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SIVA SIVANI INSTITUTE OF MANAGEMENT1

C H A P T E R - I
1.1 - Introduction
With largest number of life insurance policies in force in the world, Insurance happens to be a
megaopportunity in India. Its a business growing at the rate of 15-20 %annually and
presently is of the order of Rs 450 billion. Together with banking services, it adds about 7
%to the countrys GDP. Gross premiumcollection is nearly 2 %of GDP and funds available
with LIC for investments are 8 %of GDP.Yet, nearly 80 %of Indian population is without life
insurance cover while health insurance and non-lifeinsurance continues to be below
international standards. And this part of the population is also subject toweak social security
and pension systems with hardly any old age income security. This itself is anindicator that
growth potential for the insurance sector is immense.A well-developed and evolved insurance
sector is needed for economic development as it provides longterm funds for infrastructure
development and at the same time strengthens the risk taking ability. It isestimated that over
the next ten years India would require investments of the order of one trillion USdollar. The
Insurance sector, to some extent, can enable investments in infrastructure development
tosustain economic growth of the country.The growing number of wealthier as well as aging
Indian middleclass is set to offer a strong business potential for the countrys untapped life
insurance market.Insurance is a federal subject in India. There are two legislations that
govern the sector-The InsuranceA c t - 1 9 3 8 a n d t h e I R D A Ac t - 1 9 9 9 . The insurance
sector in India has come a full circle from being an open competitive market tonationalization
and back to a liberalized market again. Tracing the developments in the Indian
insurancesector reveals the 360 degree turn witnessed over a period of almost two
centuries.As the twentieth century has come to a close and we have move into the third
millennium, we can seemany developments and changes taking place around us with all the
industries and firms within each
SIVA SIVANI INSTITUTE OF MANAGEMENT2industry trying to keep pace with the
changes and diverse needs of the people. Though for decadetogether, marketers have
regarded customer as the king and evolved all activities to satisfy him or her,giving this
concept a momentum itis necessary to understand the Perception and
Expectations of thecustomer in respect various aspects & attributes so as
to design a successful and an acceptableproduct or service.This can largely be
attributed to the prevailing market situation. Not only has competition becomeintense but
over and above with the market being flooded with many me-too products, the
challenge beforethe marketer is to understand the diversity of consumer expectations
and offer goods/servicesaccordingly. Today the company image is built and made known by
its customers. Thus the success of thefirm will be determined by how effective it has been in
meeting the diverse consumer needs and wants bytreating each customer as unique and
offering products and services to suit his or her needs.Therefore today all the firms are
engaged in a process of creating a lifetime value and relationship withtheir customers, a step
towards developing knowledge regarding its customers needs is the utmostimportant. The
current study is an attempt to measure the various parameters as perceived by thecustomers
and to help the company in serving its customers in a much better and efficient manner.
1.2 - Scope of the study

The scope of the study lies infinding out theperception of customers in

Lucknowcity throughresponses taken by 300 customers during a period of 60 days and
highlightingthe key areas which requires o m e c o n c e r n o n p a r t o f L I C o f
I n d i a a n d i m p r o v i n g u p o n w h i c h t h e c o m p a n y m a y s t r e n g t h e n i t s customer
base.The presentstudy, analysis, findings and suggestions proposed by the
present researcher will be of immense use for future researcher with similar studies in
insurancemarket.
SIVA SIVANI INSTITUTE OF MANAGEMENT3
1.3Significance of the study :

High quality products with quality support services both in terms of international
standardsandcompetitiveness have entered into our country. Customer satisfaction has
emerged as the key differentiator and defining attribute.The study is very much significant
because it brings out the differences in various parameters like awareness, service quality,
problems faced and rationale behind investment between the products of LIC and private
sector companiesand these are the main attributes which build up thecustomer perception and
loyalty towardsa company. The study is significant also because it will help LICto create a
positive impact on its customers by working on its lacking qualities.
1.4 Objectives of the study :
For every problem there is a research. As all the researches are based on some and my study
isalso based upon some objective and these are as follows :I ) To test the awareness of
customers on various aspects of life insurance policies offered by LICand other private sector
insurance companies and find whether there is any relation betweenthem.II ) To study the
service quality being offered by LIC and private sector insurance companies andtest if any
relation exists.III ) To analyze various problems confronted by the policyholders of LIC and
private sector insurance companies and determine the relation between the two.IV ) To
clearly understand the rationale behind the investment in policies of LIC and privatesector
insurance companies.V ) Toanalyze the various aspects of LIC and do a complete SWOT
analysis of the organization.
 Similar to a comparative study on customer perception towards LIC of India in
view of increased competition by private companies a research done in 2009

A STUDY ON CONSUMER PERCEPTION ABOUT LIFE INSURANCE

Customer Satisfaction in LIC



Cosumers Perception Towards Insurance - Project Report

13930379 Perception of Customers Preferences Towards Life Insurance Mutual Fund

and Share Trading

Customer-Satisfaction-in-LIC

 project report on LIC

LIC Customer Satisfaction

 Project Lic Complete

STUDY OF CONSUMERS PERCEPTION ON LIFE INSURANCE POLICIES

 Project on LIC

Lic Project Report by Deependra

 Comparative Study of Services Provided By LIC & ICICI Prudential Life Insurance

A Comparative Analysis between LIC and Private Insurance Companies

 REPORT ON LIC OF INDIA

Competitive Study of LIC vs Private Players in Life Insurance Sector

 Project on LIC India

A Comparative Analysis Between LIC and Private Insurance Companies

 The Study of Consumers Perception in Insurance Industry === Shriram Furtune

Lic Questionnaire

 Consumer Awareness towards Insurance Products

A comparative study on the offerings of Insurance products between LIC

 LIC Project manish

Comparative Study of the Products of HDFC Standard Life Insurance Company and
MetLife India Insurance Company


Customer Satisfaction Survey on Insurance Products of ICICI Prudential

customers perception towards hdfc standard life



LIC

comparative study on LIC vis-a-vis its competitors



Comparative-Study-of-Services-Provided-By-LIC-ICICI-Prudential-Life-Insurance

Comparitive Study ICICI & HDFC



comparative analysis of different insurance products

a comparative study on customer perception towards LIC of India in view of increased

competition by private companies a research done in 2009
 More From This User

brief study on failed products or branding campaigns in marketing

Amfi Fully Solved 500 questions

BROWSE

UPLOAD LIBRARY

of 55
1

SIVA SIVANI
INSTITUTE OF
MANAGEMENT
1

CHAPT
ER -I
1.1 - Intr
oduction
With largest
number of life
insurance
policies in
force in the
world,
Insurance
happens to be
a
megaopportu
nity in India.
Its a business
growing at the
rate of 15-20
%annually
and presently
is of the
order of Rs
450 billion.
Together with
banking
services, it
adds about 7
%to the
countrys GDP.
Gross
premiumcollec
tion is
nearly 2 %of
GDP
and funds
available with
LIC for
investments a
re 8 %of
GDP.Yet,
nearly 80 %of
Indian
population
is without life
insurance cov
er while
health
insurance
and non-
lifeinsurance
continues to
be below
international
standards.
And this part
of the
population is
also subject
toweak social
security and
pension
systems with
hardly any old
age income
security. This
itself is
anindicator
that growth
potential for
the insurance
sector is
immense.A
well-
developed
and evolved
insurance
sector is
needed for
economic
development
as it provides
longterm
funds for
infrastructure
development
and at the
same time
strengthens
the risk taking
ability. It
isestimated
that over the
next ten years
India would
require
investments
of the order of
one trillion
USdollar. The
Insurance
sector, to
some extent,
can enable
investments in
infrastructure
development
tosustain
economic
growth of the
country.The
growing
number
of wealthier as
well as aging
Indian
middleclass is
set to offer a
strong
business
potential for
the countrys
untapped life
insurance
market.Insura
nce is a
federal subjec
t in India.
There are
two legislation
s that
govern the
sector-The
InsuranceAct-
1938 and the
IRDA Act-
1999.The
insurance
sector in India
has come a
full circle from
being an open
competitive
market
tonationalizati
on and back
to a
liberalized
market again.
Tracing the
developments
in the Indian
insurancesect
or reveals the
360
degree turn
witnessed
over a period
of almost two
centuries.As
the twentieth
century has
come to a
close and we
have move
into the third
millennium,
we can
seemany
developments
and changes
taking place
around us
with all the
industries and
firms within
each
SIVA SIVANI
INSTITUTE OF
MANAGEMENT
2industry
trying to keep
pace with the
changes and
diverse needs
of the people.
Though for
decadetogeth
er, marketers
have regarded
customer as
the king and
evolved all
activities to
satisfy him or
her,giving this
concept a
momentum
itis
necessary to
understand
the
Perception
and
Expectations
of
thecustomer
in respect
various
aspects &
attributes so
as to design a
successful
and an
acceptablepro
duct
or service.This
can largely be
attributed to
the prevailing
market
situation. Not
only has
competition
becomeintens
e but over and
above with
the market
being flooded
with many
me-too
products, the
challenge befo
rethe
marketer is to
understand th
e diversity of
consumer
expectations
and offer
goods/service
saccordingly.
Today the
company
image is built
and made
known by its
customers.
Thus the
success of
thefirm will be
determined by
how effective
it has been in
meeting the
diverse
consumer
needs and
wants
bytreating
each
customer as
unique and
offering
products and
services to
suit his or her
needs.Therefo
re today all
the firms are
engaged in a
process of
creating a
lifetime value
and
relationship
withtheir
customers, a
step towards
developing
knowledge
regarding its
customers
needs is the
utmostimport
ant. The
current study
is an attempt
to measure
the various
parameters as
perceived by
thecustomers
and to help
the company
in serving its
customers in a
much better
and efficient
manner.
1.2 - Sco
pe of th
e study
The scope
of the study
lies infinding
out thepercep
tion of
customers in
Lucknowcity t
hroughrespon
ses taken by
300
customers
during a
period of 60
days and
highlightingth
e key areas
which
requiresome
concern on
part ofLICof
Indiaand impr
oving upon w
hich the
company may
strengthen its
customer
base.The
presentstudy,
analysis,
findings and
suggestions
proposed by
the present
researcher wil
l be of
immense use
for future
researcher wit
h similar
studies in
insurancemar
ket.
SIVA SIVANI
INSTITUTE OF
MANAGEMENT
3
1.3Signi
ficance
of the
study :

High
quality produc
ts with quality
support
services both
in terms of
international
standardsandc
ompetitivenes
s have
entered into
our country.
Customer
satisfaction
has emerged
as the key
differentiator
and defining
attribute.The
study is
very much
significant
because it
brings out the
differences in
various param
eters like
awareness,
service
quality,
problems
faced and
rationale
behind
investment
between
the products
of LIC and
private
sector compa
niesand these
are the main
attributes whi
ch build up
thecustomer
perception
and loyalty
towardsa
company. The
study is
significant als
o because it
will help LICto
create a
positive
impact on its
customers by
working on its
lacking
qualities.
1.4
Objectiv
es of
the stud
y:
For every
problem there
is a research.
As all the
researches are
based on
some and my
study isalso
based upon
some
objective and
these are as
follows :I ) To
test
the awareness
of customers
on various
aspects of life
insurance
policies
offered by
LICand other
private sector
insurance
companies
and find
whether there
is any relation
betweenthem.
II ) To study
the service
quality being
offered by LIC
and private
sector
insurance
companies
andtest if any
relation
exists.III ) To
analyze
various
problems
confronted by
the
policyholders
of LIC and
private
sector insuran
ce companies
and determine
the relation
between the
two.IV ) To
clearly
understand
the rationale
behind the
investment in
policies of LIC
and
privatesector
insurance
companies.V )
Toanalyze the
various
aspects of LIC
and do a
complete
SWOT
analysis of the
organization.
SIVA SIVANI
INSTITUTE OF
MANAGEMENT
4
1.5 Revi
ewof Lit
erature
:
1)Retention
of the
Customers is
the essence
of Insurance
business,
Imtiyaz.H
Ltd.VASI
DO,Insurance
Times (Pg
20).Feb
2007-:
Retaining a
customer is
four time
cheaper than
acquiring a
new one. The
retention of
the customers
is of utmost
importance in
the insurance
industry in
specification.
Insurance
business is of
the
relationship b
uilding
process.
wereone
customer
leads to the
building of
other one. A
satisfied
customer is
like a wordof
mouth
advertisement
for the
company. The
needs of the
existing
customers
should be
identified
andsatisfied
well rather
than only
concentrating
at the new
accounts. All
possible
measures
needs to
taken toretain
the customers
as it is lesser
costlier as
well as
provides
stability to the
business .
2) Trends in
Life
Insurance
Business
Unit Linked
Insurance
Plans, IRDA
annual
report 2007-
08,box item
1, page no.
15-:
It wasnt too
long back
when the
good old
endowment
plan was the
preferred way
to insure
oneself agains
t an
eventualityan
d to set
aside some
savings to
meet ones
financial
objectives.
The
traditionalend
owment
policies were
investingfunds
mainly in fixed
interest Gover
nment
securities and
other
safeinvestmen
ts to ensure
the safety of
capital. Thus
thetraditional
emphasis was
always on
security
of capitalrathe
r than yield.
However, with
the
inflationary tr
end witnessed
allover the
world, it
was observed
thatsavings
through life
insurance
were
becoming
unattractive
and
not meeting
theaspirations
of
the policyhold
ers.The
policyholder
found that the
sum assured
guaranteed on
maturity had
really
depreciated in
real
value because
of
thedepreciatio
n in the value
of money. The
investor was
no longer
content with
the so
calledsecurity
of capital
providedunde
r a policy of
life
insuranceand
started
showing a
preference for
higher rate of
return on his
investments
as
also forcapital
appreciation.
It was,
therefore
found
necessary for
theinsurance
companies to
think of a
method
whereby
theexpectatio
n of the
policyholders
could be
satisfied.The
object was to
provide a
hedge against
the inflation
through
acontract of
insurance.
Decline of
assuredreturn
endowment
plans and
opening of the
insurance
sector saw the
advent
ofULIPs on the
domesticinsur
ance
horizon.Today,
the Indian life
insurance
market is
riding high on
the unit linked
insurance plan
s
.
 Similar to a comparative study on customer perception towards LIC
of India in view of increased competition by private companies a
research done in 2009

A STUDY ON CONSUMER PERCEPTION ABOUT LIFE INSURANCE

 Customer Satisfaction in LIC

Cosumers Perception Towards Insurance - Project Report

 13930379 Perception of Customers Preferences Towards Life Insurance Mutual Fund

and Share Trading

Customer-Satisfaction-in-LIC

 project report on LIC

LIC Customer Satisfaction

 Project Lic Complete

STUDY OF CONSUMERS PERCEPTION ON LIFE INSURANCE POLICIES

 Project on LIC

Lic Project Report by Deependra

 Comparative Study of Services Provided By LIC & ICICI Prudential Life Insurance

A Comparative Analysis between LIC and Private Insurance Companies

 REPORT ON LIC OF INDIA

Competitive Study of LIC vs Private Players in Life Insurance Sector

 Project on LIC India

A Comparative Analysis Between LIC and Private Insurance Companies

 The Study of Consumers Perception in Insurance Industry === Shriram Furtune

Lic Questionnaire

 Consumer Awareness towards Insurance Products

A comparative study on the offerings of Insurance products between LIC

 LIC Project manish

Comparative Study of the Products of HDFC Standard Life Insurance Company and
MetLife India Insurance Company


Customer Satisfaction Survey on Insurance Products of ICICI Prudential

customers perception towards hdfc standard life



LIC

comparative study on LIC vis-a-vis its competitors



Comparative-Study-of-Services-Provided-By-LIC-ICICI-Prudential-Life-Insurance

Comparitive Study ICICI & HDFC



comparative analysis of different insurance products

a comparative study on customer perception towards LIC of India in view of increased

competition by private companies a research done in 2009
 More From This User

brief study on failed products or branding campaigns in marketing

Amfi Fully Solved 500 questions

 a comparative study on customer perception
towards LIC of India in view of increased
competition by private companies a research done
in 2009
Jul 31, 2009 by pratiush07

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