A

SUMMER TRAINING PROJECT REPORT

ON
CONSUMER BEHAVIOR ON LIFE INSURANCE
PNB METLIFE

Submitted in partial fulfillment of the

requirement of Bachelor of
Commerce (BCOM (H))
Guru Gobind Singh Indraprastha
University, Delhi

Session 2020-21

Under the Guidance of Submitted by

Mr. Shivam Agarwal Apurva Dhar
(Assistant Professor) BCOM (H)- V Sem
Enrollment
No.42925588818

JIMS ENGINEERING MANAGEMENT TECHNICAL CAMPUS

48/4 Knowledge Park III, Greater Noida-201306 (U.P.)
 DECLARATION

I hereby declare that this Summer Training Report titled CONSUMER BEHAVIOUR TOWARDS
LIFE INSURANCE submitted by me to JEMTEC, Greater Noida is a bonafide work undertaken
during the period from 20.5.2020 to 20.7.2020 by me and has not been submitted to any other
University or Institution for the award of any degree diploma / certificate or published any time
before.

(Signature of the Student) Date: / / 2020

Name: Apurva Dhar

Enrollment No.: 42925588818

i
 CONTENTS

S. Topic Page No
No.
1 Declaration i

2 Bonafide Certificate ii

3 Acknowledgement iii

4 Company Summer Internship Certificate iv

5 Executive Summary v

6 Chapter-1: Introduction 1

7 Chapter-2: Company Profile 2-14

• Overview of Industry as whole
• Profile of the Organization
• Problems of the organization
• Competition information
• S.W.O.T. Analysis of the company
8 Chapter-3: Literature Review 15-23

9 Chapter-4: Research Methodology 24-27

• Overview of the Project
• Research Design and Collection of Data
• Objectives of the study
• Limitations pf the study
• Data Sources
10 Chapter-5: Data Analysis and Presentation / Study of topic 28-41

11 Chapter-6: Finding and Conclusions 42

12 Chapter-7: Conclusion 43-44

13 Annexure 45-47
14 Bibliography 48
 BONAFIDE CERTIFICATE

This is to certify that as per best of my belief the project entitled “CONSUMER BEHAVIOUR
TOWARDS LIFE INSURANCE” is the bonafide research work carried out by Apurva Dhar
(42925588818) student of BCOM (H), JEMTEC, Greater Noida, in partial fulfillment of the
requirements for the Summer Training Report for the Degree of Bachelor of Commerce.

She has worked under my guidance.

I wish her a success in all his/her future career endeavors

Shivam Agarwal
( Assistant Professor)

Signature with Date

ii
 ACKNOWLEDGEMENT

I offer my sincere thanks and humble regards to JEMTEC, Greater Noida for
imparting us very valuable professional training in BCOM (H).

I pay my gratitude and sincere regards to Mr Shivam Agarwal, my project Guide for
giving me the cream of his knowledge. I am thankful to him/her as he/she has been a
constant source of advice, motivation and inspiration. I am also thankful to him/her
for giving his suggestions and encouragement throughout the project work.

I take the opportunity to express my gratitude and thanks to our computer Lab staff
and library staff for providing me opportunity to utilize their resources for the
completion of the project.

I am also thankful to my family and friends for constantly motivating me to complete the
project and providing me an environment, which enhanced my knowledge.

Date:
Name: Apurva Dhar
Enrollment No. : 42925588818
Course: B.Com H (V Sem)

(Signature of the student)

iii
 Executive Summary

The aim and objective of the project is to behavior towards life insurance during the clients
search.
The PNB MetLife companies are a leading innovator and a recognized leader in protection,
planning and retirement and savings solutions around the world. Around the world, the
PNB MetLife companies offer life, accident, retirement and savings and reinsurance
products through agents, third-party distributors, such as banks and brokers etc.
My area of research was consumer behavior towards life insurance. I have chosen this
topic (project) because fulfilling brand image needs of the people is a major task, slight
improvement of which will lead to an increase customer base and higher customer
retention ratio which will lead to an increase in company’s sales and an enhanced brands
image.

v
 CHAPTER 1: INTRODUCTION
Life is full of risk and uncertainties. Since we are the social human being we have certain
responsibilities too. Indian consumers have big influence of emotions and rationality on
their buying decisions. They believe in future rather than the present and desire to have a
better and secured future, in this direction life insurance services have its own value in
terms of minimizing risk and uncertainties. Indian economy is developing and having
huge middle class societal status and salaried persons. Their money value for current
needs and future desires here the pendulum moves to another side which generate the
reasons behind holding a policy. Here the attempt has been made in this research paper to
study the buying behavior of consumers towards life insurance services.
As a human being every person have the risk from one or other source. At the same time,
being individual he has the responsibilities to discharge. Indian consumers are influenced
by emotional factors. But the same time their purchase behavior is influenced by rational
factors. A Typical Indian believes in future and try to have better and secured life for his
family in future. A rupee earned by the person will be spent towards leading the family in
present and for the better life in future. Life insurance covers both the components viz.,
risk coverage and saving. As the economy comprises of people in which majority of them
are middle classed and salaried, Insurance has emerging as the best option for saving and
risk coverage. But in India insurance is frequently well thought-out as a tax saving tool
instead of its additional implied long term financial benefits. Indian people are
predisposed to invest in property and gold followed by bank deposits. They selectively
invest in shares also but the percentage is extremely small study the buying behavior of
company.
Life insurance is a tool used for mitigating financial risk arising due to the untimely death
of the main bread earner of the family. It mitigates the financial risk for an individual or
household by pooling and redistributing of risk among a large group of people. The
motives for purchase of life insurance have been researched in the framework of classical
as well as behavioral economics.

1
 CHAPTER 2: COMPANY PROFILE

OVERVIEW OF INDUSTRY AS WHOLE

Insurance industry: It comprises of all the insurance companies active in a particular
country. It offers risk management against contingency or uncertain losses.
There are common terms includes in the industry:
1. The entity which offers insurance is called an insurer and the person who buys
insurance is called insured.
2. The insured pays a small premium to the insurer, in return for covering a major
loss. Insurance industry has played an important role in developing the habit of
savings among the general public.
Moreover, insurance classifieds into 5 major subcategories
1. Health Insurance
2. Agricultural Insurance
3. Marine Insurance
4. Vehicle Insurance
5. Life Insurance
The insurance sector is made up of companies that offer risk management in the form of
insurance contracts. The basic concept of insurance is that one party, the insurer, will
guarantee payment for an uncertain future event. Meanwhile, another party, the insured or
the policyholder, pays a smaller premium to the insurer in exchange for that protection on
that uncertain future occurrence.

As an industry, insurance is regarded as a slow-growing, safe sector for investors. This

perception is not as strong as it was in the 1970s and 1980s, but it is still generally true
when compared to other financial sectors.

 The insurance industry is made up of different types of players operating in

different spaces.
 Life insurance companies focus on legacy planning and replacing human capital
value, health insurers cover medical costs, and property, casualty, or accident
insurance is aimed at replacing the value of homes, cars, or valuables.
 Insurance companies can be structured either as a traditional stock company with
outside investors or mutual companies where policyholders are the owners.
Not all insurance companies offer the same products or cater to the same customer base.
Among the largest categories of insurance companies are accident and health insurers;
property and casualty insurers; and financial guarantors. The most common types of
personal insurance policies are auto, health, homeowners, and life. Most individuals in the
United States have at least one of these types of insurance, and car insurance is required by
law.
Accident and health companies are probably the most well-known. These include
companies such as UnitedHealth Group, Anthem, Aetna and AFLAC, which are designed
to help people who have been physically harmed.
Life insurance companies mainly issue policies that pay a death benefit as a lump sum
upon the death of the insured to their beneficiaries. Life insurance policies may be sold as
term life, which is less expensive and expires at the end of the term or permanent (typically
whole life or universal life), which is more expensive but lasts a lifetime and carries a cash
accumulation component. Life insurers may also sell long-term disability policies that
replace the insured's income if they become sick or disabled. Well-known life insurers
include Northwestern Mutual, Guardian, Prudential, and William Penn.
Property and casualty companies insure against accidents of non-physical harm. This can
include lawsuits, damage to personal assets, car crashes and more. Large property and
casualty insurers include State Farm, Nationwide and Allstate.
Businesses require special types of insurance policies that insure against specific types of
risks faced by a particular business. For example, a fast-food restaurant needs a policy that
covers damage or injury that occurs as a result of cooking with a deep fryer. An auto dealer
is not subject to this type of risk but does require coverage for damage or injury that could
occur during test drives.
There are also insurance policies available for very specific needs, such as kidnap and
ransom (K&R), medical malpractice, and professional liability insurance, also known
as errors and omissions insurance.
Some companies engage in reinsurance to reduce risk. Reinsurance is insurance that
insurance companies buy to protect themselves from excessive losses due to high
exposure. Reinsurance is an integral component of insurance companies' efforts to keep
themselves solvent and to avoid default due to payouts, and regulators mandate it for
companies of a certain size and type.
For example, an insurance company may write too much hurricane insurance, based
on models that show low chances of a hurricane inflicting a geographic area. If the
inconceivable did happen with a hurricane hitting that region, considerable losses for the
insurance company could ensue. Without reinsurance taking some of the risks off the table,
insurance companies could go out of business whenever a natural disaster hits.
The Insurance industry in India has seen an array of changes in the past one decade. The
economic scenario which emerged after globalization, privatization and liberalization has
thrown a new challenge before the insurance sector. Insurance is a protection against
economical losses arising due to an unexpected event. In any type of insurance coverage
claim settlement plays very important part .claim settlement is an integral part of the
insurance business. A claim settlements an agreement between two or more parties to settle
a legal claim with payment and other terms. The most common form of claim settlement
involves an insurance claims. An insurance claim is the only way to officially apply for
benefits under an insurance policy. The customers know well about their rights and
remedies, availability of various grievance Redresses mechanisms, progressive
decontrol...The present study attempts customer perception on claim settlement services in
life insurance companies. LIC of India is still leading life insurance provider. Due to strong
management framework of claims settlement. Insurance industries in India nowadays have
taken a giant shape especially after privatization and introduction of insurance regulatory
and development authority (IRDA). The claim intimation should consist of basic
information such as policy number, name of the insured, death of date, cause of death,
name of the claimant etc. As the regulation 8 of the IRDA Regulation, 2002. The insurer is
required to settle a claim with in 30day’s of receipts of all documents including
clarification sought by the insurer. If the claim requires further investigation, the insurer
has to complete its procedure within 6 months from receiving the written intimation of
claim. The payment by the insurer to the insured on the date of maturity is called maturity
payment. The amount payable at the time of the maturity includes a sum assured and
bonus/incentives, and it is to be returned to the office along with original policy document,
ID proof, Age proof if age is not already submitted, and any copy of climates’ Bank book
cancelled cheque. The life insurance policy can be attached with different rider like
accidental rider, critical illness rider, Hospital cash rider, waiver of premium rider etc for
critical illness, necessary medical documents such as first investigation report, Doctor
Prescription, Discharge summary etc are required. For accidental disability rider, attested
copy of FIR, Doctor Certificate of disability, original medical bills with
prescription/treatment papers etc are required.
PROFILE OF THE ORGANISATION
PNB MetLife India Insurance Company Limited (PNB MetLife) is a joint venture
Between MetLife International Holdings Inc. (MIHI), Punjab National Bank Limited
(PNB), Jammu & Kashmir Bank Limited (JKB), M. Pallonji and Company Private Limited
and other private investors, with MIHI and PNB being the majority shareholders. PNB
MetLife was previously known as MetLife India Insurance Company Limited (MetLife
India) and has been present in India since 2001. PNB MetLife brings together the financial
strength of a leading global life insurance provider, MetLife, Inc., and the credibility and
reliability of PNB, one of India's oldest and leading nationalized banks. The vast
distribution reach of PNB together with the global insurance expertise and product range
of MetLife makes PNB MetLife a strong and trusted insurance provider. PNB MetLife is
present in over 150 locations across the country and serves customers in more than 7,000
locations through its bank partnerships with PNB, JKB and Karnataka Bank Limited.
PNB MetLife provides a wide range of protection and retirement products through its
Agency sales of over 10,000 financial advisors and multiple bank partners, and provides
access to Employee Benefit plans for over 800 corporate clients in India. With its
headquarters in Bangalore and Corporate Office in Gurgaon, PNB MetLife is one of the
fastest growing life insurance companies in the country.
Organized by a group of New York City businessmen in 1863, the National Union Life
and Limb Insurance Company began business in July 1864 insuring Civil War sailors
and soldiers against wartime-related disabilities. It was a difficult beginning. By the end of
1864, National Union had written only 17 life and 56 accident policies, and was in last
place among the 27 life companies operating in New York State and was running a deficit
of PNB (Punjab National Bank) has always been a people’s bank since its inception in
1895 and is serving millions of customers in India currently. PNB is known to have served
famous personalities like Lal Bahadur Shastri, Smt. Indira Gandhi and many more. PNB is
a well- known brand of providing various types of financial services like drafts, loans, etc.,
among Indian customers and is famous due to its strong fundamentals, a huge franchise
value, loyal word of mouth and a brand value which has helped the company come a long
way and maintain its position even at the time of cut-throat competition of private and
public sector enterprises. Apart from these achievements, the bank also has its foreign
presence in countries like United Kingdom (U.K), Hongkong, Dubai. As per fortune 500
India ranking of 2019, PNB stands at 32nd rank.
MetLife, Inc., the holding corporation for the Metropolitan Life Insurance Company,
popularly known as MetLife, was founded in 1868. MetLife is one of the largest global
providers of insurance,
annuities, and employee benefit programs and asset management with a customer base of
around 90 million in over 60 countries including United States, Japan, Europe and so on.
MetLife is serving almost 90 of the World’s TOP 100 Fortune Companies including
Walmart, P&G, Pepsi, Microsoft, IBM and many more. The product variety of the
company comprises of Unit Linked Group and other traditional products which are almost
half of their basket. MetLife has always been profitable in its business apart from some ups
and downs in its trajectory of becoming successful.
PNB MetLife’s vision of being the leading global life insurance and employee benefits
company guides the company’s response to people’s growing need for first-rate financial
products and services through various life stages and economic cycles. PNB MetLife’s
trusted brand, capital strength, and existing relationships with millions of individual and
institutional customers around the globe uniquely position PNB MetLife among its
competitors.

Core Values
1. Put Customer First: Caring for and respecting customers is core to everything PNB
MetLife does. It defines their work and shapes the culture for their people, radiating out to
their shareholders and communities.
2. Be the Best: PNB MetLife is relentless in their search for new and better ways of doing
things. Being the leader of the industry, they operate in, they try to constantly raise the bar,
take calculated risk, and learn from their mistakes and try not to repeat them by working
on them.
3. Make Things Easier: The finance industry is very volatile and complex. Hence, PNB
MetLife is always at the lookout of finding new, simpler, interactive and creative ways to
connect to the customers to provide them best solutions. They believe that they can build
trust into their customers by making things easier for them
4. Succeed Together: United by their purpose, PNB MetLife live by a collective
commitment to honesty, integrity and diversity.
Products and Plans:
A. Life Insurance Products The Company has over 15 insurance benefit plans to
help its customers in all the stages of their life from childhood till death and
benefits for the family after death. These plans also come up with riders (ad on
benefits) that a customer/ investor can alter according to his/ her needs. Out of the
numerous plans, I got the opportunity to learn and work on 3 of the best plans
which PNB MetLife offers. The plans are briefed below.

 PNB MetLife Guaranteed Income Plan- In this plan, the insured gets regular
annual income ranging from 11% to 13% of Basic Sum Assured (BSA), based on
the Premium Payment Term. Also, in addition to the guaranteed income benefit,
insured get 30% to 55% of Basic Sum Assured (BSA) on Maturity, based on the
policy term. The policy also includes death benefits wherein 30% to 55% of Basic
Sum Assured (BSA) on Maturity, based on the policy term is given.
 PNB MetLife Super Saver Plan- This participative plan comes with three
different types of plan options saving and a waive off rider can also be added under
this plan. Plan options are Savings + Family Care and Savings + Health Care
Option. This plan has maturity benefit, death benefit and critical illness add on
benefit.
 PNB MetLife Group Term Life Insurance Plan- This plan is a group term life
insurance policy that’s not only convenient but also provides cover against death
and protects the family.

B. Monthly Income Protection Plans:

 Met Family Income Protector Plans Throughout your life, you have provided
comfort, happiness and protected your loved ones emotionally and financially.
But, there are times when you ask yourself “what if I am not around to take care of
my family? Have I secured my loved ones financially? Can I plan for the financial
security of my family? Presenting, PNB MetLife’s term assurance plan, that
protects your family from financial uncertainties by providing them regular
monthly income and help you secure their future in an economical way!

C. Retirement Plans:
 Met Monthly Income Plan PNB MetLife offers 'Met Monthly Income Plan' a
participating plan which guarantees you a monthly regular income for you and
your family when you are there and even if you are not there for 15 years or till
end of
 the policy term. Moreover you choose the monthly income that you want and we
guarantee you That amount
A plan which provides for your retirement needs and helps you achieve financial
freedom - 'Guaranteed'.

D. Money Back Plans:

 Met Money Back Plan It is the small happy moments spent with family and loved
ones that stay with us for a life time. And it is these small moments that add up to
make our life’s journey happy and fulfilling. These precious moments become
more memorable when you are financially equipped to enjoy them. Our money
back plan with its feature of money back at regular intervals works to make your
moments even more memorable. This plan gives you a double benefit of
guaranteed money back at regular intervals along with protection in case of an
unforeseen eventuality.

E. Investment Plans:

 Met Smart Platinum a Unit Linked Whole life plan for your changing life stage
needs. Along with 6 Unit Linked Funds & investment strategies like auto
rebalancing and Systematic Transfer Option, this plan has free unlimited switches
online, which allows you to manage your investments with changing market
conditions.
 Met Easy Super A simplified Unit linked plan for your wealth creation needs.
WithSystematic Transfer Option and unlimited switches online one canefficiently
manage investment between 6 unit linked funds.
 Met Dhan Samriddhi Being prosperous, you have cherished the best in life. So
your financial planning has to be truly best in class and provide you with the
greatest value for your hard earned savings. With this objective in mind, we
present, Met Dhan Samriddhi life insurance plan exclusively for preferred
customers like you.This plan helps you maximize your wealth through reasonable
charges on the premium paid and through the consistent # performance of our
funds.

F. Child Plans
 Met Smart Child Today, your role in your child’s life extends from being a
provider
 to a nurturer, a mentor and a friend. You are a part of your child’s dreams and
rising aspirations - the one responsible to ensure that your child gets what they
aspire for. This decision requires you to plan and be prepared for tomorrow. Our
specially designed child plans takes care of the ever changing requirements of your
child, be it the rising education cost, financial planning for his extracurricular
developments or marriage. We understand each of your roles and participate with
you to realize your child’s dream.

G. Saving Plan
 Met Endowment Saving Plan All through your life, you have certain
responsibilities; your children’s education, marriage expenses and many more such
expenses. Our Met Endowment Savings Plan provides you the benefit of systematic
long term savings, while offering your family the protection. Through systematic
savings, you can accumulate a corpus for your future goals

H. Rural Plan
 Met Grameen Ashray Plan.
Met Grameen Ashray protects your family from any uncertainties of life. You enjoy life
cover for a period of 5 years at a reasonable price and the plan takes care of your family in
your absence.
PROBLEMS OF THE ORGANISATION
E-insurance is facing challenges with its format: E-insurance is a step in the right
direction by the regulator (Insurance Regulatory and Development Authority of India or
IRDAI). The recently issued guidelines are also helping to build traction towards the same.
At this stage, the key challenge is with the format. The current format needs to enable
customers to make policy-level changes like nominee addition or change, request options
such as fund switch, etc. Currently, the customers can only view policy details and update
contact details. As an industry, we all need to come together and build awareness among
the masses about e-insurance. There has been a lot of work and effort by the regulator and
the industry to sensitise customers about the protection aspect of insurance. The
regulations also ensure that for customers to avail tax benefits, the sum assured or life
cover has to be at least 10 times the annual premium. We promote need-based selling and
encourage our sales force to ensure that the customer has at least one pure term plan in his
financial portfolio. In addition, we have been conducting insurance awareness workshop in
rural India to educate people about the importance of financial protection through
insurance.
Each bank has a different level of maturity on cross-selling third-party solutions to its
customers. Therefore, this regulation to allow the banks to choose their 'open architecture'
model is a step in the right direction. We would also be exploring tie-ups to increase our
distribution footprint.
COMPETITION INFROMATION

• BAJAJ ALLIANZ: Bajaj Allianz General Insurance received an Insurance

Regulatory and Development Authority of India (IRDAI) certificate of registration
on 2 May 2001 to conduct general insurance business, including health insurance,
in India. In the first year of its operations the company had 36 offices and around
100 employees. The company started its operations with a paid up capital of ₹1.10
billion. Bajaj Fiserv Limited holds 74% and the remaining 26% is held by Allianz
SE. Bajaj Allianz is headquartered in Pune with offices in over 200 cities in India
and more than 3,500 employees as of 2018.

• BIRLA SUNLIFE: Aditya Birla Sun Life Asset Management Company

Ltd. (ABSLAMC) formerly known as Birla Sun Life Asset Management Company
Limited, is an investment managing company registered under the Securities and
Exchange Board of India. It is a joint venture between the Aditya Birla
Group of India and the Sun Life Financial Inc. of Canada. The company offers
sector specific equity schemes, fund of fund schemes, hybrid and monthly income
funds, debt and treasury products and offshore funds

• LIC: Life Insurance Corporation of India (abbreviated as LIC) is an Indian state-

owned insurance group and investment corporation owned by the Government of
India.
The Life insurance Corporation of India was founded on September 1, 1956, when
the Parliament of India passed the Life Insurance of India Act that nationalized the
insurance industry in India. Over 245 insurance companies and provident societies
were merged to create the state-owned Life Insurance Corporation of India.

• HDFC STD. LIFE INSURANCE: It is a long-term life insurance provider with

its headquarters in Mumbai, offering individual and group insurance services. The
company is a joint venture between Housing Development Finance Corporation
Ltd (HDFC), one of India's leading housing finance institutions and Standard Life
Aberdeen plc, a global investment company. As on 31 March 2020, the promoters;
HDFC Ltd. and Standard Life (Mauritius Holdings) 2006 Ltd. hold a 51.4% and
 12.3% stake in HDFC Life respectively. The remaining equity is held by public
shareholders.

• BHARTI AXA LIFE INSURANCE CO. LTD.: Bharti Axa General Insurance
Company Ltd. is a joint venture between Bharti Enterprises and Axa business
Group that operates in India. Bharti Enterprises shares 51% stake in the venture
while Axa Group shares 49% stake. The company offers general insurance
products to retail and commercial clients. Bharti Axa General Insurance started its
operations in India from August 2008. Currently, it has 104 branches around the
country. It is headed by Sanjeev Srinivasan, who is CEO and the Managing
Director. In August 2020, leading private general insurer, ICICI Lombard acquired
Bharti Axa General Insurance in a share swap deal.

• RELIANCE LIFE INSURANCE: Reliance Nippon Life Insurance

Company (RNLI) is one of the life insurance companies in India. The firm offers
life insurance products targeted at individuals and groups, catering to four distinct
segments: protection, children, retirement and investment plans.

• ICICI PRUDENTIAL: it is a life insurance company in India. Established as a joint

venture between ICICI Bank and Prudential plc ICICI Prudential is engaged in life
insurance and asset management business. The firm offers long term life insurance
plans and is headquartered in Mumbai. In 2016, the firm became the first insurance
company in India to be listed in the domestic stock exchanges.

• KOTAK MAHINDRA OLD MUTUAL: It is a private Life Insurance company

in India. The company was founded in 2001. It caters to 15 million customers has
232 branches in around 167 cities and towns in India with 99,275 agents. Under the
umbrella, the company offers various protection plans, savings and investment
plans, child plans and retirement plans.
• AVIVA LIFE INSURANCE CO.: Aviva India is an Indian life assurance
company, and a joint venture between Aviva plc, a British assurance company,
and Dabur Group, an Indian conglomerate. Aviva began operations in July 2002 as
a joint venture with Dabur Group, one of India’s oldest business houses. As per the
Indian insurance sector regulations, Aviva plc has a 49% stake and Dabur has a
51% stake in the JV partnership

• TATA AIG: Tata AIG General Insurance Company Limited is an Indian general
insurance company and a joint venture between the Tata Group and American
International Group (AIG).Tata Group holds a 74 percent stake in the insurance
venture with AIG holding the balance of 26 percent. Tata AIG General Insurance
Company, which started its operations in India on 22 January 2001, provides
insurance to individuals and corporates. It offers a range of general insurance
products including insurance for automobile, home, personal accident, travel,
energy, marine, property and casualty as well as specialized financial lines. The
company's products are available through distribution channels
like agents, brokers, banks (through bank assurance tie ups), and direct channels
like telemarketing, digital marketing, worksite etc.

• MAX NEW YORK: Max Life Insurance Company Limited (formerly known
as Max New York Life Insurance Company Limited) is a life insurance company
in India. The company is a subsidiary of the publicly listed Max Financial
Services and is the largest non-bank private-sector life insurer in India. It was
founded in 2000 after the liberalization of the insurance sector in India and its
operations began in 2001. Analjit Singh, founder of Max Healthcare, is the
chairman of Max Life Insurance the Company is headquartered at New Delhi.
SWOT ANANLYSIS OF COMPANY
Strength:
• Highly experienced employees

• Customized product

• Provide good services to the customers

• High quality training programmers

Weakness:

• Less faith of people in private insurance sector.

• Low retention rate of employees.

• The main weakness of this company is that people are not aware regarding this
business so this company takes lot of time to aware the people regarding this
company .Sometime the agents in order to get high commission they made fool of
their customer about the return.

Opportunities:

• Company is open to expanding into new markets

• New related products

• Acquisitions

Threats:

• Increase in competition

• Mutual Funds

• Economic Conditions
 CHAPTER 3: LITERATURE REVIEW

Life insurance is a tool used for mitigating financial risk arising due to the untimely death
of the main bread earner of the family. It mitigates the financial risk for an individual or
household by pooling and redistributing of risk among a large group of people. The
motives for purchase of life insurance have been researched in the framework of classical
as well as behavioral economics.
These have been discussed briefly below:
Rational and Behavioral Theories in Insurance Economics
In classical economics theory, the decision to purchase insurance is treated as a rational
choice made by consumers who try to maximize their lifetime utility under wealth and
information constraints. Motives for taking insurance may include risk minimization,
investment motives and bequest motives. Lifetime utility is expressed as a function of
desired bequest amounts, wish to delay consumption to a later time (such as retirement)
and returns on savings (where insurance acts as an investment vehicle). These utility
functions (which may also have some stochastic component depending on the expected
probabilities associated with untimely demise) are optimized to maximize the total lifetime
utility [see Yaari (1965), Fischer (1973), Karni and Zilcha (1986), Bernheim (1991)]. It is
presumed that consumers are rational and capable of understanding and processing all
relevant information regarding their choices.
Several studies observed a departure from rational behavior when individuals make
choices under risk and uncertainty. Slovic et al. (1977) found that people buy more
insurance for a high probability low-loss event than a low probability high-loss event, and
do not buy insurance for an event which has a probability below a certain threshold.
Auerbach and Kotlikoff (1989) found that a significant proportion of American
housewives had insufficient life insurance coverage. Wekkar et al. (1997) and Zimmer et
al. (2009) found that people do not favor default risk in an insurance policy and demand a
high reduction in the insurance premium to compensate for the default risk. Kunreuther
and Pauly (2004) found that people do not buy insurance for low probability high loss
events even when insurance premiums are actuarially fair. All these findings are contrary
to standard insurance models.
Behavioral Models of Insurance Purchase
In the following section we discuss some notable studies which looked at life insurance
purchase from behavioral view point. These include studies where theory of reasoned
action
and theory of planned behavior were applied to predict life insurance purchase behaviors.
Insurance Purchase - Behavioral and Psychographic Factors
Ferber and Lee (1980) studied life insurance purchase among young married couples. They
found that the financial status is the primary determinant of life insurance purchase. They
also found that certain behavioral and attitudinal factors such as spending and saving
practices and attitude towards saving influence the life insurance purchase behavior.
Burnett and Palmer
(1983) in a study with consumer panel data of American south western city found that,
insurance agent significantly influence the purchase of insurance. They found that people
who have a relationship with insurance agents buy large amount of insurance and consider
insurance to be very important. Zhang (2007) in China found that the extent of financial
worry, economic condition, health status and knowledge of life insurance have the
significant influence on intention to purchase life insurance. Li et al. (1996) found that a
significant proportion of the respondents purchase life insurance as a favor toward the
insurance sales agents in Taiwan. Gotllieb (2012) analyzed insufficient insurance among
working class, excessive insurance among older people and simultaneous holding of life
insurance and annuity. Using a prospect theory-based model he concluded that insurance
buying behavior departed significantly from the standard economic model. He also argued
that people may not purchase life coverage even when insurance premiums are actuarially
fair.
Insurance Purchase - TRA and TPB
There have been a few studies that have looked at the insurance purchase decision through
the lens of the theory of reasoned action and the theory of planned behavior. In one of the
earliest such study, Fletcher & Hastings (1983, 1984) discussed the validity and relevance
of Theory of Reasoned Action in purchase of life insurance purchase behavior. They found
that attitude had a significantly larger effect on insurance purchase intention than
subjective norms. They also discuss several issues about the applicability of TORA/TOPB
models to insurance purchase. these include (i) most consumers do not know much about
insurance,
(ii) it is not a hedonic product and hence does not generate much interest ("necessary evil"),
(iii) the decision to buy insurance is not given much time or consideration, (iv) it is done
quickly when the need arises or when the insurance agent makes contact and (v) forgotten
thereafter.
Omar (2007) used the theory of reasoned action (TRA) to study life insurance purchase
behavior in Nigeria. They found that life insurance purchase intention is influenced by
beliefs rather than the attitude. They also argued that lack of confidence in the insurance
companies have a negative effect on life insurance purchase. Risk ignorance and family’s
financial support affect the purchase intention negatively. Omar and Frimpong (2007)
found that normative factors influence the intention to take life insurance policies in
Nigeria. They argue that 47 increase in the consumer consciousness and inadequate
welfare schemes were encouraging the growth of life insurance market in Nigeria. Rahim
and Amin (2011) studied the factors influencing the acceptance of Islamic insurance
(Takaful) among Malaysian bank customers under the framework of the theory of reasoned
action. They found that attitude, subjective norm, and amount of information are
influential predictors of Islamic insurance. Husin and Rahman (2013) examined the
intention toward participation in family Takaful scheme under the framework of the theory
of planned behavior. They also found the moderating effects of several consumer specific
factors such as demographic variables, consumer knowledge, situational factors and
consumer level of religiosity.
Kurland (1995) did a comparative study to analyze the explanatory power of the theory of
reasoned action and the theory of planned behavior among U.S. based financial service
agents. They also proposed a modified version of the theory of planned behavior by
introducing a measure of moral obligation and concluded that inclusion of this factor
improves the model's predictability of insurance agents’ ethical intentions. Haron, Ismail
and Razak (2011) studied unethical behavior of insurance agents in Malaysia; they found
that attitude and subjective norms mediate the relationship between supervisor’s influence
and sales target on agent’s intention to perform unethical behavior.
Customers’ classification: Customers can be classified in the following manner:
I. Need based:
 Investment,
 Market profile users.
 Future security.
 Future need.

II. Class based:

 High class.
 Middle class.
 Lower middle class.
 Consumer Behavior
Customer behavior study is based on consumer buying behavior, with the customer
playing the three distinct roles of user, payer and buyer. Research has shown that
consumer behavior is difficult to predict, even for experts in the field. Relationship
marketing is an influential asset for customer behavior analysis as it has a keen interest in
the re-discovery of the true meaning of marketing through the re-affirmation of the
importance of the customer or buyer. A greater importance is also placed on consumer
retention, customer relationship management, personalization, customization and one-to-
one marketing. Social functions can be categorized into social choice and welfare
functions. It blends elements from psychology, sociology, social anthropology, marketing
and economics. It attempts to understand the decision-making processes of buyers, both
individually and in groups such as how emotions affect buying behavior.
“In simpler words a consumer is one who consumes goods and services available in the
market.”

Two different kinds of consuming entities:

 Personal Consumer: Buys goods and services for his or her own use, for the use
of the household or as a gift for a friend. The products are bought for final use by
individuals, who are referred to as end users or ultimate consumers.
 Organizational Consumer: Includes profit and non-profit businesses, government
agencies (local, state, national) and institutional (e.g. schools, hospitals, and
prisons), all of which buy products, equipment, and services in order to run their
organizations.

Factors influencing consumer behavior:

i. CULTURAL FACTORS
ii. SOCIAL FACTORS
iii. PERSONAL FACTORS
iv. PSYCHOLOGICAL FACTORS

CULTURAL FACTORS: Culture is crucial when it comes to understanding the needs

and behaviors of an individual. Throughout his existence, an individual will be influenced
by his family, his friends, his cultural environment or society that will “teach” him values,
preferences as well as common behaviors to their own culture. For a brand, it is important
to understand and take into account the cultural factors inherent to each market or to each
situation in order to adapt its product and its marketing strategy. As these will play a role
in the perception, habits, behavior or expectations of consumers.

 Sub-cultures A society is composed of several sub-cultures in which people can

identify. Subcultures are groups of people who share the same values based on a
common experience or a similar lifestyle in general. Subcultures are the
nationalities, religions, ethnic groups, age groups, gender of the individual, etc. The
subcultures are often considered by the brands for the segmentation of a market in
order to adapt a product or a communication strategy to the values or the specific
needs of this segment
 Social classes: Social classes are defined as groups more or less homogenous and
ranked against each other according to a form of social hierarchy. Even if it’s very
large groups, we usually find similar values, lifestyles, interests and behaviors in
individuals belonging to the same social class. We often assume three general
categories among social classes: lower class, middle class and upper class. People
from different social classes tend to have different desires and consumption
patterns. Disparities resulting from the difference in their purchasing power, but not
only. According to some researchers, behavior and buying habits would also be a
way of identification and belonging to its social class
 .Cultural trends: Cultural trends or “Bandwagon effect” are defined as trends
widely followed by people and which are amplified by their mere popularity and by
conformity or compliance with social pressure. The more people follow a trend, the
more others will want to follow it. They affect behavior and shopping habits of
consumers and may be related to the release of new products or become a source of
innovation for brands. By social pressure, desire to conformity or belonging to a
group, desire to “follow fashion trends” or simply due to the high visibility
provided by media, consumers will be influenced, consciously or unconsciously, by
these trends. For example, Face book has become a cultural trend. The social
network has widely grew to the point of becoming a must have, especially among
young people.
 SOCIAL FACTORS

 Reference groups and membership groups: The membership groups of an

individual are social groups to which he belongs and which will influence him. The
membership groups are usually related to its social origin, age, place of residence,
work, hobbies, leisure, and etc. The influence level may vary depending on
individuals and groups. But is generally observed common consumption trends
among the members of a same group. The understanding of the specific features
(mindset, values, lifestyle, etc.) of each group allows brands to better target their
advertising message. More generally, reference groups are defined as those that
provide to the individual some points of comparison more or less direct about his
behavior, lifestyle, desires or consumer habits. They influence the image that the
individual has of himself as well as his behavior. Whether it is a membership group
or a non-membership group. Within a reference group that influences the consumer
buying behavior, several roles have been identified:
 The initiator: the person who suggests buying a product or service
 The influencer: the person whose point of view or advice will influence the buying
decision. It may be a person outside the group (singer, athlete, actor, etc.) but on
which group members rely on it
 The decision-maker: the person who will choose which product to buy. In general,
it’s the consumer but in some cases it may be another person. For example, the
“leader” of a soccer supporters’ group (membership group) that will define, for the
whole group, which supporter’s scarf buy and bear during the next game.
 The buyer: the person who will buy the product. Generally, this will be the final
consumers
 Family: The family is maybe the most influencing factor for an individual. It forms
an environment of socialization in which an individual will evolve, shape his
personality, and acquire values. But also develop attitudes and opinions on various
subjects such as politics, society, social relations or himself and his desires. But
also on his consumer habits, his perception of brands and the products he buys.
Perceptions and family habits generally have a strong influence on the consumer
buying behavior. People will tend to keep the same as those acquired with their
families. For example, if you have never drunk Coke during your childhood and
your parents have described it as a product “full of sugar and not good for health”.
There
 is far less chance that you are going to buy it when you will grow up that someone
who drinks Coke since childhood. The position of an individual within his family,
his work, his country club, his group of friends, etc. – All this can be defined in
terms of role and social status. A social role is a set of attitudes and activities that
an individual is supposed to have and do according to his profession and his
position at work, his position in the family, his gender, etc. – And expectations of
the people around him. Social status meanwhile reflects the rank and the
importance of this role in society or in social groups. Some are more valued than
others. The social role and status profoundly influences the consumer behavior and
his purchasing decisions. Especially for all the “visible” products from other
people.

PERSONAL FACTORS

 Age and way of life: A consumer does not buy the same products or services at
20 or 70 years. His lifestyle, values, environment, activities, hobbies and
consumer habits evolve throughout his life. For example, during his life, a
consumer could change his diet from unhealthy products (fast food, ready meals,
etc.) to a healthier diet, during mid-life with family before needing to follow a
little later a low cholesterol diet to avoid health problems. The factors influencing
the buying decision process may also change. For example, the “social value” of
a brand generally plays a more important role in the decision for a consumer at
25 than at 65 years.
 Purchasing power and revenue: The purchasing power of an individual will
have, of course, a decisive influence on his behavior and purchasing decisions
based on his income and his capital. This obviously affects what he can afford,
his perspective on money and the level of importance of price in his purchasing
decisions. But it also plays a role in the kind of retailers where he goes or the
kind of brands he buys. As for social status, some consumers may also look for
the “social value” of products they buy in order to show “external indications” of
their incomes and their level of purchasing power.
 Lifestyle: The lifestyle of an individual includes all of its activities, interests,
values and opinions. The lifestyle of a consumer will influence on his behavior
and purchasing decisions. For example, a consumer with a healthy and balanced
lifestyle will prefer to eat organic products and go to specific grocery stores, will
 do some jogging regularly (and therefore will buy shoes, clothes and specific
products), etc.
 Personality and self-concept: Personality is the set of traits and specific
characteristics of each individual. It is the product of the interaction of
psychological and physiological characteristics of the individual and results in
constant behaviors.

It materializes into some traits such as confidence, sociability, autonomy,

charisma, ambition, openness to others, shyness, curiosity, adaptability, etc.

While the self-concept is the image that the individual has – or would like to have
– of him and he conveys to his entourage. These two concepts greatly influence
the individual in his choices and his way of being in everyday life. And therefore
also his shopping behavior and purchasing habits as consumer.

PSYCHOLOGICAL FACTORS

 Motivation is what will drive consumers to develop a purchasing behavior. It is the

expression of a need is which became pressing enough to lead the consumer to want
to satisfy it. It is usually working at a subconscious level and is often difficult to
measure. Motivation is directly related to the need and is expressed in the same type
of classification as defined in the stages of the consumer buying decision process. To
increase sales and encourage +consumers to purchase, brands should try to create,
make conscious or reinforce a need in the consumer’s mind so that he develops a
purchase motivation. He will be much more interested in considering and buy their
products.
 Perception is the process through which an individual selects, organizes and
interprets the information he receives in order to do something that makes sense. The
perception of a situation at a given time may decide if and how the person will act.
Depending to his experiences, beliefs and personal characteristics, an individual will
have a different perception from another. Each person faces every day tens of
thousands of sensory stimuli (visual, auditory, kinesthetic, olfactory and gustatory). It
would be impossible for the brain to process all consciously. That is why it focuses
only on some of them.
 Learning is through action. When we act, we learn. It implies a change in the
behavior resulting from the experience. The learning changes the behavior of an
individual as he acquires information and experience. For example, if you are sick
after drinking milk,
 you had a negative experience, you associate the milk with this state of discomfort
and you “learn” that you should not drink milk. Therefore, you don’t buy milk
anymore.
 Belief and attitudes: A belief is a conviction that an individual has on something.
Through the experience he acquires, his learning and his external influences (family,
friends, etc.), he will develop beliefs that will influence his buying behavior. While an
attitude can be defined as a feeling, an assessment of an object or idea and the
predisposition to act in a certain way toward that object. Attitudes allow the
individual to develop a co.

Importance of consumer behavior

The modern marketing management tries to solve the basic problems of consumers in the
area of consumption. To survive in the market, a firm has to be constantly innovating and
understand the latest consumer needs and tastes. It will be extremely useful in exploiting
marketing opportunities and in meeting the challenges that the Indian market offers.

 It is significant for regulating consumption of goods and thereby maintaining economic

stability.
 It is useful in developing ways for the more efficient utilization of resources of
marketing. It also helps in solving marketing management problems in more effective
manner.
 Today consumers give more importance on environment friendly products. They are
concerned about health, hygiene and fitness. They prefer natural products. Hence
detailed study on upcoming groups of consumers is essential for any firm.
 The growth of consumer protection movement has created an urgent need to
understand how consumers make their consumption and buying decision.
 Consumers’ tastes and preferences are ever changing. Study of consumer behavior
gives information regarding color, design, size etc. which consumers want. In short,
consumer behavior helps in formulating of production policy.
 For effective market segmentation and target marketing, it is essential to have an
understanding of consumers and their behavior.
 CHAPTER 4: RESEARCH METHODOLOGY

OVERVIEW OF THE PROJECT

PNB MetLife’s trusted brand, capital strength and existing relationships with millions of
individual and institutional customers around the globe uniquely position us among our
competitors.

Summer Internship Program is a training that takes around six week. After completing this
executive training we will get a certificate and to get this certificate we are given certain
targets. We have to achieve these targets within the specified time. The targets assigned by
PNB MetLife for 6 weeks are to give policies worth Rs.70, 000 & four policies. On the
achievement of these targets we will be given the commission accordingly.

To fulfill the target we first meet to our company guide and the senior members. They gave
us presentation on the company, business and its products.
Afterwards they gave some idea relating to how to identify the prospect customer. Then I
started working on the products of the company. I approached the natural market, made
cold calling to find out the prospective customers, convince them with assistance of our
sales manager, and also took references from them.to identify the prospect customer. Then
I started working on the products of the company. I approached the natural market, made
cold calling to find out the prospective customers, convince them with assistance of our
sales manager, and also took references from them.
The study will be able to reveal the preferences, needs, perception of the customers
regarding the life insurance products, It also help the insurance companies to know
whether the existing products are really satisfying the customer’s needs .
RESEARCH DESIGN AND COLLECTION OF DATA
 Primary research is conducted by generating leads through references, personal
contacts and other sources. This is done in order to understand and analyze about
the behavior of consumers towards life insurance. This would also give an insight
about the mentality of new customers and their strategies while purchasing
insurance. The research was both qualitative and quantitative in nature with a mix
of closed and open-ended questions.
 Secondary research was also done in order to understand about the studies that are
already done and to give a background information about the topic. This was done
through magazines, books, reading journals, articles etc.
 Research Approaches
There are different ways to collect primary data such as through observations like
ethnographic research, focus group, surveys, experiments, behavioral research and
so on. To efficiently fulfil the purpose of the study and gather relevant data,
surveys and personal interview is used. Survey approach is undertaken in order to
assess people’s knowledge, attitudes, choices and satisfaction related to investment
choices. Surveys were conducted in malls, offices, and banks and even online.
Since, our research topic is related to marketing, a more personal survey was
conducted majorly by visiting various branches of PNB (Punjab and National
Bank) in New Delhi. In addition to this, an online survey was also conducted to
gather more appropriate data. The survey was kept short and simple so as to make
it easier for respondents to understand and answer it appropriately. Apart from the
survey questionnaire, 8 personal interviews were also done to understand more
about consumer’s behavior towards life insurance.
 Research Instrument Research instrument is the tool for collecting primary
information through various methods discussed above. There are three main
options of research instrument that a researcher can choose from, such as, through
questionnaires, qualitative measures, and technological devices. The research
instrument that is used, in this study, to collect primary data is majorly through
questionnaires.
 Development of the Questionnaire A questionnaire is considered to be the most
flexible, structured and efficient way of collecting primary data as it is cost and
time effective. The data was collected through “Survey Questionnaire Method”.
The
 Questionnaire provided to the respondents is a “Structured- Non Disguised”
consisting of multiple choice questions.
 Sampling
Sampling design: The technique used is Random Sampling of employees in different
blocks of PNB MetLife, New Delhi.
Sampling Size: Data from 25 respondents were gathered.
 Software tools used for data analysis: MS Excel

OBJECTIVE IF THE STUDY

 To gain an understanding of PNB Met life, business of PNB Met life, and it’s Products.
 To know about the consumer perception about the company.
 To fulfill the targets set by the IP Company.
 To know how the work takes place in insurance sector.
 To have a practical knowledge.

LIMITATIONS OF THE STUDY

• Time constraints: As it is not that easy to get the appointment of the client in a short
notice and if we get the appointment than also the client takes some time to buy the
policy so it is not always possible to finish our target within the prescribed time.
• Place constraints: Some of the clients lived in the outskirts of the town due to which
it becomes difficult to frequently visit them for convincing.
• Cooperation: Because of busy schedule the sales managers are not able to cooperate
which ultimately results in wastage of time.
• Accuracy: It is difficult to know if all the respondents gave accurate information.
Some respondents tend to give misleading information.
DATA SOURCES
Collection of data is the most essential part of this study as it gives the first-hand
knowledge about customers’ and investors’ psychology and decision making. The task of
collecting data begins after a research problem has been defined and plan is chalked out.
For this study, the research is conducted and insights are captured using both primary data
such as:
 surveys,
 questionnaires,
 personal interviews
 And secondary data like data thorough review of journals, stock market analysis,
research papers etc.
 Chapter 5: ANANLYSIS OF TOPIC

Q1. what is your occupation?

a) Employed 17 68%

b) Housewife 3 12%

c) Retired 2 8%

d) Businessman 3 12 %

OCCUPATION

Retired Businessman 12%

8%

Housewife
12%

Employed
68%

EmployedHousewifeRetiredBusinessman

(Fig. 5.1 OCCUPATION)

Interpretation:
Majority (68%) of the respondents were Employed. Minority (8%) of the respondents were
Retired. 12% of the respondents were Businessmen and remaining (12%) of the
respondents were Housewives.
 Q.2. Do you pay taxes?

a) Yes 5 20%

b) No 20 80%

YES
20%

NO
80%

YESNO

(Fig 5.2 TAXES PAID)

Interpretation: Majority (80%) of respondent do not pay taxes and 20% of them pay
taxes.
Q.3 Do you have any insurance policy?

a) Yes 21 84%

b) No 4 16%

EXISTING POLICY

NO
16%

YES
84%

YESNO

(Fig 5.3 EXISTING POLICY)

Interpretation: 84% of respondent have insurance policies where rest (16%) do not have.
 Q.4. If I say Life policy which company comes to your mind?
a) LIC 12 48%
b) PNB MetLife 5 20%
c) Birla Sun life 3 12%
d) IDBI Federal 1 4%
e) ICICI Prudential 2 8%
f) Tata AIG 2 8%

ICICI Prudential
8% Tata AIG
8%
IDBI Federal
4% LIC
48%
Birla Sun Life
12%

PNB Metlife
20%

LICPNB MetlifeBirla Sun LifeIDBI FederalICICI PrudentialTata AIG

(Fig 5.4 Preferable Company)

Interpretation: Maximum (48%) respondents gave LIC as their first thing came to their
mind when hearing the name of life Insurance.
Q.5. What is the purpose of your investment in Insurance?
a) Life coverage 15 60%
b) Return 5 20%
c) Liquidity 1 4%
d) Tax saving 4 16%

PURPOSE OF INVESTING

tax saving
Liquidity 16%
4%

Return Life Coverage

20% 60%

Life CoverageReturnLiquiditytax saving

(Fig 5.5 PURPOSE)

Interpretation: Majority of respondent want to Invest in Insurance co. for Life coverage.
Q.6. Have you invested in any of the following?

a) Mutual funds 4 20%

b) Fixed Deposits 15 75%
c) Share Market 1 5%

Share Market
5%
Investment
Mutual Fund
20%

Fixed Deposits
75%

Mutual FundFixed DepositsShare Market

(Fig 5.6 INVESTMENT)

Interpretation: Majority of respondent (75%) want to invest on fixed deposit plan.
Q.7. Are you satisfied with the policy?
a) Satisfied 17 68%
b) Not Satisfied 8 32%

Satisfaction

Not Staisfied
32%

Satisfied
68%

SatisfiedNot Staisfied

(Fig 5.7 SATISFACTION)

Interpretation: The maximum respondent (68%) was satisfied with their Policies.
 Q.8. Are you satisfied with service agent?
a) Satisfied 14 56%
b) Not Satisfied 11 44%

Agent Service

Not Satified
32%

Satisfied
68%

SatisfiedNot Satified

(Fig5.8 AGENT SERVICE)

Interpretation: Maximum respondent (68%) was satisfied with their Service agent.
Q.9. what is the best form of investment?

a) Fixed Deposit 14 56%

b) Securities. I.e. Bonds MFs 2 8%
c) Shares 1 4%
d) Insurance 8 32%

Insurance
7%
Share
5%

Securities
11%

Fixed Deposit
77%

Fixed DepositSecuritiesShareInsurance

(Fig 5.9 FORMS OF INVESTMENT)

Interpretation: The majority of respondent (77%) want to invest in fixed deposited.
 Q.10. Are you aware of insurance plans of PNB MetLife?

a) Fully Aware 3 12%

b) Partially Aware 9 36%

c) Not Aware 8 32%

d) Can’t say 5 20%

Fully Aware
Cant's say 12%
20%

Partially Aware
36%

Not Aware
32%

Fully AwarePartially AwareNot AwareCant's say

(Fig 5.10 AWARNESS ABOUT PNB METLIFE PLANS)

Interpretation: The respondent was partially aware (36%) about the PNB MetLife plans.
Q.11. How did you come to know about these plans?

a) News paper/Media 1 8%
b) Internet 2 17%
c) Advisors 6 50%
d) Friends 3 25%

News Paper
8%
Friends
25%
Internet
17%

Advisors
50%

News PaperInternetAdvisorsFriends

(Fig 5.11 SOURCES)

Interpretation: The majority of respondent (50%) came to know about the plans from
advisors.
Q.12. How would you rate Indian insurance Co’s?

a) Non user friendly 2 8%

b) Unsatisfactory services 3 12%
c) Non aggressive 5 20%
d) Satisfactory 12 48%
e) Good 2 8%
f) Very good 1 4%

Very good
4%

Non user
Good Friendly 8%
8%

Unsatisfactory
Service 12%

Non aggressive
20%

Satisfactory
48%

Non user Friendly Unsatisfactory Service Non aggressive

SatisfactoryGoodVery good

(Fig 5.12 RATING)

Interpretation: The maximum respondent rated Indian Insurance co. as just satisfactory
(48%).
Q.13. What would you look in an insurance CO’s?

a) A trusted name 8 32%

b) Friendly service & responsiveness 7 28%
c) Good plans 9 36%
d)Accessibility 1 4%

NEEDS
Accessibility
4%

A Trusted Name
32%
Good Plans
36%

Responsiveness
28%

A Trusted NameResponsivenessGood PlansAccessibility

(Fig 5.13 NEEDS)

Interpretation: The respondent looks basically “Good plans” in an insurance co.’s.
 Q.14. Apart from PNB MetLife plans in which company have you invested?

a) LIC 12 57%

b) Birla Sun life 2 10%

c) SBI Life 3 14%

d) ICICI Prudential 3 14%

e) Tata AIG 1 5%

Tata AIG
Existing Policy
5%

ICICI Prudential
14%

SBI Life
14%
LIC
57%

Birla Sun Life

10%

LICBirla Sun LifeSBI LifeICICI PrudentialTata AIG

(Fig. 5.14 EXISTING POLICY)

Interpretation: The majority respondent (57%) has invested in LIC
 CHAPTER 6: FINDINGS

1. The maximum respondents were highly interested in fixed deposit plans.

2. The maximum respondents were not fully aware of PNB MetLife plans.

3. The respondent wants Insurance as a tool of Life coverage.

4. 16% people do not have any Life Insurance policy.

5. The respondents feel that financial advisor is a major source of information about the
investment plans.

6. Most of the respondents are satisfied with the service provided by the company.

7. LIC has been a major competitor for PNB MetLife in the market.
 CHAPTER 7: CONCLUSION

Life insurance industry in India is still at very low penetration levels. The reason being
lack of awareness and no product innovation. Today Life insurance is not bought by
individuals and they are sold. Life insurance companies must change this approach and
must start attracting public. Consumer expectations are not met by the insurance
companies and they are being sold with products which they don’t require. This type of
mis-selling has led to low persistency levels and customer grievances. It is always better to
understand the requirements of the customer and sell products or services which they
require.

Indian consumers have different consuming habits which can be changed very quickly due
to the passage of time. The Indian consumers have different perception towards
investments. This research has focused on understanding the behavior of customers
towards investment in life insurance. This study was focused to identify the underlying
reasons, facts that drive customers to invest in life insurance. Majority of the customers
feels insurance as a tax saving option than the risk protection and saving options.

If their investment patterns are analyzed, majority of the customers prefers long term
investments and low risk-moderate return options. The major influencing in choosing an
insurance company are customer relationships, company image. India is a developing
country where income levels of the people are increasing with increased opportunities. As
a result their disposable incomes are also increasing which paves a path for insurance
companies to gather and explore the opportunities. The overall attitude of customers
towards life insurance is positive. If the private insurance companies try to provide and
serve the customers with service quality coupled with empathy and assurance, India could
become a biggest market for any insurance comp Indian consumers have different
consuming habits which can be changed very quickly due to the passage of time. The
Indian consumers have different perception towards investments. This research has
focused on understanding the behavior of customers towards investment in life insurance.

This study was focused to identify the underlying reasons, facts that drive customers to
invest in life insurance. Majority of the customers feels insurance as a tax saving option
than the risk protection and saving options. If their investment patterns are analyzed,
majority of the customers prefers long term investments and low risk-moderate return
options. The major influencing in choosing an insurance company are customer
relationships, company image. India is a developing country where income levels of the
people are increasing with
increased opportunities. As a result their disposable incomes are also increasing which
paves a path for insurance companies to gather and explore the opportunities. The overall
attitude of customers towards life insurance is positive. If the private insurance companies
try to provide and serve the customers with service quality coupled with empathy and
assurance, India could become a biggest market for any insurance company. The potential
buyer primarily expects that the saving should be a painless process and that the money
saved should be absolutely safe. The challenge is to provide not only convenient payment
options, but also mechanisms that could offer some measure of protection and relief to the
customer if he is forced to disrupt the payment arrangement for unforeseen reasons. People
view insurance as tax saving and investment instrument as much as a protective one.
The major factors playing the role in developing consumer’s perception towards Life
Insurance Policies are Consumer Loyalty, Service Quality, Ease of Procedures, and
Satisfaction Level, Company Image, and Company-Client Relationship. Insurance industry
has to go ahead. A lot of opportunities are still waiting. This research will help in
developing the market share, loyalty and further development in insurance sector.
 ANNEXURE

Name-
Age-
Occupation-

Q 1. Do you pay taxes?

a) Yes
b) No

Q 2. Do you have any insurance policy?

a) Yes
b) No

Q 3. Which insurance policy do you have?

a) Life
b) Non- life
c) Both

Q 4. If I say life Insurance which company comes to your mind?

a) LIC
b) IDBI Federal
c) Birla Sun life
d) PNB MetLife
e) ICICI Prudential
F) Tata AIG

Q 5. What is the purpose of your investment in Insurance?

a) Live coverage
b) Returns
c) Liquidity
d) Investment
Q 6. From the following options what do you think about insurance?
a) A saving tool.
b) A tax saving device.
c) A tool to protect future.

Q 7. Have you invested in any of the following?

a) Mutual funds
b) Fixed deposits
c) Real estate
d) Share market

Q 8. Are you satisfied with the policy?

a) Satisfied.
b) Not Satisfied.

Q 9. Are you satisfied with service agent?

a) Satisfied.
b) Not Satisfied.

Q 10. Which is best form of investment?

a) Fixed Deposits.
b) Securities i.e. Bonds MFs
c) Shares.
d) Insurance.

Q 11. Are you aware of insurance plans of Pnb MetLife?

a) Fully aware
b) Partially aware
c) Not aware
d) Can’t say
Q 12. How did you come to know about these plans?
a) News paper
b) Media
c) Advisors
d) Friend

Q 13. What is the right age to buy insurance?

a) After 18 yrs.
b) After 25 yrs.
c) After 45 yrs.
d) Anytime.

Q 14. Apart from PNB MetLife plans in which company have you invested?
a) LIC
b) Birla sun life
c) Tata AIG
d) ICICI Prudential
e) SBI Life
 BIBLIOGRAPHY
Internet:
https://www.pnbmetlife.com/
https://en.wikipedia.org/wiki/Insurance
https://www.pnbmetlife.com/news/press-release/2020/index.html