Project report on:

TO ANALYSIS THE INSURANCE BUSINESS AMONG RURAL

SAGMENT AND IT’S FUTURE PROJECTS.

SUBMITTED BY:

BACHELOR OF BUSINESS ADMINISTRATION (MARKETING) SEMESTER 6 TH

RAHUL SHARMA
Roll No. 20BBA61
(Batch 2020-2023)
Under the supervision of Dr.Sandesh
In partial fulfillment fir the award of the degree
Of
Bachelor of business administration

SUBMITTED TO:

1.
 Netaji Subhash Chandra Bose memorial government college Anu, Hamirpur
(H.P.) 177005

DECLARATION

I the undersigned Mr. RAHUL SHARMA here by, declare that the work embodied in this
project work titled, “TO ANALYSIS THE INSURANCE BUSINESS AMONG RURAL
SAGMENT AND IT’S FUTURE PROJECTS” forms my own contribution to the research
work carried out under the guidance of DR.SANDESH .

Wherever reference has been made to previous works of others, it has been clearly indicated
as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance with company rules and ethical conduct.

RAHUL SHARMA

Certified By:
Name and signature of Professor
DR. Sandesh

DATE:
PLACE:

2.
 CERTIFICATE

This is to certify that Mr. Rahul , Bachelor of business administration in Semester 6TH of
Marketing department Netaji Subhash Chandra Bose Memorial Hamirpur. He has
completed his project was in marketing entitled “TO ANALYSIS THE INSURANCE
BUSINESS AMONG RURAL SAGMENT AND IT’S FUTURE PROJECTS.” Under the
success guidence of Prof. Sandesh.

During this study, we found him to be sincere and hard working ,we take this opportunity to
wish him all the very best in Future endeavours.

Coordinator of BBA.
NSCBM College Hamirpur (H.P.)

Principal
NSCBM College Hamirpur (H.P.)

3.
 ACKNOWLEDGEMENT

Making of project report is an integral part of Marketing degree providing

market knowledge with first hand and practical aspects of their studies. It gives
them the knowledge about the work and circumstances existing in the company.
The preparation of this report would not have been possible without the
valuable contribution of the BBA faculty comprising of several experienced
engineers in their respective field of work. It gives me great pleasure in
completing my Project at NSCBM at HAMIRPUR and submitting the Project
report for the same.

I take privilege to express my sincere thanks to Dr.Sandesh , Professor who

supported us constantly and channelize our work toward more positive manner.

I am thankful to our mentor Dr.Sandesh and other BBA faculty who teaches
every minute detail of Marketing i.e. Without your efforts the present form of
this report is not possible.

4.
 ABSTRACT

Insurance industry is one of the fastest growing and emerging markets in India. Insurance
penetration in the country is low mainly in rural area. The Insurance Industry has a
significance contribution in socio-economic development. A majority of the underprivileged
& rural poor society is still not insured and untouched by the benefits of Insurance. There is a
tremendous scope for developing insurance business in the rural areas where human life and
income generating rural assets need more protection. IRDA has acknowledged various
reforms and initiatives for the welfare of rural people i.e. Micro- insurance especially
designed to provide life insurance, health insurance and others types of insurance benefit to
rural and economically backward class of the society.

The aim of the study is to understand the level of customer satisfaction in rural areas and
review the insurance (Life insurance). The study apart from knowing the customers
satisfaction also focuses on the scope and growth of insurance sector in (Hamirpur) rural
segment where the study is being conducted. The project focusing on India Post Payment
Bank company’s branch in Hamirpur ensured to successfully take up the research on
knowing the customer and their views about the life insurance sector in rural segment.

The study helps us to get a better picture as to what customer perceive about insurance plan
and their awareness about the same. The study will help us in understanding what the
customer prefers really through these insurance plans. Also, if the customer prefers these
insurance plans, the study brings to light the customer expectation about the same.

The data collected from the survey has been appropriately analysed and has been interpreted
in a meaningful way to offer some suggestion and recommendations. The data has also been
put through a series of statistical tools that will close down the distance on the objective of
the study.

Several measures have been taken to keep the study on course without any deviations. There
is certain limitation to the study that involved two primary factors cost and time. Yet the
study has been done reaching close to the greatest possible extent of its primary objectives.

5.
6.
 CONTENT

CHAPTER TOPICS
1. Introduction
2. Scope of insurance in rural
segment
3. Review of literature
4. Research methodology
5.

7.
 CHAPTER :1

INTRODUCTION TO INSURANCE

8.
 INTRODUCTION

1.1 INSURANCE

Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange
for payment. It is a form of risk management primarily used to hedge against the risk of a
contingent, uncertain loss.
An insurer, or insurance carrier, is a company selling the insurance; the insured, or
policyholder is the person or entity buying the insurance policy. The amount of money to be
charged for a certain amount of insurance coverage called the premium Risk management,
the practice of appraising and controlling risk, has evolved as a discrete field of study and
practice.
The transaction involves The insured assuming a guaranteed and known relatively small loss
in the form of payment to the insurer in exchange for the insurer’s promise to compensate
(indemnify) the insured in the case of a financial (personal) loss. The insured receives a
contract. called the insurance policy, which detail the conditions and circumstances under
which the insured will be financially compensated.

1.1.1 PRINCIPLES

Insurance involves pooling funds from many insured entities (known as ) to pay for the losses
that some may incur. The insured entity are therefore protected from risk for a fee, with the
fee being dependent upon the frequency and severity of the event occurring. In order to be
incurable risk, the risk insured against must meet certain characteristics. Insurance as a
financial intermediary is a commercial enterprise and a major part of the financial services
industry, but individual entities can also self insure through saving money for possible future
loses.
INSURABILITY
Risk which can be insured by private companies typically shares seven common
characteristics:
1. Large number of similar exposure units

9.
 2. Definite loss
3. accidental losses
4. Large loss
5. Affordable premium
6. Calculate about loss
7. Limited risk of catastrophically large losses

1.2 HISTORY OF INSURANCE

The history of insurance describes the development of the modern business of insurance
against risks, especially regarding cargo, property, death, automobile and medical treatment.
The industry helps to eliminate risks (as when fire insurance companies demand the
implementation of safe practices and the installation of hydrants), spreads risks from the
individual to the larger community, and provides an important source of long-term finance
for both the public and private sectors. The insurance industry is generally profitable and
provides attractive employment opportunities for white collar workers.

Risk mitigation based on solidarity was widespread among guilds, trade associations, and
village communities.

10.
Mortality tables were often the work of clerics who wanted to discover the role and plans of
a drive creator.
Insurance created a vital counter balance to the new and potentially destabilising forces that
were transforming the division of labour, urbanisation, and the economics of trade.

Shareholding was to become essential for modern insurance as it allowed the separation of
operating capital from risk capital and provided funds to expand business into new lines and
beyond the home market.

11.
As the series of wars in Europe and the Anglo-Americans conflict came to an end in 1815,
insurance was finally able to spread on a broader scale beyond Europe and the USA. But it
remained a privilege of the European descendants to insure themselves and their businesses.

Many countries had adopted social insurance schemes based on the German model invented
by the Chancellor Otto von Bismarck to appease unrest among the growing proletarian
classes.

12.
India was to become important as a springboard for the spread of insurance into the Far East.

1.2.1HISTORY OF INSURANCE INDIA

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil
started functioning. In 1870, Bombay Mutual Life Assurance Society became the first Indian
insurer. At the dawn of the twentieth century, many insurance companies were founded. In
the year 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to
regulate the insurance business.

1.3 EVALUATION OF INSURANCE INDUSTRY IN INDIA

YEAR EVENTS
1818 Life Insurance business introduced in India through Oriental Life
Insurance Company (Calcutta)
1829 Madras Equitable started transacting life insurance in the Madras
Presidency
1834 Failure of the Oriental Life Insurance Company
1870 British Insurance Act enactment
1871 Set up of Bombay Mutual
1874 Set up of Oriental
1897 Government of India published returns of the Insurance Companies
in India
1914 Government of India published returns of the Insurance Companies
in India
1928 Indian Insurance Companies Act enactment to enable the
government to collect statistical data about the life and non-life
business transacted in the country by both Indian as well as foreign
insurers
1938 Consolidation of the earlier legislation and amendment of the
Insurance Act
19th January 1956 Issuance of an ordinance to nationalize the life insurance sector and
the LIC (Life Insurance Corporation) was set up
1957 Formation of the General Insurance Council
1968 Amendment of the Insurance Act to regulate the investments and set
minimum solvency margins
1971 General Insurance Corporation of India incorporated as a company
1972 General Insurance Business (Nationalization) Act passed
1973 Insurance business nationalized
1993 RN Malhotra committee formed to propose recommendations for
reforms in the insurance sector in India
1999 Insurance Regulatory and Development Authority (IRDA)
established

13.
 2000 IRDA incorporated as a statutory body
August 2000 IRDA opened the market with the invitation for application for
registrations
July 2002 Bill to de-link the four subsidiaries from GIC passed in parliament
Presently 34 general insurance companies including the Export Credit
Guarantee Corporation of India (ECGC) and Agriculture Insurance
Corporation of India and 24 life insurance companies are
operational in India

1.3.1 EVALUATION OF NON-LIFE INSURANCE INDUSTRY IN INDIA

The boycott of British goods and British institutions, which occurred because of the
nationalist movement, encourage formation of Indian-owned commercial and business
houses, By 1907, the Indian mercantile the first of the long lasting general insurance
companies to be established with Indian capital, had started functioning fie offices, the New
India, Vulcan, Jupiter, British India General and the Universal, were established in 1919
almost simultaneously for transacting general insurance business.
In 1928, prominent insurance men of Bombay met and formed the Indian insurance
companies association to protect the interest of Indian Insurance. Leaders of the insurance
industry began to organize conferences, educate public on the benefit of insurance, focus
mention on the annual remove of national wealth through visible export and arise public
interest in favour of Indian Insurance.
In 1950, the Planning Commission was set up to formulate plans for successive five years.
This five years plan brought about large scale economy development and increased insurance
consciousness among the people. As insurance business increased the number of claims For
compensation against losses also naturally increased. Settlement of too many large claims
meant a severe Demand on funds of insurance companies. so to prevent this situation the
practice of “Reinsurance” was adopted according to which insurer's themselves reinsured
portion of the insurance they had undertaken. So Indian insurance companies with their
expanding business wanted to reinsure for which they had to see foreign reinsurance
markets.
Since the need for conserving foreign exchange was felt in India all the insurers in India as
well as foreigners operating in India formed the India reinsurance corporation in 1956. This
corporation provided reinsurance facilities. It was compulsory for insurers in India to reinsure
a fixed percentage of their insurance with the corporations.
The insurance amendment act 1950 imposed certain limitations on expenses of management.
The journal insurance council constituted what was called the tariff committee To control and
regulate terms and conditions of business.

14.
In 1972, the journal insurance business (Nationalization) act 1972 was passed Under the
provision of this act the journal insurance corporation of India was established for the
purpose of directing, controlling and caring on general insurance business and all the 106
insurers were merged and group into four subsidiaries of journal insurance corporation of
India namely;

 National Insurance Company Ltd., with its head office at Calcutta.

 The New India Assurance Company Ltd., with its head office at Bombay
 The Oriental Insurance company Ltd., with as head office at Delhi
 The United India Insurance Company Ltd., with as head office at Madras

1.4 TYPES OF INSURANCE:

In life, unplanned expenses are a bitter truth. Even when you think that you are financially
secure, a sudden or unforeseen expenditure can significantly hamper this security. Depending
on the extent of the emergency, such instances may also leave you debt-ridden.
While you cannot plan ahead for contingencies arising from such incidents, insurance
policies offer a semblance of support to minimise financial liability from unforeseen
occurrences.
There is a wide range of insurance policies, each aimed at safeguarding certain aspects of
your health or assets.
Broadly, there are 8 types of insurance, namely:

 Life Insurance
 Motor insurance
 Health insurance
 Travel insurance
 Property insurance
 Mobile insurance
 Cycle insurance
 Bite-size insurance

2. Life insurance:
Life Insurance refers to a policy or cover whereby the policyholder can ensure
financial freedom for his/her family members after death.
Types of life insurance:

 Term Plan
 Endowment Plan
15.
  Unit Linked Insurance Plans or ULIPs
 Whole Life Insurance
 Child’s Plan
 Money-Back
 Retirement Plan
Benefits of life insurance:

 Encourages Saving Habit

 Secures Family’s Financial Future
 Helps Plan Your Retirement

3. Motor Insurance:
Motor insurance refers to policies that offer financial assistance in the event of accidents
involving your car or bike. Motor insurance can be availed for three categories of
motorised vehicles, including:

 Car insurance
 Two wheeler insurance
 Commercial vehicle insurance

Types of Motor Insurance Policies:

 Third-Party Liability
 Comprehensive Cover
 Own Damage Cover

Benefits of Motor Insurance Policies:

16.
  Prevents Legal Hassle
 Meets All Third-Party Liability
 Financial Assistance to Repair Your own Vehicle
 Theft/loss Hassle

4. Health insurance:
Health insurance refers to a type of general insurance, which provides financial assistance to
policyholders when they are admitted to hospitals for treatment. Additionally, some plans
also cover the cost of treatment undertaken at home, prior to a hospitalisation or after
discharge from the same.
Types of Health Insurance policies:
There are eight main types of health insurance policies available in India. They are:

 Individual Health Insurance

 Family Floater Insurance
 Critical Illness Cover
 Senior Citizen Health Insurance

17.
  Group Health Insurance
 Maternity Health Insurance
 Personal Accident Insurance
 Preventive Healthcare Plan

Benefits of Health Insurance:

 Medical Cover
 Cashless Claim
 Tax Benefits

5. Travel insurance:

When talking about the different types of insurance policies, one must not forget to
learn more about travel insurance plans. Such policies ensure the financial safety of a
traveller during a trip. Therefore, when compared to other insurance policies, travel
insurance is a short-term cover.

18.
Types of travel insurance:

 Domestic Travel Insurance

 International Travel Insurance
 Home Holiday Insurance

Benefits of Travel Insurance:

 Cover Flight Delay

 Baggage Loss/Delay
 Reclaim Lost Travel Documents
 Trip Cancellation Cover

e) Property Insurance
Any building or immovable structure can be insured through property insurance plans. This
can be either your residence or commercial space. If any damage befalls such a property, you
can claim financial assistance from the insurance provider.
Types of Property Insurance in India:

 Home Insurance
 Shop Insurance
 Office Insurance
 Building Insurance

Benefits of Property Insurance:

 Protection against Fires

 Burglaries etc.

19.
 CHAPTER:2

STUDY THE
SCOPE OF INSURANCE IN RURAL
SAGMENT

20.
2.1 SCOPE OF INSURANCE IN RURAL AREAS:

Rangachary (2006), ex- Chairman of Insurance Regulatory and Development Authority,

states that “the principle of differential pricing is necessary to sell products in rural areas”. By
partnering with customers (MLM pattern) of BOP and by partnering with NGOs, life
insurance companies can sell policies at relatively cheaper rates by cushioning the
commissions that would have been paid to agents. The insurance business registered an
impressive growth in the past few years, especially after the opening up of the industry to
private players. ‘India with its huge middle class households has exhibited growth potential
for the insurance industry. Saturation of markets in many developed economics has made the
Indian market even more attractive for foreign players’ (Sadhak, 2009).
India, with a population over 140 crore, is in its nascent stage when it comes to the insurance
sector. Its market accounts for 1.5% of the world’s total insurance premiums despite its
population. Coverage provided by traditional life or health insurance models is very low in
the country. It is because more than 70% of the citizens live in rural areas that have remained
untapped by major players in the insurance market.
At present, life insurance coverage in rural India is set at a mere 8-10% while less than 20%
of the rural population has any form of health insurance. Also, 95% of Indian housing lacks
any form of property coverage. India has extensive geographic and economic variations
causing the low coverage rates prevail in the country. Additionally, several internal
challenges still exist in the country, including distributional challenges like last-time access,
lack of sustainable products, transactional inconvenience, among others.
A report published by the Boston Consulting Group named “The changing face of Indian
insurance,” highlights that insurance schemes such as the Pradhan Mantri Fasal Bima
Yojana (PMFBY) have increased crop insurance coverage by 6%. Also, the Rail Insurance
Scheme introduced in September 2016 has already insured upwards of 9 crore passengers.
The government is helping speed up the process of providing insurance coverage to rural
India. However, there are two elements that are crucial in pushing forward this initiative:

There are some reasons to grow in the rural segment:

1. Increasing growth
2. High literacy
3. Technology
4. Bite-sized insurance products

21.
 1. INCREASING GROWTH:

India is not only the second largest population in the world but also the second fastest
population growing in the world which has highest GDP growth rate, an average of
7% pa. India is also the third largest economy in the world and these figures are
expected to rise in the coming 10 years.

So, this evidences that India will require insurance as a bodyguard or backbone of the
economy. As we all know that rural population in India is more than the urban
population. Hence in order to safeguard the economy it is necessary that rural
insurance should be more focused than the urban insurance.

2. HIGH LITERACY:

India has a literacy rate of 77.7% (2018 figures) with rural literacy rate of 73.5% (7%
below the India average) comprising of 84.7% male and 70.3% female literacy rate.
Also form the underneath graph of literacy rate in India it can be observed that both

22.
 urban and rural literacy rate have same growth rate. Clearly this indicates that in
future India’s rural and urban population will be more educated and literate.

In rural area, if people will become more literate then, this will help them to understand the
benefits of insurance which will lead to elimination of main challenge faced by government
and insurance companies i.e. lack of knowledge about insurance and its products. If they
know already what is insurance, what are the products and how is it going to beneficial to
them, the cost of educating the villagers borne by government and insurance companies will
be zero or insignificant leading to reduction in premium rates and more specified products.

23.
3. TECHNOLOGY:
The penetration of the unexploited insurance market of rural India cannot be achieved
without creating more technology-led accessible models and products. These need to be
specially curated keeping the needs and income levels of the target population in mind. Some
of such models and products are:
Digital banks built on aadhaar architecture that use AePs for transactions make digital
financial services accessible to rural population. Insurers can bundle insurance policies
providing health, life, and livestock and make them available digitally for easy accessibility.
Online insurance policy selling platforms are offering Rural Insurance Policy that can be
easily bought digitally. Individuals don’t have to go to a brick and mortar office to review
and purchase policies. They can now do it from any smartphone or computer and an active
internet connection.

Insurance mobile solutions is an important development in this context. Every second person
has a smartphone and rural India is no different. Insurance mobile solutions provide the
technology to make insurance products accessible through mobile phones.
Insurance agency management systems are helping insurance companies to streamline their
processes and providing quick resolutions to claims and queries of the insured. They are also
helping these companies save significant costs that can help them to provide more affordable
and efficient products to the rural population.

24.
Insurance companies need to adapt technology-savvy solutions to ensure accessibility and
affordability. The economic reforms brought forward by the Jan Dhan accounts, Unified
Payment Interface (UPI), and Aadhaar integration will hasten the adaptation to these
models and guarantee a whole new market for the insurance sector.

4.BITE-SIZED INSURANCE PRODUCTS:

Another important element to facilitate the penetration of rural India by the insurance market
is bite-sized insurance products and policies. These policies are available to a wider
population because of their lower premium rates, low requirements for documentation, and
easy accessibility through smartphones. They are more popular among first-time policy
buyers, millennials, and those who want to insure a specific risk. A few examples of such
policies are dengue insurance, travel insurance, cab ride insurance, among others.

There are several insurers who provide tailor-made insurance products for low-income
groups as per their need. Some insurers have licenses from IRDAI to sell their products.
Developing these products is one thing but making them accessible to low-income groups is a
different ball game. The hybrid model of providing products and services through physical
and digital modes makes these products more easily accessible to the rural population of
India.

25.
2.2 OBJECTIVES OF STUDY:

 To understand the potential of the rural insurance sector.

 To develop a plan for exploring new market or less explored market.
 To study the market penetration in rural sector by IPPB.
 To develop a plan for increasing customer base in existing rural insurance market.
 To develop new insurance plan according to their needs and requirements.

To improve the presence of IPPB in rural insurance sector. Insurance sector in India is very
much explained by urban population. However companies are now showing inclination
towards rural India also. Many companies have launched their rural project. Our objective
aims to study the rural insurance in every possible aspect. Questions are raised for every
issues and a survey is conducted to find solution of every query. Questionnaire is generated to
arrive at conclusion of our objectives. We will try to study the whole insurance sector also
whether they really show interest in rural market or they have entered in rural market just for
completion purpose.

2.3LIMITATIONS OF THE STUDY:

 The research is confined to a certain parts of Coimbatore and does not necessarily
show a pattern applicable to all parts of the 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.
 The data collected from the customers may be biased.


26.
2.4 KEY PLAYERS IN THE INSURANCE INDUSTRY:

Companies Type
Aegon Religare Private Player
Aviva India Private Player
Bajaj Allianz Life Insurance Private Player

Bharti Axa Life Insurance Private Player

Birla Sun Life Private Player

Canara HSBC Private Player
DLF Pramerica Private Player
Future Generali Life Private Player
HDFC Standard Private Player
ICICI Prudential Private Player
IDBI Fortis Private Player
India First Private Player
ING Vysya Private Player
Kotak Mahindra Old Mutual Private Player

LIC Government Owned

Max New York Private Player
Reliance Life Insurance Private Player
Sahara India Private Player
SBI Life Private Player
Shriram Life Insurance Private Player
Star Union Dai-ichi Private Player
Tata AIG Life Insurance Private Player
India Post Payment Bank (IPPB) Government Owned

3.

27.
2.4.1 INDIA POST PAYMENT BANK (IPPB):

India Post Payments Bank, abbreviated as IPPB, is a division of India Post which is under the
ownership of the Department of Post, a department under Ministry of Communications of the
Government of India. Opened in 2018, as of January 2022, the bank has more than 5 crore
customers.

HISTORY OF IPPB:

A postage stamp released during the

launch of India Post Payments Bank in
2017.

On 19 August 2015, the India Post received licence to run a payments bank from the Reserve
Bank of India. On 17 August 2016, it was registered as a public limited government company
for setting up a payments bank. IPPB is operating with the Department of Posts under
Ministry of Communications.
The pilot project of IPPB was inaugurated on 30 January 2017 at Raipur and Ranchi. In
August 2018, the Union Cabinet approved a cost of ₹1,435 crore (US$180 million) for
setting up the bank. The first phase of the bank with 650 branches and 3,250 post offices as
access points was inaugurated on 1 September 2018. Over ten thousand postmen have been
roped into the first phase. By September 2020, the bank had acquired about 3.5 crore
customers. The bank had acquired about 4 crore customers by December 2020. In January
2022, India Post Payments Bank has crossed 5 crore customers mark.

28.
Key features and Benefits of IPPB:

 Banking at your convenience.

 Instant and paperless account opening.
 RuPay Virtual Debit Card for online transactions.
 Easy and convenient Non-eKYC account opening.
 No minimum average balance.
 Free monthly e-statement.
 Mini statement on SMS.
 Simplified banking services through QR card.
 Preferred charges on domestic remittances.
 Easy bill payments and recharges.

What is different in IPPB:

 Free account opening at your doorstep.

 Assisted services through the GDS/Postman as and when required.
 Availability of funds at your doorstep upon request.
 Bill payment facility at your doorstep.
 Simple and secure banking through QR card.
 Multilingual customer support.

Some Products & Services In IPPB:

a) Customer On-boarding

The GDS/Postman will open the type of account asked for by going to your registered
address. You can access one of the following accounts through this service:
 Basic savings account
 Regular savings account
 Salary account
 Current account (This type of account can be opened as a complement to one of the
three accounts above)

b) Merchant On-boarding
 You can open a current account and avail Merchant Services through our
Postman/GDS at your doorstep.
 Once on board, you can take advantage of digital payment acceptance solutions and
effectively manage your day-to-day operations.

c) Account Services

29.
  Cash deposit and withdrawal
 Instant money transfers
 Easy money transfer to your own as well as to other IPPB accounts
 Bill payments
 Account modification
 Domestic Money Transfer services for IPPB and Non-IPPB customers

d) Third Party Products

 Third-party insurance – Group term insurance
 Payments of DoP products like PPF, SSA, Rd and LARD
 Issuance of Digital Life Certificate

e) Other Account-Related Services

 Update PAN and nominee details
 Beneficiary management
 Request for account statement and related reports
 Add/delete standing instructions
 QR card re-issuance
 Aadhaar linking
 Share Complaints/Feedback with the GDS/Postman
 Upgrade Account and Update personal details through our Doorstep
 Banking services
 Avail the facility of sweep-in and sweep-out at your doorstep

IPPB VISION AND MISSION:

IPPB’s Vision:
Building the most accessible, affordable and trusted bank for the common Man.
IPPB’s Mission:
Spearheading financial inclusion by removing barriers and reducing costs for accessing
banking services.

30.
31.
 CHAPTER:3

REVIEW OF LITRATURE

32.
3.1 INTRODUCTION:
The Review of literature presented for both national and international level. These reviews
considered in practice efficiency of productivity, efficiency of financial performance,
profitability of the insurance sector growth of insurance sector ratio analysis and other factors
relating to this study. It also identifies the research gap.

3.2 REVIEW OF LITERATURE:

“The rural market for life insurance is different from the urban market in terms of needs,
income levels and distribution (seasonality for example), penetration of media, awareness and
so on. Except LIC of India, no other player has paid much attention to the rural sector in spite
of their fully meeting the IRDA obligations” (Ranjan Das & Raveendra, 2008). “Rural
market can be highly profitable if one is able to carefully plan and tailor an entire set of low
cost activities of advertising, distribution, and product design etc. to successfully exploit the
potential”.
The rural economy contributed nearly half the nation’s overall GDP in 2019–2020 and the
(₹1600-₹2400) in rural segment is about 50%-60%.Furthermore rural India will not be one
market. Pockets of attractive rural market will emerge in certain parts of India. Players will
need to understand their needs, design products to match them and create distribution models
to reach a highly fragmented consumer base cost effectively”.

3.3 RESEARCH GAP:

An investigation of the literature has revealed that there is a gap between the rural potential
available in terms of life insurance business and the potential tapped (only 20% - 30% of the
rural people are covered by any type of life insurance). The existing studies reveal that there
is less research on the rural insurance market. Insurance products are uniform for both and
urban and rural consumers. The needs of rural consumers are not yet addressed. Researchers
on insurance are categorical in stating that the life insurance companies are not successful in
rural market. But there is less research as to why the companies are not successful in rural
market. An attempt is made in this research to study the reasons as to why the companies are
unsuccessful in rural horizon.

33.
 CHAPTER:4

RESEARCH METHODOLOGY

34.
4.1 RESEARCH DESIGN OF THE STUDY:

Marketing research can be defined as the systematic design, collection, analysis, and
reporting of the data and finding relevant to a specific marketing situation facing the
company.
Research design is the basic plan which guides the researchers in the collection and analysis
of data required for practicing the research product. In fact the research design is the
conceptual structure with which research is conducted. It consist the blue print for the
collection, measurement and analysis of the data that was followed completing the study to
ensure that study is relevant to the problem and will follow the predetermined and set data.
The main data feature of “Research Design” is that it specifies population to be studied. The
main them of the chapter is to know the source of the data the researcher has collected. Data
are raw facts of observation, typically about physical phenomenon.

4.2 METHODOLOGY:
Collection of the data for the study can be drawn from following methods for study.
Sources of the data:
After determining the objectives of study and research design, the next important step is data
is step collection method. The information has to be collected from the retailers. During the
process of the study the data is collected from the target segment that is customers, dealers
and distributors with help of a structured well designed questionnaire.

35.
36.
Data is collected from:

 Primary data
 Secondary data

Primary Data:
It was collected through questionnaire prepared contains relevant questions that are both
close ended and opened. Individual and group interviews also under taken with difference
consumers.
I have collected mainly the Primary Data for my study by utilizing the questionnaire and
interview methods.

Secondary Data:
These data are collected from published sources such as Magazines, Newspapers, several
books, and also from the help of web sites.

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4.3 DATA ANALYSIS:

Table no.:1
Age, Education, Occupation & Gender of the peoples:

Age Education Occupation Gender

25-35 11% 5th-8th 37% Employee 12% Male 77%
35-45 18% 10th-12th 52% Self 16% Female 23%
employee

45-55 21% Graduate 11% Farmers 35%

&Above

Above 55 50% Others 37%

Source of data: Primary Data(100 Peoples of data)

Table no.:2
Peoples know about financial literacy and where they invest:

Investment platforms No. of peoples invest their %age

money
Banks 100% Out of 100%
FD/RD 95% Out of 100%
Stocks 3% Out of 100%
Others 2% Out of 100%
Source of data: Primary Data(100 Peoples of data)

Table no.:3
Peoples know about IPPB:
Peoples know about IPPB 70%
Accounts in IPPB 65%
Source of data: Primary Data(100 Peoples of data)

38.
 CHAPTER:5

CONCLUSION
AND
BOOKMARKS

39.
5.1 CONCLUSION:

 Rural India is where the next big opportunity is Indian rural market constitutes
approximately 72% of total Indian population even as of date. The diverse customers
spread through 638,635 villages across the states and union territories of India present
a great untapped opportunity. More than half of the Indian population residing in
these areas has seasonal income while the other part of the population draws irregular
income.
 Majority of rural population is involved in farming sector either directly or indirectly
(firming, marginal farming, and marginal land labourers etc.) and the balance of the
large population comprises of skilled labourers, artisans which includes carpenters,
masons etc.; and small-scale shop owners etc.
 Mostly urban educated graduates or post graduate people purchase maximum risk
cover plans by insurance companies, as compared to others degree holders. Less
number of the Intermediates passed respondents is under insurance covers because
they are not able to get suitable products.
 During the study it was found, although there are so many insurance distribution
channels have grown like banks, financial institutions, corporate agents etc. but even
then insurance agents are dominating in case of selling and distribution of insurance
products.
 Large number of customers satisfied with the premium policies and services of
insurance companies. It shows brighter future for the customers as well as insurance
industry in India.
 This globalised economy affected the Indians values and family system. So that more
nuclear families believed on insurance sector for covering their risk and future
projects.

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5.2 BOOKMAKERS:
 https://m.economictimes.com/industry/banking/finance/insure/nearly-30-of-indian-
population-dont-have-any-health-insurance/amp_articleshow/87367884.cms
 https://www.google.com/search?q=literacy+level+in+India+2018+graph&client=ms-
android-xiaomi-
rvo2b&prmd=inv&sxsrf=ALiCzsZwtpp6Uh1MNt9FrfQojPKKtHu3kw:16594120106
13&source=lnms&tbm=isch&sa=X&ved=2ahUKEwiWu7a7n6f5AhXF6zgGHYp4A
dcQ_AUoAXoECAIQAQ&biw=393&bih=751&dpr=2.75#imgrc=AAMdQz6tL5INf
M
 https://timesofindia.indiatimes.com/blogs/voices/the-unexploited-insurance-market-
of-rural-india/
 https://testbook.com/learn/history-of-insurance/amp/
 https://www.godigit.com/guides/types-of-insurance
 https://www.ibef.org

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