1.

1 INTRODUCTION
The term insurance may be difined as The act, business, or system of insuring,
the state or a being insured, coverage by a contract binding a party to indemnify
another against loss in return for premium paid.

Generally speaking insurance is nothing but the spreading of the risk of the few
over the many. The loss faced by a few persons is spread to all people who have
the possibility of facing similar risk.

DIVISIONS OF INSURANCE BUSINESS:

Insurance business is dividing into four classes:
1.Life insurance
2.Fire insurance
3.marine insurance
4.Miscellaneous insurance
Life insurers transact life insurance business, general insurers transact the rest.

MERITS OF LIFEINSURANCE:
Life insurance involves both the elements of protection and investment. The
following are the advantage of life insurance:
Superior savings plan

Encourages and forces thrift

Protection against creditors
Suitable for raising loan
Tax bebefits an investment element reduces financial burden
Reduces financial burden

NEEDS OF INSURANCE:
Youth makes us feel immoral and invincible. It is all about dreams not
about death and disease. But this is the best time to insurance so that the dreams
are not shattered by death.
Life insurance provides risk cover which no other investment option offers. Following
are the advantage of life insurance:
It provides full protection against risk of death.
Encourages and forces compulsory saving as the saved money cannont
be withdrawn and premium has to be paid regularity.
Provides loan to tie over a temporary difficult phase and is also acceptable
as security for a commercial
Loan.
Provides tax benefits to policyholders.
Hedges risk against uncertainty.

Risk cover
Life is full of uncertainties-accident, illness, theft, natural disaster might happen
anytime. Being do not have much control over lifes risks
and uncertainties
however they can at least be prepared for them and their aftermath.life insurance can
be a big support to a family in troubled times, to meet their financial needs, to fulfill
their dreams of another child
bigger home, a new business, college education ,

travel, retirement life insurance is all about making sure your family has adequate
financial resources to make thir future plans and dreams come true.
Insurance provides you with that unique sense of security that no other form of
investment provides. By buying life insurance , you buy peace of mint and are
prepared to face any financial demand that would hit the family in case of an
untimely demise. Insurance also provides a safeguard in the case of accidents or
a drop in income after retirement. An insurance policy can lend timely support to
the family in case of an accident or disability. It also comes as a great help whin
you retire, in case no untoward incident happens during the term of the policy.

Investment
Insurance can be an attractive option for investment too. A lot of
insurance products yield more compared to regular investment option, with the
added advantages of providing incentives. No other investment schemes can offer
financial protection from risks.
The premium you pay for an insurance policy is an investment against
risk. Before comparing it with other schemes, one must remember that a part of the
total amount invested in life insurance goes toward providing for the risk cover,
while the rest is used for saving.
Also life insurance provides you get maturity benefits on survival the end of the
term. i.e. if you take a life insurance policy for 20 years and survival the term, the
amount invested as premium in the policy will come back to you with added
returns. In case of death or disability within the tenure of the policy, the
family/insured will receive the sum assured.
Now, let us compare insurance as an investment option. If you invest Rs.10,000 in
other investment options like PPF or Bonds, your money might give better returns
but you cannot access you funds. One withdraw 50 per cent of initial deposit only
after 4 years. The same amount can give you an insurance cover of up to
approximately Rs.5-10 lakh(depending upon the plan, age health, ect) and this amount
would be immediately available to the nominee of the policyholder on death.
3

Thus insurance provides sound returns in addition to risk cover.

Tax planning
Insurance can be used for tax planning too. Under section 88 of income tax
act, an individual is entitled to a rebate of up to 20 per cent on the annual
premium payable on his/her life of spouse and life of his/her children. This benefit
is available to an individual or a Hindu undivided family.
If the gross income per annum is less than Rs.1.5 lakhs per annum maximum
benefit available is 20% of the eligible amount I.e Rs.14,000. If the gross income
per annum is between Rs.1.5 lakhs per annum maximum benefit available is 15% of
the eligible amount i.e Rs.10,500.

More option & products

The entry of new players after opening up of sector has helped in more than one.
Aggressive advertising has improved awareness levels.
Many new and innovative products have been launched. Customer have
tremendous choice from a large variety of products from pure risk
insurance to unit-linked investment.
Customers are offered unbundled products with a variety of benefits as
riders from which they can choose. More customers are buying products
and service based on their true need and not just traditional money-back
policies.
Advice and need based selling is emerging through much better trined sales
force and advisors.
There is improvement in response and turnaround times in specific areas
such as delivery of first policy receipt, policy document, premium notice, final
maturity payment, settlement of claims ect.
At present there are 14 life insurance companies in india
4

Bajaj Allianz life insurance company limited

Birla sun life insurance comapy limited
HDFC standard life insurance company limited
ICICI prudential life insurance company limited
ING vysya life insurance company limited
Life insurance corporation of india
Max new York life insurance company limited
MetLife india insurance company pvt. Limited
Kotak Mahindra old mutual life insurance company limited
SBI life insurance company limited
Tata AIG life insurance company limited
AMP sanmar life insurance company pvt. Limited
Reliance life insurance company limited

Max new York life life insurance is one leading insurance provider in the nation. In
order to become the leader in the insurance sector, a survey titled NEED BASED

SELLING OF INSURANCE PRODUCT has been carried out.

1.2 IMPORTANCE OF THE STUDY

The study will help the customer to realize their actual need about the life
insurance.
The study will create awareness in the minds of general public about the life
insurance.
The study will help the customer in possible way for their betterment of life.

1.3 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES:
To study the need based selling of life insurance product.
SECONDARY OBJECTIVE:
To create awareness in the minds of the general puplic.
To study the process of life insurance products.
To suggest few measures to improve the betterment of the company.

1.4 SCOPE OF THE STUDY

7

 The study will analyze how the life insurance plays a vital role in the human
life.
It bridges the gap between the general public and the life insurance
companies.
The study will change the perception of the customers about life insurance.
The study will increase the selling activities of the life insurance products.
The study will encourage the savings patten of the general public.

1.5 LIMITATION OF THE STUDY

The study was confined only to customer at kanchipuram so it cannot be
generalize to other areas.
8

 Some respondents were reluctant to divulge information which can affect

the validity of all responses.
`
In a rapidly changing industry, analysis on one day or in one segment can
change very quickly. The environmental changes are vital to be considered
in order to assimilate the findings.

1.6 TOOLS USED FOR ANALYSIS

The role of statistical in research is to furnish a tool in

designing research analyzing its data and drawing conclusion
there from. As well it is known that a researcher cannot
9

ignore the science of statistics. Tools used in the study are

as follow,
Percentage analysis
Chi square test
Weighted average method
Bar diagram
Correlation

COMPANY PROFILE

THE HISTORY OF INDIAN INSURANCE INDUSTRY

In 1818 the british established the first insurance company in india in Calcutta, the
oriental life insurance company. First attempts at regulation of the industry were
made with the introduction of the Indian life insurance companies Act in 1912. A
10

number of amendments to this Act were made until the insurance Act was drawn up
in 1938. Noteworthy features in the Act were the power given to the government to
collect statistical information about the insured and the high level of protection the
Act gave to the public through regulation and control. When the Act was changed in
1950, this meant far reaching changes in the industry. The extra requirements
included a statutory requirement of a certain level of equity capital, a ceiling on
share holdings in such companies to prevent dominant control(to protect the public
from any adversarial policies from one single party), stricter control on investment
and, generally, much tighter control. In 1956, the market contained 154 indian and 16
foreign life insurance companies. Business was heavily concentrated in urban areas
and targeted the higher echelons of society.unethical practices adopted by some of
the players against the interest of the consumers then led the Indian government to
nationalized the industry. In September 1956, nationalized was completed, merging all
these companies into the so-called life insurance corporation (LIC). It was felt that
nationalization has lent the industry fairness, solidity, growth and reach.

Some of the important milestones in the life insurance business in indian are:
1912: The Indian life insurance 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 business.
1938: earlier legislation consolidated and amended to by the insurance Act with the
objective of protecting the interests of the insuring public.
1956: the market containment 154 indian and 16 foreign life insurance company.
11

General insurance
The general insurance industry in india dates back to the industrial revolution and
the subsequent in trade across the oceans in the 17 th century. As for life insurance,
the british brought general insurance to india, and a similar path was followed in
the development of this industry. A number of private companies were in existence
for years and years until, In 1971, the Indian government decided that the public
interest would be served by nationalizing the industry, merging all the 107 companies
into four companies, depending on the sort of business transacted
(marine,fire,miscellaneous). These were the national insurance company ltd., the
oriented insurance company ltd., the new india assurance company ltd., the united
india insurance company ltd. Located in Calcutta, new delhi, Bombay and madras
respectively. The general insurance corporation (GIC) was set up in 1972 as
a`holding company, having these four companies as its subsidiaries.

Some of the important milestones in the general insurance 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 Tariff Advisory committee set up.
1972: The general insurance business (Nationlization) Act,1972 nationalize the general
insurance business in india with effect from 1 st January 1973. 107 insurers
amalgamated and grouped into four companies 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.
12

MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA

Life insurance corporation of india(LIC)

Life insurance corporation of india (LIC) was established on 1 st September 1956 to
spread the message of life insurance in the country and mobilise peoples savings
for nation-building activities. LIC with its central office in Mumbai and seven zonal
offices at Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur and Bhopal, operates
through 100 divisional offices in important cities and 2,048 branch offices. LIC has
5.59 lakh active agents spread over the country.
The corporation also transacts business aboard and has offices in Fiji, Mauritius and
united kingdom. LIC is associated with joint ventures abroad in the insurance, namely,
ken-india associated company limited, Nairobi; united oriental Assurance company
company limited, kuala lumpur; and life insurance corporation (international), E.C.
Bahrain. It has also entered into an agreement with the sun life(UK) for marketing unit
linked life insurance and pension policies in U.K.
In 1995-96, LIC had a total income from premium and investment of $5 billion while
GIC recorded a net premium of $1.3 billion. During the last 15 years, LICs income
grew at a healthy average of 10 per cent as against the industrys 6.7 per cent
growth in the rest of Asia(3.4 per cent Europe, 1.4 per cent in the US).
LIC has even provided insurance cover to five million people living below the
poverty line, with 50 per cent subsidy in the premium rates. LICclaims settlement
ratio at 95 per cent GICat 74 per cent are higher then that of global average of 40
13

per cent . compounded annual growth rate for life insurance business has been
19.22 per cent per annum.

General insurance corporation of india (GIC)

The general insurance industry in india was nationalized and a government company
known as general insurance corporation of india (GIC) was formed by the central
government in November 1972. With effect from 1 january 1973 the erstwhile 107
indian and foreign insurers which were operating in the country prior to
nationalization. Were grouped into four operation companies, namely,(1)national
insurance company limited; (2)New india assurance company limited;(3)Oriental
insurance company limited; and (4)united.
India insurance company limited. (However, with effect from dec2000, these
subsidiaries have been de-linked from from the parent company and made as
independent insurance companies). All the above four subsidiaries of GIC operate all
over the country competing with one another and underwriting various classes of
general insurance business except for aviation insurance of national airlines and crop
insurance which is handled by the GIC.
Besides the domestic market, the industry is presently operating in 17 countries
directly through branches of agencies and in 14 countries through subsidiary and
associate companies.

IN ADDITION TO ABOVE STATE INSURANCES THE FOLLOWING

HAVE BEEN PERMITED TO ENTER INSURANCE BUSINESS:
The introduction of private players in the industry has added to the colors in the
dull industry. The initiatives taken by the private players are very competitive and
have given immense competition to the on time monopoly of the market LIC. Since
the advent of the private players in the market the industry has seen new and
innovative steps taken by the players in the this sector. The new players have
improved the service quality of the insurance. As result LIC down the years have
seen the declining phase in its career. The market shares was distributed among
the private players. Though LIC still holds the 75% of the insurance sector but the
14

upcoming natures of these private players are enough to give more competition to
LIC in the near future. LIC market share has decreased from 95% (2002-03) to 82%
(2004-05).

1.HDFC Standard life insurance company Ltd.

HDFC standard life insurance company Ltd. is one of indias leading private life
insurance companies, which offers a range of individual and group insurance
solutions. It is a joint venture between housing development finance corporation
limited (HDFC Ltd.), indias leading housing finance institution and the standard life
insurance company, a leading provider of financial services from the united kingdom.
Their cumulative premium income, including the first year premiums and renewal
premium is Rs.672.3 for the financial year, Apr-Nov 2005. They have managed to
cover over 11,00,000 individuals out of which over 3,40,000 lives have been covered
though our group business tie-ups.

2.max new York life insurance Co.Ltd.

Max new York life insurance company limited is a joint venture that brings together
two large focus-Max india limited, a multi-business corporate, together, with new York
life international, a global expert in life insurance. With their various products and
riders, are more than 400 product combination to choose from. They have a national
presence with a network of 57 officers in 37 cities across india.

3.ICICI Prudential life insurance company Ltd.

ICICI Prudential life insurance company is a joint venture between ICICI bank, a
premier financial powerhouse and prudential plc, a leading international financial
service group headquartered in the united kingdom. ICICI prudential was amongst
the first private sector insurance companies to being operations in December 2000
after receiving approval from insurance regulatory development authority (IRDA). The
company has a network of about 56,000 advisors; as well as 7 bancassurance and
150 corporate agent tie-ups.

4.kotak Mahindra old mutual life insurance Ltd.

Kotak Mahindra old mutual life insurance Ltd. is a joint venture between kotak
Mahindra bank (KMBL), and old mutual plc.
15

5.Birila sun life insurance company Ltd.

Birila sun life insurance company is a joint venture between Aditya brila group and
sun life financial services of Canada.
6.Tata AIG life insurance company Ltd.
7.SBI life insurance company limited.

8. ING Vysya Life Insurance Company Private Limited

9. Bajai Alliancz Life Insurance Company Ltd.
10. Metlife India Insurance Company Pvt. Ltd.
11. AMP SANMAR Assurance Company Ltd.
12. Aviva Life Insurance Company Ltd.,
13. Reliance Life Insurance Company Ltd.,
Some of the General Insurance Companies are:
1. Royal Sundaram Alliance Insurance Company Limited
The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram Finance
Limited started its operations from March 2001. The company is Head Quartered at
Chennai, and has two Regional Offices, one at Mumbai and another one at New Delhi.
2. Bajaj Allianz General Insurance Company Limited

16

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto
Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and
strength.
Bajaj Allianz General Insurance received the Insurance Regulatory and Development
Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct General
Insurance business (including Health Insurance business) in India. The Company has an
authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74% and the remaining
26% is held by Allianz, AG, Germany.
3. ICICI Lombard General Insurance Company Limited
ICICI Lombard General Insurance Company Limited is a joint venture between ICICI Bank
Limited and the US-based $ 26 billion Fairfax Financial Holdings Limited. ICICI Bank is
India's second largest bank, while Fairfax Financial Holdings is a diversified financial
corporate engaged in general insurance, reinsurance, insurance claims management and
investment management.
Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is one of
Canada's oldest property and casualty insurers. ICICI Lombard General Insurance
Company received regulatory approvals to commence general insurance business in
August 2001.
4. Cholamandalam General Insurance Company Ltd.
Cholamandalam MS General Insurance Company Limited (Chola-MS) is a joint venture of
the Murugappa Group & Mitsui Sumitomo.

17

Chola-MS commenced operations in October 2002 and has issued more than 1.4 lakh
policies in its first calendar year of operations. The company has a pan-Indian presence with
offices in
Chennai, Hyderabad, Bangalore, Kochi, Coimbatore, Mumbai, Pune, Indore, Ahmedabad,
Delhi, Chandigarh, Kolkata and Vizag.
5. TATA AIG General Insurance Company Ltd.
Tata AIG General Insurance Company Ltd. is a joint venture company, formed from the Tata
Group and American International Group, Inc. (AIG). Tata AIG combines the strength and
integrity of the Tata Group with AIG's international expertise and financial strength. The Tata
Group holds 74 per cent stake in the two insurance ventures while AIG holds the balance 26
per cent stake.
Tata AIG General Insurance Company, which started its operations in India on January 22,
2001, offers the complete range of insurance for automobile, home, personal accident,
travel, energy, marine, property and casualty, as well as several specialized financial lines.
6. Reliance General Insurance Company Limited.
7. IFFCO Tokio General Insurance Co. Ltd
8. Export Credit Guarantee Corporation Ltd.
9. HDFC-Chubb General Insurance Co. Ltd.
Marketing of Insurance In India
Insurance is in a manner of speaking the last frontier in the financial sector to open. It is also
a sector, which leads to benefits across the full spectrum, from the individual who now have
wider choices, to the economy, which see increased savings, to the infrastructure sector,
18

which can look forward to long term funding being available. In an under-insured economy,
newer channels of distribution have to be utilized to intensify the reach of insurance both in
urban and rural markets. This will create huge employment opportunities not only within
insurance companies but also as agents and consultants of insurance companies.
Max New York Life Insurance Company Limited is a joint venture between Max India
Limited, which is a one of India's leading multi-business corporations and New York Life
International, the international arm of New York Life, a Fortune 100 company & global expert
in life insurance.
The company has positioned itself on the quality platform. In line with its vision to be the
most admired life insurance company in India, it has developed a strong corporate
governance model based on the core values of excellence, honesty, knowledge, caring,
integrity and teamwork.
Incorporated in 2000, Max New York Life Insurance started its commercial operations in
India in April 2001. in line with its values of financial responsibility, Max New York Life has
adopted prudent financial practices to ensure safety of policyholders funds.
Company's paid up capital as on 31st March, 2009 is Rs 1782 crore.
It is the first life insurance company in India to be awarded the IS0 9001:2000 certifications.
The

company

has

around

133

offices

all

over

the

country.

Max New York Life has multi-channel distribution spread across the country. Agency
distribution is the primary channel complemented by partnership distribution,
bancassurance, alliance marketing and dedicated distribution for emerging markets. The
Company places a lot of emphasis on its selection process for agent advisors, which
comprises four stages - screening, psychometric test, career seminar and final interview.
19

The agent advisors are trained in-house to ensure optimal control on quality of training. The
company currently has around 93,000 agent advisors and more than 800 own employed
sales force at 712 offices across 389 cities. The company also has 36 referral tie-ups with
banks, 24 partnership distribution and alliance marketing relationships each. The company
has 133 offices dedicated to rural areas.

Max New York Life invests significantly in its training programme and each agent is trained
for around 100 hours as opposed to the mandatory 50 hours stipulated by the IRDA before
beginning to sell in the marketplace. Training is a continuous process for agents at Max
New York Life and ensures development of skills and knowledge through a structured
programme spread over 400 hours in two years. This focus on continuous quality training
has resulted in the company having amongst the highest agent pass rate in IRDA
examinations and the agents have the highest productivity among private life insurers
Max New York Life offers a variety of flexible products covering both life and health
insurance including 8 riders that can be customized to over 800 combinations which enable
the customers to choose the policy that suits their needs. Max New York Life also offers 6
products and 7 riders in group insurance business. The company has a plan for every need,
designed as to meet your long term financial goals & aspirations. They help you fulfilling
your dreams & commitments. The list of few plans provided by Max New York Life
The company currently has more than 12,000 employees.

20

New York Life Insurance Company:

New York Life Insurance Company (NYLIC) is the largest mutual life insurance company in
the United States, and one of the largest life insurers in the world. New York Life has the
highest possible financial strength ratings from all four of the major credit rating agencies.
Founded in 1845 and headquartered in New York City, New York Life maintains operations
in all 50 states and eight overseas markets through a network of 17,000 employees and
104,000 licensed agents. New York Lifes family of companies offers life insurance,
retirement income, investments and long-term care insurance. New York Life Investments*
provides institutional asset management and retirement plan services. Other New York Life
affiliates provide an array of securities products and services, as well as institutional and
retail mutual funds. The company is the 76th largest company in the United States
according

to

the

Fortune

500

list.**

*New York Life Investments is a service mark used by New York Life Investment
Management Holdings LLC and its subsidiary, New York Life Investment Management LLC.
** May 4, 2009 Fortune magazine

Achievements and Awards

Some of the Industry Firsts

First company to provide Freelook period of 15 days to the customer. This was later
made mandatory by the regulator
First company to start toll free line for agent services
21

 First and the only life insurance company in India to implement Lean methodology of
service excellence in service industry
First life insurance company in India to provide various services to the agents and
customers over phone
First Indian life insurance company to start service center at the regional level
First life insurance company in India to receive ISO 9001:2000 certification
First life insurance company to be awarded CII-EXIM Bank commendation certificate
for Strong Commitment to Excel.

Awards
Outlook Money survey ranked MNYL No.1 in Slow, Medium and Quick fund
categories
BT Mercer Ranked No7 in the Best companies to Work For
Awarded the Gallup Great Work Place Award 2009
CII Exim Bank Commendation Certificate for Business Excellence 2008 & 2009
Received Best Six Sigma Project award at 6th CII National Six Sigma conventions
2009.
Recognized as a Superbrand
Recipient of 2008 CIO 100 Award for technology implementation
22

 Golden Peacock Award for Innovation 2008

Among the top 25 companies to work for in India, according to Businessworld 2003
Great Workplaces of India
Among the top five most respected insurance companies in India as per
Businessworld 2004 & 2006 survey
Won Indo-American Corporate Excellence Award for Best Indo-US company in
Financial Services Category in 2006
Received Best Six Sigma Project award at Sakal Six Sigma Excellence Awards
2006
Among top 3 in Asia Life Insurance Company of the Year Award 2007 instituted by
Asia Insurance Review
Received the Amity Corporate Excellence Award 2007
Received the Outlook Money Award for being among the best new insurers in the
country.
Max New York Life bags the Asia Insurance Industry Innovation of the Year Award
2009.

PRODUCT PROFILE
Protection Plans
23

 Five Yr Renewable & Convertible Plan

Level Term Policy
Children Plans
Children's Endowment to 18 (Par) Plan
Children's Endowment to 24 (Par) Plan
Skiksha Plus
Investment Plans
SMART Express
Fortune Builder
Secure Dreams
Retirement Plans
Super Invest Pension
Easy Life Retirement (Par) Plan
Health Plans
Lifeline Medicash
Lifeline Wellness Plus
Lifeline Medicash Plus
24

 Lifeline Safety Net

Savings Plans
Whole Life Participating
Life Gain Plus 25 Participating Plan
20 year Endowment (Par) Plan
Life Pay Money Back Plan
Strategic Products Plans
Bancassurance
1. Capital Builder Plan
Partnership Distribution
1. Max Mangal
2. Capital Builder
3. Max Vriksha
4. Max New York Life Unit Builder

Max Amsure
1. Future Builder
2. Business Builder

25

 3. Bonus Builder
4. Secure Returns Builder
Group Plans
Group Credit Life
Unit Linked Group Superannuation Plan
Group Gratuity cum Term Assurance
Group Term Life
Unit Linked Group Gratuity Plan
Employee Deposit Linked Insurance

DATA ANALYSIS & INTERPERTATION

26

Table showing the Age of the Respondents

Age
<25
26 35
36 45
46 55
>55
Total

Total No of
Respondents
11
39
34
31
25
140

% of the Respondents
8
28
24
22
18
100

Findings:

From the above table it was observed that among the

total respondent 28% belonged to the 26 35 yrs, 24% belonged
to 36 -45 yrs, 22% belonged to 46- 55 yrs, 18% belonged to the
>55 and the least investors IS 8% belonged to <25 yrs.

Chart showing the Age of the respondents

27

Inference:

It is inferred that most of the investors belonged to the

26 -35 years age group.

28

Table showing the Gender of the Respondents

Gender
Male
Female
Total

Total No of
Respondents
82
58
140

% of the
Respondents
59
41
100

Findings:

From the above table it was observed that among the

total respondent

59% were male and remaining 41%

female.

Chart showing the Gender of the

respondent

29

Inference:

It is inferred that most of the investors are male

investors.

30

Table showing the Marital Status of the

Respondents

Marital
Status
Single
Married
Total

Total No of
Respondents
13
127
140

% of the
Respondents
9
91
100

Findings:

From the above table it was observed that among the

total respondent

91% were married and remaining 9%

unmarried

31

Chart showing the Marital status of the

respondents

Inference:

It is inferred that most of the respondents are married

people.

32

Table Showing the Respondents interested in

Taking up Life Insurance Policy

Option
Yes
No
Total

Total No of
Respondents
129
11
140

% of the
Respondents
92
8
100

Findings:

From the above table it was observed that among the

total respondent 92% respondents interested in taking up life
insurance and 8% not interested in taking up life insurance.

33

Chart showing Respondents interested in Taking

up Life Insurance Policy

Inference:

34

It is inferred that most of the respondents 92%

interested in taking up insurance policy.

Calculation of Interval Estimation:

n = Sample size 140

Yes = 129

No

= .92

= 11

= .08

p 1.96pq/n

= .92+1.96.92*.08/140

= .92-1.96.92*.08/140

= .92 > p > .91

= 92% > p > 91%

Conclusion:

35

From the above test that the respondents interested in

taking up life insurance policy lies between 0.92 and 0.91 at 95%
confidence interval and population proportion lies between 92%
to 91%

Table Showing the Reason for taking up Life

Insurance

Reasons
Savings
Life Coverage
Tax Benefits
Performance of
fund
Brand Image
Service
Total

Total No of
Respondents
35
51
15
11

% of the
Respondents
27
40
12
9

9
6
140

7
5
100

Findings:

From the above table it was observed that among the

total respondent reason for taking up Life insurance is Life
coverage 40%, Savings 27%, Tax benefit 12%, Performance o
the fund 9%, Brand Image - 7%, Service 5%
36

Chart showing the Reason for taking up

Life Insurance

Inference:
37

It is inferred that most of the investors are chosen Life

coverage (40%) is the reason for taking up Life Insurance.

Table showing the Respondents aware about the

Insurance Companies

Option
Yes
No
Total

Total No of
Respondents
140
0
140

% of the
Respondents
100
0
100

Findings:

From the above table it was observed that among the

total respondents 100% of investors are aware about the
Insurance companies

38

Chart showing the Respondents aware about the

Insurance Companies

39

Inference:
It is inferred that the awareness among the public with
regard to insurance companies is growing rapidly.

showing

the

mode

of

awareness

about

Table
the

Insurance Companies

Mode
Friends
Agents
Newspapers
Tv
Web sites
Others
Total

Total No of
Respondents
38
73
12
10
5
2
140

% of the
Respondents
27
52
9
7
4
2
100

Findings:

From the above table it was observed that among the

total respondents the majority of the mode of awareness is Agent
(52%), and other modes are Friends (27%), Newspapers (9%), Tv
(7%), Websites (4%) and the least mode is Others (2%)

40

Chart showing the mode of awareness about the

Insurance Companies

Inference:
41

It is inferred that most of the investors aware through

agent 52%

Table showing the awareness about the Life

Insurance Companies

Name of the
companies
LIC
ICICI
MAX NEW
YORK
HDFC
SBI
BIRLA
RELIANCE
BAJAJ
Total

Total No of
Respondents
140
81
72

% of the
Respondents
100
58
51

Total No of
Respondents
0
59
68

% of the
Respondents
0
42
49

43
37
78
16
111
140

31
26
56
11
79
100

97
103
62
124
29
140

69
74
44
89
21
100

42

Findings:

From the above table it was observed that among the

total respondents the majority of awareness is LIC (100%), and
other companies are Bajaj (79%), ICICI (58%), Birla (56%), Max
New York (51%), HDFC (31%), SBI (26%) and the least is Reliance
(11%)

Chart showing the awareness about the Life

Insurance Companies

43

Inference:

It is inferred that most of the investors aware about LIC

100% still LIC dominant the industry.

Table showing the Respondents feels Insurance is a

best investment

Option
Yes
No
Total

Total No of
Respondents
132
8
140

% of the
Respondents
94
6
100

Findings:

44

From the above table it was observed that among the

total respondents 94% of investors feels Insurance is a best
investment, 6% feels not best investment.

Chart showing the Respondents feels Insurance is

a best investment

45

Inference:

It is inferred that most of the investors feels insurance

is the best investment for their life 94%

Table Showing Income of the

Respondents

Income
<10,000
10,001 20,000
20,001 30,000
30,001 50,000
>50,000
Total

Total No of
Respondents
20
35
32
29
24
140

% of the Respondents
14.3
25
22.9
20.7
17.1
100

Findings:

From the above table it was observed that among the

total respondents 25% belonged to the 10,000- 20,000, and
22.9% belonged to 20,001 30,000, 20.7% belonged to
46

30,001- 50,000, 17.1% belonged to <50,000, least 14.3%

belonged to >50,000

Chart Showing Income of the

Respondents

47

Inference:

It is inferred that most of the investors 22.9%

belonged to 20,001 30,000 income group.

Table showing monthly expenses of the

Respondent

Monthly Expenses
<10,000
10,001 25,000
25,001 50,000
50,001 75,000
>75,000
Total

Total No of
Respondents
40
43
32
20
5
140

% of the Respondents
28.6
30.7
23.9
14.3
3.5
100

Findings:
From the above table it was observed that among the
total respondents the monthly expenses the investors is 30%
48

belonged to the 10,000- 25,000, and 28.6% belonged to

<10,000, 23.9% belonged to 35,001- 50,000, 14.3% belonged
to 50,001- 75,000, least is 3.5% belonged to >75,000

Chart showing monthly expenses of

the Respondents

49

Inference:

It is inferred that most of the investors is 30.7%

belonged to 10,000 25,000 expenses category.

50

Table Showing the respondents expect for the

childrens higher education

Amount
<1,00,000
1,00,001 3,00,000
3,00,001 5,00,000
5,00,001 10,00,000
>10,00,000
Total

Total No of
Respondents
15
7
17
36
65
140

% of the Respondents
10.7
5.0
12.2
25.7
46.4
100

Findings:

From the above table it was observed that among the

total the investors expect for the childrens higher education is
46.4% belonged to the >10,00,000 and 25.7 2% belonged to
5,00,0011 10,00,000, 12.2% belonged to 3,00,001 5,00,000,
10.7% belonged to <1,00,000, least is 5% belonged to
1,00,001 3,00,000

51

Chart Showing the respondents expect for the

childrens higher education

Inference:

It is inferred that most of the investors is 46.4%

belonged to the

>10, 00,000 category.

Table showing the respondents require for the

childrens marriage
52

Amount
<5,00,000
5,00,001 10,00,000
10,00,001 15,00,000
15,00,001 20,00,000
>20,00,000
Total

Total No of
Respondents
27
50
36
21
6
140

% of the Respondents
19.3
35.7
25.7
15.0
4.3
100

Findings:

From the above table it was observed that among the

total respondents the investors require for the childrens
marriage is 35.7% belonged to the 5,00,001 10,00,000 , and
25.7% belonged to 10,00,001 15,00,000, 19.3% belonged to
<5,00,0001, 15% belonged to 15,00,001 - -20,00,000, least is
4.3% belonged to >20,00,000

53

Chart Showing the respondents require for the

childrens marriage

Inference:

It is inferred that most of the investors is 35.7%

belonged to the 5, 00,001 10, 00,000 category.
54

Table Showing Money require to fulfill the

respondents dreams

Amount
<10,00,000
10,00,001 - 25,00,000
25,00,001 - 35,00,000
35,00,001 50,00,000
>50,00,000
Total

Total No of
Respondents
28
39
35
23
15
140

% of the Respondents
20
27.9
25
16.4
10.8
100

Findings:

From the above table it was observed that among the

total respondents money require to fulfill the respondents
dream is 27.9% belonged to the 10,00,000- 25,00,000, and
25% belonged to 25,00,001 35,00,000, 20% belonged to
<10,00,000, 16.4% belonged to 35,00,001 50,00,000 and
least 10.8% belonged to >50,00,000

55

Chart Showing Money require to fulfill the

respondents dreams

Inference:
It is inferred that most of the investors is 27.9 %
belonged to the 10,00,001 25,00,000 category.

56

Table showing money require to satisfy the needs

after retirement of the respondents
Amount
<10,000
10,001 25,000
25,001 50,000
50,001 75,000
>75,000
Total

Total No of
Respondents
26
45
33
25
11
140

% of the Respondents
18.5
32.1
23.6
17.9
7.9
100

Findings:

From the above table it was observed that among the

total respondents money require to satisfy after retirement is
32.1% belonged to the 10,000- 25,000, and 23.6% belonged to
25,001 50,000, 18.5% belonged to <10,000, 17.9% belonged
to 50,001 75,000, least 7.9% belonged to >75,000

57

Chart showing money require to satisfy the needs

after retirement of the respondents

Inference:

It is inferred that most of the investors is 32.1%

belonged to the 10,001 25,000 category.

58

Table Showing Respondents Having Medical

insurance
Option

Total No of
Respondents
47
93
140

Yes
No
Total

% of the
Respondents
33.6
66.4
100

Findings:

From the above table it was observed that among the

total

respondents

66.4%

of

investors

not

having

medical

insurance and 33.6.% of investors only having medical insurance.

59

Chart Showing Respondents Having Medical

insurance

Inference:

It is inferred that the 66.4% of investors not having

medical insurance.

60

Able Showing amount Require for medical

emergency for respondents

Amount
<5,000
5,001 15,000
15,001 30,000
30,001 50,000
>50,000
Total

Total No of
Respondents
13
19
30
21
57
140

% of the Respondents
9.3
13.6
21.4
15.0
40.7
100

Findings:

From the above table it was observed that among the

total respondents the amount require for medical emergency
40.7% belonged to the >50,000, 15,001- 30,000 (21.4%), and
15% belonged to 30,001 50,000, 13.6% belonged to 5,00115,000, least 9.3% belonged to <5,000

61

Chart Showing amount Require for medical

emergency for respondents

Inference:

It is inferred that most of the investors the amount

require for medical emergency 40.7% belonged to the >50,000
category.
62

Table Showing the Avenues of investment of the

respondents

Avenues

Banks
Lands
Insurance
Govt. Bonds
Share market
Gold
Post Office
Total

Total No of
Respondent
yes
123
99
88
0
24
48
5
140

% of the
Respondents
88
71
63
0
17
34
4
100

Total No of
Respondents
No
17
41
52
140
116
92
135
140

% of the
Respondents
12
29
37
100
83
66
96
100

Findings:

From the above table it was observed that among the

total respondents the majority investors like to invest in Banks
(88%), Lands (71%), Insurance (63%), Govt Bonds (0%), Share
Market (17%), Gold (34%), and Post office (4%)

63

Chart Showing the Avenues of investment of

the respondents

Inference:

64

It is inferred that most of the investors (i.e) 88% like

to invest in Banks

Table Showing the Amount of Investment till now

made by the Respondents

Amount
<1,00,000
1,00,001 3,00,000
3,00,001 5,00,000
5,00,001 10,00,000
>10,00,000
TOTAL

Total No of
Respondents
23
25
32
30
35
140

% of the Respondents
12.9
17.9
22.8
21.4
25.0
100

Findings:

From the above table it was observed that among the

total respondents the amount of investment made by the
investors is 25% belonged to the >10,00,000, and 22.8%
belonged to 3,00,001 5,00,000, 21.4% belonged to 5,00,001
10,00,000, 17.9% belonged to 1,00,001 3,00,000, least is
12.9% belonged to <1,00,000

65

Chart Showing the Amount of Investment till now

made by the Respondents

Inference:
66

It is inferred that most of the investors belonged to

>10, 00,000 category (25%).

Table Showing Respondents Taking Insurance

Policy

Option
Yes
No
Total

Total No of
Respondents
108
32
140

% of the
Respondents
77.1
22.9
100

Findings:

From the above table it was observed that among the

total respondents 77.1% like to take insurance policy and 22.9%
not to take insurance policy.

67

Chart Showing Respondents Taking Insurance

Policy

Inference:

68

It is inferred that most of the investors (i.e) 77.1% like

to take insurance policy.

Table Showing the Insurance companies the

respondents Taken the policy

Companies
LIC
HDFC
MAX NEW YORK
RELIANCE
BIRLA
ICICI
OTHERS
Total

Total No of
Respondents
82
33
49
29
62
54
24
140

% of the Respondents
75.9
30.5
45.3
26.9
57.4
50.0
22.2
100

Findings:

From the above table it was observed that among the

total respondents the majority of the investors like to take
insurance in LIC (75.9%), and other companies are Brila (57%),

69

ICICI (50%), Max New York (45.3%), HDFC (30.5%), Reliance

(26.9%), others (22.2%)

Chart Showing the Insurance companies the

respondents Taken the policy

70

Inference:
It is inferred that most of the investors (i.e) 75.9%
like to take insurance policy in LIC.

Table showing the savings of the

respondents

Amount
<5,000
5,001 10,000
10,001 25,000
25,001 50,000
>50,000
Total

Total No of
Respondents
27
40
38
22
13
140

% of the Respondents
19.3
28.6
27.1
15.7
9.3
100

Findings:

From the above table it was observed that among the

total respondents most of the investors is 28.6% belonged to
the 5,001 10,000, 10,001- 25,000 (27.1%), and 19.3%

71

belonged to<5,000, 15.7% belonged to 25,001- 50,000, least

9.3% belonged to >50,000

Chart showing the savings of the

respondents

72

Inference:

It is inferred most of the investors is 28.6% belonged

to 5,001 10,000 of savings category

Calculation

showing

chi-square

test

of

independence

Chi-Square Test on Income & Savings of the respondents

73

Null Hypothesis Ho: There is no relation between income &

savings of the respondents.

Alternative Hypothesis H1: There is significant relation

between income & savings of the respondents.
(a) Table showing Income & Savings of the respondents
Oi

Ei

(oi Ei)

(Oi Ei)2

(Oi Ei)2/Ei

27

28

-1

0.04

40

28

12

144

5.14

38

38

10

100

3.57

22

28

-6

36

1.28

13

28

-25

625

22.32

Calculated chi square value:

Inference:
= 5% with n-1 degrees of freedom
n => 5-1 =4
74

32.35

From chi square table at = 5%, 4 degrees of

freedom
With (5-1) df = 4, df = 9.488
2table = 32.35
Calculated value > Table value
Therefore H1 is accepted.

Conclusion:
Hence, there is relation between income & savings of
the respondents..

Calculation of Pearsons Co-efficient of Correlation

3.2.22. (b) Table showing correlation between Income &
Savings of the respondents

75

X2

Y2

XY

20

27

400

729

540

35

40

1225

1600

1400

32

38

1024

1444

1216

29

22

841

484

638

24

13

576

169

312

X = 140

Y = 140

X2 = 4066

Y2 = 4426

XY = 4106

5(4106)

(5(4066)

140(140)

1402) * (5(4426) - 1402)

n=5
r = 0.6843
Conclusion:
Thus there exists a degree of positive correlation
between the income and the savings of the respondents.

76

Table Showing the aware of services offered by

the various Insurance Companies

Option
Yes
No
Total

Total No of
Respondents
107
33
140

% of the
Respondents
76
23
100

Findings:

From the above table it was observed that among the

total respondents the awareness of services offered by the
insurance companies is 84.3 % and unaware is 15.7%

Chart Showing the aware of services offered

by the various Insurance Companies

77

Inference:

It is inferred that most of the investors were aware

about services offered by various insurance companies is
84.3%

Calculation of Interval Estimation:

n = Sample size 140

78

Yes = 118

No

= .84

= 22

= .16

p zpq/n

= .84+1.96.84*.16/140

= .84-1.96.84*.16/140

= .85 > p > .83

= 85% > p >83 %

Conclusion:
From the above test that the respondents aware
about the services offered by various insurance companies lies
between 0.85 and 0.83 at 95% confidence interval and population
proportion lies between 85% to 83%

Table showing the respondents like to take

Insurance policy in Max New York Life Insurance

79

Option
Yes
No
Total

Total No of
Respondents
83
57
140

% of the
Respondents
59
41
100

Findings:

From the above table it was observed that among the

total respondents 41.4% of the investors like to take Max New
York life insurance policy and 58.6% of investors not to take
insurance policy.

Chart showing the respondents like to take

Insurance policy in Max New York Life Insurance
80

Inference:

It is inferred that the 41.4% of respondents like to

take Max New York Life Insurance Policy.

81

Table showing the tenure of taking policy of the

respondents

Tenure
<5 yrs
5 10
10- 15
15 20
>20 yrs
Total

Total No of
Respondents
23
45
40
21
11
140

% of the Respondents
16.4
32.1
28.6
15.0
7.9
100

Findings:

From the above table it was observed that among the

total respondents 32.1% belonged to the 5 10yrs tenure, 28.6%
belonged to the 10 -15 yrs , 16.4% belonged to <5 yrs, 15%
belonged to 15 20 yrs and least is 7.9% belonged to >20yrs

Chart showing the tenure of taking policy of

the respondents
82

Inference:
It is inferred that most of the investors 32.1%
belonged to 5 -10Years of tenure of policy.

Calculation showing chi-square test of independence

83

Chi-Square Test on Age & Tenure of policy taken by the

respondent
Null Hypothesis Ho: There is no relation between the age & the
tenure of policy taken by the respondents.
Alternative Hypothesis H1: There is relation between the age
& the tenure of policy taken by the respondents.

3.2.25(a) Table showing Age & Tenure of policy taken by

the respondent

Oi

Ei

(Oi Ei)

(Oi Ei)2

(Oi Ei)2/Ei

23

28

-5

25

0.89

45

28

17

289

10.32

40

28

12

144

5.14

21

28

-7

49

1.75

11

28

-17

289

10.32

Calculated chi square value:

84

28.42

Inference:
= 5% with n-1 degrees of freedom
n => 5-1 =4
From chi square table at = 5%, 4 degrees of
freedom
With (5-1) df = 4, df = 9.488
2table = 28.42
Calculated value > Table value
Therefore H1 is accepted.

Conclusion:
Hence, there is relation between the age & the
tenure of policy taken by the respondents.

85

Calculation of Pearsons Co-efficient of Correlation

(b) Table showing correlation between Age & Tenure of

policy taken by the respondent

X2

Y2

XY

11

23

121

529

253

39

45

1521

2025

1755

34

40

1156

1600

1360

31

21

961

441

651

25

11

625

121

275

X = 140

Y = 140

X2 = 4384

Y2 = 4716

XY = 4294

5(4294)

(5(4384)

140(140)

1402) * (5(4716) - 1402)

86

n=5
r=

0.6154

Conclusion:
Thus there exists a degree of positive correlation between
the Age and tenure of policy taken by the respondent

Weighted Average on awareness of service offered

by various Life Insurance companies

Companie
s

Whole
life

Endowmen
t

Money
back
(5)

Child
plan
(4)

Health
plan
(3)

Pension
plan
(2)

ULIPS
(1)

LIC

(7)
140

(6)
24

78

23

18

38

HDFC

32

14

27

30

Max New
York

44

12

18

59

12

14

62

Birla

52

14

21

54

13

20

67

Reliance

21

10

46

10

65

ICICI

25

49

12

58

Weight:
87

Whole life

Endowment

Money back

Child plan

Health plan

Pension plan

ULIPS

Weighted average table:

Companies 7

WA

Rank

LIC

780

1444

390

92

12

36

38

53.29

HDFC

224

48

70

108

24

30

18.29

Max New
York

308

72

90

236

36

28

62

29.71

Birla

364

84

105

216

39

40

67

32.68

Reliance

147

30

50

184

15

20

65

18.25

ICICI

175

18

25

196

24

58

18.04

1. 780 +144 + 390 + 92 + 12 + 36 + 38

15
2. 224 + 48 + 70 +108 + 24 + 8 + 30
88

15
3. 308 + 72 + 90 + 236 + 36 + 28 + 62
15
4. 3.64 + 84 + 105 + 216 + 39 + 40 + 67
15
5. 147 + 30 + 50 + 184 + 15 + 20 + 65
15
6. 175 + 18 + 25 + 196 + 9 + 24 + 58
15

Inference:

It is inferred that the most influencing service offered by

LIC is 53.29, Birla is 32.68, Max New York is 29.71, HDFC is 18.29,
Reliance is 18.25 and ICICI is 18.04

Weighted Average On Life Insurance Products Offered By

Various Insuracne Companies
89

a) LIC
S.

Services

HS

NSNDS

DS

HDS

No
1

Whole life

41

49

20

33

21

Child Plan

23

30

10

Health plan

20

23

15

15

Pension Plan

14

10

Growth Plan

25

15

20

25

10

Weight:
Highly satisfied
=5
Satisfied
=4
Neither satisfied nor dissatisfied = 3
Dissatisfied
=2
Highly dissatisfied
=1

Weighted average Table:

Service
s
1
2
3
4

HS
205
115
100
70

NSND

DS

HDS

WA

Rank

196
120
92
40

S
60
30
45
0

66
10
30
0

21
0
5
0

36.53
18.33
18.13
7.33

1
3
4
5

90

125

60

60

50

10

20.33

1. 205 + 196 + 60 + 66 + 21
15
2. 115 + 120 + 30 + 10 + 0
15
3. 10 + 92 + 45 + 30 + 5
15
4. 70 + 40 + 0 + 0 + 0
15
5. 125 + 60 + 60 +50 + 10
15
Inference:
It is inferred that the majority of the services offered by LIC is
Whole life policy (13.6.53), Growth Plan (20.33), Child plan
(18.33), Health plan (18.13) and least service is Pension plan
(7.33)
b) Max New York

S.

Services

HS

NSNDS

DS

HDS

No
1

Whole life

30

10

15

Child Plan

34

31

Health plan

11

12

14

Pension Plan

12

Growth Plan

23

21

10

91

Weighted average Table:

Service
s
1
2
3
4
5

HS
150
170
55
60
115

NSND

DS

HDS

WA

Rank

40
124
48
24
84

S
15
15
42
9
30

30
0
10
0
14

10
0
0
0
3

15.67
20.60
10.33
6.20
16.40

3
1
4
5
2

Inference:
It is inferred that the majority of the services offered by Max
New York Life Insurance is Child plan (20.6), Growth plan (16.4),
Whole plan (15.67), Health plan (10.33) and least service is
Pension pan (6.20)

c) HDFC

S.

Services

HS

NSNDS

DS

HDS

No
1

Whole life

15

25

32

Child Plan

15

17

15

Health plan

21

13

92

Pension Plan

17

21

Growth Plan

35

22

15

Weighted average Table:

Service

HS

s
1
2
3
4
5

20
75
105
85
175

NSND

DS

HDS

WA

Rank

20
68
52
84
88

S
45
45
0
0
45

50
0
2
8
4

32
0
0
1
1

11.13
12.53
10.60
11.87
20.87

4
2
5
3
1

Inference:
It is inferred that the majority of the services offered by
HDFC

is Growth plan (20.87),Child plan (12.53), Pension plan

(11.87), Whole life (11.13) and least service is Health plan (10.5).
d) ICICI

S.

Services

HS

NSNDS

DS

HDS

No
1

Whole life

10

15

93

Child Plan

20

21

10

Health plan

23

17

Pension Plan

20

25

Growth Plan

47

31

13

Weighted average Table:

Service
s
1
2
3
4
5

HS
50
100
115
100
235

NSND

DS

HDS

WA

Rank

60
84
68
100
124

S
15
30
0
0
39

6
6
6
2
10

2
0
0
0
4

8.87
14.67
12.6
13.47
27.47

5
2
4
3
1

Inference:
It is inferred that the majority of the services offered by ICICI
is Growth plan (27.47), Child plan (14.67), Pension plan (13.47),
Health plan (12.6) and least service is Whole life (8.87).
e) Others

S.

Services

HS

NSNDS

DS

HDS

No
1

Whole life

15

13

94

Child Plan

10

13

14

Health plan

12

14

15

Pension Plan

31

33

10

Growth Plan

45

29

12

Weighted average Table:

Service
s
1
2
3
4
5

HS
75
50
60
155
225

NSND

DS

HDS

WA

Rank

52
52
56
132
116

S
12
42
45
30
36

20
0
0
0
6

0
2
4
0
0

9.40
9.73
11
21.13
25.53

5
4
3
2
1

Inference:
It is inferred that the majority of the services offered by other
life insurance is Growth plan (25.53), Pension plan (21.13), Health
plan (11), Child plan (9.73) and least service is Whole life (9.40)

FINDINGS
95

 Most of the investors belonged to the 26 -35 years age

group.

Most of the investors are belonged to male category

Most of the respondents are married people.

Most of the respondents (i.e) 92% interested in taking up

insurance policy.

Most of the investors are chosen for Life coverage (40%) is

the reason for taking up Life Insurance.

The awareness among the public with regard to insurance

companies is growing rapidly.

Most of the investors aware through agent (i.e) 52%

Most of the investors aware about LIC 100% still LIC

dominant the industry.

96

 Most of the investors (i.e) 94% feels insurance is the best

investment for their life.

Most of the investors 22.9% belonged to 20,001 30,000

income groups.

Most of the investors are 30.7% belonged to 10,000 25,000

expenses category.

Most of the investors require for their childrens marriage is

46.4% belonged to the >10, 00,000 category.

Most of the investors require for their childrens higher

education is 35.7% belonged to the 5,00,001 10,00,000
categories.

Most

of

the

investors

money

requires

to

fulfill

the

respondents financial dream is 27.9 % belonged to the 10,

00,001 25, 00,000 categories.

Most of

the

investors

money

requires

satisfying the

respondents retirement needs is 32.1% belonged to the

10,001 25,000 categories.

97

 The 66.4% of investors not having medical insurance.

Most of the investors the amount require for medical

emergency 40.7% belonged to the >50,000 category.

Most of the investors (i.e) 88% like to invest in Banks.

The amount of investment made by the investors is 25%

belonged to >10, 00,000 category.

Most of the investors (i.e) 77.1% like to take insurance policy.

Most of the investors (i.e) 75.9% like to take insurance policy

in LIC.

The Savings of the investors is 28.6% belonged to 5,001

10,000 categories.

Most of the investors were aware about services offered by

various insurance companies is 84.3%

The 59% of respondents like to take Max New York Life

Insurance Policy.
98

 Most of the investors 32.1% belonged to 5 -10Years of tenure

of policy.

SUGGESTION

The Max New York Life Insurance Company has to

concentrate on awareness campaigns.
As it was tested with statistical tools that there is a
significant impact of awareness of Max New York Life on
creating interest towards taking an insurance policy, the
company must concentrate on huge awareness campaign
like
Public awareness campaigns through stall in
malls and road side areas.
Advertisement campaigns
Promotional campaigns
The Max New York Life Insurance should highlight the
features, benefits of Max in the awareness campaigns. The
awareness campaign should target youngsters, middle aged
customers

&

the

awareness

campaign

should

select

appropriate channels such as regional language channels,

free

awareness

demos/seminars,

99

brochures

along

with

newspapers & sponsoring local events to pierce the brand

name & policy information in the minds of the public.
Max New York Life Insurance should concentrate to
grab the market.
As the people think that insurance is a tool to protect their
family & a tax saving device. They are aware of the fact &
realizing its, importance. The company should try to expand
& build up its infrastructure because there is a large
potential for insurance in India. There are various insurance
companies which are competing with each other in the
market & in order to secure a large chunk of the public, the
company should try to concentrate on the needs of market.
Increase in the sales force.
Organization has to come up with more number of Sales
personnels. The objective and goals have to meet the
demands & expectations of the public. Because the entrance
of private players will increase the competition and it would
be a tough task to secure a good position in market. In order
to attract a large section of the population, the company
should expand its sales force.

Only by way of increase in

sales force, more success can be achieved.

Sales personnel of Max New York should highlight the
features & benefits for customer clarification.

100

Nearly, 51% of the customer is aware of Max New York Life

Insurance. The company should provide good products and
services.

The company should try to

convince these

customers and get them in its favor. Customer satisfaction is

the primary objective of an organization. Only when a
customer is satisfied, one will persist taking a policy with the
same company. It is the duty & responsibility of sales
personnel to highlight the features & benefits of the products
likes Sum assured, Modes of premium, Payment methods,
Maturity benefits, Accident Benefits, Riders option, Switches
in a clear manner for customer clarification. This clear
clarification leads the customer to take policy.
Additional facilities are to be provided to the sales
personnel.
The sales personnel should be equipped with all the required
necessities & whatever questions being put forward by the
customers should be answered by the representatives. There
should not be any sorts of hiccups while on duty. Only by
way of a good sales force the company will be able to
achieve high standards.
The organizations have to keep track of customer
needs & behavior.
It is the responsibility of the company & its agents to
understand

the

pulse

of

the

public.

The

needs

&

requirements of the public, keeps changing according to

101

changing times & so the behavior also happens to fluctuate.

So it is the duty of the company to keep a tab with regard to
the taste & preferences of the public.
The organization has to track the customer needs & behavior
by adopting
Research methods
Reference
Literature background
Survey method
Personal interview
Observation of customers
Physiological measures
The Max New York Life Insurance should convince the
customers in going for long policy tenure.
When people come forward to take up a policy with Max New
York,

the

company

representatives

should

advise

the

customer by saying as to which policy is most suitable for

the person. Persons who belong to ages fewer than 25 can
go for policy which has long maturity periods & those
persons who are aged can go for policy of a quick term.
Life insurance policy should be positioned as the best
investment in the minds of consumers.
Majority of the respondents do not think of insurance as
savings. People go for bank deposits & fixed assets on
102

account of savings. The awareness with regard to insurance

on account of savings is very less, so conducting awareness
program will tend to bridge the gap among the minds of
customers. The advantages of investing in insurance should
be told in a pleasing manner so as to make the customer
convinced.
Max New York Life Insurance Company have to
concentrate on the dissatisfied customers of other
insurance companies & try convincing them to take
up policy with Max New York.
There are bound to be customers, who are not satisfied by
the services of the present company. Those people are to be
targeted by Max New York & must convince them by making
them to take up a policy. The reason for which the customer
was unsatisfied by the previous insurance company has to
be taken into consideration, so the same does not happen at
Max New York.

CONCLUSION
This study is related to Need based selling of Life
Insurance products with respect to Max New York Life
Insurance Company.
This study has been conducted, to create awareness in the minds
of the general public, and to realize s their actual need, and for
103

the betterment of customers. So Max New York Life Insurance can

develop their market position through various promotional mix
and activities.
If the suggestion, given are implemented, that the Max New York
Life Insurance could raise the level of sales of their products as
well as the company image which will make them as market
leader among the insurance companies.
By analyzing the survey results majority of the customer were
satisfied with the existing Max New York Life Insurance products
and also have awareness of Max New York
This work would be beneficial for the Insurance Company to a
certain extent and also that a fewer of my suggestions would be
helpful and also considerable.

QUESSINNAIRE
Name
Age

:
:

[ ] >25 [ ] 26-35 [ ] 36 45 [ ] 46-55 [ ]

<55
Gender

Occupation

Marital Status :

[ ] Male

[ ] Female

[ ] Single

[ ] Married
104

1.Are you interested in taking up any Life Insurance Policy?

[ ] Yes

[ ] No

a) If yes, state the reason for taking up Life Insurance

Companies?
[ ] Savings

[ ] Life Coverage

[ ] Tax Benefits
[ ] Performance of Fund

[ ] Brand Image

[ ] Better Service

2) Do you know about Insurance companies?

[ ] Yes

[ ] No

a) If yes, what is the mode?

[ ] Friends

[ ] Agents

[]

[ ] Websites

[]

Newspapers
[ ] TV
Others
3) Do you know about the following Life Insurance Companies?
S.
No
1

Name of the Companies

LIC
105

Yes

No

3
4

ICICI Prudential Life

Insurance
Max New York Life
Insurance
HDFC Standard Life
Insurance

SBI Life Insurance

Birla Sun Life Insurance

Reliance Life Insurance

Bajaj Allianz Life Insurance

4) Do you feel insurance is a best investment for your life?

[ ] Yes

[ ] No

5) What is your Monthly Income?

[ ] Less than 10,000

[ ] 10,001 20,000

[ ] 20,001 30,000
[ ] 30,001 50,000

[ ] More than 50,000

106

6) What is your Monthly Expenses for your family?

[ ] Less than 10,000

[ ] 10,001 25,000

[ ] 25,001 50,000
[ ] 50,001 75,000

7)

[ ] More than 75,000

What amount of money you expect for childrens higher education

(College)?
[ ] Less than 1,00,000

[ ] 1,00,001 3,00,000

[]

3,00,001 5,00,000
[ ] 5,00,001 10,00,000

[ ] More than 10,00,000

8 What amount of money that will be require for your childrens marriage?
[ ] Less than 5, 00,000

[ ] 5,00,001 10,00,000

10,00,001 15,00,000
[ ] 15,00,001 20,00,000

[ ] More than 20,00,000

9) What amount of money that will be require to fulfill your dream?

[ ] Less than 10,00,000

[ ] 10,00,001 25,00,000

25,00,001 35,00,000
[ ] 35,00,001 50,00,000

[ ] More than 50,00,000

107

10) What amounts of money require to satisfy your needs after retirement
(Monthly)?
[ ] Less than 10,000

[ ] 10,001 25,000

[ ] 25,001

50,000
[ ] 50,001 75,000

[ ] More than 75,000

11) Whether you have any medical Insurance?

[ ] Yes

[ ] No

12)What amount you propose to take care of Medical Emergency

for your family?
[ ] Less than 5,000

[ ] 5,001 15,000

15,001 30,000
[ ] 30,001 50,000

[ ] More than 50,000

13) What are the avenues of Investment, you like to invest?

S.
No.

Areas

Banks

Yes

No

108

[]

Lands

Insurance

Govt.
Bonds

Share
Market

Gold

Post
Office

14) How much Investment you made till now?

[ ] Less than 1,00,000

[ ] 1,00,001 3,00,000

[ ] 3,00,001 5,00,000
[ ] 5,00,001 10,00,000

[ ] More than 10,00,000

15) Have you taken any Insurance policy?

[ ] Yes

[ ] No

If yes, answer the following Question:

a) Which of the following Insurance you taken the life
Insurance plan?

109

[ ] LIC

[ ] HDFC SLI

[]

MAX New York

[ ] Reliance

[ ] Birla Sun Life

[ ] ICICI Prudential
[ ] Others

16)How much you like to save per month for your family apart
from your personal (or) day to day expenses?
[ ] Less than 5000

[ ] 5,001 10,000

[]

10,001 25,000
[ ] 25,001 50,000

[ ] More than 50,000

17)Do you aware of services offered by the various Insurance

Companies
[ ] Yes

[ ] No

If Yes, Please Tick the following:

Services

Whole
Life
Servic
Companies es

Endowm
ent Plan

Mone
y
Back
Plan

LIC
110

Chil
d
Plan

Healt
h
Plan

Pensi
on
Plan

Unit
Linke
d
Plans

HDFC
Max New
York Life
Birla Sun
Life
Reliance
ICICI
Prudentia
l

18)Indicate the Level of Satisfaction about the Life Insurance

Products offered by various Insurance Companies?

a. LIC

Products

Highly
Satisfi
ed

Satisfied
(4)

(5)

Neither
Satisfied
Nor
Dissatisfi
ed
(3)

Whole Life
Plan
Child Plan
Health Plan
Pension
Plan
111

Dissatisfi
ed
(2)

Highly
Dissatisfi
ed
(1)

Growth Plan
(ULIP)

b. Max New York Life

Products

Highly
Satisfi
ed

Satisfied
(4)

(5)

Neither
Satisfied
Nor
Dissatisfi
ed

Dissatisfi
ed
(2)

Highly
Dissatisfi
ed
(1)

(3)
Whole Life
Plan
Child Plan
Health Plan
Pension
Plan
Growth
Plan (ULIP)

c. HDFC

Products

Highly
Satisfi
ed

Satisfied
(4)

(5)

Neither
Satisfied
Nor
Dissatisfi
ed
(3)

Whole Life
Plan

112

Dissatisfi
ed
(2)

Highly
Dissatisfi
ed
(1)

Child Plan
Health Plan
Pension
Plan
Growth
Plan (ULIP)

d. ICICI

Products

Highly
Satisfi
ed

Satisfied
(4)

(5)

Neither
Satisfied
Nor
Dissatisfi
ed
(3)

Whole Life
Plan
Child Plan
Health Plan
Pension
Plan

113

Dissatisfi
ed
(2)

Highly
Dissatisfi
ed
(1)

Growth
Plan (ULIP)

e. Others

Products

Highly
Satisfi
ed

Satisfied
(4)

(5)

Neither
Satisfied
Nor
Dissatisfi
ed

Dissatisfi
ed

Highly
Dissatisfi
ed

(2)

(3)
Whole Life
Plan
Child Plan
Health Plan
Pension
Plan
Growth
Plan (ULIP)

19)Did you like to take insurance policy in Max New York Life
Insurance?

[ ] Yes

[ ] No

114

(1)

20) Which of the following tenure you like to inverts in Life

insurance ?
[ ] Less than 5 years

[ ] 5- 10 years

[ ] 10-15

years
[ ] 15 20 years

[ ] More than 20

years

21) Suggestions if any:

115

116