Share Khan Pvt. Ltd. Pune: A Project Report On "The Study On Consumer Perception Regarding Insurance"

A Project Report On THE STUDY ON CONSUMER PERCEPTION REGARDING INSURANCE For SHARE KHAN Pvt.Ltd.
Pune
Submitted to UNIVERSITY OF PUNE
Submitted By: Project Guide
SINHGAD INSTITUTE OF MANAGEMENT & COMPUTER APPLICATION (SIMCA)
Share Khan Pvt. Ltd. Pune
Pune-411041
.
TABLE OF CONTENTS
Sr. No.
1
Title
EXECUTIVE SUMMERY
Page No.
4
INTRODUCTION
COMPANY PROFILE
18
OBJECTIVES OF THE STUDY
24
RESEARCH METHODOLOGY
26
OBSERVATION & ANALYSIS
28
LIMITATIONS
42
SUGGESTIONS
44
BIBLIOGRAPHY
46
10
ANNEXURE
48
EXECUTIVE SUMMERY
The project title THE STUDY ON CONSUMER PERCEPTION REGARDING INSURANCE being carried out for SHARE KHAN LTD. The evaluation of insurance has been increased through a decade which is best customer rise. Now a days investment of saving has assumed great importance. This project is represents an information regarding companys brand awareness and customer perceptions about the various services which the organization provide. Main 5
objective of the project is to understand the customer investment preferences effectively and efficiently. For execution of the project methodology adopted collection of data through questionnaire, processing and analyzing the data. I hope SHARE KHAN, Pune will recognize this, as well as they take more refer from the project report. The main objective of the project is to know about perception of customer towards insurance and, also to know the investing pattern of people in different financial reports. IT sector has been given more emphasis for the study of the project because it is the sector where all the type of Age group, Income class and different level of people represented. The idea behind the project is to find the customer perception towards the insurance thats available in market.
INTRODUCTION
Insurance in India.
Origin of life insurance. Role of life insurance.
Need for life insurance.
Insurance in India
The insurance industry in India emerged about 200 years ago. In India the insurance was on track without any rule or any guidelines in the Nineteenth Century. The first insurance company was life insurance which started its operations on 1818, there after the first general insurance company was set-up in 1850. Both the industry established very quickly in both sectors with a rapid growth. After the independence, the insurance market took a dramatic turn. Until 1956, there were 154 Indian insurers and 16 non-Indian insurers companies were already on their moves in the life sector.
India, with a population of 1 Billion offers great potential and opportunity for the insurance industry. Currently, two state-owned monoliths - Life Insurance Corporation and General Insurance Corporation (GIC), run the insurance industry. The General Insurance Corporation commands the general insurance sector along with four of its fully owned subsidiaries viz. National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. Malhotra Committee, appointed by the Government of India for conducting a study on insurance, in its report in 1994 stated that only 22% of the Indian population is insured. The poor reach of insurance in the country and the sheer numbers make India a market with tremendous potential. The following facts show how under-developed the Indian insurance business is due to state monopoly and lack of aggressive marketing of insurance policies: Per capita insurance premium in India is a mere US$ 6, one of the lowest in the world. In South Korea, the corresponding figure is US$1,338, in USA it is $ 2250 and in UK it is $1589. Insurance premium in India accounts for a mere 2 per cent of GDP compared to the world average of 7.8 per cent and G-7 average of 9.2 per cent. Insurance premium as a percentage of savings is barely 5.95 per cent in India compared to 52.5 per cent in the UK. Nationalized insurance companies have not been able to target niche markets that are currently served poorly or not at all. Life insurance products provide a good example. They compete with investment and savings options like mutual funds. It is imperative that they should offer comparable returns and flexibility. For instance, pure protection products like term assurance account for up to 20 per cent of policies sold in developed countries. In India, the figure is less than one percent because policies are inflexible. Besides, no Indian life assurance product is linked to non-traditional investment avenues such as stock market indices. Therefore, returns are lower than those on other savings instruments.
Retail segment or personal lines insurance, especially in general insurance is another area unexplored. Currently personal insurance, including health, householders, shopkeepers, personal accident, travel insurance and professional indemnity covers constitute only 12 per cent of Indian general insurance premium. This poor figure is largely due to the lack of adequate distribution channels rather than a lack of products. By tapping such under-served niches, new entrants can expand the market substantially. Since service and speed will be valued, a price premium is also possible. Premium rates are at present set most unscientifically with very little attempt to fine tune the risk attached to different categories of businesses. The result is that they penalize the low risk category, which is in majority. This can be seen in the failure to differentiate between smokers and non-smokers in fixing premium for life and personal accident covers or between flood-prone areas and dry lands for fire and allied perils cover. This results in a great deal of cross-subsidization. Low premium rates in one area necessitate higher premium elsewhere. Mortality tables are not revised for ages and no effort is made at all to re-evaluate the rating of other classes based on recent loss experiences. Indias insurance industry, private and public, has its roots in the 19th century. The British Government set up state-run social protection schemes for its colonial officials, many of which evolved into today is schemes. The first private insurance company was the Oriental Life Insurance Company, which started in Calcutta in 1818. Under British rule, many insurers Operated in India. In 1938, the British passed the Insurance Act, comprehensive insurance Legislation, which remains the cornerstone of the insurance industry today. Regulated insurers are divided into two categories: life and general insurance. Life insurance Includes products like endowments policies and retirement annuities. General insurance covers all other types of insurance. In 1956, the Indian government nationalized the life Insurance industry. The reasons given at the time were high levels of fraud in the industry and a desire to spread insurance more widely, as NEHRU noted at time in parliament, We require Life insurance to spread rapidly all over the country and to bring a measure of security to our people. The government combined 154 insurance providers and formed the Life Insurance Corporation (LIC) of India.
10
General insurance remained in private hands until 1973 when it too was nationalized. Prior to Nationalization, 68 Indian and 45 non-Indian entities sold insurance. All of these were absorbed into one giant corporation, the General Insurance Corporation (GIC) with its four subsidiaries: Oriental Insurance Company Limited, New India Assurance Company Limited, National Insurance Company Limited United India Insurance Company Limited.
Despite Nehrus desires, in the decades following nationalization, insurance products were designed primarily for those with regular income streams, i.e., those in formal employment. These were overwhelmingly men in urban areas. The poor, working mostly in agriculture, were largely overlooked by these new companies. When the ideological winds of change blew in the early the early 1990s, the Indian government set about liberalizing its insurance markets. It set up a commission of enquiry under the chairmanship of R N Malhotra. The central outcome of the commission was the establishment of the Insurance Regulatory and Development Authority (IRDA) that in turn laid the framework for the entry of private (including foreign) insurance companies. At the beginning of 2005, there were 14 life and 14 non-life insurers operating in India. Indias insurance penetration (premiums as a percent of gross domestic product) in 2003 is Low at 2.9 percent, and ranks 54th in the world. In premium collection, the record is better, at 19th position collecting US$17 billion in 2003. The 2003 ratio of premiums collected per Capita (insurance density) is 16.4. Compared with a world average of 469.6, Indias insurance Industry is still at a very nascent stage. Of the US$16.4 per capita expenditure on insurance, a Mere US$3.5 is spent on general insurance. This is primarily because in India, non-life Insurance is not considered important and people perceive it as an unnecessary expenditure.
11
Origin of Insurance in India

Insurance activity in India is going on for more than 150 years. In India, life insurance in its modern form was brought for the first time by the British. The Oriental Life Insurance Company started in 1818 in Calcutta was the first to be founded in India by Europeans to help the widows of their community. The general insurance business in India, on the other hand, can trace its roots to him Triton Insurance Company Ltd, the first general insurance company established in the year 1850 in Kolkata by the British. The year 1870, saw the birth of first Indian Insurance Company namely, Bombay Mutual Life Assurance Society. The basic aim of 12
this company was to insure Indian lives at normal rates since in the earlier period. Indian lives were treated as subnormal and loaded with an extra premium of fifteen to twenty per cent. However, right up to the end of 19 th century, the foreign insurance companies in India had an upper hand in matters of Insurance business. Insuring Indian lives with 10 percent of extra premium was a common practice prevalent in those times. The Indian Life Assurance Companies were the first to regulate the life insurance business in 1912. In 1928, the Indian Insurance companies act enabled the government to collect statistical information about both life and non life insurance business. Later, the insurance Act of 1938 was passed and department of insurance under authority of superintendent of insurance was established for the administration of the Act. Up to 1939, 199 companies were working in India. However, the period 1939-55 was marked by: World War II resulting in hasty premium adjustments by Indian companies. Series of amendments to the insurance Act, 1938. Appointment of a committee under the Chairmanship of Sir Cowasji Jehanger to enquire into and to recommend measures to check certain trends and undesirable features in the management of insurance companies. The findings of the sub committee on insurance under the National Planning Commission headed by Pt. Jawaharlal Nehru. Partition of India. De-valuation of rupee on September 18, 1949. The insurance Amendment Act. Interest yield sagging to the lowest lend of three percent and remaining at that level over 1947-1949. The rate war and cut throat competition between insurance companies. The recommendation of the ruling political party, the Indian National Congress, to the government that the life sector insurance be nationalized, and
13
The founding of the Jiwanlal Chimanlal Setawad Memorial--The Federation of Insurance Institutes.
The study of insurance companies of that time clearly reveal that concept of trust ship which should be cornerstone of life business seemed entirely lacking and most of the managements had no appreciation of the clear and vital distinction that exists between trust monies and those that belong to joint stock companies owned by shareholders. So the nationalization of life insurance business became necessary with a view to Provide cent percent security to policy holder, Ensure the use of life insurance funds for nation building activities, Avoid wasteful efforts in competition, Save the dividends paid to shareholder of insurance companies, Avoid certain undesirable practices adopted by some of the insurance companies management, and Spread the gospel of life insurance into the neglected rural areas.
245 Indian and foreign insurance and provident societies taken over by the central Government and nationalized. In 1956, the Government of India nationalized the life insurance business. Since then the entire life insurance business is being transacted by the Life insurance Corporation of India for more than four decades, the LIC has been enjoying monopoly status enjoying supernormal profits at the expense of consumers in life business in the country. The LIC by this time has grown manifold. At present it has a network of 7 zones, 100 divisions and over 2000 branches. The annual premium income was US $21 million in 1956. Current business investment in LIC is over US $29 billion. Life insurance funds constitute approximately 11 percent of gross household saving in financial assets in India, and a little over 1 percent of gross domestic product. Life insurance Corporation of India, despite its best efforts, has not penetrated more than 15 percent of the insurance population, which itself is more than 300 million. Insurance penetration as a measure of percentage of GDP is very low for India and countries like South Korea are much higher than India. With
14
approximately $7 billion of premium collected annually, India is the 23 rd largest market in the world. The General insurance business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from January 1, 1973. 107 insures amalgamated and grouped into four companies, via the national insurance company Ltd., the New India Assurance Company Ltd., the Oriental Fire and general insurance company Ltd., and the United India insurance company Le., General insurance company (GIC) was incorporated as a company. The four constituents of the GIC were to operate on a competitive basis and be governed by the guidelines structured by the Government of India. Recognizing the need for reforms in the financial and insurance sector, the government appointed the Malhotra Committee to seek and identify the measures required for the reform process in the insurance sector.
The Insurance Regulatory and Development Authority (IRDA)

Background As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority (IRDA, which was constituted by an act of parliament) specify the composition of Authority The Authority is a ten member team consisting of
15
a) b) c)
a Chairman; Five whole-time members; Four part-time members, (all appointed by the Government of India)
Insurance business is divided into four classes: I) II) III) IV) Life Insurance, Fire Insurance, Marine Insurance and Miscellaneous Insurance:
Life Insurers transact life insurance business. General Insurers transact the rest. No composites are permitted as per law. The Indian insurance industry has today two types of players: 1. Public insurers: Life insurers: e.g. Life Insurance Corporation of India (LIC) Non-life insurers: e.g. General Insurance Corporation of India (GIC) 2. Private insurers
Life insurers: e.g. ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD Non-life insurers: e.g. Reliance General Insurance Company Ltd ROLE OF INSURANCE INDUSTRY IN INDIA Insurance would ensure less volatility and risk of failure in business and thus provide for greater financial and societal stability. Government plans disaster management, arrangement of funds and provides for social security programs, NGOs and public institutions assist with fund raising and
16
relief assistance. There is considerable impact upon government in these respects. Insurance substantially steps in to provide these services. The effect would be to reduce the strain on the taxpayer and assist in efficient allocation of societal resources. Facilities trade, business and commerce by flexible adaptation to changing risk needs particularly of the burgeoning service sector. Insurance sector generates savings and directs the same to deserving Investments. A sector with potential for business as is the case with Indian insurance provides incentives to develop it all the more faster. It enables risk to be managed more efficiently through risk pricing and risk transfers and this is an area which provides unlimited opportunities in the Indian context for consulting, broking and education is the post-privatization phase with newer employment opportunities. The basis interest of an insurance industry being loss minimization, its expertise in understanding losses assists it to share the experience across the economy. Thus enabling better loss control and preservation of national assets. In the risk pricing and investment decisions the Insurance industry sets the tone for investment by others in the economy. Informed assessment by the insurance companies thus signals allocation of resources by others contributing to efficiency in allocation. In India visibility of LIC and GIC have been dwarfed by actions of government and other high profile institutions like ICICI, IDBI, and UTI. Of late AIG is visible in the media and institutional investors in India are following its investment announcements keenly. ING Savings Trust and Zurich are in asset management and are being keenly followed by retail investors.
17
India has reasonably well developed accounting, legal and supervisory institutions. These support the requirements of the insurance market very well. Other support services are expected to readily adapt to the new conditions of the emerging market.
Private Players in India

The new insurance companies used all channels of advertising from newspapers and the television to insurance agents and direct mailers. The new companies focused their campaigns primarily on building an image of trustworthiness and reliability for themselves. Their advertisement focused on insurance as an investment option and not a mere tax saving tool. Most of these advertisements carried messages like the familys happiness. It has been
18
more than 5 years since private insurance companies lunched operations in India, which is depicted in the Table given below.
Company Birla Sun life Om Kotak HDFC-Stand Life Royal Sundaram ICICI-Prudential Max New York Life Tata-AIG ING Vysya Aviva Met Life India Bajaj Allianz Reliance life Ins. SBI Life Ins.
Indian Partner Aditya Birla Group Kotak Mahindra Fin. HDFC Sundaram Finance ICICI Max India Tata group Vysya Bank Dabur J & K Bank Bajaj Auto A.D.A.G. SBI
Foreign Insurer Sun life, Canada Old Mutual, South Africa Standard Life UK Roya Sun, U.K. Prudential, U.K. New York Life U.S.A. AIG USA ING Ins., Netherlands CGU life, UK Met Life, USA Allianz Genins Cardiff, France
Area Life Life Life Life & Non life Life Life Life & non Life Life Life Life Life & non Life Life Life
Need For Insurance

To provide cash to meet various routine expenses of the family on or immediately after the death of the income earner of the family. To preserve the familys accustomed standard of living ever after the death of the breadwinner.
19
To provide continuous flow of funds for the living spouse. To allocate income funds for the childrens education. To provide a retirement income throughout old age. To provide a reliable savings plan for the future. To supplement income when earning power is reduced or eroded by illness, accident or any handicap. To furnish surplus earnings for the investors should disaster strike.
20
COMPANY PROFILE
Share khan Limited is a retail financial services provider with a focus on equities, derivatives and commodities brokerage execution on the National Stock Exchange of India Ltd. (NSE), Bombay Stock Exchange Ltd. (BSE), National Commodity and Derivatives Exchange India (NCDEX) and Multi Commodity Exchange of India Ltd. (MCX). Share khan provides trade execution services through multiple channels - an Internet platform, telephone
21
and retail outlets and is present in 225 cities through a network of 615 locations. The company was awarded the 2005 Most Preferred Stock Broking Brand by Awwaz Consumer Vote.
Share khans equity related services include trade execution on BSE, NSE, Derivatives, commodities, depository services, online trading and investment advice. Trading is available in BSE and NSE. Along with Sharekhan.com website, Share Khan has around 510 offices (share shops) in 170 cities around the country Share khan has one of the best states of art web portal providing fundamental and statistical information across equity, mutual funds and IPOs. You can surf across 5,500 companies for in-depth information, details about more than 1,500 mutual fund schemes and IPO data. You can also access other market related details such as board meetings, result announcements, FII transactions, buying/selling by mutual funds and much more. Share khan Limited is a retail financial services provider with a focus on equities, derivatives and Commodities brokerage execution on the National Stock Exchange of India Ltd. (NSE), Bombay Stock Exchange Ltd. (BSE), National Commodity and Derivatives Exchange India (NCDEX) and Multi Commodity Exchange of India Ltd. (MCX). Share khan provides trade execution services through multiple channels - an Internet platform, telephone and retail outlets and is present in 225 cities through A network of 615 locations. The company was awarded the 2005 Most Preferred Stock Broking Brand by Awwaz Consumer Vote.
Service Offer by Share Khan
Technical services Equity and Derivatives Trading Depository Services
22
Fundamental Research Online services Share Shops Commodity Trading Portfolio Management Dial-N-Trade
ICICI Prudential Company

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financial services group headquartered in the United Kingdom.
23
ICICI was established in 1955 to lend money for industrial development. Today, it has diversified into retail banking and is the largest private bank in the country. Prudential plc was established in 1848 and is presently the largest life insurance company in the UK. ICICI Prudential is currently the No. 1 private life insurer in the country. It was one of the first players to commence operations when the insurance industry was opened to the private sector in 2000. The company has a network of over 583 branches and over 234,000 advisors; ICICI Prudential Life Insurance recorded a total new business premium of Rs. 51.6 billion during fiscal 2007 as compared to Rs.26.0 billion during fiscal 2006, a growth of 98.4%. ICICI Prudential Life Insurance was the largest player in the retail segment of the private sector life insurance market with a market share of about 28% during fiscal 2007 (on weighted received premium basis).
Registered Office: ICICI Towers 9th floor, Bandra-Kurla Complex Mumbai - 400 051. Tel: 494 3232
ICICI Prudential life insurance tie up with Share khan

ICICI Prudential Life Insurance Company Ltd today said it has entered into a strategic distribution tie-up with Share khan for distribution of ICICI Prudential Life's protection, wealth creation, retirement solution and health insurance products to customers across the country.
24
The partnership has been established under the corporate agency model. Share khan, a leading retail brokerage house, can now offer life insurance solutions from ICICI Prudential Life with this partnership. The tie-up will also substantially strengthen ICICI Prudential Life's presence in the country. ''Our philosophy is to partner with a limited number of organizations and build distribution capabilities, around the partner's area of strength,'' said ICICI Prudential Life Insurance Company Chief (Alternate Channels and Group Sales) Tarun Chugh. ICICI Prudential Life Insurance Company Limited (ICICI Prudential Life), the leading private life insurer in India, has announced a strategic distribution tie-up with Share khan, one of India's leading retail brokerage houses. The partnership has been established under the corporate agency model and will enable Share khan to distribute ICICI Prudential Life's protection, wealth creation, retirement solution and health insurance products to their customers across the country. Over the years, Share khan has established itself as a financial advisor and a retail broker and has a large customer base that trusts it for knowledge and expertise in financial services. With this partnership, they can now offer their customers the added benefit of life insurance solutions from ICICI Prudential Life. The tie-up will also substantially strengthen ICICI Prudential Life's presence in the country. Mr. Tarun Chugh, Chief- Alternate Channels & Group Sales, ICICI Prudential Life Insurance Company said, "Our philosophy is to partner with a limited number of organizations which have strong brands and long-lasting, trust-based relationships with their customers and build distribution capabilities, around the partner's area of strength. Share khan, with its expertise in the area, is an ideal partner for us. We are sure this partnership will help Share khan's customers reach us through a channel they already trust." Mr. Jaydeep Arora, Director, Share khan said, ''Our customers are always looking at investing in innovative products and this initiative will help us provide world-class products
25
from India's leading private life insurer, besides offering excellent service levels. The products of ICICI Prudential Life are customer centric and its service levels are excellent and we look forward to offering them to our customers." ICICI Prudential Life has a multi-channel distribution strategy to reach customers. In addition to the advisor channel, the company has distribution arrangements with established banks and large retail finance distributors.
SCOPE OF THE WORK

When it comes to investing for the future most people miss the boat simply because the put off doing the essentials to get started.
26
They procrastinate, usually because they think that investing is too hard, or for some other reason it really is not possible for them, and/or because theyre intimidated by the financial works.
To create a financially secure future, it is imperative to start with a can do attitude. Become a good investor you will also need to acquire knowledge of the financial world and the various types of investments that are out there. To create lasting wealth, you invest your money in solid investments that will compound on themselves, and grow your investment capital year after year.
Share khan is available in more than 170 cities in all over India. Thus, it has access to India, India Economy rising & here consumer can invest more money in financial instruments. An average income per house hold is rising. People can invest much more money. Also it tries to understand customer perception about their services better than the competitors.
The aim of this study is to provide enough information and strategies to help you decide which investments may suit you.
27
OBJECTIVES OF THE STUDY

The project was conducted for the following objectives: To understand the customer perception towards insurance.
28
In which plan did customer want to invest. For whom the customer want to buy the product (Bank, Customers, Advisor, Others) As far as investment is concerned, how they rank ICICI prudential. Whether customers are satisfied with fund charges by the company. To know whether company is able to satisfied the customers queries. Whether customers are satisfied with ICICI Prudential schemes. Are the customers satisfied with the ROI charges by the company? To know whether customer will go for Share khan Ltd. in future.
29
RESEARCH METHODOLOGY
SAMPLING UNITS
Sampling units consist of:Retail Investors
30
Corporate Investors.
Total of 25 units constitute the sample for study. SAMPLING APPROACH Quantitative approach
Method of primary data collection Questionnaire SAMPLING DESIGN Probability method. SAMPLE SIZE Sample size: Sample Type: 25 Respondents
Due care was taken that all the 25 respondents included in the study were
homogeneous in all respects. In other words non investors were not included in the sample. Efforts were also made to include investors who had varying levels of investments frequency and invested amount.
31
OBSERVATION and ANALYSIS

From the data collection during the survey following information is found:-
Out of total customers surveyed 76% are employees and 24% are businessman.
32
It can thus be inferred that ICICI generates its maximum business from the employees.
Occupation
80 70 60 50 40 30 20 10 0 Businessman Types Serviceman 24 % Businessman Serviceman 76
Most of the customers have LIFE TIME SUPER PLAN. After that they have PENSION PLAN after that SMART KID PLAN.
Life Time Super
16
Share Khan Pvt. Ltd. Pune Pension Plan 6

Smart Kid Plan 3
33
ICICI's Plan
Smart Kid Plan 12%
Pension Plan 24% Life Time Super 64%
Life Time Super Pension Plan Smart Kid Plan
52% rank ICICI Prudential better than others, while 28% ranked good.
34
Rank better good bad
% 52 28 20
Rank of ICICI Pru.

60 52 50 40 30 20 10 0 better good Ranks bad % 28 20 better good bad
Most of the customers have their sum assured in the range of 100,000 to 300,000 and 300,000 to 5,00,000.
35
0-1,00,000 1,00,000-3,00,000 3,00,000-5,00,000 5,00,000+
8 40 44 8
Income
50 45 40 35 30 25 20 15 10 5 0 0-1,00,000 1,00,0003,00,000 3,00,0005,00,000 5,00,000+ 8 8 % 0-1,00,000 1,00,000-3,00,000 3,00,000-5,00,000 5,00,000+ 44 40
Income Ranges
The customers prefer Yearly (56%) mode of premium payment. 20% of customers prefer monthly payment of premium.
36
Mode Of Payment
60 50 40 30 20 10 0 Yearly Half Yearly Types Monthly Yearly Half Yearly Monthly % 56
24 20
37
Most of the ICICI Prudentials customer prefer 0-15 years of policy maturing period.
Maturing Period
80 70 60 50 40 30 20 10 0 0-15 Year Period 15+ Years % 0-15 Year 15+ Years
44% customers of ICICI prudential are Satisfied with Return of investment (ROI). But 36% are not satisfied with Return of investment.
38
ROI
45 40 35 30 % 25 20 15 10 5 0 Satisfied Dissatisfied Very Satisfied Delight 12 8 Satisfied Dissatisfied Very Satisfied Delight 44 36
Types
39
16% of the existing customers are ready to invest again in insurance while 36% in mutual fund, 20% in share market and 20% in fixed deposit.
Re Investment
40 35 30 25 % 20 15 10 5 0 16
36
Insurance Mutual Fund Share Market Fixed Deposit
20
20
Others
1 Sources
40
Mostly customers (60%) take the insurance for themselves. Only 28% customers take insurance for their wife.
Whom You get the Product

70 60 50 40 % 30 20 Child, 12 10 0 1 Types Wife, 28 Yourself Wife Child Yourself, 60
41
48% customer purchase policy from Agent Companies. After that 24% purchase from advisors.
Purchase
60 50 40 Bank 30 20 10 0 1 from Whom % Agent Companies 24 16 12 Advisors Others 48
42
48% customers are satisfied with Fund Charges Of ICICI Prudential Company. But 32% customers are not satisfied.
Satisfaction With Fund Charges

60
50
Satisfied, 48
40 Dissatisfied, 32 30 % Satisfied Dissatisfied Very Satisfied Delight
20
10
Very Satisfied, 12 Delight, 8
0 1 Types
43
32% customer gets the information of ICICI Prudential by Hoardings. After that 28% get from Newspaper.
Advertisement of ICICI Pru.

35 30 25 20 % 15 10 5 0 1 Types T.V., 16 Hoardings, 32 News Paper, 28 Website, 24 T.V. News Paper Hoardings Website
Contribution of Major Market Player in India.
44
Birla Sun life HDFC-Stand Life ICICI-Prudential Max New York Life Bajaj Allianz Reliance life Ins. SBI Life Ins.
12% 21% 18% 13% 17% 11% 8%
45
Percentages
Bi rl a
10%
15%
20%
25%
0%
5%
H D FC -S ta nd Li fe ia l Li fe Ba ja jA R el ia nc e SB I l lia l if e Li fe nz In s. In s. IC I-P ru de nt Yo rk Ne w li f e
Su n
IC M ax
Market Player
Name of Companies

Series1
46
LIMITATIONS
As I have concentrated on only one branch of Share khan may other branch have some other result?
As sample size is so small that we cant think all customers have same view.
As time allotted so small that one cant do it well.
47
Very less time interacted with customer during filling up of questionnaire.
It also depend on the mood of researcher whether he is devoted to project or not.
Unawareness among people about policy.
Lack of after sells services.
High premiums as compared to the LIC policies as it are providing ICICI Prudentials policies. There are many hidden charges that can not be shown to the customers.
48
SUGGESTIONS
o People are satisfied with value added service like through message, telephone customer told about new product and they have to do next payment of policy more service should provided to them on screen alert for new product. Generally people of services doesnt go for investment but at year end they go for big investment to save taxes let makes them aware from starting of year to save more tax. Well service people have good idea about the product but business people dont have as they are not aware about so there should some type of meeting to held on holiday on which they given information in those.
49
o o
People should give those which can fulfill by company only. As we see that most of investor are from service as want to save tax so better product can be offer to them in get good return. As people are more interested to invest in life time super plan as it give good return so new product should launched taking basis of it. As we can see people are satisfy with relationship manager as they suggest good plan to invest so that they should provide better advice to them. People are dissatisfied with the fund charges as they dont know how charges made so there should be transparency so that they can know it. They have to make it more transparent. They have to publish their portfolio more frequently. More collaboration with banks. Personnel assistance to client.
o o o o o
50
BIBLIOGRAPHY
www.iciciprulife.com www.sharekhan,com www.thehindubusinessline.com www.moneycontrol.com www.irdaindia.org
51
52
QUESTIONNAIRE
Name: Address:Occupation: Industry: -
Gender:-
Contact No.:Designation: -
1.
Pleases tell me the Names of the Insurance Companies You Are Aware Of?
53
2.
Do you have a life insurance policy?
Yes / no
If yes, which company
3.
What are the reasons for choosing an insurance company / policy? Score them on a scale of 1 to 10 Reliability Rate of return Number of Schemes available Insurance agent Transparency Reputation Easy documentation Tax saving
4.
Which plan do you have? a) Life time super b) Smart kid c) Pension Plan For whom you get this product? a) yourself b) wife c) child d) others How you rank ICICI PRU?
5.
6.
54
a) bad b) good c) better
7.
From whom you like to purchase? a) bank b) agent companies c) advisors d) other
8.
Are you satisfied with fund charges? a) Dissatisfied b) Satisfied c) Very satisfied d) Delight Are you satisfied with ROI you get? a) Dissatisfied b) Satisfied c) Very satisfied d) Delight
9.
10.
Do you recall seeing any advertisement for ICICI Prudential? If yes where? a) TV Commercial b) Magazines/ News paper c) Billboards/ Hoardings d) Website Others................................
11.
Which kinds of payment do you prefer most? a) Monthly Quarterly 55
b) Half yearly
Yearly
12. What is maturing period of any policy do you take?

a) 0-15 Years b) 15+ Years
13. What is your annual Income?

a) 0-1,00,000 b) 1,00,000-3,00,000 c) 3,00,000-5,00,000 d) 5,00,000 above 14. Where you Re-invest your money? a) Insurance b) Mutual Fund c) Share Market d) Fixed Deposit e) Others
Date: -
Name of Respondent
56

Share Khan Pvt. Ltd. Pune: A Project Report On "The Study On Consumer Perception Regarding Insurance"

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Share Khan Pvt. Ltd. Pune: A Project Report On "The Study On Consumer Perception Regarding Insurance"

Uploaded by

Copyright:

Available Formats

A Project Report On THE STUDY ON CONSUMER PERCEPTION REGARDING INSURANCE For SHARE KHAN Pvt.Ltd.

Submitted to UNIVERSITY OF PUNE

Submitted By: Project Guide

SINHGAD INSTITUTE OF MANAGEMENT & COMPUTER APPLICATION (SIMCA)

Share Khan Pvt. Ltd. Pune

Share Khan Pvt. Ltd. Pune

OBJECTIVES OF THE STUDY

OBSERVATION & ANALYSIS

Share Khan Pvt. Ltd. Pune

Share Khan Pvt. Ltd. Pune

Share Khan Pvt. Ltd. Pune

Share Khan Pvt. Ltd. Pune

Origin of life insurance. Role of life insurance.

Need for life insurance.

Share Khan Pvt. Ltd. Pune

Share Khan Pvt. Ltd. Pune

Share Khan Pvt. Ltd. Pune

Share Khan Pvt. Ltd. Pune

Share Khan Pvt. Ltd. Pune

Origin of Insurance in India

Share Khan Pvt. Ltd. Pune

Share Khan Pvt. Ltd. Pune

Share Khan Pvt. Ltd. Pune

The Insurance Regulatory and Development Authority (IRDA)

Share Khan Pvt. Ltd. Pune

Share Khan Pvt. Ltd. Pune

Share Khan Pvt. Ltd. Pune

Private Players in India

Share Khan Pvt. Ltd. Pune

Need For Insurance

Share Khan Pvt. Ltd. Pune

Share Khan Pvt. Ltd. Pune

Share Khan Pvt. Ltd. Pune

Service Offer by Share Khan

Technical services Equity and Derivatives Trading Depository Services

Share Khan Pvt. Ltd. Pune

ICICI Prudential Company

Share Khan Pvt. Ltd. Pune

ICICI Prudential life insurance tie up with Share khan

Share Khan Pvt. Ltd. Pune

Share Khan Pvt. Ltd. Pune

SCOPE OF THE WORK

Share Khan Pvt. Ltd. Pune

Share Khan Pvt. Ltd. Pune

OBJECTIVES OF THE STUDY

Share Khan Pvt. Ltd. Pune

Share Khan Pvt. Ltd. Pune

Share Khan Pvt. Ltd. Pune

Share Khan Pvt. Ltd. Pune

OBSERVATION and ANALYSIS

Share Khan Pvt. Ltd. Pune

Life Time Super

Share Khan Pvt. Ltd. Pune Pension Plan 6

Smart Kid Plan 12%

Pension Plan 24% Life Time Super 64%

Life Time Super Pension Plan Smart Kid Plan

Share Khan Pvt. Ltd. Pune

Rank better good bad

Rank of ICICI Pru.

Share Khan Pvt. Ltd. Pune

0-1,00,000 1,00,000-3,00,000 3,00,000-5,00,000 5,00,000+

Share Khan Pvt. Ltd. Pune

Share Khan Pvt. Ltd. Pune