A STUDY ON CUSTOMER SATISFACTION TOWARDS IDBI FORTIS LIFE INSURANCE COMPANY LTD.

A project report submitted in partial fulfilment of the requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY KUMAR.S (35080266)

UNDER THE GUIDANCE OF

Ms. K. PRIYA KRISHNAN, SENIOR LECTURER DEPARTMENT OF BUSINESS ADMINISTRATION SRM SCHOOL OF MANAGEMENT KATTANKULATHUR,

CHENNAI 603 203. MAY 2010

BONAFIDE CERTIFICATE

This is certify that the project entitled A STUDY ON CUSTOMER SATISFACTION TOWARDS IDBI FORTIS LIFE INSURANCE

COMPANY LTD. submitted to SRM School Of Management in partial fulfilment of the requirement for the award of the Degree of Master of Business Administration, is a record of the original research work done by KUMAR .S (35080266) during the period of his/her study in the Department Of Business Administration , SRM School Of Management, Chennai under my supervision and guidance and that the project has not formed the basis for the award of any degree/ associate ship/fellowship of other similar title to any candidate of any university.

ATTESTED _______________________ Dean (Mrs.)Jayshree Suresh)

CERTIFIED ________________________ Guide (Ms. K. Priya Krishnan) (Dr.

Vivo-Voce held on

External Examiner

DECLARATION

I KUMAR .S (35080266) hereby declare that the project entitled A STUDY ON CUSTOMER SATISFACTION TOWARDS IDBI FORTIS LIFE INSURANCE COMPANY LTD. submitted to SRM School Of Management in partial fulfilment of the requirement for the award of the Degree of Master of Business Administration, is a record of the original research work done by me under the supervision and guidance of MS. K. PRIYA KRISHNAN, SENIOR LECTURER Department Of Business Administration , SRM School Of Management, Chennai and that if has not formed the basis for the award of any degree/ associate ship/fellowship of other similar title to any candidate of any university.

Signature of the candidate

(KUMAR .S)

ACKNOWLEDGEMENT

I here by take this opportunity to express my heartfelt thanks to T.R. PACHAMUTHU, B.Sc., M.I.E, FOUNDER & CHAIRMAN, SRM Group of Educational Institution, Chennai. Dr. (Mrs.) JAYSHREE SURESH, DEAN OF SRM SCHOOL OF MANAGEMENT gave her kind permission to do this project. Ms. K. PRIYA KRISHNAN, SENIOR LECTURER for giving her valuable suggestions and corrections without which this report would have not been completed successfully. I extend my heartful thanks to MR. R. SENTHILNATHAN, BRANCH MANAGER OF IDBI FORTIS LIFE INSURANCE COMPANY LTD. CHENNAI, who had given me the necessary guidance and support while doing my project work in the company. I also thank all staff members who have helped me to be on the right track and to build a deeper understanding on the topic.

Conlusion

ABSTRACT
The project aims to make a detailed study of Customer Satisfaction towards IDBI FORTIS Life Insurance Company Ltd. in the process to identify the strengths and weaknesses of IDBI FORTIS. The study is primarily based in terms of the various benefits offered viz. Death Benefits, Health benefits, Maturity Benefits, financial benefits & other benefits. The various parameters taken into consideration were flexibility, transparency, liquidity and the number of funds options available. The project consists of a detailed analysis of various Products of IDBI FORTIS with the level of their customer satisfaction. The results of the project have been an outcome of a detailed analysis of collected secondary data and well supported by analysis of primary data collected through a survey in the Chennai city. The project required me to design a questionnaire and conduct a primary survey. The survey was mainly conducted to study the consumer satisfaction, opinion and awareness of various insurance products of IDBI FORTIS. The number of respondents targeted was 100.The sample of respondents included was carefully selected targeting respondents from all age groups. The data gathered from the primary survey was coded in a statistical tool called as Statistical Package for Social Science (SPSS) for analysis and to find various factors that affect an investor decisions while choosing an investment option in this vast market. Finally we interpreted the results of the project by combining both the primary and the secondary data analyses then identified the areas where the company is really strong and the areas where it needs to have a second look. Finally after a detailed study we have found out the merits and demerits of the IDBI FORTIS and based on those we have given some recommendations to the company in areas where the company to has to really work on.

The Project helped me enhance my knowledge on various aspects of the Indian insurance industry and gave me a broader prospective of various investment opportunities available in the market.

LIST OF CONTENTS

CHAPTER NO I

PARTICULARS INTRODUCTION 1.1 Introduction of the study 1.2 Industry profile 1.3 Objective of the study 1.4 Scope and need of the study 1.5 Limitations of the study

PAGE NO

1 2 10 10
11

II

RESEARCH METHOD AND COMPANY PROFILE 2.1 Company Profile i) ii) Objective of the company Products of the company 12 14 15 21 23 58 58 59 60

2.2 Research Methodology III IV Data Analysis and Interpretations Findings and Suggestions I) Findings II) Suggestions V Conclusion

VI

Bibliography Annexure

61

LIST OF TABLES

S.NO 1. 2. 3. 4.
5.

LIST OF TABLES Gender of Respondents having IDBI FORTIS Different age group of respondents Different Education levels of respondents Different level of occupation Peoples at different INCOME level Respondents Ranking towards the various investment alternatives in IDBI FORTIS Satisfying Factors in IDBI FORTIS life insurance Investment level of satisfaction in IDBI FORTIS life insurance Types of investment in IDBI FORTIS Types of Policy schemes Awareness of joint venture of IDBI FORTIS Peoples interest to continue Investment in IDBI FORTIS Factors induce to continue investment Peoples willingness to take insurance in the companies

PAGE NO 23 25 27 29
31

6. 7. 8. 9. 10. 11. 12. 13. 14.

33 34 36 38 40 42 44 46 48

LIST OF CHARTS

S.NO 1. 2. 3. 4.
5.

LIST OF CHARTS Gender of Respondents having IDBI FORTIS Different age group of respondents Different Education levels of respondents Different level of occupation Peoples at different INCOME level Satisfying Factors in IDBI FORTIS life insurance Investment level of satisfaction in IDBI FORTIS life insurance Types of investment in IDBI FORTIS Types of Policy schemes Awareness of joint venture of IDBI FORTIS Peoples interest to continue Investment in IDBI FORTIS Factors induce to continue investment Peoples willingness to take insurance in the companies

PAGE NO 24 26 28 30
32

6. 7. 8. 9. 10. 11. 12. 13.

35 37 39 41 43 45 47 49

CHAPTER I

INTRODUCTION 1.1 INTRODUCTION OF THE STUDY

The Business of Insurance is related to the protection of the economic values of the assets. Every human being has the tendency to save to protect them from risks or events of future. Insurance is one form of savings where in people try to assure themselves against risks or uncertainties of future. It is assurance against risks or events or losses. People can save their earnings either in the form gold, fixed assets like property or in banking and insurances. All the savings of people of a country account for gross domestic savings. In India, although savings rate is high but people prefer to invest either in gold or fixed assets so that they can make money out of it. Hence insurance sector is still untapped in India.

1.2 INDUSTRY PROFILE

OVERVIEW OF CURRENT INSURANCE INDUSTRY

1. WHAT IS INSURANCE? Insurance is a tool by which fatalities of a small number are compensated out of funds (premium payment) collected from plenteous. Insurance is a safeguard against uncertain events that may occur in the future. It is an arrangement where the losses experienced by a few are extended over several who are exposed to similar risks. It is a protection against financial loss arising on the happening of an unexpected event. Insurance companies collect premium to provide security for the purpose. Loss is paid out of the premium collected from people and the insurance companies act as trustees to the amount so collected. These companies have proposal forms which are filled to give details of insurance required. Depending upon the answers in the proposal form insurance companies assess the risk and decide on the premium. Insurance companies are risk bearers. They underwrite the risk in return for an insurance premium. the function of insurance is to provide protection, prevent losses, capital formation etc. hence insurance can be defined as a tool in which a sum of money as a premium is paid by the insured in consideration of the insurers bearing the risk of paying a large sum .it may also be defined as a contract wherein one party (insurer) agrees to pay the other party (insured) or his beneficiary, a certain sum upon a given contingency against which insurance is required. Insurance industry commands massive funds through sales of insurance products to large number of clients. Insurers also create liabilities and commit themselves to compensate for losses occurring to the policyholders on future date. It also plays an important role in process of capital formation.

2. NATURE OF INSURANCE a) Risk sharing and risk transfer: Insurance is used to share the financial losses that might occur to an individual or his family on the happening of specified events. The loss arising from such events are shared by all the insured in the form of premium. Example: suppose in a village, there are 250 houses, each valued at Rs.200000.Every year one house gets burnt, resulting into a total loss of Rs 200000.If all the 250 owners come together and contribute Rs.800 each, the common fund would be Rs200000.This is enough to pay to the owner whose house gets burnt. Thus the risk of one owner is spread over 250 house owners of the village.

b) Risk assessment in advance: Insurance companies are risk bearers. They assess the risk before insuring to charge the amount of premium.

c) Its not gambling or charity: The uncertainty is changed to certainty by insuring property and life because the insurer promises to pay a definite sum at damage or death. Insurance is antithesis of gambling. Failure of insurance amounts to gambling because the uncertainty of loss is always looming. Moreover insurance is not possible without premium. So it is different from charity because charity is given without consideration.

d) Huge number of insured people: It is essential to insure larger number of people or property to make cost of insurance less consequently premium would also be less.

e) Assists in capital formation: Insurance provides capital to society. Accumulative funds are invested in productive channels.

3. SEMANTICS 1. Risk: It is defined as an uncertainty of a financial loss. It is the unintentional decline in or disappearance of value arising from contingency. 2. Policy: It is the document which embodies the insurance contract 3. Whole life policy: It is the policy under which the amount of policy will be paid only on death of the insured. Premiums may be payable throughout the life or for a limited period. 4. Endowment policy: Endowment policies entitle the insured to receive the amount of the policy on his reaching a certain age and premiums also stops. If death occurs earlier, amount of the policy will be paid at that time and payment of premium will also stop at that time. 5. Claim: It is the amount which an insurer has to pay against a policy. 6. Reinsurance: It refers to placing a part of the risk by an insurer with another insurer. The object is to reduce the possible loss to be borne by the original insurer, who pays premiums at the ordinary rates to the reinsurer. Reinsure must pay commission to the original insurer. 7. Premium: A periodic payment made on an insurance policy. 8. Insurance penetration: It is defined as insurance premium as a share of gross domestic product. 9. Insurance density: Insurance density is defined as per capita expenditure on insurance premium i.e. premium per capita. 10. Actuary: The actuary is a specialist who combines an understanding of risks and mathematical technique to develop financial products to manage these risks, price these products. He helps in designing insurance plans and then evaluates the financial risk of the company which it takes while selling an insurance policy.

4. TYPES OF INSURANCE Insurance is broadly divided in two segments, based on the nature of insurance, those are: 1. Life Insurance & 2. Non-Life Insurance or General Insurance. It can be again subdivided into the following categories: a) Fire Insurance. b) Marine Insurance. c) Social Insurance & d) Miscellaneous Insurance. (Health insurance, Liability Insurance etc.)

5. HISTORY OF INSURANCE INDUSTRY IN INDIA The insurance industry in India over the past century has gone through big changes. In India this industry reveals the 360 degree turn. 360 degree turn means that it started in India from being an open competitive market to nationalization and back to a liberalized market again. Insurance industry in India started as a fully private system with no restriction on foreign participation in the Nineteenth Century. Before independence, a few British insurance companies dominated the Market. Life insurance was first set up in India through a British company called the Oriental Life Insurance Company in 1818, followed by the Bombay Assurance Company in 1823 and the Madras Equitable Life Insurance Society in 1829.All of these companies operated in India but did not insure the lives of Indians. They were there insuring the lives of Europeans living in India. Some of the companies that started later did provide insurance for Indians. But, they were treated as "substandard" and therefore had to pay an extra premium of 20% or more. The first company that had policies that could be bought by Indians with "fair value" was the Bombay Mutual Life Assurance Society starting in 1871. The first general insurance company, Triton Insurance Company Ltd., was established in 1850. It was owned and operated by the British. The first general insurance company was the Indian Mercantile Insurance Company Limited set up in Bombay in 1907.By 1938; the insurance market in India had nearly 176 companies (both life and non-life).

After the independence, the industry went to the other extreme. It became a state-owned monopoly. The industry started to witness a problem like fraud. Hence many regulations were put in place to reduce and control the problems in the industry. After which Insurance was nationalized. In 1956, the then finance minister S. D. Deshmukh announced nationalization of the life insurance business and then the general insurance business was nationalized in 1972. Only in 1999 private insurance companies have been allowed back into the business of insurance with a maximum of 26% of foreign holding.

6. LIFE INSURANCE After the entry of new players and increase in the penetration levels, could see the insurance sector cross the Rs 2,00,000-core mark in business in 2010. which has seen a compound annual growth rate (CAGR) of around 175 percent in the last few years. The insurance sector, both life and non life, is likely to grow by over 200 percent, and private insurers are expected to achieve a growth rate of 140 percent as a result of aggressive marketing technique. It added that state owned insurance companies are likely to be 35-40 percent. On account of intense marketing strategies adopted by the private insurance players, the market share of state-owned insurance companies like GIC, LIC and others has come down to 70 percent in last 4-5 years from over 97 percent. Despite regulation, the private players are offering 35 percent rate of return to is policy holders against 20 percent by public-sector insurers. The industry body also noted that Indias life insurance premium is 1.8 percent as a percentage of GDP whereas it is 5.2 percent in the US, 6.5 percent in the South Korea. The services sector offers immense opportunities for expansion opportunities for expansion opportunities and the rural market, also, offers tremendous growth opportunities for insurance companies.

7. PRIVATE PLAYERS IN THE LIFE INSURANCE SECTOR The different private players in the life insurance sector and their associations with foreign companies are being given below: COMPANY INDIAN FOREIGN PROMOTER/PARTNER INSURER IDBI FORTIS Aviva Life BajajAllianz Birla Life HDFC Standard ICICI Prudential ING Vysya Kotak Mahindra Old Mutual Max Newyork Met Life SBI Life TATA AIG IDBI BANK, FEDERAL FORTIS BANK Dabur Bajaj Auto Sun Aditya Birla Group HDFC ICICI Bank Vysya Bank Kotak Mahindra Bank Aviva (UK) Allianz (Germany) SunLife (Canada) StandardLife (UK) Prudential (UK) ING Ins.(Netherlands) OldMutual (South Africa) NewYorkLife (US) Met Life (US) Cardiff (France) AIG (US)

Max India J&K Bank SBI TATA Group

8.

CONTRIBUTION OF THE INSURANCE SECTOR TO INDIAN ECONOMY

Some surveys have predicted that India and China will play a very vital role in the years to come. Indian economy can be termed as an emerging economy as it is doubling its GDP in 3 to 5 years and moreover it is not dependent on any particular sector for its GDP. If we look at the GDP of the Indian economy very closely over the years, we can easily come to know the changing structure of the economy. We can also come to know the changing contribution of the various sectors like agriculture, manufacturing and the service sector. In the financial year 1993-94, agricultural sector contributed to 31%, manufacturing accounted to 26.3% and the service sector contributed to 42.7% of the total GDP of the country. Thus over the years as India became an emerging economy in 2003-04 manufacturing sector contributed for 21.7 %, manufacturing contributed for 26.8 whereas service sector contributed for 51.4% of the total GDP. There has been 7.5% growth in the total GDP of the country and is estimated to grow at 8.0% in 2006-07. The Indian economy has shown signs of strong performance despite a rise in oil prices, high inflation rate and abnormal rains in many parts of the country. The overall growth of the Indian economy has been equally supported by all the three sectors of the economy, i.e. the agriculture, manufacturing and the service sector. Insurance, together with the banking sector, contributes to about 7.3 % of the total GDP of India, and the gross premium collected contributes to about 2% of the total GDP of the country The insurance sector in India has completed a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost 200 years.

9.

GOVERNMENT POLICIES REGARDING LIFE INSURANCE

Insurance Regulatory and Development Authority (IRDA) 1999

Reforms in the insurance sector were initiated with the passage of the IRDA bill in December 1999.it was set up as an independent body and it has been able to frame globally compatible legislations. The IRDA was set up to protect the interests of holders of insurance policies ,to regulate ,promote and insure orderly growth of the insurance industry and for matters connected therewith or incidental thereto. This act extends to whole of India. With the establishment of this act, government amended Insurance act 1938, Life Insurance Act 1956 and General Insurance Act 1972. IRDA was formed on the recommendations of Malhotra Committee. In 1999 government of India has set up Malhotra Committee to examine the structure of insurance industry and recommend changes, under R.N Malhotra former governor of RBI.

1.3 OBJECTIVES OF THE STUDIES

a) To know about the various Investment alternatives that mostly preferred by the people. b) To know the parameters that satisfies the customers of IDBI FORTIS Life Insurance.

c) To find out the customer satisfaction level on investment in IDBI FORTIS Life Insurance.

1.4 SCOPE OF THE STUDY The result of this research would help the company to have a better understanding about the consumers perception towards life insurance. The study helps the company by creating awareness about the consumers of different ages and income levels. The study also enables the company to focus the consumers preferences and expectations on the product which they offer.

1.5 LIMITATIONS OF THE STUDY

Due to time constraint, the sample size is limited to 100 & the study area is restricted to Chennai. Only those who have policy in a particular company are included in the

sample size.

User of other people were ignored in the selection of

sample respondent Respondent may fail to express their opinions and beliefs. Only particular company policy holders are selected for study. Therefore, this limitation is said to be present in the study.

CHAPTER - II COMPANY PROFILE & RESEARCH METHODOLOGY

2.1 COMPANY PROFILE IDBI Fortis Life Insurance Co Ltd IDBI Fortis Life Insurance Co Ltd is a joint-venture of IDBI Bank, Indias premier development and commercial bank, Federal Bank, one of Indias leading private sector banks and Fortis Insurance International, a multinational insurance giant based out of Europe. In this venture, IDBI owns 48% equity while Federal Bank and Fortis own 26% equity each. At IDBI Fortis, we endeavor to deliver products that provide value and convenience to the customer. Through a continuous process of innovation in product and service delivery we intend to deliver world-class wealth management, protection and retirement solutions to Indian customers. Having started in March 2008, in just five months of inception we became one of the fastest growing new insurance companies to garner Rs 100 Cr in premiums. The company offers its services through a vast nationwide network across the branches of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and partners. In only its first year of operations, as on March 31st 2009, the company collected more than 328 Cr in premiums highest first year collection in the history of Indian life insurance industry, through over 87000 policies and over Rs 2825 Cr in Sum Assured. . About the sponsors of IDBI Fortis Life Insurance Co Ltd IDBI Bank Ltd. continues to be, since its inception, Indias premier industrial development bank. Created in 1956 to support Indias industrial backbone, IDBI Bank has since evolved into a powerhouse of industrial and retail finance. Today, it is amongst Indias foremost commercial banks, with a wide range of innovative products and services, serving retail and corporate customers in all corners of the country from over 700 branches and more than 1180 ATMs. The Bank offers its customers an extensive range of diversified services including project financing, term lending, working capital facilities, lease finance, venture capital, loan

syndication, corporate advisory services and legal and technical advisory services to its corporate clients as well as mortgages and personal loans to its retail clients. As part of its development activities, IDBI Bank has been instrumental in sponsoring the development of key institutions involved in Indias financial sector such as the Securities and Exchange Board of India (SEBI), National Stock Exchange of India Limited(NSE). Federal Bank is one of Indias leading private sector banks, with a dominant presence in the state of Kerala. It has a strong network of over 660 branches and 690 ATMs spread across India. The bank provides over four million retail customers with a wide variety of financial products. Federal Bank is one of the first large Indian banks to have an entirely automated and interconnected branch network. In addition to interconnected branches and ATMs, the Bank has a wide range of services like Internet Banking, Mobile Banking, Tele Banking, Any Where Banking, debit cards, online bill payment and call centre facilities to offer round the clock banking convenience to its customers. The Bank has been a pioneer in providing innovative technological solutions to its customers and the Bank has won several

awardsandrecommendations.

Fortis is an international insurance group composed of AG Insurance, the overall market leader in life and non-life insurance in Belgium, distributing its insurance products through the network of BNP Paribas Fortis Bank and independent insurance brokers, and Fortis Insurance International with subsidiaries in the UK, France, Hong Kong, Luxembourg (Non-life), Germany, Turkey, Russia and Ukraine, and joint ventures in Luxembourg (Life), Portugal, China, Malaysia, Thailand and India.

i) OBJECTIVES OF IDBI FORTIS

Our Vision To be the leading provider of wealth management, protection and retirement solutions that meets the needs of our customers and adds value to their lives.

Our Mission To continually strive to enhance customer experience through innovative product offerings, dedicated relationship management and superior service delivery while striving to interact with our customers in the most convenient and cost effective manner. To be transparent in the way we deal with our customers and to act with integrity. To invest in and build quality human capital in order to achieve our mission.

Our Values Transparency: Crystal Clear communication to our partners and stakeholders Value to Customers: A product and service offering in which customers perceive value Rock Solid and Delivery on Promise: This translates into being financially strong, operationally robust and having clarity in claims

Customer-friendly: Advice and support in working with customers and partners Profit to Stakeholders: Balance the interests of customers, partners, employees, shareholders and the community at large

ii) PRODUCTS UNDER IDBI FORTIS A) WEALTHSURANCE:

The Wealthsurance Foundation Plan enables you to save and build wealth to meet your financial goals. However, unlike other investment alternatives, it also enables you to achieve your wealth goals even in the event of unexpected death, accidents, disablement or serious illness. The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are achieved by protecting that plan with insurance benefits. With Wealthsurance Foundation Plan, you can: Save into the Plan as much money as you want whether at one time, at regular intervals or as per your convenience. Build your wealth by choosing the investments your savings go into and change them from time to time as you wish. Get adequate life insurance cover with a unique built-in terminal illness benefit, so that the financial security of your loved ones is assured and your plans are always realised. Get health, accident and disablement benefits so you can ensure that your wealth-building plans are not affected by unexpected medical expenses or loss of earning capacity in case of

serious ailments, accidents or disablement. Grow wealth faster with tax free income, thus making the whole package even more attractive. All in all, the Wealthsurance Foundation Plan can be a complete financial plan that puts the power of choice in your hands.

MESURANC CE: B) HOM our r new home is the fulfi illment of a long-cheris shed dream. Only you know k the ca areful planning that went into its cho oice. And only o you un nderstand the e hard work k that went t into arranging g the financi ing including g the home loan. Tru uly, your hom me is your best b gift to your y family. Just imagin ne what would happen, if i due to an unf fortunate eve ent, you wer re not aroun nd. The entir re burden of f your home loan would have to be bor rne by your family. f But t you can ensure that the ey inherit a home h and no ot a home loa an.

We understand the importance of protecting your home loan and the powerful Homesurance Protection Plan can help you insure your home loan at a reasonable cost.

C) BONDSURANCE: Bondsurance is a single premium plan which allows you to make a one-time investment and get a guaranteed amount on maturity. You can choose a maturity period of 5 or 10 years for your investment. At the end of the chosen period, you will receive a guaranteed maturity amount. Besides the guaranteed maturity amount, Bondsurance also provides a life insurance cover. In case of death before the maturity date, a Death Benefit which is also guaranteed will be paid. Thus you can get life insurance cover, while earning an assured return on your investment.

A. Guaranteed Return on your investment Bondsurance gives you guaranteed returns on your one-time investment. All you have to do is choose the Maturity Benefit, and the Maturity Period for your investment. Based on your choice, the investment you have to make by way of single premium is determined. Maturity Benefit You can choose any amount as the Maturity Benefit. The amount you choose is guaranteed and will be paid to you on the maturity date. Maturity Period You can choose the Maturity Period, which can be either 5 or 10 years. The Maturity Period is the policy term of your Bondsurance Plan.

Life Cover of 5 times the invested amount Besides giving assured returns, Bondsurance also provides a life insurance cover. In the unfortunate event of death of the Insured Person before the maturity date, a Death Benefit equal to five times the single premium amount will be paid. The Death Benefit (which is the Sum Insured) is guaranteed. The Plan will terminate upon payment of Death Benefit. The life insurance cover ensures that the financial security of loved ones is secured.

D) RETIRESURANCE: The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you accumulate your funds for your retirement. The plan is tailor-made for the ever changing investment environment, with built-in flexibilities to manage your investment mix. On retirement, you can use the maturity proceeds to buy an annuity so that you have a monthly paycheck for life, even after you stop earning your regular income.

E) INCOMESURANCE:

Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual Payout along with insurance protection which will help you to reach you goals with full confidence. Incomesurance Plan is very flexible and allows you to customise your Plan as per your individual and familys future requirements. Moreover it also allows you to choose Premium Payment Period, Payout Period, Payout Options

F) TAX BENEFIT: Life insurance and retirement plans are one of the most effective ways of saving taxes.

A summary of these benefits is provided below:

1. Life Insurance Plans and certain types of annuity plans are eligible for Section 80C .

deduction under

2. Specified Pension Plans are eligible for a deduction under Section

80CCC. annuity/pension

The contributions/payments made towards the life insurance plans and plans are eligible for an overall tax deduction of Rs. 1,00,000.

3. Health Insurance Plans/Riders are separately eligible for deduction under Section 80D.

4. The proceeds or withdrawals from Life Insurance Policies are exempt subject to norms prescribed in that section.

under Sec 10(10D),

2.2 RESEARCH METHODOLOGY

Methodology is a systematic way of solving a problem it includes the research methods for solving a problem it includes the research methods for solving the problem. Type of research Data source Data collection method Data collection tools Sample size SAMPLE DESIGN The target population of the study consists of various respondents of various places. This survey was done by collecting the data from the respondents. SAMPLE SIZE For the research, the sample size that was found to be appropriate for the study was 100. SAMPLING TECHNIQUE The sampling technique that adapted to conduct the survey was Convenient Random Sampling . The survey was conducted by visiting different places like corporate offices, respondents home etc... - Descriptive research -Primary and Secondary data -Interview and survey -Questionnaire -100

DATA SOURCE The task of data collection begins after a research problem has been defined. In this study data was collected through both primary and secondary data source.

A. PRIMARY DATA A primary data is a data, which is collected for gathering information first time and to analyze the problem. In this study the primary data was collected among the consumers using questionnaire. B. SECONDARY DATA Secondary data consist of information that already exits somewhere, having been collected for some other purpose. In this study secondary data was collected from company websites, magazines and brochures.

STATISTICAL TOOLS Simple percentage analysis, ranking method and chi square analysis are the main statistical tool used for the study.

CHAPTER - III

DATA ANALYSIS AND INTERPRETATION TABLE 1:

GENDER OF RESPONDENTS HAVING IDBI FORTIS LIFE INSURANCE

Gender

MALE Percentage

FEMALE Percentage 80 20

Male Female

80 20

INTERPRETATION The above table shows that the respondents are 80 % of Males and 20 % of Females are having IDBI FORTIS Life Insurance.

CHART 1:

GENDER OF RESPONDENTS HAVING IDBI FORTIS LIFE INSURANCE

gender
90 80 70 60 50 40 30 20 10 0 male female gender

TABLE 2: DIFFERENT AGE GROUP OF RESPONDENTS

Age Group Below 30 31-40 41-50 51-60 Above 60

No, Of Respondent 37 37 14 7 5

Percentage 37 37 14 7 5

INTERPRETATION The above table shows that 37% of below 30 and 31-40 age group, 14% of 41-50 age group , 7% of 51-60 age group and 5% of above 60 age group of respondents having IDBI FORTIS Life Insurance.

CHART 2: DIFFERENT AGE GROUP OF RESPONDENTS

below30 3140 4150 5160 above60

TABLE-3

DIFFERENT EDUCATION LEVELS OF RESPONDENTS HAVING IDBI FORTIS

Education Under Graduate Post Graduate Diplomo Others Total

Frequency 51 42 5 2 100

Percentage 51 42 5 2 100

INTERPRETATION: The above table shows that 51% of respondents are under graduate and 42% of respondents are post graduate having IDBI FORTIS

CHART 3: DIFFERENT EDUCATION LEVELS OF RESPONDENTS HAVING IDBI FORTIS

EDUCATION
60 50 40 30 20 10 0 Under Graduate PostGraduate Diplomo Others EDUCATION

TABLE 4: DIFFERENT LEVEL OF OCCUPATION

Occupation

Frequency

Percentage

Student Employed Self Employed Others Total

7 49 38 6 100

7 49 38 6 100

INTERPRETATION: The above table shows that 7% of student , 49% of employed, 38% of self Employed respondents are having IDBI FORTIS.

CHART 4: DIFFERENT LEVEL OF OCCUPATION

Occupation
60 50 40 30 Occupation 20 10 0 Student Employed SelfEmployed Others

TABLE 5: PEOPLES AT DIFFERENT INCOME LEVEL

INCOME LEVEL Below 1 lakh 1.01 - 3 lakh 3.01 5 lakh Above 5 lakh Total

Frequency 13 38 43 6 100

Percentage 13.0 38.0 43.0 6.0 100.0

INTERPRETATION: The above table shows that 13% of respondents income below 1lakh, 38% of respondents income 1.01 3lakh, 43% of respondents income 3.01-5lakh and 6% of respondents income above 5lakh are using IDBI FORTIS.

CHART 5: PEOPLES AT DIFFERENT INCOME LEVEL

Below1lakh 1.01 3lakh 3.01 5lakh Above5lakh

TABLE - 6: Respondents Ranking towards the various investment alternatives in IDBI FORTIS.

SNO

Investment Alternatives

Observed

Rank

1.

Bonds & Debentures

4.72

VI

2.

Equity/Shares

4.66

IV

3.

Mutual Fund

4.70

4..

Insurance

2.52

II

5.

Bank Deposits

2.075

6. 7.

Gold & Silver Other

2.58 6.765

III VII

INTERPRETATION: From the above table most of the respondent prefers to investment their funds highly in the bank deposits, insurance and gold & silver. averagely preferred by the respondents Mutual funds, bonds, equity shares are

TABLE-7 SATISFYING FACTORS IN IDBI FORTIS LIFE INSURANCE Factors Premium Charges Policy term Bonus & interest Services Accessibility Company image HS 5 2 2 3 7 15 2 S 49 28 42 55 50 49 40 N 44 69 51 41 31 26 57 DS 2 1 4 1 8 7 1 HDS 0 0 1 0 4 3 0

INTERPRETATION: The above table shows 49% of peoples are satisfied in the premium, 69% of peoples are neutralized in the charges, 51% of people are neutralized in the policy term, 55% of peoples are satisfied in the bonus & interest, 50% of peoples are satisfied in the service, 49% of peoples are satisfied in the accessibility, 57% of peoples are neutralized in the company image.

CHART-6 SATISFYING FACTORS IN IDBI FORTIS LIFE INSURANCE

80 70 60 50 40 30 20 10 0 highlysatisfied satisfied neutral dissatisfied highlydissatisfied

TABLE -8

INVESTMENT LEVEL OF SATISFACTION IN IDBI FORTIS LIFE INSURANCE Satisfaction level Safety Capital growth Liquidity Return Tax benefit Company profile & brand name HS 4 1 1 12 65 S 85 1 3 38 22 N 10 28 27 35 6 DS 1 63 62 12 3 HDS 0 7 7 3 4

23

63

INTERFERENCE: The above table shows 85% of peoples are satisfied in the safety, 63% of peoples are dis satisfied in the capital growth, 62% of people are dis satisfied in the liquidity, 38% of peoples are satisfied in the returns, 65% of peoples are highly satisfied in the Tax benefit, 49% of peoples are neutralized in the company and brand name .

CHART -7

INVEST TMENT LE EVEL OF SA ATISFACTI ION IN IDB BI FORTIS LIFE INSU URANCE

90 80 70 60 50 40 30 20 10 0

highlysatisfie ed satisfied neutral dissatisfied highlydissat tisfied

TABLE- 9 TMENT IN IDBI FORT TIS TYPES OF INVEST

INVESTMENT SHORT TERM LONG TERM BOTH TOTAL

FREQUENCY 28 69 3 100

PERCENTAGE 28 69 3 100

INTERPRETATION: From the above table it is found that 69% of the respondents are preferred to invest in Long Term. It implies that the IDBI FORTIS is good in attracting Long term investment.

CHART - 8 TYPES OF INVESTMENT IN IDBI FORTIS

investment
80 70 60 50 40 30 20 10 0 SHORTTERM LONGTERM BOTH investment

TABLE 10 TYPES OF POLICY SCHEME Plan FREQUENCY PERCENTAGE

Retirement Wealth Income TOTAL

12 33 55 100

12 33 55 100

INTERPRETATION: From the above table it is found that 55% of the respondents are preferred to invest their funds in INCOME policy plan of scheme and 33% of the respondents are preferred to invest their funds in Wealth insurance policy plan.

CHART - 9 TYPES OF POLICY SCHEME

Retirement Wealth Income

TABLE - 11 AWARENESS OF JOINT VENTURE OF IDBI FORTIS

Awareness Yes No Total

FREQUENCY 85 15 100

PERCENTAGE 85 15 100

INTERPRETATION: From the above table 85% of respondents are well aware about the joint venture of the IDBI FORTIS

CHART- 10 AWARENESS OF JOINT VENTURE OF IDBI FORTIS

Yes

No

TABLE- 12 INTERE EST OF PEO OPLES TO C CONTINUE E THE INVE ESTMENT IN N IDBI

Continuity

FREQU UENCY

PER RCENTAGE E

Yes No Total

83 17 100

83 17 100

INTERPRETATION: From the above table 83% of respondents are preferring to continue their investment in IDBI FORTIS

CHART- 11 INTEREST OF PEOPLES TO CONTINUE THE INVESTMENT IN IDBI

Yes No

TABLE - 13 FACTORS INDUCE TO CONTINUE INVEST IN IDBI FORTIS LIFE INSURANCE OPTIONS BRAND IMAGE Diversity NO.OF.RESPONDENTS 25 12 PERCENTAGE 30 15

Growth Potential

22

27

Transparency

10

Utmost Good Faith

10

12

Others (Specify). 06

TOTAL

83

100

INTERFERENCE: From the above table it is inferred that 30% of respondents are willing to continue based on Brand image, 27% of respondents are willing based on growth, 12% based on diversity and 8% based on transparency.

CHART: 12 FACTORS INDUCE TO CONTINUE INVEST IN IDBI FORTIS LIFE INSURANCE

no.,ofrespondent
30 25 20 15 10 5 0 no.,ofrespondent

TABLE-14 PEOPLES WILLINGNESS TO TAKE INSURANCE IN THE COMPANIES OPTIONS Bajaj Allianz IDBI NO.OF.RESPONDENTS PERCENTAGE 1 0 .05 0

FORTIS Birla Sun life SBI Life ICICI Prudential TATA- AIG Reliance Met Life Max New York

1 4 3

.05 .23 .17

1 2 0 0

.05 .11 0 0

0 Sahara ING Vysya Aviva Dabur OM- Kodak Mahindra LIC AXA-Bharti TOTAL 0 0 0 0 5 0 17 0 0 0 .29 0 1.00

INTERFERENCE: From the above table 0.29 % of the respondents are willing to take insurance in LIC and 0.23% of peoples are willing to take insurance in SBI LIFE INSURANCE

CHART: 13 PEOPLES WILLINGNESS TO TAKE INSURANCE IN THE COMPANIES

willingnessinanotherinsurance company
6 5 4 3 2 1 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 willingnessinanother insurancecompany

CHI- SQUARE TEST

1. STATUS ABOUT AGE GROUP AND THE SCHEME OF INSURANCE PLAN

HYPOTHESIS:

Ho: There is no significant relationship between the AGE GROUP and SCHEME OF PLAN

H1: There is significant relationship between the AGE GROUP and SCHEME OF PLAN

AGEGROUP * SCHEMEOF INSURANCE PLAN

Cross tabulation

SCHEME OF INSURANCE Retirement plan AGE GROUP below 30 31-40 41-50 51-60 above 60 Total 0 0 0 7 5 12 Wealth plan 1 23 9 0 0 33 income plan 36 14 5 0 0 55

Total

37 37 14 7 5 100

CHI_SQUARE TABLE: STATUS ABOUT AGE GROUP AND THE SCHEME OF INSURANCE PLAN

Criteria

Value

Df 8

Asymp.Significant .000

Pearson Chi Square 13.919

Likelihood Ratio No of valid cases

11.32 100

.000

INTERPRETATION: From the above table, it is clear that the calculated value of significance level is less than the assumed significance level (0.05), hence the null hypothesis is rejected. There is significant relationship between the AGE GROUP AND SCHEME OF INSURANCE PLAN

2. STATUS ABOUT OCCUPATION AND THE AWARENESS OF IDBI FORTIS INSURANCE JOINT VENTURE

HYPOTHESIS:

Ho: There is no significant relationship between the OCCUPATION and AWARENESS OF IDBI FORTIS JOINT VENTURE

H1: There is significant relationship between the OCCUPATION and AWARENESS OF IDBI FORTIS JOINT VENTURE

OCCUPATION * AWARENESS Crosstabulation

AWARENESS Yes OCCUPATION Student Employed Self employee Others Total 2 46 37 0 85 No 5 3 1 6 15

Total

7 49 38 6 100

CHI_SQUARE TABLE:

STATUS OCCUPATION and AWARENESS OF IDBI FORTIS JOINT VENTURE

Criteria

Value

Df 3 3

Asymp.Significant .000 .000

Pearson Chi Square 5.907 Likelihood Ratio No of valid cases 4.43 100

INTERPRETATION: From the above table, it is clear that the calculated value of significance level is less than the assumed significance level (0.05), hence the null hypothesis is rejected. There is significant relationship between the OCCUPATION * AWARENESS OF IDBI FORTIS JOINT VENTURE

3. STATUS ABOUT GENDER AND INVESTMENT IN IDBI FORTIS INSURANCE

HYPOTHESIS:

Ho: There is no significant relationship between the GENDER AND INVESTMENT IN IDBI FORTIS INSURANCE

H1: There is significant relationship between the GENDER AND INVESTMENT IN IDBI FORTIS INSURANCE

GENDER * INVESTMENT Crosstabulation

INVESTMENT Short term GENDER Male female Total 16 12 28 Long term 61 8 69 both 3 0 3

Total

80 20 100

CHI_SQUARE TABLE:

STATUS ABOUT GENDER and INVESTMENT IN IDBI FORTIS

Criteria

Value

Df 2

Asymp.Significant .002

Pearson Chi Square 12.907

Likelihood Ratio No of valid cases

11.43 100

.002

INTERPRETATION: From the above table, it is clear that the calculated value of significance level is less than the assumed significance level (0.05), hence the null hypothesis is rejected. There is significant relationship between the GENDER and INVESTMENT IN IDBI FORTIS FORTIS

4. STATUS ABOUT INCOME AND CONTINUE INVESTMENT IN IDBI FORTIS

HYPOTHESIS:

Ho: There is no significant relationship between the INCOME AND CONTINUE INVESTMENT in IDBI FORTIS

H1: There is significant relationship between the INCOME AND CONTINUE INVESTMENT in IDBI FORTIS

INCOME * CONTINUE INVESTMENT Crosstabulation

CONTINUE yes INCOME below 1lakh 1.013lakh 3.015lakh above 5lakh Total 11 No 2 Total 13

31

38

37

43

4 83

2 17

6 100

CHI_SQUARE TABLE:

STATUS ABOUT INCOME AND CONTINUE INVESTMENT IN IDBI FORTIS

Criteria

Value

Df 3 3

Asymp.Significant .683 .725

Pearson Chi Square 14.907 Likelihood Ratio No of valid cases 13.43 100

INTERPRETATION: From the above table, it is clear that the calculated value of significance level is GREATER than the assumed significance level (0.05), hence the Alternative hypothesis is rejected. There is NO significant relationship between the INCOME and CONTINUE INVESTMENT IN IDBI FORTIS FORTIS.

CHAPTER - IV FINDINGS AND SUGGESTIONS

I)

FINDINGS:

The findings that can be drawn from the survey conducted by us can be summarized in the following way: a) Bank Deposits, Insurance, Gold and Silver are the most preferred investment alternative which is available to people.

b) The respondents are Satisfied with the factors of Premium, Charges, Service and Accessibility c) According to the survey safety and tax benefit is the most important criterion which is excepted among all the respondents towards their investment alternatives followed by Return, Brand Name, Liquidity and Capital Growth. d) It was found that nearly 69% of the respondents are preferred to invest in long term than the short term investment. e) It was found that nearly 55% of the respondents are preferred to invest their funds in the INCOME POLICY SCHEME . f) It is found that 85% of respondents are well aware about the joint venture of the IDBI FORTIS g) It is found that 83% of respondents are preferring to continue their investment in IDBI FORTIS h) 80% of the respondents are willing to continue their investment in the IDBI FORTIS based on the brand image than the growth and diversity. i) It is found that 0.29 % of the respondents are willing to take insurance in LIC and 0.23% of peoples are willing to take insurance in SBI LIFE INSURANCE

II) SUGGESTIONS:

1. Consumer should be aware of companys profile and services rendered by the company. 2. Company should publish their performance by comparing it with their competitors. 3. Financial advisor has to concentrate on existing customers to continue their investment in the company.

4. Company has to create more awareness about the short term investment policies also to the customers, to increase the revenue. 5. Financial advisor has to describe their products, policy plans and schemes with transparency to the customers 6. Company should improve their level of services to the customers. The number of agents working for the company is less when compared with others. 7. Company has to improve their promotional strategies to create awareness among the customers. 8. IDBI FORTIS has to come over with innovate products to improve their product sales.

CHAPTER V

CONCLUSION Insurance is a tool by which fatalities of a small number are compensated out of funds collected from plenteous. Insurance is a safeguard against uncertain events that may occur in the future. Over the last 5 to 6 years, the IDBI FORTIS life insurance company have tripled investors money than the other competent, this progress leads to increase the company image and makes a way to lead the total insurance market.

Thus the study also comprise company image is the highly important criteria that consumers consider before taking up a life insurance. This is mainly because people expect safety and secure for their money which they invest, followed by the factor Premium which we pay to the insurer and then Bonus and Interest paid by the company, services etc.

CHAPTER - VI

BIBLIOGRAPHY

TEXT BOOKS 1. PHILIP KOTLER (2001) Marketing Management, Prentice Hall Pvt.Ltd., New Delhi, Millennium edition. 2. KOTHARI C.R. (1999) Research Methodology, Wishwa Prakashan, New Delhi, 2nd edition.

WEB SITES 1. www.idbifortis.com 2. www.irda.org

APPENDIX

A Study on Customer satisfaction towards IDBI FORTIS Life Insurance company

Questionnaire

Dear respondent, This questionnaire is aimed at understanding your perception about life insurance .Your response will be dealt with strict confidentiality and it will be used only for academic purpose. Thank you for spending your valuable time to fill this questionnaire. 1. Name: Contact No: Gender: Male Female

2. Age Group:
Below30 Above60 3140 4150 5160

3. Educational Qualification:
UnderGraduate Others(Specify). PostGraduate Diploma

4. Occupation:
Student Employed SelfEmployed

Others(Specify).

SNO 1. 2. 3. 4.. 5. 6. 7.

Investment Alternatives
Below1Lakh

Rank
1.013Lakh

5. Annual Income Level:

3.015Lakh

Bonds & Debentures

Above5Lakh

Equity/Shares Mutual Fund

Insurance Bank Deposits Gold & Silver Other (specify).

6.Rank these various investment alternatives according to your preferences.

7. State the parameters that satisfies you the most in IDBI FORTIS life insurance

Parameters Premium Charges Policy Term Bonus & Interest Services (Pre &

Highly Satisfied

Satisfied

Neutral

Dis satisfied

Highly dis satisfied

Post Sales) Accessibility Company Image

8. State your satisfaction level on investment in IDBI FORTIS life insurance Satisfaction level on investment Safety Capital Growth Liquidity Return Tax Benefit Company Profile & Brand Name Highly Satisfied Satisfied Neutral Dis satisfied Highly dis satidfied 9. What kind of invest ment do you prefer in IDBI FORTI S?

ShortTe

10.What scheme of Insurance Policy have you taken in IDBI FORTIS?

Lifeprotectionplan Healthplan ULIPplan Incomeplan Retirementplan Others(Specify).

11. Are you aware about the joint venture between IDBI bank, FEDERAL bank and FORTIS to form a private sector insurance company called IDBI FORTIS Life Insurance?
Yes No

12. Would you like to continue the investment in IDBI FORTIS Life Insurance? (If No move to 14)

Yes

No

13. If, YES what induce you to invest in IDBI FORTIS Life insurance?
Brandimage Transparency Diversity UtmostGoodFaith GrowthPotential Others(Specify).

14. Among the following Life Insurance Companies in which company you will be Willing to take a life insurance?
BirlaSunlife BajajAllianz SBILife Reliance IDBIFORTIS ICICIPrudential MetLife TATA TATA AIG MaxNewYork MaxNewYork AvivaDabur AXABharti

Sahara OMKotakMahindra

ING Vysya ING Vysya LIC

15. Suggestions _______________________________________ ________________________________________________ ________________________________________________

Thank you