research methodology(2010),R .Pannerselvam

PHI Learning Pvt. Ltd,New Delhi.,Eighth edition.

 PHILIP KOTLER (2009) Marketing Management

Prentice Hall Pvt. Ltd,New Delhi,Millenium edition.
 ANNEXTURE

Business school of Delhi, 28/1, Knowledge Park –III, Greater Noida – 201306

Dear Sir/Madam,
I am the student of PGDM (3rd trimester), I am conducting a survey as my course requirement.

Consumer Preference towards LIFE insurance

Please help me to better understand and analyze the topic by completing the survey below.
Personal Details

Name: ___________________________________ Contact number (Optional):

Age (in years): 15-25 26-40 41-60 Gender: Male Female

Occupation: a. Business b. Service c. Housewife

d. Student e. Any other please specify……………………

Questionnaire
Q1: Do You Have Insurance Policy?

A) Yes B) No

Q2: Why do you normally obtain Life Insurance Policy ?

A) Return B) Tax Saving C) Life Protection

Q3: Which type of life Insurance policy are you normally interested in?
A) Endowment B) Joint policy C) ULIP
D) Child Education E) Any policy that cover my risk
Q4: How much an insurance policy influences you in prospective of Return?
(Rate 1 for least and 5 for most Influencing)
A) 1 B) 2 C) 3 D) 4 E) 5
Q5: For how many years do you prefer to invest?
A) Less than 3 Years B) Between 3 to 5 years
C) Between 5 to 10 years D) More then 10

Q6: How much an insurance policy influences you in prospective of Tax saving?
(Rate 1 for least and 5 for most Influencing)
A) 1 B) 2 C) 3 D) 4 E) 5

Q7: How much an insurance policy influences you in prospective of Life Protection?
(Rate 1 for least and 5 for most Influencing)
A) 1 B) 2 C) 3 D) 4 E) 5

Q8: In which income group do you lie

A) Less than 2 lakhs

B) Between 2 lakhs to 4 lakhs

C) Between 4 lakhs to 6 lakhs

D) Between 6 lakhs to 10 lakhs

E) 10 lakhs and more

Q9: Rate the importance of the following factors while choosing the Insurance.
(5 for most important , 1 for least important)
Particulars 1 2 3 4 5
Premium
Duration
Return
Brand
Reference
Q10: Advertisement influences your preference towards a particular insurance?

A) Strongly Agree
B) Agree
C) Neither agree nor disagree
D) Disagree
E) Strongly disagree
F)
Q .11According to you which company provides better facilities in their life
insurance policies?

Please tick any one on the scale given below.

S.NO NAME OF
COMPANY

1. LIC

2. HDFC

3. HSBC

4. SBI LIFE

5. ICICI

6. OTHERS
……………………………
(Signature of
respondent)
(Thank You for your Cooperation & Time)