UNIVERSITY OF MUMBAI

PROJECT ON

A STUDY ON PERCEPTION OF INVESTOR INVESTING IN

LIFE INSURANCE

BACHELOR OF COMMERCE

ACCOUNTING & FINANCE

SEMESTER VI

(2019-2020)

SUBMITTED

In partial Fulfilment of the requirement for the Award of Degree of

Bachelor of Commerce- Banking & Insurance

SUBMITTED BY,

MEGHANA VINOD POL

ROLL NO – 191056

UNDER GUIDANCE,

ASST. PROF. CHINMAY SAMANT

MAHARSHI DAYANAND COLLEGE OF ARTS, SCIENCE

&

COMMERCE PAREL, MUMBAI- 400 012.

 MAHARSHI DAYANAND COLLEGE

OF ARTS, SCIENCE & COMMERCE

PAREL, MUMBAI- 400 012.

CERTIFICATE

This is to certify that MS. MEGHANA VINOD POL, of B.Com

(ACCOUNTING & FINANCE) Semester VI (2019-2020) has
successfully completed the project on COMPARATIVE
ANALYSIS OF BANKS IN TERMS OF SERVICE QUALITY
under the guidance of ASST. PROF. CHINMAY SAMANT.

Course Coordinator Principal

Project Guide/ Internal Examiner External Examiner

 DECLARATION

I, MS. MEGHANA VINOD POL, the student of B.Com

(ACCOUNTING & FINANCE) Semester VI (2019-2020) has
declare that I have completed the Project on COMPARATIVE
ANALYSIS OF BANKS IN TERMS OF SERVICE QUALITY.
The information submitted is true and original to the best of my
knowledge.

Signature of student

Name of Student

MS.MEGHANA VINOD POL.

Roll No. 01
 ACKNOWLEDGEMENT

The college, the faculty, the classmates & the atmosphere, in the
college were all the favourable contributory factors right from the
point when the topic was to be selected till the final copy was
prepared. It was a very enriching experience throughout the
contribution from the following individuals in the form in which it
appears today. We feel privileged to take this opportunity to put on
record my gratitude towards them.

Course Co-ordinator PROF. KUNAL SONI made sure that the

resource was made available in time & also for immediate advice
& guidance throughout making the project. The principal of our
college Dr. C.S PANSE has always been inspiring and driving
force.
 EXECUTIVE SUMMARY

The objective of the study is to have a comparative study on the basis of different services
provided by Public Sector Bank (SBI) and Private Sector Bank (ICICI) and also to find out the
atmosphere preferred by the customers and their perceptions from the banks. For the study a
questionnaire was designed and the same was provided to the respondents for their valuable
inputs. All of the aspects of the study included introduction of the study, objective of the study,
research methodology, limitations of study, different services offered by banks, service quality
gaps, literature review, findings, suggestions and recommendations. The study suggest that in
this part SBI is are ahead of ICICI Bank in overall satisfaction.

The objective of the research is to get the satisfaction level, variations in satisfaction level and
reason responsible for variations in satisfaction level or dissatisfaction in public sector bank and
private sector banks.
 INDEX
SR CHAPTER NAMES PG NO
NO
01 INTRODUCTION
1.1 Introduction to the study
1.2 Background of the study
1.3 Types of the insurance policies

02 RESEARCH AND METHODOLOGY

1.1 sample design
1.2 sample unit
1.3 sampling technique adopted
1.4 sources of data
a) primary data
b) secondary data

03 DADA INTERPRITATION
1.1 statement of the problem
1.2 scope of the study
1.3 need of the study
1.4 objective of the study
1.5 operational definition of the study
1.6 benefits of the life insurance
1.7 limitations of the life insurance

04 COMPANIES PROFILE
1.1 life insurance corporation of india
1.2 ING vysya life insurance
 1.3 TATA AIG life insurance
1.4 HDFC standard life
1.5 ICICI prudential life insurance company

05 REVIEW OF LITERATURE
1.1 Chaudhary
1.2 Jain and goyal
1.3 Prakash

06 Data analysis
1.1 introduction to the analysis
1.2 data analysis and tools used
a) table 1:age of respondent
b) table 2:diffenciation of the respondent
into male and female
c) table3:differenciation of the respondent
based on their occupation
d) table 4:table showing income growth of
the respondent
e) table5:diffenciation of the respondent
based on their assets owned
f) table 6:table showing attribute from
respondent
g) table 7:factores which influence to buy
life insurance
h) table 8:value of life insurance of the
respondents
i) table 9:respondents interest to invest their
 money
j) table 10:satisfaction of the respondent
with their current life insurance policy
k) table 11:ratinge of the services offered by
their companies
l) table 12:consumer willingness to
communicate
m) table 13:no of know life insurance
company
n) table 14:sources of different life
insurance company

Conclusion
Recommendations and Suggestion

CHAPTER : 1
INTRODUCTION
 What is insurance?

Insurance is a legal contract that transfers risk from a policyholder to an insurance company.

1.1: INTRODUCTION TO THE STUDY

Everyone is exposed to various risks. Future is very uncertain, but there is way to protect one’s family
and make one’s children’s future safe. Life Insurance companies help us to ensure that our family’s future
is not just secure but also prosperous. This study titled “Study of Consumers Perception about Life
Insurance Policies” enables the Life Insurance Companies to understand how consumer’s perception
differs from person to person. How a consumer selects, organizes and interprets the service quality and
the product quality of different Life Insurance Policies, offered by various Life Insurance Companies.

1.2 BACKGROUND OF THE STUDY

“Life Insurance is a contract for payment of a sum of money to the person assured on the happening of
the event insured against”. Usually the insurance contract provides for the payment of an amount on the
date of maturity or at specified dates at periodic intervals or at unfortunate death if it occurs earlier.
Obviously, there is a price to be paid for this benefit. Among other things the contracts also provides for
the payment of premiums, by the assured. Life Insurance is universally acknowledged as a tool to
eliminate risk, substitute certainty for uncertainty and ensure timely aid for the family in the unfortunate
event of the death of the breadwinner. In other words, it is the civilized world’s partial solution to the
problems caused by death. Life insurance helps in two ways dealing with premature death, which leaves
dependent families to fend for themselves and old age without visible means of support.

KEY PLAYERS IN THE INSURANCE INDUSTRY

1. LIC

2. ICICI PRUDENTIAL
 3. TATA AIG

4. BIRLA SUN LIFE INSURANCE

5. MAX NEW YORK

6. SAHARA LIFE

7. SBILIFE INSURANCE

8. AXA (AIRTEL, I.E. BHARTI GROUP’S)

9. OM KOTAK

10. ALLIANZ BAJAJ

11. AVIVA

12. ING VYSYA

13. RELIANCE LIFE INSURANCE

14. METLIFE INSURANCE

1.3 Types of life insurance policy

1. A whole Life Insurance :

Life policy pays a death benefit no matter when the insured dies. In most cases, the policy will
guarantee the death benefit. The premiums are usually much higher than a term policy and the full
premium must be paid each year. Whole-life policies have cash value. The difference between the
premium and the actual cost of the insurance is put into a special account, known as the cash-value
account. This cash-value account may be used to help the insured pay the “fixed” premium
payments in later years. The policy owner may borrow against the cash value or receive the cash
value if the policy is cancelled.
 There may be charges associated with borrowing against the cash value or cancelling the policy
before the death of the insured. The insurance company may charge interest if the money is
borrowed and fees to close out the account if the policy is cancelled. At death, the beneficiary only
receives the death benefit, not the death benefit and the cash value. Whole-life works well for those
who want a guaranteed death benefit no matter how long the insured lives, and who have enough
money to pay the premiums. See Life Insurance: Whole-Life Insurance, Virginia Cooperative
Extension publication 354-145, for more information on whole life.

2. Term Life Insurance :

Insurance is the most basic type of life insurance. The policy is written for the term of the policy,
usually from one to 30 years. If the insured dies within the stated term, the insurance company pays
the death benefit to the beneficiary. When the term ends, the insurance ends. The premiums for term
insurance are usually the lowest among the different types of life insurance, but will increase with
the age of the insured. There is no cash value in a term life policy. (Cash value will be discussed in
greater detail later.) This means there is no money for loans or to pay for the insurance if you can’t
pay the premiums.
Many employers offer a type of term insurance known as “group” term to their workers. Group
policies cost less, and many companies pay the premiums. Generally, the policy is only good for as
long as the worker stays with the company.

3. A Universal Life Insurance :

Life policy is similar to a whole-life policy. However, a universal-life policy gives the policy owner
the choice of changing the premium and even the death benefit. For example, the owner may decide
to double the premium paid one year. The extra money will go in the cash-value account. Most
universal life policies have cash-value accounts that pay at least 3 percent or 4 percent interest.
Another year, the owner may decide not to pay any premium, and use money in the cash-value
account to pay the costs for that year. Policy owners may have a higher death benefit while their
children are young, and a lower the death benefit once their children are grown.

There are some limits to the changes that can be made. The policy owner needs to be careful not to
pay too little, and end up with no cash value. If this happens, and the owner still wants the
insurance, he or she will need to buy a new policy. Some policies allow the beneficiary to receive
both the death benefit and the cash-value account at the death of the insured. Be sure to read the
policy closely as some only pay the death benefit.
4. Variable Universal-Life :
A variable universal-life policy is a special type of universal policy. It allows the cash-value
account to be invested in stock funds, bond funds, and other assets (much like mutual funds).
These funds may allow the cash value to grow at higher rates than fixed-rate whole-life or
universal-life policies. The down side is that these funds may also have losses. Many variable
policies also offer a fixed account with a low guaranteed interest rate as one of the options. If the
returns are low (or negative) then the owner may need to pay more premiums to keep the policy.
A variable universal-life policy is for people who want lifetime coverage, and who can tolerate
risk. The buyer of a variable universal-life policy would prefer to invest money in stocks and
bonds to safer

CHAPTER 2
RESEARCH AND METHODOLOGY

1.1 SAMPL DESIGN

 The process of drawing a sample from a large population is called sampling Population refers to the
total of items about which information is defined. Well selected samples may reflect fairly and
accurately the characteristics of the population

1.2 Sampling Unit:

The sample unit of this survey was the customers having life insurance policies I
In Mumbai

1.3 Sample size :

The sample size was 50 customers of different life insurance companies, from various parts of
the Mumbai

1.4 Sampling Technique Adopted :

Convenient sampling

1.5 SOURCE OF DADA

After identifying and defining the research problem and determining specific information required
to solve the problem the researcher will look for the type and sources of data which may yield the
desired results, while deciding about themethod of data collection to be used for the study, there are
two types of data. They are as follow

Primary Data :

Primary data are those which are collected for the first time. Primary data is collected by framing
questionnaires. The questionnaire contained questions which are both open ended and closed ended.
Open ended questions are questions requiring answers in the responders own words. Closed ended
questions are those wherein the respondent has to merely check the appropriate answer from a list
of options available. Any doubts raised by the Respondents were clarified to get the perfect answers
from the distributors. Open ended questions yielded more insightful information, whereas closed
ended questions were relatively simple to tabulate and analyze.

Secondary Data :

Secondary data means data that are already available i.e. they refer to the data which have been
collected and analyzed by someone and can save both money and time of the researcher. Secondary
data may be available in the form of company records, trade publications, libraries etc .Secondary
data sources are as follows :
♦ Company Reports

♦ Daily Newspaper

♦ Standard Textbook

♦ Various Websites

CHAPTER 3
3.1 STATEMENT OF THE PROBLEM
This Study will help us to understand the consumer’s perception about life insurance policies. This
study will help the companies to understand, How a consumer selects, organizes and interprets the
Quality of service and product offered by life insurance companies.

3.2 SCOPE OF THE STUDY

This study is limited to the consumers within the limit of Bangalore city.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
customers' needs .

3.3 NEED FOR THE STUDY

1) The deeper the company’s understanding of consumer’s needs and perception, the earlier the
product is introduced ahead of competition, the greater the expected contribution margin. Hence the
study is very important.

2) Consumer markets and consumer buying behaviour can be understood beforesound product and
marketing plans are developed

3) This study will help companies to customize the service and product, according to the
consumer’s need.

4) This study will also help the companies to understand the experience and expectations of the
existing customers.

5) Apart from creating, manufacturing and distribution capabilities for life insurance products, an
in-depth study of the consumers, their preferences and demand for their product is very necessary
for setting up an efficient marketing network.

3.4 OBJECTIVE OF THE STUDY

1. Ascertain the profile and characteristics of potential buyers.

2. To gain a thorough understanding of the attributes that prospective buyers ascribe to life
insurance policies.

3. To have an insight into the attitudes and behaviours of customers.

4. To find out the differences among perceived service and expected service.
5. To produce an executive service report to upgrade service characteristics

of life insurance companies.

6. To understand consumer’s preferences.

7. To access the degree of satisfaction of the consumers with their current

brand of Insurance products.

3.5 OPERATIONAL DEFINITIONS OF THE STUDY

1. Marketing:

Marketing is a social and managerial process by which individuals and group obtain what they need
and want through the creating, offering and exchanging products of value with others.

2. Marketing Management:

Marketing Management is the process of planning and executing the conception, pricing, promotion
and distribution of the individual and organizational goals.

3. Marketing Research:

Marketing research is the systematic and objective search for, and analysis of information relevant
to the identification and solution of any problems in the field of marketing.

4. Consumer Behaviour :

Consumer behaviour is the study of how individuals make decisions to spend their available
resources [time, money, efforts] on consumption related items.

5. Consumer Research:

Consumer research is the methodology used to study consumer behaviour.

6. Market Segmentation:

Market segmentation is the process of dividing a market in the distinct subsets of the consumer with
common needs or characteristics and selecting one or more segments to target with the distinct
marketing mix.

7. Positioning:
Positioning is the act of designing the company’s offering and image so that they occupy a
meaningful and distinct competitive position in the target consumer’s mind.

8. Perception:

Perception is the process by which an individual select, organizes, and interprets information input
to create the meaningful picture of the world. For a marketer to influence a motivated buyer to buy
their products rather than a competitors they must be careful to take the perception process into
account while designing their marketing campaigns. Perception therefore influence what product
consumer buys.

9. Brand:

A brand is a name, term, sign, symbol, or design or a combination of them, used to identify the
goods or services of one seller or group of seller and differentiate them from those of competitors.

10. Attitude:

An attitude is a person enduring favourable or unfavourable evaluation, emotional feeling, and

action tendencies towards some object or idea

11. Values:

A value is a concept of the desirable. An internalized standard of evaluation a person possession.

These standards determine or guide an individual evaluation of the many objects encountered in
everyday life.

12. Attributes:

Attributes are the strengths and weaknesses of a brand that create attitudes and are used by
consumers to choose between brands that are relatively similar or functionally equivalent.

3.6 Benefits of Life Insurance Policies.

1) Superior to any other savings plan:

Unlike any other savings plan, a life insurance policy affords full protection against risk of death. In
the event of death of a policy holder, the insurance company makes available the full sum assured to
policy holder’s near and dear ones. In comparison, any other savings plan would amount to only the
total savings plan accumulated till date. If the death occurs prematurely, such savings can be much
less than the sum assured which means that the potential financial loss to the family is sizable.

2) Encourages and Forces Thrifts:

A saving deposit can easily be withdrawn. The payment of life insurance premium, however, is
considered sacrosanct and is viewed with the same seriousness as the payment of interest on a
mortgage. Thus, a life insurance policy in effect brings about compulsory savings.

3) Easy settlement and protection against creditors:

A life insurance policy is the only financial instrument the proceeds of which can be protected
against the claims of a creditor of the assured by effecting a valid assignment of the policy.

4) Administering the Legacy for Beneficiaries:

Speculative or unwise expenses can quickly cause the proceeds to be squandered. Several policies
have foreseen this possibility and provide for payment over a period of years or in a combination of
instalments and lump sum amounts.

5) Ready Marketability and suitability for quick borrowing:

A life insurance policy can, after a certain time period (generally three years) be surrendered for a
cash value. The policy is also acceptable as a security for a commercial loan, for example, a student
loan.

6) Disability Benefits:

Death is not the only hazard that is insured; many policies also include disability benefits.
Typically, these provide for waiver of future premiums and payment of monthly instalments spread
over a certain time period.

7) Accidental death Benefits:

Many policies can also provide for an extra sum to be paid (typically equal to the

sum assured) if death occurs as a result of accident

3.7 LIMITATIONS OF THE STUDY

Although the study was carried out with extreme enthusiasm and careful planning there are several
limitations which handicapped the research viz.,
1. Time Constraints:

The time stipulated for the project to be completed is less and thus there are chances that some
information might have been left out, however due care is taken to include all the relevant
information needed.

2. Sample size:

Due to time constraints the sample size was relatively small and would definitely have been more
representative if I had collected information from more respondents.

3. Accuracy:

It is difficult to know if all the respondents gave accurate information; some respondents tend to
give misleading information.

CHAPTER 4
Companies profiles

LIFE INSURANCE CORPORATION OF INDIA

Life Insurance Corporation of India was formed in September 1956 by passing LIC Act, 1956 in
Indian parliament. On the nationalization of the life insurance in 1956, the premium rating of
Oriental Government security life Assurance company were adopted by LIC with a reduction of 5%
of the tabular premium or Re. 1 per thousand sum assured, whichever was less. This reduction was
made in anticipation of economies of scale that would emerge on the merger of different insurers in
a single entity. Life Insurance Corporation of India there are many things to consider as Life
Insurance Corporation of India offers various insurance products which are very complex, but
underlying this complexity is a simple fact. The building blocks for all Life Insurance Corporation
of India are :

(1) Investment return;

(2) Mortality experience

(3) Expense management;

For your life LIC is the biggest insurance player in the country. Out of the total premium of Rs.3766
crore generated by the insurance industry through group business in the year 2005-06. LIC alone
accounted for Rs 3051 crore in the financial year 2005-06, LIC has grown at 30.68%. In respect of
number of lives insured, LIC has shown a growth of over 152%. In respect of number of schemes,
LIC has a growth of 2%. LIC's market share in number of individual covered and number of
policies stands at 77% and 81%, respectively.
Objectives Of LIC

1• Spread Life Insurance much more widely and in particular to the rural areas and to the socially
and economically backward classes with a view to reaching all insurable persons in the country and
providing them adequate financial cover against death at a reasonable cost.

2• Maximize mobilization of people's savings by making insurance linked Savings adequately

attractive.

3• Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose
money it holds in trust, without losing sight of the interest of the community as a whole; the funds
to be deployed to the best advantage of the investors as well as the community as a whole, keeping
in view national priorities and obligations of the attractive return.

4• Conduct business with utmost economy and with the full realization that the moneys belong to
the policyholders.

5• Act as trustees of the insured public in their individual and collective capacities

Various policies offered by life insurance corporation of India are

1) Whole Life Schemes

1• Whole life with profit

1• Limited payment whole life

2• Single Premium whole life

3• Convertible whole life plan

2) Endowment Schemes

1• Endowment plan with profit

2• Limited payment Endowment

3• Jeevan Mitra (Double Cover)

4• Jeevan Mitra (Triple cover)

5• Bhavishya Jeevan
6• Jeevan Anand

7• New Jana Raksha

3)Term Assurance Plan

1• Anmol Jeevan

2• 2 Year Term Assurance

3• Covertible Term

4• New Bima Kiran

4) Plan for needs of Children

1• Komal Jeevan

2• Jeevan Sukanya

3• Jeevan Kishore

4• Jeevan Balya

5• Jeevan Chaya

6• Marriage/educational annuity

7• Deferred Endowment

5. Periodic Money Back Plan

1• Jeevan Samridhi

2• Jeevan Rekha Plan

3• Money Back Plan

4• Jeevan Surabhi

5• Jeevan bharathi

6. Medical benefits linked insurance

1• Asha Deep II

2• Jeevan Asha II
7. For benefits to Handicapped

1• Jeevan Aadhar

2• Jeevan Vishwas

8. Plans to cover housing loans

1• Mortgage redemption

9. Joint life plan

1• Jeevan sathi

10. Investment plan

1• Bima Nivesh Triple cover

11. Capital market linked plan

1• Bima plus.
 ING VYSYA LIFE INSURANCE

ING Vysya Life Insurance Company Private LimiteSd entered the private life insurance industry in
India in September 2001, and in a span of 5 years has established itself as a distinctive life
insurance brand with an innovative, attractive and customer friendly product portfolio and a
professional advisor sales force. It has a dedicated and committed advisor sales force of over 21,000
people, working from 140 branches located in 74 major cities across the country and over 3,000
employees. It also distributes products in close cooperation with the ING Vysya Bank network. The
Company has a customer base of over 4,50,000 & is headquartered at Banglore. In 2005, ING
Vysya Life earned a total income in excess of Rs. 400 crore and also has a share capital of Rs. 440
crore. ING Vysya Life Insurance Company is headquartered at Bangalore and has established a
strong presence in the cities of Delhi, Mumbai, Kolkata, Hyderabad and Chennai. In addition, ING
Vysya Life operates in Vizag, Vijaywada, Mangalore, Mysore, Pune, Nagpur, Chandigarh,
Ludhiana and Jaipur. ING Vysya Life has pioneered product innovations in the Indian life insurance
market with customer-oriented cash bonus endowment and money back products. (Reassuring Life
and Maximising Life), the first anticipated whole life product (Fulfilling Life) and the first
Term/Critical Illness combination product (Conquering Life). Conquering Life is an innovative
term and critical illness product that has been launched recently. Conquering Life provides
affordable term cover and critical illness coverage for 10 critical illnesses of upto 50% of the Sum
Assured. ING Vysya Life Insurance is a joint venture between ING Insurance International BV a
part of ING Group, the world's largest life insurance company . ING Vysya Bank, with 1.5 million
customers and over 400 outlets and GMR Technologies and Industries Limited, part of GMR Group
also based in Bangalore and involved in the field of power generation, infrastructural development
and several other businesses. ING Vysya Life has a paid up capital of Rs.140 crores and an
authorised capital of Rs.200 crore.

Life insurance products offered by the company are:

1)Protection plan

1• Critical illness plan

2• Endowment plan

2) Savings plan

1• Endowment plan
 2• Child protection plan

3• Money back plan

3) Investment Plan

Whole life plan

Limited payment endowment plan

Anticipated whole life plan

4) Retirement Plan

Best years

New Future Perfect

 Tata AIG Life Insurance

Tata AIG Life Insurance company is a joint venture between the Tata Group and American
International Group Inc (AIG), the leading US based international insurance and financial services
organisation and the largest underwriter of commercial and industrial insurance in America. Its
member companies write a wide range of commercial, personal and life insurance products through
a variety of distribution channels in approximately 130 countries and jurisdictions throughout the
world. AIG’s global businesses also include financial services and asset management, including
aircraft leasing, financial products, trading and market making, consumer finance, institutional,
retail and direct investment fund asset management, real estate investment management, and
retirement savings products.

Areas of business

Tata AIG Life Insurance products include a broad array of life insurance coverage to both
individuals and groups. For groups, the company has life products whereas for individuals, it has
term products, endowment products as well as moneyback products. For groups and individuals,
various types of addons and options are available to given consumers flexibility and choice.
 HDFC STANDARD LIFE :

The Partnership :

HDFC and Standard Life first came together for a possible joint venture, to enter the Life Insurance
market, in January 1995. It was clear from the outset that both companies shared similar values and
beliefs and a strong relationship quickly formed. In October 1995 the companies signed a 3 year
joint venture agreement. Around this time Standard Life purchased a 5% stake in HDFC, further
strengthening the relationship. The next three years were filled with uncertainty, due to changes in
government and ongoing delays in getting the IRDA (Insurance Regulatory and Development
authority) Act passed in parliament. Despite this both companies remained firmly committed to the
venture.

In October 1998, the joint venture agreement was renewed and additional resource made available.
Around this time Standard Life purchased 2% of Infrastructure Development Finance Company
Ltd. (IDFC). Standard Life also started to use the services of the HDFC Treasury department to
advise them upon their investments in India.

Towards the end of 1999, the opening of the market looked very promising and both companies
agreed the time was right to move the operation to the next level. Therefore, in January 2000 an
expert team from the UK joined a handpicked team from HDFC to form the core project team,
based in Mumbai.

Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in HDFC
Bank.

In a further development Standard Life agreed to participate in the Asset Management Company
promoted by HDFC to enter the mutual fund market. The Mutual Fund was launched on 20th July
2000.

Incorporation of HDFC Standard Life Insurance Company Limited:

The company was incorporated on 14th August 2000 under the name of HDFC Standard Life
Insurance Company Limited.
Companies ambition from as far back as October 1995, was to be the first private company to re-
enter the life insurance market in India. On the 23rd of October 2000, this ambition was realised
when HDFC Standard Life was the only life company to be granted a certificate of registration.

HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life owns
18.6%. Given Standard Life's existing investment in the HDFC Group, this is the maximum
investment allowed under current regulations.

HDFC and Standard Life have a long and close relationship built upon shared values and trust. The
ambition of HDFC Standard Life is to mirror the success of the parent companies and be the
yardstick by which all other insurance company's in India are measured.

HDFC Standard Life's cumulative premium income, including the first year premiums and renewal
premiums is Rs. 672.3 Crores for the financial year, Apr-Nov2005. So far the company has covered
over 11,00,000 individuals and has declared 5th consecutive bonus in as many years for its 'with
profit' policyholders.Products offered by the company are:

INDIVIDUAL PLAN

1• With Profit Endowment Assurance

2• With Profits Money Back

3• Single Premium Whole of Life

4• Term assurance Plan

5• Loan Cover Term Assurance

6• Personal Pension Plan

7• Children’s Plan

GROUP PLANS

1) Group Term Insurance

2) Development Insurance Plan

 ICICI PRUDENTIAL LIFE INSURANCE COMPANY

ICICI Prudential Life Insurance Company is a joint venture between ICICI, a premier financial
powerhouse and Prudential plc, a leading international financial services group headquartered in the
United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to
begin operations in December 2000 after receiving approval from Insurance Regulatory
Development Authority (IRDA).

ICICI Prudential is curently the No. 1 private life insurer in the country. For the financial year
ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total
sum assured of Rs 13,780 crore and wrote nearly 615,000 policies.

Products offered by ICICI Prudential are :

1) Savings Plan

1• Smart kid

2• Life Time

3• Save ‘n’ Protect

4• Cash Bak

2) Protection plan

1• Life Guard
 2• Extra Protection Through

3• Riders

3) Retirement Plans

1• Forever Life

1• Life link pension

2• Life time pension

3• Reassure

4) Investment Plans

1• Assure Invest

2• Life Link

5) Group plans

1• Group Superannuation

2• Group Gratuity

3• Group Term Assurance

CHAPTER 5
REVIEW OF LITERATURE

 REVIEWS RELATED TO LIFE INSURANCE POLICY HOLDERS

AWARENESS

Chaudhary (2012)2
explained that today India is one of the fastest growing economies of the world. The
Insurance Industry contributes to the financial sector of an economy and also provides
social security to the people of a country. The income earning capacity and increasing rate
of literacy are the key factors of the growth of the Insurance industry. This sector provides
for the long term contractual savings and security. The investors in life insurance are
looking for both good return and life risk coverage. This study is conducted in Panipat city
to check the awareness and satisfaction level of insurance buyers/ consumers. To achieve
these objectives, a questionnaire is designed to collect the data of buyers of insurance.
Jain and Goyal (2012)3
noted that the insurance industry is in existence since long, the level of awareness towards
the rights and duties regarding insurance are negligible. The study tries to understand the
awareness of the people towards the rights and duties towards life insurance products after
the privatization of the insurance sector. To actually understand this, a primary research
was conducted to find out the level of awareness towards the rights and duties of the
policy holders across demographic profiles and about the level of awareness towards life
insurance policies prevailing in the market. Chi-square test was used to test the
significance of the relationship. The analysis is based on a sample of 117 individuals from
randomly selected general public. A significant association between the demographic
determinants and the awareness towards the rights and duties regarding life insurance was
found showing low level of awareness towards rights and duties among the policy holders
of life insurance. The study was undertaken in Rajasthan and the methodology can be
comfortably to the country as a whole.
Prakash (2012)4

observed that consumer awareness is the knowledge that a consumer should have about
his/her legal rights and duties. It is must for a consumer to follow these rights. It is
implemented for the protection of the consumer, so that the consumer is not exploited by
the seller of the products. Consumer awareness is making the consumer aware of His/ Her
rights. The marketing term ‘Consumer awareness’ means that consumers note or aware of
products or service

CHAPTER 6
6.1 INTRODUCTION TO ANALYSIS
In order to extract meaningful information from the data them. The analysis can be
conducted by using simple statistical tools like percentages, averages and measures of
dispersion. Alternatively the collected data may be analysed collected, the data analysis is
carried out. The data are first edited, coded and tabulated for analyzing by using
diagrams, graphs, charts, pictures etc. Data analysis is the process of planning the data in
an ordered form, combining them with the existing information and extracting from them
Interpretation is the process of drawing conclusions from the gathered data in the study.
In this research the researcher has analysed the data using percentages and graphs.

6.2 DATA ANALYSIS TOOLS USED

In this research the data analysis tools used are percentages and graphs. The
various attributes were analysed separately and the importance to each was calculated on
the basis of the percentage. The rank having the maximum percentage was taken to be
SL.NO AGE IN YEAR NO OF PERCENTAGE
preferred RESPONDENT OF
RESPONDENT
1 19-28 28 56%
2 29-38 9 18%
3 39-48 6 12%
4 49-58 6 12%
5 59-68 0 0%
6 69-78 1 2%

TOTAL 50 100%
importance to the particular attribute.
After looking at each attribute separately, all the attributes were considered together to
develop a map on the most preferred rank for all the attributes.

TABLE 1
AGE OF RESPONDENT

SOURCE :SURVEY DATA

INFERENCE: The above table classified the respondents according to their age group. The majority of
the respondents belong to the age group 19 to 28 years with 56% and the second age group is 29 to 38
years with 18%, followed by 39 to 48 years and 49 to 58 years with 12% each.

TABLE 2
DIFFERENCIATION OF THE RESPONDENTS INTO MALE AND FEMALE

TYPE OF NUMBER OF PERCENTAGE OF

RESPONTENT RESPONDENT RESPONDENT

MALE RESPONDENT 37 74%

FEMALE 13 26%
RESPONDENT
TOTAL 50 100%

SOURCE; SURVEY DATA

INFERENCE:
This table helps us to understand that there are more number of male
consumers with 74% market share than the female consumers with 26%
market share.

TABLE 3

DIFFERENCIATION OF RESPONDENTS BASED ON THEIR OCCUPATION :

SL.NO OCCUPATION NUMBER OF PERCENTAGE

RESPONDENT OF
S RESPONDENT
S
1. STUDENTS 2 4%

2. GOVERNMENT 20 40 %
EMPLOYEES
3. PRIVATE 24 48 %
EMPLOYEES
4. HOUSE WIVES 2 4%
 5. RETIRED 2 4%
PERSONS
TOTAL 50 100 %

SOURCE : SURVEY DATA

INFERENCE:
It could be inferred that majority of consumers of life insurance policies are private employees with 48%
and Government employees with 40%, followed by students, house wives and retired persons with 4 %
each.

TABLE 4

TABLE SHOWING INCOME GROUP OF RESPONDENTS :

SL.NO INCOME GROUP NUMBER OF PERCENTAGE

RESPONDENTS OF
RESPONDENTS
1. LESS THAN 5000 9 18 %

2. 5001 – 17 34 %
10,000
3. 10001 – 14 28 %
15000
4. 15001 – 7 14 %
20000
5. 20001 – 2 4%
25000
 6. GREATER THAN 1 2%
30000
TOTAL 50 100 %

SOURCE : SURVEY DATA

INFERENCE:
The majority of dominant income group having life insurance policies belong to the income group of
5,001 to 10,000, which is middle class group. Followed by the income group of 10,001 to 15,000.

TABLE 5

DIFFERENCIATION OF RESPONDENTS ACCORDING TO THE ASSETS OWNED :

SL.NO ASSETS NUMBER OF PERCENTAGE

RESPONDENTS OF
RESPONDENTS
1 HOUSE 19 38 %

2. TWO 26 52 %
WHEELER
3. CAR 5 10 %

TOTAL 50 100 %

SOURCE : SURVEY DATA

INFERENCE:
This table helps us to know that most of consumers with life insurance policies own two wheelers with
52%, 19% of consumers own house and 5% of the consumers own car.

TABLE 7

TABLE SHOWING ATTRIBUTES FROM RESPONDENTS :

SL.NO ATTRIBUTE SCORE RANK

1. RETURN ON 30 1
INVESTMENT
2. COMPANY 25 2
REPUTATION
3. PREMIUM 22 3
OUTFLOW
4. SERVICE 19 4
QUALITY
5. PRODUCT 17 5
QUALITY

SOURCE : SURVEY DATA

INFERENCE:
This table shows the strengths and weaknesses of the brand, and what are the important criteria or
attributes on which decision making is done. From this table we can infer that consumers give more
importance for Return on investment, secondly they prefer company reputation, and then premium
outflow followed by service quality
and product quality.

TABLE 8

FACTORS WHICH INFLUENCED TO BUY LIFE INSURANCE POLICY :

SL.NO FACTORS SCORES RANK

1. PERSONAL 28 1
INTEREST
2. FAMILY 16 2

3. FRIENDS 8 3

4. AGENTS 6 4

5. ADVERTISEMENT 3 5

6. OTHERS 1 6

SOURCE: SURVEY DATA

INFERENCE:
This table is helpful in knowing which media is best suitable for promoting a life insurance product. It can
be seen that personal interest influences a consumers to buy a life insurance product, followed by family,
friends , agents and advertisements.

TABLE 9

VALUE OF RESPONDENTS LIFE INSURANCE POLICY :

SL.NO AMOUNT NUMBER OF PERCENTAGE

RESPONDENTS OF
RESPONDENTS
1. < 10000 0 0%

2. 10000 – 5 10 %
25000
3. 25000 – 8 16 %
50000
4. 50000– 15 30 %
100000
5. > 100000 22 44 %

SOURCE : SURVEY DATA

INFERENCE:
It can be inferred that majority of consumers buy the life insurance policy which costs more than Rs.
1,00,000 followed by Rs. 50,000 tp Rs.1,00,000, followed by Rs. 25,000 to Rs. 50,000.

TABLE 10

RESPONDENTS PREFERENCE TO INVEST THEIR MONEY :

NUMBER OF PERCENTAGE OF
RESPONDENTS RESPONDENTS
INSURANCE COMPANY 24 48 %
BANK 26 52 %
TOTAL 50 100 %

SOURCE : SURVEY DATA

INFERENCE:
From the table it is clear that majority of people (52%) prefer to invest in Bank and others (48%) prefer to
invest in Insurance companies.
 TABLE 11

SATISFACTION OF RESPONDENTS WITH CURRENT LIFE INSURANCE COMPANY

RESPONSE NUMBER OF PERCENTAGE OF

RESPONDENTS RESPONDENTS
YES 47 94 %
NO 3 6%
TOTAL 50 100 %

SOURCE : SURVEY DATA

INFERENCE:
From this table it could be inferred that 94% of the consumers are satisfied with the service and quality of
products of their life insurance companies. Only 6% of consumers are not satisfied.
 TABLE 12

RATINGS OF THE SERVICES OFFERED BY THE RESPONDENT’S LIFE INSURANCE

COMPANY :

RATINGS NUMBER OF PERCENTAGE

RESPONDENTS OF RESPONDENTS
EXCELLENT 7 14 %
VERY GOOD 12 24 %
GOOD 20 40 %
AVERAGE 11 22 %
POOR 0 0%
TOTAL 50 100 %

SOURCE : SURVEY DATA

INFERENCE:
From this table it could be inferred that 40% of the consumers have rated service offered as good, 24% of
them have rated them as very good, 22% of them have rated as average and 14% of them have rated as
excellent.
 TABLE 13

CONSUMERS WILLINGNESS TO COMMUNICATE THE SERVICE OFFERED BY THEIR LIFE

INSURANCE COMPANY

RESPONSES NUMBER OF PERCENTAGE OF

RESPONDENTS RESPONDENTS
YES 39 78 %
NO 11 22 %
TOTAL 50 100 %

SOURCE : SURVEY DATA

INFERENCE:
From this table it can be noted that the majority of consumers (78%) would like to communicate the
service offered by life insurance companies and 22% of consumers would not like to communicate the
service offered.
 TABLE 14

NUMBER OF LIFE INSURANCE COMPANY KNOWN BY RESPONDENTS :

NUMBER OF LIFE NUMBER OF PERCENTAGE OF

INSURANCE COMPANY RESPONDENTS RESPONDENTS
KNOWN
<5 29 58 %
5–7 18 36 %
8 – 10 2 4%
>10 1 2%
TOTAL 50 100 %

SOURCE : SURVEY DATA

INFERENCE:
This table helps us to know the consumer awareness about the life insurance companies. 58% of the
consumers are aware about less than 5 life insurance companies, followed by 36% consumers who know
5 to 7 life insurance companies.
 TABLE 15

SCORES OF DIFFERENT LIFE INSURANCE COMPANIES :

COMPANIES SCORES RANK

LIC 345 1
ICICI PRUDENTIAL 211 2
HDFC 194 3
TATA AIG 123 4
ING VYSYA 121 5
BAJAJ ALLIANZ 118 6
MET LIFE 90 7
OTHERS 41 8

SOURCE: SURVEY DATA

INFERENCE:
From the table it can rank the life insurance companies, LIC stands first, followed by ICICI Prudential
followed by HDFC Standard life, followed by TATA AIG.
CONCLUSION

This study titled “Study of Consumers Perception about Life Insurance Policies” enables the Life
Insurance Companies to understand how consumer’s perception differs from person to person. How a
consumer selects, organizes and interprets the service quality and the product quality of different Life
Insurance Policies, offered by various Life Insurance Companies
The response of the insurance companies has been very positive and within a short span on time, the
Indian insurance market scenario has seen a perceptible change in terms of improved customer service
benchmarks and introduction of innovative and tailors made products.
Most of the insurance majors have represented in the form of joint venture in Indian market.
The new products that have been introduced by the companies have certain innovative features in terms
of better customer services and also wider covers. This has given customer ample choice to select
products.
RECOMMENDATIONS AND SUGGESTIONS:
With regard to insurance products, consumers respond at different rates, depending on the consumers
characteristics. Hence Insurance companies should try to bring their new product to the attention of
potential early adopters.
Due to the intense competition in the life insurance market, the life insurance companies have to adopt
better strategies to attract more customers.

QUESTIONNAIRE

A STUDY CONDUCTED TO UNDERSTAND THE CONSUMER’S

PERCEPTION ABOUT LIFE INSURANCE POLICIES

1) Name :
2) Age :
3) Phone Number :
4) Occupation :
5) Monthly Income :

< 5000 5001 – 10,000 10,000 – 15,000

15,001 – 20,000 20,001 – 25000  25,000

6. Do You Own
House Two Wheeler Car

7. Do you have a Life Insurance Policy with any Life

InsuranceCampany?
Yes No

7.a) If yes, name the Company___________________________________

2) Name the policy which you own_____________________________

8. What factors do you consider while buying a life insurance policy?

Premium Outflow Company Reputation
Service Quality Product Quality
Return on Investment

9. What factors influenced to buy Life Insurance Policy?

Personal interest Friends Family
Agents Advertisements others

10. What is the value of your life insurance?

>10,000 10,00025,000
25,00050,000
50,0001,00,000
>1,00,000

11. Do you prefer to invest your money in a Insurance company or in a Bank?

Insurance Company Bank

12. Are you satisfied with your current Life Insurance Company?
Yes No
If Yes Why?___________________________________________
If No Why?___________________________________________

13. How do you rate the service offered by your Life Insurance Company?
Excellent Very Good Good
Average Poor

14.Would you like to communicate the service offered by your Life Insurance
Company to others?
Yes No

15. How many Life insurance Compannies do you know?

<5 57
810
>10

16. How do you rate the following Life Insurance Companies?

LIC
HDFC
ING VYSYA
MET LIFE INDIA INSURANCE
BAJAJ ALLIANZ
ICICI Prudential
TATA AIG
Others

17. Would You like to continue with the same Life Insurance Company?
Yes No

18. Any suggestions for improving the service offered by life insurance
companies
Thank You.
BIBLIOGRAPHY

TEXT BOOKS :

1) Services Marketing : Ravi Shankar.

2) Marketing Management : Philip Kotler.

3) Consumer Behaviour : Leon G Schiffman Lestie Lazar Kanwk.

4) Principles of insurance Law : Dr. Avtar Singh.

WEBSITES :WWW.
GOOGLE.COM
WWW.LIC.COM