Aswin Full

A study on peoples perception towards Insurance Project Report 2006
INTRODUCTION TO THE STUDY
The study was a modest attempt to understand the people’s perception towards
insurance by ICICI Prudential Life Insurance in Kollam District. ICICI prudential Life is the
second largest life insurance company in the country.
The study was conducted in the form of survey in around 150 peoples in various
parts of Kollam District. . Many banking sectors and other financial institutions have set up
insurance services that specialize to some degree in various style of money planning. Most
of the peoples have savings but they are not aware about insurance benefits and its various
schemes
This report consists of techniques and methodology used analysis, findings,

suggestions and constraints for the study that will help in improving the service being
offered by the company.
INTRODUCTION TO INDIAN INSURANCE INDUSTRY
Boasting of the largest number of operational life insurance policies in the world, the
Indian insurance industry has emerged as serious destination in the global insurance market.
Until 1999, the business of insurance in India was the exclusive privilege of two states -
owned corporations – the Life Insurance Corporation of India (LIC) and the General
Insurance Corporation (GIC).
The government of India took a major step towards liberalization of this industry in
March 2000 and brought into effect of the Insurance Regulatory Development Authority
Act (IRDA Act). The IRDA Act opened the market by doing away with all entry – level
restrictions on private insurers. There after, it has been five years consistent growth.
Dept of management science MES College of

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While 80% of population remains without life insurance and some of the world’s
lowest health and non – life insurance cover levels, the potential of the words seventh
largest and second most populous country cannot be overlooked.
Prospective insurers have lot to gain from the, 312 million middle – class consumers
in India, who have financial ability to purchase insurance. With only 2.5% of the country
insurable population currently insured, the market still need to be tapped effectively.
INTRODUCTION TO THE 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. ICICI Prudential was amongst the first private sector
insurance companies to begin operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA).
The success of the company will be founded in its unflinching commitment to 5 core
values -- Integrity, Customer First, Boundary less, Ownership and Passion. Each of the
values describes what the company stands for, the qualities of our people and the way we
work.
We do believe that we are on the threshold of an exciting new opportunity, where we can
play a significant role in redefining and reshaping the sector. Given the quality of our
parentage and the commitment of our team, there are no limits to our growth.
RELEVANCE OF THE STUDY
The study has been made with the intention to analyze the “perception of public
towards insurance policies”.

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Many may not be aware that the life insurance industry of India is as old as it is in
any other part of the world The Malhotra Committee recommended throwing open the
sector to private Players to usher competition and bring more choice to the consumer.
In India about 200 million middle class households, presents a huge untapped
potential for players in the insurance industry Saturation of markets in many developed
economies has made the Indian market even more attractive for global insurance majors
with the per capita income in India expected to grow at over 6% for the next 10 years and
with improvement in awareness levels, the demand for insurance is expected to grow at an
attractive rate in India.
The Monitor Group has estimated that the life insurance market will grow from
Rs.218 billion in 1998 to Rs. 1003 billion by 2008 (a compounded annual growth of
16.5%). Life insurance companies focusing on rural markets have adopted innovative means
of distribution.
Instead of appointing agents as is done typically, they have used innovative methods
to promoted life insurance and appoints sales executives to act as their sales arm. This
enabled them to tap into their special knowledge. India has the highest number of life
insurance policies in force in the world. This makes me to think about doing the project in
Financial Marketing sector especially in Insurance, in my study I wish to find out these facts
regarding money for the security purpose.
NEED OF THE STUDY

The study was held at ICICI Prudential Life Insurance, Kollam to know the
perception of people towards insurance. This study helps the researcher to know the overall
view of insurance in people
ICICI Prudential Life Insurance provides various types of insurance products and
services. The company wishes to expand their business and their services for increasing
sales. Most of the peoples have savings but they are not aware about insurance benefits and
its various schemes. So the researcher’s intention is to find out remedies for creating better

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sales. This research analyzes the perceptions and preferences of the public which helps them
to gain competitive advantage over their competitors.
OBJECTIVES OF THE STUDY
• To study the perception of public towards insurance policies in Kollam District.

• To study the investment policies of the people in Kollam District.
• To understand the value for investment in future.
• To identify how many people are aware about insurance and investment.
• To provide suggestion to the company.
LIMITATIONS OF THE STUDY
• The present study is based on the data’s collected from Kollam so its results may not
be applicable to other areas.
• Convenience sampling was used so all the limitations pertaining to this may also
became a part in the findings of this study.
• At times the question had to be explained to the respondents due to their ignorance
that could have influenced their views.
• The time span was the another constraint, for the preparation of the questionnaire lot
of study and consultation were required, so that it could be presented in such a way
that could be acceptable to the respondent.

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INSURANCE SECTOR
The insurance industry worldwide faces challenges in terms of acts of terrorism,

hardening of reinsurance rates and changing global risk architecture. The opening up of the
Insurance sector to private players has led to the introduction of a number of new products
and the Indian market is one of the fastest growing insurance markets.
Insurance business in India is growing at the rate of 15-20%annually and IRDA

has estimated that it is currently of the order of Rs.812.50 cr.5 when combined with banking
services, it adds about 7% of the country’s GDP.Insurance penetration (i.e., Premiums as
percentage of GDP) has increased from 2032% in 2000 to 2.88% in 2003. Like wise,
insurance density (i.e., premium per capita) has increased from Rs.435.897 in 2000 to
Rs.722.092 in (2003)
In line with the economic reforms that were ushered in India in early nineties, the
Government set up a Committee on Reforms (popularly called The Malhotra Committee)
in April 1993 to suggest reforms in the insurance sector. The Committee recommended
throwing open the sector to private player to usher in competition and bring more choice to
the consumer. The objective was to improve the penetration of insurance as a percentage of
GDP, which remains low in India even compared to some developing countries in Asia.
Reforms were initiated with the passage of Insurance Regulatory and Development
Authority (IRDA) Bill in1999. IRDA was set up as independent regulatory authority, which
has put in place regulations in line with global norms.

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The state-owned life insurer-LIC, along with 13 private players, mopped up Rs.
65.22 bn in premium in the first four months of this fiscal by selling about 62lakh new
policies. And 55lakh new policies have been sold by LIC alone which helped it to make an
8.74% rise in premium income at Rs.49.7 bn during April-July, this fiscal.
The entry of many of the global insurance into the Indian market is the form of
joint ventures with Indian companies. Some of the key names are Prudential, AIG, New
York Life, Allianz, Standard life, Sun Life Canada and Old Mutual.
The entry of new players has rejuvenated the erstwhile monopoly player LIC, which has
responded to the competition in an admirable fashion by launching new products and
improving service standards.
The new life insurance companies are concentrating on term life policies in the
hope that this will be their main stream of business. Private players have an average policy
size of Rs.1, 15877,000. The 13 private players have increased their market share to 23.81%
from 17.28% in 2004. In the fore front is ICICI Prudential with a market share of 7.12%
marketing a 49% growth in business at Rs. 4.64bn.Then comes, BajajAllianz, HDFC
Standard, Tata AIG, Birla Sunlife, Max New York and Aviva.
The following are the key winds of change brought about by privatization.
Market expansion: There has been an overall expansion in the market. This has been
possible due to improved awareness levels thanks to the large number of advertising
campaigns launched by all the players. The scope for expansion is till unlimited as virtually
all the players are concentrating on large cities and towns-expect by LIC to an extent there
was no significant attempt to tap the rural markets.

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New Product Offerings: There has been a plethora of new and innovative product offered
by the new players, mainly from the stable of their international partners. Customers have
tremendous choice from a large variety of products from pure term (risk) insurance to unit-
linked investment products. Customers are offered unbundled products with a variety of
benefits as riders from which they can choose. More customers are buying products and
services based on their true needs and not just traditional money back policies, which is not
considered very appropriate for long-term protection and savings. However, there are till
some key new products yet to be introduced –e.g. health products.
Customer Service: Not unexpectedly, this was one area that witnessed the most significant
change with the entry of new players.
There is an attempt to bring in international best practices in service and operational

efficiency through use of latest technologies. Advice and need based selling is emerging
through much better trained sales force and advisors. There is improvement in response and
turnaround times in specific areas such as delivery of policy receipt, policy document,
premium notice, final maturity payment, settlement of claims etc. However, there is a long
way to go and various customer surveys indicate that the standards are still below customer
expectation levels.
Channels of Distribution: Till four years back, the only mode of distribution of life
insurance products was through Agents. While agents continue to be the predominant
distribution channel, today a number of innovative alternative channels are being offered to
consumers. Some of them are banc assurance, brokers, the internet and direct marketing.
Through it is too early to predict, the wide spread of bank branch network in India
could lead to banc assurance emerging as a significant distribution mechanism. The low
penetration can be explained in terms of non-emphasis on customer awareness, training
issues of agent and a low tax base. An increased penetration of the insurance market is
possible due to emerging socio economic changes, education and awareness of insurance

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needs. The industry is set to emerge independents of the normal driving factor of being
driven by tax incentives for growth. The entry of new players would increase the insurance
density (premium per capita) and the insurance penetration (expenditure for insurance
services expressed as a percentage of income). The regulations pertaining to brokers and
corporate agents are expected to result in the spread of the level of insurance penetration in
India.
Indian customers perceive value in tax benefit and saving whereas world wide,
insurance is used as a risk cover instrument. For most insurers today, customer service
occupies the highest priority. Some insurers have also taken up customer relationship
management projects for their customer service centers. With the Insurance industry
emerging as a buyer’s market, providing quality customer service is crucial and IT would
play a vital role in doing this.
The heavy capital investment in terms of the distribution networks, hiring of agents
and the long gestation periods of 7-10 years provide entry barriers for the industry.
The key industry drivers are related to lifestyle issues in terms of perceiving
insurance as a savings instrument rather than for risk cover, need based selling, quality of
service and customer awareness.
The future growth areas could be term assurance, pension and health insurance. In
terms of the distribution channels, there is tremendous opportunity with banks and finance
companies and by making the channel IT driven. With increased commoditization of
insurance products, brand building is going to play a vital role.
A brief history of the Insurance sector
The business of life insurance in India in its existing from started in India in the year
1818 with the establishment of the Oriental life Insurance Company in Calcutta.

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Some of the important milestones in the life insurance business in India are:
• 1912: The Indian Life Assurance Companies Act enacted as the first statute
to regulate the life insurance business.
• 1928: The Indian Insurance Companies Act enacted to enable the
government to collect statistical information about both life and non-life
insurance business.
• 1938: Earlier legislation consolidated and amended to by the Insurance Act
with the objective of protecting the interest of the insuring public.
• 1956:245Indian and foreign insurers and provident societies taken over by
the central government and nationalized. LIC formed by an Act of
Parliament, viz. LIC Act,
• 1956, with a capital contribution of Rs.5crore from the Government of India.
The General insurance business in India, on the hand, can trace its roots to the Triton
Insurance Company Ltd., the first general insurance company established in the years 1850
in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
• 1907: The Indian Mercantile Insurance Ltd .set up, the first company to
transact all classes of general insurance business.
• 1957: General Insurance Council, a wing of the Insurance Associations of

India, fames a code of conduct for ensuring fair conduct and sound business
practices.
• 1968: The Insuring Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.

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• 1972: The General Insurance Business (Nationalization) Act, 1972

nationalized 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 Insures Company Ltd. GIC incorporated as a company.
The Malhotra committee was set up with the objective of complementing the
reforms initiated in the financial sector. The reforms were aimed at “creating a more
efficient and competitive financial system suitable for the requirements of the economy
keeping in mind the structural changes currently and recognizing that insurance is an
important part of the overall financial system where it was necessary to address the need for
similar reforms…”In 1994, the committee submitted the report and some of the key
recommendations Included:
i) Structure
• Government stake in the insurance Companies to be brought down to 50%
• Government should take over the holdings of GIC and its subsidiaries so that
these Subsidiaries can act as independent corporations
• All the insurance companies should be give grater freedom to operate
ii) Competition
• Private Companies with a minimum paid up capital of Rs.Ibn should be
allowed to enter the industry
• No Company should deal in both Life and General Insurance through a

single entity

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• Foreign companies may be allowed to enter the industry in collaboration

with the domestic companies
• Postal life Insurance should be allowed to operate in the rural market
• Only one State Level Life Insurance Company should be allowed to operate
in each state.
iii) Regulatory Body

• The Insurance Act should be changed
• An Insurance Regulatory body should be set up
• Controller of Insurance (Currently a part from the Finance Ministry) should
be made independent
iv)Investment
• Mandatory Investments of LIC Life fund in government securities to be
reduced From 75%to50%
• GIC and its subsidiaries are not to hold more than 5% in any company (there
Current holdings to brought down to this level over a period of time).
v) Customer Service
• LIC should pay interest on delays on delays in payments beyond 30days
• Insurance companies must be encouraged to set up unit linked pension plans
• Computerization of operations and updating of technology to be carried out
in the Insurance industry
The committee emphasized that in order to improve the customer services and
increase the coverage of the insurance industry should be opened up to competition. But at
the same time, the committee felt the need to exercise caution as any failure on the part of
new players could ruin the public confidence in the industry.

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Hence, it was decided to allow competition in a limited way by stipulated the

minimum capital requirement of Rs.100 crores. The committee felt the need to provided
greater autonomy to insurance companies in order to improve their performance and enable
them to act as independent companies with economic motives. For this purpose, it had
proposed setting up an independents regulators body.
The Insurance Regulatory and Development Authority (IRDA)
In 1999, the IRDS was set up under the IRDA Act. Companies, aspiring to carry on
insurance and reinsurance business in India, are required with IRDA, which is the sole
authority for granting license to agents. There is neither a restriction on the license numbers
that may be granted nor a system of composite license for life and non-life insurance
companies in India. Insurance companies are strictly forbidden from dealing with products
beyond their scope of license. This implies that, a life insurance company can not sell non-
life insurance and vice versa. Insurance agents are, however, allowed to sell both life and
non-life products (composite insurance).
In tune with the Indian government’s system of checks and balance imposed through
sector specific Foreign Direct Investment (FDI) IRDA prohibits 100% foreign ownership of
an Indian insurance company.
An Indian promoter is required to invest either wholly or team up with a foreign

insure, which can own no more than 26% of the shares in any new venture. The Indian
promoter must then sell the majority of his shares to the Indian public through a public
offering after 10 years and retain only up to 26% of the shares that is, the same percentage
as that of the foreign investor.
IRDA careful in granting licenses and has set up strict standards for all aspects of
insurance in India. With the limit on FDI in the sector, the government ensures that state run
agencies such as the LIC and GIC can maintain their prominence.

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In June 2003, the law Commission prepared a paper identifying 13 potential grounds
of revision to the Insurance Act and the IRDA Act including merger of relevant provisions
of the two acts, as well as harmonization of the Insurance Act with other rules and
regulations in the sector. The finance ministry is already working towards comprehensive
amendments to the Insurance Act and the IRDA Act, which will further simplify procedural
issues. A major indication of the government’s efforts to invite Private Indian and foreign
insures to invest in the liberalized market is the FDI cap hike announced by the finance
ministry in 2004. These changes, however, require formal amendments to the IRDA Act,
which are still to be adopted.

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THE 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. ICICI Prudential was amongst the first private
sector insurance companies to begin operations in December 2000 after receiving approval
from Insurance Regulatory Development Authority (IRDA).
ICICI Prudential's equity base stands at Rs. 11.85 billion with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. In the financial year ended March
31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum
assured of Rs 13,780 crore and wrote nearly 615,000 policies. The company has a network
of about 56,000 advisors; as well as 7 bancassurance and 150 corporate agent tie-ups. For
the past four years, ICICI Prudential has retained its position as the No. 1 private life
insurer in the country, with a wide range of flexible products that meet the needs of the
Indian customer at every step in life.
Vision:
To make ICICI Prudential the dominant Life and Pensions player built on trust by
world-class people and service.
This we hope to achieve by:
• Understanding the needs of customers and offering them superior products and
service
• Leveraging technology to service customers quickly, efficiently and conveniently
• Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to our policyholders
• Providing an enabling environment to foster growth and learning for our employees
• And above all, building transparency in all our dealings.

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PRODUCTS
Insurance Solutions for Individuals
ICICI Prudential Life Insurance offers a range of innovative, customer-centric

products that meet the needs of customers at every life stage. Its products can be enhanced
with up to 4 riders, to create a customized solution for each policyholder.
Savings & Wealth Creation Solutions
 CashPlus is a transparent, feature-packed savings plan that offers 3 levels of

protection as well as liquidity options.
 Save’n’Protect is a traditional endowment savings plan that offers life protection
along with adequate returns.
 CashBak is an anticipated endowment policy ideal for meeting milestone expenses
like a child’s marriage, expenses for a child’s higher education or purchase of an
asset. It is available for terms of 15 and 20 years.
 LifeTime Super & LifeTime Plus are unit-linked plans that offer customers the
flexibility and control to customize the policy to meet the changing needs at
different life stages. Each offer 4 fund options? Preserver, Protector, Balancer and
Maximiser.
 LifeLink Super is a single premium unit linked insurance Plan which combines life
insurance cover with the opportunity to stay invested in the stock market.
 Premier Life Gold is a limited premium paying plan specially structured for long-
term wealth creation.
 InvestShield Life New is a unit linked plan that provides premium guarantee on the
invested premiums and ensures that the customer receives only the benefits of fund
appreciation without any of the risks of depreciation.

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 InvestShield Cashbak is a unit linked plan that provides premium guarantee on the
invested premiums along with flexible liquidity options.
Protection Solutions
 LifeGuard is a protection plan, which offers life cover at very low cost. It is
available in 3 options? level term assurance, level term assurance with return of
premium and single premium.
 HomeAssure is a mortgage reducing term assurance plan designed specifically to
help customers cover their home loans in a simple and cost-effective manner.
Child Plans
Education insurance under the SmartKid brand provides guaranteed educational

benefits to a child along with life insurance cover for the parent who purchases the policy.
The policy is designed to provide money at important milestones in the child’s life.
SmartKid plans are also available in unit-linked form? Both single premium and regular
premium
Retirement Solutions
 ForeverLife is a traditional retirement product that offers guaranteed returns for the
first 4 years and then declares bonuses annually.
 LifeTime Super Pension is a regular premium unit linked pension plan that helps
one accumulate over the long term and offers an annuity option (guaranteed income
for life) at the time of retirement.
 LifeLink Super Pension is a single premium unit linked pension plan.
Health Solution

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 Health Assure and Health Assure Plus: Health Assure is a regular premium plan
which provides long term cover against 6 critical illnesses by providing policyholder
with financial assistance, irrespective of the actual medical expenses. Health Assure
Plus offers the added advantage of an equivalent life insurance cover
 Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as
well as at different stages in the treatment of various cancer conditions.
Group Insurance Solutions
ICICI Prudential also offers Group Insurance Solutions for companies seeking to
enhance benefits to their employees.
 Group Gratuity Plan: ICICI Pru’s group gratuity plan helps employers fund their
statutory gratuity obligation in a scientific manner. The plan can also be customized
to structure schemes that can provide benefits beyond the statutory obligations.
 Group Superannuation Plan: ICICI Pru offers both defined contribution (DC) and
defined benefit (DB) superannuation schemes to optimize returns for the members of
the trust and rationalize the cost. Members have the option of choosing from various
annuity options or opting for a partial commutation of the annuity at the time of
retirement.
 Group Immediate Annuities: In addition to the annuities offered to existing
superannuation customers, we offer immediate annuities to superannuation funds not
managed by us.
 Group Term Plan: ICICI Pru’s flexible group term solution helps provide
affordable cover to members of a group. The cover could be uniform or based on
designation/rank or a multiple of salary. The benefit under the policy is paid to the
beneficiary nominated by the member on his/her death.
Flexible Rider Options
ICICI Pru Life offers flexible riders, which can be added to the basic policy at a
marginal cost, depending on the specific needs of the customer.

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Accident & disability benefit: If death occurs as the result of an accident during the term
of the policy, the beneficiary receives an additional amount equal to the rider sum assured
under the policy. If the death occurs while traveling in an authorized mass transport vehicle,
the beneficiary will be entitled to twice the sum assured as additional benefits.
 Critical Illness Benefit: protects the insured against financial loss in the event
of 9 specified critical illnesses. Benefits are payable to the insured for medical
expenses prior to death.
 Income Benefit: This rider pays the 10% of the sum assured to the nominee
every year, till maturity, in the event of the death of the life assured. It is
available on SmarKid and CashPlus
 Waiver of Premium: In case of total and permanent disability due to an
accident, the future premiums continue to be paid by the company till the time of
maturity. This rider is available with LifeTime Super, LifeTime Super Pension
and CashPlus.
ABOUT THE PROMOTERS
ICICI Bank
ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector
bank with over 50 years of financial experience and with assets of Rs. 1812.27 billion as on
30th June, 2005. ICICI Bank offers a wide range of banking products and financial services
to corporate and retail customers through a variety of delivery channels and through its
specialized subsidiaries and affiliates in the areas of investment banking, life and non-life
insurance, venture capital and asset management. ICICI Bank is a leading player in the retail
banking market and has over 13 million retail customer accounts. The Bank has a network
of over 570 branches and extension counters, and 2,000 ATMs.
Prudentialplc

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Established in London in 1848, Prudential plc, through its businesses in the UK and
Europe, the US and Asia, provides retail financial services products and services to more
than 16 million customers, policyholders and unit holders worldwide. As of June 30, 2004,
the company had over US$300 billion in funds under management.
Prudential has brought to market an integrated range of financial services products

that now includes life assurance, pensions, mutual funds, banking, investment management
and general insurance.
In Asia, Prudential is the leading European life insurance company with a vast
network of 24 life and mutual fund operations in twelve countries - China, Hong Kong,
India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and
Vietnam.
Indian Insurance Industry Forecast (2007-2009)
The market research report “Indian Insurance Industry Forecast (2007-2009)” by

RNCOS gives an in-depth analysis of the present and future of the Indian Insurance
Industry. The market research report looks in to the details as well as gives an overview of
the Indian insurance market with focus on the performance of the key players.
With the initiation of the deregulation in the Indian insurance market, the
monopoly of big public sector companies in life insurance as well as general (non-life
insurance) market has been broken. New private players have entered the market and with
their innovative approaches and better use of distribution channels and technology, they are
eating in to the shares of established public sector companies in Indian Insurance Market.
Since the deregulation has been put in to place, the market share of LIC has come
down to 71.4% in life insurance market while the private players have captured around 17%
market in the general insurance segment having said that, public sector insurance companies

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such as LIC and New India Assurance are registered impressive double-digit growths,
which reflects on the overall health of the Indian insurance sector.
This report includes the key private players in the insurance market such as ICICI
Prudential, Bajaj Allianz, Birla Sun life, ICICI Lombard and TATA AIG. It also includes
the leading competitors in the life insurance and general insurance segments along with
their market shares.
Key Highlights and scope of the RNCOS "Indian Insurance Industry Forecast (2007-
2009)" Report:
§ Global insurance industry scenario
§ Indian insurance industry in global perspective
§ Analysis of market performance of key players with charts and graphs, forecast and
opportunity and challenges faced by the players in Indian insurance industry
§ Recent trends and developments in insurance market in India.
§ Key driving forces in Indian insurance industry
Report features:
The report “Indian Insurance Industry Forecast (2007-2009)” by RNCOS gives an

insight in to the emerging trends and the future forecasts. There are different aspects that
this report discusses in detail. Chapter 1 covers the global insurance industry scenario.
Chapter 2 puts India in perspective with the global standards in world insurance industry.
Chapter 2 also discusses the Indian insurance industry in historical perspective so as to set
the tone for the present analysis. Chapter 3 discusses the market segments and the product
segments in the Indian insurance industry. It also analyses the current market performance
of the insurance industry. Chapter 4 and 5 discusses the future forecast and Regulatory
framework for Indian Insurance Industry. Discussion of the major driving forces, emerging
trends and developments and key challenges is given in chapter 6, 7 and 8 respectively and

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finally the chapter 9 gives detailed information about the key players in Indian insurance
industry.

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PERCEPTION
Perception is a cognitive process of seeing, receiving, selecting, organizing,

interpreting and giving meaning to the environment around us.
According to Stephen p. Robins Perception as “a process by which
individuals organize and interpret their sensory impressions in order to give meaning to
their environment”
Two types of factors influence an individual’s perception. The internal
factors include individual’s needs and desires, personality, experience, etc. External factors
relate to what is to be perceived and situation. These are size, intensity, frequency, status,
etc.
Perception being a cognitive process is susceptible to distortions.
Nonetheless, attempts made to perceive oneself accurately, improve self-concept, be
empathetic, have positive attitudes avoid the common perpetual distortions and
communicate openly help improve ones perpetual ability.
INSURANCE
Insurance is a contact between two parties whereby one party called insurer
undertakes in exchange for a fixed sum called premiums, to pay the other party called
insured a fixed amount of money on the occurrence of a certain event.
Insurance provides protection against financial loss that could arise due to
the occurrence of an unexpected event. The loss to the insurer is paid from the premiums
collected from him and other insurer by the insurance company.
Insurance has been classified into:
 Life Insurance
Begun in 1818, with the establishment of the Oriental Life insurance

Company in Calcutta the business of life insurance in India has come along way. The most

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popular products in this sector are ‘Endowment’ and ‘Money Back’ policies. More than
80% of the Indian life insurance business comes from these two products.
The major Players in the field include:
* Birla sun Life Insurance Co.Ltd. * DaburCCU Life Insurance Company

Pvt.Ltd.
* Bajaj Allianz Life insurance Co.Ltd. * ICICI Prudential Life Insurance
Co.Ltd.
* MetLife India Insurance Co.Pvt.Ltd. * ING Vysya Life Insurance
Co.Pvt.Ltd.
* Life Insurance Corporation of India * Max New York Life Insurance
Co.Ltd.
* Om Kotak Mahindra Life insurance Co.Ltd. * SBI Life Insurance Co.Ltd.
* HDFC Standard Life Insurance Co.Ltd. * Tata AIG Life Insurance Co.Ltd.
* Reliance Life Insurance Co.Ltd
 General Insurance or Non-Life insurance
The non-life sector primarily consists of fire and miscellaneous risk insurance
policies. Also, since motor vehicle cover is compulsory in India, it acts as another chief
source of business in the non-life sector.
Major players in the non-life sector in India include:
• Allianz Bajaj General insurance Co.Ltd.
• ICICI Lombard General Insurance
• IFFCO Tokyo General Insurance
• Reliance General Insurance
• Royal Sundaram Alliance Insurance

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The government of India has made certain insurance contracts compulsory buy
legislation such as the Motor Vehicles Act and the Environmental Protection Act. Insurance
in India is provided through Public Sector Insurance Companies such as the Life Insurance
Corporation of India (LIC), the General Insurance Corporation of India and its four
subsidiaries, National Insurance Company, New India Assurance Company, Oriental
Insurance Company and United India Insurance Company. The passage of the IRDA Bill in
1999 has enabled private sector to carry out insurance business.
Life Insurance
Life insurance can be divided into two categories depending on the

requirement of the insurer. The first category is determined on the basis of premium paying
tenure and payment of maturity proceeded while the other is on the of target audience.
Insurance determined on the basis of premium paying tenure and payment of
maturity proceeds can be categorized into
• Whole Life Assurance Plans
• Term Assurance Plans
• Annuities
* Whole Life Assurance Plan
Whole life insurance policies provide insurance cover to an insured person during
his lifetime but the benefits pass on to the nominees. This policy can be availed in the form
of limited term payment or whole life payment or through a single premium payment. It is a
low cost insurance option and offers good value to the policyholders. A variant of this
policy is the limited premium payment term policy that provides the assured person to pay

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premium during his years and enjoy the cover thereafter. Single premium and double
premium are the new variants of limited period whole life plans.
* Endowment Plans
Since the Person paying premium in Whole Life Plan could never benefit from the
proceeds of the policy, endowment type policy plans were introduced. These policies
provide both an insurance cover and serve as a saving tool. Insurance cover is provided over
the period for which the premium is paid. This, not only provides benefits to the insure but
also provides insurance cover over the specified time period.
With the lapse of the policy period, the insurer is refunded the amount assured along
with any bonus, if the policy is a with-profits plan. To overcome the drawback of
endowment plans that required premium s to be paid for long periods, Money Back Plan
were introduced. The survivor in this case is provided the benefits paid at regular intervals
at the end of each assurance period.
* Annuity Plans
These are assurance plans that provide specific sums at regular intervals during the
lifetime of the insurer. Annuity plans are targeted to those persons, who after retirement do
not have a regular source of income. The annuity holder pays a lump sum to the annuity
provider and can avail fixed or rising annuity that increases every year depending on interest
or inflation rates. There are a few annuity options that work in combination with an
insurance plan, mainly with endowment type plans. Typically, annuity plans do not return
the seed capital back to persons or nominees purchasing the annuity. Annuity can either be
perpetual or for a fixed time period.

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GENARAL INSURANCE
General insurance has been divided into:
 Fire Insurance
 Marine Insurance
 Miscellaneous (Accident) Insurance
General insurance has also been classified into:
a) Insurance of Person
b) Insurance of Property
c) Insurance of Interest
d) Insurance of Liability
• Insurance of Person: This type of insurance involves personal accident
insurance and personal accident and sickness insurance.
• Insurance of Property: Product s including motor vehicles, aircraft,
steamers, cycles, furniture, fittings, jewelry, household item, machinery,
goods in transit, stocks of business men etc.can be categorized under the
head, “property” and are eligible for fire insurance, marine hull insurance,
marine hull insurance, marine cargo insurance, engineering insurance, crop
insurance and aviation insurance.
• Insurance of Interest: Insurance of interest generally involves fidelity
guarantee insurance and guarantee insurance.

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• Insurance of Liability: These of liabilities include third party insurance
liability insurance and professional indemnities.
Literature review
POSITIONING OF INSURANCE
Needs-based Positioning
This is the most commonly understood positioning and based on the differing needs
of different group of consumers. This can be done successfully is a company has unique
strengths to service a group of customer need better than others.
Access-based Positioning
Positioning of customers can also be done by the way they are accessible. That is
different groups of customers may be accessible in different ways even though they may
have similar needs. Access is typically a function of customer geography or customer scale.
• Assure security and growth based positioning
• Safety and security based positioning
• For children’s education and marriage positioning
The business of insurance is related to the protection of the economic value of
assets. Every asset has a value. The owner of the assets may suffer a huge loss in case the

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asset is lost or damaged because of an uncertain event. Insurance is aimed at compensating
the financial loss suffered on the happening of an insured event. Insurance cannot prevent
the happening of the event; however it can protect a person from the financial losses he may
suffer after the happening of the event.
The insurance is broadly classified as,
a) Life Insurance
b) Non-life insurance or General Insurance.
LIFE INSURANCE
Life insurance is a contract that pledges payment of an amount to the person assured
(or his nominee) on the happening of the event insured against.
The contract is valid for payment of the insured amount during:
• The date of maturity, or

• Specified dates at periodic intervals, or
• Unfortunate death, if it occurs earlier.
J Rajesh C Jampala and B Venkiteswara Rao( insurance marketing ,April 2005)

in his article “Sales promotion in Insurance sector (A study of LIC) asserts that, sales
promotion helps in maximizing sales volume and value besides keeping competitors at bay.
Sales promotion is generally broken into 3 major categories such as consumer oriented,
trade oriented and sales force oriented activities.
The consumer oriented promotions are a part of the promotional pull strategy. These
promotions include tax benefits, payment of bonus, provision of accidental benefits and

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higher non medical limits. Tax benefit is one of the major weapons in the arsenal of
strategies at the disposal of the corporation to promote sales. The tax saving measure is the
greatest mobilize for business for the corporation. Even the Indian consumer has
traditionally looked at life insurance as an instrument for tax saving, rather than as a prudent
investment decision, or even as a protection device. Another important consumer oriented
promotion of LIC is provision of accident and disability benefits offered to the insured.
Trade promotional measures of LIC include salary saving scheme besides bringing
more occupations under insurance cover, including hazardous occupations. Salary saving
scheme is a very successful trade promotion strategy launched by the corporation to tap
business from the salaried class. LIC makes an arrangement with the employer to deduct the
insurance premium from the employee’s salary and remit it to the corporation. The basic
advantage that the corporation waives 5% additional charge on the scheme, resulting in a
great benefit to the policy holders.
Sales force promotions offer incentives to agents to work with more and more vigor.
Sales force promotion steps of the LIC include commission, gifts, advances for the purchase
of the cars, club memberships etc. LIC has instituted a system of club membership for its
agents. The club membership also enjoys certain privileges such as telephone, provision of
stationery, secretarial allowance, concessional loans etc. However sales promotion alone
cannot achieve the results for the corporation.
(Source: Insurance chronicle, The ICFAI University Press, April 2006)
Walter de Oude and Rajagopalan Krishnamurthy (health insurance, Feb 2006)

in their article “The health insurance industry in India & its growing potential” emphasis
that ensuring public health is the principal responsibility lay down by the Indian
constitution. The central government provides about 15% of the funding needs mostly for

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national health programs. The family planning and healthcare initiatives of the government
have so far effective in reducing birthrates and improving mortality rates. According to the
WHO report published in 2002 India ranked 13th from the bottom in terms of public
spending on health.
Although India’s public spending is low, overall health spending improved due to
higher private spending. Currently less than 15% of the Indian population has some kind of
health insurance cover.
Health insurance remains vastly underdeveloped in India. The state owned

companies had little focus upon the developing line of business on a systematic and
profitable basis. The health portfolio that had a loss ratio of about 78% in 2003 deteriorated
to 98% in the following year.
Anyway the Third Party Agreement (TPA) has however given rights to some tension
between the healthcare providers and the health insurance companies.
(Source: Insurance Chronicle The ICFAI University Press -Feb 2006)
Jack Burke (Insurance marketing, July 2004) in his article “CROSS

SELLING”emphasis that people depend on insurance agents or brokers for the selection of
and buying of policies related to life, health, automobiles etc. but it has been found that
most agents or brokers specialize in selling policies related only to particular field. The
statistics showed that the average American had 7.2 insurance policies i.e., selling more
than one policy to their client. This can be specified as cross selling or multiline marketing.
More policies per client mean lower acquisition cost, higher client retention and greater
profit.
(Source: Insurance chronicle The ICFAI University Press, July-2005)

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A.Srujan (Insurance marketing July 2004) in his article “Rural insurance market in
India” States that the growth in the insurance sector is higher than the GDP growth rate of
the country. A careful analysis of postal liberalization period suggest that new insurance
players made a good start while the existing one maintained consistent growth level. The
two segments of Indian insurance market i.e., Urban and Rural have their own characteristic
features. The economic growth of the two has not been the same. But there is a fact that
most of the new insurance companies started operating from metros and urban. So they got
more opportunity to cover by several types of insurance. Moreover due to the better
educational status they got awareness about several financial and insurance products. Still
there are many opportunities in rural insurance market.
Gigantic population, growth in income level of rural population, high saving habits
etc. are some plus areas and if we exploit these areas, there in a very good scope for the
growth. Government of India makes steps to improve the conditions of the rural area.
Janasree Bima Yojna, LALGI etc. are some examples. Government made a tie with LIC and
made several scheme for rural people like Siksha Sahayog Yojna, Krishi Shrimik Samajik
suraksha Yojna etc. Anyway it is the opportunities not compulsions which would drive the
old and new players to rural India and the outcome will be steady and secured economic
growth.
(Source: The ICFAI University Press, July-2004)
Rachana Parihar (Insurance marketing, july2004) in her article “Bancassurance:

challenges & opportunities in India” emphasis that Bancassurance symbolizes the
convergence of banking & insurance. The term involves distribution of insurance products
through a bank’s branch work. While the bancassurance has become a successful story in
Europe, it is relatively a new concept in Asia. The motive behind this also varies. For banks,
it is a means of product diversification & a source of additional fee income. Insurance
companies see it as a tool for increasing their market penetration and premium turnover.

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The customer sees it as a bonanza in terms of reduced price, high quality products and
delivery at the doorsteps. But, when we think
about India there is a huge pool of skilled professionals whether it is banks or insurance
companies who may be easily relocated for any bancassurance venture.
Most large retail banks engender a greater deal of trust in broad segments of
consumers, which they can leverage in selling them personal line insurance Products.
Another advantage banks have over traditional insurance distributors is the lower cost per
sales lead made possible by their sizable and loyal customer base. Banks also enjoy
significant brand awareness within their geographical regions. Banks proficiency in using
Technology has resulted in improvement in transaction processing and customer service.
But there are also some short comings. The most obstacles to success are the poor human
resource management, lack of sales culture within the bank, no involvements by the branch
manager, insufficient product promotions etc.
Anyway to move beyond products oriented cross selling to customer focused

crossed buying requires a holistic approach to bancassurance. Success of a bancassurance
requires change in approach, thinking and work culture on the part of everybody involved.
(Source: The ICFAI University Press, July-2004)
Brian D Baetz (Insurance marketing, July 2003) in his article “Term insurance
sales techniques” States that today people need term insurance more than ever, so one
should learn to be efficient in its sale. Term insurance enables even those people who could
otherwise not be able to afford a sufficient amount of life insurance, to ensure that their
family will not suffer financially should they die.

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He says that he point out to clients the importance of adequate coverage to protect
their families. If their income permits, he encourages them to make a coverage permanent
life insurance.
Scott Menta, ChFC,CFP,CLU, a Met Life agent from Elmsford,NYbelieves term
insurance will continue to be sold as a commodity unless the producer can demonstrate that
he /she delivers additional value . He works to help buyers understand the products
convertibility period, and the kinds of permanent products to which their term insurance can
be converted. He believes producers should recommend the appropriate amount of
coverage.
RESEARCH METHODOLOGY
Introduction:

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Research: - Research is defined as a careful, critical inquiry or examination in seeking

facts or principles; diligent investigation in order to ascertain something. Research is
essentially a systematic enquiry seeking facts through objective verifiable methods in order
to discover the relationship among them and to deduce from the board principles or laws. It
is really a method of critical thinking.
RESEARCH PROBLEM
The insurance industry is highly competitive in nature today. Many players are
finding through their customers for their different schemes. In this scenario, the companies
need to know what the customers ask for and their needs time to time. For this they are
doing regular researches and studies on the changing customer perceptions. This research
analyze the perceptions and preferences of the public which helps them to gain competitive
advantage over their competitors
RESEARCH DESIGN
Research Design: - A researcher attempting to conduct a study should necessarily prepare a
plan which will help him to attain his ultimate aim. This plan is the research design. It is a
plan for the collection and analysis of data. Research Design can be defined as the planned
sequence of the entire process involved in conducting a research study. In this project work,
the research design used is descriptive researcher
TYPE OF RESEARCH
Descriptive research:
This study follows descriptive research method. A descriptive study involves
formulating the objective of the study, defining the population and selecting the sample,
designing the methods of data collection and analysis of the data and results. Descriptive
studies aim at portraying accurately the characteristics of a particular group or situation.

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A Descriptive study may be concerned with the attitudes or views (of a people) towards
anything.
RESEARCH METHODOLOGY
Research methodology deals with the objective of a research study, the method of
defining the research problem, the type of hypothesis formulated the type of data collected,
methods used for collecting and analyzing the data etc. Methodology includes the collection
of primary data and secondary data.
Research methodology may be defined as the procedure by which researchers go

about their work of describing, explaining and predicting phenomena. It deals with the
cognitive processes imposed in research by the problems arising from the nature of its
subject matter. Research Methodology is the description, explanation and justification of
various methods of conducting research.
DATA COLLECTION METHOD
SOURCE OF DATA
Source of data used for the study can be classified into
(A) Primary source
(B) Secondary source
(A) PRIMARY SOURCE
Primary data are first hand information and are collected from various sources like:
* Informal interviews
* Through Structured questionnaire
* Observation

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(B) SECONDARY SOURCE
The secondary source consists of readily available data’s and is already

compiled statistical statements and reports.
Secondary data’s are collected from;

 Business Magazines
 Internet
 Annual reports
 Journals
TOOLS FOR THE ANALYSIS OF DATA
The analysis of data requires advance planning of the research design. The advance
planning may cover such aspect as categorization of variable and preparation of dummy
tables. The data processing consists of the number of closing related operations like.
1. Editing
2. Classification and coding
3. Transcription
4. Tabulation
In this project researcher used simple averages and percentages for the analysis of the data.
Sampling method
Convenient sampling was used to collect data from the sample. A sample, as the
name implies, is a smaller representation of a large as whole. In other words a selection of
the population selected from the latter in such a way that they rare representative of the
universe is called sample.

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A single member of a population is referred to as population element. When some

of the elements are selected with the intention of finding out something about the population
from which they are taken, that group of elements is referred as a sample and the process of
selection is called sampling.
Sample size:
The sample consisted of 150 respondents in various parts of Kollam District
Population:
Population refers to the total of items about which information is derived. Population of
the study consisted of peoples in various parts of Kollam District; the researcher met the
various peoples as per the reference given by the organization
Sampling unit:
The sampling unit consisted of various peoples in Kollam District
Area of the study:

The study was conducted in various parts of Kollam District
Time period of study:

The study was conducted for a period of one month

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1. Number of people who believe in money planning
Table No: 1
Sl.No Particulars No. of Respondents %

1 Yes 150 100%
2 No 0 0%
3 Total 150 100%
Source: Primary data
Chart No: 1
150
100
50
0
No. Of
%
Respondents
1 Yes 150 100%
2 No 0 0%
Interpretation
From the information it is found that all respondents believe in money planning and
they referred that respondents cannot live with out proper money planning.

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2. Types of money planning
Table No: 2
Sl.No Particulars No. of Respondents %
1 Saving 63 42%
2 Fixed Deposits 36 24%
3 PPF 14 9%
4 Stocks-Debentures 10 7%
5 Others 27 18%
6 Total 150 100
Chart No: 2
50%
40%
30%
%
20%
10%
0%
Saving Fixed Deposits PPF Stocks- Others
Debentures
Interpretation
From the above information it is found that most of the respondents prefer savings
as a method for money planning and only a few have Stock, Debentures and PPF.

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3. People who have money planning for their retirement
Table No: 3
Sl.No Particulars No.Of Respondents %
1 Yes 104 69%
2 No 46 31%
3 Total 150 100%
Chart No: 3
150
100
50
0
No. Of
%
Respondents
1 Yes 104 69%
2 No 46 31%
Interpretation
From the above illustration it is found that most of them have money planning for
their retirement. The government employees and have to contribute a part of their salary to
PPF and many people are bothered about their retirement life. Rest of others is not bothered
about money planning for their retirement.

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4. Various ways of investment that people do to protect their income after

retirement
Table No: 4
Sl.No Particulars No. Of Response %
1 Monthly income scheme 20 13%
2 Savings 59 39%
3 Bank 14 9%
4 PPF 22 15%
5 Stock or Debenture 4 3%
6 Post office 28 19%
7 Don’t know 3 2%
8 Total 150 100
Chart No: 4
50%
40%
30%
%
20%
10%
0%
Monthly Savings Bank PPF Stock or Post office Don’t know
income Debenture
scheme
Interpretation
From the above information it is found that larger portion of the respondents invest
in savings account.

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5. People arrange cash in case of critical illness/emergencies/accidents
Table No: 5
1 Medical insurance 48 32%
2 Relative and friends 89 59%
3 Don’t know 13 9%
4 Total 150 100%
Chart No: 5
9%
32%
Medical insurance
Relative and friends
Don’t know
59%
Interpretation
From the above information it is found that most of the respondents arrange cash
incase of critical illness/ emergencies/accidents from their relatives and friends. Some others
are prefer from medical insurance and remaining others opinion was they are not aware
about it.

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6. Important to have an education fund for your children
Table No: 6
1 Very important 92 62%
2 Important 53 35%
3 Not important 5 3%
4 Total 150 100%
Chart No: 6
3%
35%
Very important
Important
Not important
62%
Interpretation
From the above information majority of a respondents had answered education

fund is very important. Some of them opinion was important and rest of others answered it
is not at all important.

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7. Important to have marriage fund for your children
Table No: 7
1 Very important 40 27 %
2 Important 91 60 %
3 Not important 19 13%
4 Total 150 100%
Chart No: 7
13%
27%
Very important
Important
Not important
60%
Interpretation
From the above observation it was found that majority of the respondents opinion
was marriage fund for their children is important and remaining ones said it is not important
to have a marriage fund for their children.
8. People awareness about insurance

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Table No: 8
1 Yes 150 100%
2 No 0 0%
3 Total 150 100%
Chart No: 8
0%
Yes
No
100%
Interpretation
From the above information it is found that all respondents are aware
about insurance and no one said they are not aware about the insurance.
9. Need of Insurance for your family

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Table No: 9
1 Yes 143 95%
2 No 7 5%
3 Total 150 100%
Chart No: 9
5%
Yes
No
95%
Interpretation
From the above illustration it is found that majority of the respondents said
insurance is needed for the family and rest of others said insurance is not needed for the
family.

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10. People awareness about the benefit of a good insurance plan
Table No: 10
1 Yes 52 35%
2 No 98 65%
3 Total 150 100%
Chart No: 10
35%
Yes
No
65%
Interpretation
Majority of the respondents are aware about the benefit and rest of others are not
aware about the benefits of good insurance plan.

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11. People who likes to make a representative calls on the ideas

Discussed above
Table No: 11
1 Yes 63 42%
2 No 87 58%
3 Total 150 100%
Chart No: 11
42%
Yes
No
58%
Interpretation
From the above it is found that larger number of respondents not like discuss the
ideas and remaining others like to discuss the ideas mentioned in the above question.

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FINDINGS
As a part of the data collection for the work “A Study on Peoples perception
towards Insurance” Researcher had approached 150 people from various parts of Kollam
District including Karunagappally, Sasthamcottah, Chavara and Kollam. A structured
questionnaire is used for data collection. Based on data collection, data analysis and
interpretation is done and the following findings are to be made.
 Majority of people were in the opinion that have Money planning
 Most of the people prefer Savings as an important type of money planning and
many of the makes a portfolio of savings, Fixed Deposits, PPF.
 People who have money plan for their retirement is less because they hire loans
from Financial Institutions with less paper works and after that life is moving on
credit. Those who have money plan for retirement prefer investment in Post
office, PPF, Saving s because they are the traditional method that are followed
and they are owned by government.
 People arrange cash from Relatives and Friends in case of Emergencies, illness
and accidents and some of them take medical insurance and some of them go for
loans and it can be reimbursed.
 Majority of people suggest that it is very important to have an education fund for
their children

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 It is important to have a marriage fund for their children but it is not very
important because of the changing social system
 Majority of the people are aware about the insurance and insurance products.
 Majority suggest that Insurance is needed for the family incase of retirement life,
illness, Education and for meeting the uncertainties in future.
 Even though there are large number of Insurance companies and Insurance
Products many people are not aware about the benefits and various schemes
 Some of the people that I surveyed are interested in Knowing various new
schemes and benefits of insurance.

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SUGGESTIONS
 Insurance companies must try to each the customers through tangible clues and
make them aware about the scheme and benefits. The degree of customer contact
and seller interface plays a significant role in insurance marketing.
 The scope for expansion is still unlimited for all the insurance players because
they are concentrating on large cities and town –expect by LIC to an extent there
was no significant attempt to tap the rural markets.
 Web-based Relationship Marketing in collection of premium and distribution of
the amount to reduce the time lag and e-mails and availability for understanding
the current position of the customer about their Insurance
 Fix service standards for the agents and brokers and make a decent apology in
case of service failure.
 The companies must concentrate on Vision, Values& Culture, Strategies
&Goals, structure & Roles, Key Performance Indicators (KPI) –that entails
multiple learning, Rapid Improvement Strategy-Enables initiate change, when
required.

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 The advantage of Insurance benefits is high for the people who started investing
from the early age.
 There is an emergence of Hyper-competition in Insurance market, one way to
retain success is to develop a holistic Brand Relationship Management (BRM)
 Introduce the concept “Octagonal Marketing” it encompasses all finer aspect
of customer management which can result in greater profits through customer
satisfaction. Octagonal marketing gives better edge to companies in not only
maximizing customer satisfaction but also in retaining them. It includes
providing customer a product which is more acceptable to him, Affordable
product Available at nearest to consumers, Relationship through product&
service.
 There has been a plethora of new and innovative products offered by the new
players, Customers have tremendous choice including pure term (risk) insurance
to unit-linked investment products with a variety of benefits as riders from which
they can choose. More customers are buying products and services based on
their true needs traditional money-term protection and saving new products. So
there are still some key new products yet to be introduced –e.g. Health products.

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CONCLUSION
The main objective of the study is for understanding the people’s perception towards
insurance and to understand insurance market in India and to an extent, correct or verify
knowledge regarding insurance. In this project work ‘A Study on people Perception
towards Insurance”, the study has touched an overview of the perception of people
towards insurance there is an In-depth study are required in the following subjects.
• The role of private insurance companies in insurance market

• The concept of octagonal Marketing and its implementation in Insurance
• The role of Brand relationship Management and value of Brand in marketing
• Understand the customer’s needs and development of product
• Study of response about the existing product
It will give me great satisfaction if someone after reading my project encourages in

doing an in-depth study of the above set concept.

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QUESTIONANAIRE
[I am Aswin.M.S, student of MES College of Engineering, Kuttippuram, Malappuram
conducting a survey on “A Study on peoples Perception towards Insurance”]
RESPONDENT DETAILS
Name :………………………… Profession :…………………………………..
Sex :………………………… Annual income:…………………………………..
Age :………………………… Marital status :…………………………………..
Family size :…………………….. Location :……………………………………
Q1. Do you believe in money planning?
Yes No
Q2. How do you do your financial planning?
Saving Fixed Deposit
PPF Stock-debentures Others ………………….
Q3. (A) Do you have a money plan for your retirement?
Yes No
If No Skip to Question No: 4
(B) what would you do you protect your income after your retirement?
Monthly income scheme Savings
Bank Fixed Deposit
PPF Stock & Debentures
Post office Don’t know

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Others (Please specify)……………………………………….
Q4.How would you arrange for cash if you had critical illness /Emergency/Accident?
Medical insurance Relative and friends
Don’t know Others (Please specify)…………………………
Q5.How important is to have an education fund your children?
Very Important Important
Not important Others (Please specify)…………………………
Q6. How important is to have a marriage fund for your children?
Very Important Important
Not important Others (Please specify)…………………………
Q7. Do you know what is insurance?
Yes No
If No skip to Question No. 10
Q8. Do you think insurance is needed for the family?
Yes No
Q9. Would a good insurance plan benefit your family?
Yes No
Q10. Would you like a representative call on to you to discuss any of the ideas mentioned
above?
Yes No

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[THANK YOU FOR YOUR TIME AND CO-OPERATION]

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A study on peoples perception towards Insurance Project Report 2006

INTRODUCTION TO THE STUDY

This report consists of techniques and methodology used analysis, findings,

INTRODUCTION TO INDIAN INSURANCE INDUSTRY

Dept of management science MES College of

INTRODUCTION TO THE COMPANY

RELEVANCE OF THE STUDY

Dept of management science MES College of

NEED OF THE STUDY

Dept of management science MES College of

OBJECTIVES OF THE STUDY

• To study the perception of public towards insurance policies in Kollam District.

LIMITATIONS OF THE STUDY

Dept of management science MES College of

The insurance industry worldwide faces challenges in terms of acts of terrorism,

Insurance business in India is growing at the rate of 15-20%annually and IRDA

Dept of management science MES College of

Dept of management science MES College of

There is an attempt to bring in international best practices in service and operational

Dept of management science MES College of

A brief history of the Insurance sector

Dept of management science MES College of

• 1957: General Insurance Council, a wing of the Insurance Associations of

Dept of management science MES College of

• 1972: The General Insurance Business (Nationalization) Act, 1972

• No Company should deal in both Life and General Insurance through a

Dept of management science MES College of

• Foreign companies may be allowed to enter the industry in collaboration

iii) Regulatory Body

Dept of management science MES College of

Hence, it was decided to allow competition in a limited way by stipulated the

The Insurance Regulatory and Development Authority (IRDA)

An Indian promoter is required to invest either wholly or team up with a foreign

Dept of management science MES College of

Dept of management science MES College of

This we hope to achieve by:

Dept of management science MES College of

Insurance Solutions for Individuals

ICICI Prudential Life Insurance offers a range of innovative, customer-centric

Savings & Wealth Creation Solutions

 CashPlus is a transparent, feature-packed savings plan that offers 3 levels of

Dept of management science MES College of

Education insurance under the SmartKid brand provides guaranteed educational

Dept of management science MES College of

Group Insurance Solutions

Flexible Rider Options

Dept of management science MES College of

ABOUT THE PROMOTERS

Dept of management science MES College of

Prudential has brought to market an integrated range of financial services products

Indian Insurance Industry Forecast (2007-2009)

The market research report “Indian Insurance Industry Forecast (2007-2009)” by

Dept of management science MES College of

The report “Indian Insurance Industry Forecast (2007-2009)” by RNCOS gives an

Dept of management science MES College of

Dept of management science MES College of

Perception is a cognitive process of seeing, receiving, selecting, organizing,

Insurance has been classified into:

Begun in 1818, with the establishment of the Oriental Life insurance

Dept of management science MES College of

The major Players in the field include:

* Birla sun Life Insurance Co.Ltd. * DaburCCU Life Insurance Company