Consumer Perception Towards LIC in Rewa City

A STUDY ON CONSUMER PERCEPTION TOWARDS LIFE INSURANCE IN SATNA CITY
A STUDY ON CONSUMER PERCEPTION TOWARDS LIFE

INSURANCE IN SATNA CITY
Department of Management, AKS University SATNA Page 1

TABLE OF CONTENTS
1. INTRODUCTION
2. PROFILE AND ORGANIZATION STRUCTURE OF THE COMPANY
3. OBJECTIVES OF STUDY
4. RESEARCH METHODOLOGY
5. ANALYSIS OF THE PROBLEM UNDER STUDY
6. INTERPRETATION OF RESULTS.
7. SUGGESTIONS/ RECOMMENDATIONS ETC.
8. REFERENCES/BIBLIOGRAPHY ETC.
ANNEXURES
9. QUESTIONNAIRE

INTRODUCTION
Perception is the process by which organisms interpret and organize sensation to produce
a meaningful experience of the world. Sensation usually refers to the immediate,
relatively unprocessed result of stimulation of sensory receptors in the eyes, ears, nose,
tongue, or skin. Perception, on the other hand, better describes one's ultimate experience
of the world and typically involves further processing of sensory input. In practice,
sensation and perception are virtually impossible to separate, because they are part of one
continuous process.
Thus, perception in humans describes the process whereby sensory stimulation is

translated into organized experience. That experience, or percept, is the joint product
of the stimulation and of the process itself. Relations found between various types of
stimulation (e.g., light waves and sound waves) and their associated percepts suggest
inferences that can be made about the properties of the perceptual process; theories of
perceiving then can be developed on the basis of these inferences. Because the perceptual
process is not itself public or directly observable (except to the perceiver himself, whose
percepts are given directly in experience), the validity of perceptual theories can be
checked only indirectly.
Historically, systematic thought about perceiving was the province of philosophy.

Philosophical interest in perception stems largely from questions about the sources and
validity of what is called human knowledge (epistemology). Epistemologists ask whether
a real, physical world exists independently of human experience and, if so, how its
properties can be learned and how the truth or accuracy of that experience can be
determined. They also ask whether there are innate ideas or whether all experience
originates through contact with the physical world, mediated by the sense organs.
As a scientific enterprise, however, the investigation of perception has especially

developed as part of the larger discipline of psychology. For the most part, psychology
bypasses the questions about perceiving raised by philosophy in favors of problems that
can be handled by its special methods. The remnants of such philosophical questions,

however, do remain; researchers are still concerned, for example, with the relative
contributions of innate and learned factors to the perceptual process.
Such fundamental philosophical assertions as the existence of a physical world, however,

are taken for granted among most scientific students of perceiving. Typically, researchers
in perception simply accept the apparent physical world particularly as it is described in
those branches of physics concerned with electromagnetic energy, optics, and mechanics.
The problems they consider relate to the process whereby percepts are formed from the
interaction of physical energy (for example, light) with the perceiving organism. Of
further interest is the degree of correspondence between percepts and the physical objects
to which they ordinarily relate.
In philosophy, psychology, and cognitive science, perception is the process of attaining

awareness or understanding of sensory information. The word "perception" comes from
the Latin words perceptio, percipio, and means "receiving, collecting, action of taking
possession, apprehension with the mind or senses.
Perception is one of the oldest fields in psychology. The oldest quantitative law in
psychology is the Weber-Fetcher law, which quantifies the relationship between the
intensity of physical stimuli and their perceptual effects. The study of perception gave
rise to the Gestalt school of psychology, with its emphasis on holistic approach.
Types of Perception:-
Two types of consciousness are considerable regarding perception:
 Phenomenal (any occurrence that is observable and physical) and
 Psychological.
The difference every sighted person can demonstrate to him- or herself is by the simple
opening and closing of his or her eyes: phenomenal consciousness is thought, on average,
to be predominately absent without senses such as sight. Through the full or rich
sensations present in senses such as sight, nothing by comparison is present while the
senses are not engaged, such as when the eyes are closed. Using this precept, it is
understood that, in the vast majority of cases, logical solutions are reached through
simple human sensation. The analogy of Plato's Cave was coined to express these ideas.
Passive perception can be surmised as the following sequence of events:--

Surrounding → Input (senses) → processing (brain) → Output (re-action).
Although still supported by mainstream philosophers, psychologists and neurologists,

this theory is nowadays losing momentum. The theory of active perception has emerged
from extensive research of sensory illusions, most notably the works of Richard L.
Gregory. This theory, which is increasingly gaining experimental support, can be
surmised as dynamic relationship between "description" (in the brain) ↔ senses ↔
surrounding, all of which holds true to the linear concept of experience.
Perception and reality

In the case of visual perception, some people can actually see the percept shift in their
mind's eye. Others, who are not picture thinkers, may not necessarily perceive the 'shape-
shifting' as their world changes. The 'simplistic' nature has been shown by experiment: an
ambiguous image has multiple interpretations on the perceptual level. The question, "Is
the glass half empty or half full?" serves to demonstrate the way an object can be
perceived in different ways.
Just as one object can give rise to multiple percepts, so an object may fail to give rise to
any percept at all: if the percept has no grounding in a person's experience, the person
may literally not perceive it.
The processes of perception routinely alter what humans see. When people view
something with a preconceived concept about it, they tend to take those concepts and see
them whether or not they are there. This problem stems from the fact that humans are
unable to understand new information, without the inherent bias of their previous
knowledge. A person‟s knowledge creates his or her reality as much as the truth, because
the human mind can only contemplate that to which it has been exposed. When objects
are viewed without understanding, the mind will try to reach for something that it already
recognizes, in order to process what it is viewing. That which most closely relates to the
unfamiliar from our past experiences, makes up what we see when we look at things that
we don‟t comprehend.

This confusing ambiguity of perception is exploited in human technologies such as

camouflage, and also in biological mimicry, for example by European Peacock
butterflies, whose wings bear eye markings that birds respond to as though they were the
eyes of a dangerous predator. Perceptual ambiguity is not restricted to vision. For
example, recent touch perception research Robles-De-La-Torre & Hayward 2001 found
that kinesthesia based haptic perception strongly relies on the forces experienced during
touch.
Cognitive theories of perception assume there is a poverty of stimulus. This (with

reference to perception) is the claim that sensations are, by themselves, unable to provide
a unique description of the world. Sensations require 'enriching', which is the role of the
mental model. A different type of theory is the perceptual ecology approach of James J.
Gibson. Gibson rejected the assumption of a poverty of stimulus by rejecting the notion
that perception is based in sensations. Instead, he investigated what information is
actually presented to the perceptual systems. He and the psychologists who work within
this paradigm detailed how the world could be specified to a mobile, exploring organism
via the lawful projection of information about the world into energy arrays. Specification
is a 1:1 mapping of some aspect of the world into a perceptual array; given such a
mapping, no enrichment is required and perception is direct perception.
Preconceptions can influence how the world is perceived. For example, one classic
psychological experiment showed slower reaction times and less accurate answers when
a deck of playing cards reversed the color of the suit symbol for some cards (e.g. red
spades and black hearts).
There is also evidence that the brain in some ways operates on a slight "delay", to allow
nerve impulses from distant parts of the body to be integrated into simultaneous signals.
Perception-in-action
An ecological understanding of perception derived from Gibson's early work is that of
"perception-in-action", the notion that perception is a requisite property of animate
action; that without perception action would be unguided, and without action perception
would serve no purpose. Animate actions require both perception and motion, and
perception and movement can be described as "two sides of the same coin, the coin is

action". Gibson works from the assumption that singular entities, which he calls
"invariants", already exist in the real world and that all that the perception process does is
to home in upon them. A view known as constructivism (held by such philosophers as
Ernst von Glasersfeld) regards the continual adjustment of perception and action to the
external input as precisely what constitutes the "entity", which is therefore far from being
invariant.
Glasersfeld considers an "invariant" as a target to be homed in upon, and a pragmatic

necessity to allow an initial measure of understanding to be established prior to the
updating that a statement aims to achieve. The invariant does not and need not represent
an actuality, and Glasersfeld describes it as extremely unlikely that what is desired or
feared by an organism will never suffer change as time goes on. This social
constructionist theory thus allows for a needful evolutionary adjustment.
A mathematical theory of perception-in-action has been devised and investigated in many

forms of controlled movement, and has been described in many different species of
organism using the General Taw Theory. According to this theory, taw information, or
time-to-goal information is the fundamental 'percept' in perception.
Theories of Perception
Two major classes:
 Bottom-up: perception builds up hierarchically from a set of primitive "features"

to our internal representations.
 Top-down: perception starts with a set of primitives, but our perceptual

experience is influenced by higher-level processes, such as knowledge and
context.
Bottom-up theories
All bottom-up theories rely on the notion that perception builds upwards from a
foundation of primitives to a representation our cognitive system can use. This takes
place without any influence from higher cognitive processes.
Five main theories are as follows:-

 Direct perception
Precursor to behaviorism ó Perception is a direct result of stimulus energy affecting

receptor cells. No higher cognitive processes or internal representations are necessary
 Template/Exemplar theory
We store examples of all the objects we have seen as exemplars or templates. We

compare a perceived object to this set of exemplars until we find a match.
 Proto type theory
Instead of storing many exemplars or rigid templates, we store a prototype, which is kind
of like the average of an object. We compare a perceived object to these prototypes until
we find the closest match.
 Feature theory
Perception starts with the identification of basic features that are put together into more
complex objects, which are put together into more complex objects, etc. until we identify
an object. Example: Pandemonium
 Structural description theory
Kind of like a three-dimensional version of feature theory, where rather than having lines
and corners as the basic features, simple geometric shapes, called geons, are the basic
features. We recognize objects by matching the geons we are looking at to the stored
geons in memory.
Top-down theories
Top-down theories posit varying degrees of influence of higher cognitive processes on

what we actually perceive. The primary example of this is the effect of context on
perception, such as in the Word Superiority Effect.

THE HISTORY OF INDIAN INSURANCE INDUSTRY

The story of insurance is probably as old as the story of mankind. The same instinct that
prompts modern businessmen today to secure themselves against loss and disaster existed
in primitive men also. They too sought to avert the evil consequences of fire and flood
and loss of life and were willing to make some sort of sacrifice in order to achieve
security. Though the concept of insurance is largely a development of the recent past,
particularly after the industrial era – past few centuries – yet its beginnings date back
almost 6000 years.
Life Insurance
In 1818 the British established the first insurance company in India in Calcutta, the
Oriental Life Insurance Company. First attempts at regulation of the industry were made
with the introduction of the Indian Life Assurance Companies Act in 1912. A number of
amendments to this Act were made until the Insurance Act was drawn up in 1938.
Noteworthy features in the Act were the power given to the Government to collect
statistical information about the insured and the high level of protection the Act gave to
the public through regulation and control. When the Act was changed in 1950, this meant
far reaching changes in the industry. The extra requirements included a statutory
requirement of a certain level of equity capital, a ceiling on share holdings in such
companies to prevent dominant control (to protect the public from any adversarial
policies from one single party), stricter control on investments and, generally, much
tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance
companies. Business was heavily concentrated in urban areas and targeted the higher
echelons of society. “Unethical practices adopted by some of the players against the
interests of the consumers” then led the Indian government to nationalize the industry. In
September 1956, nationalization was completed, merging all these companies into the so-
called Life Insurance Corporation (LIC). It was felt that “nationalization has lent the
industry fairness, solidity, growth and reach.”

Insurance may be described as a social device to ensure protection of economic value of

life and other assets. Under the plan of insurance, a large number of people associate
themselves by sharing risks attached to individuals. The risks, which can be insured
against, include fire, the perils of sea, death and accidents and burglary. Any risk
contingent upon these, may be insured against at a premium commensurate with the risk
involved. Thus collective bearing of risk is insurance.
Insurance is a contract whereby, in return for the payment of premium by the insured, the
insurers pay the financial losses suffered by the insured as a result of the occurrence of
unforeseen events. The term "risk" is used to describe the possibility of adverse results
flowing from any occurrence or the accidental happenings, which produce a monetary
loss.
Insurance is a pool in which a large number of people exposed to a similar risk make
contributions to a common fund out of which the losses suffered by the unfortunate few,
due to accidental events, are made good. The sharing of risk among large groups of
people is the basis of insurance. The losses of an individual are distributed over a group
of individuals.
Definitions:
General definition:
In the words of John Magee, “Insurance is a plan by themselves which large number of
people associate and transfer to the shoulders of all, risks that attach to individuals.”
Fundamental definition:
In the words of D.S. Hansell, “Insurance accumulated contributions of all parties

participating in the scheme.”

Contractual definition: In the words of justice Tindall, “Insurance is a contract in

which a sum of money is paid to the assured as consideration of insurer‟s incurring the
risk of paying a large sum upon a given contingency.”
Characteristics of insurance
 Sharing of risks
 Cooperative device
 Evaluation of risk
 Payment on happening of a special event
 The amount of payment depends on the nature of losses incurred.
 The success of insurance business depends on the large number of people insured
against similar risk.
 Insurance is a plan, which spreads the risk and losses of few people among a large
number of people.
 The insurance is a plan in which the insured transfers his risk on the insurer.
 Insurance is a legal contract which is based upon certain principles of insurance

which includes utmost good faith, insurable interest, contribution, indemnity, causes
proxima, subrogation, etc.
 The scope of insurance is much wider and extensive.

Functions of insurance:
Primary functions:
1. Provide protection: - Insurance cannot check the happening of the risk, but can
provide for the losses of risk.
2. Collective bearing of risk: - Insurance is a device to share the financial losses of few
among many others.
3. Assessment of risk: - Insurance determines the probable volume of risk by evaluating

various factors that give rise to risk.
4. Provide certainty: - Insurance is a device, which helps to change from uncertainty to

certainty.
Secondary functions:
1. Prevention of losses: - Insurance cautions businessman and individuals to adopt
suitable device to prevent unfortunate consequences of risk by observing safety
instructions.
2. Small capital to cover large risks: - Insurance relives the businessman from security
investment, by paying small amount of insurance against larger risks and uncertainty.
3. Contributes towards development of larger industries.
Other Function:
Means of savings and investment:
Insurance companies are business houses. The product they sell is financial protection.
To succeed and survive, they must cover their costs, which include payments to cover the
losses of policyholders, as well as sales and administrative expenses, taxes and dividends.

Insurance companies have two sources of income for covering these costs:
 Premiums and
 Investment income.
The premiums are collected on a regular basis and invested in Government Bonds, Gilt,
stocks, mutual funds, real estates and other conservative avenues. However, investment
income depends on market conditions, interest rates, economy etc. and varies from year
to year. Because of the uncertainty associated with the investment income, insurance
companies must generate enough income from premiums to cover the bulk of their
expenses.
Some of the important milestones in the life insurance business in India

are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian soil
started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life 'Insurance Company
started 'Its business,
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate
the life 'Insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical 'Information about both life and non life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the 'Interests of the insuring pubic.
1956: 245 Indian and foreign insurance and provident societies are taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,
1956, with a capital contribution of Rs. 5 chores from the Government of India.

Liberalization of Indian Insurance

1994: Insurance sector invited private participation to induce a spirit of competition
amongst the various insurers and. to provide a choice to the consumers.
1997: Insurance regulator IRDA was set up as there felt the Feed:
To set up an independent regulatory body, that provides greater autonomy to insurance

companies in order to improve their performance, In the first year of insurance market
liberalization (2001) as much as 16 private sector companies including joint ventures
with leading foreign insurance companies have entered the Indian insurance sector. Of
this, 10 were under the life insurance category and six under general insurance. Thus in
all there are 25 players (12-life insurance and l3-general insurance) in the Indian insurance
industry till date.
Players in Indian insurance industry
Life insurers
Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers:
 Life Insurance Corporation of India (LIC)
General insurers:
 General Insurance Corporation of India (GIC) with effect from Dec'2000, a

National Reinsure
GIC had four subsidiary companies, namely with effect from Dec'2000, these subsidiaries
have been de-linked from the parent company and made as independent insurance
companies.
1. The Oriental Insurance Company Limited
2. The New India Assurance Company Limited,
3. National Insurance Company Limited
4. United India Insurance Company Limited.

Yr: 2000-2007: Insurance Industry in the year 2009-2010 had 15 new entrants, namely:
Life Insurers:
S.No. Name of the Company
1 Max New York Life Insurance Co. Ltd.
2 HDFC Standard Life Insurance Company Ltd.
3 ICICI Prudential Life Insurance Company Ltd.
4 Om Kotak Mahindra Life Insurance Co. Ltd.
5 Birla Sun Life Insurance Company Ltd.
6 Tata AIG Life Insurance Company Ltd.
7 SBI Life Insurance Company Limited
8 ING Vysya Life Insurance Company Private Limited
9 Allianz Bajaj Life Insurance Company Ltd.
10 MetLife India Insurance Company Pvt. Ltd.
11 Reliance Life Insurance Company Ltd.
12 Shriram Life Insurance Company Ltd.
13 Sahara India Life Insurance Company Ltd.
14 Bharti AXA Life Insurance Company Ltd.
15 Aviva Life Insurance Company Ltd.

General Insurers:
S.No. Name of the Company
1 Royal Sundaram Alliance Insurance Company Limited
2 Reliance General Insurance Company Limited.
3 IFFCO Tokyo General Insurance Co. Ltd
4 TATA AIG General Insurance Company Ltd.
5 Bajaj Allianz General Insurance Company Limited
6 ICICI Lombard General Insurance Company Limited.

ADVANTAGES OF LIFE INSURANCE

1. It is superior to an ordinary saving plan: - Unlike other saving plans, if affords full
protection against risk of death. In case of death, the full sum assured is made available
under a life assurance policy; whereas under saving scheme the total accumulated saving
alone will be available. The later will be considerable less than the sum assured, if death
occurs during early years.
2. Easy settlement & protection against creditors: - The life assured can name
person(s) called Nominee to whom the policy money would be payable in the event of his
death. The proceeds of a life policy can be protected against the claim of the creditors of
the life assured by effecting a valid assignment of the policy.
3. Ready marketability & suitability for quick borrowing: - After an initial period, if
the policyholder finds him unable to continue payment of premiums, he can surrender the
policy for a cash sum. Alternatively, he can tide over a temporary difficulty by taking
loan on the sole security of the policy without delay. Further, a life insurance policy is
sometimes acceptable as security for a commercial loan.
4. Tax Relief: - The Indian Income-Tax allows deduction of certain portion of the
taxable income, which is diverted to payment of life insurance premiums from the total
income tax liability. When this tax relief is taken into account, it will be found that the
assured is in effect paying a lower premium for his insurance.
Need for insurance

 To provide cash to meet various routine expenses of the family on or immediately
after the death of the income earner of the family.
 To preserve the family‟s accustomed standard of living ever after the death of the
breadwinner.
 To provide continuous flow of funds for the living spouse.
 To allocate income funds for the children‟s education.
 To provide a retirement income throughout old age.

 To provide a reliable savings plan for the future.

 To supplement income when earning power is reduced or eroded by illness,
accident or any handicap.
 To furnish surplus earnings for the investors should disaster strike.
7 p’s of insurance sector:
7 P’s Of Insurance Sector
Product Promotions Pricing
Physical
Evidence Place
People Process
Wherever there is uncertainty there is risk. We do not have any control over
uncertainties which involves financial losses. The risks may be certain events like
death, pension, retirement or uncertain events like theft, fire, accident, etc.
Insurance is a financial service for collecting the savings of the public and providing
them with risk coverage. The main function of Insurance is to provide protection
against the possible chances of generating losses. It eliminates worries and miseries of
losses by destruction of property and death. It also provides capital to the society as
the funds accumulated were invested in productive heads. Insurance comes under the
service sector and while marketing this service, due care is to be taken in quality

product and customer satisfaction. While marketing the services, it is also pertinent
that they think about the innovative promotional measures. It is not sufficient that you
perform well but it is also important that you let others know about the quality of your
positive contributions. The creativity in the promotional measures is the need of the
hour. The advertisement, public relations, word of mouth communication needs due
care and personal selling requires intensive care.
INSURANCE MARKETING: The term Insurance Marketing refers to the marketing

of Insurance services with the aim to create customer and generate profit through
customer satisfaction. The Insurance Marketing focuses on the formulation of an ideal
mix for Insurance business so that the Insurance organization survives and thrives in
the right perspective.
MARKETING --MIX FOR INSURANCE COMPANIES: The marketing mix is the

combination of marketing activities that an organization engages in so as to best meet
the needs of its targeted market. The Insurance business deals in selling services
and therefore due weight-age in the formation of marketing mix for the Insurance
business is needed. The marketing mix includes sub-mixes of the 7 P's of marketing
i.e. the product, its price, place, promotion, people, process & physical attraction. The
above mentioned 7 P's can be used for marketing of Insurance products, in the
following manner:
1. Product:
A product means what we produce. If we produce goods, it means tangible product

and when we produce or generate services, it means intangible service product. A
product is both what a seller has to sell and a buyer has to buy. Thus, an Insurance
company sells services and therefore services are their product.
In India, the Life Insurance Corporation of India (LIC) and the General Insurance
Corporation (GIC) are the two leading companies offering insurance services to the
users. Apart from offering life insurance policies, they also offer underwriting and
consulting services. When a person or an organization buys an Insurance policy from

the insurance company, he not only buys a policy, but along with it the assistance and
advice of the agent, the prestige of the insurance company and the facilities of claims
and compensation. It is natural that the users expect a reasonable return for their
investment and the insurance companies want to maximize their profitability. Hence,
while deciding the product portfolio or the product-mix, the services or the schemes
should be motivational. The Group Insurance scheme is required to be promoted, the
Crop Insurance is required to be expanded and the new schemes and policies for the
villagers or the rural population are to be included. The Life Insurance Corporation
has intensified efforts to promote urban savings, but as far as rural savings are
concerned, it is not that impressive. The introduction of Rural Career Agents Scheme
has been found instrumental in inducing the rural prospects but the process is at infant
stage and requires more professional excellence. The policy makers are required to
activate the efforts. It would be prudent that the LIC is allowed to pursue a policy of
direct investment for rural development. Investment in Government securities should
be stopped and the investment should be canalized in private sector for maximizing
profits. In short, the formulation of product-mix should be in the face of innovative
product strategy. While initiating the innovative process it is necessary to take into
consideration the strategies adopted by private and foreign insurance companies.
2. Pricing:
In the insurance business the pricing decisions are concerned with:
i) The premium charged against the policies,
ii) Interest charged for defaulting the payment of premium and credit facility, and
iii) Commission charged for underwriting and consultancy activities. With a view of
influencing the target market or prospects the formulation of pricing strategy becomes
significant. In a developing country like India where the disposable income in the
hands of prospects is low, the pricing decision also governs the transformation of
potential policyholders into actual policyholders. The strategies may be high or low

pricing keeping in view the level or standard of customers or the policyholders. The
pricing in insurance is in the form of premium rates. The three main factors used
for determining the premium rates under a life insurance plan are mortality, expense
and interest. The premium rates are revised if there are any significant changes in any
of these factors.
• Mortality (deaths in a particular area): When deciding upon the pricing strategy the
average rate of mortality is one of the main considerations. In a country like South
Africa the threat to life is very important as it is played by host of diseases.
• Expenses: The cost of processing, commission to agents, reinsurance companies as
well as registration are all incorporated into the cost of installments and premium sum
and forms the integral part of the pricing strategy
• Interest: The rate of interest is one of the major factors which determine people's
willingness to invest in insurance. People would not be willing to put their funds to
invest in insurance business if the interest rates provided by the banks or other
financial instruments are much greater than the perceived returns from the insurance
premiums.
3. Place:
This component of the marketing mix is related to two important facets --

i) Managing the insurance personnel, and
ii) Locating a branch. The management of agents and insurance personnel is found
significant with the viewpoint of maintaining the norms for offering the services. This
is also to process the services to the end user in such a way that a gap between the
services- promised and services -- offered is bridged over. In a majority of the service
generating organizations, such a gap is found existent which has been instrumental in
making worse the image problem. The transformation of potential policyholders to the
actual policyholders is a difficult task that depends upon the professional excellence of

the personnel. The agents and the rural career agents acting as a link, lack
professionalism. The front-line staff and the branch managers also are found not
assigning due weight-age to the degeneration process. The insurance personnel if not
managed properly would make all efforts insensitive. Even if the policy makers make
provision for the quality upgrading the promised services hardly reach to the end
users.
It is also essential that they have rural orientation and are well aware of the lifestyles
of the prospects or users. They are required to be given adequate incentives to show
their excellence. While recruiting agents, the branch managers need to prefer local
persons and provide them training and conduct seminars. In addition to the agents, the
front-line staff also needs an intensive training program to focus mainly on behavioral
management. Another important dimension to the Place Mix is related to the location
of the insurance branches. While locating branches, the branch manager needs to
consider a number of factors, such as smooth accessibility, availability of
infrastructural facilities and the management of branch offices and premises. In
addition it is also significant to provide safety measures and also factors like office
furnishing, civic amenities and facilities, parking facilities and interior office
decoration should be given proper attention. Thus the place management of insurance
branch offices needs a new vision, distinct approach and an innovative style. This is
essential to make the work place conducive, attractive and proactive for the generation
of efficiency among employees. The branch managers need professional excellence
to make place decisions productive.
4. Promotion:
The insurance services depend on effective promotional measures. In a country like

India, the rate of illiteracy is very high and the rural economy has dominance in the
national economy. It is essential to have both personal and impersonal promotion
strategies. In promoting insurance business, the agents and the rural career agents play
an important role. Due attention should be given in selecting the promotional tools for
agents and rural career agents and even for the branch managers and front line staff.
They also have to be given proper training in order to create impulse buying.

Advertising and Publicity, organization of conferences and seminars, incentive to

policyholders are impersonal communication. Arranging Kirtans, exhibitions,
participation in fairs and festivals, rural wall paintings and publicity drive through the
mobile publicity van units would be effective in creating the impulse buying and the
rural prospects would be easily transformed into actual policyholders.
5. People:
Understanding the customer better allows designing appropriate products. Being a

service industry which involves a high level of people interaction, it is very important
to use this resource efficiently in order to satisfy customers. Training, development
and strong relationships with intermediaries are the key areas to be kept under
consideration. Training the employees, use of IT for efficiency, both at the staff and
agent level, is one of the important areas to look into.
6. Process:
The process should be customer friendly in insurance industry. The speed and
accuracy of payment is of great importance. The processing method should be easy
and convenient to the customers. Installment schemes should be streamlined to cater
to the ever growing demands of the customers. IT & Data Warehousing will smoothen
the process flow. IT will help in servicing large no. of customers efficiently and bring
down overheads. Technology can either complement or supplement the channels of
distribution cost effectively. It can also help to improve customer service levels. The
use of data warehousing management and mining will help to find out the profitability
and potential of various customers product segments.
7. Physical evidence:
Distribution is a key determinant of success for all insurance companies. Today, the
nationalized insurers have a large reach and presence in India. Building a distribution
network is very expensive and time consuming. If the insurers are willing to take
advantage of India's large population and reach a profitable mass of customers, then new

distribution avenues and alliances will be necessary. Initially insurance was looked upon
as a complex product with a high advice and service component.
Buyers prefer a face-to-face interaction and they place a high premium on brand names
and reliability. As the awareness increases, the product becomes simpler and they become
off-the-shelf commodity products. Today, various intermediaries, not necessarily
insurance companies, are selling insurance. For example, in UK, retailer like Marks &
Spencer sells insurance products. The financial services industries have successfully used
remote distribution channels such as telephone or internet so as to reach more customers,
avoid intermediaries, bring down overheads and increase profitability. A good example is
UK insurer Direct Line. It relied on telephone sales and low pricing. Today, it is one of
the largest motor insurance operators.
Technology will not replace a distribution network though it will offer advantages like
better customer service. Finance companies and banks can emerge as an attractive
distribution channel for insurance in India. In Netherlands, financial services firms
provide an entire range of products including bank accounts, motor, home and life
insurance and pensions. In France, half of the life insurance sales are made through
banks. In India also, banks hope to maximize expensive existing networks by selling a
range of products. It is anticipated that rather than formal ownership arrangements, a
loose network of alliance between insurers and banks will emerge, popularly known as
bank assurance.
Another innovative distribution channel that could be used are the non-financial
organizations. For an example, insurance for consumer items like fridge and TV can be
offered at the point of sale. This increases the likelihood of insurance sales. Alliances
with manufacturers or retailers of consumer goods will be possible and insurance can be
one of the various incentives offered.

Various types of life insurance policies:-

 Endowment policies: This type of policy covers risk for a specified period, and
at the end of the maturity sum assured is paid back to policyholder with the
bonuses during the term of the policy.
 Money back policies: This type of policy is for periodic payments of partial
survival benefits during the term of the policy as long as the policy holder is alive.
 Group insurance: This type of insurance offers life insurance protection under
group policies to various groups such as employers-employees, professionals, co-
operatives etc it also provides insurance coverage for people in certain approved
occupations at the lowest possible premium cost.
 Term life insurance policies: This type of insurance covers risk only during the
selected term period. If the policy holder survives the term, risk cover comes to an
end. These types of policies are for those people who are unable to pay larger
premium required for endowment and whole life policies. No surrender, loan or
paid up values are in such policies.
 Whole life insurance policies: This type of policy runs as long as the
policyholder is alive and is covered for the entire life of the policyholder. In this
policy the insured amount and the bonus is payable only to nominee on the death
of policy holder.
 Joint life insurance policies: These policies are similar to endowment policies in
maturity benefits and risk cover, but joint life policies cover two lives
simultaneously such as married couples. Sum assured is payable on the first death
and again on the death of survival during the term of the policy.
 Pension plan: a pension plan or annuity is an investment over a certain number
of years but does not provide any life insurance cover. It offers a guaranteed
income either for a life or certain period.
 Unit linked insurance plan: ULIP is a kind of insurance plan which provides
life cover as well as return on premium paid over a certain period of time. The
investment is denoted as units and represented by the value called as net asset
value (NAV).

IRDA (Insurance Regulatory and Development Authority)

The Insurance Act, 1938 had provided for setting up of the Controller of Insurance to act
as a strong and powerful supervisory and regulatory authority for insurance. Post
nationalization, the role of Controller of Insurance diminished considerably in
significance since the Government owned the insurance companies. But the scenario
changed with the private and foreign companies foraying in to the insurance sector. This
necessitated the need for a strong, independent and autonomous Insurance Regulatory
Authority was felt. As the enacting of legislation would have taken time, the then
Government constituted through a Government resolution an Interim Insurance
Regulatory Authority pending the enactment of a comprehensive legislation.
The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for
the establishment of an Authority to protect the interests of holders of insurance policies,
to regulate, promote and ensure orderly growth of the insurance industry 17 and for
matters connected therewith or incidental thereto and further to amend the Insurance Act,
1938, the Life Insurance Corporation Act, 1956 and the General insurance Business
(Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of
India (for life insurance business) and General Insurance Corporation and its subsidiaries
(for general insurance business).
The act extends to the whole of India and will come into force on such date as the Central
Government may, by notification in the Official Gazette specify. Different dates may be
appointed for different provisions of this Act. The Act has defined certain terms; some of
the most important ones are as follows:
 Appointed day means the date on which the Authority is established under the act.
Authority means the established under this Act.
Interim Insurance Regulatory Authority means the Insurance Regulatory Authority set up
by the Central Government through Resolution No. 17(2)/ 94-lns-V dated the 23rd
January, 1996.
Words and expressions used and not defined in this Act but defined in the

Insurance Act, 1938 or the Life Insurance Corporation Act, 1956 or the General
Insurance
Business (Nationalization) Act, 1972 shall have the meanings respectively assigned to
them in those Acts.
A new definition of "Indian Insurance Company" has been inserted. "Indian insurance
company" means any insurer being a company
(a) Which is formed and registered under the Companies Act, 1956
(b) In which the aggregate holdings of equity shares by a foreign company, either by
itself or through its subsidiary companies or its nominees, do not exceed twenty-six
percent, paid up capital in such Indian insurance company.
(c) Whose sole purpose is to carry on life insurance business, general insurance business
or re-insurance business?
The Authority is a ten member team consisting of
(a) A Chairman;
(b) five whole-time members;
(c) four part-time members,
(all appointed by the Government of India)

COMPANY PROFILE
ING in India
In India, ING is present in all three fields of banking, insurance and asset management in
the form of ING, ING Vysya Life Insurance and ING Investment Management
respectively. The presence in all three fields signifies the importance that the group
attaches to the Indian markets and the group's operations here, as well as its bullish future
outlook on the country.
ING and ING Vysya Life Insurance are headquartered at Bangalore, while the corporate
office of ING Investment Management is situated at Mumbai. The synergies arising out
of the three distinct but complimentary businesses are bound to be an asset to the group in
the changing market dynamics of the future. The first such signs are already visible on
the horizon with combined products being successfully launched by the different entities
of the group in conjunction with each other.
The origin of ING Group

On the other hand, ING group originated in 1990 from the merger between National –
Nederland NV the largest Dutch Insurance Company and NMB Post Bank Group NV.
Combining roots and ambitions, the newly formed company called “International
Nederland Group”. Market circles soon abbreviated the name to I-N-G. The company
followed suit by changing the statutory name to “ING Group N.V.”.
Profile
ING has gained recognition for its integrated approach of banking, insurance and asset
management. Furthermore, the company differentiates itself from other financial service
providers by successfully establishing life insurance companies in countries with
emerging economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile.
Another specialization is ING Direct, an Internet and direct marketing concept with
which ING is rapidly winning retail market share in mature markets. Finally, ING

distinguishes itself internationally as a provider of „employee benefits‟, i.e. arrangements

of nonwage benefits, such as pension plans for companies and their employees.
Mission
ING`s mission is to be a leading, global, client-focused, innovative and low-cost provider
of financial services through the distribution channels of the client‟s preference in
markets where ING can create value.
The new identity

The immediate benefit to the bank, ING Vysya Bank, has been the pride of having
become a Member of the global financial giant ING. As at the end of the year December
2008, ING's total assets exceeded 1332 billion euro‟s, employed over 125000 people,
served over 85 million customers, across 50 countries. This global identity coupled with
the back up of a financial power house and the status of being the first Indian
International Bank, would also help to enhance productivity, profitability, to result in
improved performance of the bank, for the benefit of all the stake holders.
ING
ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile, Vysya
Bank Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse,
ING of Dutch origin, during Oct 2002. The origin of the erstwhile Vysya Bank was pretty
humble. It was in the year 1930 that a team of visionaries came together to found a bank
that would extend a helping hand to those who weren't privileged enough to enjoy
banking services.
It's been a long journey since then and the Bank has grown in size and stature to
encompass every area of present-day banking activity and has carved a distinct identity of
being India's Premier Private Sector Bank.
In 1980, the Bank completed fifty years of service to the nation and post 1985; the Bank
made rapid strides to reach the coveted position of being the number one private sector

bank. In 1990, the bank completed its Diamond Jubilee year. At the Diamond Jubilee
Celebrations, the then Finance Minister Prof. Madhu Dandavate, had termed the
performance of the bank „Stupendous‟. The 75th anniversary, the Platinum Jubilee of the
bank was celebrated during 2005.
The long journey of seventy-five years has had several milestones…

 1930 Set up in Bangalore
 1948 Scheduled Bank
 1985 Largest Private Sector Bank
 1987 The Vysya Bank Leasing Ltd. Commenced
 1988 Pioneered the concept of Co branding of Credit Cards
 1990 Promoted Vysya Bank Housing Finance Ltd.
 1992 Deposits cross Rs.1000 crores
 1993 Number of Branches crossed 300
 1996 Signs Strategic Alliance with BBL., Belgium. Two National Awards by
Gem & Jewellery Export Promotion Council for excellent performance in Export
Promotion
 1998 Cash Management Services & commissioning of VSAT. Golden Peacock
Award for the best HR Practices by Institute of Directors. Rated as Best Domestic
Bank in India by Global Finance (International Financial Journal - June 1998)
 2000 State of the art Date Centre at ITPL, Bangalore. RBI clears setting up of
ING Vysya Life Insurance Company
 2001 ING-Vysya commenced life insurance business.
 2002 The Bank launched a range of products & services like the Vys Vyapar
Plus, the range of loan schemes for traders, ATM services, Smartserv, personal
assistant service, Save & Secure, an account that provides accident hospitalization
and insurance cover, Sambandh, the International Debit Card and the mobile-bank
net banking service.
 2002 ING takes over the Management of the Bank from October 7th, 2002

 2002 RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their
letter of 10.12.02
 2003 Introduced customer friendly products like Orange Savings, Orange
Current and Protected Home Loans
 2004 Introduced Protected Home Loans - a housing loan product
 2005 Introduced Solo - My Own Account for youth and Customer Service Line
Phone Banking Service
 2006 Bank has networked all the branches to facilitate „AAA‟ transactions i.e.
Anywhere, Anytime & Anyhow Banking
ING Vysya Life Insurance

ING Vysya Life Insurance Company Limited a part of the ING Group the world‟s
largest financial services provider^ entered the private life insurance industry in
India in September 2001. Headquartered at Bangalore, ING Vysya Life is
currently present in 246 cities and has a network of over 300 branches, staffed by
7,000 employees and over 51,000 advisors, serving over 5.5 lakh customers.
Product Portfolio
ING Vysya Life follows a “customer centric approach” while designing its
products. The Company‟s product portfolio offers products that cater to every
financial requirement, at all life stages.
In fact, the company has developed the Life Maker TM a simple tool which can
be used to choose a plan most suitable to a specific customer based on his needs,
requirements and current life stage. This tool helps you build a complete financial
plan for life at every life stage, whether the requirement is Protection, Savings,
Investment or Retirement. Suitable products from ING Vysya Life Insurance‟s
product portfolio for each such requirement, makes selection of your plan an easy
exercise
The Company aims to make customers look at life insurance afresh, not just as a

tax saving device but as a means to live life to the fullest. It believes in enhancing
the very quality of life, in addition to safeguarding an individual's security.
Distribution Channels
ING Vysya Life has a diversified distribution platform. While Tied Agency
remains the strongest channel, the Alternate Channels business within ING Vysya
Life is one of the fastest growing distribution channels. ING Vysya Life has
strengthened its position as the unparallel leader in the life insurance industry in
cooperative banks tie ups. The company currently has tie ups with 130
cooperative banks across the country. The Alternate Channels division has Bank
assurance, ING, Corporate Agents and SMINCE
At ING Life, our mission is „To set the standard in helping our customers manage
their financial future.‟
Our business is driven on our values of Optimism, Knowledgeable, Trustworthy and
Transparent.
 Optimism: We bear an approach of „Optimism‟ towards our company, towards

each other, in our products and in our care for our customer‟s interests.
 Knowledgeable: We cultivate the knowledgeable value through our robust way
of working, sharing and actively communicating.
 Trustworthy: We deliver trustworthiness by doing the „right things in right way‟,
by delivering an „easier‟ customer experience and by being a socially responsible
corporate.
 Transparent: Our value of „transparent‟ drives our actions, reflects in our
products and services.

Insurance
Management
Solution


Types of business proposal:
o Internal business proposal
o External business proposal
Internal business proposal
This business proposal meant for the head of the organization also
called as justification report. An internal business proposal provides an
opportunity to develop the competence and confidence to express your ideas,
awareness, initiative and problem solving skill.
External business proposal
It is for the outsiders. Management plan, cooperation qualification,
staffing plan, contact and pricing, technology plan, regulatory requirements
are main components of business proposal. Here, at Max Life Insurance we
offer a bouquet of insurance solutions to meet every need.

Individual
For individuals, we have a range of protection, investment, pension and
savings plans that assist and nurture dreams apart from providing protection.
You can choose from a range of products to suit your life-stage and needs.
For organizations we have a host of customized solutions that range from
Group Term Insurance, Gratuity. Leave Encashment and Superannuation
Products. These affordable plans apart from providing long term value to the
employees help in enhancing goodwill of the company.

Protection Plans
Life is full of surprises. Unexpected events that strike without warning can
disrupt the smooth rhythm of life. You must be prepared at all times. As the
primary earning member, you need to make sure that your family is never
lacking in anything even if you are taken away from them forever. Do your
best today to ensure that your family can always enjoy a comfortable
lifestyle. In double income families, both spouses should get adequate life
covers especially if there are dependent children involved. We have plans
that guarantee maximum protection at a low cost.
• Five Yr Renewable and ConvertibleTM • Level Term Policy

Children Plans
Your parenting is perfect but is your planning adequate? Are you thinking
beyond the immediate to the future, about higher education and professional
courses, in India and abroad? Many children are keen to pursue
unconventional careers. Are you in tune with their aspirations and passions?
As parents you would never let money come in the way of your children and
the fulfillment of their true potential. Our plans will help build the corpus
that allows your children to dream big and soar high
• Children's Endowment to 18 (Par) • Children's Endowment to 24 (Par)
SMART Steps • SMART Steps Plus, SMART Steps Single Premium

Investment Plans
Building a nest egg is about aggregating surplus amounts regularly to allow
them to grow into a sizeable sum. Investments should be aligned to specific,
long-term goals Luxury car, foreign holiday or dream house, create your
own wish list and make it come true. Your dreams are in your hands. Every
move that you make today will bring you a step closer to your goals. Our
Investment Plans offer the dual benefit of protection and market-linked
returns with the flexibility to choose the premium and determine the market
exposure.
• Life MakerTM Premium
• Life MakerTM Gold • Life MakerTM Platinum
• Life InvestTM
• SMART Assure

Retirement Plans
Let your golden years be the most precious of your life, full of freedom and
choice. A time to pursue your hobbies, travel and enjoy the good life. You
will never miss your salary cheque or be constrained by rising inflation.
Even as you work hard to make a better today, it is up to you to create a
superior tomorrow. If you want to sustain your current lifestyle even after
you stop working, make that money work for you. Our Retirement Plans will
keep you comfortable and content, and let you live the life you deserve.
Easy LifeTM Retirement (Par) • SMART Invest Pension

Health Plans
Do you know the cost of healthcare has climbed faster than inflation?
Medical costs can be a big drain on finances. A medical crisis can strike
anyone, anytime and may even force an individual to dip into savings to
meet these sudden and steep costs. Such an eventuality could delay or
destroy a cherished financial goal. No wonder, health is wealth. The health
of every member of the family is precious
and you need to safeguard it as a priority. Use our Health Plans to make sure
your family stays fit and fine.
• Lifeline MediCash • Lifeline Wellness Plus
• Lifeline MediCashTM Plus • Lifeline Safety NetTM
• Lifeline Wellness

Savings Plans
Is your money working for you? Clearly not, if it is lying idle in multiple
bank accounts. We will instill the discipline of investment through force of
habit as you park your money for protection and growth to meet your needs
over your lifetime. Choose a plan that matches your needs and budget. Our
dual benefits saving plans recognize your need for all round financial
protection, and include a life cover that will protect you till the last day.
Whole Life Participating Life Gain Plus 23 (Par)

OBJECTIVE OF THE STUDY

The main purpose of the project is to do comparative analysis of different health
insurance products, check the awareness level and perception of insurance by the
individual. The project would also help in understanding preference of people regarding
private and public life insurance.
 To check the awareness level about life insurance among the peoples of satna city.
 To know which advertising media puts more impact on the buying decision of
consumer.
 To analyze the customer preference level associated with different life insurance
plans.
 To study the factors influences decision making while purchasing a life insurance
product.

RESEARCH METHODOLOGY
Data collection
For data collection, I developed a well defined questionnaire as a research instrument,
consisting questions aimed to measure the consumer perception about insurance company
in India, their views and comments about Company‟s structure. I conducted unstructured
interviews (sample size) of 100 persons of different age group in time duration of three
days. All the data generated was primary data that was generated from different peoples
of age group under NCR region.
Primary data:
Individual respondents, Chartered Accountants, Tax
Consultants, Insurance Agents, Auto loan providers were personally visited and
interviewed. They were the main source of Primary data. The method of collection of
primary data was direct personal interview through a structured questionnaire.
Secondary Data:
It was collected from internal sources. The secondary data was collected on the basis of
organizational file, official records, newspapers, magazines, management books,
preserved information in the company‟s database and website of the company.

Research objectives
The main aim of the research was to explore consumers‟ attitudes to allowing insurance
companies to access results of genetic tests for the purpose of risk assessment and
premium setting. More specifically, the objectives of the research were:
 Proper understanding and analysis of life insurance industry.
 To know about brand awareness of ING Vysya Life Insurance and customer‟s
preference about ING Vysya Life Insurance.
 Conduct market survey on a sample selected from the entire population and derive
opinion on that research.
 To help company in establishing a network of Life Insurance Advisors and to
promote the benefits those are provided by ING Vysya Life Insurance.
 To explore consumers‟ understanding of life insurance companies‟ use of
different factors in assessing risk.
 To understand consumers‟ attitudes to life insurance companies‟ use of different
factors in assessing risk.
 These factors included sex, age, smoking status, current and past health,
family history of cancer or heart disease, and genetic make-up.
 To determine if the use of genetic test results by life insurance companies would
deter consumers from having such tests.
 To explore consumer attitudes to disclosure of information to insurance
companies.
 Attitudes to voluntary and involuntary disclosure.
 To gain an understanding of why consumers hold particular attitudes.
 To collect information on consumers‟ current ownership of life insurance
products, and demographic information.

Research design
Research was initiated by examining the secondary data to gain insight into the problem.
The primary data is evaluated on the basis of the analysis of the secondary data.
Developing the research plan

The data for this research project has been collected through self administration. Due to
time limitation and other constraints direct personal interview method is used. A
structured questionnaire was framed as it is less time consuming, generates specific and
to the point information, easier to tabulate and interpret. Moreover respondents prefer to
give direct answers. In questionnaires open ended and closed ended, both the types of
questions has been used.
Sampling plan
Since it is not possible to study whole population, it is necessary to obtain representative
samples from the population to understand its characteristics.
Sampling Units:
Individual respondents for studying Customer Buying Behavior and Market
Segmentation, selected randomly from different areas in NCR, like various shopping
malls and markets, Government Offices. Chartered Accountants, Tax Consultants,
Lawyers, Business Men, Professionals and House Wives of for recruitment of Life
Insurance Advisors
 Sample Technique: Random Sampling

 Research Instrument: Structured Questionnaire
 Contact Method: Personal Interview

Sample size
 Study of Customer Buying Behavior and Market Segmentation: 100
Respondents
Data collection instrument development
The mode of collection of data is based on Survey Method and Field Activity. Primary
data collection is based on personal interview. I have prepared the questionnaire
according to the necessity of the data to be collected.
Research limitations
 The research is confined to certain parts of NCR and does not necessarily show a
pattern applicable to all of country.
 Some respondents were reluctant to divulge personal information which can affect
the validity of all responses.
In a rapidly changing industry, analysis on one day or in one segment can change very
quickly. The environmental changes are vital to be considered in order to assimilate the
findings.

PROJECT FINDINGS & ANALYSIS
I have presented below the project findings and analysis, addressed to the respondents to
gauge the attitude, perception and consumer behavior of the people toward life insurance.
Market share of the key players in the life insurance sector in India.
SALES
2%
1% 1%
ICICI Pru
4%
5% Bajaj Allianz
3% 22%
SBI Life
HDFC Standard
7%
Birla Sunlife
8% Reliance Life
14%
Max New York
8% Tata Aig
10% Aviva
7%
8% Kotak Mahindra
Met Life
INTERPRETATION
In life insurance sector ICICI Pru is the leading life insurance company in private sector,
followed by Bajaj Allianz, SBI life, HDFC standard, Birla Sun life and others.

Employed customers
The question was asked to that the policy holder is job holder or not?
INTERPRETATION
It was founded that 83% customers who have taken the policy are job oriented.

BENEFIT OF INSURANCE
What is the main cause of taking the life insurance policy?
Future Security 59%

Tax Deductions 28%
Future Investment 13%
INTERPRETATION
The majority of consumer find it as future security followed by tax saving.

Mode of buying life insurance policy

The question was asked to know that how a customer bought the policy weather it was
customer approach to company or company approach to customer.
Approach
42%
58% Company Approach

Others
INTERPRETATION
It was founded that 58% people have taken policy because of company approach and rest
bought either by their approach or other reasons.

Respondents having life insurance

The question was asked to the respondents to know how many of the respondents had a
life insurance policy.
Policy Holders
44%
Have Policy
Don't Have Policy
56%
INTERPRETATION
From the survey it was found that 44% of the respondents had a health insurance policy
where as 56% of the respondents did not had a life insurance policy.

Satisfied with the policy

The question was asked to know that what percentage of customers is satisfied with the
policies.
INTERPRETATION
It was founded that majority of customer are not satisfied with their current policy.

From whose suggestion have the respondents taken a policy?

It was asked to gain an insight from the respondents that on whose suggestion they opted
for a life insurance.
Buying Process
18%
Company Approach
Influence Of Advertisment
24% 58% Friends & Family
INTERPRETATION
After the survey it was founded that 58% of the respondents took policy cover from the
suggestions of company approach. And only 24% respondents took policy on the
recommendation of the agents. Other sources like banks, corporate tie-ups and etc. play a
minute role in reaching out people for life insurance policy.

Which sector customer chose public or private?
INTERPRETATION
After the survey it was found that still major portion of customers go for public insurance
companies, but with the entry of more and more private companies the scenario is
changing rapidly, people need of more and better returns are opting for private
companies, and this can be justified by the increasing market share of private companies
in the Indian insurance sector. There are various ways in which private companies are
found much more lucrative than public companies and the fact which support this
statement are as follows:
1. Versatility of products
2. Efficient fund managers
3. Better customer services
4. More returns
5. Regular follow up
6. Quicker settlement

Where do private life insurance companies need to improve?

This question was asked to know where private companies are lacking. It might be in
term of service, return, information, verity or easy claim.
INTERPRETATION
From the research it was found that there is a need for the private player to improvement
in certain sector to complete with the government sector companies, majority of the
people think that people think that private companies need to improve in easy claim and
information.

CONCLUSIONS
Life insurance is a relatively low involvement product, even for those who have
voluntary cover.
It is not something that occupies consumers‟ minds at times other than the time of
consideration / purchase. The result of this is a low level of awareness and understanding
of life insurance products, and more generally, of the operation of life insurance
companies.
There is confusion in the minds of consumers between life insurance, general insurance,
health insurance, and some investment products (such as endowment products). Life
insurance companies, therefore, are subject to odium emanating from problems in the
general insurance sector, such as the collapse of HIH, increasing general insurance
premiums, and obscenely large director salaries and bonuses. This is the case even
among apparently erudite individuals.
In this knowledge vacuum, people make incorrect assumptions and attributions about life
insurance. These ill-formed and uninformed attitudes then act as barriers to life insurance
product take-up.
A similar line of reasoning is applicable to genetic testing. A lack of knowledge about
the details and potential benefits of genetic testing leads people to associate genetic
testing with unrelated areas such as organ farming, human cloning, „Dolly the sheep‟ and
so on.
It should not be surprising, therefore, that there is a significant level of opposition in the
community to the use of human genetic information by life insurers. It is effectively the
fusion of two areas of uncertainty, coupled with cynicism towards financial institutions.
However, the picture is not altogether bleak. There is evidence in this research
suggesting that attitudes to life insurance and genetic testing are, to some extent,
malleable. In the course of the group discussions, the attitudes of numerous people
changed, in some cases dramatically. In the quantitative research, a brief explanation of
the concept of pooled risk was able to significantly alter attitudes to a number of issues.
While it is the case that some people are more easily led than others, these two pieces of

research suggest that a communications program has the potential to influence attitudes in
the area of life insurance and genetic testing. Our belief is that given the relatively low
involvement nature of life insurance, an attitude change program should target the time of
greatest involvement – that is, the time around product consideration and purchase. We
believe that a communication program would be most effective if it was a joint life
insurance industry and government initiative.

BIBLIOGRAPHY
1) Dr. Singh, Avtar, Principles of Insurance Law, S Chand & Sons, Delhi,2003.
2) Leon G. Schiffman, Lestie Lazar Kanwk, Consumer Behaviour, Himalaya
Publishers, Delhi, 2004
3) Kotler Philip, Marketing Management, Pearson Education Inc. 11thEdition.
4) Stanton William J, Etzel Michael J, Walker Bruce J, Fundamentals of Marketing,
McGraw-Hill international, Singapore, 2002.
5)Valarie Azithaml, Marry Jo Bittner, Services of Marketing, Prentice Hall, 2001
6) Rutchnee .T & K.S.Arun Kumar,Consumer preference & buying perception of
readymade silk garments,PGDSM,International center for training & research in tropical
sericulture.
 www.wikipedia.com
 www.licindia.com
 www.irda.org
 www.lifeinsure.com
 www.inglife.co.in

QUESTIONNAIRE
1. Name: - _______________________________________________________________
2. Age: _______________________________________________________________
3. Address: ______________________________________________________________
______________________________________________________________
4. Phone number: _________________________________________________________
5. Occupation: ___________________________________________________________
6. Monthly income:
o <5000
o 5001-10,000
o 10,000-15,000
o 15,001-20000
o 20,001-25,000
o >25,000
7. How many members are there in your family

o Below 5 members
o 5-10 members
o Above 10 members

8. How do you regard insurance as ?

o Risk Coverage
o Security
o ____ Saving
9. Are you aware of what insurance is all about ?

o Yes
o No
10. Are you aware of life insurance product ?
o Yes
o No
11. Which advertisement media attracts you more towards life insurance products ?
o Newspaper
o TV and Internet
o Magazines
o Direct Mail
12. How did you get to know about this life insurance products?
o TV advertisement
o Friends
o Magazines / Newspaper
o Any other Please Specify …………………
13. Do you have a life insurance policy with any life insurance product ?
o Yes
o No
14. Which type of life insurance plan do you prefer ?
o Critical Illness
o Disability
o Premium waiver on critical illness
o Premium waiver on critical disability

15. Why do you prefer particular type of life insurance plan?

o ULIP
o Endowment Plan
o Term Plan
o Health Insurance
16. Which category of life insurance plan have you preferred ?

o Whole life plan
o Term life plan
o Endowment plan
o Savings plan
o Retirement plan
o ULIP plan
17. What factors do you consider while selecting a life insurance products?
o Premium outflow
o Company Reputation
o Service Quality
o Product Quality
o Return on Investment
18. What factors influenced to select a life insurance company?

o Personal interest
o Friends
o Family
o Agents
o Advertisements
o Others

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

o Insurance Company
o Bank
20. Are you satisfied with your current Life Insurance Company?
o Yes
o No
If Yes Why? ____________________________________________________________

If No Why? _____________________________________________________________
21. How do you rate the service offered by your Life Insurance Company?
o Excellent
o Very Good
o Good
o Average
o Poor
22. Would you like to communicate the service offered by your Life Insurance Company
to others?
o Yes
o No
23. How many Life insurance Companies do you know?

o <5
o 5-7
o 8-10
o >10

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

o LIC
o HDFC
o ING Vysya
o Met life India insurance
o Birla sun life
o ICICI Prudential
o TATA AIG
o Other
25. Would you like to continue with the same Life Insurance Company?
o Yes
o No
26. Any suggestions for improving the service offered by life insurance companies
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

Consumer Perception Towards LIC in Rewa City

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A STUDY ON CONSUMER PERCEPTION TOWARDS LIFE INSURANCE IN SATNA CITY

A STUDY ON CONSUMER PERCEPTION TOWARDS LIFE

Department of Management, AKS University SATNA Page 1

2. PROFILE AND ORGANIZATION STRUCTURE OF THE COMPANY

5. ANALYSIS OF THE PROBLEM UNDER STUDY

7. SUGGESTIONS/ RECOMMENDATIONS ETC.

Department of Management, AKS University SATNA Page 2

Thus, perception in humans describes the process whereby sensory stimulation is

Historically, systematic thought about perceiving was the province of philosophy.

As a scientific enterprise, however, the investigation of perception has especially

Department of Management, AKS University SATNA Page 3

Such fundamental philosophical assertions as the existence of a physical world, however,

In philosophy, psychology, and cognitive science, perception is the process of attaining

Passive perception can be surmised as the following sequence of events:--

Department of Management, AKS University SATNA Page 4

Surrounding → Input (senses) → processing (brain) → Output (re-action).

Although still supported by mainstream philosophers, psychologists and neurologists,

Perception and reality

Department of Management, AKS University SATNA Page 5

This confusing ambiguity of perception is exploited in human technologies such as

Cognitive theories of perception assume there is a poverty of stimulus. This (with

Department of Management, AKS University SATNA Page 6

Glasersfeld considers an "invariant" as a target to be homed in upon, and a pragmatic

A mathematical theory of perception-in-action has been devised and investigated in many

Two major classes:

 Bottom-up: perception builds up hierarchically from a set of primitive "features"

 Top-down: perception starts with a set of primitives, but our perceptual

Five main theories are as follows:-

Department of Management, AKS University SATNA Page 7

Precursor to behaviorism ó Perception is a direct result of stimulus energy affecting

We store examples of all the objects we have seen as exemplars or templates. We

 Proto type theory

 Structural description theory

Top-down theories posit varying degrees of influence of higher cognitive processes on

Department of Management, AKS University SATNA Page 8

THE HISTORY OF INDIAN INSURANCE INDUSTRY

Department of Management, AKS University SATNA Page 9

Insurance may be described as a social device to ensure protection of economic value of

In the words of D.S. Hansell, “Insurance accumulated contributions of all parties

Department of Management, AKS University SATNA Page 10

Contractual definition: In the words of justice Tindall, “Insurance is a contract in

 Payment on happening of a special event

 The amount of payment depends on the nature of losses incurred.

 Insurance is a legal contract which is based upon certain principles of insurance

 The scope of insurance is much wider and extensive.

Department of Management, AKS University SATNA Page 11

3. Assessment of risk: - Insurance determines the probable volume of risk by evaluating

4. Provide certainty: - Insurance is a device, which helps to change from uncertainty to

3. Contributes towards development of larger industries.

Means of savings and investment:

Department of Management, AKS University SATNA Page 12

Some of the important milestones in the life insurance business in India

Department of Management, AKS University SATNA Page 13

Liberalization of Indian Insurance

To set up an independent regulatory body, that provides greater autonomy to insurance

Players in Indian insurance industry

 Life Insurance Corporation of India (LIC)

 General Insurance Corporation of India (GIC) with effect from Dec'2000, a

1. The Oriental Insurance Company Limited

2. The New India Assurance Company Limited,

3. National Insurance Company Limited

4. United India Insurance Company Limited.

Department of Management, AKS University SATNA Page 14