A

PROJECT REPORT ON
“STUDY ON CUSTOMERS PERCEPTION
TOWORDS INSURANCE AND EXIDE LIFE
INSURANCE IN ODISHA”

Submitted to

“BIJU PATNAIK UNIVERSITY OF TECHNOLOGY

IN PARTIAL FULFILLMENT OF MASTER IN

BUSINESS ADMINISTRATION
SRUSTI ACADEMY OF MANAGEMENT, BHUBANESWER.
(2015-17)
 SUBMITTED TO SUBMITTED BY

Mr Dibyajyoti Mohapara Chinmay Kumar Nayak

(Asst. Professor Marketing Management) Semester: MBA 2nd
Roll No-1506286022

[1]
 CONTENT
Chapter Title Page

 Background of the 10
study
1  Objective of the study 11
12
 Scope of the Study
13-14
 Methodology used

2 Company profile 16-18

3 Study On Insurance 22-32

4 Analysis and Interpretation 34-42

5 Findings 44

6 Suggestion 45
Conclusion 46

7 Bibliography 47
Questionnaire 48-49

[2]
 DECLARATION

I do hereby declare I have undergone by a project on This report is

“Customers Perception Towards Insurance And Exide Life Insurance In
Odisha” submitted by me in partial fulfilment of my Degree in Master of
Business Administrative (MBA) course from Srusti Academy of
Management, Bhubaneswar. The report is comprehensively prepared &
submitted by me is true to the best of my knowledge. It has not been
submitted & published anywhere else

Chinmay Kumar Nayak

Regd.no – 1506286022

[3]
 PROJECT GUIDE CERTIFICATE

This is to certify that Chinmay Kumar Nayak Regd. No.: 1506286022 a

student of Master in Business Administration from Srusti Academy of
Management has done his summer training in our organization Exide Life
Insurance company Ltd. at Bhubaneswar Branch. The training commenced from
2nd june 2016 and was completed on 17th July, 2016.

The project work is entitled “Customers perception towards insurance

and Exide life insurance in odisha” embodies the original work done by during
his summer training period.

Name: Mr. Debu Mukharjee

Company Guide SEAL OF ORGANISATION

[4]
 CERTIFICATION OF INTERNAL GUIDE

This is to certify that Chinmay Kumar Nayak student of MBA 2 nd

semester has prepared his market survey report under my guidance for the
fulfilment of degree of Master of Business Administration (MBA) from Srusti
Academy of Management, Bhubaneswar.

Signature
Mr Dibyajyoti Mohapatra
(Asst. Professor Marketing Management)

[5]
 CONTENT
Chapter Title Page

 Background of the 10
study
1  Objective of the study 11
12
 Scope of the Study
13-14
 Methodology used

2 Company profile 16-18

3 Study On Insurance 22-32

4 Analysis and Interpretation 34-42

5 Findings 44

6 Suggestion 45
Conclusion 46

7 Bibliography 47
Questionnaire 48-49

[6]
CHAPTER 1
 Introduction
 Objective of the study
 Scope of the study
 Research Methodology

[7]
INTRODUCTION

[8]
 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES

 To compare the performance of Exide life insurance company with

other competitors in the life insurance industry.

SECONDARY OBJECTIVES

 To find out the strengths and weaknesses of the company’s

insurance schemes
 To know about the various Investment alternatives that is mostly
preferred by the people.
 To find out whether gender bias involved in investing life
insurance or not.

[9]
 SCOPE OF THE STUDY

This study has a wider scope among the insurance sector. The study
which focuses on various aspects such as competitive position of Exide
life, strengths and weaknesses of insurance covers, customer’s
perception, etc also holds good for other companies in the life and non-
life insurance segment.

The outcome of the study, which are based on the above aspects
can be utilized by the marketing department of both life and non-life
insurance companies.

 The result of this research would help the company to have a better
understanding about the consumer’s perception towards life
insurance.

 The study helps the company by creating awareness about the

consumers of different ages and income levels.

 The study also enables the company to focus the consumer’s

preferences and expectations on the product which they offer.

[10]
 RESEARCH METHODOLOGY

Methodology is a systematic way of solving a problem it includes the

research methods for solving a problem it includes the research methods for
solving the problem.

Type of research - Descriptive research

Data source -Primary and Secondary data

Data collection method -Interview and survey

Data collection tools -Questionnaires

Sampling Area -Bhubaneswar

Sample size -100

SAMPLE DESIGN

The target population of the study consists of various respondents of

various places. This survey was done by collecting the data from the
respondents.

SAMPLE SIZE

After due consultation with the company supervisor as well as with

the college guide, also keeping in mind the requirements of the company for
the research, the sample size that was found to be appropriate for the study
was 100.

[11]
SAMPLING TECHNIQUE:

The sampling technique that adapted to conduct the survey was

‘Convenient Random Sampling’ and the area of the research was
concentrated in the city of Bhubaneswar only. The survey was conducted by
visiting different places like Customer, Agents of different insurance
company, corporate offices, respondent’s home etc...
DATA SOURCE:

The task of data collection begins after a research problem has been
defined. In this study data was collected through both primary and
secondary data source.
A. PRIMARY DATA:

A primary data is a data, which is collected for gathering information

first time and to analyse the problem. In this study the primary data was
collected among the consumers using questionnaire.
B. SECONDARY DATA:

Secondary data consist of information that already exists somewhere,

having been collected for some other purpose. In this study secondary data
was collected from company websites, magazines and brochures.
STATISTICAL TOOLS:

Simple percentage analysis, ranking method and chi square analysis is

the main statistical tool used for the study.
SIMPLE PERCENTAGE ANALYSIS:

Percentage refers to a special king of ratio in making comparison

between two or more data and to describe relationships. Percentage can
also be used to compare the relation terms between two or more sources of
data.
Percentage of respondents = Number of respondents * 100
Total respondents

[12]
CHAPTER: 2
 Company Profile

[13]
 COMPANY PROFILE

EXIDE LIFE INSURASNCE COMPANY LIMITED

HEAD QUARTERS: BENGALURE

MD & CEO: Mr.Kshitij Jain

Exide Life Insurance Company limited as an established and profitability life

insurance company. Commenced operation in 2001-02and is head quarter in Bengaluru.
The company is 100% owned by EXIDE INDUSTRIES LIMITED .The company serves over
15-laksh customer and managed asset of over 9500 corers. During the Financial Year
2015-16 the company achieved total premium income of over INR 2000 corers.

The company started out as ING VYSYA life insurance Company limited. It was
originally joint venture between Exide industries limited and IngVysya bank. Later on ING
withdrew from venture and sold its 26% stake to Exide which led to the creation of Life
Insurance Company.

The company distributes the product through multi-channel agency, bank

assurance, corporate agency and brooking as well as direct channels. The agency
channels comprise of 50000 advisors and are attached over 200 company office across in
India.

[14]
 Exide Life Insurance, one of the leading life insurance companies in South India, is now
growing its franchise in other parts of the country. The company is focused on providing
long term protection and savings solutions and has a strong traditional product portfolio
with a consistent bonus track record .Exide Life Insurance has the ISO 9001:2008 quality
certification for all Customer Service processes .

 Claim settlement ratio:

Claim settlement ratio 86.10% for year 2014-15
 Grievances resolved:
Grievances settled ratio 93.33% for year 2014-15

Types of product
 Exide Life insurance term plans
 Exide life endowment plans
 Exide life saving and investment plans
 Exide life insurance pension plans
 Exide life child plans
 Exide life accidental insurance plans

COMPANY MISSION AND VISION

DEPENDABLE:

We are trust worthy and do what we say

DYNAMIC:

We are active and strive for constant improvement

RESPONSIVE:

We are quick to respond with a caring attitude

FORESIGHTED:

We focus on the long term with a prudent view of the future.

[15]
ABOUT EXIDE INDUSTRIES LIMITED
Exide is India’s largest manufacturer of electric storage batteries and its biggest
power‐storage solutions provider with a market capitalization of over INR 11,600 corer
.Since its introduction in India more than a hundred years ago, Exide remains the
foremost and the most trusted battery brand in India. The century old brand equity is
backed by a robust nation‐wide network of 16000 plus dealers. As on 31st March 2016
With 7 world‐class battery manufacturing factories across India, the range of products
offered by the company covers everything from the smallest batteries required in
motorcycles to the giant batteries powering submarines. After all, India moves on Exide.

[16]
SWOT ANALYSIS OF EXIDE LIFE INSURANCE COMPANY
Strength, Weakness, Opportunity and Threats of Exide Life Insurance Company
limited as follows:

STRENGTH:

 Integrate approach to banking asset management and insurance

 International expertise on excide group of industries
 Spread of 200 office across India
 Exide life insurance is a premier private sector insurance with 15lakhs customer
 More than 50000 advisor in India

WEAKNESS:

 Less penetrations in rural area

 Insurance company have a poor image when it comes to payment of dues
 Advertisement is very low

OPPORTUNITY:

 Going of rural market

 Earning urban people
 Cross selling financial services such as banking

THEREATS:

 Stringent economic measure by government and RBI(Reverse Bank Of India)

 Entry of new NBFCs(Non-Banking Financial Corporations) in the insurance sector

[17]
MAJOR COMPITATORS OF EXIDE LIFE INSURANCE
 ICICI prudential
 Bajaj Allianz
 Kotak Mahindra bank
 SBI life insurance
 HDFC standard
 Birla sun life
 Tata Aij
 Birla sun life

[18]
CHAPTER 3
Study On Insurance

[19]
 STUDY ON INSURANCE
OVERVIEW OF CURRENT INSURANCE INDUSTRY

1. WHAT IS INSURANCE?

Insurance is a tool by which fatalities of a small number are compensated out of

funds (premium payment) collected from plenteous. Insurance is a safeguard against
uncertain events that may occur in the future.

It is an arrangement where the losses experienced by a few are extended over

several who are exposed to similar risks. It is a protection against financial loss arising
on the happening of an unexpected event. Insurance companies collect premium to
provide security for the purpose. Loss is paid out of the premium collected from people
and the insurance companies act as trustees to the amount so collected. These
companies have proposal forms which are filled to give details of insurance required.
Depending upon the answers in the proposal form insurance companies assess the risk
and decide on the premium.

Insurance companies are risk bearers. They underwrite the risk in return for an
insurance premium. the function of insurance is to provide protection, prevent losses,
capital formation etc. hence insurance can be defined as a tool in which a sum of
money as a premium is paid by the insured in consideration of the insurer’s bearing the
risk of paying a large sum .it may also be defined as a contract wherein one party
(insurer) agrees to pay the other party (insured) or his beneficiary, a certain sum upon a
given contingency against which insurance is required.

Insurance industry commands massive funds through sales of insurance

products to large number of clients. Insurers also create liabilities and commit
themselves to compensate for losses occurring to the policyholders on future date. It
also plays an important role in process of capital formation.

[20]
2. NATURE OF INSURANCE
a) Risk sharing and risk transfer: Insurance is used to share the financial losses that
might occur to an individual or his family on the happening of specified events. The loss
arising from such events are shared by all the insured in the form of premium.

b) Risk assessment in advance: Insurance companies are risk bearers. They assess the
risk before insuring to charge the amount of premium.

c) It’s not gambling or charity: The uncertainty is changed to certainty by insuring

property and life because the insurer promises to pay a definite sum at damage or death.
Insurance is antithesis of gambling. Failure of insurance amounts to gambling because the
uncertainty of loss is always looming. Moreover insurance is not possible without
premium. So it is different from charity because charity is given without consideration.

d) Huge number of insured people: It is essential to insure larger number of people or

property to make cost of insurance less consequently premium would also be less.

e) Assists in capital formation: Insurance provides capital to society. Accumulative

funds are invested in productive channels.

3. TYPES OF INSURANCE
Insurance is broadly divided in two segments, based on the nature of insurance, those
are:

1. Life Insurance:
Insurance that pays out a sum of money either on the death of the insured person or
after a set period.
2. Non-Life Insurance or General insurance:

General insurance or non-life insurance policies, including automobile and

homeowners policies, provide payments depending on the loss from a particular financial
event. General insurance is typically defined as any insurance that is not determined to
be life insurance.

[21]
4. HISTORY OF INSURANCE GLOBAL

For now we know the meaning of insurance, different types of insurance. Now let
us know the history and reasons for and behind different types of insurance.

Insurance has existed for thousands of years. The first ever type of insurance was
Property Insurance. It became popular about 3000 BC in China. It all started when
Chinese merchants, as well as their investors, wanted to ensure that they would see a
profit from their goods that they shipped overseas. In the event that a ship was lost at
sea, an insuring partner would reimburse the owners of the ship and goods. To pay for
the loss the merchant would be sold into slavery to the insurer until the debt was repaid.
This was so because, a merchant could not afford to pay for the lost goods or even to buy
a ship unless someone invested.

Property insurance was also seen in Babylon as well. In Babylon, merchants and
investors entered into a contract, in which the supplier of money for a trade agreed to
cancel the loan if the trader was robbed of his goods. The trader who borrowed the
money paid an extra amount for this protection in addition to the usual interest. As for
the lender, collecting these premiums from many traders made it possible for him to
absorb the losses of the few. Later this contract was extended to include provisions for a
family's home and even the death of the insured, where life insurance came into
existence. Slowly this concept started to spread across other places like Greek, Roman.

Since ancient times, communities have pooled some of their resources to help
individuals who suffer loss. Like, about 3500 years ago, Moses instructed the nation of
Israel to contribute a portion of their produce periodically for "the alien resident and the
fatherless boy and the widow."

[22]
 Later the origin of credit insurance, which was included in the Code of
Hammurabi, a collection of Babylonian laws said to predate the Law of Moses .Credit
insurance means, in ancient times the ship owners obtained loans from investors to
finance their trading expeditions. In case, if a ship was lost, the owners were not
responsible to pay back the loans to the investors. The risk to the lenders was covered by
the interest paid by numerous ship owners, since many ships returned safely.

By the middle of the 14th century, marine insurance was one of the most popular
types of insurance among nations of Europe. Things changed dramatically in the 17th
century in Europe. In 1666, the Great Fire of London bought the need for fire insurance
.The Great Fire of London burned for four days and nights. It destroyed 436 acres, 13,200
houses, 89 churches (including Saint Paul's Cathedral), the Custom House, the Royal
Exchange and dozens of other public buildings. Only six people were victims in the
flames, but hundreds died from shock and exposure.

By 1688, Edward Lloyd was running a coffeehouse in London. Where, London

merchants and bankers met informally to do business. There financiers who offered
insurance contracts to seafarers wrote their names under the specific amount of risk that
they would accept in exchange for a certain payment, called premium. These insurers
came to be known as underwriters. Finally, in 1769, Lloyd's became a formal group of
underwriters that in time grew as an insurance company.

The concept of insurance developed at a fast pace with the growth of British
commerce in the 17th and 18th century. The first stock companies to engage in insurance
were chartered in England in the year 1720.

In 1735, the first insurance company in the American colonies was founded at
Charleston. Later in the year 1787, fire insurance corporations were formed in New York.
Then later in the year 1759, the life insurance corporation was started in Philadelphia,
America.

The New York fire which occurred in the year 1835 was the main reason to draw
attention to create reserves to meet unexpected losses. In the year 1837, Massachusetts
was the first state to require companies by law to maintain such reserves. After 1840, life
insurance entered a boom period.

The Workmen's Compensation Act of 1897 in Britain required employers to insure

their employees against industrial accidents. Public liability insurance, fostered by
legislation, made its appearance in the 1880s.It attained major importance with the
advent of the automobile.

Until the 1950s, most insurance companies in the United States were restricted to
provide only one type of insurance, but then legislation was passed to permit fire and
casualty companies to underwrite several classes of insurance. Many firms have since
expanded and also were responsible for many mergers.

[23]
 From this brief accounting of history we can see how insurance came into
existence. Fortunately for us we no longer have to sell ourselves into slavery if our car is
stolen nor we have to be scared of losses due to absence of reserves. However we can be
confident that we will be compensated for our loss. Without people wanting to secure
their investments and great tragedies throughout history we may not have insurance as
we know it today resulting in peace of mind.

5. HISTORY OF INSURANCE INDUSTRY IN INDIA

The insurance industry in India over the past century has gone through big
changes. In India this industry reveals the 360 degree turn. 360 degree turn means that it
started in India from being an open competitive market to nationalization and back to a
liberalized market again.

Insurance industry in India started as a fully private system with no restriction on

foreign participation in the Nineteenth Century. Before independence, a few British
insurance companies dominated the Market. Life insurance was first set up in India
through a British company called the Oriental Life Insurance Company in 1818, followed
by the Bombay Assurance Company in 1823 and the Madras Equitable Life Insurance
Society in 1829.All of these companies operated in India but did not insure the lives of
Indians. They were there insuring the lives of Europeans living in India. Some of the
companies that started later did provide insurance for Indians. But, they were treated as
"substandard" and therefore had to pay an extra premium of 20% or more. The first
company that had policies that could be bought by Indians with "fair value" was the
Bombay Mutual Life Assurance Society starting in 1871.

The first general insurance company, Triton Insurance Company Ltd., was
established in 1850. It was owned and operated by the British. The first general insurance
company was the Indian Mercantile Insurance Company Limited set up in Bombay in
1907.By 1938; the insurance market in India had nearly 176 companies (both life and
non-life).

After the independence, the industry went to the other extreme. It became a
state-owned monopoly. The industry started to witness a problem like fraud. Hence
many regulations were put in place to reduce and control the problems in the industry.

[24]
 After which Insurance was nationalized. In 1956, the then finance minister S. D.
Deshmukh announced nationalization of the life insurance business and then the general
insurance business was nationalized in 1972. Only in 1999 private insurance companies
have been allowed back into the business of insurance with a maximum of 26% of foreign
holding.

1818: Oriental life insurance (at: Calcutta by European people)

1870: Bombay mutual life insurance society (it is the 1st life insurance company of India)
1896: and later several insurance companies were born.
1912: Life insurance companies act and provident fund act
1956: Life Insurance Corporation of India started
154: Indian insurance company
16: Non-Indian insurance company
75: provident fund companies
1850: The Triton insurance company by European people
1970: Indian Mercantile insurance limited

[25]
6. INDIAN SCENARIO.

INDIAN

INSURANCE INDUSTRY

LIFE NON LIFE

INSURANCE INSURANCE

Public Private Public Private

Sector (1) Sector (24) Sector (4) Sector (29)

8. CONTRIBUTION OF THE INSURANCE SECTOR TO INDIAN ECONOMY

Some surveys have predicted that India and China will play a very vital role in the
years to come. Indian economy can be termed as an emerging economy as it is doubling
its GDP in 3 to 5 years and moreover it is not dependent on any particular sector for its
GDP.

If we look at the GDP of the Indian economy very closely over the years, we can
easily come to know the changing structure of the economy. We can also come to know
the changing contribution of the various sectors like agriculture, manufacturing and the
service sector. In the financial year 1993-94, agricultural sector contributed to 31%,
manufacturing accounted to 26.3% and the service sector contributed to 42.7% of the
total GDP of the country.

[26]
 Thus over the years as India became an emerging economy in 2003-04
manufacturing sector contributed for 21.7 %, manufacturing contributed for 26.8
whereas service sector contributed for 51.4% of the total GDP.

There has been 7.5% growth in the total GDP of the country and is estimated to grow at
8.0% in 2006-07. The Indian economy has shown signs of strong performance despite a
rise in oil prices, high inflation rate and abnormal rains in many parts of the country. The
overall growth of the Indian economy has been equally supported by all the three sectors
of the economy, i.e. the agriculture, manufacturing and the service sector. Insurance,
together with the banking sector, contributes to about 7.3 % of the total GDP of India,
and the gross premium collected contributes to about 2% of the total GDP of the country.

The insurance sector in India has completed a full circle from being an open
competitive market to nationalization and back to a liberalized market again. Tracing the
developments in the Indian insurance sector reveals the 360 degree turn witnessed over
a period of almost 200 years.

9. GOVERNMENT POLICIES REGARDING LIFE INSURANCE

 Insurance Regulatory and Development Authority (IRDA) 1999

Reforms in the insurance sector were initiated with the passage of the IRDA bill in
December 1999.it was set up as an independent body and it has been able to frame
globally compatible legislations.

The IRDA was set up to protect the interests of holders of insurance policies ,to
regulate ,promote and insure orderly growth of the insurance industry and for matters
connected therewith or incidental thereto. This act extends to whole of India. With the
establishment of this act, government amended Insurance act 1938, Life Insurance Act
1956 and General Insurance Act 1972.

[27]
 IRDA was formed on the recommendations of Malhotra Committee. In 1999
government of India has set up Malhotra Committee to examine the structure of
insurance industry and recommend changes, under R.N Malhotra –former governor of
RBI.

ABBREVIATION: IRDA
HEAD QUARTERS: HYDRABAD
LOCATION: HYDRABAD, TELENGANA
CHAIRMAN: T.S.VIJAYAN
WEBSITE: irda.gov.in

ORGANANISATIONAL STRACTURE:
As per section-4 of IRDA act 1999, Insurance regulatory development authority
(IRDA) which was constituted by act of parliament) specifying the composition of
authority. IRDA is ten member bodies consisting of

 Chairman
T.S.VIJAYAN
 Five whole time member
1. R.K.Nair
2. M. Ram Prasad
3. S. Roy Choudhary
4. D.D.Singh
5.
 Four part time member
1. Anupdhawan
2. S.B.Mathur
3. Prof. V.K. Gupta
4. CA. Subodh Ku. Agrawal

[28]
  SIGNIFICANCEOF IRDA
The IRDA have significant role or duties on insurance industry as follows

1. Issue to the applicant a certificate registration, renew, modify, suspend or cancel such
registration.

2. Protection of interest of policy holder in matters concerning assigning of policy,

nomination by policy holder ,insurable interest ,settlement of insurance claim ,surrender
value of policy and other terms and conditions of contract of insurance.

3. Specifying requisites qualification, code of conduct and practical training of

intermediary and insurance agents.

4. Promoting efficiency in the conduct of insurance business or company.

5. Promoting and regulating professional’s organisations connected with the insurance

and re-insurance business.

6. Calling for information form, under taken inspection of conducting enquiries and

investigations including audit of the insurers.

7. Control and regulation of the rates, advantages terms and conditions that may be

offered by insurers in respect of general insurance business not so controlled and

regulated by the tariff advisory committee under section-64U of the insurance act 1938.

8. Specifying the form and manner in which books of account shall be maintained and

statement of accounts shall be rendered by insurers and other intermediaries.

9. Regulating the investment of fund by insurance company.

[29]
10. Regulating the maintenance of margin of solvency.

11. Adjunction of disputes between insurer and intermediaries of insurance.

12. Supervising the functioning of tariff advisory committee.

13. Specifying the percentage of premium income of the insurer to finance scheme for

promoting and regulating professionals organisational referred to in clause.

14. Specifying the percentage of life insurance business and general insurance business

to be undertaken by the insurer in the rural and social sector and exercising such other

power as may be prescribed.

[30]
CHAPTER: 4
 ANALYSIS AND INETERPRETATION

[31]
 ANALYSIS AND INETERPRETATION
Market share of LIC and Private Players
Market Players Market share in
percentage

LIC 71.56

Private players 28.44

Total 100

(Table 4.1)

Interpretation:
LIC market share continued to decline in the period up to June 2007, it declined to
71.56% from 78.23% in the same period last year. On the other hand the market share of
the private players is continuously growing up; it increased to 28.44% from 21.77% in
terms of insurance premium.

Market share of LIC and Private Players

Market share of LIC and Private Players up to

June 2007

28.44%

Private Players
LIC

71.56%

(Figure :4.1)

[32]
 Market Share among Private players
Private players Market share in percentage

ICICI Prudential 29

Bajaj Allianz 21

SBI Life 10

HDFC Standard 9

Reliance Life 9

Birla Sun life 5

Kotak Mahindra 3

Old Mutual

Meta Life 3

Aviva 3

Tata AIG 3

Max New York 2

Exide Life Insurance 2

BhartiAxa Life 1

Sahara Life 0

Shriram Life insurance 0

Private total 100

(Table: 4.2)
ICICI PRUDENTIAL BECOMES THE MARKET LEADER AMONG PRIVATE PLAYERS:

ICICI Prudential strengthens its position at the top of the heap by increasing its market
share by 4% in the month of Jan 2014, followed by Bajaj Allianze with 21% market share.
These two private players contribute 50% of the total insurance market among the
private players.

[33]
 Sales Growth among Private players

Private players Year to year growth in sales in

percentage

ICICI Prudential 116

Bajaj Allianz 105

SBI Life 138

HDFC Standard 88

Reliance Life 335

Birla Sunlife 152

Kotak Mahindra 121

Old Mutual

Met Life 125

Aviva 60

Tata AIG 100

Max New York 40

Exide Life Insurance 74

BhartiAxa Life 362

Sahara Life 238

Shriram Life 91

Private total 119

(Table: 4.3)
Private sector sales continued to be robust at 119% year to year, up from 118% Year to
year last month. The month also saw LIC make up some lost ground by growing faster
than the system at 133% year to year. Among growth rates.

[34]
 Various investment alternatives available to consumers
Let us see what are the various investment alternatives that are available to the
people and among that which are the most preferred one. Now, from the data collected
from the 100 respondents which were surveyed through the questionnaire, the following
representation can be made.

Investment Alternatives Total score Rank

Bank Deposits 6.75 1

Insurance 6.46 2

Post office 5.57 3

Gold & Silver 5.33 4

Real Estate 5.07 5

Mutual fund 4.83 6

Equity/Shares 3.84 7

Public Provident Fund(PPF) 3.78 8

Bond & Debentures 1.74 9

(Table: 4.4)
From the above table it can be seen that ranks for theses investment alternatives

where analysed by weighted average method. From this analyse we found Bank

Deposits is the most preferred investment alternative among the people with the

average of 6.75, secondly Insurance with the average of 6.46, followed by other

investment alternatives like Post Office (5.57), Gold and Silver (5.33), Real Estate

(5.07), Mutual Fund (4.83), Equity (3.84), PPF (3.78) and least preferred alternative is

[35]
that Bond and Debenture (1.74).we understood from this 36nalyse that people prefer

the safe and secure investment alternatives like bank deposits, insurance, real

estates, than risky investment alternatives like bonds, equities etc. The reason that

can be attributed for the liking of people towards bank deposit is that people expect

safety for their money they deposit even though there is less appreciation on their

deposit. Secondly insurance, may be because that insurance provides both life cover

as well as security to the holder of the policy and also to the family members of the

insurance holders. Now a days insurance is also providing option to invest in the

markets through plans like ULIP, which gives the holder both the life cover as well as

an opportunity to earn income at the market rate. Then recently real estate is the

major investment alternative among the people particularly among Erode, this is

mainly due to the increase in land value and also good long term investment

preference. Gold and silver also good investment alternative among people due to

the frequent appreciation in the values of gold, next is that mutual fund which is also

the preferable investment alternative due to low risk on their investment, and other

alternatives which are not much preferred were equities, bonds etc. mainly due to

the risk involved in it.

[36]
 Various investment alternatives available to consumers

Investment Alternative Preffered by people Bank Deposits

Insurance
7 6.75
6.46
Post office
6 5.575.33
5.074.83 Gold & Silver
5
Total scores

4 3.843.78 Real Estate

3 Mutual fund
2 1.74
Equity/Shares
1
Public Provident
0 Fund(PPF)
Investment Alternatives Bond &
Debentures

(Figure: 4.2)

Segmentation of the respondents on the basis of certain important criteria:

Now, let us turn our attention towards the respondent who were covered under this

study. These respondents can be categorized on the basis of certain important criteria

like age group, annual income, life insurance policy holders and awareness of Exide Life

Insurance Life in the following way….

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 Age Group

Age Group No of Percentage

Respondent

Below 30 Years 50 50

31-40 Years 32 32

41-50 Years 16 16

51-60 Years 2 2

Above 60 Years 0 0

Total 100 100

(Table: 4.5)
From this table we can see that 50% of the respondent belonged to the age group of
below 30 years, followed by 32% who belonged to the age group between 31-40 years,
then 16% of respondents belong to 41-50 years and only 2% from the respondents
belong to 51-60 years but there is no respondent from the age group above 60.

Age Group
50
50
45
40
Respondents

35 32
30
25
20 16
15
10
5 2 0
0
Below 31-40 41-50 51-60 Above
30 Yrs Yrs Yrs Yrs 60 Yrs
Age Group

(Figure: 4.3)

[38]
 Annual Income Level

Annual Income Level No of Percentage

Respondent

Below 1 Lakh 33 33

1.01-3 Lakh 60 60

3.01-5 Lakh 4 4

Above 5 Lakh 3 3

Total 100 100

(Table: 4.6)
From the above table we can see that 33% of the respondents belonged to a group which
has an annual income of below 1 lakh, followed by highly 60% who belonged to the group
of annual income between 1-3 lakh, then 4% who have an annual income between 3-5
lakh and 3% of respondent who have an annual income above 5 lakh.

Annual Income Level

60
60

50
Respondents

40
33
30

20

10 4 3
0
Below 1 1.01-3 3.01-5 Above 5
Lakh Lakh Lakh Lakh

Annual income

(Figure: 4.4)

[39]
 Hold Life Insurance Policy
Hold life insurance No of Percentage
policy Respondent

Yes 76 76

No 24 24

Total 100 100

(Table: 4.7)

Among the 100 respondents that were taken as a sample size, 76 of

them had life insurance policy that was either taken by him/her or it was
taken by their parents on their name, while 24 of them did not have any kind
of Life insurance policy from any company.

[40]
CHAPTRER: 5
 Findings
 Suggestions

[41]
 FINDINGS

The findings that can be drawn from the survey conducted by us can be

summarized in the following way:

a) It was found that 61 respondents were willing to take a life insurance

under LIC and 39 respondents under other private Insurance players.

b) The scheme mostly preferred by insurance holders was life protection

schemes like death benefits followed by money growth plans like

wealth creation and high return plans.

c) It was found that nearly 50% of the respondents usually save less than

15% and the kind of investment mostly preferred by the respondents

were both long and short term.

d) People who belong to different age groups have different perception

regarding the most important criteria before taking the decision on a

life insurance policy.

People who belong to different income groups also have different

perception regarding the important criteria concerned with the life

insurance.

[42]
 SUGGESTIONS

1. Company should publish their performance by comparing it with their

competitors.
2. Company should make such strategy so that it can make its policies
safer and secure than its competitors, so that it can able to compete
with strong public player like LIC.
3. Middle income people suggest that premium can be collected on
monthly basis instead of twice a year.
4. Less penetrations in rural area so they have to improve marketing
strategy advertisement strategy
5. Insurance company have a poor image when it comes to payment of
dues so the company is required improve their behaviour towards
people.
6. As Exide Life insurance is mostly preferred by the upper segment of
the society so, in this case the company should adopt such strategy so
that it can avail itself among the economic class and poor section of
the society.

[43]
 3.5CONCLUSION

Insurance is a tool by which fatalities of a small number are

compensated out of funds collected from plenteous. Insurance is a

safeguard against uncertain events that may occur in the future. Over the

last 5 to 6 years, the Exide Life insurance company have tripled investors’

money than the other competent; this progress leads to increase the

company image and makes a way to lead the total insurance market.

Thus the study also comprise company image is the highly important

criteria that consumers consider before taking up a life insurance. This is

mainly because people expect safety and secure for their money which they

invest, followed by the factor Premium which we pay to the insurer and then

Bonus and Interest paid by the company, services etc.

[44]
 3.6 BIBLIOGRAPHY
 Books & Magazines

 C.R.Kothari, "Research Methodology" WishwaPrakashan,

Delhi, 2004
 Business Standard and Business News Magazine

 Websites

 http://www.google.co.in

 http://www.wikipedia.org

 http://www.irda.gov.in

 http://www.scribd.com

 http://www.slideshare.net

[45]
 3.7 APPENDIX

A Study of Consumer’s Perception towards Insurance Sector

Questionnaire

Dear respondent,

This questionnaire is aimed at understanding your perception about life insurance .Your
response will be strict confidentiality and it will be used only for academic purpose. Thank you for
spending your valuable time to fill this questionnaire.

1. Name: Male Female

Contact No:

E-mail Id:

2. Age Group:
Below 30 31-40 41-50 51-60

Above 60

3. Educational Qualification:
Under Graduate Post Graduate Diploma

Others (Specify)………….

4. Occupation:
Student Employed Self-Employed

Others (Specify)………….

5. Annual Income Level:

Below 1 Lakh 1.01-3 Lakh 3.01-5 Lakh

Above 5 Lakh

6. What percentage of your Salary do you usually save?

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 Less Than 15% 15-20% 20-25%

Greater Than 25%

7. Do you have life Insurance Policy?

Yes No

8. If ‘Yes’ Which Insurance Company Policy do you have?

LIC Bajaj Allianz Exide Life Insurance

ICICI Prudential
HDFC Standard Others (Specify)……..

9. What scheme of Insurance Policy have you taken?

Life protection plan Education plan Retirement plan

Health plan Money growth plan Others (Specify)……….

10. Among the following Life Insurance Companies in which company you will be Willing to
take a life insurance?

Bajaj Allianz HDFC Standard Life Birla Sunlife

SBI Life TATA- AIG

ICICI Prudential
Max New York
Reliance Meta Life Max New York
Sahara ING Vysya
Exide Life Aviv

Kotak Mahindra LIC AXA-Bharti

11. What is the view on life insurance policy offered by private insurance player?

12. What is your view on Exide Life Insurance Company?

[47]