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COMPETITORS
By
[STUDENT NAME]
(Reg. no. )
Of
[COLLEGE NAME]
A PROJECT REPORT
Submitted to the
Of
[UNIVERSITY NAME]
[PLACE]
[YEAR]
TABLE OF CONTENTS
CHAPTER – 1: INTRODUCTION
APPENDIX
Questionnaire I
Bibliography V
ABSTRACT
The sample size for this study is 120. The research design carried out for this study is
descriptive research. Primary data are collected from the clients of various insurance
companies through a structured undisguised questionnaire. Secondary data are gathered
from the websites of [COMPANY NAME] and other companies for the purpose of
making a comparative analysis. Statistical tools like graphs, interval estimation, chi-
square test, H-test, and correlation have been used for the purpose of analysis.
The findings of the study were arrived at based on the analysis conducted. Some of the
major findings of the study relate to increased necessity of having a general insurance
cover, higher reputation enjoyed by [COMPANY NAME] and priority to have auto/car
and health insurance cover by majority of the respondents. Some of the suggestions of the
study are to make amendments in the premium rates, to maintain the promptness in the
claim settlement procedure, to introduce additional insurance covers and create more
awareness about the products.
The study is been concluded that the performance of [COMPANY NAME] is excellent in
comparison with its industrial competitors and that the company has high growth
prospects in future years to come.
LIST OF TABLES
Age of respondents 26
3.2.1
Gender of respondents 27
3.2.2
Occupation of respondents 28
3.2.3
Age of respondents 26
3.2.1
Gender of respondents 27
3.2.2
Occupation of respondents 28
3.2.3
Introduction
The outlook for the general insurance industry in India is stable as per the financial
forecast that has been made. Over the medium and long term, India’s insurance market
will continue to experience major changes as its operating environment increasingly
deregulates. On the one hand, a mix of new products, new delivery system and a greater
awareness of risk will generate growth. On the other hand, the competition is expected to
remain intense as private sector insurers and those about to enter India seek to win market
share from the more established public sector entities.
The Greeks and Romans introduced the origins of health and life insurance c. 600 AD
when they organized guilds called “benevolent societies” which cared for the families
and paid funeral expenses of members upon death. Guilds in the middle Ages served a
similar purpose. Before insurance was established in the late 17th century, “friendly
societies” existed in England, in which people donated amounts of money to a general
sum that could be used for emergencies.
Separate insurance contracts (i.e., insurance policies not bundled with loans or other
kinds of contracts) were invented in Greeks rulers in the 14th century, as were insurance
pools backed by pledges of landed estates. These new insurance contracts allowed
insurance to be separated from investment, a separation of roles that first proved useful in
marine insurance. Insurance became far more sophisticated in post-Renaissance Europe,
and specialized varieties developed. Insurance as we know it today can be traced to the
Great Fire of London, which in 1666 A.D devoured 13,200 houses. In the aftermath of
this disaster, Nicholas Barbon opened an office to insure buildings. In 1680, he
established England’s first fire insurance company, “The Fire Office,” to insure brick and
frame homes.
The first insurance company in the United States underwrote fire insurance and was
formed in Charles Town (modern-day Charleston), South Carolina, in 1732.
In India, insurance has a deep-rooted history. It finds mention in the writings of Manu
(Manusmrithi ), Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra ). The
writings talk in terms of pooling of resources that could be re-distributed in times of
calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to
modern day insurance. Ancient Indian history has preserved the earliest traces of
insurance in the form of marine trade loans and carriers’ contracts. Insurance in India has
evolved over time heavily drawing from other countries, England in particular
Year Event
1818 The advent of life insurance business in India with the establishment of the
Oriental Life Insurance Company in Calcutta.
1834 Oriental Life Insurance Failure
1850 The advent of General Insurance in India with the establishment of Triton
Insurance Company Ltd in Calcutta
1870 The enactment of the British Insurance Act
1912 The Indian Life Assurance Companies Act, 1912 was the first statutory
measure to regulate life business.
1928 The Indian Insurance Companies Act was enacted.
1956 Nationalization of Life Insurance Sector and Life Insurance Corporation .The
LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident
societies.
1971 The General Insurance Corporation of India was incorporated as a company
1973 General insurance business was nationalized with effect from 1st January
1973.
107 insurers were amalgamated and grouped into four companies namely:
1) National Insurance Company Ltd.,
2) The New India Assurance Company Ltd.,
3) The Oriental Insurance Company Ltd
4) The United India Insurance Company Ltd.
1993 The Government set up a committee under the chairmanship of RN Malhotra
former Governor of RBI to propose recommendations for reforms in the
insurance sector
2000 The IRDA was incorporated as a statutory body in April 2000.
Foreign companies were allowed ownership of up to 26%.
2000-01 Insurance Industry had 16 new entrants, 10 in Life and 6 in General Insurance
2001-03 Insurance Industry had 5 new entrants, 2 in Life and 3 in General
2003-04 Insurance Industry had 1new entrant, Sahara India Insurance Company Ltd. In
Life Insurance category
2004-05 Insurance Industry had 1new entrant, Shri Ram Insurance company Ltd. In
Life Insurance category
2005-06 Bharti Axa Life insurance company was granted Certification of Registration
in July
2006 Bharti Axa Life insurance company commenced its operations the newest
player in the insurance sector.
In 1928, prominent insurance men of Bombay met and formed the Indian insurance
companies association to protect the interest of Indian insurers. Leaders of the insurance
industry began to organize conferences, educate public on the benefit of insurance, focus
attention on the annual remove of national wealth through invisible export’s, and arise
public interest in favour of Indian insurance.
In 1950, the planning commission was set up to formulate plans for successive five years.
This five year plan brought about large scale economic development and increased
insurance consciousness among the people. As insurance business increased the number
of claims for compensation against losses also naturally increased. Settlement of too
many large claims meant a severe demand on the funds of insurance companies. So to
prevent this situation the practice of ‘Reinsurance’ was adopted according to which
insurers themselves reinsured portions of the insurances they had undertaken. So Indian
insurance companies with their expanding business wanted to reinsure for which they had
to seek foreign reinsurance markets.
Since the need for conserving foreign exchange was felt in India all the insurers in India
as well as foreigners operating in India formed the India Reinsurance Corporation in
1956. This corporation provided reinsurance facilities. It was compulsory for insurers in
India to reinsure a fixed percentage of their insurances with the corporation.
The Insurance Amendment Act 1950 imposed certain limitations on expenses of
management. The general insurance council constituted what was called the tariff
committee to control and regulate terms and conditions of business.
In 1972, the General Insurance Business (Nationalization) Act 1972 was passed under the
provisions of this act. The general insurance corporation of India was established for the
purpose of directing, controlling and caring on the general insurance business and all the
106 insurers were merged and grouped into four subsidiaries of the general insurance
corporation of India namely:
National Insurance Company Ltd., with its head office at Calcutta.
The New India Assurance Company Ltd., with its head office at Bombay.
The Oriental Insurance company Ltd., with its head office at Delhi.
The United India Insurance Company Ltd., with its head office at Madras.
In the private sector, there were nine players with Future Generali the latest entrant as of
September 2007. A number of potential new entrants await the necessary approvals. Most
private players have tie-ups with international companies to compensate for their lack of
experience in insurance. Within the private sector, ICICI Lombard (IL) leads with 12.4%
market share for the period April-December 2007. Recently, Reliance General Insurance
(RGI) as emerged as the fastest growing player, recording a 150% rise year-on-year in
gross direct premium in the first nine months of 2007-08
[COMPANY NAME] is one of the most well known and oldest insurance companies in
the world, having begun its operations in 1710. With an almost 300 year heritage, RSA is
one of the world’s leading multinational quoted insurance groups. It has the capability to
write business in over 130 countries and with major operations in the UK, Scandinavia,
Canada, Ireland, Asia and the Middle East and Latin America. Focusing on general
insurance, it has around 22,000 employees and in 2007, its net written premium were
£5.8bn
[COMPANY NAME] is a joint venture between [COMPANY NAME] and Royal & Sun
Alliance and in April 2000, a letter of undertaking was signed to establish a joint venture
insurance company. On 28th August 2000 the license application was submitted to the
IRDA and the license was granted to [COMPANY NAME] on 23rd of October 2000 by
the IRDA, making it the first private insurer to obtain a license for conducting in the
Non-Life segment.
[COMPANY NAME] was formally launched as a company on 12th March 2001. Since
then the company have been innovating constantly for its customers. Like being the first
to offer cashless hospitalisation, the first to offer segment specific business solutions, first
to offer co-branded credit cards, first to introduce industry-specific proposition. Their
product range is designed to provide extra cover to a varied range of customers starting
from the common man to corporate conglomerates. The company is now in the eighth
year of operation. The shareholders of [COMPANY NAME] are as follows:
[COMPANY NAME] and Associates 74%
[COMPANY NAME] London 26%
Working from a corporate office in Chennai, [COMPANY NAME] has been carrying out
its business in over 150 cities with four fully operational Regional Centers in Chennai,
Mumbai, Guargon and Kolkata supported by a network of 35 Branch Offices. Each of
these Regional Offices is staffed by a team of insurance professionals responsible for
Customer Servicing, Business Development, Underwriting, Operations and Claims
Management.
Royal [RESPECTIVE COMPANY NAME] brings the golden heritage and reliability
of [COMPANY NAME] (AAA), one of the most respected non-banking financial
institution in India, and RSA, one of the oldest and the second largest general insurer in
the UK.
The coming together of these two financial giants allows them to offer its customers the
best global practices in insurance industry, innovation in terms of products and services,
and unmatched, personalized customer service.
Marine Insurance
[COMPANY NAME] brings to India a wide range of marine cargo products from various
international markets. Their products considerably widen the scope of coverage presently
enjoyed by the insured population without necessarily involving a high premium.
Burglary insurance
Burglary Insurance for machinery, stock in trade, furniture, fixtures & fittings and for
goods held in trust or on commission for the insured is responsible. Burglary Insurance
covers burglary or housebreaking accompanied by either forcible or violent entry
into/exit from the premises and hold-up.
Engineering Insurance:
Marine-Cum-Erection Insurance
Liability Insurance:
It provides indemnity against the Insured's liability at law to the public in general
(excluding employees) for bodily injury and loss of or damage to property due to the
business activities carried on in insured's premises.
Business solutions:
It’s a wide and comprehensive cover for the large sized business where the assets at all
locations of the insured exceed Rs.100 Corers. It is an All Risks Policy covering a wide
range of perils such as fire and allied perils, burglary, accidental damage, breakdown as
well as business interruption.
Office Shield
A flexible policy specifically designed to meet the insurance needs of your modern
office, irrespective of the number of locations.
Hotel Shield
Tailor-made cover designed to suit the specific needs of the Hotel Industry.
Enterprise Shield.
It is a newly devised package providing total insurance solutions for industries. You do
not need to analyze and evaluate a large number of insurance policies to insure your
business completely.
Education Shield
Traders Shield
It is an attractive policy that provides shopkeepers with a basic insurance package and a
further range of optional covers.
It offers an overall solution to cover portable items like laptops, mobiles, cameras and
projectors.
It offers cover against fire and allied perils and the perils of nature. The policy can cover
building (including plinth and foundation), plant and machinery, stocks, furniture,
fixtures and fittings and other contents.
Employee solutions:
It is a worldwide cover providing protection for the employees against any accidental
injuries sustained by the individuals resulting in death and disablement.
Group Health
Health Premium Platinum is a comprehensive health insurance package, designed for the
employees of company and their family members.
Workmen's Compensation
Workmen's Compensation provides cover to target clients as required by law in support
to project insurances or property insurances.
This study helps the company to identify its competitive position among its industrial
competitors by which the company can further improve its performance to enjoy high
reputation among clients.
This study also helps in making necessary changes in the attributes of the insurance cover
offered by the company so that the customers can enjoy the benefits of the insurance
cover.
The need for the study also arises to identify and offer additional insurance products
according to the expectations of the customers.
2.2 OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVES
SECONDARY OBJECTIVES
To find out the strengths and weaknesses of the company’s insurance schemes
To identify the customer’s perception about the company and its products.
2.3 SCOPE OF THE STUDY
This study has a wider scope among the insurance sector. The study which focuses on
various aspects such as competitive position of [COMPANY NAME], strengths and
weaknesses of insurance covers, customer’s perception, etc also holds good for other
companies in the life and non-life insurance segment.
The outcome of the study, which are based on the above aspects can be utilized by
the marketing department of both life and non-life insurance companies.
2.4 LIMITATIONS OF THE STUDY
There were certain limitations in undertaking this research work. As it is understood that
the limitations are a part of the project, they have been overshadowed by the benefits of
the study.
Objectives and the purposes of the study and the questions had to be explained to
the respondents and their responses may be biased.
Only limited sample size had been considered for the study and therefore, the
conclusions drawn based on this may not be a reflection of the entire population.
2.5 REVIEW OF LITERATURE
According to the recent report of Lloyd, the Indian insurance market is likely to change in
the next few years significantly largely due to regulatory changes. In addition, premium
growth is being driven by other factors such as the growing consumer class, increased
foreign direct investment, infrastructure development, and an increased awareness of
catastrophe exposure.
Despite significant positive changes, the insurance market must still face the challenge of
poor customer perceptions and the danger that the pace of reform will slow. Several
significant structural changes are expected in the insurance market that will influence the
country’s development in the medium to long term
So far, the entry of a large number of Indian and foreign private companies has led to
greater choice in terms of products and services for Indian consumers. A growing
realisation of the benefits and importance of sophisticated insurance and reinsurance tools
has broadened the pool of potential buyers of insurance. Given this backdrop, the Indian
insurance market has experienced considerable growth since its liberalisation in 2000.
Over the next three years, the Indian insurance market is likely to see its process of
maturation accelerate. Regulatory changes in the four areas– products, market players,
distribution and reinsurance – will drive change in the Indian insurance market in the
medium term.
• Price competition has already begun to increase and is likely to continue to do so for the
next 18 to 24months.
• As Indian insurers build a profitable portfolio, they are likely to have increased access
to the international reinsurance markets.
• Finally, rising demand for insurance is likely to be met by increased capacity as foreign
insurers look to access this growing market.
As per the recent research by Moody’s – ICRA Global Insurance, the following facts
relating to the performance of both private and public sector general insurance companies
were made.
The private sector share of third party motor business was much lower in the past than
that for public firms as the former did not pursue this market because of its negative
underwriting margins. However, with the formation of the common third party motor
pool, the situation has changed. The losses related to this segment now get shared among
all the players, leaving little incentive to avoid this segment.
Fire and engineering now broadly contribute a similar proportion of overall business for
the private and public sectors. In terms of overall business, the focus has shifted towards
the retail segments of motor and health, where good growth is expected.
Operational Flexibility
The public entities lack the operational flexibility enjoyed by the private players. Their
limited capacity to innovate has impacted their ability to tailor and aggressively price
products for large corporations. The private players by contrast have focused on account-
level profitability for large corporations and have expanded their shares by cross-
subsidizing tariffed products.
Client Servicing
The public insurers have also been hampered in claims servicing by their process oriented
approach and limited operational flexibility. They have been unable to expedite claim
settlements through out-of-court negotiations since a large proportion of their claims
pertain to the third party motor segment, which is subject to adjudication by the Motor
Accident Claim Tribunal. The result is a time-consuming and involved process.
One conclusion is certain– the Indian non-life market is set to grow dramatically over the
next few years. The simplest forecasts suggest that premium income could double in the
next few years to reach USD11.6bn in 2010. When the structural changes above are taken
into consideration, this growth becomes exponential, with relatively slow growth in 2007
rising to rapid growth by 2010.
3.1 RESEARCH METHODOLOGY
RESEARCH DESIGN
Research design is the plan, structure to answer whom, when, where and how the subject
is under investigation. Here plan is an outline of the research scheme & which the
researcher has to work. The structure of the research is a more specific outline and the
strategy out, specifying the methods to be used in the connection & analysis of the data.
DATA COLLECTION
The main source of information for this study is based on the data collection. Data
collected are both primary and secondary in nature.
Primary Data
Primary data have been directly collected from the clients of [COMPANY NAME] as
well from the clients of other insurance companies by survey method through
undisguised structured questionnaire.
Questions like open ended, close ended, multiple choice, dichotomous and ranking type
have been used for the purpose of data collection.
Secondary Data
Secondary data have been collected from official website of [COMPANY NAME] and
also from other official websites related to general insurance industry
TYPES OF QUESTIONS
Likert scale
It uses 5 point or 7 point scale to elicit respondent’s favour or unfavour towards an
object.
Dichotomous question
It consists of two choices of answers in which the respondent has to choose one of them.
Ranking
In ranking, questions will have the ranking skill, which the respondents are free to rank
them according to their preference.
SAMPLING
Convenience sampling is been used in the study. This type of sampling is basically used
when you simply stop anybody in the street who is prepared to stop, or when you wander
round a business, a shop, a restaurant, a theatre or whatever, asking people you meet
whether they will answer your questions. In other words, the sample comprises subjects
who are simply available in a convenient way to the researcher. There is no randomness
and the likelihood of bias is high. You can't draw any meaningful conclusions from the
results you obtain.
However, this method is often the only feasible one, particularly for students or others
with restricted time and resources, and can legitimately be used provided its limitations
are clearly understood and stated.
SAMPLE SIZE
Sample size is the total number of samples selected for the study from the sampling
population. Sample size for the study was arrived at 120 by using the formula:
n = z2 * p * q
e2
n = 1.962 * 0.9143 * .086
0.052
= 120
( p - z √pq ; p + z √pq )
n n
When more than two random samples are given, H-test is used. It is used to test the null
hypothesis that several independent samples come from the same population.
5. PERCENTAGE ANALYSIS
Percentage analysis shows the entire population in terms of percentages.
6. GRAPHS
Graphical method was used in order to represent the factor in various graphical methods
like pie-chart, bar diagram and cylinder.
Findings: The above table shows that 35.83% of the respondents belong to the age group
of less than 25 years, 26.67% fall under the category of 25-35 years, 16.67% belong to
the age group of 35-45 years, 10% belong to the age group of 45-55 years and the rest
10.83% above 55 years
40
35.83
35
30 26.67
25 16.67
No. of
20
respondents 10.83
15 10
10
5
0
Less 25-35 35-45 45-55 Above
than 25 55 yrs
yrs
Age in years
Findings: The above table shows that 67.5% of respondents are male and 32.5% are
female respondents
67.5
70
60
No.of respondents
50 32.5
40
30
20
10
0
Male Female
Findings: The above table shows that 20.83% of respondents belong to the category of
services, 13.33% are government employees, 19.17% belong to the category of business,
15.83% are professional and the rest 30.83% belong to other category, which comprises
of private sector employee
35 30.83
30
No. of respondents
25 20.83 19.17
15.83
20
13.33
15
10
5
0
Service Govt. Business Professional Others
employee
occupation
0
No. of family members
More than 8
24.17
5 to 8
2 to 4 75.83
0 20 40 60 80
No.of respondents
42.5
45
40
35
No. of respondents
30 25.83
25 16.67
20
15 7.5 7.5
10
5
0
Less than Rs.2-5 lakhs Rs.5 -10 Rs.10-20 Above Rs.20
Rs.2 lakhs lakhs lakhs lakhs
Annual Income
Inference: It is inferred that all the respondents surveyed have stated that it is necessary
to have a general insurance cover.
60
60
60
50
40
No.of RSA
30
respondents
Other companies
20
10 0 0
0
yes no
51.67
60
No.of respondents
50
34.17
40
30 14.17
20
10
0
1 2 to 4 More than 4
No.of policies
Findings: The above table shows that 55% of respondents hold general insurance policy
with the same company and 45% of respondents hold it in various other companies.
Inference: It is inferred that a higher percentage (55%) of respondents holds general
insurance policy with the same company.
55
60
45
50
No.of respondents
40
30
20
10
0
Yes No
Formula:
pq
p ± Zα/2
n
No. of respondents who have taken policies from the same company: 66
No. of respondents who have not taken policies from the same company: 54
n = sample size = 120
pq
Interval estimation= p ± Zα / 2
n
= (0.55 ± 1.96(0.0454)
= 0.4610>p>0.639
= 46.1%, 63.9%
Conclusion
Hence, we conclude that the percentage of respondents who have taken policies from the
same company lies between 46.1% to 63.9%
79.63
80
70
No.of respondents
60
50 18.51
40
30 1.851
20
10
0
2 companies 2 to 5 More than 5
companies
Findings: The above table shows that 75% of respondents, who are policy holders with
[COMPANY NAME], have stated that they are aware of various insurance schemes
offered by [COMPANY NAME] and the rest 25% of respondents who are policy holders
with [COMPANY NAME] have stated that they are not aware of all the insurance
schemes offered by the company
Inference: It is inferred that higher percentage (75%) of respondents, who are policy
holders with [COMPANY NAME] are aware of various insurance schemes offered by
the company.
25
Yes
No
75
pq
p ± Zα/2
n
No. of [COMPANY NAME] customers who are aware of various insurance schemes
offered by [COMPANY NAME]: 45
No. of [COMPANY NAME] customers who are aware of various insurance schemes
offered by [COMPANY NAME]: 15
n = sample size = 60
pq
Interval estimation= p ± Zα / 2
n
= (0.75 ± 1.96(0.056)
= 0.64024>p>0.8598
= 64.02%, 85.98%
Conclusion
Hence we conclude that the percentage of respondents aware of various insurance
schemes offered by [COMPANY NAME] lies between 64.02% to 85.98%
3.2.12 TABLE SHOWING RESPONDENT’S OPINION TOWARDS [COMPANY
NAME]’S OFFERING OF CUSTOMER CENTRIC PRODUCTS
Findings: The above table shows that 8.3% of respondents, who are policy holders with
[COMPANY NAME] highly agree, 80% of them just agree, 8.3% of them neither agree
nor disagree and the rest 3.3% of them disagree that [COMPANY NAME] is known for
offering customer-centric products.
Inference: It is inferred that a higher percentage (80%) of respondents, who are policy
holders with [COMPANY NAME] have agreed that [COMPANY NAME] is well known
for offering customer centric products.
Highly disagree 0
Disagree 3.3
Agree 80
0 20 40 60 80 100
No.of respondents
Findings: The above table shows that 38.33% of respondents have indicated the service
of [COMPANY NAME] as excellent, and 50% of them have stated it as very good and
11.67% of them have indicated it as moderate.
60
50
50
No. of respondents
38.33
40
30
20
11.67
10
0 0
0
Excellent Very good Moderate Poor Very poor
Others
0% Ads (print,
radio, TV)
Friends & 35%
Relatives
42%
Insurance
agents
23%
0 10 20 30 40 50 60
No.of respondents
Findings: The above table shows that 35.83% of respondents have been paying insurance
premium less than Rs.5000 yearly, 48.330% of them have been paying premium between
Rs.5000-15000 yearly, 10% of them have been paying between Rs.15000-25000 as
yearly premium and 5.83% of them have been paying more than Rs.25000 as yearly
premium.
R s .15000-25000 10
48.33
R s .5000-15000
0 10 20 30 40 50
No.of respondents
APPLYING KARL PEARSON’S CORRELATION COEFFICIENT BY
COMPARING ANNUAL INCOME AND THE YEARLY PREMIUM AMOUNT
PAID
∑ xy
r = --------------------
_________
√∑x2 - ∑ y2
__ __
x = (X - X) ; y = (Y - Y)
Premium Annual
(X) x x2 income (Y) y y2 xy
43 13 169 31 7 49 91
58 28 784 51 27 729 756
12 -18 324 20 -14 16 72
7 -23 529 9 -15 225 345
0 0 0 9 -15 225 0
∑X = 120 ∑ x2= ∑ Y= 120 ∑ y2= ∑ xy = 1264
1806 1244
__
X = 120 = 30
4
__
Y = 120 = 24
5
1264
r= -------------------------- = .8433
_____________
√1806 * 1244
Conclusion:
The variables annual income and premium amount paid are positively correlated. Hence,
the annual income has an impact on the premium amount paid.
3.2.17 TABLE SHOWING RESPONDENT’S COMMENT ON THE YEARLY
PREMIUM PAID
Findings: The above table shows that 65% of respondents, who are policy holders with
[COMPANY NAME] have stated that the yearly premium paid, is high and the rest 35%
of them have stated it is reasonable. Amongst the respondents, who are policy holders
with other companies 20% of them have stated that the yearly premium being paid is high
and the rest 80% of them have stated that it is reasonable.
no. of respondents
60
50 RS A
40 35
Other Co.
30 20
20
10
0
low
high
very low
very high
reasonable
0 25.925 35.075 0 0
0 14.875 20.125 0 0
0 4.675 6.325 0 0
0 5.525 7.475 0 0
0 0 0 0 0
Formulae:
χ² = ∑ [(Oi – Ei) 2] with n-1 degrees of freedom
i =1 Ei
Oi Ei (Oi-Ei)2 (Oi-Ei)2/Ei
0 0 0 0
27 25.925 1.156 0.0446
34 35.075 1.156 .033
0 0 0 0
0 0 0 0
0 0 0 0
10 14.875 23.766 1.6
25 20.125 23.766 1.18
0 0 0 0
0 0 0 0
0 0 0 0
7 4.675 5.406 1.1564
4 6.325 5.406 .855
0 0 0 0
0 0 0 0
0 0 0 0
7 5.525 2.176 .394
6 7.475 2.176 .291
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
Total 5.554
χ²cal = 5.554
χ²0.05 with (n-1) (n-1) = (5-1) (5-1) = 16
χ²0.05 with 16 d.f = 26.3
χ²cal < χ²0.05
Hence, we accept ho
Conclusion:
We conclude that there is no significant difference between premium and period of
general insurance policy.
3.2.18 TABLE SHOWING THE SATISFACTORY LEVEL OF RESPONDENTS
TOWARDS THE POLICY TAKEN
Findings: The above table shows that among policy holders of [COMPANY NAME]
13.3% of them are highly satisfied with the policy taken, 78.3% of them are just satisfied
and the rest 8.3% of them are neither satisfied nor dissatisfied with the policy taken.
Among policy holders of other companies, 8.3% of them are highly satisfied, 88.3% of
them are highly satisfied and the rest 3.35% of them are neither satisfied nor dissatisfied
with the policy taken.
Inference: It is inferred that among the policy holders of Royal Sundarm, higher
percentage (78.3%) of them feel that they are satisfied and 13.3% of them are highly
satisfied with the policy taken. Among other policy holders, a higher percentage (88.3%)
of them also feels that they are satisfied and 8.3% of them feel that they are highly
satisfied with the policy taken.
100
88.3
90 78.3
80
no. of respondents
70
60
RSA
50
Other Co.
40
30
20 13.3
8.3 8.3
10 3.3 0 0 0 0
0
satisfactory
satisfactory
dissatisfactory
dissatisfactory
dissatisfactory
satisfactory
highly
neither
highly
nor
APPLYING CHI-SQUARE TEST BY COMPARING SATISFACTORY LEVEL
TOWARDS GENERAL INSURANCE POLICY TAKEN AND THE YEARLY
PREMIUM PAID
Ho: There is no significant difference between yearly premium paid and satisfactory
level towards general insurance policy taken
H1: There is a significant difference between yearly premium paid and satisfactory
level towards general insurance policy taken
Table of expected frequency:
Expected Value = row total * column total
Grand total
Formulae:
χ² = ∑ [(Oi – Ei) 2] with n-1 degrees of freedom
i =1 Ei
Oi Ei (Oi-Ei)2 (Oi-Ei)2/Ei
3 4.6583 2.75 0.5903
38 35.83 4.7089 0.1314
2 2.5083 0.2584 0.1030
0 0 0 0
0 0 0 0
0 6.283 39.48 6.283
57 48.3 75.69 1.57
1 3.383 5.68 1.68
0 0 0 0
0 0 0 0
7 1.3 32.49 24.99
3 10 49 4.9
2 .07 3.725 53.214
0 0 0 0
0 0 0 0
3 .7583 5.025 6.63
2 5.83 14.67 2.5163
2 .4083 2.5335 6.205
0 0 0 0
0 0 0 0
Total 108.813
χ²cal = 108.813
χ²0.05 with (n-1) (n-1) = (5-1) (4-1) = 12
χ²0.05 with 12 d.f = 21.0
χ²cal > χ²0.05
Hence, we reject ho
Conclusion:
We conclude that there is a significant difference between yearly premium paid and
satisfactory level towards general insurance policy taken.
Findings: The above table shows that 51.67% of respondents among both [COMPANY
NAME] and other companies have insurance agents and the rest 48.33% of respondents
among both [COMPANY NAME] and other companies do not have an insurance agent.
51.67
51.67
52
51
No.of respondents
50
48.33 48.33 RSA
49
Other companies
48
47
46
yes no
Formula:
pq
p ± Zα/2
n
pq
Interval estimation= p ± Zα / 2
n
= (0.5166 ± 1.96(0.0456)
= 0.4272>p>0.606
= 42.72%, 60.6%
Conclusion
Hence we conclude that the percentage of respondents having insurance agents lies
between 42.72% to 60.6%
Findings: The above table shows that 25.8% of respondents among [COMPANY
NAME] and 6.5% of respondents among other companies have indicated that the
guidance rendered by their insurance agent is excellent, 64.5% of respondents among
[COMPANY NAME] and 51.6% of respondents of other companies have indicated that
it is very good and the rest 9.7% of respondents from [COMPANY NAME] and 41.9% of
respondents from other companies have indicated that it is moderate.
60 51.6
Findings: The above table shows that 100% of respondents, who are policy holders with
[COMPANY NAME] and 100% respondents, who are policy holders with other
companies have stated that their claims were not rejected by the insurance companies.
Inference: It is inferred that all the respondents, who are policy holders with
[COMPANY NAME] as well with other companies have indicated that their claims were
not rejected by the insurance companies.
100 100
100
90
80
No.of respondents
70
60
RSA
50
40 Other companies
30
20 0
0
10
0
yes no
Formulae:
Average score = [(R1*8 + R2*7 + R3*6 + R4*5 + R5*4 + R6*3 +R7*2 + R8*1)]
Total weights
Sample calculation:
Average score = [(85*8 + 17*7 + 9*6 +5*5 + 0*4 + 1*3 + 2*2 + 1*1)]
36
= 24.61
Findings: The above table clearly shows that while selecting a particular insurance
company to take a policy, majority of the respondents look out for reputation of the
company first, secondly they look out for excellent service/responsiveness of the
company, thirdly proper claim settlement of the company followed by good schemes, low
premium rates, others good experience, and easy accessibility.
Inference: It is inferred that majority of respondents would first look out for the
reputation of the company. Hence it is ranked first.
30
24.61
25
No.of respondents
21.7
18.94
20
15.5 15.306
15 12.17
10.14
10
3.53
5
0
service/Responsiveness
experience of others
Reputation
Good schemes
Others
Heard of good
Excellent
70
no. of respondents
62 Satisfied
58
60
Neither satisfied nor
50
41 dissatisfied
39
40 Dissatisfied
30 26
21 21 Highly dissatisfied
20 13
9 910 7 7
10
10 3
0 10 0 0 20
0
Claim settlement
Money back
Larger risk
Easy access to
Low premium
coverage
guarantee
agents
Ho: Respondent’s satisfaction level towards all the attributes of general insurance cover
taken is the same
H1: Respondent’s satisfaction level towards all the attributes of general insurance cover
taken is not the same.
Conclusion
Hence, we conclude that the respondent’s satisfaction level towards all the attributes of
general insurance cover taken is the same.
Findings: The above table shows that 25.83% of respondents would prefer Ads, 36.67%
of them prefer insurance agents, 35% of them prefer Friends & relatives, and the rest
2.5% of them would prefer other sources like company websites, SMS, etc, in order to
know about an insurance company and its products.
40
36.67
35
35
No.of respondents
30
25.83
25
20
15
10
5 2.5
0
Ads (print, radio & Insurance agents Friends & Relatives Others
TV)
Formulae:
Average score = [(R1*8 + R2*7 + R3*6 + R4*5 + R5*4 + R6*3 +R7*2 + R8*1)]
Total weights
Sample calculation:
Average score = [(85*8 + 15*7 + 4*6 + 16*5 + 0*4 + 0*3 + 0*2 + 0*1)]
36
= 24.7
Findings: The above table clearly shows that auto/car insurance is been ranked I by
majority of respondents, health insurance ranked II, hospital cash insurance ranked III
followed by personal accident insurance, householder’s insurance, travel insurance,
shopkeeper’s insurance and other insurance (fire insurance, marine, rural insurance, etc)
which are ranked as IV, V, VI, VII and VIII respectively.
Inference: It is inferred that auto/car insurance is the most favored insurance cover
among majority of respondents.
30
24.7
25 23.306
No.of respondents
19.94
20 17.67
15 12.72
9.9
10 8.25
4.72
5
0
insurance
insurance
Hospital cash
insurance
insurance
Others
Householder’s
Shopkeeper’s
Personal
Auto/car
accident
Travel
Health
insurance
insurance
insurance
3.3 FINDINGS
It is found that there is a higher percentage (i.e. 35.83%) of respondents in the age
group of less than 25 years and comparatively very lower percentage (i.e. 10%) of
respondent belongs to the age group of 45-55 years.
Majority of the respondents (i.e.30.83%), who has taken general insurance cover
are private sector employees.
It is implied that all the respondents surveyed have stated that it is necessary to
have a general insurance cover.
It is evident from the study conducted that majority (51.67%) of the respondents
holds at least 1 general insurance policy.
The study discloses that 55% of respondents hold general insurance policy with
the same company and the rest 45% of respondents hold it in various other
companies.
From the analysis made it is inferred that the percentage of respondents who have
taken policies from the same company lies between 46.1% and 63.9%.
It is inferred that a higher percentage of respondents (79.63%) are policy holders
in at least 2 companies, while18.52% of respondents are policy holders in 2-5
companies and the rest 1.85% of respondents are policy holders in more than 5
companies.
Majority of respondents (i.e., 75%), who are policy holders with [COMPANY
NAME] have stated that they are aware of various insurance schemes offered by
the company.
Majority of respondents (i.e., 80%), who are policy holders with [COMPANY
NAME] have agreed that [COMPANY NAME] is well known for offering
customer centric products.
It is inferred that a higher percentage (50%) of respondents have indicated that the
service rendered by [COMPANY NAME] as very good, while 38.33% of
respondents have indicated the service of [COMPANY NAME] as excellent, and
the rest 11.67% of them have indicated it as moderate.
The study implies that a higher percentage (41.67%) of respondents has indicated
friends and relatives, while 35% of respondents have indicated advertisement and
the rest 23.33% of them have stated insurance agents as means by which they
came to know about [COMPANY NAME]
Among the respondents, who has taken general insurance cover it is inferred that a
higher percentage (50.83%) of respondents holds annual policy.
Among the respondents, who are holding general insurance cover it is found that a
higher percentage of respondents (48.3%) have been paying yearly insurance
premium between Rs.5000-15000
With the application of Karl Pearson’s Correlation Coefficient it is found that the
variables annual income and premium amount paid are positively correlated.
Among the policy holders of [COMPANY NAME], 65% of them feel that the
premium being paid is high and among the policy holders of other companies only
20% have stated it as high.
According to the chi – square test conducted, it is found that there is no significant
difference between premium and period of general insurance policy.
It is inferred from the study that among the policy holders of Royal Sundarm,
higher percentage (78.3%) of them feel that they are satisfied and 13.3% of them
are highly satisfied with the policy taken. Among other policy holders, a higher
percentage (88.3%) of them also feels that they are satisfied and 8.3% of them feel
that they are highly satisfied with the policy taken.
It is found that there is a significant difference between yearly premium paid and
satisfactory level towards general insurance policy taken, as per the chi-square test
conducted.
The study conducted reveals that a higher percentage (51.67%) of policy holders
among both [COMPANY NAME] and other companies has insurance agents.
It is found that the percentage of respondents having insurance agents lies between
42.72% and 60.6%, according to the analysis conducted
It is found that a higher percentage of respondents from both [COMPANY
NAME] (64.5%) and from other companies (51.6%) have indicated that the
guidance rendered by their insurance agent is very good.
It is inferred that all the respondents, who are policy holders with [COMPANY
NAME] as well with other companies have indicated that their claims were not
rejected by the insurance companies.
According to the result of the H-test, it is found that the respondent’s satisfaction
level towards all the attributes of general insurance cover taken is the same.
3.4 SUGGESTIONS
The present scenario demands almost all the customers to have a general insurance
cover in order to protect from future uncertainty. The company always has an
opportunity to grow and expand its operations in the non-life insurance segment.
Hence, the company can seize this opportunity and pay attention to introduce more
insurance covers to cater to the needs of various classes of people.
Majority of the respondents, who are policy holders with [COMPANY NAME] have
felt that the premium being paid is comparatively higher with the premium rates of
other insurance companies. Hence, amendments can be made in this regard by
offering insurance cover at reasonable premium rates to the customers.
The company has to focus more on the auto/car insurance segment and health
insurance segment. Majority of the respondents have preference towards auto/car
insurance as it is a must to have insurance for their vehicles by law. Therefore, the
company has got enough opportunities to earn huge profits from both these
segments.
The company can create more awareness about its products among potential
customers by means of advertisements and efficient insurance agents, which in turn
will help in increasing its customer base.
3.5 CONCLUSIONS
The study was conducted to compare the performance of [COMPANY NAME] with its
industrial competitors. The study has been able to accomplish its objectives, by
thoroughly analyzing and identifying the competitive position of [COMPANY NAME],
strengths and weaknesses of various insurance covers among the clients of various
insurance companies, customer’s awareness and perception about the company and its
products. The company may highly be benefited by the outcome of this study.
The outcome of the study has proved that the performance of the company is outstanding
in comparison with other competitors in the non-life insurance segment and that the
company has a higher reputation among customers.
It is concluded that the company could initiate various steps based on the
recommendations given in this report. The company by adopting some of the
recommendations, if not all, can further improve its performance and occupy a leading
position among other competitors in the non-life insurance market in future years to
come.