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Introduction to the topic
This chapter will outline and overview the research topic and rational of this study, the objectives and the reason for the personal interest of the author for this study and will help readers to understand what is going to follow in this project Insurance is a federal subject in India and has a history dating back to 1818. Life and general insurance in India is still a nascent sector with huge potential for various global players with the life insurance premiums accounting to 2.5% of the country's GDP while general insurance premiums to 0.65% of India's GDP.. The Insurance sector in India has gone through a number of phases and changes, particularly in the recent years when the Govt. of India in 1999 opened up the insurance sector by allowing private companies to solicit insurance and also allowing FDI up to 26%. Definitions and theoretical concept framework Customer loyalty has been examined by many researchers in the past and many of them have given various definitions around this concept. According to Heskett (2002), customer loyalty has been regarded as the sina qua non of an effective business strategy. Dick and Basu (1994, p.99) give a stronger conceptualization for customer loyalty. They view it as the “strength of the relationship between an individual’s relative attitude towards an entity (brand, Products, store, or vendor) and repeat patronage”.
Customer satisfaction What is customer satisfaction? Social psychologists, marketing researchers, and students of consumer behaviour, have extensively studied the concepts of customer satisfaction and dissatisfaction. The increasing importance of quality in both Products and manufacturing industries has also created a proliferation of research, with more than 15,000 academic and trade articles having been published on the topic of customer satisfaction in the past two decades (Peterson and Wilson, 1992). Several conferences have been devoted to the subject and extensive literature reviews have been published (Day, 1977; Hunt, 1977; LaTour and Peat, 1979; Smart, 1982; Ross, et al., 1987, Barsky, 1992: Oh and Parks, 1997) The result of all this research has been the development of nine distinct theories of customer satisfaction. The majority of these theories are based on cognitive psychology, some have received moderate attention, while other theories have been introduced without any empirical research. The nine theories include: expectancy disconfirmation; assimilation or cognitive dissonance; contrast; assimilation-contrast;
equity; attribution; comparison-level; generalized negativity; and value-precept (Oh and Parks, 1997). Recently, numerous researchers have attempted to apply CS theories developed by consumer behaviourists in the areas of lodging (Barsky, 1992; Barsky and Labagh, 1992; Saleh and Ryan, 1991; Ekinci and Riley, 1998), restaurant (Dube et al., 1994; Bojanic and Rosen, 1994; Lee and Hing, 1995; Oh and Jeong, 1996), foodProducts (Almanza et al., 1994), and tourism (Pizam and Milman, 1993; Danaher and Arweiler, 1996; Ryan and Cliff, 1997; Hudson and Shepard, 1998) in order to investigate CS applicability to the hospitality and tourism industries. For several decades the word or concept customer satisfaction was of crucial importance for marketing, managers and the organizations and it is regarded today central issue to many definitions (Parker and Mathews, 2001). The Oxford Library of Words and Phrases (1993) emphasize satisfaction as a “release from uncertainty”. Customer satisfaction can be defined in many ways. Kotler (2000, pg.36) defines customer satisfaction as one of which is “a person's feelings of pleasure or disappointment from comparing a product's perceived performance (or outcome) in relation to his or her expectations”. Another conceptualization given from Homburg et al. (2005) is that customer satisfaction is a cumulative, worldwide assessment based on
different experiences with a firm. Similarly, Kotler (1991) and Fornell (1992) characterized satisfaction as an evaluation of quality of products after customers purchase them and he argues that “high customer satisfaction ratings are widely believed to be the best indicator of a company’s future profits” (Kotler 1991, pg.19). Customer perception of value Theoretical concept framework and definitions The creation of consumer value has been taken into consideration from many managers during the 1990s and it was the result of companies’ need to be more competitive and to fulfill the increasing customer demands (Cravens and Piercy, 2003). Consumer perceived value depends on “how the customer perceives the benefits of an offering and the sacrifice that is associated with its purchase” (Jobber, 2004, pg.13). That’s why, Monroe (1991) and Sweeney (1994) define customer perceived value as the ratio between perceived benefits and perceived sacrifice. Also, Monroe and Chapman (1987) suggest that perceived value is a weighted sum of acquisition and transaction value. “Customer perceived value can be broadly defined as the customer’s overall assessment of the utility of a product based on perceptions of what is received and what is given” (Zeithaml, 1988, p. 14). Importance of customer perception of value Many discounters, retail stores and supermarkets now focus to the offering of value-added Productss and highlight the importance of them to become more
competitive (Kim and Jin, 2002). Examining the effects and impact of consumers’ perception of value, generally value is very important and crucial to marketers for the success of companies (Dodds, 1991; Fredericks and Salter, 1995). The relationship between customer perception of value and customer satisfaction McDougall and Levesque (2000, p. 394) argued that “customers who perceive they received value for money are more satisfied than customers who do not perceive they received value for money”.
Backgrounds of the study
After we have referred to the Introduction (Chapter 1) about the background of this research project and determine the research problem that we are going to analyze, we are moving to the part of the Literature Review. In this chapter we are going to find and say about the relevant past research in regard to our research problem, a fact that will help to the better understanding and clarification of the topic and how we proceed in the next chapters.
Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to
prevent a large, possibly devastating loss. An insurer is a company selling the insurance; an insured is the person or entity buying the insurance. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.
Characteristics of insurance
Commercially insurable risks typically share seven common characteristics.
1. A large number of homogeneous exposure units. 2. Definite Loss. 3. Accidental Loss.
The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be ‘pure,’ in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements, such as ordinary business risks, are generally not considered insurable.
4. Large Loss.
The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims. For small losses these latter costs may
be several times the size of the expected cost of losses. There is little point in paying such costs unless the protection offered has real value to a buyer.
5. Affordable Premium.
If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that anyone will buy insurance, even if on offer. Further, as the accounting profession formally recognizes in financial accounting standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If there is no such chance of loss, the transaction may have the form of insurance, but not the substance. (See the U.S. Financial Accounting Standards Board standard number 113)
6. Calculable Loss.
There are two elements that must be at least estimable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim.
7. Limited risk of catastrophically large losses.
The essential risk is often aggregation. If the same event can cause losses to numerous policyholders of the same insurer, the ability of that insurer to issue policies becomes constrained, not by factors surrounding the individual characteristics of a given policyholder, but by the factors surrounding the sum of all policyholders so exposed. Typically, insurers prefer to limit their exposure to a loss from a single event to some small portion of their capital base, on the order of 5 percent. Where the loss can be aggregated, or an individual policy could produce exceptionally large claims, the capital constraint will restrict an insurer's appetite for additional policyholders. The classic example is earthquake insurance, where the ability of an underwriter to issue a new policy depends on the number and size of the policies that it has already underwritten. Wind insurance in hurricane zones, particularly along coast lines, is another example of this phenomenon. In extreme cases, the aggregation can affect the entire industry, since the combined capital of insurers and reinsurers can be small compared to the needs of potential policyholders in areas exposed to aggregation risk. In commercial fire insurance it is possible to find single properties whose total exposed value is well in excess of any individual insurer’s capital constraint. Such properties are generally shared among several insurers, or are insured by a single insurer who syndicates the risk into the reinsurance market.
The technical definition of "indemnity" means to make whole again. There are two types of insurance contracts; 1. an "indemnity" policy and
2. a "pay on behalf" or "on behalf of" policy.
The difference is significant on paper, but rarely material in practice. An "indemnity" policy will never pay claims until the insured has paid out of pocket to some third party; for example, a visitor to your home slips on a floor that you left wet and sues you for $10,000 and wins. Under an "indemnity" policy the homeowner would have to come up with the $10,000 to pay for the visitor's fall and then would be "indemnified" by the insurance carrier for the out of pocket costs (the $10,000). Under the same situation, a "pay on behalf" policy, the insurance carrier would pay the claim and the insured (the homeowner) would not be out of pocket for anything. Most modern liability insurance is written on the basis of "pay on behalf" language. An entity seeking to transfer risk (an individual, corporation, or association of any type, etc.) becomes the 'insured' party once risk is assumed by an 'insurer', the insuring party, by means of a contract, called an insurance 'policy'. Generally, an insurance contract includes, at a minimum, the following elements: the parties (the insurer, the insured, the beneficiaries), the premium, the period of coverage, the particular loss event covered, the amount of coverage (i.e., the amount to be paid to the insured or beneficiary in the event of a loss), and exclusions (events not covered). An insured is thus said to be "indemnified" against the loss covered in the policy. When insured parties experience a loss for a specified peril, the coverage entitles the policyholder to make a 'claim' against the insurer for the covered amount of loss as specified by the policy. The fee paid by the insured to the
insurer for assuming the risk is called the 'premium'. Insurance premiums from many insureds are used to fund accounts reserved for later payment of claims—in theory for a relatively few claimants—and for overhead costs. So long as an insurer maintains adequate funds set aside for anticipated losses (i.e., reserves), the remaining margin is an insurer's profit.
Insurers' business model
Underwriting and investing
The business model can be reduced to a simple equation: Profit = earned premium + investment income - incurred loss - underwriting expenses. Insurers make money in two ways: (1) through underwriting, the process by which insurers select the risks to insure and decide how much in premiums to charge for accepting those risks and (2) by investing the premiums they collect from insured parties. The most complicated aspect of the insurance business is the underwriting of policies. Using a wide assortment of data, insurers predict the likelihood that a claim will be made against their policies and price products accordingly. To this end, insurers use actuarial science to quantify the risks they are willing to assume and the premium they will charge to assume them. Data is analyzed to fairly accurately project the rate of future claims based on a given risk. Actuarial science uses statistics and probability to analyze the risks associated with the range of perils covered, and these scientific principles are used to determine an insurer's overall exposure. Upon termination of a given policy, the amount of premium collected and the
investment gains thereon minus the amount paid out in claims is the insurer's underwriting profit on that policy. Of course, from the insurer's perspective, some policies are winners (i.e., the insurer pays out less in claims and expenses than it receives in premiums and investment income) and some are losers (i.e., the insurer pays out more in claims and expenses than it receives in premiums and investment income). An insurer's underwriting performance is measured in its combined ratio. The loss ratio (incurred losses and loss-adjustment expenses divided by net earned premium) is added to the expense ratio (underwriting expenses divided by net premium written) to determine the company's combined ratio. The combined ratio is a reflection of the company's overall underwriting profitability. A combined ratio of less than 100 percent indicates underwriting profitability, while anything over 100 indicates an underwriting loss. Insurance companies also earn investment profits on “float”. “Float” or available reserve is the amount of money, at hand at any given moment, that an insurer has collected in insurance premiums but has not been paid out in claims. Insurers start investing insurance premiums as soon as they are collected and continue to earn interest on them until claims are paid out. The Association of British Insurers (gathering 400 insurance companies and 94% of UK insurance services) has almost 20% of the investments in the London Stock Exchange. In the United States, the underwriting loss of property and casualty insurance companies was $142.3 billion in the five years ending 2003. But overall profit for the same period was $68.4 billion, as the result of float. Some
insurance industry insiders, most notably Hank Greenberg, do not believe that it is forever possible to sustain a profit from float without an underwriting profit as well, but this opinion is not universally held. Naturally, the “float” method is difficult to carry out in an economically depressed period. Bear markets do cause insurers to shift away from investments and to toughen up their underwriting standards. So a poor economy generally means high insurance premiums. This tendency to swing between profitable and unprofitable periods over time is commonly known as the "underwriting" or insurance cycle.  Property and casualty insurers currently make the most money from their auto insurance line of business. Generally better statistics are available on auto losses and underwriting on this line of business has benefited greatly from advances in computing. Additionally, property losses in the United States, due to unpredictable natural catastrophes, have exacerbated this trend.
Finally, claims and loss handling is the materialized utility of insurance; it is the actual "product" paid for, though one hopes it will never need to be used. Claims may be filed by insureds directly with the insurer or through brokers or agents. The insurer may require that the claim be filed on its own proprietary forms, or may accept claims on a standard industry form such as those produced by ACORD. Insurance company claim departments employ a large number of claims adjusters supported by a staff of records management and data entry clerks. Incoming claims are classified based on severity and are assigned to
adjusters whose settlement authority varies with their knowledge and experience. The adjuster undertakes a thorough investigation of each claim, usually in close cooperation with the insured, determines its reasonable monetary value, and authorizes payment. Adjusting liability insurance claims is particularly difficult because there is a third party involved (the plaintiff who is suing the insured) who is under no contractual obligation to cooperate with the insurer and in fact may regard the insurer as a deep pocket. The adjuster must obtain legal counsel for the insured (either inside "house" counsel or outside "panel" counsel), monitor litigation that may take years to complete, and appear in person or over the telephone with settlement authority at a mandatory settlement conference when requested by the judge. In managing the claims handling function, insurers seek to balance the elements of customer satisfaction, administrative handling expenses, and claims overpayment leakages. As part of this balancing act, fraudulent insurance practices are a major business risk that must be managed and overcome. Disputes between insurers and insureds over the validity of claims or claims handling practices occasionally escalate into litigation; see insurance bad faith. History of insurance In some sense we can say that insurance appears simultaneously with the appearance of human society. We know of two types of economies in human societies: money economies (with markets, money, financial instruments and so on) and non-money or natural economies (without money, markets, financial instruments and so on). The second type is a more ancient form than the first. In such an economy and community, we can see insurance in
the form of people helping each other. For example, if a house burns down, the members of the community help build a new one. Should the same thing happen to one's neighbour, the other neighbours must help. Otherwise, neighbours will not receive help in the future. This type of insurance has survived to the present day in some countries where modern money economy with its financial instruments is not widespread (for example countries in the territory of the former Soviet Union). Turning to insurance in the modern sense (i.e., insurance in a modern money economy, in which insurance is part of the financial sphere), early methods of transferring or distributing risk were practised by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively. Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practised by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen. Achaemenian monarchs of Iran were the first to insure their people and made it official by registering the insuring process in governmental notary offices. The insurance tradition was performed each year in Norouz (beginning of the Iranian New Year); the heads of different ethnic groups as well as others willing to take part, presented gifts to the monarch. The most important gift was presented during a special ceremony. When a gift was worth more than 10,000 Derrik (Achaemenian gold coin) the issue was registered in a special office. This was advantageous to those who presented such special gifts. For
others, the presents were fairly assessed by the confidants of the court. Then the assessment was registered in special offices. The purpose of registering was that whenever the person who presented the gift registered by the court was in trouble, the monarch and the court would help him. Jahez, a historian and writer, writes in one of his books on ancient Iran: "[W]henever the owner of the present is in trouble or wants to construct a building, set up a feast, have his children married, etc. the one in charge of this in the court would check the registration. If the registered amount exceeded 10,000 Derrik, he or she would receive an amount of twice as much." A thousand years later, the inhabitants of Rhodes invented the concept of the 'general average'. Merchants whose goods were being shipped together would pay a proportionally divided premium which would be used to reimburse any merchant whose goods were jettisoned during storm or sinkage. 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. The Talmud deals with several aspects of insuring goods. 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 Genoa 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. Toward the end of the seventeenth century, London's growing importance as a centre for trade increased demand for marine insurance. In the late 1680s, Edward Lloyd opened a coffee house that became a popular haunt of ship owners, merchants, and ships’ captains, and thereby a reliable source of the latest shipping news. It became the meeting place for parties wishing to insure cargoes and ships, and those willing to underwrite such ventures. Today, Lloyd's of London remains the leading market (note that it is not an insurance company) for marine and other specialist types of insurance, but it works rather differently than the more familiar kinds of insurance. Insurance as we know it today can be traced to the Great Fire of London, which in 1666 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. Benjamin Franklin helped to popularize and make standard the practice of insurance, particularly against fire in the form of perpetual
insurance. In 1752, he founded the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire. Franklin's company was the first to make contributions toward fire prevention. Not only did his company warn against certain fire hazards, it refused to insure certain buildings where the risk of fire was too great, such as all wooden houses. In the United States, regulation of the insurance industry is highly Balkanized, with primary responsibility assumed by individual state insurance departments. Whereas insurance markets have become centralized nationally and internationally, state insurance commissioners operate individually, though at times in concert through a national insurance commissioners' organization. In recent years, some have called for a dual state and federal regulatory system (commonly referred to as the Optional federal charter (OFC)) for insurance similar to that which oversees state banks and national banks.
Types of insurance
Any risk that can be quantified can potentially be insured. Specific kinds of risk that may give rise to claims are known as "perils". An insurance policy will set out in detail which perils are covered by the policy and which are not. Below are (non-exhaustive) lists of the many different types of insurance that exist. A single policy may cover risks in one or more of the categories set out below. For example, auto insurance would typically cover both property risk (covering the risk of theft or damage to the car) and liability risk (covering legal claims from causing an accident). A homeowner's insurance policy in the U.S. typically includes property insurance covering damage to the home and the owner's belongings, liability insurance covering
certain legal claims against the owner, and even a small amount of coverage for medical expenses of guests who are injured on the owner's property. Business insurance can be any kind of insurance that protects businesses against risks. Some principal subtypes of business insurance are (a) the various kinds of professional liability insurance, also called professional indemnity insurance, which are discussed below under that name; and (b) the business owner's policy (BOP), which bundles into one policy many of the kinds of coverage that a business owner needs, in a way analogous to how homeowners insurance bundles the coverages that a homeowner needs.
Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Auto insurance provides property, liability and medical coverage: 1. Property coverage pays for damage to or theft of your car. 2. Liability coverage pays for your legal responsibility to others for bodily injury or property damage. 3. Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses. An auto insurance policy is comprised of six different kinds of coverage. Most countries require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements. Most auto policies are for six months to a year.
In the United States, your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium. 
Home insurance provides compensation for damage or destruction of a home from disasters. In some geographical areas, the standard insurances excludes certain types of disasters, such as flood and earthquakes, that require additional coverage. Maintenance-related problems are the homeowners' responsibility. The policy may include inventory, or this can be bought as a separate policy, especially for people who rent housing. In some countries, insurers offer a package which may include liability and legal responsibility for injuries and property damage caused by members of the household, including pets.
Health insurance policies by the National Health Service in the United Kingdom (NHS) or other publicly-funded health programs will cover the cost of medical treatments. Dental insurance, like medical insurance, is coverage for individuals to protect them against dental costs. In the U.S., dental insurance is often part of an employer's benefits package, along with health insurance. Disability
Disability insurance policies provide financial support in the event the policyholder is unable to work because of disabling illness or injury. It
provides monthly support to help pay such obligations as mortgages and credit cards.
Disability overhead insurance allows business owners to cover the overhead expenses of their business while they are unable to work. Total permanent disability insurance provides benefits when a person is permanently disabled and can no longer work in their profession, often taken as an adjunct to life insurance. Workers' compensation insurance replaces all or part of a worker's wages lost and accompanying medical expenses incurred because of a job-related injury.
Casualty insurance insures against accidents, not necessarily tied to any specific property.
Crime insurance is a form of casualty insurance that covers the policyholder against losses arising from the criminal acts of third parties. For example, a company can obtain crime insurance to cover losses arising from theft or embezzlement. Political risk insurance is a form of casualty insurance that can be taken out by businesses with operations in countries in which there is a risk that revolution or other political conditions will result in a loss.
Life Life insurance provides a monetary benefit to a decedent's family or other designated beneficiary, and may specifically provide for income to an insured person's family, burial, funeral and other final expenses. Life
insurance policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity. Annuities provide a stream of payments and are generally classified as insurance because they are issued by insurance companies and regulated as insurance and require the same kinds of actuarial and investment management expertise that life insurance requires. Annuities and pensions that pay a benefit for life are sometimes regarded as insurance against the possibility that a retiree will outlive his or her financial resources. In that sense, they are the complement of life insurance and, from an underwriting perspective, are the mirror image of life insurance. Certain life insurance contracts accumulate cash values, which may be taken by the insured if the policy is surrendered or which may be borrowed against. Some policies, such as annuities and endowment policies, are financial instruments to accumulate or liquidate wealth when it is needed. In many countries, such as the U.S. and the UK, the tax law provides that the interest on this cash value is not taxable under certain circumstances. This leads to widespread use of life insurance as a tax-efficient method of saving as well as protection in the event of early death. In U.S., the tax on interest income on life insurance policies and annuities is generally deferred. However, in some cases the benefit derived from tax deferral may be offset by a low return. This depends upon the insuring company, the type of policy and other variables (mortality, market return, etc.). Moreover, other income tax saving vehicles (e.g., IRAs, 401(k) plans, Roth IRAs) may be better alternatives for value accumulation. A
combination of low-cost term life insurance and a higher-return tax-efficient retirement account may achieve better investment return.
Property insurance provides protection against risks to property, such as fire, theft or weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, inland marine insurance or boiler insurance.
Automobile insurance, known in the UK as motor insurance, is probably the most common form of insurance and may cover both legal liability claims against the driver and loss of or damage to the insured's vehicle itself. Throughout the United States an auto insurance policy is required to legally operate a motor vehicle on public roads. In some jurisdictions, bodily injury compensation for automobile accident victims has been changed to a no-fault system, which reduces or eliminates the ability to sue for compensation but provides automatic eligibility for benefits. Credit card companies insure against damage on rented cars.
Driving School Insurance insurance provides cover for any authorized driver whilst undergoing tuition, cover also unlike other motor policies provides cover for instructor liability where both the pupil and driving instructor are equally liable in the event of a claim.
Aviation insurance insures against hull, spares, deductibles, hull wear and liability risks.
Boiler insurance (also known as boiler and machinery insurance or equipment breakdown insurance) insures against accidental physical damage to equipment or machinery. Builder's risk insurance insures against the risk of physical loss or damage to property during construction. Builder's risk insurance is typically written on an "all risk" basis covering damage due to any cause (including the negligence of the insured) not otherwise expressly excluded. Crop insurance "Farmers use crop insurance to reduce or manage various risks associated with growing crops. Such risks include crop loss or damage caused by weather, hail, drought, frost damage, insects, or disease, for instance." Earthquake insurance is a form of property insurance that pays the policyholder in the event of an earthquake that causes damage to the property. Most ordinary homeowners insurance policies do not cover earthquake damage. Most earthquake insurance policies feature a high deductible. Rates depend on location and the probability of an earthquake, as well as the construction of the home. A fidelity bond is a form of casualty insurance that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest acts of its employees. Flood insurance protects against property loss due to flooding. Many insurers in the U.S. do not provide flood insurance in some portions of the country. In response to this, the federal government created the National Flood Insurance Program which serves as the insurer of last resort.
Home insurance or homeowners' insurance: See "Property insurance". Landlord insurance is specifically designed for people who own properties which they rent out. Most house insurance cover in the U.K will not be valid if the property is rented out therefore landlords must take out this specialist form of home insurance. Marine insurance and marine cargo insurance cover the loss or damage of ships at sea or on inland waterways, and of the cargo that may be on them. When the owner of the cargo and the carrier are separate corporations, marine cargo insurance typically compensates the owner of cargo for losses sustained from fire, shipwreck, etc., but excludes losses that can be recovered from the carrier or the carrier's insurance. Many marine insurance underwriters will include "time element" coverage in such policies, which extends the indemnity to cover loss of profit and other business expenses attributable to the delay caused by a covered loss. Surety bond insurance is a three party insurance guaranteeing the performance of the principal. Terrorism insurance provides protection against any loss or damage caused by terrorist activities. Volcano insurance is an insurance that covers volcano damage in Hawaii. Windstorm insurance is an insurance covering the damage that can be caused by hurricanes and tropical cyclones.
Liability insurance is a very broad superset that covers legal claims against the insured. Many types of insurance include an aspect of liability coverage. For example, a homeowner's insurance policy will normally include liability coverage which protects the insured in the event of a claim brought by someone who slips and falls on the property; automobile insurance also includes an aspect of liability insurance that indemnifies against the harm that a crashing car can cause to others' lives, health, or property. The protection offered by a liability insurance policy is twofold: a legal defense in the event of a lawsuit commenced against the policyholder and indemnification (payment on behalf of the insured) with respect to a settlement or court verdict. Liability policies typically cover only the negligence of the insured, and will not apply to results of wilful or intentional acts by the insured.
Directors and officers liability insurance protects an organization (usually a corporation) from costs associated with litigation resulting from mistakes made by directors and officers for which they are liable. In the industry, it is usually called "D&O" for short. Environmental liability insurance protects the insured from bodily injury, property damage and cleanup costs as a result of the dispersal, release or escape of pollutants. Errors and omissions insurance: See "Professional liability insurance" under "Liability insurance". Prize indemnity insurance protects the insured from giving away a large prize at a specific event. Examples would include offering prizes
to contestants who can make a half-court shot at a basketball game, or a hole-in-one at a golf tournament.
Professional liability insurance, also called professional indemnity insurance, protects insured professionals such as architectural corporation and medical practice against potential negligence claims made by their patients/clients. Professional liability insurance may take on different names depending on the profession. For example, professional liability insurance in reference to the medical profession may be called malpractice insurance. Notaries public may take out errors and omissions insurance (E&O). Other potential E&O policyholders include, for example, real estate brokers, Insurance agents, home inspectors, appraisers, and website developers.
Credit insurance repays some or all of a loan when certain things happen to the borrower such as unemployment, disability, or death.
Mortgage insurance insures the lender against default by the borrower. Mortgage insurance is a form of credit insurance, although the name credit insurance more often is used to refer to policies that cover other kinds of debt.
Insurance in India
Insurance is a federal subject in India and has a history dating back to 1818. Life and general insurance in India is still a nascent sector with huge potential for various global players with the life insurance premiums
accounting to 2.5% of the country's GDP while general insurance premiums to 0.65% of India's GDP.. The Insurance sector in India has gone through a number of phases and changes, particularly in the recent years when the Govt. of India in 1999 opened up the insurance sector by allowing private companies to solicit insurance and also allowing FDI up to 26%. Ever since, the Indian insurance sector is considered as a booming market with every other global insurance company wanting to have a lion's share. Currently, the largest life insurance company in India is still owned by the government. History of Insurance in India Insurance in India has its history dating back till 1818, when Oriental Life Insurance Company was started by Europeans in Kolkata to cater to the needs of European community. Pre-independent era in India saw discrimination among the life of foreigners and Indians with higher premiums being charged for the latter. It was only in the year 1870, Bombay Mutual Life Assurance Society, the first Indian insurance company covered Indian lives at normal rates. At the dawn of the twentieth century, insurance companies started mushrooming up. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed to regulate the insurance business. The Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. However, the disparage still existed as discrimination between Indian and foreign companies. The oldest existing insurance company in India is National Insurance Company Ltd, which was founded in 1906 and is doing business even today. The Insurance industry earlier consisted of only
two state insurers: Life Insurers i.e. Life Insurance Corporation of India (LIC) and General Insurers i.e. General Insurance Corporation of India (GIC). GIC had four subsidiary companies. With effect from December 2000, these subsidiaries have been de-linked from parent company and made as independent insurance companies: Oriental Insurance Company Limited, New India Assurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited.
The insurance sector went through a full circle of phases from being unregulated to completely regulated and then currently being partly deregulated. It is governed by a number of acts, with the first one being the Insurance Act, 1938. The Insurance Act, 1938 The Insurance Act, 1938 was the first legislation governing all forms of insurance to provide strict state control over insurance business. You can download the act by clicking here Life Insurance Corporation Act, 1956 Even though the first legislation was enacted in 1938, it was only in 19 January 1956, that life insurance in India was completely nationalized, through a Government ordinance; the Life Insurance Corporation Act, 1956 effective from 1.9.1956 was enancted in the same year to, inter-alia, form
LIFE INSURANCE CORPORATION after nationalization of the 245 companies into one entity. There were 245 insurance companies of both Indian and foreign origin in 1956. Nationalization was accomplished by the govt. acquisition of the management of the companies. The Life Insurance Corporation of India was created on 1 September, 1956, as a result and has grown to be the largest insurance company in India as of 2006.
General Insurance Business (Nationalisation) Act, 1972
The General Insurance Business (Nationalisation) Act, 1972 was enacted to nationalise the 100 odd general insurance companies and subsequently merging them into four companies. All the companies were amalgamated into National Insurance, New India Assurance, Oriental Insurance, United India Insurance which were headquartered in each of the four metropolitan cities.
Insurance Regulatory and Development Authority (IRDA) Act, 1999
Till 1999, there were not any private insurance companies in Indian insurance sector. The Govt. of India, then introduced the Insurance Regulatory and Development Authority Act in 1999, thereby de-regulating the insurance sector and allowing private companies into the insurance. Further, foreign investment was also allowed and capped at 26% holding in the Indian insurance companies. In recent years many private players entered in the Insurance sector of India. Companies with equal strength competing in the Indian insurance market. Currently, in India only 2 million people (0.2 % of total population of 1 billion), are covered under Mediclaim, whereas in
developed nations like USA about 75 % of the total population are covered under some insurance scheme. With more and more private players in the sector this scenario may change at a rapid pace.
Existing Insurance Companies/Corporations
• • • • • • • • • • • • • • • • • • • •
Bajaj Allianz Life Insurance Company Limited Birla Sun Life Insurance Co. Ltd KOTAK Life Insurance Co. Ltd ICICI Prudential Life Insurance Co. Ltd. Life Insurance Corporation of India Max New York Life Insurance Co. Ltd Met Life India Insurance Company Ltd. Kotak Mahindra Old Mutual Life Insurance Limited SBI Life Insurance Co. Ltd .Tata AIG Life Insurance Company Limited Aviva Life Insurance Co. India Pvt. Ltd. Sahara India Life Insurance Co, Ltd. Shriram Life Insurance Co, Ltd. Bharti AXA Life Insurance Company Ltd. Future Generali Life Insurance Company Ltd. IDBI Fortis Life Insurance Company Ltd. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd AEGON Religare Life Insurance Company Limited. DLF Pramerica Life Insurance Co. Ltd. Star Union Dai-ichi Life Insurance Comp. Ltd.
So finally below the hypothesis are: KOTAK Life Insurance is preferred because of its returns. Most of the customer are satisfied with KOTAK Life Insurance.
Kotak Mahindra Old Mutual Life Insurance Kotak Mahindra Old Mutual Life Insurance is a joint venture between Kotak Mahindra Bank Ltd., its affiliates and Old Mutual plc. The company is one of the fastest growing insurance companies in India and has shown remarkable growth since its inception in 2001. About Kotak Mahindra Group Kotak Mahindra group is one of India’s leading banking and financial services organizations, with offerings across personal financial services; commercial banking; corporate and investment banking and markets; stock broking; asset management and life insurance. The Kotak Group employs
around 20,000 people and has over 1,350 offices across 370 cities and towns in India. Kotak also has offices in London, New York, San Francisco, Singapore, Dubai and Mauritius. Kotak Mahindra is one of India's leading financial organizations, offering a wide range of financial services that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the diverse financial needs of About Old Mutual Plc. Old Mutual plc is an international savings and wealth management company based in the UK. Originating in South Africa in 1845, it is among the top 50 largest companies in the FTSE100. The group has a balanced portfolio of businesses offering Asset Management, Life Assurance, Banking and General Insurance Services in over 40 countries, with a focus on South Africa, Europe and the United States, and a growing presence in Asia Pacific. Old Mutual plc employs approximately 53,000 employees worldwide and is listed on the London and Johannesburg stock exchanges. Kotak Loan Protection Plan Kotak Loan Protection Plan is a protection plan that helps share the burden of your loan. Kotak Term/Preferred Term Plan The Kotak Term/Preferred Term Plan is a pure risk cover plan that provides you with a high level of protection at nominal costs.
Kotak Eternal Life Plans Kotak Eternal Life Plans are participating whole life plans that provide enhanced protection till the golden age of 99. Kotak Group Shield Kotak Group Shield is a comprehensive solution that helps protect your customer’s assets and savings in the unfortunate event of death, illness or disability. Kotak Group Assure Kotak Group Assure is a comprehensive solution that helps protect your customer’s assets and savings in the unfortunate event of death, illness or disability. Kotak Term Grouplan Kotak Term Grouplan provides life cover for a group of employees, by paying a lump sum benefit to the beneficiary on the unfortunate death of an employee. Kotak Gratuity Grouplan Gratuity management solution manages your gratuity liability effectively but also helps you release resources for your core business activities. Kotak Superannuation Grouplan Kotak Superannuation Grouplan (KSGP) is a uniquely flexible product that addresses the needs of both the employers and the employees.
Kotak Credit-Term Grouplan The Kotak Credit-Term Grouplan, is the right solution to your needs, protecting both your institution's and your customer's interest. Kotak Complete Cover Kotak Complete Cover Grouplan can provide your institution the required value-add to differentiate your products and make them more competitive.
We focus on the needs of our customers and create confidence, trust and loyalty by offering a wide range of innovative insurance solutions. Strengthened by our commitment to professional management, we ensure the continued growth and advancement of our employees.
Kotak Life Insurance has a deep rooted commitment to improve the quality of life of its customers, employees and stakeholders. We aim at improving the long term value in our relationship by continuous innovation and improvements.We do this by our three-prong effort which strives to make Kotak Life Insurance a corporate with values.
Increase Customer Value
Kotak Life Insurance has gone to the heart of its customer's requirements and developed products which are unique and serve the customer needs perfectly. We built a relationship of mutual trust and benefit to serve the Indian customer. At Kotak Life Insurance the customer always comes first.
Cohesive Work Environment
We form long-term partnership with our employees by offering them an invigorating work experience. We not only demand loyalty, sincerity and values but also give it back in equal measures. Kotak Life Insurance will like to offer its employees space to grow, innovate and build a long-term career. Work with Honour Kotak Life Insurance delivers everyday services in the marketplace with the high sense of duty and commitment. Our employees strive to build the longterm value for all those come in contact with Kotak Life Insurance. Our consumers, distributors, employees, shareholders and the nation have our commitment that we will uphold the values of trust, integrity and a Sense of Honour in every thought, act and deed in order to positively contribute to individual, society and nation growth
• • • •
Mr. Gaurang Shah Mr. Pankaj Desai Mr. G Muralidhar -
Director Managing Director Chief Operating Officer
Mr. Subhasish Ghosh - Sr. VP, Financial Institutions Group Mr. Sugata Dutta Head Human Resources
Ms. Elizabeth Venkataraman - Senior Vice
Mr. Andrew Cartwright Mr. Suresh Agarwal -
Head of Alternate channel
• • • • •
Mr. Shekhar Bhandari - Head of Tied channel Mr. Anand Dewan Head Business Impact Group (BIG)
Mr. Sandip Shrikhande -Head of Group Business Mr. Dhiresh Rustogi - Chief Technology Officer Mr. Sudhakar Shanbag Chief InvestmentOfficer
Why Kotak Life Insurance Kotak Mahindra Old Mutual Life Insurance is a joint venture between Kotak Mahindra Bank Ltd. along with its affiliates and Old Mutual plc. Kotak Mahindra Old Mutual Life Insurance is one of the fastest growing insurance companies in India and has shown remarkable growth since its inception in 2001. Kotak Mahindra believes in offering its customers a lifetime of value. A commitment that has made it a leading financial services group with, employing around 10,800 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 300 cities and towns in India and offices in New York, London, Dubai, Mauritius and Singapore. The Group services around 2.6 million customer accounts.
Financial Acumen –
Holds a stable and diversified portfolio and has received some of the highest ratings in financial strength from industry’s independent rating agencies.
Disciplined fund management –
Years of experience in asset management, and a strong track record in managing funds - backed by the acclaimed expertise of Old Mutual plc
Known for being an innovator in providing world-class pragmatic financial solutions, with a constant focus on customization and flexibility
Unrelenting Customer Focus –
A highly committed sales force, with customer satisfaction as the key driving force - a major differentiator Transparency in Services – Daily declaration of fund performances, regular performance benchmarking, well regulated asset management, and monthly newsletter on market updates
Purpose of the study
Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard.
In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms. Organizations are increasingly interested in retaining existing customers while targeting non-customers; measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organization's products. Because satisfaction is basically a psychological state, care should be taken in the effort of quantitative measurement, although a large quantity of research in this area has recently been developed. Work done by Berry (Bart Allen) and Brodeur between 1990 and 1998 defined ten 'Quality Values' which influence satisfaction behavior, further expanded by Berry in 2002 and known as the ten domains of satisfaction. These ten domains of satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front line Service Behaviors,
Commitment to the Customer and Innovation. These factors are emphasized for continuous improvement and organizational change measurement and are most often utilized to develop the architecture for satisfaction measurement as an integrated model. Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the measurer with a satisfaction "gap" which is objective and quantitative in nature. Work done by Cronin and Taylor propose the "confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation of performance) into a single measurement of performance according to expectation. According to Garbrand, customer satisfaction equals perception of performance divided by expectation of performance.
Kotak Realty Funds
Kotak Realty Funds Group (KRFG) is a division of Kotak Investment Advisors Ltd (KIAL) that focuses on Real Estate Investment opportunities. Established in May 2005, it is one of India's first private equity funds, with a focus on real estate and real estate intensive businesses. Our realty investment funds actively consider investment opportunities with the local developers and projects in the residential, commercial and other real estate sectors. Real estate investment funds have a lot of potential, considering the boom in
the property sector, which is expected to continue because of a shortfall in demand and growing incomes. The demand for funds is expected to increase exponentially, and real estate private equity firms will benefit. Kotak realty funds investment aim is to capitalise on this growing opportunity. Kotak Investment Advisors Ltd ("KIAL"), a subsidiary of Kotak Mahindra Bank was set up to focus on managing the Alternate Assets business of the Kotak Group. As part of KIAL, KRFG currently manages 2 funds that are domicile in India and advises one Offshore Fund.
OBJECTIVES OF THE STUDY
OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVES • To analysis the satisfaction level of the customers toward KOTAK life insurance. SECONDARY OBJECTIVES To analysis the customers view toward plans of KOTAK life insurance.
To insurance the insurance need of the customer.
TO study about insurance policy To study about customer perception toward kotak life insurance. To study how insurance policy affect customer perception.
To analysis about schemes provided by kotak life insurance.
SCOPE OF THE STUDY
This project will reveal the customer satisfaction of the BANK. This study will help the companies to improve the brand image the company. Brand image is to make people understand that there is no satisfactory substitute for the Brand which they are offering. Since there are perceptual difference among buyers with regard to market offering the Brand will attract to particular set of customers and not to others.
This chapter will discuss the research design and process, and methodology used in this investigation which can be done in the following manner Research Design and Process Sampling Issues
Types of Research
Type of Data Data Collection Methods
Method Used in this Research
Questionnaire Design and Development
Data Collection Procedure
Limitation of Method
Research Design And Process
In the most elementary sense, the design1 is the logical sequence that connect the empirical data in the study’s initial research questions and ultimately, to its conclusions. The research design is much more a than a work plan. There are three types of research designs, namely: (a) Exploratory (b) Descriptive, (c) Causative Exploratory Research: Exploratory research is conducted when the researcher does not know how and why a certain phenomenon occurs, for example, how does the customer evaluate the quality of a bank, hotel or an airline? While in the case of a manufactured product, quality is assessed on the basis of tangible features, replacement policy, warranty, and so forth in the case of Products, there are no tangibles. To understand this phenomenon, several researchers have conducted focus group discussions to identify these quality parameters. For example, Zeithaml, Parsuraman and Berry identified variables which they clubbed under five groups. In doing so, they used focus groups. Since the prime goal of an exploratory research is to know the unknown, this research is unstructured. Focus groups, interviewing key customer groups, experts and even search for printed or published information are some common techniques.
Descriptive Research: Descriptive research is carried out to describe a phenomenon or market characteristic. For example, a study to understand buyer behavior and describe characteristics of the target market is a descriptive research. Continuing the above example of Products quality, a research done on how customers evaluate the quality of competing Products institutions can be considered as an example of descriptive research. Likewise, research done on media habits and TV viewing habits is an illustration of descriptive research. Generally, descriptive research is carried out only when the researcher understands the phenomena or behavioral characteristics. Causative Research: Causative research is done to establish a cause and effective relationship, for example, the influence of income and life style on purchase decision. Here the researcher may like to see the effect of rising income and changing life style on consumption of select products. He/she may test the hypothesis that as income increases or life-style changes, more elite and state-of-the-art products are likely to be bought. Or in other words, choice of technology is a function of the customer's income and life style. Likewise, a firm may like to test the effect of a 10 percent raise in its product's prices. In a causative research, unlike exploratory or descriptive, hypotheses are tested.
Sampling Issues “Sampling may be defined as the selection of some part of an aggregate or totality on the basis of which a judgment or inference about the aggregate or totality is made” (C.R. Kothari, 2005, p-152). It is the method of obtaining information about a complete population by examining only a part of it. In this research work, the approach has been made to draw inferences based on samples taken from the Indian population. Since India is the second largest populated country in the world so it is next to impossible to take the data from even apart of its population. Hence it is best to adopt the Sampling method. That is why the sample data will enable us to estimate the population parameters. Here care has been taken to select the sample so that it should be truly representative of population characteristics without any bias as a result that it may outcome in valid and reliable conclusions (Research Methodology, C.R. Kothari, 2005). Some of the decisions to be taken here by us is one the most difficult step faced during the entire dissertation are the size of the sample (number of people to be contacted), how their responses will be tabulated, analyzed or interpreted (sample stratification), and how the sample will be drawn (sampling procedure). Determining the Target Population Sampling is intended to gain information about a population. In this study the population is clearly defined as 30 samples from Bhopal. Selecting a Sampling Procedure
According to Fink & Arlene (2002), a researcher should first choose between using a Bayesian procedure and a traditional sampling procedure. Nonprobability sampling- According to Aaker, Kumar & Day (2001), In probability sampling, the theory of probability allows the researcher to calculate the nature and extent of any biases in the estimate and to determine what variation in the estimate is due to the sampling procedure. Convenience Sampling- To obtain information quickly and inexpensively, a convenience sample may be employed. The procedure is simply to contact sampling units that are convenient. Considering various limitations attached with this study like time, cost etc the most appropriate method would be to have a non-probability sample of 30 from Bhopal. Types of Data collected for the Study This research combines both secondary and primary data to achieve research objectives. Collection of Primary Data In descriptive type of research the data is collected through surveys, whether sample surveys or census surveys. In this research the researcher has resorted to sample survey. Then the researcher can obtain primary data either through observation or through direct communication with respondents in one form or another or through personal interviews.
Sampling Issues “Sampling may be defined as the selection of some part of an aggregate or totality on the basis of which a judgment or inference about the aggregate or totality is made” (C.R. Kothari, 2005, p-152). It is the method of obtaining information about a complete population by examining only a part of it. In this research work, the approach has been made to draw inferences based on samples taken from the Indian population. Since India is the second largest populated country in the world so it is next to impossible to take the data from even apart of its population. Hence it is best to adopt the Sampling method. That is why the sample data will enable us to estimate the population parameters. Here care has been taken to select the sample so that it should be truly representative of population characteristics without any bias as a result that it may outcome in valid and reliable conclusions (Research Methodology, C.R. Kothari, 2005). Some of the decisions to be taken here by us is one the most difficult step faced during the entire dissertation are the size of the sample (number of people to be contacted), how their responses will be tabulated, analyzed or interpreted (sample stratification), and how the sample will be drawn (sampling procedure). Determining the Target Population Sampling is intended to gain information about a population. In this study the population is clearly defined as 30 samples from Bhopal.
Selecting a Sampling Procedure According to Fink & Arlene (2002), a researcher should first choose between using a Bayesian procedure and a traditional sampling procedure. Non-probability samplingAccording to Aaker, Kumar & Day (2001), In probability sampling, the theory of probability allows the researcher to calculate the nature and extent of any biases in the estimate and to determine what variation in the estimate is due to the sampling procedure. Convenience SamplingTo obtain information quickly and inexpensively, a convenience sample may be employed.
Types of data collection PRIMARY DATA: The primary data was collected by asking the consumers who come to the authorized service stations for the servicing of their commercial vehicles and also the new customers of the commercial vehicles to fill up the questionnaires by me. It is a very important part of the project as it is only through the properly filled up questionnaires that I can reach to any conclusion from the data which I got from the questionnaires. SECONDARY DATA: Secondary data are the information which is attained indirectly. They are the data collected by someone else and which has already passed through statistical process. There exist two sources of secondary data.
Data analysis & Interpretation
Data analysis and interpretation 1. What type of Products have you taken from KOTAK Life Insurance?
Table No. 1 Protection Plans Children’s Plans Retirement Plans Savings & Investment Plans Health Plans 6 6 3 10 5
12 10 8 6 4 2 0 ? Protection ? Children’s ? Retirement ?Savings & Plans Plans Plans Investment Plans ? Health Plans
Interpretation:It has been found that majority of respondent have use Savings & Investment Plans Products from KOTAK Life Insurance
2. Are you satisfied with the Products provided by KOTAK Life Insurance?
Table No. 2 Option a) Yes b) No Total No. of Respondents 30 0 30
Percentage 100 0 100
100 90 80 70 No. of 60 Responde 50 40 nts 30 20 10 0
a) yes options
Interpretation:-] 100% of respondents satisfied with the Products provided by KOTAK Life Insurance.
How will you rate the Products of KOTAK Life Insurance?
Table No. 3 Option a)Excellent b) Very Good c) Good d) Bad Total
60 50 40 30 20 10 0
No. of Respondents 3 10 17 0 30
Percentage 10 33 57 0 100
b) Very Good
Interpretation: 10% of respondents feel that the Products provided by KOTAK Life Insurance are Excellent where as 33% thinks that they are very good, 57% respondents think that it is good.
What are the responses of the agents? No. of Respondents 4 8 18 0 30 Percentage 13% 27% 60% 0% 100%
Table No.4 Option a)Excellent b) Very Good c) Good d) Bad Total
20 18 16 14 12 No of 10 respondents 8 6 4 2 0 a)Excellent b) Very Good c) Good d) Bad
No of respondents
Interpretation:13% of respondents found that the responses are excellent & 27% of the respondents found it very good, 60% of the respondents is good. No one is with the opinion that the products are of bad quality.
What do you think regarding the personal attention by the agents of
KOTAK Life Insurance towards the customers? Table No. 5 Option a)Excellent b) Very Good c) Good d) Bad Total
16 14 12 10 No of 8 respondents 6 4 2 0 a)Excellent b) Very c) Good Goodoptions d) Bad No of respon dents
No. of Respondents 9 7 14 0 30
Percentage 30% 23% 47% 0% 100%
Interpretation: - 30% of respondents found the personal attention by the agents of KOTAK Life Insurance towards customers are excellent & 23% of the respondents good. found it very good, 47% of the respondents found are
6) What do you think about the returns of different plans of KOTAK Life
Insurance? Table No.6 Option a)Excellent b) Very Good c) Good d) Bad Total
12 10 8 No. of Respondents 6 4 2 0 a)Excellent c) Good Options No. of Respondents
No. of Respondents 11 11 8 0 30
Percentage 37% 37% 26% 0% 100%
Interpretation:- 37% of respondents found the returns of different plans of KOTAK Life Insurance are excellent & 37% of the respondents found it very good, 26% of the respondents found that the returns of different plans of KOTAK Life Insurance is good.
Q7.How will you rate the after sale facilities provided by the KOTAK Life Insurance? Table No.7 Option a)Excellent b) Very Good c) Good d) Bad Total
12 10 8 No. of 6 Respondents 4 2 0 a)Excellent b) Very Good c) Good d) Bad No. of Respondents
No. of Respondents 8 12 10 0 30
Percentage 26% 40% 34% 0% 100%
Interpretation:26% of respondents found the rate after sale facilities provided by the KOTAK Life Insurance are excellent & 40% of the respondents found it very good, 34% of the respondents found the is good.
Are you satisfied with the KOTAK Life Insurance agency/dealer?
Table No.8 Option a)Yes b) No Total No. of Respondents 30 0 30 Percentage 100% 0% 100%
30 25 20 No of 15 Respondents 10 5 0 Yes Options NO
Interpretation:100% respondents are you satisfied with KOTAK Life Insurance agency/dealer.
9. Are you satisfied with the different plans of KOTAK Life Insurance. Table No.9 Option a)Yes b) No Total No. of Respondents 29 1 30 Percentage 97% 3% 100%
30 25 20 No of 15 Respondents 10 5 0 Yes Options NO
Interpretation: 97% respondents are satisfied with the charges of KOTAK Life Insurance where as 3% are not satisfied.
10. How will you rate the overall Products of KOTAK Life Insurance? Table No.10 Option a)Excellent b) Very Good c) Good d) Bad Total No. of Respondents 9 7 14 0 30 Percentage 30% 23% 47% 0% 100%
30 25 20 No of 15 Respondents 10 5 0 Yes Options NO
Interpretation:30% of respondents found the rate the overall Products of KOTAK Life Insurance are excellent & 23% of the respondents found it very good, 47% of the respondents found that the returns of different plans of KOTAK Life Insurance is good.
12. Do you think that KOTAK Life Insurance is preferred because of its returns? Table No.12 Option a)Yes b) No Total No. of Respondents 29 1 30 Percentage 97% 3% 100%
No of Responde nts
25 20 15 10 5 0
Interpretation: 97% respondents think that KOTAK Life Insurance is preferred because of its returns.
OBSERVATIONS & FINDINGS
OBSERVATIONS & FINDINGS
I Interpretation: 10% of respondents feel that the Products provided by KOTAK Life Insurance are Excellent where as 33% thinks that they are very good, 57% respondents think that it is good. Interpretation:- 13% of respondents found that the responses are excellent & 27% of the respondents found it very good, 60% of the respondents is good. No one is with the opinion that the products are of bad quality.
Interpretation: - 30% of respondents found the personal attention by the agents of KOTAK Life Insurance towards customers are excellent & 23% of the respondents found it very good, 47% of the respondents found are good. Interpretation:- 26% of respondents found the rate after sale facilities provided by the KOTAK Life Insurance are excellent & 40% of the respondents found it very good, 34% of the respondents found the is good. Interpretation :- 100% respondents are you satisfied with KOTAK Life Insurance agency/dealer. Interpretation :- 97% respondents are satisfied with the charges of KOTAK Life Insurance where as 3% are not satisfied.
Interpretation :- 30% of respondents found the rate the overall
Products of KOTAK Life Insurance are excellent & 23% of the respondents found it very good, 47% of the respondents found that the returns of different plans of KOTAK Life Insurance is good. Interpretation: - 97% respondents think that KOTAK Life Insurance is preferred because of its returns.
Conclusion & Suggestions
Customer satisfaction is a measure of how products and Products supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. For this we have done project on customer satisfaction of KOTAK Life Insurance. It is found that majority of respondent have use Savings & Investment Plans Products from KOTAK Life Insurance. 97% respondents think that KOTAK Life Insurance is preferred because of its returns. So finally both below the hypothesis are proved: It has been found that majority of respondent have use Savings & Investment Plans Products from KOTAK Life Insurance. 100% of respondents satisfied with the Products provided by KOTAK Life Insurance. 10% of respondents feel that the Products provided by KOTAK Life Insurance are Excellent where as 33% thinks that they are very good, 57% respondents think that it is good. 13% of respondents found that the responses are excellent & 27% of the respondents found it very good, 60% of the respondents is good. No one is with the opinion that the products are of bad quality.
30% of respondents found the personal attention by the agents of KOTAK Life Insurance towards customers are excellent & 23% of the respondents found it very good, 47% of the respondents found are good. 37% of respondents found the returns of different plans of KOTAK Life Insurance are excellent & 37% of the respondents found it very good, 26% of the respondents found that the returns of different plans of KOTAK Life Insurance is good. 26% of respondents found the rate after sale facilities provided by the KOTAK Life Insurance are excellent & 40% of the respondents found it very good, 34% of the respondents found the is good. 100% respondents are you satisfied with KOTAK Life Insurance
agency/dealer. 97% respondents are satisfied with the charges of KOTAK Life Insurance where as 3% are not satisfied. 30% of respondents found the rate the overall Products of KOTAK Life Insurance are excellent & 23% of the respondents found it very good, 47% of the respondents found that the returns of different plans of KOTAK Life Insurance is good. KOTAK Life Insurance is preferred because of its returns. Most of the customer are satisfied with KOTAK Life Insurance.
On the basis of extensive study and research, here are some recommendation and suggestion which may help the company to market the product and service more profitability and increase its share in the insurance market. PROMOTIONAL ACTIVITIES The company expands the budget allocation for promotional campaign in center Bhopal. It has affected the sale service brand image of kotak insurance especially in Bhopal. Low supports in promotion have lead to fluctuation in sale. There may be some useful tools which can be summed as follows:Advertising – Advertising should have a clear objective and message, which has not been found in recent ads. Insurance is a faster growing provider service in each state .every offers and schemes they should show with proper message for benefit to the customer. In busy life customer do not remembered any offers and which service we can provided for the customer therefore they should by force showing advertisement in growing market and among customer. Customers want continuously exposure in Cable and Local newspapers.
Persuasive Advertising: Now there is a need of persuasive advertising for Reliance service which can be moved into the category of “comparative advertising”. It will help the company to establish the superiority of its brand service through specific comparison of one or more attributes and features. Technical Expertise: The advertisement should show the companies expertise, experience and pride in market the product service sale.
Limitation of the study
In this research, researcher may under take some sort of preliminary survey. It could not do in this study. The time devoted in the reviewing of research already on related problem. Studies on related problem are useful for indicating the type of difficulties that may be in countered in the present study as also the possible analytical short coming. At time such study may also suggest useful and even new line of approach to the present problem. After the receiving the questionnaire, The researcher think that some point must be incorporated in this study. what effect is on their business, and what effect on the social status and how much growth is generated in their economy. Time factor save by the consumer. How they spent their time which they have save and what way they utilized. Such type of finding may be asked in the questionnaire.
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Fink, Arlene (2002). How to sample in surveys, Vol. 7. Thousand
Oaks, CA: Sage Publications.
I am a final year student of M.B.A. management, I would like to measure the satisfaction level of customers of “KOTAK LIFE INSURANCE,”. This being a part of my academic requirement. Please answer the following. Your name and details will be kept confidential. Personal Details: NAME : AGE : SEX : QUESTIONS
1) What type of KOTAK Life Insurance Products have you purchase?
Protection Plans Retirement Plans Health Plans 2) Are you satisfied with these Products? Yes No
Children’s Plans Savings & Investment Plans
3) How will you rate the Products of KOTAK Life Insurance? 80
Very Good Bad
4) What is the responses of the agents?
Excellent Good Bad
5) What do you think regarding the personal attention by the by the agents
of KOTAK Life Insurance towards the customers? Excellent Good Very Good Bad
6What do you think about the returns of different plans of KOTAK Life Insurance? Excellent Good Very Good Bad
6) How will you rate the after sale facilities provided by the KOTAK Life
Insurance? Excellent Good Very Good Bad
7) Are you satisfied with the KOTAK Life Insurance agency/dealer?
8) Are you satisfied with the different plans of KOTAK Life Insurance?
How will you rate the overall plans of KOTAK Life Insurance? Excellent Good Very Good Bad
10) Do you think that KOTAK Life Insurance is preferred because of its
returns? Yes No
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